Proposed Capital Improvement PlanFY2012-FY2016

Finance DepartmentKelly Dowe, Director

Presented By:Jennifer Olenick, Public Finance Division Manager

June 7, 2011

Proposed CIP

Overview

CIP Organization

Funding Sources

Financial Parameters

CIP Appropriations – FY12

Five-Year Appropriations

Voter Authorized Capacity

Public Safety

Stand Out Projects

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The CIP:• Is a rolling 5 year plan of projected infrastructure projects.• A live document and subject to change due to environmental

factors; funding, budgets, shifting priorities, scheduling, citizens input, etc.

• Has a 1.75% Civic Art component on vertical construction projects.• Is accessible online through the Finance Department’s website.• Covers two components, the Public Improvement Program and

Enterprise Fund Program.

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Overview

Two Components:• Public Improvement Program (PIP) includes all projects

associated with General Fund departments including Fire, General Government, Housing, Library, Parks, Police, Public Health, Solid Waste, and PWE (Storm Drainage).

• Enterprise Fund Program includes all projects associated with the City’s business-type entities including the Combined Utility System (CUS), Convention & Entertainment (C&E), and the Houston Airport System (HAS).

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CIP Organization

• Public Improvement Program (PIP)– General Fund supported debt (Public Improvement Bonds)– Storm Drainage Dedicated Drainage & Street Renewal Fund*– Community Development Block Grants– Tax Increment Reinvestment Zones (TIRZ)**– Other governmental entities such as METRO and TxDOT– Other community donations, contributions and grants

• Enterprise Fund Program– Revenues from water customers, airlines, parking fees, etc. may fund

projects directly or support associated debt– Other grants, etc.

* “DDSRF” (Rebuild Houston)** Joint City/TIRZ projects only. Each TIRZ separately presents to Council their annual budget and 5-year CIP.

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Funding Sources

• Economy – ad valorem tax revenues are pledged to pay the debt service on Public Improvement Bonds.– Each fall Council sets a Maintenance and Operations (M&O) and an

Interest & Sinking Fund (I&S) tax rate. The latter constitutes the annual transfer of funds from the General Fund to the Debt Service Fund. The I&S rate for FY11 was $0.175388 out of the total tax rate of $0.63875 on each $100 of taxable value (27% of ad valorem tax revenues).

– The Finance Department maintains a 20-yr debt model to manage the ongoing level of required debt service payments.

• Budget – the impact of operation and maintenance expenses for new facilities on future operational budgets.

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Financial Parameters-Constraints

• CIP projects total $1.062 billion from all funding sources. - Enterprise Programs total $662 million- Public Improvement Programs total $400 million• $74 million is Public Improvement Bonds (PIB)

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CIP Appropriations – FY12

FY11 Comparison ($ millions) FY11 FY12TOTAL $989 $1,062Enterprise Funds 616 62% 662 62%PIP 373 38% 400 38%

PIBs 9139%

7427%

Storm Drainage PIBs 56 35DDSRF 0 0% 56 14%Other 226 61% 235 59%

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Appropriation Summary – All Funds

Department Est.2011 2012 2013 2014 2015 2016 2011-2016 Total

Enterprise Programs

Aviation 111,478 270,024 214,139 106,137 27,400 256,223 873,923 985,401

Conv. & Ent. 2,935 5,285 6,593 4,980 5,185 6,820 28,863 31,798

WasteWater 183,221 199,912 187,161 183,470 186,255 184,213 941,011 1,124,232

Water 179,779 186,442 189,396 186,290 219,457 219,214 1,000,799 1,180,578

Total 477,413 661,663 597,289 480,877 438,297 666,470 2,844,596 3,322,009

Public Improvement Program

Public Safety 12,382 12,954 52,083 36,175 39,000 25,070 165,282 177,664

Gen. Improvement 14,177 29,613 10,079 9,870 10,075 10,925 70,562 84,739

Housing 2,000 3,000 3,000 3,000 3,000 3,000 15,000 17,000

Library 4,949 9,657 7,350 7,791 8,150 8,570 41,518 46,467

Parks 23,007 13,127 19,075 13,512 11,200 10,225 67,139 90,146

Storm Drainage 83,728 58,960 57,730 60,007 58,330 60,041 295,068 378,796

Steet & Traffic 155,728 273,249 164,142 155,923 176,656 126,845 896,815 1,052,543

Total 295,971 400,560 313,459 286,278 306,411 244,676 1,551,384 1,847,355

Grand Total 773,384 1,062,223 910,748 767,155 744,708 911,146 4,395,980 5,169,364

($ Thousands)

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Appropriation Summary – All Funds

Est.2011 2012 2013 2014 2015 20160

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

0

50000

100000

150000

200000

250000

300000

350000

400000

450000Public Improvement Program

Steet & Traffic Storm Drainage ParksLibrary Housing Gen. ImprovementPublic Safety PIB Debt Trend

Est.2011 2012 2013 2014 2015 20160

100,000

200,000

300,000

400,000

500,000

600,000

700,000

Enterprise Programs

Conv. & Ent. WasteWater Water Aviation

Bonds – 2006 Bond Authorization to deplete in FY2013

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Voter Authorized Capacity

Department Public Improvement Bonds Est. FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2011-FY2016

FireFund 4500 5,224 5,137 10,575 600 16,312Future Bond Election 11,125 10,725 10,825 32,675

Gen Gov't Fund 4509 3,087 4,972 2,645 7,617Future Bond Election 2,125 2,275 2,250 6,650

HealthFund 4508 1,910 6,246 1,300 412 7,958Fund 4509 655 1,332 1,332Future Bond Election 3,567 5,700 5,700 14,967

Housing Fund 4501 2,000 3,000 3,000 3,000 3,000 3,000 15,000

LibraryFund 4507 5,663 2,220 7,350 1,451 11,021Fund 4509 0Future Bond Election 6,340 8,150 8,570 23,060

ParksFund 4502 10,953 7,810 15,075 22,885Fund 4509 0Future Bond Election 13,512 10,200 10,225 33,937

Police Fund 4504 7,328 7,157 37,185 23,450 3,680 71,472Future Bond Election 24,595 14,245 38,840

Solid Waste Fund 4503 1,380 3,363 1,134 4,497Future Bond Election 3,766 2,100 2,975 8,841

Street & Traffic Fund 4506 53,080 33,000 33,000Totals 91,280 74,237 78,264 69,348 70,425 57,790 350,064

($ Thousands)

• 2006 Bond Authorization for $135M– $34M for Radio Infrastructure Upgrades– $66M for HPD– $35M for HFD

• Current Public Safety Projects– District 17 Police Station Construction– Fire Station #20, 30 & 56 Expansion– Arson Lab Renovations– Reisner Fire Alarm Replacement

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Public Safety

• New Health Laboratory • Julia Ideson Building• Lake Houston Wilderness Park• Miller Outdoor Theater• Remodeling and Expansion of Terminal D at IAH• BARC Facilities renovations and future Adoption Center

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Stand Out Projects

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Proposed Capital Improvement PlanFY2012-FY2016