Capital Improvement Program

Unlike the City’s operating budget, the capital improvement budget does not conclude at the end of each fiscal year. Many of the larger projects remain in progress for multiple years. As economic conditions and the needs of the Forney community change, it is often necessary to reprioritize which projects receive funding. Capital improvements are defined as facilities and infrastructure that have a life expectancy of three or more years and are owned and operated by or on behalf of a political subdivision. Generally, CIP Projects are relatively expensive and non-recurring, have a multiyear useful life, and result in fixed assets. This includes construction and acquisition of new buildings, construction and reconstruction of streets, water and sanitary sewer improvements, drainage improvements, and land purchases. Occasionally, studies and master plans that will impact land use, facilities, and infrastructure are accounted for as part of the CIP. The purchase and replacement of vehicles and equipment are not included with capital projects but are fixed assets. Information on General Fund fixed assets can be found in the Capital Purchases Fund. Capital purchases for the Utility Fund and the Economic Development Corporation Fund can be found within each of those funds. PLANNING PROCESS

Factors considered in the evaluation of capital projects: • Community Economic Effects • Fiscal Impacts • Whether an urgent need or opportunity is present • Alignment with City Council Strategic Plan • Implications of deferring the project • Amount of disruption and inconvenience • Environmental, aesthetic and social effects • Health and safety effects • Feasibility, including public support and project readiness • Advantages that would accrue from relation to other capital projects

Capital Projects are requested by the Department Directors as part of the annual budget process. Requests are submitted and then reviewed by the City Manager’s Office and finance staff. Projects approved by the City Manager are then presented to the City Council along with the annual operating budget for final approval. The Capital Project Five Year Plan is also reviewed and updated at that time.

Occasionally, the need arises to add a new project outside of the annual budget process. When this occurs, the project is presented to the City Council through the regular budget amendment process. The Capital Improvement Program is comprised of five funds: • General Fund Capital Improvement Fund • Utility Capital Improvement Fund • Tax Increment Reinvestment Zone (TIRZ) Fund • EDC Capital Improvement Fund - The information on the EDC Capital Improvement Fund is included in the Economic Development Corporation section. • Fox Hollow Public Improvement District

The City of Forney separates capital improvement projects into several categories within these funds:

GENERAL CAPITAL IMPROVEMENTS o Roads, Signalization, Drainage o Parks & Recreation o Technology o Facilities o Combination Projects – These are capital improvements to the City’s roadway, water and/or sewer systems that are performed together in order to reduce cost and time spent on the project.

UTILITY CAPITAL IMPROVEMENTS o Water o Sewer o Combination

COMPLETED PROJECTS

The following capital projects were completed during Fiscal Year 2022. • Community Development/Public Works Expansion - $1,888,047 • Gateway Sewer Participation Agreement - $4,014,843 • Community Park Field Resurfacing - $58,090 • Future Land Acquisition for City Facilities - $724,986

REVISED PROJECTS

The following capital projects were revised during Fiscal Year 2022. • EnerGov – project canceled • Warning Sirens & Fiber Ring – change in scope • Community Park Christmas Lights – project canceled • Fire Station #1 Remodel • Fire Station #1 Covered Parking • Fire Station #2 Drainage

The EnerGov project was canceled with no remaining budget. The Community Park Christmas Light project was also canceled with $472,868 in unused funding. The Forney Economic Development Corporation received $200,000 of those funds with the remaining $272,868 being returned to the General CIP fund balance for future projects.

There was a substantial change in scope for the Warning Siren & Fiber Ring project resulting in a savings of $2,704,027. The Utility Fund received a reimbursement of $1,146,138 while the remainder, $1,557,889, was returned to the General CIP fund balance for future projects.

The three Fire Station project budgets were combined into a single project for the Fire Station #1 remodel.

The City Council authorized several capital improvement projects during FY 2022 from unobligated fund balance in both the General CIP Fund and the Utility CIP Fund. • Fire Station #2 Upgrades - $6,700,000 • Interim Fire Station #3 - $1,300,000 • Land Acquisition - $2,702,256 (completed) • Ranch Road Extension - $350,000 • FM 548 Widening Utility Relocate - $229,446 • SCADA Upgrade - $526,199

ACTIVE PROJECTS

NEW PROJECTS