Title
Discuss and consider action on the 5-year Capital Improvement Plan for FY 2013 - 2017.
Summary
Per the City Charter and the Code of Ordinances, the Planning and Zoning Commission shall annually submit a 5-year Capital Improvement Plan to the City Council and City Manager, at least 120 days before the beginning of the budget year. The plan must list projects in order of preference with a recommendation for the year of construction for each project.
There are different funding mechanisms for capital improvement projects; two of which are Certificates of Obligation (CO) and General Obligation (GO) bonds. A Certificate of Obligation (CO) is a bond secured by property tax in which does not require voter approval. Unlike a CO, a General Obligation (GO) bond is required to be approved by the voters, and the debt service typically placed on top of the tax rate. Historically, the City has used Certificates of Obligation (CO’s) to fund roadway, drainage, sidewalk and park projects while the debt service is absorbed through the tax rate. Utility projects are typically funded by the Utility Fund, capital recovery fees (impact fees from new development) and CO’s. Utility CO's are funded through utility revenue and guaranteed by the tax rate.
Staff Recommendation
Staff recommends that the City pursue the funded street projects through construction for Colorado Sand Drive (TIRZ), Kelly Lane Phase 1A (TIRZ), and East Pflugerville Parkway. While the City may pursue these roadway projects, the construction of any additional City or Travis County roadway projects will remain on-hold until additional funding becomes available to complete them. Thus, staff recommends that City Council evaluate the development of a bond program for the listed unfunded roadway projects referenced in the staff report that we currently have under design or have committed to fund. Also, staff recommends the 5-YR Utility CIP as provided in the tables of the staff report.
Please note, these recommendations are based on evaluated needs and do not reflect a fiscally constrained Capital Improvement Plan; rather they fulfill the requirement that the commission provide a project list in order of preference with a recommendation for year of construction.
Planning and Zoning Recommendation
The Commission recommends the City pursue the following roadway projects in order of preference: 1.) Weiss Lane, 2.) Rowe Lane, 3.) Kelly Lane Ph 1B {Falcon Pointe Blvd. to Moorlynch}, 4.) Kelly Lane Re-route, 5.) Cele Road Re-route, 6.) Heatherwilde Blvd, 7.) Pfennig Lane.
The Commission recommends the City pursue the Utility Fund projects as identified in the staff report with recommended years of construction.
Fiscal Impact
Kelly Lane Phase 1A and Colorado Sand Drive will be designed and constructed with previously issued Certificates of Obligation. The advancement of projects (1-7) prioritized by the Commission have no funds allocated to them and will likely require the development of a bond program to fund them. Utility related projects have no impact to the general fund.
Prior City Council Action
N/A
Deadline for City Council Action
September 25, 2012
Drafter
Trey Fletcher, AICP, Assistant City Manager