County Manager’s Report

May 13, 2014

County Manager’s Report

May 13, 2014

Presentation AgendaPresentation Agenda

1 Proposed CIP1. Proposed CIP

2 St t U d t2. Streetcar Update

3. Public Land for Public Good

2

FY 2015 2024 ProposedFY 2015 – 2024 ProposedCapital Improvement Plan p p

3

Proposed CIP – Investing in Arlington’s FutureProposed CIP Investing in Arlington s Future

• Builds off extensive investments & successes of last 1010 years

• Investments in:– Livable & safe neighborhoodsLivable & safe neighborhoods– Quality of life– Effective service delivery

H l i th i d– Helping those in need– Core infrastructure– Economic competitiveness– Quality public education

• Achieved through balance of maintaining what we have & new investments in our future

4

have & new investments in our future• Financially responsible & sustainable

County Facilities

Crystal City & Columbia

C t C it l N d

Pike Initiatives Parks & Recreation

County Capital Needs$2.7 Billion

FY 2015-2024 10-Year PlanMetro

TechnologyMetro

(WMATA)

Transportation & Roads

Maintenance Capital

Stormwater & Utilities

Program CategoriesProgram CategoriesFY 15 - FY 24

Transportation 858,183

Parks and Recreation

7%Public/Government

Crystal City Streetcar 227,389

Columbia Pike Streetcar 286,703

Metro 225 650

Crystal City Streetcar

8%

Columbia Pike Streetcar11%

Metro8%

Public/Government Facilities

9%

Information Technology & Public 

Safety5%

Metro 225,650

Parks and Recreation 182,312

Public/Government Facilities 244,048

I f i T h l & P bli S f 146 665

Transportation32%

Regional Partnerships & Contingencies

2%

Community Conservation & Information Technology & Public Safety 146,665

Regional Partnerships & Contingencies 45,942 Community Conservation & Economic Development 97,148

Conservation &Economic 

Development4%

Water and Sewer Infrastructure

12%Stormwater M t

p

Subtotal County Capital 2,314,040

Water and Sewer Infrastructure 317,734

Stormwater Management 61 280

Management2%

Does not reflect Schools’ Proposed CIP

6

Stormwater Management 61,280

Total County Capital 2,693,054

Funding CategoriesFunding CategoriesFY15-24

New FundingState/Federal Funding 420,321 D l C t ib ti 95 502Developer Contributions 95,502 General Fund GO Bond 588,460 Utilities GO Bond 14,000 PAYG 472,574 Master Lease 76 938

Utilities GO Bond1% PAYG

18%

Master Lease3%

Sanitary District Tax2%

Other Funding4%

Transportation Capital Fund Master Lease 76,938

Sanitary District Tax 42,440 Other Funding 104,346 Transportation Capital Fund (TCF)-C&I 177,618 TCF - HB2313 Local 127 560

General Fund GO Bond22%

(TCF)‐C&I7%

TCF ‐ HB2313 Local5%

TCF ‐ HB2313 Regional

4%TCF HB2313 Local 127,560 TCF - HB2313 Regional 104,639 TCF Bonds 114,123 Tax Increment Financing (TIF) 29,282 TIF Bonds 22,616

State/Federal Funding16%

Developer Contributions

4%

4%TCF Bonds4%

Tax Increment Financing (TIF)

1%TIF Bonds1%

Iss ed b tOther Previously,Subtotal New Funding 2,390,419 Previously Approved FundingAuthorized but Unissued Bonds 29,664 Issued but Unspent Bonds 21,934

Authorized but Unissued Bonds

1%

Issued but Unspent Bonds

1%

Other Previously Approved Funds

9%

7

pOther Previously Approved Funds 251,037 Subtotal Previously Approved Funding 302,635 Total Funding Sources 2,693,054

Investments in Livable & Safe N i hb h d 10 Y f PNeighborhoods – 10 Years of Progress

Fire Stations 3 (2011) Fire Apparatus Replacements (5 in 10 years) & Computer Aided Dispatch work stations (2012)Computer Aided Dispatch work stations (2012)

8Computer Aided Dispatch work stations (2012)Police & Sheriff Mobile Data Computers (2012, 2013)

Investments in Livable & Safe NeighborhoodsP d N I t tProposed New Investments

New Fire Station 8• Planning begins in next 2 years• $25.1 M in FY17-19• Based on response

time/coverage study

Public Safety Technology - $69.0 M over 10 yearsy

• Radios - $13.2 M• Fire Station Alerting System -

$9

$3.2 M

Investments in Livable & Safe NeighborhoodsP d N I t tProposed New Investments

Neighborhood Conservation - $93.5 M

Before After

10N. Piedmont Street – 5th St N. to 6th St North

Investments in Livable & Safe NeighborhoodsProposed New InvestmentsProposed New Investments

Complete Streets $402.7 M

Columbia Pike

Jefferson Davis Transit $813.6 M

Maintenance $133 1 M

R l

Maintenance Capital $133.1 M

11FY2015-2024 CIP Program

Rosslyn-Ballston County Wide

Investments in Livable & Safe NeighborhoodsProposed New InvestmentsProposed New Investments

Paving Program - $128 M WalkArlington - $12.8 M

Neighborhood CompleteNeighborhood Complete Streets - $9.7 M

12Safe Routes to School - $1.1 M

BikeArlington - $14.2 M

Investments in Natural Resources & Quality of Life –Ten Years of ProgressTen Years of Progress

Virginia Highlands Sprayground (June 2013)Barcroft Baseball Stadium/GWU (March 2013)

13Glebe and Randolph Park (September 2013) Rocky Run Park (Spring 2014)

Investments in Natural Resources & Quality of Life –Ten Years of Progress

Key Maintenance Capital Accomplishments of FY13-14 Program

Ten Years of Progress

• Powhatan Springs Grass Turf (August 2013)• Clarendon Central Plaza – West End (November 2013)• Barcroft Synthetic Turf (January 2014)• Towers Tennis and Basketball Courts (Opening June 2014)• Fort Barnard Playground (Opening June 2014)• Quincy Softball Field Upgrades (Under Construction)• Chestnut Hills Tot Lot (Under Construction)

14

Investments in Natural Resources & Quality of Life –P d N I t tProposed New Investments

$182 M$182 Mover 10 years

Synthetic Turf - $28.8 MParks Land Acquisition - $11.5 M

15Park Master Plans - $52.3 M Maintenance Capital - $88.1 M

Investments in Natural Resources & Quality of Life –P d N I t t

Parks Maintenance Capital - $88.1 M over

Proposed New Investments

10 years for “catch up” and “keep up”

• Trail Modernization - $1.7 M in FY15-17• Park Maintenance Capital Asset

Database Update - $0.7 M in FY15-16• 14 Park Projects in FY15-17, incl:

B j i B k $2 5 M i FY15• Benjamin Banneker - $2.5 M in FY15• Stratford Park - $1.6 M in FY15• Bon Air - $2.8 M in FY16

16FY2015-2024 CIP Program

Investments in Natural Resources & Quality of Life P d N I t t P k M t PlProposed New Investments - Parks Master Plans

$52.6 M$52.6 Mover 10 years

Crystal City Parks & Open Space

17Jennie Dean Park •$14.3 M in FY 18-20

Crystal City Parks & Open Space•$2.3 M in FY16-17•$2.5 M in FY21-22

Investments in Natural Resources & Quality of Life P d N I t t P k M t PlProposed New Investments - Parks Master Plans

Four Mile Run Near Stream Improvements•$2.4 M in FY16 and FY18

Mosaic Park•Phase 1: $6.6 M in FY15-16 in developer contributions

$

18

•Phase 2: $4.1 M in FY19 & 21

Investments in Natural Resources & Quality of LifeP d N I t tProposed New Investments

Lubber Run Community Center•Replacement of existing Center (oldest in County)F ll l t f ti l•Full complement of recreational,

social, and learning activities•Community will take part in robust engagement processg g p•Funding schedule:

•$1.4 M for planning in next two years•$26 6 M in FY17 18 for•$26.6 M in FY17-18 for construction

19

Investments to Serve Those In NeedTen Years of ProgressTen Years of Progress

Homeless Services Center Mary Marshall Assisted Living Center

Investments to Serve Those In NeedProposed New InvestmentsProposed New Investments

DHS Consolidation, $11.6 M

Sullivan House- $0.45 MReplace roof, FFE, and flooring.

Residential Program Center - $1.6 M HVAC, FFE, building automation

21

Focus on Public Land for Public Good

Investments in Service Delivery -Ten Years of ProgressTen Years of Progress

County Enterprise Resource Management

System

Parks Operations Building

Fire Training Academy Additions

Investments in Service Delivery -Ten Years of Progress

• Carlin Hall- Structural repairs, $0.9 MCarlin Hall Before & After

Ten Years of Progress

• Central Library- Parking deck, $0.3 M

• Justice Center – Elevators, pavers - $0.8 M

CC $• ECC- Electrical power upgrades, $2.2 M

• Fire Stations- Refreshment - $1.6 M

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Justice Center Pavers

Investments in Service DeliveryProposed New InvestmentsProposed New Investments

$TRADES CENTER PARKING STRUCTURE

$233 M over 10yearsyears

SALT FACILITY & NORTH

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SALT FACILITY & NORTH 26TH STREET

Investments in Service DeliveryP d N I t tProposed New Investments

Facilities Maintenance Capital - $82.2 M over 10 years for “catch-up” and “keep-up”p p

Investing in 18 facilities between FY15-16, including: • HVAC system replacement – 7 projects

Roof replacements 3 projects• Roof replacements – 3 projects• Install Building Automation Systems (BAS) – 4 projects• Interior refreshment (FFE) – 15 projects

I f t t i 10 j t• Infrastructure repair – 10 projects

Lee Community Center, $2.1M FY16 Dawson Terrace Community Center, $0.389M FY16

Investments in Service DeliveryProposed New InvestmentsProposed New Investments

Investments in Enterprise IT - $72.2 M over 10 yearsp $ y

• IT infrastructure - $44.7 M – Incl. Wireless Sustainment and Expansion

• System maintenance/improvements – $16.8 MACE/CAPP (P t S t )– ACE/CAPP (Payment System)

• Security - $5.5 M

26

Investments in Arlington’s Core I f t t 10 Y f PInfrastructure – 10 Years of ProgressWater/Sewer Infrastructure: Water/Sewer Infrastructure:

• Chain Bridge Water Mains - 2006• Gravity 3 Water Main - 2010• Commercial Automated Meters 2009

• Lee Ground Storage Tank Rehab - 2005• Lee Water Pump Station Improvements – 2011• 7 Miles/year Sanitary Sewer Rehab

New/Replaced Renovated

• Commercial Automated Meters - 2009• Four Mile Run Relief Sewer - 2008• Potomac Interceptor Phase I - Ongoing• Fairlington Sanitary Sewer - 2011• Minor Hill Special pump station and pressure zone - 2009

• 7 Miles/year Sanitary Sewer Rehab• Four Mile Run Gravity Line from the Water Pollution

Control Plant to South Lang Street-2011• Four Mile Run Gravity Line from Columbia Pike to Long

Branch – 2011p p p p• Riverwood sanitary sewer force main - 2012• Water Main replacement program – 2011, 2012 and 2013• Developer related water and sewer improvements – 2011,

2012 and 2013

Branch 2011• Four Mile Run Gravity Line from the I-395 to South Lang

Street-2013• Annual cleaning and cement lining of pre 1960 water

mains – 2010 to 2013• John Marshall Drive at Lee Highway Sanitary Sewer 2013• AMR – 2013• Four Mile Run water main – 2012• Glebe Rd and Williamsburg Blvd water mains - 2013

• Lee Pump Station - 2011

27

Glebe Rd and Williamsburg Blvd water mains 2013

Investments in Arlington’s Core InfrastructureP d N I t tProposed New Investments

Water/Sewer InfrastructureInfrastructure

(Utilities) –

$317.7 M over 10 years

W/S Maintenance Capital - $170 0 MSanitary Sewer System - $26 5 M W/S Maintenance Capital $170.0 MSanitary Sewer System $26.5 M

28Water Distribution - $34.7 MWater Pollution Control Plant Non-Expansion - $86.7 M

Investments in Arlington’s Core InfrastructureP d N I t t

Stormwater Management:$61 3 M 10

Proposed New Investments

•$61.3 M over 10 years

E i l Q li $31 1 MEnvironmental Quality – $31.1 M

Capital Maintenance - $5 8 MCapital Maintenance $5.8 M

Storm Drainage Improvements - $24.5 M

Investments to Support Our Economic Competitiveness

WMATA - $226 M Streetcars - $514 M

30ART - $80 M

ConnectArlington / Intelligent T t ti S tTransportation Systems

$ 22.1 M

31

Ensuring Financial SustainabilityEnsuring Financial Sustainability

• Conservative assumptions:p– 2-3% revenue growth over ten year planning period– 5% interest rate

3% inflation assumption (4% streetcar)– 3% inflation assumption (4% streetcar)

• Complies with debt policies– Debt as % of total market value of real property no greater than

4% (proposed policy = 3%) – peaks at 1.5% in FY 17– Debt per capita as % of per capita income no greater than 6% -p p p p g

peaks at 5.2% in FY 17– Growth in debt service should be no greater than ten year

historical grow in revenues – average annual growth in debt

32

g g gservice projected at 4.2% compared to ten year historical average of 5.2%

Debt Service as % of G l G t E ditGeneral Government Expenditures

33

Financial & Debt Policy UpdateFinancial & Debt Policy Update- Policies last revised in 2008

Recommendations developed based on advice of

R P li i D bt P li i

- Recommendations developed based on advice of independent financial advisor & rating agency criteria

Reserve Policies

• Makes economic stabilization

Debt Policies

• Lower debt as % of market contingent permanent

• Confirm Operating Reserve threshhold at 5%

value ratio to 3% instead of 4%• More conservative variable

rate debt policyp y

34

New TIF PolicyNew TIF Policy

• Combined assessed value of TIFs should notCombined assessed value of TIFs should not exceed 25% of total County assessed value

• Percentage of incremental TIF revenue dedicated to TIF should be less than 40%

• Other policies regarding reserves and leveragingOt e po c es ega d g ese es a d e e ag g

35

CIP TimelineCIP Timeline

May 13 – Proposed CIP to County BoardMay 20 – Joint Schools – County worksessionMay-June - Briefing of CommissionsMay June Briefing of CommissionsJune 3 – General Government & Parks worksessionJune 10 - County CIP Public HearingJune 18 Transportation worksessionJune 18 – Transportation worksessionJune 24 – Utilities, stormwater and technologyJuly 17 – Wrap-up worksessionJuly 19 - Adoption of CIP & November Bond Referenda

36

Streetcar UpdateStreetcar Update

37

Streetcar – 8-mile Investment in our FutureStreetcar 8 mile Investment in our FutureDuring the next 30 years…65% of County’s population growth, 44% of employment y p p g p ygrowth will be in Columbia Pike and Route 1 corridors.

Quarter mile from all planned streetcar stations 2010 2040

Population 39,400 81,500

Housing units 22 600 42 700Housing units 22,600 42,700

Employment 62,900 100,100

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Streetcar – Maximizing Capacity ConnectivityStreetcar Maximizing Capacity, ConnectivityWe will combine the flexibility of bus with the certainty and permanence of streetcar for maximum benefit.p

Pentagon City

Buses to Rosslyn, Courthouse, Ballston

Buses to Pentagon, Downtown

Columbia Pike

Pentagon City Crystal City

M M VRE

Buses to Culmore, Annandale

Skyline

More people in fewer vehicles = Reduced congestion

Potomac Yard

39

Streetcar vehicle can hold 100% more passengers than a bus, 40% more than an articulated bus

Streetcar System Projected RidershipStreetcar System Projected Ridership70000

Average Weekday Boardings

50000

60000Through trips

Crystal City local tripsSt t

30000

40000

Columbia Pike local trips

Streetcar= 37,100Buses =

24,700

10000

20000 Crystal City

Columbia Pike Buses =22,700

02010 Actual 2035 Forecast

22,700

• Reflects population and employment forecasts based on updated County

40

Reflects population and employment forecasts based on updated County and regional plans

• Shows the benefits of having a seamless streetcar system (“one seat ride”)

Corridor Transit – How Does It Compare?Corridor Transit How Does It Compare?

Daily Weekday RidershipColumbia Pike – Crystal City:

2010 bus ridership

2035 rail and bus ridership

24,700

59,800Metrobus 16th Street S-line 20,000Portland Streetcar 18,000Cleveland Health Line BRT 16 000-20 000Cleveland Health Line BRT 16,000 20,000Norfolk, Va. Tide Light Rail 4,000

41

Streetcar = Economic CompetitivenessStreetcar Economic CompetitivenessFrom 2014 Columbia Pike Transit Comparative Return on Investment Study:

$3.2 billion to $4.4 billion in net, or new, real estate value for Arlington and Fairfax Counties over 30 years

• Over and above project capital and operating costs• Over and above project capital and operating costs• Benefits due to property value increases and greater

extent and faster pace of growth

6,600 new jobs attracted to the corridor within 10 years of project construction

• Based on new growth due to the transit infrastructure ginvestment

• More than 3x the amount supported by enhanced bus

42

Streetcar Investment = New Tax RevenuesStreetcar Investment New Tax Revenues

$

Annual New Arlington County Tax Revenues Over BaselineStreetcar total

$$50,000,000$60,000,000$70,000,000 Streetcar total =

$1,260 millionFY 2015:$0.01 on the tax rate =

$6.6 million

$$20,000,000$30,000,000$40,000,000

Enhanced bus total = $385 million

$0$10,000,000

• Revenues are net -- over and above project costs

Enhanced Bus Streetcar

43

Revenues are net over and above project costs.• Presented in 2014 dollars.

FY 2015-2024 Streetcar Capital CostFY 2015 2024 Streetcar Capital Cost

Columbia Pike streetcar Crystal City streetcarA li t C t $287 illi $227 illiArlington County $287 million $227 millionFairfax County $71 million* --

Total $358 million $227 millionStart of service Spring 2021 Spring 2020

* Proposed

Change in capital cost since 2013 CIP: + $109 million for Columbia Pike

Cost increase primarily due to 2013 FTA recommendations:• Rightsizing vehicles to meet County and regional growth plans

+ $ 81 million for Crystal City

g g y g g p• Higher engineering and start-up costs• Higher annual inflation rate assumption• Larger project contingency

44Both project schedules reflect more conservative timeframes for engineering, procurements and FTA approvals.

FY 2015-2024 Streetcar Funding ($ in millions)FY 2015 2024 Streetcar Funding ($ in millions)

Previous, $9.5, 3%

Columbia Pike = $287 millionPrevious, $5.9, 

2%

Crystal City = $227 million

TCF, $18.3, 7%

TCF Bonds, $35.4, 12% State, $55.3, 

TIF, $15.3, 7%TIF Bonds, $22.6, 10%

Federal, $140.5, 49%

HB 2313 30% Local, $12.3, 

4%

, $ ,24%

HB 2313 30% 

State, $70.7, 25%

Local, $24.3, 11%

TCF, $25.3, 

TCF Bonds, $78.7, 35%

11%

Regional funding source:• HB 2313 30% Local = Arlington’s portion of new Northern Virginia transportation funding

45

HB 2313 30% Local Arlington s portion of new Northern Virginia transportation fundingLocal funding sources:

• TCF = Transportation Capital Fund, supported by commercial and industrial real estate tax• TIF = Crystal City, Potomac Yard, Pentagon City Tax Increment Financing Fund