The projects contained in the 2017-2021 Capital Improvement Program include periodic equipment replacement, major maintenance-type projects that are incurred on an annual basis, as well as one-time expenditures of funds such as major roadway, utility, parks, public buildings and other infrastructure projects.
The largest major projects and their respective costs consisted of:
- Water System Improvements for Route 4 estimated to cost of $3.3 million will be financed with outside debt in 2017. The timing of the replacement of the water line from Nilles Road to By-Pass 4 in 2017 is crucial to the Route 4 Urban Paving project slated to begin in late 2017 into 2018. The Route 4 Urban Paving project is expected to cost $3.8 million with $2.1 million in state funding.
- Motor Control Center replacement for the Wastewater Plant estimated to cost $1.7 million will be financed with outside debt in 2017. The current motor control center was installed in 1965 and critical to the operation of the Wastewater Plant.
- Improvements to Symmes Road from Route 4 to North Gilmore estimated to cost $1.06 million with outside funding of $760,000 will include overlay, storm sewer, guardrail, shoulder widening and adding a striped center turn lane between Route 4 and Hicks Boulevard. This project will begin after the completion of the project extending the culvert at the GM Ditch.
For 2017, the larger annual programmed maintenance projects and respective costs include:
|Street Paving and Curb Replacement (Public Works)||$1,650,000|
|Concrete Replacement Project (Public Works)||$750,000|
|Citywide Computer Hardware Replacement (City Manager)
|Citywide Network Infrastructure Upgrades (City Manager)||$230,000|
|Camera Surveillance System Upgrade (City Manager)||$30,000|
|Pavement Markings (Public Works)||$110,000|
|Replacement of Police Cruisers (Fleet)||$100,000|
|Replacement of Snow Dump Trucks (Fleet)||$165,000|
|Water Line Improvements (Public Utilities)||$220,000|
|Grounds/Median Beautification (Public Works)||$180,000|
|Drainage Projects (Public Works)||$175,000|
The 2017-2021 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.
The City’s General Fund 2017 balance above the reserve requirement is approximately $4.3 million with the City’s main revenue source (income tax) projected to bring in approximately $22.8 million to the General fund. Staff will continue to monitor the General Fund Reserve to insure that it remains at a fiduciarily 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 stable fund balance as the City replenished the income tax revenue to pre-2013 levels. The City will continue to replenish the fund based on meeting revenue projections. The City has also been able to secure outside funding to help offset many of the major construction projects slated for this and future years. No new debt is projected for projects in this fund.
Capital Improvement Fund
The Capital Improvement Fund began the year with a stable fund balance as the City replenished the income tax revenue to pre-2013 levels. The City will continue to replenish the fund based on meeting revenue projections. Several equipment purchases and projects will need to be paid for through the fund balance; namely, replacement of police cruisers and building repairs. As a result of the high project demand, any non-scheduled purchases or projects would further constrain the fund balance. Continued vigilance in capital expenditures will be needed over this and the next several years to ensure that the City continues to maintain a focus on funding projects at sustainable levels.
Debt Service-Unvoted Debt
The City currently has $16.9 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 2017 CIP Budget there will be $5 million in new short-term debt for the Route 4 Water System Improvements and the Wastewater Motor Control Center; however, it is important to note 3 outstanding debts for Wastewater will drop off in 2017. Staff will continue to monitor the situation, particularly reviewing opportunities that will result through the retirement of old debt. Council will be advised regarding appropriate recommended actions as these opportunities become available.
In summary, the 2017-2021 Capital Improvement Program represents a pro-active approach to capital investment/reinvestment on the part of the City of Fairfield. The Capital Improvement Program exemplifies the strong emphasis that the City has historically placed on providing quality infrastructure as a means of maintaining effective public/private partnerships and service levels within the community. We appreciate the continuing support of the City’s elected officials working with staff in this endeavor.