#3 Bond for Capital Projects

Frequently Asked Questions:

Isn’t all of this covered in the infrastructure bill the federal government just passed?

No, the Infrastructure bill only covers transportation items (such as bridges and roads) and water resources projects. It will not cover fire trucks, emergency communications equipment, parks, etc.  Even for eligible transportation investments, the City will need to apply for grants and have the financial match required to apply – generally, 20% of the total value of the project. The City currently does not have the 20% required to match.

Why can’t we just wait?  Why does all of this have to be done now, especially before the school bond vote?

The City has had years of deferred maintenance. With the previous bond approved in 2016 we started to address that backlog but have not yet reached a sustainable level of annual repair work. Overdue capital repairs are more expensive than proactively managing our assets.  For example, rebuilding a street once the pavement system has totally failed is at least 70% more expensive than a straightforward resurfacing project. 

Didn’t we just pass a capital bond?  Why would we need another one now?

The previous bond was five years ago, and at the time, it was discussed that there is a continuing need to address deferred maintenance, and to continue to maintain our infrastructure. Our infrastructure ages each year and continuing to defer maintenance or rehabilitation compounds the severity of the needs. These bigger problems cost more money in the long run. The City will always need to continue to invest in our infrastructure to keep the City safe and welcoming place.  And as mentioned above, it is more cost-effective to maintain our assets rather than waiting for them to become a liability to the public or fail altogether.

What did we get for the 2016 capital bond? 

• Purchased 3 new fire trucks

• Improved over 15 miles of sidewalk (11.5% of the total network)

• Replaced 2.68 miles of curbing

• Resurfaced over 22 miles of our streets (23% of our roadway network)

• Improved heating, ventilation and insulation to many municipal facilities

• Rehabilitated almost eight miles of the bike path

• Improved transportation systems for walking, biking and public transportation – moving us towards our NetZero energy goals

• Renovated 645 Pine Street; creating a united, one-stop permitting hub

• Completed phase I of the renovation of City Hall

$1M is still a lot for Memorial Auditorium – why would I vote to put that much money into it?

The building has significant structural challenges and it must be stabilized to provide the time necessary to determine how it should be used in the future. It’s heating system is at end of life and must be maintained for fire liability reasons, and it requires security improvements to keep people out. In 2016 the estimated cost to stabilize was $1 million. With these limited dollars it will allow for the most important stabilization work to occur.  If the funding to stabilize the building is not secured through the prospective bond, building perimeter will need to be secured to protect the public and prevent against future liabilities.

Why would I vote for this bond without knowing how much the Burlington School District needs for the new high school?

The City and the school are working together to balance the funding that is allocated in both areas. It is important to continue taking care of all parts of the City, including both the high school as well as the City’s other infrastructure needs.  According to data presented to the Board of Finance the City has plenty of debt capacity for a new high school even with this $23.8M bond (which has been reduced by more than 40% from the original request).

How will approving this plan affect the Burlington School District’s capital needs?

The City will continue to work with the Burlington School District to find opportunities to improve efficiencies and further define where capital needs may be shared.

Thanks to many years of strong and responsible fiscal management, including creating and implementing a new debt policy, the City can take out this new GO Bond debt for infrastructure and retain significant debt capacity for a future bond to meet the School District’s needs and maintain a high rating from Moody’s Investor Services. 

What will I actually GET if I vote for this bond?  How will it affect my life in a positive way? 

Since the City has already committed to $2.8M of local match in projects already, without this bond we would need to raise that money in the general fund, which would be an additional $.05 tax increase.  This bond, which costs most homeowners just a few extra dollars a month on their property tax bill, is a more affordable way to meet those commitments.

The City will also have the needed local match to take advantage of the grants coming out of the Infrastructure Bill, meaning that our investments in streets, sidewalks and bridges can be multiplied. We want to use federal money to help Burlington’s infrastructure but the grants require a 20% local match.  That is what the bond will fund.  

The bond provides for three additional fire trucks and safety communications equipment that will be available to our first responders to help keep the City safe and to save lives. Without this investment, response times can be affected by fire trucks that need repair more often than not.

The bond provides for funds for sidewalk reconstruction and street paving to continue to maintain these vital surfaces across the City. Over the last five years, with the help of the last capital bond the City replaced 11.5% of our 130 miles of sidewalk. While that rate of replacement is a substantial and historical improvement, there is still a minimum of 5% (and growing) that remain in the “poor to failing” category.  There are approximately 350 Service Requests for sidewalk repair/replacement in queue for consideration.

The City also resurfaced over 22 miles, or 23%, of our roadway network over the last five years. Our goal is to maintain an average condition of “good” across the entire network to ensure a safe, ridable surface for not only passenger cars, but transit, commerce vehicles, bicycles, and crossing pedestrians.

Parks amenities, such as the marinas, will receive much-needed attention, including dredging. Not only is dredging good for the marina but it will ensure we have more marina slips are available, which will mean higher revenue for the City.  The bond will also allow playgrounds, that are past their replacement cycles, to include safety surfacing, which is universally accessible and safer for everyone. Fields and spaces that are well-utilized can also be better maintained for public use.

Isn’t all of this covered by the City’s general fund?  I mean, the City is also asking for a tax increase – shouldn’t that cover all this? 

These capital expenses are separate from the City’s general fund.  Currently the City’s Charter only provides an annual appropriation of $2M for capital, but the City has $28-$30M/year of capital needs.  The $2M/annual for capital has not been increased since 2013 and is not a sustainable level of investment for the size of the city.  This leads to a situation where the City must ask for a larger bond to keep up with regular capital expenses and address deferred maintenance.

How are capital improvements different than regular budget spending?

Capital assets are defined as those that are used in operations and that have useful lives of more than one year. Capital assets include land and land improvements, buildings and building improvements, vehicles, machinery, equipment, sewer, water and highway infrastructure.

How much will it cost me?

The additional costs for someone who owns a property at the median value is never more than $7 extra per month – please see below.

Are property taxpayers paying for the whole capital plan? 

No, we expect $23.8 million to be paid for by GO Bond proceeds, if approved by voters, and $111 million will come from other revenues including State and Federal Transportation Grants, Street Capital Tax, Traffic Revenues, Penny for Parks Tax, Annual Bonding, ARPA, and the Federal Infrastructure Bill. 

Included in the projected GO Bond spending is $4 million reserved for local match funds that will allow the City to leverage at least $60 million in State and Federal investment. With Federal Infrastructure dollars uncertain, we may need much more in local match dollars to secure future federal funds. This GO Bond will position the City well to capture additional funding if it becomes available.  

If we get more federal money in the future, do we need to borrow/spend all $23.8 million?

We do not need to draw down all $23.8 million if other funding becomes available.  And in fact, the question to voters contains the following condition, “if the City succeeds at securing other capital funds in excess of the current projections, which can be used in place of General Obligation bonding, the Administration will prioritize taxpayer savings as a goal with the additional condition that it may not reallocate bond proceeds to other investments, except with explicit City Council approval of the reallocation.”

Will this capital plan improve accessibility?

Yes, all improvements will take into consideration accessibility needs.  Capital projects completed during the initial five years of this Capital Plan improved the accessibility of our sidewalks, municipal buildings, bike path, and other assets. 

How will this address the climate emergency?

The bond supports the implementation of planBTV Walk/Bike and investments in City buildings that support our Net Zero energy goals. The GO Bond will support our goals to add more than 12 miles of new bikeways by 2026, in addition to advancing major walk/bike improvements like the Railway Enterprise Project, University Place, and a grant-funded side path at the Intervale. 

When will my sidewalk/street be repaired?

Over the last five years, the City has replaced 11.5% of our 130 miles of sidewalk. While that rate of replacement is a substantial and historical improvement, there is still a minimum of 5% (and growing) that remain in the “poor to failing” category.  There are approximately 350 Service Requests for sidewalk repair/replacement in queue for consideration.

The City has also resurfaced over 22 miles, or 23%, of our roadway network over the last five years. Our goal is to maintain an average condition of “good” across the entire network to ensure a safe, ridable surface for not only passenger cars, but transit, commerce vehicles, bicycles, and crossing pedestrians.

Before the Capital Plan was initiated, the City replaced one mile of sidewalk per year and spent $1 million per year on street reinvestment. With proceeds from the GO Bond, the City can maintain our current increased pace of sidewalk replacement of three miles per year (7% over the next three years) and street reinvestment of $2 million per year.