COUNCIL WORK SESSION, FEBRUARY 19, 2019€¦ · Lower Johnson Creek Dredging Evaluation $250,000 Pay Go. TOTAL $16,760,000. City of Arlington, Texas 15. ... FY18 Issuance – All

COUNCIL WORK SESSION, FEBRUARY 19, 2019

City of Arlington, Texas 2

CITY COUNCIL PRIORITY: SUSTAIN CORE SERVICES(MAINTAIN AND IMPROVE CURRENT INFRASTRUCTURE)

CAPITAL BUDGET CYCLE REPEATS EACH YEAR WITH A BOND ELECTION EVERY 3-5 YEARS.


Streets Water and sewer lines

Parks and the preservation of

green space

Recreations Facilities

City Facilities:• Libraries• Police and Fire

Stations• Water Treatment

Plants• City Buildings• Airport


• Strategic planning or master planning to identify projects related to new capital needs

• Project evaluation, scope and cost

• Prioritize capital needs, projects and acquisitions by comparing with council priorities and available funding

• Determine capacity for construction of projects

• We have to ask ourselves:

• How many projects can we physically do in a given year?

• Will our own work crews implement a project, or will we hire outside contractors?

• How many projects can staff effectively manage in the span of a year?

BOND ISSUANCE PROVIDES FORSYSTEMATIC INVESTMENT IN CITYASSETS FOR MAINTENANCE, STRENGTH, & GROWTH

SIMILAR PROCESS TOREGULAR HOMEOWNERMAINTENANCE & INVESTMENTIN PROPERTY

CONSERVATIVE FINANCIALPRINCIPLES GUIDE CITY DEBT ISSUANCE

• DEBT TERMS DO NOT EXCEED THE EXPECTEDUSEFUL LIFE OF THE ASSET

• BONDS NORMALLY ISSUED WITH A LEVELPRINCIPAL STRUCTURE; ALLOWING DEBT RETIREMENTAT HALF THE LIFE OF ISSUANCE, ON AVERAGE

MAINTAINING & IMPROVINGASSETS YIELDS LASTING VALUE



GENERAL OBLIGATION BONDS ARE APPROVED BY CITY VOTERS AND ISSUED BY THE CITY • FUNDS COME FROM SALE OF

GENERAL OBLIGATION BONDS &CERTIFICATES OF OBLIGATION

• SALES OCCUR ON AYEARLY BASIS

• GO BOND RATINGSS&P: AAAMOODY’S: Aa1FITCH: AAA

• DEBT RATIOSTOTAL DEBT/TOTAL AD VALOREM TAX BASE = <2%TOTAL DEBT/GENERAL FUND BALANCE + DEBT SERVICE BALANCE = <20%TOTAL DEBT PER CAPITA = <$1,180/PERSON


TOTAL FY18 BUDGET:

CAPITAL: $64,334,595STORMWATER: $16,440,000WATER UTILITIES: $64,935,777

TOTAL: $145,710,372

FINDLAY/VILLAGE CREEK LINEAR PARK

IMPROVEMENTS COMPLETE

CALENDER (HARRIS TO EDEN)CONCEPTUAL PLAN

STAGE

HARRIS (COOPER TO CALENDER)

IN DESIGN

BRANTLEY HINSHAW PARK IMPROVEMENTS

COMPLETE

SOUTHEAST RECREATION

CENTERIN DESIGN

HUGH SMITH RECREATION

CENTER/LIBRARYIN DESIGN

AVENUE H (360 TO GSW)

IN DESIGN

2016 RESIDENTIAL REBUILD PROGRAM

PHASE IICOMPLETE


Election Year Bond Propositions FY19 FY20 FY21 FY22 FY23 FY24 FY25 Total

2014 Fire 900,000 8,880,000 9,780,000

2014 Parks and Recreation 1,900,000 1,000,000 2,900,000

2014 Streets and Transportation 46,900,000 33,863,000 80,763,000

2017 Active Adult Center 4,500,000 40,500,000 45,000,000

Sub-total 54,200,000$ 43,743,000$ 40,500,000$ -$ -$ -$ -$ 138,443,000$

2018 Fire & Police 2,350,000 4,500,000 8,650,000 800,000 8,200,000 24,500,000

2018 City Facilities 1,600,000 1,600,000 1,600,000 1,600,000 1,600,000 8,000,000

2018 Parks and Recreation 2,045,000 6,905,000 2,400,000 4,815,000 3,000,000 19,165,000

2018 Streets and Transportation 1,250,000 3,785,000 25,370,000 30,400,000 29,530,000 32,100,000 15,400,000 137,835,000

Sub-total 1,250,000 3,785,000 31,365,000 43,405,000 42,180,000 39,315,000 28,200,000 189,500,000

Grand Total 55,450,000$ 47,528,000$ 71,865,000$ 43,405,000$ 42,180,000$ 39,315,000$ 28,200,000$ 327,943,000$



FY19 Capital Budget Considerations


TOTAL PROPOSED BUDGET:

CAPITAL: $61,482,336STORMWATER: $16,760,000WATER UTILITIES: $124,373,000

TOTAL: $202,615,336

COLLINS(SH 303 TO PARK ROW

CONSTRUCTION

JULIA BURGEN PARK PHASE IICONSTRUCTION

RIVER LEGACY PARKING LOT RENOVATIONSCONSTRUCTION

HARRIS (COOPER TO

COLLINS)

TURNER WARNELL (MATLOCK TO

COOPER) CONSTRUCTION

BOWMAN SPRINGS PARK RENOVATIONS CONSTRUCTION

ACTIVE ADULT CENTERDESIGN

• 2019 Capital Budget slated for consideration on March 19, 2019


Project Project Amount Funding SourceFire Training Remodel $500,000 General Obligation (GO)Fire Station #1 Rebuild $400,000 General Obligation (GO)Julia Burgen Park Phase II $880,000 General Obligation (GO)Bowman Springs Park Renovations $500,000 General Obligation (GO)California Lane Park Renovations $520,000 General Obligation (GO)Active Adult Center $4,500,000 General Obligation (GO)Signal/ITS Annual Program $830,500 General Obligation (GO)Irrigation Repair Program $68,000 General Obligation (GO)Residential Rebuild Program $3,137,500 General Obligation (GO)Sidewalk Program $1,000,000 General Obligation (GO)Materials Testing Program $375,000 General Obligation (GO)Harris (Cooper to Calender) $6,796,000 General Obligation (GO)Matlock (Bardin to Green Oaks) $7,263,000 General Obligation (GO)Calender (Harris to Eden) $4,846,000 General Obligation (GO)Pleasant Ridge (I-20 to Enchanted Bay) $546,000 General Obligation (GO)Collins (SH 303 to Park Row) $9,831,000 General Obligation (GO)Collins (Mayfield to I-20) $2,607,000 General Obligation (GO)Avenue H (SH 360 to Great Southwest) $7,207,000 General Obligation (GO)Turner Warnell (Matlock to Cooper) $1,288,000 General Obligation (GO)Poly Webb (Pleasant Ridge to Shorewood) $316,000 General Obligation (GO)Avenue E (SH 360 to Great Southwest) $789,000 General Obligation (GO)Sublett Road (City Limit to Joplin) $1,250,000 General Obligation (GO)Airport Perimeter Fencing $100,000 Gas ReveuneFire Heavy Fleet Replacement $2,692,336 CO (Item proposed in Operating Budget)Tierra Verde HVAC $750,000 CO (Item proposed in Operating Budget)Playground Replacement $1,140,000 CO (Item proposed in Operating Budget)River Legacy Parking Lot Renovations $350,000 CO (Item proposed in Operating Budget)Facility Maintenance $1,000,000 CO (Item proposed in Operating Budget)

TOTAL $61,482,336


• $350,000 for River Legacy Parking Lot Renovations

• $750,000 for Tierra Verde HVAC

• $1,000,000 for Facility Maintenance

• $1,140,000 for Playground Replacement

• $2,692,336 for Fire Heavy Fleet Replacement

All items were discussed during FY19 operating budget process and funding will be issued through COs.


Project Project Amount Funding Source

Annual Localized Drainage Projects $425,000 Pay GoMatthews Court Drainage Improvements $8,500,000 Split ($7.3M Paygo/ $1.2M Bond)Tributary CC2(360 to Susan) Conceptual Study $250,000 Pay GoCalifornia Lane Drainage Improvements $330,000 Pay GoFlood Mitigation Buyouts $3,500,000 Revenue Bonds2017 Bridge Maintenance $150,000 Pay GoAnnual Bridge, Channel and Infrastructure Maintenance $285,000 Pay GoConstruction Materials Testing $100,000 Pay GoIrrigation $40,000 Pay GoDevelopment Review (Flood Study and Detention Analysis) $50,000 Pay GoStormwater Review Consulting $100,000 Pay GoWatershed Model Maintenance $50,000 Pay GoFlood Monitoring System $30,000 Pay GoKee Branch Trib 4 (Deaver Park to Andalusia Trail) Erosion $2,500,000 Revenue BondsWoodland Dr. Erosion $200,000 Pay GoLower Johnson Creek Dredging Evaluation $250,000 Pay Go TOTAL $16,760,000


Programs FY19 FY20 FY21 FY22 Total CIPDrainage Projects $10,900,000 $5,800,000 $7,000,000 $6,500,000 $30,200,000Floodplain Management $1,000,000 $1,000,000 $1,000,000 $1,000,000 $4,000,000Maintenance $1,050,000 $850,000 $1,250,000 $850,000 $4,000,000Annual Contracts or Programs $610,000 $610,000 $610,000 $610,000 $2,440,000Erosion Protection/Repair Projects $6,600,000 $1,000,000 $1,000,000 $1,000,000 $9,600,000

$20,160,000 $9,260,000 $10,860,000 $9,960,000 $50,240,000

FY 2018 CIP

Programs FY19 FY20 FY21 FY22 Total CIPDrainage Projects $9,505,000 $9,600,000 $5,529,000 $7,934,000 $32,568,000Floodplain Management $3,500,000 $1,000,000 $500,000 $500,000 $5,500,000Maintenance $435,000 $810,000 $1,210,000 $810,000 $3,265,000Annual Contracts or Programs $370,000 $420,000 $420,000 $415,000 $1,625,000Erosion Protection/Repair Projects $2,950,000 $3,300,000 $3,000,000 $1,000,000 $10,250,000

$16,760,000 $15,130,000 $10,659,000 $10,659,000 $53,208,000

FY 2019 CIP


Project Project AmountAvenue H (SH 360 to Great Southwest) $2,400,000Calender (Harris to Eden) $1,300,000Collins (Mayfield to I-20) $150,000Collins (SH 303 to Park Row) $1,800,000Eden (US 287 to Calender) $370,000Elevated Storage Tank $300,000Harris (Cooper to Calender) $4,000,000Joint Drainage Projects w/Public Works $1,100,000Meter Infrastructure $2,590,000Residential Water Renewal $3,000,000Technology and Equipment $785,000Water and Sanitary Sewer Main $15,740,000Water Operations $1,058,000Water Treatment $89,780,000

TOTAL $124,373,000


Project FY19 FY20 FY21 FY22 Total CIPElevated Storage Tank $215,000 $25,000 $25,000 $25,000 $290,000Technology and Equipment $375,000 $35,000 $75,000 $0 $485,000Meter Infrastructure $2,590,000 $2,590,000 $2,590,000 $2,590,000 $10,360,000Operations Renewal Projects $1,830,000 $1,930,000 $2,030,000 $2,230,000 $8,020,000Joint Drainage Projects w/Public Works $800,000 $800,000 $800,000 $800,000 $3,200,000Residential Rebuilds $1,800,000 $1,800,000 $2,000,000 $2,500,000 $8,100,000Water and Sanitary Sewer Main $13,575,000 $5,725,000 $8,175,000 $12,625,000 $40,100,000Water Treatment $27,205,000 $73,000,000 $3,350,000 $7,350,000 $110,905,000Individual Street Projects $10,850,000 $3,660,000 $1,000,000 $0 $15,510,000

GRAND TOTAL $59,240,000 $89,565,000 $20,045,000 $28,120,000 $196,970,000

FY 2018 CIP

Project FY19 FY20 FY21 FY22 Total CIPElevated Storage Tank $300,000 $75,000 $155,000 $75,000 $605,000Technology and Equipment $785,000 $150,000 $75,000 $40,000 $1,050,000Meter Infrastructure $2,590,000 $2,590,000 $2,590,000 $2,590,000 $10,360,000Water Operations $1,058,000 $1,058,000 $1,660,000 $1,910,000 $5,686,000Joint Drainage Projects w/Public Works $1,100,000 $800,000 $800,000 $800,000 $3,500,000Residential Rebuilds $3,000,000 $1,800,000 $3,000,000 $2,000,000 $9,800,000Water and Sanitary Sewer Main $15,740,000 $11,405,000 $1,725,000 $10,025,000 $38,895,000Water Treatment $89,780,000 $27,600,000 $3,780,000 $4,950,000 $126,110,000Individual Street Projects $10,020,000 $3,510,000 $300,000 $500,000 $14,330,000

GRAND TOTAL $124,373,000 $48,988,000 $14,085,000 $22,890,000 $210,336,000

FY 2019 CIP


Source of Funds FY19 FY20 FY21 FY22 Total CIPPayGo $20,385,000 $12,105,000 $14,895,000 $19,970,000 $67,355,000Debt Issuance $38,855,000 $77,460,000 $5,150,000 $8,150,000 $129,615,000TWDB Issuance $0 $0 $0 $0 $0

GRAND TOTAL $59,240,000 $89,565,000 $20,045,000 $28,120,000 $196,970,000

FY 2018 CIP

Source of Funds FY19 FY20 FY21 FY22 Total CIPPayGo (inc reimbursements) $15,977,152 $14,500,000 $5,595,555 $5,363,125 $41,435,832Debt Issuance $25,179,152 $26,488,000 $8,489,445 $9,526,875 $69,683,472TWDB Issuance $82,500,000 $7,000,000 $0 $7,000,000 $96,500,000TWDB Loan Forgiveness $716,695 $1,000,000 $0 $1,000,000 $2,716,695

GRAND TOTAL $124,372,999 $48,988,000 $14,085,000 $22,890,000 $210,335,999

FY 2019 CIP


• FY18 Issuance – All in True Interest Cost (TIC)• WWS Revenue Bonds – 3.215% (TIC)• TWDB Bonds – 1.063% (TIC)

• FY19 CIP issuance of $82.5mil with TWDB• Projected interest savings $18.5mil over 20 years


• February 19: Final Draft 2019 Capital Budget Presented to Council

• March 19: Capital Budget, Reimbursement Resolution considered by Council

• April 23: Parameters Ordinances considered by Council

• April 2019: Rating Agency meetings

• May / June 2019: Sell Bonds


QUESTIONS?

Documents

COUNCIL WORK SESSION, FEBRUARY 19, 2019€¦ · Lower Johnson Creek Dredging Evaluation $250,000 Pay Go. TOTAL $16,760,000. City of Arlington, Texas 15. ... FY18 Issuance – All