Capital Improvement Plan (CIP) - City of Delaware

City of
Delaware
Ohio
could not be directly absorbed. Therefore, we had to review our options. During our CIP
discussions we reviewed our resurfacing program and the overall condition of our roads.
As you may be aware, the industry standard for gauging the overall condition of
roadways is the pavement condition index, or PCI. We have included some additional
narrative on the city’s PCI. Overall, the City’s road conditions are considered “good”
(68-81 PCI) based on this index. Our goal has been to maintain at least at 70 PCI average
on all our roads. Therefore, city staff felt that by reducing some of the resurfacing dollars
in 2009 we could shift this resource to the Point without overly impacting the quality of
our roadways. This will result in a resurfacing program of $226,718 in 2009. In 2010 this
amount will be increased to $798,000 and increase to $850,000 by 2013.
Another important topic in the CIP is the City’s overall debt position. Currently our total
outstanding debt is $76 million. We have included a complete summary of the City’s debt
position in the introductory material that outlines our outstanding debt, our annual
payments, and maturity dates. By using debt-financing we have been able to add
substantial infrastructure to the City such as a new wastewater treatment facility, the
Southeast Highland Sewer, sections of Glenn Road, and a new Public Works facility and
Justice Center Expansion. These investments were necessary given the City’s expansion
and growth over the years. When development increases we will recoup our investment
from the South East Highland Sewer and Glenn Road through capacity fee income and
community charges, respectively.
Some of the new capital investments in the CIP that will be financed over the long-term
include the water treatment plant expansion, Hills-Miller transmission line, and the
upground reservoir. These are all out of the Water Capacity Fund. The debt for these
projects will be paid from Water Capacity Funds and increases in water rates, given the
current income stream from capacity fees. You will see that projects in the Sewer
Capacity Fund are very limited and are programmed largely in 2009.
One of the major equipment purchases in the plan is a $1.25 million ladder truck for the
City’s fire department. The current truck was purchased in 1981 and has reached its
useful life. Many of the parts for the vehicle are no longer made and/or difficult to find.
The Public Works Department has had to fabricate several parts on the truck in order to
keep it running. This truck cannot be purchased with impact fee funds since it is a
replacement vehicle; therefore the city will purchase it with General Fund money. Our
plan is to lease the truck and make annual interest payments over a 15-year period.
Some of the other important topics of discussion we will have over the next few weeks is
the disposition of revenue from the recent recreation levy, our plan for adding more fire
stations, and issues associated with inflow and infiltration. You will see in the Fire
Impact Fee fund the plan shows construction of station #3 and #4 and the annual debt
service requirements to construct these facilities. During our review we will focus on our
1 South Sandusky Street • City Hall Delaware, OH 43015 p: 740-203-1200 f: 740-203-1224
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