Title
Briefing on the Preliminary Capital Facilities Plan (CFP)
Recommended Action
Committee Recommendation:
The Finance Committee had a briefing on June 24. No recommendation made.
City Manager Recommendation:
Receive briefing, and concur with forwarding the Preliminary CFP to the Planning Commission for review and comment.
Report
Issue:
The City Council will receive a briefing on the Preliminary CFP.
Staff Contact:
Jane Kirkemo, Administrative Services Director, 360.753.8499
Presenter(s):
Jane Kirkemo, Administrative Services Director
Jennifer Priddy, Olympia School District Assistant Superintendent
Background and Analysis:
The City Manager is required to present a six-year Capital Facilities Plan (CFP) to the City Council for adoption. The CFP must be balanced (revenues received realistically pay for proposed projects). Such planning involves determining when and where the facilities will be needed, and how much they will cost to construct and maintain.
Since the City of Olympia collects impact fees for the Olympia School District (OSD), their CFP must be incorporated into our CFP document before final adoption. Their CFP will not be available until later this month. The OSD must reflect the State mandated all-day kindergarten and reduced class size. Their CFP will be available for the Planning Commission public hearing on Aug 4. In addition, any County projects within the Olympia boundaries or the Urban Growth Management Area (UGMA) will be included in the final document for reference.
The six-year plan is significantly larger than the current plan (17%). The increase is in the drinking water - up almost $20 million compared to the current plan.
The Preliminary CFP assumes 100% of the REET (Real Estate Excise Tax) money will be spent on capital projects. As the operating budget progresses, the Council could choose to use some portion of REET funds to balance the operating budget.
The CFP goals and policies are included in the CFP. The policies have been edited for "plain talk;" however, no substantive changes have been made. The Planning Commission (PC) will be reviewing the goals and policies as well as the projects.
Copies of the Preliminary CFP will be distributed to Councilmembers at the meeting, and posted on the City's website (olympiawa.gov) for online access and viewing the morning of July 16.
Neighborhood/Community Interests (if known):
Comments are welcome from all members of the public throughout the review process.
As in past years, Olympia advisory committees and the Coalition of Neighborhoods are encouraged to review and comment on the draft CFP throughout the process (hyperlink to process schedule is attached).
Options:
Receive the briefing and forward to the Planning Commission for review and comment.
Staff and a representative from the Olympia School District will be available to answer questions.
Financial Impact:
The 2015-2020 CFP is $142.5 million. The 2015 budget is $21.7 million. By far, the most significant increase is the Drinking Water. Staff and the Utilities Advisory Committee (UAC) are still reviewing the plan and preparing a financial analysis. The Committee will probably push some of the project out beyond the six-year horizon.
The Preliminary CFP includes applying the Utility Tax to cable TV. This does not apply to DISH Network or other internet providers. It will increase the average Comcast customer's bill by approximately $5 per month. Following the Planning Commission public hearing on the CFP, staff will bring an ordinance to the Council applying the Utility Tax to cable. If Council adopts the ordinance it would go into effect in January 2015.