PAYG and Short-term Finance - FY 2019 PROPOSED BUDGET HIGHLIGHTS Fund 313
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
PAYG and Short-term Finance FY 2019 PROPOSED BUDGET HIGHLIGHTS Fund 313 County Board Work Session April 5, 2018
PAYG Overview • Pay-As-You-Go (PAYG) is funded from local County tax dollars • Historically used for routine maintenance capital expenditures • Reduces premature asset failure and extends useful life • Maintains existing infrastructure versus new projects • Asset condition assessment software being updated for Parks and Facilities programs • Maintenance capital funded from two primary sources • PAYG • Voter approved GO bonds • PAYG funds assets with useful life of ten years or less 1
PAYG Overview • Upcoming Capital Improvement Plan formulation will include larger conversation about annual PAYG funding needs • Discussion about long-term effects of reducing PAYG and being able catch up with deferred maintenance • Choices about new projects and associated operating costs versus maintaining existing inventory with appropriate funding levels • On-going PAYG funds have reduced slightly over the past several years 2
PAYG Overview • Availability of “one-time” funds (non-recurring) have substantially been reduced over the last two years • Carryover funds previously available during closeout and budget formulation have diminished 3
PAYG PAYG Overview Balances Beginning PAYG balance (7/1/17): $132M FY18 Commitments to-date (2/28/18): $58M Available Balance (2/28/18): $81M • Carryover balances fluctuate year-to-year depending on project execution • Capital projects are multi-year in nature • Large project carryover balances include: (all balances are committed to existing projects) • Central Library interior improvements – balance $0.965M • Anticipated completion Fall 2018 • Fire Station 6 – balance $0.515M • Anticipated completion Winter 2018 • Fire Station 8 – balance $1.7M • Anticipated completion Fall 2021 4
PAYG PAYG Overview Balances • Carryover balances cont’d: • Mosaic Park – balance $4.27M • Anticipated completion Spring 2020 • Long Bridge – PAYG & developer contribution balance $21.75M (additional GO Bonds balance of $15.6M) • Anticipated completion 2020 • Improvements Outside Major Corridors –balance $0.465M • Anticipated completion FY 2021 • Rosslyn Ballston Arterial Street Improvements – balance $1.01M • Anticipated completion FY 2020 • Streetlighting – balance $1.67M • Anticipated completion FY 2020 • Transportation Systems and Signals – balance $1.84M • Anticipated completion FY 2019 5
Summary of Proposed Budget • Aging inventory continuing to grow • Adding staff where appropriate to help plan and execute capital projects • Proposed FY 2019 reduction of ongoing PAYG budget of $1.5M • Other fund sources used to fund FY 2019 Capital Program • Parks Program - $3.802M • Synthetic Turf Fields • Partnerships/Cost-sharing - $0.496M (Long Bridge Field #1; Marymount cost- share) • Crystal City TIF - $1.335M (Long Bridge Fields #1 & #2) • Parks synthetic turf contingency balances - $0.810M (New field, location TBD) • Parks Field Fund (team fee revenue) - $1.06M (New field, location TBD) • Grass Fields • Program contingency balances - $0.10M (Gunston Park grass field replacement)
Summary of Proposed Budget • Other fund sources, cont’d • Transportation Program - $0.40M • Paving - $0.209M (Prior-year GO Bond balances) • Multi-modal Projects - $0.191M (Prior-year GO Bond balances) • Facilities Program - $0.10M • Trades Center Master Plan - $0.10M (Prior-year GO Bond balances) • Proposed budget does not include GO bond funding that will be determined during the upcoming FY 2019 – FY 2028 CIP formulation
Capital Program Accomplishments PAYG Overview Major Completed Capital Projects • Bluemont Park Athletic Field and Trail Improvements • High View Park Athletic Field, Restroom/Storage, Picnic Shelter and Plaza • Barcroft Sports & Fitness Center Gymnastics Program Expansion • Aurora Hills Community and Senior Center and Library Upgrades • County completed four key land acquisitions 8
Capital Program Accomplishments PAYG Overview Major Completed Capital Projects, cont’d • Building 2020 Garage and Elevator Upgrades • Trades Center Parking Garage Third Level • HVAC Upgrades at the Water Pollution Control Plant • Nearly $20 million in contracts awarded for transportation improvement projects • The County completed ten neighborhood conservation projects 9
Proposed Capital Program: Reduction to PAYG Program Service Impacts Budget Impact Paving Program FY 2018: $6,875,285 • Stated Paving Condition Index (PCI) goal of 75-80 FY 2019: $5,321,750 Change: -$1,553,535 • Current PCI is 74 • Maintains PCI contingent upon various factors • Severity of weather • Contracting costs • Price of oil • Affords approximately 78.5 lane miles of paving • Does not include 2018 GO bond funds of ~$11M anticipated 10
Paving Capital Proposed Cost History Program: 2017 Final Paving/Slurry Seal/Micro-surfacing Map link: https://arlingtonva.s3.dualstack.us-east-1.amazonaws.com/wp-content/uploads/sites/19/2017/02/2017FinalPavingSlurryMicroSeal.pdf 11
Summary of Proposed Short-termBudget finance (master lease) • Average funding of $10M per year • Previously financed through use of master lease program • Master lease infrequently used in other jurisdictions and not many banks are currently providing the service • County intends to utilize either a line of credit combined with short term bank loans / revenue bonds or a variation of previous master lease vehicles
Short-term Summary Finance of Proposed Budget • Funding levels fluctuate depending on equipment replacement cycles • Fund source typically finances: • PC replacement • Network Equipment • Server Refreshment • Video Conferencing • Enterprise Wireless • Fire Station Alerting System • Fire Breathing Apparatus • Fire Defibrillators • Public Safety Mobile and Portable Radios • Sheriff and Police In-Car Cameras • Fire Vehicles 13
Proposed Capital Program: PAYG and Short-term Finance Projects ($ in 000s) PROGRAM CATEGORY Base One- FY 2019 FY 2017 Total FY 2019 Proposed Funds Time Proposed C/O PAYG Funds FY 2019 Funds Funds Short- Term Fin T rans portation Maintenance C apital $1,888 $223 $2,111 $140 $2,251 - F acilities Maintenance C apital - - - $1,562 1,562 - P arks Maintenance C apital 1,022 - 1,022 $100 1,122 - S ubtotal Maintenance C apital 2,910 223 3,133 1,802 4,935 - R egional P artners hips 1,263 - 1,263 - 1,263 - Neighborhood C ons ervation - - - 500 500 - E nterpris e Information T echnology 400 - 400 1,282 1,682 3,985 P ublic S afety Information T echnology - - - - - 5,123 T rans portation Multi-Modal 251 - 251 119 370 - P ark Mas ter P lans - - - - - - **S ynthetic T urf 179 - 179 1,871 2,050 - F acilities D es ign and C ons truction - - - 855 855 - L and Acquis ition - - - - - - C apital C ontingent 319 - 319 - 319 - S ubtotal O ther C apital 2,412 - 2,412 4,627 7,039 9,108 Total Projects $5,322 $223 $5,545 $6,429 $11,974 9,108 * Numbers may not add due to rounding. **S ynthetic turf carryover funds do not include C rys tal C ity T IF funds or P artners hip cos t-s haring funds 14
Proposed Capital Program: Transportation • Paving program completed Fall 2019. The other programs/ projects are ongoing. Transportation Maintenance Capital The inventory of streets is broken down as follows: 25 percent are arterial streets, 11 percent are collector streets and 64 percent are residential streets. The Pavement Condition Index (PCI) is Paving updated annually and Arlington’s average PCI is currently 74. The County uses a variety of maintenance strategies to maintain streets as detailed below. Program Description PAYG GO Bond 2018 GO Bond Balances Referenda Paving has been increased to over 75 lane miles annually. This includes about three lane miles of Hot Mix Overlay streets without curb and gutter (five percent of funding). $476,000 $209,000 $9,900,000 Slurry Seal extends the life of pavement on Residential Streets at a much lower per square yard Slurry Seal cost. Program is based on approximately 40 lane miles being slurry sealed annually. $400,000 Microsurfacing extends the life of pavement for Arterial Streets at a lower per square yard cost. Microsurfacing Program is based on approximately 10 lane miles being microsurfaced annually. $500,000 Re-builds include partial and total excavations of blocks to re-build the base and sub-base of Re-Building of roadways where significant roadway failure has Streets occurred. Since 2008, an innovative process to stabilize soil with cement has reduced re-build costs by around 50 percent. $750,000 Subtotal Paving Program Only Funding includes PAYG ($1.38M) and *GO Bonds ($10.85M) $1,376,000 $209,000 $10,650,000 Other Transportation Includes ITS Device Replacement, Street Lighting, Maintenance and Trail Lighting. Capital $875,000 Includes bicycle and pedestrian projects, parking Multi-Modal meters, parking technology and the transportation asset management program. $370,000 $191,000 GO Bonds are assumed from the upcoming 2018 GO Bond Referenda $2,621,000 $400,000 $10,650,000 15 Total (PAYG $2.6M; Bonds $11.05M)
Proposed Capital Program: Parks and Recreation Parks Maintenance Capital Program FY 2019 Project List Anticpated Program Project Name - Description PAYG Total Start/Completion Contingency Schedule 1. Gunston Park – Design and construction. The S ummer 2018 / F all $405,000 $100,000 $505,000 project is for replacement of the grass community field. 2018 2. Westover Park – Design and construction. The S ummer 2018 $62,000 $62,000 project is for replacement of the grass community field. /S ummer 2018 3. Capital Asset Manager – Staff resources to manage $155,000 $155,000 NA the capital asset program. 4. Field Fund Program – The fees assessed for rectangular fields are to support replacement and construction of synthetic turf fields in the County (annual estimate of $180,000). The fees assessed on diamond $250,000 $250,000 fields (annual estimate of $70,000) are to be used for specific diamond field enhancements, such as improved irrigation, batting cages, or accelerated sod replacement. NA 5. Feasibility Studies – These funds will provide the ability to conduct timely and relevant analysis and studies as opportunities arise. The program is meant for new planning initiatives that are outside current CIP $150,000 $150,000 projects. Examples are potential planning and analysis needs for parks and sites associated with site plan proposals, Arlington Public Schools proposals, affordable housing proposals, or land acquisition opportunities. As Needed Totals $1,022,000 $100,000 $1,122,000 16
Proposed Capital Program: Parks and Recreation Parks Synthetic Turf Program FY 2019 PAYG Project List Synthetic Turf Anticipated Project Name - Description PAYG Program Cost Share Field Fund CC TIF Total Start/Completion Contingency Schedule 1. Long Bridge – Design and Summer 2018 / construction of synthetic turf, infill and $838,392 $838,392 Summer 2018 subbase repair for field #4. 2. Long Bridge – Design and construction of synthetic turf, infill, Summer 2018 / subbase repair and shade structures for $496,379 $496,379 $992,758 Summer 2019 field #1. There is a 50/50 cost share with Marymount University for this field. 3. New Field – Design and construction for new synthetic turf location, to be determined through the Public Spaces Master Plan update process. Project Fall 2019 / Fall $179,000 $810,000 $1,061,000 $2,050,000 includes new subbase, synthetic turf, 2019 infill, site amenities (depends on site) and potentially lighting (depends on site). Totals $179,000 $810,000 $496,379 $1,061,000 $1,334,771 $3,881,150 17
Proposed Capital Program: Facilities Facilities Capital Program FY 2019 Project List Anticipated Project Name - Description Total Start/Completion Schedule 1. Justice Center Facade Cleaning - Power wash the Summer 2018 / $247,000 Detention and Court Police Facade. Summer 2018 2. Aurora Hills Library and Community Center - total roof replacement; HVAC replacement; installation of Summer 2018 / $705,000 building automation system (BAS) and lighting Summer 2019 replacement. 3. Software/System Upgrades - Replace Fire Alarm Summer 2018 / systems at the Residential Program Center and Arlington $100,000 Winter 2018 Arts Center and upgrade access control panels 4. Critical Systems Infrastructure – Replace Summer 2018 / Fall uninterruptable power systems (UPSs) in County network $300,000 2018 operating center (NOC) 5. Chair Replacement - Systematic annual chair replacement program to replace task chairs throughout County facilities. Existing chairs ten years or older will be Summer 2018 / $110,000 replaced, supportive of the industry standard for life Winter 2018 span. This year would start the third year out of an eleven-year program. 6. Interior Maintenance Capital Improvement - Systematic capital maintenance program that allows for the annual interior refurbishment of flooring, wallpaper, painting and signage. Facility revitalization has been Summer 2018 / deferred over the past decade due to the lack of $100,000 Spring 2019 departmental funding sources. This program would enable the facilities to be upgraded through a systematic ranking of needs based on yearly assessments of our 90+ buildings by internal staff. Total PAYG $1,562,000 18
Proposed Capital Program: Facilities Facilities Design and Construction Program FY 2019 PAYG Project List Anticipated GO Bond Project Name - Description PAYG Total Start/Completion Balances Schedule 1. ADA Remediation - In FY13, the County completed a comprehensive assessment of 54 facilities to determine any deficiencies in access for $500,000 $500,000 Ongoing persons with physical disabilities in it. This program is to remediate existing facilities. 2. Facility Master Planning and Feasibility Studies - Facility master planning provides an integrated approach that addresses short, intermediate, and long-term needs for County facilities. This funding is for staff charges for the $355,000 $100,000 $455,000 Ongoing developer funded project at Fire Station#10 ($60,000), site development at 26th and Old Dominion ($45,000), Feasibility Studies ($250,000), and partial funding for the Trades Center Optimization Study ($100,000). Totals $855,000 $100,000 $955,000 19
Proposed Capital Program: Information Technology Information Technology Maintenance Capital FY 2019 PAYG Project List Program Anticipated PAYG Description Start/Completion Schedule This project provides continuous refreshment of County network equipment Ongoing, funds Network Equipment as it reaches end of life and/or requires enterprise-level feature $491,000 expended by end of Refresh enhancements and upgrades. This funding is in addition to short-term FY 2019 financing funds. The refreshment of this hardware is necessary to support connections for remote workers to connect to County applications and network drives and Summer 2018 / TeleworkingMobility $261,134 enables teleworking. The support for existing equipment expires in the Winter 2018 second quarter of FY 2019. With these FY 2019 funds, information security will be expanded by implementing a more robust mail filtering system that will catch more spam Summer 2018 / Security $265,000 and malware and reduce the chances of a ransomware attack. An estimated Winter 2018 80% of the threats received from email would be captured by this tool. The new system will manage all business functions needed in the DHS Housing administration of HCV programs including: client waiting list, eligibility Winter 2018 Choice Voucher determination, subsidy calculation, payments, financial reconciliation with $100,000 completion Payment System County financial system, and be compliant with all HUD regulations and mandates. This new system will manage all business functions needed in the administration of Local Housing and Assistance Programs including: client's DHS Local Housing eligibility determination, benefit calculation, payments, financial Winter 2018 and Benefits $315,000 reconciliation with County financial system, and reporting. Previously, these completion Software System local programs were handled within the Housing Choice Voucher (HCV) system through a special configuration. Effective in FY 2015, the County began assessment of a $5.00 fee as part of the costs in each criminal or traffic case in the district or circuit courts for the use of purchasing an electronic summons system. The costs of the Electronic system include peripheral equipment such as handheld devices, portable $150,000 Ongoing revenue Summons System printers, driver’s license scanners, and barcode readers, as well as the maintenance required for the system. The FY 2019 PAYG budget reflects the projected annual revenue from the fees. This new financial reporting software will be used to automate the preparation of the County’s CAFR schedules and reports, thereby reducing Spring 2019 / CAFR Software personnel time spent and compounding resource utilization. Improved $100,000 Summer 2019 oversight of County-wide financial reporting and financial transactions will facilitate strong internal controls and reduce audit risks. Total Information Technology FY 2019 PAYG $1,682,134 20
Proposed Capital Program: Short-term Finance Information Technology FY 2019 Short-term Finance Project List Anticipated Project Name and Description Short-Term Financing Start/Completion Schedule Endpoint Replacement - Most end user computing devices in the County currently operate on Windows 7. In January 2020, manufactuer Ongoing support for this operating system will terminate, and any devices still refreshment, funds running it will stop receiving critical security patches. Thus, all County $1,985 depleted by end of devices must be upgraded to Windows 10 before this date. These FY19 funds will be used to replace over 960 devices and upgrade over 1,200 devices. Ongoing Network Equipment Refresh - These funds will be used to replace refreshment, funds network switches and routers which are still being used past their 1,500 depleted by end of useful life. FY19 Ongoing Data Storage - These funds will be used to replace servers and other refreshment, funds 500 storage hardware that have reached the end of their useful life. depleted by end of FY19 Subtotal Enterprise Technology and Equipment $3,985 Fire Station Alerting System - These funds will be used to upgrade and Start Summer 2018 standardize station alerting, replacing the County’s current twelve-year- / Anticipated old technology. The alerting system reduces response time for 1,110 completion Spring firefighters and paramedics, reducing the chance of flashover and 2019 increasing the chances of patient survival. Fire Breathing Apparatuses - These funds will be used to replace Self Contained Breathing Apparatuses (SCBA), which are devices that provide clean air to firefighters in hazardous conditions. The County’s Start Summer 2018 3,298 current SCBAs were purchased in September 2008 and will no longer / Winter 2019 be covered under the manufacturer’s ten-year warranty as of September 2018. ECC Radio System - Circuit to IP Simulcast Conversion - The existing emergency communication radio system network operates using circuit- based connectivity between remote sites within the system. Building Anticipated more advanced features into this radio system will require first 715 completion Spring converting it to Internet Protocol (IP) based connectivity. These funds 2019 will convert all remote sites to the IP based connectivity and replace all relevant hardware and fiber. Subtotal Public Safety $5,123 General Fund: Program Costs $9,108 TOTAL Project Costs $9,108 21
You can also read