FY2014 Recommended Budget - City of Surprise

Capital Improvement Plan Summary
FY2014
The city of Surprise has transitioned from a small agricultural community to one of the fastest growing
communities in the nation. The 2010 census results show a population of 118,349, more than triple the
2000 census tabulation of approximately 30,000 residents. It is
estimated that the population will increase slightly to 121,000 by
the end of FY2016.
Much of Surprise’s infrastructure was developed with a mix of
public and private investment. Large master planned
communities like Sun City Grand and Marley Park installed
local infrastructure (roads, water, and sewer lines) to service
the projects while the city provides police, fire, and wastewater
treatment infrastructure and services for new residents
expected to be added annually.
Management works with the Mayor and City Council and all
departments throughout the Capital Improvement Plan (CIP)
process to develop the adopted CIP. The CIP process runs in
conjunction with the operating budget process and both
culminate with the adoption of the recommended budget and CIP by the Mayor and City Council in June.
The city is working on a comprehensive, multi-year Infrastructure Improvement Plan that outlines projects
anticipated to fulfill current and future capital and infrastructure needs. The plan incorporates estimated
project costs and associated ongoing operating costs. It addresses both repair and replacement of
existing infrastructure, purchase of capital equipment, and construction of new facilities.
The proposed CIP is limited due to minimal growth. During the course of FY2014, staff will be working
with the Mayor and City Council to develop an Infrastructure Improvement Plan and CIP funding
strategies.
Funding
The CIP is broken down into four major functions:
1. general fund CIP
2. transportation improvement CIP
3. development impact fee funds
4. water and wastewater enterprise funds
1. general capital fund
Projects in this fund are paid for primarily by a portion of construction sales tax and third party funding
(e.g. grants, intergovernmental revenue, etc.).
2. transportation improvement fund
Projects in this fund are primarily funded by a 1.5% dedicated construction sales tax and third party
funding (e.g. grants, intergovernmental revenue, etc.)
3. water and wastewater enterprise funds
These CIP programs are paid for by a combination of user rates and development impact fees
Capital and Operational Finances
In keeping with the city’s policy of sustainability, approved capital projects stress continuation of current
service levels. Surprise citizens deserve, and have come to expect the high level of service provided by
the city. In order to maintain this high level of service, the city has committed many of its one-time sources
of funds to pay for capital and infrastructure needs.
The operational costs associated with the massive amount of capital built by the city of Surprise have
impacted the city’s operating budget. With each new completed project there are staffing, maintenance,
supply, and other service costs that must be funded on an ongoing basis. The funding of these ongoing
operational costs must be determined before a project is approved. By examining operational
requirements early in the process, the city is assured that when a public building is completed, there is
funding to open and operate the facility without negatively affecting other city services.
207