Below is the proposed 2013-2015 Capital Improvement Program for the City of Fairfield, submitted in accordance with Article VI, Section 6.02 (A)(6) of the Fairfield City Charter. This document provides City Council with a comprehensive plan of capital improvements that are being considered by the City over the next five years. Cost estimates, financing methods, and recommended time schedules for the improvements are included in the program and are referenced by individual project.
>CIP Summary by department
>CIP Summary by fund
The 2013-2017 Capital Improvement Program continues the City’s strategic approach to capital investment. Prudent fiscal policy and investment strategy has allowed the City to continue this comprehensive program, making several adjustments in light of the state of the national economy, in order to continue to address the needs of the City. The budget for 2013 totals $10,794,251. The five (5) year Capital Improvement Program lists $79,416,451 in projects planned through calendar year 2017 with 63.5% or $50,398,996 anticipated from City funds and 36.5% or $29,017,455 from outside funding, such as grants or debt.
Funding for the Capital Improvement Program comes from a variety of sources, including the General Fund, .2% Capital Improvement Fund, .2% Street Improvement Fund, Downtown Development Fund, Recreation Facilities Fund, Water and Sewer Utility Funds, State Issue I and other outside funding sources, among others. A detailed listing of these funds and the sources and uses of the monies contained therein is included in the CIP Cash Flow Statement.
The projects contained in the 2013-2017 Capital Improvement Program include periodic equipment replacement and major maintenance-type projects that are incurred by the City on an annual basis, as well as one-time expenditures of funds such as major roadway, utility, parks, public buildings and other infrastructure projects.
Major Projects – In 2013, a couple of the major projects and their respective costs include:
Recurring Projects – For 2013, some of the major annual programmed maintenance projects and respective costs include:
Future Projects – The 2013-2017 Capital Improvement Program places a strong emphasis on the City's continuing commitment to upgrade and improve its infrastructure while staying within the City’s conservative financial parameters. In particular, projects such as storm sewer and planned roadway improvements emphasize the importance of addressing infrastructure needs and improvements as a means of continuing to attract quality development while maintaining an excellent quality of life in the community. Several of these projects are dependent on grants and other forms of outside funding if implementation is to be achieved.
General Fund – The City’s General Fund 2013 balance above the reserve requirement was approximately $3.1 million. Though the General Fund’s fund balance has been affected by the global economic conditions and the City’s main revenue source (income tax) is projected to bring in approximately $23.78 million. The passage of the reapportionment of the income tax will transfer an additional $1.5 million to the General Fund to help offset the impact of the economy or general operations. Staff will continue to monitor the General Fund Reserve to insure that it remains at a fiduciary responsible level. Continued vigilance in both operating and capital expenditures remains the overriding goal to ensure that the City continues to spend at sustainable levels.
Street Improvement Fund – The Street Improvement Fund began the year with a solid fund balance. The passage of the reapportionment of the income tax will transfer an additional $750,000 towards the General Fund and Street Improvement Fund projects will require higher levels of financial scrutiny. The City has been able to secure outside funding to help offset many of the major construction projects slated for this and future years. Issuance of new debt at this time would likely adversely impact the fund balance as well as the overall cash position of the City. Therefore, no new debt is projected in this year’s CIP in any of its funds.
Capital Improvement Fund – The Capital Improvement Fund began the year with a solid fund balance. The passage of the reapportionment of the income tax will transfer an additional $750,000 towards the General Fund. Therefore, Capital Improvement Fund projects will have to be increasingly scrutinized. Several equipment purchases and projects will impact the fund balance: namely, replacing the Police cruiser’s mobile data terminals (MDTs), replacement of police cruisers and related equipment, a snow removal dump truck, and drainage and drywell improvements. These purchases or projects, along with decreased revenue from income taxes, will impact the fund balance, reducing future available funds. Continued vigilance in capital expenditures will be needed over this year and over the next several years to make sure the City continues to fund projects at sustainable levels.
The City currently has $36 million in debt obligations with a very healthy investment grade bond rating of Aa1. Continued attention will be given to discerning the type of debt and its timing in order to maintain the City’s healthy financial position. The City’s financial position is largely dependent on maintaining adequate reserves for operations and debt capacity. Within the 2013 CIP Budget there will be no new debt. In the 2013-2017 five-year Capital Improvement Plan the City has tentatively projected the need for an additional $15 million in projects requiring new notes and/or bonds over the next 5 years. Staff will continue to monitor the situation, particularly opportunities provided through the retirement of old debt, and advise Council with appropriate recommended actions over time.
In summary, the 2013-2017 Capital Improvement Program represents a pro-active approach to capital investment/reinvestment on the part of the City of Fairfield. It addresses the major system maintenance and equipment needs of the City. The CIP provides for improvements that will carry the City through 2013 and beyond.
We appreciate the continuing support of the City’s elected officials working with staff in this endeavor. The Capital Improvement Program exemplifies the strong emphasis the City has historically placed on quality infrastructure and on building effective public/private partnerships within the community.