The projects contained in the 2020-2024 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:
- Replacement Fire Truck: This project will occur in 2020 and is expected to cost $630,000. It will include the replacement of a 1998 E-One fire truck.
- Muskopf Storm Sewer - Construction: In 2020 the Public Works Department will install a large diameter storm sewer from the end of Muskopf Road to the existing Lake Michigan detention basin. The cost of this project will be approximately $990,000.
- Water Tank / Tower Maintenance: During 2020, the Public Utilities Department will recoat the interior and exterior surfaces and install a mixing system for the Seward Road 1.5 MG Hyrdopillar Water Storage Tower. The tank / tower maintenance improvements will cost approximately $665,000.
For 2020, the larger annual programmed maintenance projects and respective costs include:
|Street Paving and Curb Replacement (Public Works)||
|Sidewalk / Apron Program (Public Works)||
|Citywide Computer Hardware Replacement (City Manager)
|Citywide Network Infrastructure Upgrades (City Manager)||
|Camera Surveillance System Upgrade (City Manager)||
|Pavement Markings (Public Works)||
|Replacement of Patrol Vehicles (Fleet)||
|Small Water Line Improvements (Public Utilities)||
|Pump Overhaul / Replacement Program||
The 2020-2024 Capital Improvement Program places a strong emphasis on the City’s continuing commitment to upgrade and improve its infrastructure while staying within 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 sustaining an excellent quality of life. Several of these projects are dependent on grants and other forms of outside funding if implementation is to be achieved.
The City’s 2020 General Fund balance is above the reserve requirement. This fund’s primary revenue source (income tax) is projected to bring in approximately $25 million. Staff will continue to monitor the General Fund Reserve to ensure that it remains at a fiscally responsible level. Continued vigilance in both operating and capital expenditures remains the primary 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 provided revenue projections continue to be met. The City has also been able to secure outside funding to help offset many of the major construction projects slated for current 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 low fund balance. The City did replenish the income tax revenue to pre-2013 levels. The City will continue to replenish the fund provided revenue projections continue to be met. Several equipment purchases and projects will need to be paid for via 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 the current 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 $17.5 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. The 2020 Capital Improvement Budget does not contain any additional debt. In years 2021 through 2024, approximately $15.4 million in debt is anticipated. An evaluation of the necessity for debt is performed each time a debt issuance is considered. The City had two debt issuances set to conclude during this program, one in 2021 and another in 2023. Staff will continue to monitor the outstanding debt for all operations, taking into consideration the anticipated near-term capital needs. Council will be advised regarding appropriate recommended actions as new or refunding opportunities become available.
The 2020-2024 Capital Improvement Program represents a proactive 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 sustaining 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.