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TOP CAPITAL PROGRAMSTOP CAPITAL PROGRAMS

By Rebekah MorrisArizona Builder’s Exchange, LLC

rmorris@azbex.com

Grateful to not be in California… My hometown faces a $70M state-

dictated pension contribution

Drastically reducing Capital

Improvement Plan, cutting funding to

all outside agencies

Raising sales tax, hotel tax, and utility

users tax at the same time.

$70M/44K people = $159/person

LOMPOC, CA

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Thankfully, we’re in Arizona…

Tax revenue is climbing – HURF, sales tax, property tax, etc.

Tax increases (sales tax mostly) are gaining in popularity while bonding capacity

hinders that once-prominent public finance mechanism

Stable budgets and good calm economies are creating a great environment for

Capital Spending

Projects tied to enterprise funds and maintenance continue to have positive outlook

CONCLUSION:

Collectively, the Top Programs are showing a 10.14%

increase in the 5-yr total, which will go higher as programs are

approved and adopted

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TOP CAPITAL PROGRAMS

1. ADOT $4.957B

2. City of Phoenix $4.582B

3. Valley Metro $1.542B

4. City of Mesa $1.153B

5. Town of Gilbert $957.5M

6. Scottsdale $584.2M

7. Chandler $522.0M

8. Peoria $499.4M

9. Glendale $476.1M

Notably Absent: Maricopa County ($1.3B), Tucson ($850M), Tempe ($475M) – (last year’s totals)

TRENDS OVER TIME

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ADOT Phoenix Valley Metro Mesa Maricopa County Gilbert Tucson Scottsdale Glendale Chandler Tempe Peoria

Historical View of 5-yr CIP Totals

FY13 FY14 FY15 FY16 FY17-21 ($M) FY18-22 ($M)

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ADOTADOT 8.98% year over year increase

Last year the FAST Act passed at the

Federal level, providing stability to

long-term transportation planning

HURF revenue is growing modestly,

sweeps by the State are winding

down

Airport Projects still shown outside

the STIP – state funded airport

projects declined this year by $84M STATE ROUTE 30 MAP

LOOP 202 SOUTH MOUNTAIN FREEWAY

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ADOTPROJECTS OF NOTE

Widen I-10 to 6-lanes at SR87 to Picacho

Widen I-17 from Anthem to Sunset Point - $143M

SR 30 - $112.6M

SR303/L202 So. Mtn. - $112.6M

SR143/L202 Santan - $161.3M

MC 85 at Van Buren - $120M

$138M - SR 24 – from Ellsworth to Ironwood Dr.

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ADOTPROJECTS OF NOTE (CONT’D)

Pima County – I10 at

Ruthrauff – widening & TI

I-10 & Ina Road

I-19 & Ajo Way TI

CITY OF PHOENIXCITY OF PHOENIX 30.34% YOY increase (WOW!)

T2050, HURF Revenue, Sales Tax

revenue all are increasing

Project counts have declined, GO

bond projects moved to separate

schedule.

My opinion: Projects need to move

forward into the programming, study,

and planning stages.

Credit: City of Phoenix

Credit: Phoenix Sky Harbor International Airport

TERMINAL 3 REDEVELOPMENT

PHX SKY TRAIN

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CITY OF PHOENIXPROJECTS OF NOTE

Sky Train Stage 2 - $690M

Terminal 4 S1 Concourse - $250M

Northwest Light Rail Extension Water

Relocations- $19M

South Central Light Rail Extension Ancillary

Services (Traffic Engineering, Roadway

relocation, and railway mods) - $48.2M

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VALLEY METROVALLEY METRO

32.58% YOY increase (Top % increase)

Poster child for ‘speeding things up’, accelerating projects instead of delaying them

This is the peak of activity

Credit: Valley Metro

Credit: Valley Metro

TEMPE STREET CAR

SOUTH CENTRAL LIGHT RAIL EXTENSION

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VALLEY METROPROJECTS OF NOTE

South Central Light Rail

Extension

Northwest Light Rail Extension

Tempe Streetcar

Capitol/I-10 – Phases 1 & 2

West Phoenix/Central Glendale

Northwest Phoenix

CITY OF MESACITY OF MESA 18.85% Decline in the CIP

Sales tax measure did NOT pass the ballot in 2016, all the unfunded projects have come out

Future Bond projects for Streets, Water, Wastewater & Parks

Credit: City of Mesa

FALCON TECH CENTER

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CITY OF MESAPROJECTS OF NOTE Fire Stations:

205: Rebuild

221: Eastmark

222: Battalion HQ

224: NE Mesa

209: Expansion

Public Safety Training Facility

Northeast Substation

Communications Buildout

PD Headquarters Renovation

Don’t hold your breath – they’re all planned for FY 23-25

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TOWN OF GILBERTTOWN OF GILBERT 11.69% YOY Increase

Funds the entire project before starting

Future Bond issues

GO Bond 2018

Parks (poss. Streets) 2020+

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TOWN OF GILBERTPROJECTS OF NOTE

$18.4M Heritage Square Parking

Garage

$59M Public Safety Training Facility

$62M Bridge & Roadway on Ocotillo

Elliot Road Intersection Improvements

Val Vista

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CITY OF SCOTTSDALECITY OF SCOTTSDALE Voters decline to support

infrastructure spending by the City voting down 4 bond questions in 2013, passing only a $28M question in 2015

Enterprise funds reign supreme

Projects Funded out of General Fund

Most projects are in year 1

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CITY OF SCOTTSDALEPROJECTS OF NOTE

$23M Val Vista Community Lake Reconstruction

$45M Granite Reef Watershed

McCormick Ranch Fire Station

Desert Hills Fire Station

Fire Station 616 – 110th & Cave Creek Road

$26.6M to Redevelop Airport Terminal

$25M Reverse osmosis water treatment Center

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CITY OF CHANDLERCITY OF CHANDLER 11.84% Decline in 5-yr

program

Bond sales from 2007 voter approval to fund Streets, Parks, Museums, and Public Safety

Philosophy of maintain what we have, don’t add to operating expenses C

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CITY OF CHANDLERPROJECTS OF NOTE

$6M McCullough-Price Museum

$4M Southeast Fire Station

$15.4M Queen Creek Rd – McQueen to

Lindsay

$11M Chandler Heights Rd – Arizona

Ave to McQueen

$7.3M Mesquite Groves Park Phase I

$135M Expansion of Ocotillo WRF

CHANDLER MUSEUM

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NEW MUSEUM RENDERING

CITY OF PEORIACITY OF PEORIA

19.62% Increase YOY

Northern part of the City is

pouring in new residents.

Without impact fees the entire

City is footing the bill for that

growth

Credit:: KPFF

CITY OF PEORIA COURTHOUSE

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CITY OF PEORIAPROJECTS OF NOTE $25M Parking Structure at P83 Innovation

Center

Renovate Main Library $4.5M

$42M Northern Community Park

$9M Fire Station #8 – 5+ years out

$19M Widening of Happy Valley Parkway

LPP to Aqua

$24M Jomax WRF Expansion – FY 21/22

$55M Pyramid Peak WTP – FY18-21Credit:: Peoria Eighty Three

CITY OF GLENDALECITY OF GLENDALEMany Projects are pushed out

past 5-yr horizon

High debt load from sports facilities, once that moves off the books, I expect things to speed up

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GLENDALE COURT HOUSE RENDERING

UNIVERISTY OF PHOENIX STADIUM

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CITY OF GLENDALEPROJECTS OF NOTE

$7M Parking Lot BHR & 95th Ave

Arrowhead Water Reclamation Facility Improvements

West Area WRF Improvements

Cholla Water Process Improvements

Pyramid Peak Water Treatment Plan

Light Rail Design

Beyond 5-yr Outlook Libraries

Fire Stations

Police Stations

Court Building

Parks

Trails

Pools & Aquatic Center Upgrades

Flood Control

Loop 101 Water Treatment Plant

59th Ave Improvements

Light Rail Construction ($99M)

Current 5-yr Outlook

CONCLUSIONSCONCLUSIONSLet the Good Times Roll!

Bonds aren’t the only game in town anymore

Programs with high levels of revenue will likely move projects into

planning/design

Macroeconomic trends of population growth and employment growth

are helping.

Federal Infrastructure Investment is Wildcard