Mayor, Council begin $340.8 million CIP discussions

Feb. 12, 2020

When presenting the 2020 Proposed Capital Improvement Program to Mayor Scott LeMay and the Garland City Council, City Manager Bryan Bradford said this $340.8 million CIP is the city’s largest ever. It represents a $61.1 million increase over the 2019 CIP. The plan, if adopted as is, would result in rate hikes in water, wastewater and trash collection totaling $1.61.

 

The goal of the 2020 CIP, according to staff is: “to enhance the economic viability and quality of life for the Garland community by: the implementation of the 2019 bond program in seven years and the expedition of the completion of the remaining 2004 bond program projects.”

 

Staff explained that it is a five-year plan that includes public works, infrastructure, utility infrastructure, municipal facilities and large or specialized equipment.

 

The following criteria are required to qualify for CIP:

 

  • Must be a capital asset
  • Must have useful life of at least five years
  • Cost must exceed $25,000, or preferably $50,000

 

A CIP should be viewed from a multi-year perspective. The program includes planned projects for five years and the expected costs, along with the method of financing and estimated tax and utility rate impacts. It is important to note that the capital budget provides funding for the first year but CIP projects might span multiple years. Approving a project in the first year can create an obligation to issue additional debt in year two for completion of the project.

 

The CIP is divided into three categories:

 

Tax supported projects                 $129.4 million

Internal service projects               $1.5 million

Utility supported projects             $209.9 million

                                                         ____________

Total 2020 proposed CIP              $340.8 million

 

 

Tax supported program areas:

 

Street/Transportation                      $53,763,000

Parks                                              $23,935,000

Drainage                                         $13,769,000

Economic Development                  $10,627,000

Public Safety                                   $9,529,000

Landfill/Transfer Station                  $7,549,000

Facilities & Equipment                    $7,209,000

Library                                            $2,981,000

___________

$129,362,000

 

Utility & Internal Service program areas:

 

Electric Utility                                    $98,544,000

Wastewater Utility                             $68,477,000

Water Utility                                      $39,939,000

Environmental Waste Services        $2,695,000

Information Technology                    $1,465,000

Stormwater Mgmt. Utilities               $273,000

___________

$211,393,000

 

In 2020, the 2004 bond program is expected to be 76.1% finished. In 2024, it should be 97.6% complete.

 

At the end of 2020, the 2019 bond program is anticipated to be 7.1% complete. In 2024, it is expected to be 85.5% complete.

 

The proposed 2020 CIP would require the following increases:

 

Water – residential – 63 cents per month

Wastewater – residential – 79 cents per month

Trash collection – 19 cents per month

Electric rates – no increase

Stormwater rates – no increase

 

CIP review calendar:

 

Monday, Feb. 17 – Council discussion

Tuesday, Feb. 18 – Public hearing

Monday, March 2 – Council deliberations

Tuesday, March 3 – Public hearing and adoption of CIP

 

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