2016 Executive Capital Budget

Tuesday, September 1, 2015 - 2:58pm

Mayor Paul Soglin

The 2016 Executive Capital Budget and 2017-2021 Capital Improvement Plan [CIP] reflects the continuing need to replace aging infrastructure while investing limited financial resources in affordable housing, economic growth, and services to the City’s diverse population. The increasing capital investment needs have been identified in previous capital improvement plans and are coming due over the next five years.

Agency requests and reauthorizations of prior year general obligation borrowing for 2016 totaled nearly $200 million. The property taxes necessary to service this level of debt and potential added operating costs is not sustainable.

This executive capital budget reduces these requests by nearly $70 million, with a focus on a few key criteria – projects that are in or near the construction phase, projects that are using federal matching funds, critical infrastructure rehabilitation needs, and investments in improving racial equity and social justice in allocation of City resources.

General obligation borrowing is approximately $14 million less than in the 2015 capital budget – and is $24 million lower if short-term TID 25 cash flow debt is excluded. Many projects have to be delayed, including neighborhood centers, public safety facilities, reconstruction of Monroe Street, and a biodigester. These projects are important, but must be balanced against all City priorities, including the debt service impacts on the overall City budget.

Key equity investments identified by Neighborhood Resource Teams and funded in this capital budget include: $6 million in 2016 [$24 million in CIP] for affordable housing, $1.5 million for a new shelter at Penn Park, $2.65 million to reconstruct McKenna Boulevard, including safer pedestrian access to Elver Park, and $350,000 in 2016 [$1.85 million in CIP] for Healthy Food development in underserved neighborhoods.

Other priority investments include, $7.8 million in 2016 [$15.9 million in CIP] for public safety radio system improvements and equipment, $4.8 million in 2016 [$29 million in CIP] for renovation of the landmark Municipal Building, $1.8 million in 2016 [$14.8 million in CIP] for Emerald Ash Borer response, $600,000 in 2016 [$3 million in CIP] for development of cooperative business enterprises, $10 million in 2016 [$35 million in CIP] for a satellite bus maintenance and storage facility contingent on federal support, $55,000 in 2016 [$10.7 million in CIP] for a new Pinney Branch library, $25 million in 2016 [$31 million in CIP] for new parking ramps as part of the Judge Doyle Square project and new development in the rapidly growing Capitol East District, $1.5 million in City funding for the Starting Block innovation space, continued expansion of bike paths in conjunction with major roadway expansions, replacement of pavement around the Capitol Square, and major investments in traffic capacity along Highway M.

These investments will increase the annual funding level for capital projects over the next few years. The executive capital budget includes the following overall amounts for 2016. Additional funding information can be found in the attached tables and graphs.

Total funding in 2016 = $295.0 million
General Obligation Debt= $133.7 million
New Projects= $96.9 million
Reauthorized Funding= $36.8 million
Other Funding= $161.3 million
New Projects= $133.1 million
Reauthorized Funding= $28.2 million