Introduction - Capital Improvements Program

The City of Sugar Land’s Capital Improvements Program has been developed in order to further our commitment to the citizens of Sugar Land. We are working to meet today’s infrastructure needs as well as those of the future. From work on underground water and sewer lines, to more visible projects such as street paving and park improvements, the five–year CIP addresses the needs of the City through responsible City government with a comprehensive approach that ensures efficient use of public funds.

What is a Capital Improvement Program (CIP)?

A CIP is a long range plan which identifies capital projects, provides a planning schedule, and identifies options for financing the plan. Essentially, the program provides a link between the City's comprehensive plan, various master plans, the annual budget and five year financial forecast.

A CIP provides many benefits, including:

• A systematic evaluation of all potential projects at the same time
• The ability to stabilize the debt tax rate and reduce borrowing costs through consolidated issuance
• Serves as a public relations and economic development tool

A long–term capital improvement program has many obvious benefits derived from its organized approach to planning projects. However, these benefits cannot be attained from the production of this document alone. One key benefit of a centralized capital improvement program is the opportunity to foster cooperation among departments and an ability to inform other governmental entities and rating agencies of the City’s priorities and future plans. The support of the citizens of Sugar Land and the City’s commitment to carrying out these programs is required in order to realize the following benefits:

• Focuses attention of community goals and needs.
  Capital projects can be brought into line with the City’s objectives, allowing projects to be prioritized based on need. Furthermore, the CIP can be used as an effective tool for achieving the goals set forth in the City’s Comprehensive Plan. Since cost estimates in years two through five are neither concrete nor committed, City Council has an opportunity to align identified projects with the priorities established to meet the goals and needs of the community.
• Allows for an informed public.
  The CIP keeps the public informed about the future capital investment plans of the City and allows them to play a more active role in the process. Since years two through five are for planning purposes, placing estimated costs in the out years allows City Council and the public to have an idea of the magnitude of a proposed project before considering it for funding.
• Encourages more efficient program administration.
  By enhancing the level of communication among the various departments implementing capital improvement projects, the City is able to better coordinate efforts, avoiding duplication of efforts and potential conflicts. Work can bemore effectively scheduled and available personnel and equipment can be better utilized when it is known in advance what, when, and where projects will be undertaken.
• Identifies the most economically sound means of funding projects.
  Through proper planning, the need for bond issues or other revenue production measures can be foreseen and action can be taken before the need becomes so critical that emergency financing measures are required. By identifying funding needs and fiscally constraining all five years of the CIP, the City is able to target needs by priority and work to put in place sources of funding for those projects where capacity may fall short.
• Enhances the City’s credit rating.
  Dramatic changes in the tax structure and bonded indebtedness can be avoided with proper planning that allows the City to minimize the impact of capital improvement projects. By keeping planned projects within the financial capabilities of the City, we are able to preserve our credit rating and make the City more attractive to business and industry.
• Helps to plan for future debt issues.
  The City last held a general obligation bond election in January 1999. At that time the voters approved a $34.5 million bond package. The City has issued all but $2.4 million of the voted authorization as of July 2008. The five-year CIP is a key tool in planning for future issuance of debt, such as certificates of obligation, or identifying projects for a future bond referendum.
• Defines the impact of master plans and studies.
  Based on history, a preliminary engineering report (PER) almost always results in a capital improvement. Until these PERs are completed and ready to move into the design phase of work, potential projects are not included in the CIP. The PERs are shown in a separate section and tracked under a different numbering system than active projects.

CIP Development Process

The development of a capital improvement program is a continual process and, consequently, should be viewed as a work in progress. Therefore, while this document covers a five–year planning perspective, it is revised every year in order to accommodate new projects, reflect changes in ongoing projects, and extend the program an additional year. The first year of the plan is incorporated into the annual budget as required by the City's charter, and funds are appropriated through the budget adoption. Improvements identified in subsequent years are approved only on a planning basis and do not receive any appropriation. Cost estimates for years two through five are presented for planning purposes only, and are used in conjunction with the City's long–range financial plan. The CIP development process utilizes a "project–ready" approach whereby the scope and budget for a proposed improvement are clearly defined prior to the appropriation of funds for construction.

Recognizing the importance of the Capital Improvement Program that allows the City of Sugar Land to continue to be a "great place to live and work," the City considers input from citizens, the Planning and Zoning Commission, City Council and City staff members in the Capital Improvement Program's preparation. A project list is compiled, prioritized by year, and cost estimates assigned. City Council is able to weigh citizen input with staff recommendations to ensure that both are equally considered.

The Fiscal Services Department also looks at the overall impact of projects, including the need to issue debt, potential impact on the tax rate, and operations and maintenance impact to the City. The CityCouncil, through budget workshops, reviews the proposed CIP and any recommended changes are incorporated into the final document. A final five–year CIP is then presented with the annual budget for Council consideration and approval. Upon Council adoption, the five–year CIP document is reproduced and distributed for implementation of the program. Years two through five become the beginning of the next five year CIP and project scopes are further refined based on additional information garnered through preliminary engineering and design work, combined with adjustments to cost based on updated scopes and market conditions.

2010-2014 Capital Improvement Program

The Five–Year Capital Improvement Program for 2010 to 2014 totals $303,855,922. Funding for CIP projects are derived from various sources including general obligation bonds, utility revenue bonds, certificates of obligation, utility revenues, general sales tax, economic development sales taxes, airport revenues, TxDOT highway funds, county mobility bonds and grants. Uses of the funding include Airport, Streets, Traffic, Drainage, Municipal, Parks, Water, Wastewater and Surface Water projects.

Fiscal Year 2010 Highlights
Airport projects include: construction of the new corporate taxiway “Juliette;” relocation of a parallel Taxiway; acquisition of Smithville land; and replacement of runway approach lights. All projects are funded through airport revenues or grant funding.

Drainage projects include: construction of Sugar Mill drainage improvements; purchase of an integrated storm water management model; additional storm sewer conveyance to Jane Long Lake; design of Sugar Creek drainage improvements Phase I; and general improvements to drainage systems throughout the City.

Municipal projects include: construction of Fire Station #7 in Telfair; design of Public Works facility expansion; rehabilitation of Utility Plant Buildings; repairs to the parking lot at the Fire Administration Building; and improvements in energy efficiency and security to city facilities.

Parks projects include: park land acquisition in Telfair; improvements to Imperial Park and First Colony Park; memorials at Sugar Land Memorial Park; beautification of U.S. 59 Phase III; and design/construction of various Hike and Bike trails.

Street projects include: extension of Lexington Boulevard; upgrades to Dulles Avenue; extension of University Boulevard through Brazos Landing; construction of University Boulevard North Bridge to U.S. 90A; and a turn lane at U.S. 90-A and Paradise Point. Projects also include general street light replacement and pavement and sidewalk rehabilitation.

Traffic projects include: improvements to geometric design at U.S. Highway 59 and S.H. 6; extension of the S.H. 6 median; development of Intersection Analysis and Efficiency Roadway Program; and implementation of traffic signal management systems.

Surface Water projects include: design of the surface water treatment plant and related transmission lines for the City’s mandated 30% reduction in groundwater use by 2013. The plant will begin construction in 2011 to meet the 2013 conversion deadline.

Wastewater projects include: rehabilitation of lift stations; installation of emergency power pumps at lift stations; rehabilitation of the aeration system at the South Waste Water Treatment Plant; and design of a chlorine building and grey water system at the North Waste Water Treatment Plant.

Water projects include: construction of an elevated storage tank; rehabilitation of water storage tanks and wells; construction of 20-inch water main along University Boulevard; improvements to the River Park water system; and installation of an alternative disinfection system.