SUBJECT:
Title
Facilities Needs and Capital Improvement Plan Overview
Body
DEPARTMENT: Finance Department
Department
PRESENTER(S): Sara Hancock, Director of Finance
Malcolm Fleming, Town Manager
First Name Last Name, Title
TIME ESTIMATE: 180 minutes
only required for non-consent items
FISCAL SUMMARY: N/A
STAFF RECOMMENDATION:
Recommendation
Staff request direction on what CIP projects to begin incorporating into the 2026 Capital Improvement Plan, as well as direction on moving forward on budgeted 2025 projects.
End
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
The following memo and presentation materials were developed to support the Council in understanding the most recent facilities needs assessment, how these needs were incorporated into key investments in the Capital Improvements Plan (CIP), and outlines several key projects that staff are seeking guidance on. Furthermore, staff will discuss the funding/debt mechanisms available to the Town to finance future projects.
Facilities Needs Assessment
In 2020, the Town contracted with Wold Architects and Engineers to evaluate the Town’s facilities and develop recommendations and a strategy to address the most critical needs. The most critical needs at that time included Town Hall, the Erie Police Department and Municipal Court Building, Leon A. Wurl Service Center, and the Erie Community Center. In an update in 2023, the consultant reiterated the need for the Town Hall expansion and the Public Safety Building expansion as key projects. Town Hall was financed with cash from several funding sources, including the General Fund, Public Facilities Impact Fund, and enterprise funds (reflecting the office space in Town Hall devoted to Utility Billing and Stormwater operations). In December of 2023, the Town’s financial advisors presented funding options for the Public Safety Building. The Council directed staff to proceed with the project, funded by Certificates of Participation. All key facilities projects were included in the 2024 and 2025 CIP, in alignment with the 3 years of evaluation and planning.
Additionally, Wold, in collaboration with Town staff, evaluated the anticipated staffing needs of the organization and how that would impact facilities needs. As it relates to the Town population, at 40,995 residents, the consultant projected the need for 352 full-time equivalent (FTE) employees. As of the end of 2024, the Town population was at 39,171, with an FTE count of 345.9. This puts the staffing growth in alignment with projections and with the Wold identified facilities needs and priorities.
Financial Condition
The 2025 Budget and Capital Improvements Plan (CIP) were developed with the facilities priorities as key components. With the creation of the Capital Improvements Fund (CIF), the Town Council can prioritize projects within the available General Fund transfer, as well as build up reserves and fund balance within the CIF for emerging needs. The 2025-2029 CIP includes all the key prioritized projects and anticipated funding mechanisms. The entire CIP can be found here: 2025 Capital Improvement Plan <https://town-erie-co-cleardoc.cleargov.com/5899/144365/d>.
For the General Fund, the Town has prioritized in a way that maintains fund balance for emerging needs but also addresses key projects and capital maintenance needs.
Key Projects
The 2025 adopted CIP includes $126 million dollars in capital projects which span 13 different funds. These projects cover new infrastructure, including design and construction, as well as ongoing maintenance needs. Again, the key facilities projects are in alignment with the facilities needs assessment, as well as growth needs related to water and storm drainage. Key projects highlighted here include the new Water Treatment Facility, Public Safety Building, LAWSC expansion, and a renovation to the ECC.
The Public Safety Building expansion is nearing design phase completion, meaning that over $2 million dollars have been invested in the project moving forward in 2025. The 2025 Budget calls for the use of Certificates of Participation (COPs) to fund construction and reimburse design later this year. If the project is delayed, the current estimate for delay is $5.5 million dollars, which includes inflationary factors that are variable. Accordingly, staff asks the Council to either confirm the project continue to move forward as funded with COPs, or provide direction on what alternative approach Council wants to take.
Parks and Recreation have several key projects, some of which are budgeted in out-years, but are still prioritized as a part of the community needs and facilities needs. This includes the Morgan Hill and Compass Park projects, as well as the development of the Page Property, also known as the Village at Coal Creek (VCC), which includes space for Parks and Open Space staff and equipment. At Mayor Moore’s request, staff are working with the consultants the Town engaged to conduct stakeholder engagement and design work related to the VCC to delay further action on that project until Council confirms or clarifies the direction it wants to take. Because the consultants are already under contract and have performed some work, if Council wants to change the scope of work or terminate the contract, the Town Attorney opines that would require Council action. Staff is also exploring the implications if the Town does not follow-through with the intended use of Federal ARRPA funding for the project. On February 18, Planning and Community Development Director Nurmela provided a memo summarizing these issues. Staff is working to address follow-up questions from that memo and to find a time to discuss this matter with Council in a Study Session.
Parks and Recreation is exploring an additional recreation center location, including an outdoor aquatic center. Staff need formal direction from Council to explore facility and funding mechanisms for this project, which includes impact analysis. Additionally, the Town is exploring options for the Performing Arts Center, which is conceptually a part of the Town Center Development.
And finally, Council has expressed interest in creating a connection through the Airport from the eastern end of Arapahoe Road to State Highway 7. This connection is shown as a future project in the Transportation and Mobility Plan (TMP), but until now considered a long-range project outside the 5-year timeline of the CIP. However, due to Council’s interest, staff has added this to the list of projects for consideration and discussion.
Funding/Debt Mechanisms
The Town has several debt mechanisms available for use for a variety of project types. This presentation will focus on the following:
Council Direction
Town staff are seeking the following direction as they continue projects budgeted in the current year, as well as how to incorporate Council priorities into the upcoming 2026 Budget and CIP. Staff have the following questions:
• Does staff proceed with the Public Safety Building using COPs as adopted in the 2025 Budget?
• Does staff proceed with a feasibility review for an Aquatic Center and include as a CIP project in the 2026 Budget?
• What additional information does Council need regarding the Village at Coal Creek and when is Council available to have a Study Session to discuss that matter?
• Are there any additional areas of research or development to be included in the 2026 Budget and CIP proposals?
COUNCIL PRIORITY(S) ADDRESSED:
ü Attractive Community Amenities
ü Engaged and Diverse Community
ü Prosperous Economy
ü Safe and Healthy Community
ü Effective Governance
ü Fiscally Responsible
ATTACHMENT(S):
1. Presentation