1. Proposed Capital Improvement Plan FY2012-FY2016 Finance Department Kelly Dowe, Director Presented By: Jennifer Olenick, Public Finance Division Manager June 7, 2011

2. Proposed CIP OverviewCIP OrganizationFunding SourcesFinancial ParametersCIP Appropriations – FY12Five-Year AppropriationsVoter Authorized CapacityPublic SafetyStand Out Projects 2

3. 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. 3 Overview

4. 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). 4 CIP Organization

5. 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. 5 Funding Sources

6. 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. 6 Financial Parameters-Constraints

7. CIP projects total $1.062 billion from all funding sources. -Enterprise Programs total $662 million -Public Improvement Programs total $400 million $74 million is Public Improvement Bonds (PIB) 7 CIP Appropriations – FY12 FY11 Comparison ($ millions)FY11FY12 TOTAL$989$1,062 Enterprise Funds 61662% 66262% PIP 37338% 40038% PIBs 91 39% 74 27% Storm Drainage PIBs 56 35 DDSRF 0 0% 5614% Other 22661% 23559%

8. 8 Appropriation Summary – All Funds Department Est.2011201220132014201520162011-2016Total Enterprise Programs Aviation 111,478270,024214,139106,13727,400256,223873,923985,401 Conv. & Ent. 2,9355,2856,5934,9805,1856,82028,86331,798 WasteWater 183,221199,912187,161183,470186,255184,213941,0111,124,232 Water 179,779186,442189,396186,290219,457219,2141,000,7991,180,578 Total 477,413661,663597,289480,877438,297666,4702,844,5963,322,009 Public Improvement Program Public Safety 12,38212,95452,08336,17539,00025,070165,282177,664 Gen. Improvement 14,17729,61310,0799,87010,07510,92570,56284,739 Housing 2,0003,000 15,00017,000 Library 4,9499,6577,3507,7918,1508,57041,51846,467 Parks 23,00713,12719,07513,51211,20010,22567,13990,146 Storm Drainage 83,72858,96057,73060,00758,33060,041295,068378,796 Steet & Traffic 155,728273,249164,142155,923176,656126,845896,8151,052,543 Total 295,971400,560313,459286,278306,411244,6761,551,3841,847,355 Grand Total 773,3841,062,223910,748767,155744,708911,1464,395,9805,169,364 ($ Thousands)

9. 9 Appropriation Summary – All Funds

10. Bonds – 2006 Bond Authorization to deplete in FY2013 10 Voter Authorized Capacity DepartmentPublic Improvement BondsEst. FY2011FY2012FY2013FY2014FY2015FY2016FY2011-FY2016 Fire Fund 45005,2245,13710,575600 16,312 Future Bond Election 11,12510,72510,82532,675 Gen Gov't Fund 45093,0874,9722,645 7,617 Future Bond Election 2,1252,2752,2506,650 Health Fund 45081,9106,2461,300412 7,958 Fund 45096551,332 Future Bond Election 3,5675,700 14,967 HousingFund 45012,0003,000 15,000 Library Fund 45075,6632,2207,3501,451 11,021 Fund 4509 0 Future Bond Election 6,3408,1508,57023,060 Parks Fund 450210,9537,81015,075 22,885 Fund 4509 0 Future Bond Election 13,51210,20010,22533,937 Police Fund 45047,3287,15737,18523,4503,680 71,472 Future Bond Election 24,59514,24538,840 Solid Waste Fund 45031,3803,3631,134 4,497 Future Bond Election 3,7662,1002,9758,841 Street & TrafficFund 450653,08033,000 Totals91,28074,23778,26469,34870,42557,790350,064 ($ Thousands)

11. 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 11 Public Safety

12. 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 12 Stand Out Projects

13. 13 Proposed Capital Improvement Plan FY2012-FY2016