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INFORMAL REPORT TO CITY COUNCIL MEMBERS No.- 7929
-40 To the Mayor and Members of the City Council June 20, 1995
Subject: PLANNING FOR ANTICIPATED STREET NEEDS
Recent capital improvement bond elections have focused on neighborhood street needs and have
programmed only modest allowances for improvements to major arteries and for City
participation in state and federal projects. These allowances are not adequate to satisfy either
existing funding commitments or projected long term needs.
Five capital projects funds from pre-1986 bond elections have surplus balances totaling $16.4
million, primarily because they were encumbered for community facilities agreements to
reimburse developers for street and drainage work within new developments. The development
did not occur, and the agreements have now expired,making the funds available for other uses.
Historically, such surplus monies have been used to finance the City's share for state and federal
projects, to provide a contingency for possible cost overruns in current bond programs, to
provide financial flexibility permitting the scheduling of bond sales to the City's advantage, and
to fund projects that result from emergency situations. All such expenditures require City
Council approval, but the approval is solicited on a piecemeal basIs as the needs occur. There
has not been an articulated policy for the use of surplus bond funds.
In order to develop such a policy, staff has identified available funds from the five street
improvement funds and has assessed various options for their use.
AVAILABLE PRE-19 8 6 BOND FUNDS AND ALTERNATIVE USES
Attachment A lists the balances in the five pre-1986 street improvement bond funds as well as
the remaining uncompleted cornmitments authorized by the voters. These funds have much more
flexibility relative to the timing of their use than funds obtained from bond sales after the 1986
Tax Reform Act with its accompanying arbitrage regulations. Since the bonds were voted for
street construction, however, they can only be expended on streets or retirement of street
construction debt.
Staff has evaluated three viable uses for these funds:
1. Tax Reduction-These funds could be applied to the,debt service, thereby reducing the
amount of the annual transfer from the General Fund for principal and interest payments on
outstanding bonds. Assuming that the remaining authorized bonds are sold over the next three
years as scheduled, this reduction in General Fund debt commitment would permit a 3 cent
reduction in the property tax in FY 96, an additional 2 cent reduction in FY 97, and another
reduction in FY 01. This scenario does not, however, provide for any additional dght-ftir"'
unprograrm-ned needs or future bond elections.
ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7929
To the Mayor and Members of the City Council June 20, 1995
Page 2 of 3
Subject: PLANNING FOR ANTICIPATED STREET NEEDS
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2. Pay-as-You-Go Capital Program - As an alternative to tax reduction, the General Fund dollars
displaced from debt service could be utilized for phasing into a construction program financed
from current revenue rather than borrowed funds. A program of this nature, particularly for the
replacement of deteriorated infrastructure, has many advantages; however, under the current
amortization schedules, cash funding of a$20 million annual construction program would not be
possible until the year 2003. Further, any abrupt shift of funds from debt service (which is
protected under state property tax laws) to operating funds would drive the effective tax rate
above the rollback rate.
3. Avoidance of Additional Debt - The City has street construction needs and commitments in
excess of funds available from recent bond elections. The pre-1986 funds can be used to finance
a good portion of this work, allowing the City to avoid having to incur additional debt in order to
meet these commitments to the state and to the voters.
STREET CONSTRUCTION COMMITMENTS AND ANTICIPATED NEEDS
Staff has identified the following areas where street construction fund will be needed before the
next capital improvement bond election:
1. State and Federal Projects - Over the next five years, $2.8 million will be needed for the
City's share of state and federal projects to which the City has made some commitment, in
addition to the $4.4 million reserved for this purpose in the Assessment Paving Revolving Fund.
Attachment B lists these projects. Other projects beyond the five-year window will need future
funding.
2. Contingency for Current Capital Improvement Programs - Based on revised projections for
1986, '90, and '93 CIP's, an additional $7.6 million may be needed to complete projects
approved by voters. Costs may be greater than initial estimates; inflationary factors are present.
Attachment C shows proposed contingencies for engineering and construction. In addition, $2.1
million is included to offset funds which would have been provided from CDBG funds for target
area streets.
3. Arterial Streets and Related Traffic Safety Projects - Only two arterial streets were included in
the 1993 CIP. Attachment D lists 19 needed but unfunded arterial street projects. Staff
recommends that$5 million be earmarked for arterial streets and related traffic safety projects
such as sidewalk construction and the elimination of street bottlenecks.
4. Projects in Developing Areas - The 1993 CIP provided only $2.5 million for new
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7929
To the Mayor and Members of the City Council June 20, 1995
Page 3 of 3
XAS Subject:
1873 PLANNING FOR ANTICIPATED STREET NEEDS
development. Development policies have not been revised to reduce the City participation in
development costs as had been anticipated; therefore, staff recommends that $1.0 million be
reserved for this use.
RECOMMENDED POLICY FOR UTILIZATION OF SURPLUS BOND FUNDS
Since the City is committed to participate in a number of state/federal projects, has committed to
the voters that projects approved in the 1986, '90, and '93 Capital Improvement Programs will be
constructed, and is periodically called upon to finance unanticipated infrastructure needs, it is
recommended that existing surplus bond funds be utilized to avoid additional debt for meeting
the following needs (actual amounts may vary):
1. Match for state and federal projects $2,800,000
2. Contingency for 1986-93 Capital Improvement Programs 7,600,000
3. Arterial streets and related traffic safety projects 5,000,000
4. Projects in developing areas 1,000,000
Total $16,400,000
This proposal has been reviewed and endorsed by the Inter and Infra Governmental Affairs
Committee. If Council concurs, a formal recommendation will be submitted for approval.
Should additional information be required, it will be provided upon request.
Bob Terrell
City Manager
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DFRCIAL RECORD
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ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS
ATTACHMENT A
Capital Improvement Bonds
Band Issue Fund Balance
(Unspecified Projects)
FUND 13 (PRE-1978) $565,863
FUND 21 (1978) 2,125,663
FUND 28 (1978) 157,685
FUND 29 (1980) 5,642,495
FUND 30 (1982) 7,816,333
TOTALS $16,399,039
NOTE: Voted funds from the 1982 CIP in the amount of$2,466,925 are reserved for
the East 1st Bridge ($1,195,126), Railroad crossings ($277,799), Grove
Avenue ($775,000), and Sidewalk Reimbursements ($219,000) and are not
included in the $16,399,039 total.
ATTACHMENT B
STATE MATCHING PROJECTS:
Pending State Projects to be under construction within the next five years and
with City share to be funded or partially funded from the Revolving Fund:
135W Frontage Roads at Hillwood (11/97) $1,102,000
1-820/Beach Interchange (3/96) 1,500,000
N. Beach at Railtran (11/97) 1,000,000
Lancaster Avenue Bridge (6/96) 1,000,000
Cooks Lane Bridge (11/96) 83,408
Northside Drive Bridge (RR) (6/96) 261,615
Samuels Avenue Bridge (Trinity) (12/94) 93,900
Added State Bridge Rehab Projects (5 years) 500,000
NE Tarrant Parkway (9/96) 650,000
CMAQ Intersection Revisions (5 years) 1,000,000
SUBTOTAL $7,190,293
TO BE FUNDED FROM REVOLVING FUND BALANCE: 4,410,870
BALANCE - TO BE FUNDED FROM 1978-82 BONDS: $2,780,053
ADDITIONAL ANTICIPATED NEEDS:
1. City expenses related to development of SH 121 (Southwest Freeway).
2. Extension of Basswood Blvd. From 135W to Riverside Drive in conjunction with
Western Center/Basswood Blvd. Interchange Improvement project (ISTEA
Demonstration Project).
3. Known projects beyond five-year time frame: Trinity Blvd, - Bedford Arlington Road
to FM 157 ($1,000,000 city share cost), Rosedale - 135W to US 287 ($2,050,000 city
share cost), E. Vickery Blvd. - Main Street to US 287 ($1,775,000 city share cost).
4. Joint County/City reconstruction projects.
7 6FIRIAL RECORD ,
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ATTACHMENT C
Engineering and Construction Contingencies
1986, 1990 & 11993 C.I.P.Is
1. 1986 C.I.P. (Engineering Services)
$4,000,000± yet to be advertised.
3% for additional design services
and 9% for construction inspections,
testing and administration. $500,000
2. 1990 C.I.P. (Engineering Services)
Engineering cost projected to run 18%
of construction cost. $17,813,000 x 18% $3,206,340
$3,206,340 - $2,187,000 (1990 C.I.P.) 1,109,000
3. 1993 C.I.P. (Engineering Services)
1 st Year Work Program & 2nd Year Work Program
to be designed by Private Consultants. Estimates in
1993 C.I.P. based on 16% for Engineering Services,
actual costs projected to run 18%.
Thus, $42,000,000±x 2% = 840 000
Total $2,449,000
Call $2,500,000
4. 1986 C.I.P. (Construction)
Remaining construction work projected
to be completed within available funds.
5. 1990 C.I.P. (Construction)
$14,700,000± (work yet to be advertised) x 7% (inflation factor) 1,000,000
6. 1993 C.I.P. (Construction)
$42,000,000± (work yet to be advertised) x 5% (inflation factor) 2,000,000
Total Contingencies $5,500,000
ATTACHMENT D
ARTERIAL STREET PROGRAM
Gaps Estimated Cost
1 Everman Parkway - Butterwick to 1-35W
New Construction. Extend existing 60' roadway
flaring to a divided 36' roadway section approx.
5,500' connecting to existing Sycamore School Rd.
east of I-35W, includes railroad crossing and
bridge over Sycamore Creek. $4,500,000
2. Basswood Blvd. - West of Riverside Dr. to 1-35W
New construction. Extend existing double 26' roadways
approx. 3,000' connecting to 1-35W, includes bridges
over creek. 2,342,000
3. Riverside Dr. - Western Center Blvd. North 820'
New construction. Extend existing 26' S/B roadway
approx. 820' to Western Center Blvd.
4. N. Beach St. - No. of Western Center Blvd, to South
of Basswood Blvd. New construction. Extend existing
36' N/B roadway approx. 2,750' connecting with completed
sections at Basswood and Western Center Blvd. following
Kroger construction. 432,700
5. McCart St. - 960' So. Of Columbus Tr. to 1,980' So. of
Columbus Tr. New construction. Extend existing 36' N/B
roadway approx. 1,020'. 160,500
6. Meacham Blvd. - Dean Rd. to 1,200' west of 1-35W
New construction. Extend existing 36' E/B roadway
approx. 2,600' connecting with complete sections
west of 1-35W and west of Dean Rd. Extensive storm
drainage required, 572,700
Reconstruction
7. N. Beach St. - 1-820 to Meacham Blvd. OFFMAL RECORD
Reconstruct existing 36' S/B roadway. C11Y SECRETARY
Approx. length 5,400'. r EX 1,020,000
FT., WORTH, T
8. Meacham Blvd. - 1-35Mo Mark IV Parkway
01�1 Reconstruct existing 36' W/B roadway.
Approx. length 2,400'. 453,200
9. N. Main St. -Terminal Rd. To North end of
Meacham Airport. Reconstruct outer two lanes of
pavement. Design complete. 325,000
10. N. Beach St. - 1-30 to Lawnwood 11"Ni
Reconstruct existing 48' roadway.
Approx length 3,960'. 1,163,000
11. Everman Parkway - Oak Grove to east City Limit Line
Reconstruct existing divided roadway and provide
divided 26' roadways. Approx length 4,560'.
Est. Cost - $1,175,000; City Share - $600,000. 600,000
12. Camp Bowie Blvd. - Hulen to Prevost
Reconstruct existing double 27' brick roadway.
Approx. length 4,450'. 2,000,000
13. Camp Bowie Blvd. - University Dr. to Boland
Reconstruct existing double 25' brick roadway.
Approx. length 1,560'. 500,000
14. Mitchell Blvd. - E. Berry St. to MLK Freeway
Reconstruct existing 54' roadway.
Approx. length 2,150'. 660,000
15. Miller Ave. - Mansfield Hwy. to Brookline and
Fairlane to Martin. Reconstruct existing 60'
roadways. Approx. length 4,300'. 1,466,000
16. Wilbarger St. - MLK Freeway to Pate
Reconstruct existing 60' roadway.
Approx. length 1,200'. 409,000
17. Stalcup Rd.. - Fitzhugh to Ramey
Reconstruct existing 40' roadway.
Approx. length 1,050'. 239,000
Widen and Upgrade to City Standards
18. Wilbarger St. - Carey Rd. to 1-820
Widen and construct 60' roadway.
Approx. length 1,850'. 680,000
19. W.J. Boaz Rd. - Boat Club to Old Decatur
Widen and construct 36' roadway. Approx. length
10,800'. Approximately 60%of road is in Fort Worth.
$2,378,989 x 60% 1,427,000
Total $19,043,300