Agenda #: 1
Meeting Date: May 7, 2024
CITY COUNCIL STUDY SESSION REPORT
TO: Honorable Mayor and Members of the City Council
VIA: Daniel Fox, City Manager
FROM: Jason Jacobsen, Finance Director
TITLE: DRAFT FY 2024/25 CAPITAL IMPROVEMENT PROGRAM BUDGET BACKGROUND:
Each year, the City prepares an annual Operating Budget and Capital Improvement Program (CIP) for City Council consideration that implements the Council’s priorities and Strategic Plan Goals, and provides the financial resources to deliver services to the community. The preparation of the annual budget is a significant and important undertaking that takes place over the course of more than five months.
Below is the schedule for the preparation of the FY 2024/25 City Budget:
• Council Study Session on Draft FY 2024/25 CIP and Draft Five-Year CIP Review – Scheduled for 05/07/2024
• Council Study Session on Draft FY 2024/25 Operating Budget – Scheduled for 05/21/2024
• Adoption of the Proposed FY 2024/25 City Budget & CIP – Scheduled for 06/04/2024
The purpose of this budget study session is to provide the opportunity for the City Council to review the proposed projects in the Draft FY 2024/25 CIP budget.
Additionally, staff is presenting the City Council with the Draft FY 2024/29 Five-Year CIP for review. Based on the direction provided by the Council, staff will incorporate the FY 2024/25 CIP budget and the Five-Year CIP list into the City’s official budget document for consideration and adoption at the June 4, 2024, Council Meeting. As the City adopts budgets on an annual basis, only the FY 2024/25 CIP will be funded. The approved Five-Year CIP will be looked to for guidance as staff prepares future budget requests, and will provide the basis for further discussions on long-term funding priorities and needs to advance these and other unfunded projects. The Draft FY2024/25 CIP and Draft FY 2024/29 Five-Year CIP are presented in detail in Attachments 1 and 3, respectively.
DISCUSSION:
The Draft FY 2024/25 CIP budget includes eight (8) new projects totaling $14.3 million.
Some proposed projects have already received funding for the design phase in FY 2023/24 and are now proposed to move to the construction phase.
The Draft FY 2024/25 CIP encompasses five project categories and represents an expenditure increase of 18.4% when compared to the Adopted CIP for FY 2023/24.
The full itemized project list, with funding sources, is included in Attachment 1.
CIP Program Year-Over-Year
Adopted
FY 2023/24
Proposed
FY 2024/25 % Change
Street Improvements $ 9,720,464 $ 13,356,189 37%
Traffic Mgmnt./Safety Improv. 64,000 64,000 0%
Transportation Infrastructure Improvements 336,500 - -100% Misc. PW Improvements 300,000 380,000 27%
Facilites, Parks and Rec. Improv. 1,610,000 450,000 -72% Total $ 12,030,964 $ 14,250,189 18.4%
As the Council will recall, the CIP for FY 2023/24 was ambitious and represented an increase of 18% year-over-year, with new projects proposed for streets, parks, facilities, transportation, traffic and miscellaneous improvements, many of which are still on-going (see Attachment 2). Likewise, the Draft FY 2024/25 CIP builds on last year’s program and recommends a year-over-year increase in Capital Improvement expenditures in the amount of $2.2 million.
The Diamond Bar Blvd Complete Street Project is the most significant new project proposed at an estimated $9.3 million. This project is primarily grant funded and will serve as an early implementation public project that will act as a catalyst for the transformation of the Town Center area into a pedestrian-oriented mixed-use “downtown”.
Proposed reductions in street resurfacing projects for FY 2024/25 are due to the spending down of accumulated restricted reserves (e.g. Road Maintenance & Rehabilitation Act Fund) during FY 2023/24 that were realized in these funds as a result of unspent allocations during the pandemic period.
The Draft FY 2024/25 CIP presented to the City Council for discussion this evening proposes to utilize one-time General Fund savings for the design of prioritized improvements proposed for Ronald Regan and Sycamore Canyon Parks in the amount of $450 thousand (a decrease of $650 thousand from last year). Other funding sources proposed for the remainder of the requested projects amount to $13.8 million (see Attachment 1).
Proposed CIPs for FY 2024/25 - Total Budget Request: $14,250,189 Project No. Street Improvements: $13,356,189
SI25105 Arterials -Lemon Ave (SR60 to Northerly City Limit); Brea Cyn Cutoff (SR57 to Westerly City Limit) (Const.)
SI25101 Residential and Collector Street Rehab - Area 4 (Const.) SI25104 CDBG Area 5 ADA Curb Ramp Project (Const.)
SI25106 Diamond Bar Blvd Complete Street Project (Const.) Project No. Traffic Management/Safety Projects: $64,000 TM25201
Battery Back-Up and CCTV Replacement Program
(Construction)
Project No. Transportation Infrastructure Improvements: $0 N/A None.
Project No. Miscellaneous Public Works Improvements: $380,000 PW25403 Installation of Full Capture Devices on Stormwater Catch Basin for Trash Amendment Compliance - Phase 1
Project No. Facilities, Parks and Rec Improvements: $450,000 FP25507 Ronald Reagan Park Pickleball Court, Playground and ADA (Design)
FP25508 Sycamore Canyon Park Lower Bridge Replacement Options (Design)
Completed CIPs in FY 2023/24
Of the 30 capital improvement projects underway at the start of FY 2023/24, 10 of which were new to FY 2023/24, a total of fourteen (14) are anticipated to be completed by the end of FY 2023/24, and sixteen (16) projects will be carried over to FY 2024/25, see Attachment 2 for details.
The Draft FY 2024/25 CIP budget is scheduled to be reviewed for consistency with the City's General Plan at the May 14, 2024 Planning Commission meeting.
Attachments:
1. 1.a Draft FY24-25 Capital Improvement Program
2. 1.b FY23-24 Capital Improvment Program Status
3. 1.c Draft 5-Year Capital Improvement Program FYs 25-29