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Item 9A - Memo3 M E M O R A N D U M February 10, 2025 To: Honorable Mayor and Council Members From: Alison Ortowski, City Manager Subject: Approving and adopting the FY 2025-2029 Capital Improvements Program. Action Requested: Approve and adopt the FY 2025 – FY 2029 Capital Improvements Program. Background Information: The purpose of this item is to seek City Council approval of the FY 2025 – FY 2029 Capital Improvements Program (CIP). In accordance with the Texas Local Government Code and the Charter of the City of Southlake, the proposed FY 2025 – FY 2029 Capital Improvements Program was presented to the City Council at the February 4, 2025, City Council meeting. The City of Southlake adopts a five-year CIP. A multi-year capital project plan provides a strategic advantage by offering a comprehensive roadmap for long-term infrastructure development, allowing for better resource allocation and budgeting over an extended period. This approach enhances project efficiency and stakeholder confidence, as it promotes continuity, minimizes uncertainty, and fosters a more informed decision - making process, ultimately ensuring the successful and timely completion of complex, phased initiatives. The City’s approach to capital budgeting continues to focus on a five- year plan, but the process of adopting a CIP changed with the FY 2024 budget. Previously, a detailed CIP was included as a part of the annual budget submitted to City Council prior to the beginning of the fiscal year. However, the process was adjusted in FY 2024 so that the City Council approved funding allocation for the CIP with the annual operating budget adopted in September. This separate proposal, the Capital Improvements Program, identifies specific projects for the five-year planning period. The proposal also offers details on each project and provides information on funding sources and types. The new approach of providing a distinct operating budget and Capital Improvements Program to City Council, on different schedules, enhances the focus and attention to the details of each. The first year of the CIP is referred to as the capital budget and is the only year of the multi-year project plan that receives funding allocation, through both cash and the issuance of debt. The remaining years shown in the plan are used for planning purposes only and do not receive expenditure authority until they are part of the capital budget that is considered by the City Council each year. CIP Development Process Southlake’s Capital Budget cycle begins in October with the submission of project proposals and concludes in February with City Council adoption. The City’s CIP Governance Committee, a cross-department group that is comprised of the Executive Leadership Te am and key department stakeholders, review submissions at the beginning of the process and evaluate and prioritize projects considering a variety of factors, including alignment established strategic priorities and CIP guiding principles, financial policies and goals, as well as asset management best practices. Their review: • Ensures timely construction and/or repair of city infrastructure to effectively meet ongoing community needs, as defined by the City’s strategic and comprehensive plans; and, • Establish a methodical approach to public infrastructure funding and construction to eliminate unanticipated, poorly planned, or unnecessary capital expenditures and to avoid sharp increases in tax rates, user fees, or debt; and, • Align public projects with community growth patterns and development, as defined by the City’s comprehensive plans. These factors provide a strong framework that ensures holistic decision- making and promotes long-term financial sustainability. The CIP provides a long-term plan for roadway, water, wastewater, parks and other critical capital projects. Ultimately, the proposed FY 2025 – FY 2029 CIP has been developed to achieve the following goals: • Strategic Alignment and High Quality Service Delivery; and, • Financial Sustainability and Community Resiliency; and, • Pay-As-You-Go Funding Maximized and Coupled with Strategic Use of Debt; and, • Multi-Year Sustainability. Capital Improvements Program – Capital Budget Funding For the FY 2025 Capital Budget, 30 projects were submitted by various departments utilizing funding from ten different funding sources, totaling $43,160,200 million. A total of $25,330,000 million in cash has been allocated as part of the CIP program, constituting 58% of the overall capital 5 budget. The proposed projects include funding for roadways and pathways at $14.618 million, water projects at $11.2 million, wastewater projects at $460,000, facilities projects totaling $5 million, park improvement projects at $6.9 million and community enhancement projects at $4.975 million. Financial Considerations: Various funding sources are available for capital project construction. For FY 2025, a total of $43,160,200 is programmed across thirty projects, utilizing funding from ten different funding sources. The following table shows the projects recommended for funding through the capital budget by fund and funding type. Fund Cash Funding Certificates of Obligation Bonds Third Party Funding Total Funding General Fund - FY 2025 Funding $3,500,000 $9,568,000 $0 $13,068,000 General Fund - Reallocation $3,400,000 $0 $0 $3,400,000 Utility Fund- FY 2025 Funding $8,000,000 $6,037,200 $0 $14,037,200 Utility Fund - Reallocation $2,000,000 $0 $0 $2,000,000 Roadway Impact Fee $225,000 $0 $0 $225,000 Water Impact Fee $380,000 $0 $0 $380,000 Storm Water Utility System $925,000 $0 $0 $925,000 Southlake Parks Development Corporation (SPDC) $6,000,000 $0 $0 $6,000,000 Park Dedication Fee $300,000 $0 $0 $300,000 Hotel Occupancy Tax Fund (HOT) $200,000 $0 $0 $200,000 Public Art Fund $400,000 $0 $0 $400,000 Tarrant County Bonds $0 $0 $2,225,000 $2,225,000 Total $25,330,000 $15,605,200 $2,225,000 $43,160,200 Strategic Link: F1 – Safeguarding the public trust through a commitment to thoughtful planning and responsible, conservative financial management. Citizen Input/ Board Review: The Southlake Parks Development Corporation and the Parks Board held a joint meeting on January 21, 2025, and recommended approval of the Proposed FY 2025 - 2029 SPDC Capital Improvements Program priorities. Legal Review: None required. Supporting Documents: Attachment A: CIP Guiding Principles, Attachment B: Capital Improvements Program – All Funds, Attachment C: Projects Proposed for FY 2025 -2029 Staff Recommendation: Approval of the FY 2025 - 2029 Capital Improvements Program 7 Item 9A Attachment A: Capital Improvements Program Guiding Principles Item 9A 6 4 Attachment B: Capital Improvements Program – All Funds Fund Total Prior Funding FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Beyond Total General Fund $72,928,274 $16,468,000 $13,236,250 $11,119,063 $10,818,891 $5,851,210 $78,842,121 $209,263,808 Utility Fund $43,950,630 $16,037,200 $10,056,500 $19,324,700 $15,165,000 $30,057,500 $75,514,000 $210,105,530 Roadway Impact Fee Fund $3,285,000 $225,000 $282,000 $296,100 $311,000 $327,000 $344,000 $5,070,100 Water Impact Fee $1,685,000 $380,000 $248,000 $206,000 $64,000 $923,000 $1,453,000 $4,959,000 Sanitary Sewer Impact Fee $1,201,500 $0 $110,000 $115,000 $181,000 $128,000 $1,410,000 $3,145,500 Storm Water Utility System $3,228,000 $925,000 $975,000 $1,000,000 $1,097,000 $1,000,000 $24,710,000 $32,935,000 Community Enhancement & Development Corporation Fund $1,616,000 $0 $325,000 $0 $0 $0 $0 $1,941,000 Southlake Parks Development Corporation $23,849,054 $6,000,000 $14,025,496 $6,000,000 $27,613,700 $22,892,560 $67,164,030 $167,544,840 Tax Increment Reinvestment Zone #1 $0 $0 $0 $0 $0 $0 $0 $0 Park Dedication Fund $0 $300,000 $300,000 $0 $0 $0 $0 $600,000 Hotel Occupancy Tax Fund $1,700,000 $200,000 $200,000 $0 $0 $0 $0 $2,100,000 CCPD Fund $410,000 $0 $0 $0 $0 $0 $0 $410,000 Public Art Fund $1,227,639 $400,000 $300,000 $300,000 $300,000 $100,000 $100,000 $2,727,639 Red Light Camera Fund $0 $0 $0 $0 $0 $0 $0 $0 Tarrant County Bond $0 $2,225,000 $0 $0 $0 $0 $0 $2,225,000 Grand Total All Funds $155,081,097 $43,160,200 $40,058,246 $38,360,863 $55,550,591 $61,279,270 $249,912,151 $643,402,417 Item 9A 5 Attachment C: Projects Proposed for FY 2025 – 2029 (Mobility) Project Number Funding Source Total Prior Funding FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Beyond / Unfunded Total PRECONSTRUCTION Mustang Court Industrial Area Access Improvements General Fund Storm Water Utility System Utility Fund Total $775,000 $1,200,000 $5,050,000 $0 $0 $0 $0 $7,025,000 Brumlow Avenue Widening from Continental Boulevard to State Highway 26 General Fund Roadway Impact Fee Fund Utility Fund Storm Water Utility System Total $0 $3,225,000 $300,000 $2,637,500 $2,637,500 $0 $23,550,000 $32,350,000 FM 1709 and Pearson Lane Intersection Improvements General Fund Roadway Impact Fee Fund Storm Water Utility System City of Keller Total $960,000 $0 $0 $0 $0 $0 $2,440,000 $3,400,000 Item 9A 6 Attachment C: Projects Proposed for FY 2025 – 2029 (Mobility) Project Number Funding Source Total Prior Funding FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Beyond / Unfunded Total State Highway 114 Ramp Reversal Design Community Enhancement & Development Corporation Fund Total $1,616,000 $0 $325,000 $0 $0 $0 $0 $1,941,000 City Roadway Intersection Capacity Improvements Roadway Impact Fee Fund Total $1,510,000 $0 $282,000 $296,100 $311,000 $327,000 $344,000 $3,070,100 CONSTRUCTION FM 1938 at West Continental Boulevard Intersection Improvements General Fund Roadway Impact Fee Fund Tarrant County Bond Total $4,985,000 $3,915,000 $90,000 $0 $0 $0 $0 $8,990,000 Continental Boulevard and South Peytonville Avenue Intersection Improvements General Fund Utility Fund Roadway Impact Fee Fund Storm Water Utility System Tarrant County Bond Total $4,010,000 $2,175,000 $90,000 $0 $0 $0 $0 $6,275,000 Item 9A 5 Attachment C: Projects Proposed for FY 2025 – 2029 (Mobility) Project number Funding Source Total Prior Funding FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Beyond / Unfunded Total North Carroll Avenue - Corridor General Fund Total $1,600,000 $470,000 $0 $0 $0 $0 $0 $2,070,000 Citywide Pathway Improvements General Fund Total $5,560,000 $100,000 $610,000 $970,000 $470,000 $930,000 $7,360,600 $16,000,600 Street Rehabilitation Required by Pavement Management Application (PMA) General Fund Total $15,652,746 $3,333,000 $3,675,000 $3,858,750 $4,051,688 $4,254,272 $4,466,985 $39,292,441 Street Rehabilitation Participation Program (Joint Project with Tarrant County) General Fund Total $3,640,058 $0 $131,250 $137,813 $144,703 $151,938 $159,535 $4,365,297 Traffic Calming Program General Fund Total $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $1,050,000 Item 9A 6 Attachment C: Projects Proposed for FY 2025 – 2029 (Mobility) Project number Funding Source Total Prior Funding FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Beyond / Unfunded Total MATCHING FUNDS Neighborhood Sidewalk Matching Funds Program General Fund Total $100,000 $50,000 $115,000 $115,000 $115,000 $115,000 $115,000 $725,000 FUTURE PROJECTS South Village Center Roadway Connector from Kimball Avenue to Nolen Drive General Fund Total $500,000 $0 $0 $0 $0 $0 $0 $500,000 Kirkwood Boulevard Connector from Carillon Phase 5 Terminus to the Highland / Kirkwood Intersection General Fund Total $0 $0 $0 $0 $0 $0 $14,600,000 $14,600,000 South Carroll Avenue Widening from Breeze Way to FM 1709 General Fund Total $0 $0 $0 $0 $0 $0 $15,175,000 $15,175,000 South Village Center Roadway Connector from west property line of Kimball Oaks to Southwood Way General Fund Total Mobility Total $41,058,804 $14,618,000 $10,818,250 $8,165,163 $7,879,891 $5,928,210 $77,411,121 $165,879,438 Item 9A 5 Attachment C: Projects Proposed for FY 2025 – 2029 (Water) Project number Funding Source Total Prior Funding FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Beyond / Unfunded Total PRECONSTRUCTION T.W. King Pump Station #2 Buildout Phase II Utility Fund Water Impact Fee Total $540,000 $0 $1,840,000 $0 $0 $22,960,000 $0 $25,340,000 Repainting of the Dove Elevated Storage Tank Utility Fund Total $0 $490,000 $3,275,000 $0 $0 $0 $0 $3,765,000 Alta Vista Line Water Line Replacement Utility Fund Total $3,600,000 $0 $3,487,500 $11,487,500 $10,150,000 $7,250,000 $0 $35,975,000 Item 9A 6 Attachment C: Projects Proposed for FY 2025 – 2029 (Water) Project number Funding Source Total Prior Funding FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Beyond / Unfunded Total Upsize existing 6-inch to 12- inch Water line along East Highland from Blythe Lane to North Kimball Avenue [Previously named “12- inch Water line along East Highland Street from North Carroll Avenue to North Kimball Avenue”] Utility Fund Water Impact Fee Total $825,000 $0 $200,000 $2,225,000 $0 $0 $0 $3,250,000 CONSTRUCTION T.W. King Pump Station #2 Buildout Phase I Water Impact Fee Storm Water Utility System General Fund Utility Fund Total $10,133,800 $5,341,200 $0 $0 $0 $0 $0 $15,475,000 Repainting of the Florence Elevated Storage Tank Utility Fund Total $400,000 $2,745,000 $0 $0 $0 $0 $0 $3,145,000 Item 9A 5 Attachment C: Projects Proposed for FY 2025 – 2029 (Water) Project number Funding Source Total Prior Funding FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Beyond / Unfunded Total Miron Elevated Storage Tank AWIA Improvements Utility Fund Total $0 $100,000 $0 $0 $0 $0 $0 $100,000 Pump Replacement at Pearson Pump Station Utility Fund Total $241,000 $431,000 $464,000 $487,200 $0 $0 $0 $1,623,200 12-inch Water line along Randol Mill Avenue from Morgan Road to Dove Road General Fund Utility Fund Water Impact Fee Total $1,300,000 $2,100,000 $0 $0 $0 $0 $0 $3,400,000 MATCHING FUNDS System Capacity Improvements (Water) - Future Projects Water Impact Fee Total $1,385,000 $0 $48,000 $56,000 $64,000 $73,000 $82,000 $1,708,000 FUTURE PROJECTS Pearson Pump Station Risk and Resiliency Improvements (AWIA/SB3 Project) Utility Fund Total $0 $0 $160,000 $0 $0 $0 $8,450,000 $8,610,000 Item 9A 6 Attachment C: Projects Proposed for FY 2025 – 2029 (Water) Project number Funding Source Total Prior Funding FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Beyond / Unfunded Total Repainting of the Bicentennial Park Storage Tank Utility Fund Total $0 $0 $605,000 $3,075,000 $0 $0 $0 $3,680,000 20-inch T.W. King water transmission main along Kirkwood Boulevard and Dove Road Utility Fund Total $0 $0 $0 $2,200,000 $0 $0 $21,100,000 $23,300,000 T.W. King Pump Station #2 Buildout Phase III Utility Fund Total $1,500,000 $0 $0 $0 $1,625,000 $0 $21,775,000 $24,900,000 Interconnection with City of Colleyville Utility Fund Total $413,000 $0 $0 $0 $0 $0 $710,000 $1,123,000 New Grapevine Emergency Interconnect (AWIA/SB3 Project) Utility Fund Total $0 $0 $0 $0 $0 $0 $875,000 $875,000 Item 9A 5 Attachment C: Projects Proposed for FY 2025 – 2029 (Water) Project number Funding Source Total Prior Funding FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Beyond / Unfunded Total "[Previously named "12- inch Water line along Shady Oaks Drive from Highland to West Dove Road and 8-inch Sewer (Phase II)"] Utility Fund Water Impact Fee General Fund Total $0 $0 $0 $0 $0 $0 $16,075,000 $16,075,000 8-inch Water line along E. Bob Jones Road to Walnut Brooks Court Utility Fund Water Impact Fee Total $0 $0 $0 $0 $0 $0 $2,450,000 $2,450,000 8-inch Water line from Walnut Grove Terminus to E. Bob Jones Dog Park Utility Fund Water Impact Fee Total $0 $0 $0 $0 $0 $0 $4,325,000 $4,325,000 Water Total $20,337,800 $11,207,200 $10,079,500 $19,530,700 $11,839,000 $30,283,000 $75,842,000 $179,119,200 Item 9A 6 Attachment C: Projects Proposed for FY 2025 – 2029 (Wastewater) Project Number Funding Source Total Prior Funding FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Beyond / Unfunded Total PRECONSTRUCTION Shady Lane Lift Station, Lonesome Dove Lift Station and Wastewater Risk and Resiliency Improvements (AWIA/SB3 Project) Utility Fund Total $2,510,000 $300,000 $0 $0 $0 $0 $0 $2,810,000 Eagle Bend & Strathmore Sanitary Sewer Reconstruction Utility Fund Total $200,000 $0 $0 $0 $775,000 $0 $0 $975,000 East Highland/ Kimball 8-inch Sewer Line Sanitary Sewer Impact Fee Utility Fund Total $220,000 $0 $0 $0 $2,675,000 $0 $0 $2,895,000 CONSTRUCTION Lift Station Pump Replacement Utility Fund Total $246,000 $160,000 $0 $0 $0 $0 $0 $406,000 Item 9A 5 Attachment C: Projects Proposed for FY 2025 – 2029 (Wastewater) Project Number Funding Source Total Prior Funding FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Beyond / Unfunded Total Sanitary Sewer Infrastructure Erosion Protection Utility Fund Storm Water Utility System Total $2,885,000 $0 $0 $0 $0 $295,000 $1,300,000 $4,480,000 MATCHING FUNDS System Capacity Improvements (Sewer) - Future Projects Sanitary Sewer Impact Fee Total $981,500 $0 $110,000 $115,000 $121,000 $128,000 $135,000 $1,590,500 FUTURE PROJECTS 15-inch Sewer Line in Basin N-12 and N-12a Sanitary Sewer Impact Fee Utility Fund Total $0 $0 $0 $0 $0 $0 $3,100,000 $3,100,000 Wastewater Total $7,042,500 $460,000 $110,000 $115,000 $3,571,000 $423,000 $4,535,000 $16,256,500 Item 9A 6 Attachment C: Projects Proposed for FY 2025 – 2029 (Storm Water) Project Number Funding Source Total Prior Funding FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Beyond/ Unfunded Total PRECONSTRUCTION Morgan Road Drainage Improvements Total $228,000 $0 $0 $0 $597,000 $0 $0 $825,000 CONSTRUCTION Drainage improvements at North Peytonville from 1330 North Peytonville to Post Oaks Creek Storm Water Utility System Total $450,000 $0 $0 $0 $0 $0 $7,240,000 $7,690,000 South Fork Kirkwood Branch at West Dove Road Storm Water Utility System Total $0 $0 $0 $0 $0 $0 $2,250,000 $2,250,000 Indian Creek Lake Grapevine at T.W. King Road Storm Water Utility System Total $0 $0 $0 $0 $0 $0 $1,500,000 $1,500,000 West Jones Branch at Shady Lane Storm Water Utility System Total $0 $0 $0 $0 $0 $0 $720,000 $720,000 Item 9A 5 Attachment C: Projects Proposed for FY 2025 – 2029 (Storm Water) Project Number Funding Source Total Prior Funding FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Beyond / Unfunded Total Higgins Branch at Plantation Drive Storm Water Utility System Total $0 $0 $0 $0 $0 $0 $1,375,000 $1,375,000 Big Bear 8 at West Continental Boulevard Storm Water Utility System Total $0 $0 $0 $0 $0 $0 $5,250,000 $5,250,000 Dove Creek at North Carroll Avenue Storm Water Utility System Total $0 $0 $0 $0 $0 $0 $2,300,000 $2,300,000 Big Bear 6 at East Continental Boulevard Storm Water Utility System Total $0 $0 $0 $0 $0 $0 $3,975,000 $3,975,000 FUTURE PROJECTS Dove Creek at East Dove Road Storm Water Utility System Utility Fund Total $0 $0 $975,000 $1,000,000 $500,000 $1,402,500 $0 $3,877,500 Storm Water Total $678,000 $0 $975,000 $1,000,000 $1,097,000 $1,402,500 $24,610,000 $29,762,500 Item 9A 6 Attachment C: Projects Proposed for FY 2025 – 2029 (Parks) Item 9A 5 Attachment C: Projects Proposed for FY 2025 – 2029 (Parks) Project Number Funding Source Total Prior Funding FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Beyond / Unfunded Total CONSTRUCTION Annual Park Enancements - Athletic Fields Turf Conversion - Phase 2 SPDC Bob Jones Nature Center and Preserve - Barn - Phase 2 SPDC MATCHING FUNDS SPDC Matching Funds SPDC FUTURE PROJECTS Bob Jones Park Improvements SPDC Liberty Park at Sheltonwood Improvements SPDC Item 9A 6 Attachment C: Projects Proposed for FY 2025 – 2029 (Parks) Item 9A 5 Attachment C: Projects Proposed for FY 2025 – 2029 (Parks) Item 9A 6 Attachment C: Projects Proposed for FY 2025 – 2029 (Community Enhancements) Item 9A 5 Attachment C: Projects Proposed for FY 2025 – 2029 (Facilities)