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TOP CAPITAL PROGRAMSTOP CAPITAL PROGRAMS
By Rebekah MorrisArizona Builder’s Exchange, LLC
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 ($475M) – (last year’s totals)
TRENDS OVER TIME
0
1000
2000
3000
4000
5000
6000
7000
ADOT Phoenix Valley Metro Mesa Maricopa County Gilbert Tucson Scottsdale Glendale Chandler Tempe Peoria
Historical View of 5-yr CIP Totals
FY13 FY14 FY15 FY16 FY17-21 ($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
Cre
dit:
ADO
T
Cre
dit:
ADO
T
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
Cre
dit:
Rac
hel K
ette
nhof
en/A
ZBEX
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
Cre
dit:
City
of M
esa
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
Cooper
Cre
dit:
Mar
acay
Hom
es
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
Cre
dit:
T.Y.
Lin
Inte
rnat
iona
l
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
redi
t: Je
rem
y Po
ehls
Rea
ltor
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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
Cre
dit:
City
of C
hand
ler
Cre
dit:
City
of C
hand
ler
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
Cre
dit::
City
of G
lend
ale
GLENDALE COURT HOUSE RENDERING
UNIVERISTY OF PHOENIX STADIUM
Cre
dit::
Imag
eSer
enity
.com
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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
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