PAYG and Short-term Finance FY 2019 PROPOSED BUDGET HIGHLIGHTS Fund - - PowerPoint PPT Presentation

FY 2019 PROPOSED BUDGET HIGHLIGHTS

County Board Work Session

PAYG and Short-term Finance

April 5, 2018

Fund 313

PAYG Overview

1

• Pay-As-You-Go (PAYG) is funded from local County tax dollars
• Historically used for routine maintenance capital expenditures
• Reduces premature asset failure and extends useful life
• Maintains existing infrastructure versus new projects
• Asset condition assessment software being updated for Parks and Facilities

programs

• Maintenance capital funded from two primary sources
• PAYG
• Voter approved GO bonds
• PAYG funds assets with useful life of ten years or less

PAYG Overview

2

• Upcoming Capital Improvement Plan formulation will include larger conversation

about annual PAYG funding needs

• Discussion about long-term effects of reducing PAYG and being able catch up

with deferred maintenance

• Choices about new projects and associated operating costs versus maintaining

existing inventory with appropriate funding levels

• On-going PAYG funds have reduced slightly over the past several years

PAYG Overview

3

• Availability of “one-time” funds (non-recurring) have substantially been reduced over

the last two years

• Carryover funds previously available during closeout and budget formulation have

diminished

PAYG Overview

4

PAYG Balances

Beginning PAYG balance (7/1/17): $132M FY18 Commitments to-date (2/28/18): $58M Available Balance (2/28/18): $81M

• Carryover balances fluctuate year-to-year depending on project execution
• Capital projects are multi-year in nature
• Large project carryover balances include: (all balances are committed to existing projects)
• Central Library interior improvements – balance $0.965M
• Anticipated completion Fall 2018
• Fire Station 6 – balance $0.515M
• Anticipated completion Winter 2018
• Fire Station 8 – balance $1.7M
• Anticipated completion Fall 2021

PAYG Overview

5

PAYG Balances

• Carryover balances cont’d:
• Mosaic Park – balance $4.27M
• Anticipated completion Spring 2020
• Long Bridge – PAYG & developer contribution balance $21.75M (additional GO Bonds

balance of $15.6M)

• Anticipated completion 2020
• Improvements Outside Major Corridors –balance $0.465M
• Anticipated completion FY 2021
• Rosslyn Ballston Arterial Street Improvements – balance $1.01M
• Anticipated completion FY 2020
• Streetlighting – balance $1.67M
• Anticipated completion FY 2020
• Transportation Systems and Signals – balance $1.84M
• Anticipated completion FY 2019

Summary of Proposed Budget

• Aging inventory continuing to grow
• Adding staff where appropriate to help plan and execute capital projects
• Proposed FY 2019 reduction of ongoing PAYG budget of $1.5M
• Other fund sources used to fund FY 2019 Capital Program
• Parks Program - $3.802M
• Synthetic Turf Fields
• Partnerships/Cost-sharing - $0.496M (Long Bridge Field #1; Marymount cost-

share)

• Crystal City TIF - $1.335M (Long Bridge Fields #1 & #2)
• Parks synthetic turf contingency balances - $0.810M (New field, location TBD)
• Parks Field Fund (team fee revenue) - $1.06M (New field, location TBD)
• Grass Fields
• Program contingency balances - $0.10M (Gunston Park grass field

replacement)

Summary of Proposed Budget

• Other fund sources, cont’d
• Transportation Program - $0.40M
• Paving - $0.209M (Prior-year GO Bond balances)
• Multi-modal Projects - $0.191M (Prior-year GO Bond balances)
• Facilities Program - $0.10M
• Trades Center Master Plan - $0.10M (Prior-year GO Bond balances)
• Proposed budget does not include GO bond funding that will be determined

during the upcoming FY 2019 – FY 2028 CIP formulation

PAYG Overview

Major Completed Capital Projects

• Bluemont Park Athletic Field and Trail

Improvements

• High View Park Athletic Field,

Restroom/Storage, Picnic Shelter and Plaza

• Barcroft Sports & Fitness Center Gymnastics

Program Expansion

• Aurora Hills Community and Senior Center and

Library Upgrades

• County completed four key land acquisitions

8

Capital Program Accomplishments

PAYG Overview

9

Major Completed Capital Projects, cont’d

• Building 2020 Garage and Elevator

Upgrades

• Trades Center Parking Garage Third Level
• HVAC Upgrades at the Water Pollution

Control Plant

• Nearly $20 million in contracts awarded for

transportation improvement projects

• The County completed ten neighborhood

conservation projects

Capital Program Accomplishments

Proposed Capital Program:

10

Reduction to PAYG Program Service Impacts Budget Impact

Paving Program

• Stated Paving Condition Index (PCI) goal of 75-80
• Current PCI is 74
• Maintains PCI contingent upon various factors
• Severity of weather
• Contracting costs
• Price of oil
• Affords approximately 78.5 lane miles of paving
• Does not include 2018 GO bond funds of ~$11M

anticipated FY 2018: $6,875,285 FY 2019: $5,321,750 Change:

• $1,553,535

Proposed Capital Program:

11

Paving Cost History

2017 Final Paving/Slurry Seal/Micro-surfacing Map link: https://arlingtonva.s3.dualstack.us-east-1.amazonaws.com/wp-content/uploads/sites/19/2017/02/2017FinalPavingSlurryMicroSeal.pdf

Summary of Proposed Budget

• Average funding of $10M per year
• Previously financed through use of master lease program
• Master lease infrequently used in other jurisdictions and not many banks are

currently providing the service

• County intends to utilize either a line of credit combined with short term bank

loans / revenue bonds or a variation of previous master lease vehicles

Short-term finance (master lease)

Summary of Proposed Budget

13

Short-term Finance

• Funding levels fluctuate depending on equipment

replacement cycles

• Fund source typically finances:
• PC replacement
• Network Equipment
• Server Refreshment
• Video Conferencing
• Enterprise Wireless
• Fire Station Alerting System
• Fire Breathing Apparatus
• Fire Defibrillators
• Public Safety Mobile and Portable Radios
• Sheriff and Police In-Car Cameras
• Fire Vehicles

Proposed Capital Program:

14

PROGRAM CATEGORY Base Funds One- Time Funds FY 2019 Proposed FY 2017 C/O Funds Total FY 2019 PAYG Funds Proposed FY 2019 Short- Term Fin T ransportation Maintenance C apital $1,888 $223 $2,111 $140 $2,251

• F acilities Maintenance C apital
• $1,562

1,562

• P arks Maintenance C apital

1,022

• 1,022

$100 1,122

• S ubtotal Maintenance C apital

2,910 223 3,133 1,802 4,935

• R egional P artnerships

1,263

• 1,263
• 1,263
• Neighborhood C onservation
• 500

500

• E nterprise Information T echnology

400

• 400

1,282 1,682 3,985 P ublic S afety Information T echnology

• 5,123

T ransportation Multi-Modal 251

• 251

119 370

• P ark Master P lans
• **S ynthetic T urf

179

• 179

1,871 2,050

• F acilities Design and C onstruction
• 855

855

• Land Acquisition
• C apital C ontingent

319

• 319
• 319
• S ubtotal Other C apital

2,412

• 2,412

4,627 7,039 9,108 Total Projects $5,322 $223 $5,545 $6,429 $11,974 9,108 * Numbers may not add due to rounding.

PAYG and Short-term Finance Projects ($ in 000s)

**S ynthetic turf carryover funds do not include C rystal C ity T IF funds or P artnership cost-sharing funds

Proposed Capital Program:

15

Transport

• rtati

tion

• n

Paving Program Description PAYG GO Bond Balances 2018 GO Bond Referenda Hot Mix Overlay Paving has been increased to over 75 lane m iles

• annually. This includes about three lane m iles of

streets without curb and gutter (five percent of funding). $476,000 $209,000 $9,900,000 Slurry Seal Slurry Seal extends the life

• f

pavem ent

• n

Residential Streets at a m uch lower per square yard

• cost. Program is based on approxim ately 40 lane

m iles being slurry sealed annually. $400,000 Microsurfacing Microsurfacing extends the life of pavem ent for Arterial Streets at a lower per square yard cost. Program is based on approxim ately 10 lane m iles being m icrosurfaced annually. $500,000 Other Transportation Maintenance Capital I ncludes I TS Device Replacem ent, Street Lighting, and Trail Lighting. $875,000 Multi-Modal I ncludes bicycle and pedestrian projects, parking m eters, parking technology and the transportation asset m anagem ent program . $370,000 $191,000

Transportation Maintenance Capital

$209,000 $10,650,000 $400,000 $10,650,000 Re-Building of Streets Subtotal Paving Program Only $1,376,000 Funding includes PAYG ( $1.38M) and * GO Bonds ( $10.85M) Re-builds include partial and total excavations of blocks to re-build the base and sub-base of roadways where significant roadway failure has

• ccurred. Since 2008, an innovative process to

stabilize soil with cem ent has reduced re-build costs by around 50 percent. $750,000 GO Bonds are assum ed from the upcom ing 2018 GO Bond Referenda Total ( PAYG $2.6M; Bonds $11.05M) $2,621,000 The inventory of streets is broken down as follows: 25 percent are arterial streets, 11 percent are collector streets and 64 percent are residential streets. The Pavem ent Condition I ndex (PCI ) is updated annually and Arlington’s average PCI is currently 74. The County uses a variety of m aintenance strategies to m aintain streets as detailed below.

• Paving program completed Fall 2019. The other programs/ projects are ongoing.

Proposed Capital Program:

16

Par arks a s and R Recreation

Project Nam e - Description PAYG Program Contingency Total Anticpated Start/ Com pletion Schedule 1. Gunston Park – Design and construction. The project is for replacem ent of the grass com m unity field. $405,000 $100,000 $505,000

S ummer 2018 / F all 2018

• 2. W estover Park –

Design and construction. The project is for replacem ent of the grass com m unity field. $62,000 $62,000

S ummer 2018 /S ummer 2018

• 3. Capital Asset Manager – Staff resources to m anage

the capital asset program . $155,000 $155,000

NA

4. Field Fund Program – The fees assessed for rectangular fields are to support replacem ent and construction of synthetic turf fields in the County (annual estim ate of $180,000). The fees assessed on diam ond fields (annual estim ate of $70,000) are to be used for specific diam ond field enhancem ents, such as im proved irrigation, batting cages, or accelerated sod replacem ent. $250,000 $250,000

NA

• 5. Feasibility Studies –

These funds will provide the ability to conduct tim ely and relevant analysis and studies as opportunities arise. The program is m eant for new planning initiatives that are outside current CI P projects. Exam ples are potential planning and analysis needs for parks and sites associated with site plan proposals, Arlington Public Schools proposals, affordable housing proposals, or land acquisition opportunities. $150,000 $150,000

As Needed

Totals $1,022,000 $100,000 $1,122,000

Parks Maintenance Capital Program FY 2019 Project List

Proposed Capital Program:

17

Par arks a s and R Recreation

Project Nam e - Description PAYG Synthetic Turf Program Contingency Cost Share Field Fund CC TI F Total Anticipated Start/ Com pletion Schedule 1. Long Bridge – Design and construction of synthetic turf, infill and subbase repair for field # 4. $838,392 $838,392 Sum m er 2018 / Sum m er 2018 2. Long Bridge – Design and construction

• f

synthetic turf, infill, subbase repair and shade structures for field # 1. There is a 50/ 50 cost share with Marym ount University for this field. $496,379 $496,379 $992,758 Sum m er 2018 / Sum m er 2019

• 3. New Field – Design and construction

for new synthetic turf location, to be determ ined through the Public Spaces Master Plan update process. Project includes new subbase, synthetic turf, infill, site am enities (depends on site) and potentially lighting (depends

• n

site). $179,000 $810,000 $1,061,000 $2,050,000 Fall 2019 / Fall 2019 Totals $179,000 $810,000 $496,379 $1,061,000 $1,334,771 $3,881,150

Parks Synthetic Turf Program FY 2019 PAYG Project List

Proposed Capital Program:

18

Facilit cilitie ies

Project Nam e - Description Total Anticipated Start/ Com pletion Schedule 1 . Justice Center Facade Cleaning - Power wash the Detention and Court Police Facade. $247,000 Sum m er 2018 / Sum m er 2018 2 . Aurora Hills Library and Com m unity Center - total roof replacem ent; HVAC replacem ent; installation of building autom ation system (BAS) and lighting replacem ent. $705,000 Sum m er 2018 / Sum m er 2019 3 . Softw are/ System Upgrades - Replace Fire Alarm system s at the Residential Program Center and Arlington Arts Center and upgrade access control panels $100,000 Sum m er 2018 / Winter 2018 4 . Critical System s I nfrastructure – Replace uninterruptable power system s (UPSs) in County network

• perating center (NOC)

$300,000 Sum m er 2018 / Fall 2018 5 . Chair Replacem ent - System atic annual chair replacem ent program to replace task chairs throughout County facilities. Existing chairs ten years or older will be replaced, supportive of the industry standard for life

• span. This year would start the third year out of an

eleven-year program . $110,000 Sum m er 2018 / Winter 2018 6 . I nterior Maintenance Capital I m provem ent - System atic capital m aintenance program that allows for the annual interior refurbishm ent of flooring, wallpaper, painting and signage. Facility revitalization has been deferred over the past decade due to the lack of departm ental funding sources. This program would enable the facilities to be upgraded through a system atic ranking of needs based on yearly assessm ents of our 90+ buildings by internal staff. $100,000 Sum m er 2018 / Spring 2019 Total PAYG $ 1 ,5 6 2 ,0 0 0

Facilities Capital Program FY 2019 Project List

Proposed Capital Program:

19

Facilit cilitie ies

Project Nam e - Description PAYG GO Bond Balances Total Anticipated Start/ Com pletion Schedule

• 1. ADA Rem ediation - I n FY13, the County

com pleted a com prehensive assessm ent of 54 facilities to determ ine any deficiencies in access for persons with physical disabilities in it. This program is to rem ediate existing facilities. $500,000 $500,000 Ongoing

• 2. Facility Master Planning and Feasibility

Studies - Facility m aster planning provides an integrated approach that addresses short, interm ediate, and long-term needs for County

• facilities. This funding is for staff charges for the

developer funded project at Fire Station# 10 ($60,000), site developm ent at 26th and Old Dom inion ($45,000), Feasibility Studies ($250,000), and partial funding for the Trades Center Optim ization Study ($100,000). $355,000 $100,000 $455,000 Ongoing Totals $855,000 $100,000 $955,000

Facilities Design and Construction Program FY 2019 PAYG Project List

Proposed Capital Program:

20

Inform

• rmati

tion

• n T

Technol

• logy
• gy

Program Description PAYG

Anticipated Start/ Com pletion Schedule Network Equipm ent Refresh This project provides continuous refreshm ent of County network equipm ent as it reaches end of life and/ or requires enterprise-level feature enhancem ents and upgrades. This funding is in addition to short-term financing funds. $491,000 Ongoing, funds expended by end of FY 2019 TeleworkingMobility The refreshm ent of this hardware is necessary to support connections for rem ote workers to connect to County applications and network drives and enables teleworking. The support for existing equipm ent expires in the second quarter of FY 2019. $261,134 Sum m er 2018 / Winter 2018 Security With these FY 2019 funds, inform ation security will be expanded by im plem enting a m ore robust m ail filtering system that will catch m ore spam and m alware and reduce the chances of a ransom ware attack. An estim ated 80% of the threats received from em ail would be captured by this tool. $265,000 Sum m er 2018 / Winter 2018 DHS Housing Choice Voucher Paym ent System The new system will m anage all business functions needed in the adm inistration of HCV program s including: client waiting list, eligibility determ ination, subsidy calculation, paym ents, financial reconciliation with County financial system , and be com pliant with all HUD regulations and m andates. $100,000 Winter 2018 com pletion DHS Local Housing and Benefits Software System This new system will m anage all business functions needed in the adm inistration of Local Housing and Assistance Program s including: client's eligibility determ ination, benefit calculation, paym ents, financial reconciliation with County financial system , and reporting. Previously, these local program s were handled within the Housing Choice Voucher (HCV) system through a special configuration. $315,000 Winter 2018 com pletion Electronic Sum m ons System Effective in FY 2015, the County began assessm ent of a $5.00 fee as part of the costs in each crim inal or traffic case in the district or circuit courts for the use of purchasing an electronic sum m ons system . The costs of the system include peripheral equipm ent such as handheld devices, portable printers, driver’s license scanners, and barcode readers, as well as the m aintenance required for the system . The FY 2019 PAYG budget reflects the projected annual revenue from the fees. $150,000 Ongoing revenue CAFR Software This new financial reporting software will be used to autom ate the preparation of the County’s CAFR schedules and reports, thereby reducing personnel tim e spent and com pounding resource utilization. I m proved

• versight of County-wide financial reporting and financial transactions will

facilitate strong internal controls and reduce audit risks. $100,000 Spring 2019 / Sum m er 2019 Total I nform ation Technology FY 2019 PAYG $1,682,134

I nform ation Technology Maintenance Capital FY 2019 PAYG Project List

Proposed Capital Program:

21

Sh Short rt-term rm F Finance ce

Project Nam e and Description Short-Term Financing Anticipated Start/ Com pletion Schedule Endpoint Replacem ent - Most end user com puting devices in the County currently operate on Windows 7. I n January 2020, m anufactuer support for this operating system will term inate, and any devices still running it will stop receiving critical security patches. Thus, all County devices m ust be upgraded to Windows 10 before this date. These funds will be used to replace over 960 devices and upgrade over 1,200 devices. $1,985 Ongoing refreshm ent, funds depleted by end of FY19 Network Equipm ent Refresh - These funds will be used to replace network switches and routers which are still being used past their useful life. 1,500 Ongoing refreshm ent, funds depleted by end of FY19 Data Storage - These funds will be used to replace servers and other storage hardware that have reached the end of their useful life. 500 Ongoing refreshm ent, funds depleted by end of FY19 Subtotal Enterprise Technology and Equipm ent $3,985 Fire Station Alerting System - These funds will be used to upgrade and standardize station alerting, replacing the County’s current twelve-year-

• ld technology. The alerting system reduces response tim e for

firefighters and param edics, reducing the chance of flashover and increasing the chances of patient survival. 1,110 Start Sum m er 2018 / Anticipated com pletion Spring 2019 Fire Breathing Apparatuses - These funds will be used to replace Self Contained Breathing Apparatuses (SCBA), which are devices that provide clean air to firefighters in hazardous conditions. The County’s current SCBAs were purchased in Septem ber 2008 and will no longer be covered under the m anufacturer’s ten-year warranty as of Septem ber 2018. 3,298 Start Sum m er 2018 / Winter 2019 ECC Radio System - Circuit to I P Sim ulcast Conversion - The existing em ergency com m unication radio system network operates using circuit- based connectivity between rem ote sites within the system . Building m ore advanced features into this radio system will require first converting it to I nternet Protocol (I P) based connectivity. These funds will convert all rem ote sites to the I P based connectivity and replace all relevant hardware and fiber. 715 Anticipated com pletion Spring 2019 Subtotal Public Safety $5,123 General Fund: Program Costs $9,108 TOTAL Project Costs $9,108

I nform ation Technology FY 2019 Short- term Finance Project List