Dana Heiberg, Senior Planner February 5, 2018 FY 2019 – FY 2024 Capital Improvement Program Staff Recommendation to the Planning Commission Dana Heiberg, Senior Planner February 5, 2018

Definition and Purpose The Capital Improvement Program (CIP) Financial planning document with a six-year schedule for a variety of public facilities and improvements throughout the town The first year of the CIP is part of the annual operating budget, with actual funding for projects “Out year” project amounts = a plan to support major project stages from concept through design and construction February 5, 2018 Draft FY 2019 - FY 2024 CIP - Staff Recommendation

Project Overview The proposed CIP contains 49 projects: 37 General Fund projects 12 Enterprise Fund projects Most of these projects are on-going from the adopted FY 2018 -FY 2023 CIP. New project: #34 Police Facility Security February 5, 2018 Draft FY 2019 - FY 2024 CIP - Staff Recommendation

Fully Funded or Completed Projects that no longer appear in the FY 19 – FY 24 CIP General Fund Herndon Parkway/Sterling Road Intersection Town Support Facilities Water and Sewer Fund: Water Storage Tank Rehabilitation (scope incorporated within other projects). February 5, 2018 Draft FY 2019 - FY 2024 CIP - Staff Recommendation

Parks and Recreation 10 projects related to parks, trails and major recreation facilities; highlights: Bready Park Tennis Courts - $55,000 in FY 19 and $345,000 in FY 20 to renovate the courts as well as the air structure, which is approaching 19 years of age. Replace inner membrane and convert lighting to LEDs. Community Center Phase 5 – Design in FY 23 and construction in FY 24; total cost $4,325,000 with $4,225,000 in general obligation bond funding Runnymede Park Nature Center - Design in FY 23 and construction in FY 24; total cost $2,950,000 with $2,650,000 in g. o. bond funding February 5, 2018 Draft FY 2019 - FY 2024 CIP - Staff Recommendation

Community Development 9 total General Fund Projects sponsored by Community Development (most projects implemented by Department of Public Works): 5 Street improvement Projects/Programs, with multi-modal approach. East Elden Street: Major VDOT project with multimodal approach 3 Pedestrian/Bicycle improvement related Projects including Metrorail Pedestrian and Vehicle Access Wayfinding Signs and Historic Markers February 5, 2018 Draft FY 2019 - FY 2024 CIP - Staff Recommendation

Public Works 15 General Fund Projects in total: 8 projects related to street and/or intersection improvements or traffic signals. Large Vehicle Replacement Project/Program Storm Drainage Project/Program Buildings Major Maintenance Project/Program Major Road Repaving program Downtown Utility Relocation February 5, 2018 Draft FY 2019 - FY 2024 CIP - Staff Recommendation

Information Technology Information Technology CIP Project: Network infrastructure upgrades and end of life cycle replacements affecting Herndon Municipal Center, Town Hall, Community Center, Public Works Maintenance Facility, Golf Course Funded by reserves of $330,000 with an additional $135,000 for FY 19 February 5, 2018 Draft FY 2019 - FY 2024 CIP - Staff Recommendation

Police Police Radio Equipment is project #33. Fairfax County is moving to an encrypted technology; the county is funding the central console for the Herndon Police; town covering other costs. #33 funding: $211,000 in FY 19. Previous funding =$630,000; same total cost as in previous adopted CIPs New project #34: Police Facility Security; funding in FY 19 at $192,000 February 5, 2018 Draft FY 2019 - FY 2024 CIP - Staff Recommendation

Golf Course Fund Herndon Centennial Clubhouse Expansion Phase Three Project reserves supported concept construction funding is To Be Determined for FY 22 renovation and expansion of existing structure built in 1980 Master Plan Improvements -Enhancements to teeing areas per the Golf Course Master Plan; Construction in FY 22 February 5, 2018 Draft FY 2019 - FY 2024 CIP - Staff Recommendation

Water and Sewer Fund Infrastructure investments for the long term: Water and Sewer Capacity Purchases make up about 70% of the capital project total proposed for the Water and Sewer Fund Water Capacity Purchase in FY 19 at $6,500,000 Sewer Capacity Purchase in FY 20 at $32,000,000 These are planning estimates subject to specific agreements with the providers; revenue bonds are the anticipated funding source February 5, 2018 Draft FY 2019 - FY 2024 CIP - Staff Recommendation

FY 19 – FY 24 Proposed Funding Sources Total for six year period for General Fund projects = $52,343,000 (includes reserves). Total for General Fund projects for FY 19 = $7,876,000 Funding sources for all projects are shown in the draft CIP: CIP reserves General fund Grant sources General obligation bonds Capital leases Proffers or other contributions Enterprise fund revenues (e.g. golf course, water and sewer) and revenue bonds (debt repaid by water and sewer fund revenues) February 5, 2018 Draft FY 2019 - FY 2024 CIP - Staff Recommendation

FY 19 – FY 24 Proposed Funding/Financing Grant funding to support $26,017,000 for general fund projects. 49.7% of total $52,343,000. General Fund to support $9,917,000 in project funding 18.9% of total $52,343,000. General Obligation Bonds to fund Downtown Utility Relocation (reserves), Community Center Ph. 5 (FY 24), Runnymede Park Nature Center (FY 24), Downtown Arts Center (FY 20) and others; total for six years including reserves = $10,955,000. *ALL FIGURES INCLUDE AMOUNTS IN RESERVES COLUMN AS WELL AS THE COLUMNS FOR FY 19 – FY 24 February 5, 2018 Draft FY 2019 - FY 2024 CIP - Staff Recommendation

General Fund Bonding Capacity For Next Five Fiscal Years (Based on Current Outstanding Bonds) Fiscal Year Total Debt Capacity Outstanding at end of Fiscal Year Available after deducting 20% reserve Total Available (without deducting any reserve) Projected: FY 2017 $29.8 M $10.2 M $13.6 M $19.6 M FY 2018 $30.2 M $ 9.1 M $15.1 M $21.1M FY 2019 $30.7 M $ 7.8 M $16.8 M $22.9 M FY 2020 $31.2 M $ 6.5 M $18.5 M $24.7 M FY 2021 $31.7 M $ 5.3 M $20.1 M $26.4 M February 5, 2018 Draft FY 2019 - FY 2024 CIP - Staff Recommendation

FY 19 – FY 24 Proposed Funding Sources Sources for Water and Sewer projects: Operating Revenues and Availability Fees: $16,337,000 Water and Sewer Fund Revenue Bonds: $38,924,000 Fairfax County portion of CIP #45 Sewer Main Relining: $1,143,000 February 5, 2018 Draft FY 2019 - FY 2024 CIP - Staff Recommendation

CIP total dollars by type of fund February 5, 2018 Draft FY 2019 - FY 2024 CIP - Staff Recommendation

FY 19 – FY 24 Sources –all funds/all projects February 5, 2018 Draft FY 2019 - FY 2024 CIP - Staff Recommendation

Alignment with the Comprehensive Plan Major projects requiring debt are included in the adopted 2030 Comprehensive Plan such as: Runnymede Park Nature Center Community Center Phase V Downtown Parking Other major infrastructure CIP projects are necessary to support redevelopment per the Comprehensive Plan. Significant CIP transportation projects: Included in the Comprehensive Plan Included in regional plans and programs Supported by county, regional, state and federal grants February 5, 2018 Draft FY 2019 - FY 2024 CIP - Staff Recommendation

Staff Recommendation FY 19 – FY 24 CIP That the Planning Commission recommend the proposed draft CIP to the Town Manager. Minor adjustments may be needed prior to Town Council review of the Town Manager’s proposed FY 19 budget. February 5, 2018 Draft FY 2019 - FY 2024 CIP - Staff Recommendation