PAYG and Short-term Finance - FY 2019 PROPOSED BUDGET HIGHLIGHTS Fund 313
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PAYG and Short-term Finance
FY 2019 PROPOSED BUDGET HIGHLIGHTS
Fund 313
County Board Work Session
April 5, 2018
PAYG Overview
• Pay-As-You-Go (PAYG) is funded from local County tax dollars
• Historically used for routine maintenance capital expenditures
• Reduces premature asset failure and extends useful life
• Maintains existing infrastructure versus new projects
• Asset condition assessment software being updated for Parks and Facilities
programs
• Maintenance capital funded from two primary sources
• PAYG
• Voter approved GO bonds
• PAYG funds assets with useful life of ten years or less
1
PAYG Overview
• Upcoming Capital Improvement Plan formulation will include larger conversation
about annual PAYG funding needs
• Discussion about long-term effects of reducing PAYG and being able catch up
with deferred maintenance
• Choices about new projects and associated operating costs versus maintaining
existing inventory with appropriate funding levels
• On-going PAYG funds have reduced slightly over the past several years
2PAYG Overview
• Availability of “one-time” funds (non-recurring) have substantially been reduced over
the last two years
• Carryover funds previously available during closeout and budget formulation have
diminished
3PAYG
PAYG Overview
Balances
Beginning PAYG balance (7/1/17): $132M
FY18 Commitments to-date (2/28/18): $58M
Available Balance (2/28/18): $81M
• Carryover balances fluctuate year-to-year depending on project execution
• Capital projects are multi-year in nature
• Large project carryover balances include: (all balances are committed to existing projects)
• Central Library interior improvements – balance $0.965M
• Anticipated completion Fall 2018
• Fire Station 6 – balance $0.515M
• Anticipated completion Winter 2018
• Fire Station 8 – balance $1.7M
• Anticipated completion Fall 2021
4PAYG
PAYG Overview
Balances
• Carryover balances cont’d:
• Mosaic Park – balance $4.27M
• Anticipated completion Spring 2020
• Long Bridge – PAYG & developer contribution balance $21.75M (additional GO Bonds
balance of $15.6M)
• Anticipated completion 2020
• Improvements Outside Major Corridors –balance $0.465M
• Anticipated completion FY 2021
• Rosslyn Ballston Arterial Street Improvements – balance $1.01M
• Anticipated completion FY 2020
• Streetlighting – balance $1.67M
• Anticipated completion FY 2020
• Transportation Systems and Signals – balance $1.84M
• Anticipated completion FY 2019
5Summary of Proposed Budget
• Aging inventory continuing to grow
• Adding staff where appropriate to help plan and execute capital projects
• Proposed FY 2019 reduction of ongoing PAYG budget of $1.5M
• Other fund sources used to fund FY 2019 Capital Program
• Parks Program - $3.802M
• Synthetic Turf Fields
• Partnerships/Cost-sharing - $0.496M (Long Bridge Field #1; Marymount cost-
share)
• Crystal City TIF - $1.335M (Long Bridge Fields #1 & #2)
• Parks synthetic turf contingency balances - $0.810M (New field, location TBD)
• Parks Field Fund (team fee revenue) - $1.06M (New field, location TBD)
• Grass Fields
• Program contingency balances - $0.10M (Gunston Park grass field
replacement)Summary of Proposed Budget
• Other fund sources, cont’d
• Transportation Program - $0.40M
• Paving - $0.209M (Prior-year GO Bond balances)
• Multi-modal Projects - $0.191M (Prior-year GO Bond balances)
• Facilities Program - $0.10M
• Trades Center Master Plan - $0.10M (Prior-year GO Bond balances)
• Proposed budget does not include GO bond funding that will be determined
during the upcoming FY 2019 – FY 2028 CIP formulationCapital Program Accomplishments
PAYG Overview
Major Completed Capital Projects
• Bluemont Park Athletic Field and Trail
Improvements
• High View Park Athletic Field,
Restroom/Storage, Picnic Shelter and Plaza
• Barcroft Sports & Fitness Center Gymnastics
Program Expansion
• Aurora Hills Community and Senior Center and
Library Upgrades
• County completed four key land acquisitions
8Capital Program Accomplishments
PAYG Overview
Major Completed Capital Projects, cont’d
• Building 2020 Garage and Elevator
Upgrades
• Trades Center Parking Garage Third Level
• HVAC Upgrades at the Water Pollution
Control Plant
• Nearly $20 million in contracts awarded for
transportation improvement projects
• The County completed ten neighborhood
conservation projects
9Proposed Capital Program:
Reduction to PAYG Program
Service Impacts Budget Impact
Paving Program FY 2018: $6,875,285
• Stated Paving Condition Index (PCI) goal of 75-80 FY 2019: $5,321,750
Change: -$1,553,535
• Current PCI is 74
• Maintains PCI contingent upon various factors
• Severity of weather
• Contracting costs
• Price of oil
• Affords approximately 78.5 lane miles of paving
• Does not include 2018 GO bond funds of ~$11M
anticipated 10Paving Capital
Proposed Cost History
Program:
2017 Final Paving/Slurry Seal/Micro-surfacing Map link:
https://arlingtonva.s3.dualstack.us-east-1.amazonaws.com/wp-content/uploads/sites/19/2017/02/2017FinalPavingSlurryMicroSeal.pdf
11Summary of Proposed
Short-termBudget
finance
(master lease)
• Average funding of $10M per year
• Previously financed through use of master lease program
• Master lease infrequently used in other jurisdictions and not many banks are
currently providing the service
• County intends to utilize either a line of credit combined with short term bank
loans / revenue bonds or a variation of previous master lease vehiclesShort-term
Summary Finance
of Proposed Budget
• Funding levels fluctuate depending on equipment
replacement cycles
• Fund source typically finances:
• PC replacement
• Network Equipment
• Server Refreshment
• Video Conferencing
• Enterprise Wireless
• Fire Station Alerting System
• Fire Breathing Apparatus
• Fire Defibrillators
• Public Safety Mobile and Portable Radios
• Sheriff and Police In-Car Cameras
• Fire Vehicles
13Proposed Capital Program:
PAYG and Short-term Finance Projects ($ in 000s)
PROGRAM CATEGORY Base One- FY 2019 FY 2017 Total FY 2019 Proposed
Funds Time Proposed C/O PAYG Funds FY 2019
Funds Funds Short-
Term Fin
T rans portation Maintenance C apital $1,888 $223 $2,111 $140 $2,251 -
F acilities Maintenance C apital - - - $1,562 1,562 -
P arks Maintenance C apital 1,022 - 1,022 $100 1,122 -
S ubtotal Maintenance C apital 2,910 223 3,133 1,802 4,935 -
R egional P artners hips 1,263 - 1,263 - 1,263 -
Neighborhood C ons ervation - - - 500 500 -
E nterpris e Information T echnology 400 - 400 1,282 1,682 3,985
P ublic S afety Information T echnology - - - - - 5,123
T rans portation Multi-Modal 251 - 251 119 370 -
P ark Mas ter P lans - - - - - -
**S ynthetic T urf 179 - 179 1,871 2,050 -
F acilities D es ign and C ons truction - - - 855 855 -
L and Acquis ition - - - - - -
C apital C ontingent 319 - 319 - 319 -
S ubtotal O ther C apital 2,412 - 2,412 4,627 7,039 9,108
Total Projects $5,322 $223 $5,545 $6,429 $11,974 9,108
* Numbers may not add due to rounding.
**S ynthetic turf carryover funds do not include C rys tal C ity T IF funds or P artners hip cos t-s haring funds
14Proposed Capital Program: Transportation
• Paving program completed Fall 2019. The other programs/ projects are ongoing.
Transportation Maintenance Capital
The inventory of streets is broken down as follows: 25 percent are arterial streets, 11 percent are
collector streets and 64 percent are residential streets. The Pavement Condition Index (PCI) is
Paving
updated annually and Arlington’s average PCI is currently 74. The County uses a variety of
maintenance strategies to maintain streets as detailed below.
Program Description PAYG GO Bond 2018 GO Bond
Balances Referenda
Paving has been increased to over 75 lane miles
annually. This includes about three lane miles of
Hot Mix Overlay
streets without curb and gutter (five percent of
funding). $476,000 $209,000 $9,900,000
Slurry Seal extends the life of pavement on
Residential Streets at a much lower per square yard
Slurry Seal
cost. Program is based on approximately 40 lane
miles being slurry sealed annually. $400,000
Microsurfacing extends the life of pavement for
Arterial Streets at a lower per square yard cost.
Microsurfacing
Program is based on approximately 10 lane miles
being microsurfaced annually. $500,000
Re-builds include partial and total excavations of
blocks to re-build the base and sub-base of
Re-Building of roadways where significant roadway failure has
Streets occurred. Since 2008, an innovative process to
stabilize soil with cement has reduced re-build
costs by around 50 percent. $750,000
Subtotal Paving Program Only
Funding includes PAYG ($1.38M) and *GO Bonds ($10.85M) $1,376,000 $209,000 $10,650,000
Other
Transportation Includes ITS Device Replacement, Street Lighting,
Maintenance and Trail Lighting.
Capital $875,000
Includes bicycle and pedestrian projects, parking
Multi-Modal meters, parking technology and the transportation
asset management program. $370,000 $191,000
GO Bonds are assumed from the upcoming 2018 GO Bond Referenda
$2,621,000 $400,000 $10,650,000 15
Total (PAYG $2.6M; Bonds $11.05M)Proposed Capital Program: Parks and Recreation
Parks Maintenance Capital Program
FY 2019 Project List
Anticpated
Program
Project Name - Description PAYG Total Start/Completion
Contingency
Schedule
1. Gunston Park – Design and construction. The S ummer 2018 / F all
$405,000 $100,000 $505,000
project is for replacement of the grass community field. 2018
2. Westover Park – Design and construction. The S ummer 2018
$62,000 $62,000
project is for replacement of the grass community field. /S ummer 2018
3. Capital Asset Manager – Staff resources to manage
$155,000 $155,000 NA
the capital asset program.
4. Field Fund Program – The fees assessed for
rectangular fields are to support replacement and
construction of synthetic turf fields in the County (annual
estimate of $180,000). The fees assessed on diamond $250,000 $250,000
fields (annual estimate of $70,000) are to be used for
specific diamond field enhancements, such as improved
irrigation, batting cages, or accelerated sod replacement. NA
5. Feasibility Studies – These funds will provide the
ability to conduct timely and relevant analysis and
studies as opportunities arise. The program is meant for
new planning initiatives that are outside current CIP
$150,000 $150,000
projects. Examples are potential planning and analysis
needs for parks and sites associated with site plan
proposals, Arlington Public Schools proposals, affordable
housing proposals, or land acquisition opportunities. As Needed
Totals $1,022,000 $100,000 $1,122,000
16Proposed Capital Program: Parks and Recreation
Parks Synthetic Turf Program
FY 2019 PAYG Project List
Synthetic Turf Anticipated
Project Name - Description PAYG Program Cost Share Field Fund CC TIF Total Start/Completion
Contingency Schedule
1. Long Bridge – Design and
Summer 2018 /
construction of synthetic turf, infill and $838,392 $838,392
Summer 2018
subbase repair for field #4.
2. Long Bridge – Design and
construction of synthetic turf, infill,
Summer 2018 /
subbase repair and shade structures for $496,379 $496,379 $992,758
Summer 2019
field #1. There is a 50/50 cost share
with Marymount University for this field.
3. New Field – Design and construction
for new synthetic turf location, to be
determined through the Public Spaces
Master Plan update process. Project Fall 2019 / Fall
$179,000 $810,000 $1,061,000 $2,050,000
includes new subbase, synthetic turf, 2019
infill, site amenities (depends on site)
and potentially lighting (depends on
site).
Totals $179,000 $810,000 $496,379 $1,061,000 $1,334,771 $3,881,150
17Proposed Capital Program: Facilities
Facilities Capital Program
FY 2019 Project List
Anticipated
Project Name - Description Total Start/Completion
Schedule
1. Justice Center Facade Cleaning - Power wash the Summer 2018 /
$247,000
Detention and Court Police Facade. Summer 2018
2. Aurora Hills Library and Community Center - total
roof replacement; HVAC replacement; installation of Summer 2018 /
$705,000
building automation system (BAS) and lighting Summer 2019
replacement.
3. Software/System Upgrades - Replace Fire Alarm
Summer 2018 /
systems at the Residential Program Center and Arlington $100,000
Winter 2018
Arts Center and upgrade access control panels
4. Critical Systems Infrastructure – Replace
Summer 2018 / Fall
uninterruptable power systems (UPSs) in County network $300,000
2018
operating center (NOC)
5. Chair Replacement - Systematic annual chair
replacement program to replace task chairs throughout
County facilities. Existing chairs ten years or older will be Summer 2018 /
$110,000
replaced, supportive of the industry standard for life Winter 2018
span. This year would start the third year out of an
eleven-year program.
6. Interior Maintenance Capital Improvement -
Systematic capital maintenance program that allows for
the annual interior refurbishment of flooring, wallpaper,
painting and signage. Facility revitalization has been
Summer 2018 /
deferred over the past decade due to the lack of $100,000
Spring 2019
departmental funding sources. This program would
enable the facilities to be upgraded through a systematic
ranking of needs based on yearly assessments of our
90+ buildings by internal staff.
Total PAYG $1,562,000
18Proposed Capital Program: Facilities
Facilities Design and Construction Program
FY 2019 PAYG Project List
Anticipated
GO Bond
Project Name - Description PAYG Total Start/Completion
Balances
Schedule
1. ADA Remediation - In FY13, the County
completed a comprehensive assessment of 54
facilities to determine any deficiencies in access for $500,000 $500,000 Ongoing
persons with physical disabilities in it. This
program is to remediate existing facilities.
2. Facility Master Planning and Feasibility
Studies - Facility master planning provides an
integrated approach that addresses short,
intermediate, and long-term needs for County
facilities. This funding is for staff charges for the
$355,000 $100,000 $455,000 Ongoing
developer funded project at Fire Station#10
($60,000), site development at 26th and Old
Dominion ($45,000), Feasibility Studies
($250,000), and partial funding for the Trades
Center Optimization Study ($100,000).
Totals $855,000 $100,000 $955,000
19Proposed Capital Program: Information Technology
Information Technology Maintenance Capital
FY 2019 PAYG Project List
Program Anticipated
PAYG
Description Start/Completion
Schedule
This project provides continuous refreshment of County network equipment
Ongoing, funds
Network Equipment as it reaches end of life and/or requires enterprise-level feature
$491,000 expended by end of
Refresh enhancements and upgrades. This funding is in addition to short-term
FY 2019
financing funds.
The refreshment of this hardware is necessary to support connections for
remote workers to connect to County applications and network drives and Summer 2018 /
TeleworkingMobility $261,134
enables teleworking. The support for existing equipment expires in the Winter 2018
second quarter of FY 2019.
With these FY 2019 funds, information security will be expanded by
implementing a more robust mail filtering system that will catch more spam Summer 2018 /
Security $265,000
and malware and reduce the chances of a ransomware attack. An estimated Winter 2018
80% of the threats received from email would be captured by this tool.
The new system will manage all business functions needed in the
DHS Housing administration of HCV programs including: client waiting list, eligibility
Winter 2018
Choice Voucher determination, subsidy calculation, payments, financial reconciliation with $100,000
completion
Payment System County financial system, and be compliant with all HUD regulations and
mandates.
This new system will manage all business functions needed in the
administration of Local Housing and Assistance Programs including: client's
DHS Local Housing
eligibility determination, benefit calculation, payments, financial Winter 2018
and Benefits $315,000
reconciliation with County financial system, and reporting. Previously, these completion
Software System
local programs were handled within the Housing Choice Voucher (HCV)
system through a special configuration.
Effective in FY 2015, the County began assessment of a $5.00 fee as part of
the costs in each criminal or traffic case in the district or circuit courts for
the use of purchasing an electronic summons system. The costs of the
Electronic
system include peripheral equipment such as handheld devices, portable $150,000 Ongoing revenue
Summons System
printers, driver’s license scanners, and barcode readers, as well as the
maintenance required for the system. The FY 2019 PAYG budget reflects the
projected annual revenue from the fees.
This new financial reporting software will be used to automate the
preparation of the County’s CAFR schedules and reports, thereby reducing
Spring 2019 /
CAFR Software personnel time spent and compounding resource utilization. Improved $100,000
Summer 2019
oversight of County-wide financial reporting and financial transactions will
facilitate strong internal controls and reduce audit risks.
Total Information Technology FY 2019 PAYG $1,682,134 20Proposed Capital Program: Short-term Finance
Information Technology
FY 2019 Short-term Finance Project List
Anticipated
Project Name and Description Short-Term Financing Start/Completion
Schedule
Endpoint Replacement - Most end user computing devices in the
County currently operate on Windows 7. In January 2020, manufactuer
Ongoing
support for this operating system will terminate, and any devices still
refreshment, funds
running it will stop receiving critical security patches. Thus, all County $1,985
depleted by end of
devices must be upgraded to Windows 10 before this date. These
FY19
funds will be used to replace over 960 devices and upgrade over 1,200
devices.
Ongoing
Network Equipment Refresh - These funds will be used to replace
refreshment, funds
network switches and routers which are still being used past their 1,500
depleted by end of
useful life.
FY19
Ongoing
Data Storage - These funds will be used to replace servers and other refreshment, funds
500
storage hardware that have reached the end of their useful life. depleted by end of
FY19
Subtotal Enterprise Technology and Equipment $3,985
Fire Station Alerting System - These funds will be used to upgrade and
Start Summer 2018
standardize station alerting, replacing the County’s current twelve-year-
/ Anticipated
old technology. The alerting system reduces response time for 1,110
completion Spring
firefighters and paramedics, reducing the chance of flashover and
2019
increasing the chances of patient survival.
Fire Breathing Apparatuses - These funds will be used to replace Self
Contained Breathing Apparatuses (SCBA), which are devices that
provide clean air to firefighters in hazardous conditions. The County’s Start Summer 2018
3,298
current SCBAs were purchased in September 2008 and will no longer / Winter 2019
be covered under the manufacturer’s ten-year warranty as of
September 2018.
ECC Radio System - Circuit to IP Simulcast Conversion - The existing
emergency communication radio system network operates using circuit-
based connectivity between remote sites within the system. Building Anticipated
more advanced features into this radio system will require first 715 completion Spring
converting it to Internet Protocol (IP) based connectivity. These funds 2019
will convert all remote sites to the IP based connectivity and replace all
relevant hardware and fiber.
Subtotal Public Safety $5,123
General Fund: Program Costs $9,108
TOTAL Project Costs $9,108
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