With a split 4-3 vote, the Town Council officially erased a proposed capital improvement project from the books during its regular meeting on Tuesday, Feb. 21. It is unusual for a project to be removed from the budget plan in the middle of the fiscal year.

With the 2022/2023 fiscal year budget the capital projects plan included funding for engineering and design work for a proposed roundabout at Saguaro Boulevard and Avenue of the Fountains, as well as improved pedestrian access into Fountain Park at that intersection. The capital budget had included approximately $391,000 for the two design projects.

Councilwoman Hannah Toth proposed the request that the funding be removed and stated she believes that with the known substantial backlog of street/pavement maintenance work, the council needs to look at all funding objectives that can be delayed or diverted into streets.

Councilman Allen Skillicorn asked Public Works Director Justin Weldy how long it had been since existing improvements at the intersection had been completed. Weldy said it has been eight years since the reconstruction of Saguaro Boulevard and three years since a mill and overlay repaving of Avenue of the Fountains was completed. An additional seal coat was put on Saguaro this past year. Skillicorn asked about the expected lifespan of the existing improvements, and Weldy said 25 years with proper maintenance.

Skillicorn said he cannot support tearing up the intersection with an extended life expectancy for a roundabout. He also stated he does not necessarily oppose a roundabout at the location.

Councilwoman Sharron Grzybowski said she doesn’t understand why the item was even on the agenda.

“We agreed in September that we would postpone discussion related to this project,” Grzybowski said. “I really do feel we need better access into Fountain Park.”

She said the plan is not a “stairway to heaven,” as described by members of the public opposing it. She said it would be an amphitheater with seating for people to take in park activities and events. A gradual sloped walkway would provide easier and ADA compliant access down the current steep embankment.

Vice Mayor Peggy McMahon agreed with Grzybowski.

“I don’t think this should be removed from the capital budget,” McMahon said. “This has been part of a downtown plan since 2009. I think the existing roundabout (La Montana and Avenue) works well, and we have poor access to the park.

“This is a need, not a want. It is not an irresponsible or frivolous request.”

McMahon continued in challenging the positions of Skillicorn, Toth and Councilwoman Brenda Kalivianakis and causing a disturbance in the meeting. Skillicorn and Kalivianakis called out for a point of order saying McMahon was diverging from the subject of the agenda item. Mayor Dickey gaveled for order and Town Attorney Aaron Arnson said McMahon could continue.

Jerry Butler, a retired engineer and member of a citizen’s committee evaluating the condition of streets and developing a plan for maintenance work, asked that the council consider delaying its action. Butler said he was speaking only as a citizen and not representing the committee.

“We have been working on this for 18 months and will report within a few weeks,” Butler said. “There are a lot of complexities in what we are doing. Please give (the committee) the courtesy to finish our task, then address the concerns.”

Kalivianakis said she respects the work the committee is doing, but said they have a commitment to the people to address the streets.

“The streets are damaging people’s cars,” she said.

Mayor Dickey, Vice Mayor McMahon and Grzybowski supported keeping the plan in place. Councilman Gerry Friedel joined those in opposition.

CIP process

Each year during the budget process Town staff prepares a proposal for capital improvement projects for the coming year. Costs are best estimates from staff. The council considers the CIP plan to be included in the budget.

The amounts are in the budget to allow the projects to go forward if it is feasible. There is no requirement that budgeted funds be spent, but if funding is not in the budget a project can’t go forward. Each project returns to the council at various stages – before going to bid and before a contract is awarded. Each time the council sees the item it has the opportunity to reject the project. Bid costs or changes in priorities are often reasons for deferring work.

Items are not usually removed from the budget during the year. They may be deferred to a later fiscal year, partially funded for the current year, or simply removed from the plan the next year. Town staff does work with a five-year capital project outlook.

According to Town Finance Director David Pock, funding/budget for a capital project may be reallocated/transferred by council at any point during the fiscal year. If the funding for a specific project is not used, then that funding is rolled over to the next fiscal as capital projects fund balance and is available for use on other projects.

“For example, the FY23 funding and budget for the AOTF/Saguaro roundabout could be reallocated/transferred to another project this year if council directed,” Pock said. “If it is not, then that funding will remain in the capital projects fund and become available for projects next year. The council could also move that funding to another fund (i.e. Streets Fund) at any time.”

In the case of the roundabout project, staff considered and council agreed that if the Town were able to develop the engineering and construction plans for the work, it would have a greater opportunity to obtain grant funding for construction, which can amount to as much as 70% of construction costs.