2022 Projects

The projects contained in the 2022-2026 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:

Automatic Meter Reading (AMR): This project will replace all 13,500 meters throughout the City with Automatic Meter Reading (AMR)/Advanced Metering Infrastructure (AMI). The cost of this project will be approximately $5,900,000.
New Water Tower: In 2022 the Public Utilities Department will construct a new 1.25 MG elevated water storage tower in Seward Zone along Port Union Road. The cost of this project will be approximately $5,200,000.
Rt. 4/Michael/Camelot - Construction: This project is a safety project to realign the intersection of Route 4 with Michael Lane and Camelot Drive. Improvements will include shifting the existing pavement, overlay, curb, sidewalk, pavement markings, etc. The traffic signal supports and existing utilities will need to be relocated. The total project cost will be approximately $1,477,685, with $178,365 coming from City funds. An ODOT Safety Grant is covering $1,186,320 (80%) of the project costs and Community Development Block Grant (CDBG) funding in the amount of $113,000 has also been secured for this project.
Replacement Fire Truck: This project will occur in 2022 and is expected to cost $1,200,000. This is for the replacement of a 2000 E-One Ladder Truck.

Recurring Projects

For 2022, the larger annual programmed maintenance projects and respective costs include:

Project	Cost
Street Paving and Curb Replacement (Public Works)	$2,785,000
Sidewalk / Apron Program (Public Works)	$165,000
Citywide Computer Hardware Replacement (City Manager)	$225,000
Citywide Network Infrastructure Upgrades (City Manager)	$110,000
Camera Surveillance System Upgrade (City Manager)	$35,000
Pavement Markings (Public Works)	$75,000
Replacement of Patrol Vehicles (Fleet)	$260,000
Small Water Line Improvements (Public Utilities)	$150,000
Pump Overhaul / Replacement Program (Public Utilities)	$155,000

Future Projects

The 2022-2026 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.

Fund Commentary

General Fund

The City’s 2022 General Fund balance is above the reserve requirement. This fund’s primary revenue source (income tax) is projected to bring in approximately $26 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 vehicles, equipment 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 $13.5 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 2022-2026 Capital Improvement Budget contains $18.4 million in additional debt within the Water and Sewer funds. In 2022, approximately $12.8 million in debt is anticipated, all within the Water and Sewer funds for a new water tower, automatic meter reading project, and distribution system improvements. 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.

Conclusion

The 2022-2026 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.