The Town Council did a review of proposed capital improvement projects totaling about $8.4 million programed for the 2017/2018 fiscal year budget for the town. The bulk of that falls to two major projects that have been in the works for years and are approaching the bidding process.

Even accounting for nearly $5.8 million of the budget, the council had no inclination to back away from those projects; the relocation of Fire Station #2, and the construction of the Preserve trailhead in Adero Canyon. However, council members did ask that several other proposed projects be deferred to future years.

The ones that fell into disfavor included a proposal discussed just a week before to create a significant entry point into Fountain Park from Saguaro Boulevard at the Avenue of the Fountains intersection.

The deferred plans cut just over an estimated $1 million from the capital proposal for the year.

Besides the $250,000 park improvement, the council deleted a Shea Boulevard widening study ($130,000), alley paving along Colony Wash ($255,000), improvements to unused space in Town Hall ($100,000), walkway repairs in Centennial Circle ($150,000) and drainage improvements in the Civic Center area to address issues created with the development of the Community Garden.

The council did ask staff to continue work to bring a plan for lighting improvements to the Avenue Plaza, also discussed with the park improvements that were rejected ($100,000).

The council also gave the green light to drainage improvements to correct erosion issues at the Shea Boulevard overlook ($50,000) and the installation of chiller equipment that was ordered during the current fiscal year. This project may be completed by the end of the fiscal year making the delay to next year unnecessary ($50,000). Also included were making landscape changes to correct a drainage issue in Fountain Park at Panorama Drive and El Lago Boulevard ($50,000). Mayor Linda Kavanagh asked to hear different options for this project.

Proposed projects also include installation of new video security cameras at parks and Centennial Circle ($50,000), design report for Fountain Hills Boulevard widening ($100,000), Fountain Hills Boulevard shoulder paving ($550,000) and replacement of wayfinding signs throughout the community ($100,000).

Another project would improve the area of Fountain Park just off the Plaza Fountainside concourse. Efforts to get turf to grow in this plot between the walkway and the Splash Pad have failed.

The new plan would include a combination of artificial turf and pavers to create an activity area for games, events and even a wedding venue option for the park.

The estimated cost for this project is $265,000. At the suggestion of Councilman Dennis Brown, staff was asked to proceed with a plan to develop this area in two phases, starting with the portion to the south where there is no turf.

Councilman Alan Magazine continued to express his concern that by including nearly $10 million in the budget for capital projects, the council would be turning off the public to respond to potential new revenue options to support the operations budget.

It was noted that there is significant differences in how capital and operations funding is acquired. Capital improvements usually come from one-time sources such as transfers of budget surplus year-to-year, grants, development fees and a couple of tax programs the town has. Some projects are also done with bond funding.

The town’s issue with operational funds is that they come overwhelmingly from a single source – sales tax revenue, which can be unstable. Also, the largest operational expenses, public safety costs, are projected to continue to rise, while revenues will not keep up.

Staff will refine the capital improvement numbers for the draft budget due out in April. The new budget will be finalized in June in time for the start of the new fiscal year on July 1.