Revitalization Commission Agenda and Packet 2021 05 25

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SUBJECT: EXISTING FUNDS AND CIP BUDGET IMPACTS DATE: MAY 4, 2021 PAGE3OF6 The City anticipates it would begin receiving the bond proceeds in June 2022. The bond issue could be structured so that the Capital Projects Fund can get reimbursed for any project costs (design costs) incurred before the City receives bond proceeds. We are also proposing to use capitalized interest for paying interest on the bonds for 2022. At this time, staff does not believe it is necessary to begin expenditure reductions until 2023, however projects and funding could be shifted in various ways to address future bond repayment requirements. Some options for reducing the C-I-P expenditures within the Capital Projects Fund includes: • Amend the 2022 and 2023 C-I-P by reducing and removing some of the planned transportation projects. o Remove or reduce 2022 C-I-P Project #79, Transportation Master Plan (TMP) implementation, for a $1.3 million expenditure reduction, and carryforward these funds to 2023 for debt repayment. This project includes several transportation improvements identified through the TMP process, and prioritized by the City for completion in 2022, including Via Appia corridor improvements, Citywide Bike Routes, Enhanced Pedestrian Crossings, US 36 bikeway connections at McCaslin area, Fun Routes bike trails, Safe Routes to school connections. o If this project is removed and funding is carried forward to 2023 for debt repayment these improvements would not be completed. • Amend the 2022 C-I-P by reducing the paving budget to carry forward a portion of that project budget to provide additional funding for debt repayment. o The 2022 paving budget C-I-P project #78, is significantly larger in 2022 than in future years. Reduce the paving budget from $5,150,000 and carry forward some funds to 2023 to provide funding for debt repayment in 2023. The paving projects would need to be reduced in scope to address these new investments. • Amend the 2023 C-I-P by reducing the $3,680,000 paving budget to make debt repayments. • Identify other non -transportation C-I-P projects planned in 2023 to generate $1.5 million for TMP projects. Reductions to the C-I-P would be required in future years beyond 2023 as well: • There are no TMP implementation funds planned for 2023 and beyond, so no funding capture is available. • Paving Management Program may be reduced in future years to help generate $1.5 million for bond repayment. CITY COUNCIL COMMUNICATION Agenda Packet P. 7