MARCH 14, 2008

DECIDING PRUDENT BORROWING FOR CAPITAL PROJECTS

Just as homeowners determine capital improvements, so does government, mostly with public health, safety, economic development and community projects. Decisions are weighed on needs versus wants, priorities, costs, timelines and market conditions.

The County will need to borrow approximately $50,644,410 – perhaps more - to accomplish the 2008 projects outlined by the executive in response to the Legislature. Public investment in capital projects requires prioritized planning and routine tracking of their progress and project completion reporting.

Timely project implementation will also need to be followed jointly by the Comptroller and the Control Board. The previous lack of a decision about who would borrow has left capital projects management in a state of confusion. Delays intensify the need for further improvement in capital projects scheduling and progress reporting and demand clarification of the status of projects for 2007.

The Legislature will address what amount of borrowing is most reasonable relating to previous year debt obligation reduction. The 2008 budget plans to pay off about $67 million in general debt (principle and interest), and almost $6 million for sewer districts. The Finance and Management Committee will review the status of 2007 project borrowing and earmarked 2008 projects to determine the amount to be submitted to the bond market.

These are the items identified by the County Executive's Office:

GENERAL PROJECTS: Ralph Wilson Stadium ($2,800,000), Botanical Gardens ($1 million), Convention Center renovations ($5 million), code compliance ($700,000) and county buildings roof replacement ($700,000), highway vehicles replacement ($700,000), and Old County Hall rehabilitation ($500,000).

HIGHWAY PROJECTS: Capital overlay ($3,800,000); Federal aid road reconstruction ($1,002,100), intersection improvement ($181,150), road design ($116,160); unanticipated road and bridge construction ($75,000) and design ($10,000); FEMA road reconstruction ($485,000) and design ($95,000); Hopkins Road construction ($790,000) and design ($225,000); and preservation of roads and bridges ($11,500,000).

SHERIFF: Correctional Facility roof ($2,500,000) and video surveillance upgrades ($175,000); renovations to Yankee Compound ($800,000); Holding Center medical unit renovations ($150,000), roof replacement ($2,500,000), and improvements ($500,000); and health records module upgrades ($700,000).

PARKS: Improvements to Chestnut Ridge Park Casino ($750,000) and Wendt Beach Mansion ($150,000).

DIVISION OF INFORMATION: computer replacement and upgrades ($1 million), data information storage ($300,000), SAP expansion ($160,000), business/disaster planning ($250,000), and fiber optic network ($290,000).

HEALTH: Medical information system ($900,000), security improvements at clinics ($200,000), Medical Examiner cooler/freezer system replacement ($155,000) and X-Ray equipment replacement ($85,000).

EMERGENCY SERVICES: Public Safety communications ($1,400,000) and Training Center renovations ($2 million).

LIBRARY: Replace Fuel Tank – Parking Lot – Storage Space ($150,000).

ENVIRONMENT & PLANNING: Times Beach improvements ($100,000) and bicycle trail construction ($300,000).

BOARD OF ELECTIONS: voting machines ($500,000).

COMMUNITY COLLEGE: equipment ($1,800,000), building restoration ($700,000), Campus security ($700,000), and Flickinger roof replacement & HVAC equipment ($1,750,000).

The 2008 County Budget proposed seven other projects, not currently included in the executive's list, such as Frank Lloyd Wright boathouse ($800,000), Buffalo Zoo ($1 million), Clerk's office purchase of equipment ($100,000), Bethlehem Steel site redevelopment ($2 million), downtown library escalator replacement and asbestos removal ($2.23 million), more than $500,000 cut from bike trails, and over $800,000 removed from bridge projects. Also not included was a legislative request for $500,000 toward city of Buffalo roads.

Your comments are encouraged for these important community decisions through marinelli@erie.gov.

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