Thursday, May 29, 2008

Capital Projects 2009-2014

So, as we know, the city actually has 2 budgets: the operating budget and the capital budget. The operating budget covers day-to-day expenses for the next year, but the nature of the capital budget is to fund long-term projects, so that budget is planned for the following 6 years.

And why is this important? Because the city forgets that paying Paul requires robbing Peter. Specifically, capital projects are funded in one of 3 ways: operating funds, non-city funds (i.e. money from other governments, which is still our money), and bonds. Projects funded by bonds are not funded immediately; rather, the city spends the money it has, and issues bonds when it runs out of money in accordance with the approved level of bond funding. BUT, the city has to pay back the bonds! It's the same as a credit card.....if you buy something on credit, you don't pay all at once; rather, you make installments on your card. But when you buy too much stuff, you can't afford your installments. The same thing is happening with the city's bond debt. Let's look at some quick debt facts:

-general fund debt service will be up 117% (!!!!) from year to year

-of an $83 million budget, some $9 million + is devoted to debt service, representing over 11% of the budget. Last year's debt service was about 9% of the budget.

-the ratio of outstanding debt to taxable base was not even posted this year, despite being governed by statute. But given a decrease (?) in total assessments, and an increase in debt obligations, you can bet that we are less financially sound as we go along.

I am about to list every capital project funded in this year's capital budget. There will be 3 numbers: the amount of money already budgeted in prior years*, then the amount of budgeted for this year, then the total budget for the project. Here we go (in order of total expense):

(different from the amount of money actually spent on the project)

Note: the total value of the capital budget is $$205,101,005 !!! And that is a best case scenario! For example, the most expensive capital project is the water plant, coming in shy of $30 million. But, I have heard numbers as high as $100 million! In finance committee meetings, the need to replace the plant was described as "dire", "urgent", and "an emergency".

1. water treatment plant upgrades
$165,000
$2,741,580
$28,256,920
primary funding: bonds

2. hillman garage
$0
$1,200,000
$22,353,170
primary funding: bonds

3. truxtun recreation center
$8,144,810
$8,606,310
$16,751,120
primary funding: bonds

4. renovation of police station
$15,115,950
$0
$15,115,950
primary funding: bonds

undergrounding of power lines (the city describes this as merely an "order of magnitude listing". comment for details)
$0
$0
$14,400,000
primary funding: bonds

5. general roadway improvements
$0
$1,608,610
$11,608,610
primary funding: operating funds

6. outer west st gateway
$0
$1,780,000
$9,600,000
primary funding: bonds with non-city match

7. fleet and cornhill streets repairs
$657,870
$0
$9,407,870
primary funding: bonds

8. truxtun park pool replacement
$0
$0
$7,775,000
primary funding: non-city funds

9. phased renovation of Eastport fire station
$2,352,000
$4,157,180
$6,509,190
primary funding: bonds

10. maryland ave improvements
$0
$480,000
$5,980,000
primary funding: bonds

11. solid waste management program
$510,000
$0
$5,891,000
primary funding: bonds

12. clear well replacement
$2,252,300
$3,158,940
$5,411,240
primary funding: bonds

13. city hall restoration
$0
$1,200,000
$4,546,910
primary funding: bonds

14. sixth st improvements
$0
$0
$4,400,000
primary funding: bonds

15. landfill gas mitigation
$350,000
$1,200,000
$4,250,000
primary funding: bonds

16. sewer rehabilitation
$800,000
$250,000
$4,205,000
primary funding: bonds

17. street lights and flowers on forest dr.
$0
$0
$3,147,000
primary funding: bonds with non-city match

18. vehicle replacement program
$0
$500,000
$3,000,000
primary funding: operating funds

19. taylor ave. improvements @ park place
$2,995,705
$0
$2,995,705
primary funding: bonds

20. water storage tank
$295,570
$2,434,080
$2,729,650
primary funding: bonds

21. hanover st reconstruction
$1,697,330
$646,670
$2,344,000
primary funding: bonds

22. water park that is not located in the city
$50,000
$110,000
$2,230,000
primary funding: bonds

23. green st reconstruction
$0
$0
$2,173,000
primary funding: non city funds

24. pump station replacements
$894,000
$1,262,000
$2,156,000
primary funding: bonds

25. slush fund to buy "open space" land
$1,539,000
$250,000
$2,039,000
primary funding: non city

26. gardening at Back Creek Naure Park
$1,619,290
$376,340
$1,995,630
primary funding: non city funds, but city still funds/funded almost $1 million

27. truxtun park improvements
$1,452,900
$65,490
$1,818,390
primary funding for remaining work: non-city funds

28. smithville and russell st improvements
$0
$0
$1,526,000
primary funding: bonds

29. office space renovation
$537,800
$973,000
$1,510,800
primary funding: bonds

30. truxtun park maintenance building
$0
$1,339,300
$1,339,300
primary funding: bonds

31. traffic signal improvements
$193,030
$0
$1,278,280
primary funding: bonds

32. harbormaster building
$25,000
$246,010
$1,252,060
primary funding: bonds

33. non-profit capital funding
$0
$435,000
$1,055,000
primary funding: bonds

34. landscaped median on hilltop ln
$0
$0
$890,000
primary funding: bonds

35. maynard burgess house restoration
$383,530
$488,980
$872,510
primary funding: bonds

36. water tank rehabilitation
$0
$517,200
$855,200
primary funding: bonds

37. watershed restorations
$100,000
$340,000
$710,000
primary funding: non-city funds

38. barbud ln reconstruction
$50,000
$655,000
$705,000
primary funding: bonds

39. connecting city trails to each other
$0
$0
$680,000
primary funding: operating funds


40. greenfield st relocation
$0
$0
$644,000
primary funding: non-city (the developer)

41. roof replacement program
$120,500
$240,000
$600,500
primary funding: bonds

42. restrooms at Germantown fields
$25,000
$500,000
$525,000
primary funding: equal bonds and non-city

43. filter valve controls
$472,000
$0
$472,000
primary funding: operating funds

44. irrigation of atheletic fields
$0
$100,000
$300,000
primary funding: non-city funds

45. multi-modal traffic mitigations
$0
$0
$300,000
primary funding: non-city funds

46. public works garage improvements
$271,000
$0
$271,000
primary funding: bonds

47. new water well
$600,000
$0
$150,000
primary funding: operating funds

48. kingsport park
$0
$0
$139,000
primary funding: non city

49. bulkhead evaluations
$120,000
$0
$120,000
primary funding: non-city funds

50. georgetown rd outfall maintenance
$8,000
$107,000
$115,000
primary funding: operating funds

51. flood control
$100,000
$0
$100,000
primary funding: operating funds

1 comment:

FOIAMAN said...

Wow. That's all I can say about this. Nice work.