City readies $40 million for projects

The Charlottesville government is proposing to spend nearly $39.8 million on its largest projects next fiscal year, more than double the current amount, mainly because of federal and state funding for a new interchange at the U.S. 250 Bypass.

The draft fiscal 2011 Capital Improvement Program shows that the city is getting nearly $22.2 million in federal and state money for the grade-separated interchange that will serve as the endpoint of the controversial Meadowcreek Parkway. The city would also provide $1.5 million in matching funds, according to the proposed allocations.

Projects in the CIP usually cost at least $50,000. But apart from the interchange, the list of pricey projects is relatively slim.

Only a few individual items would meet or exceed the $1 million mark in spending — $4 million for a new fire station in the Fry’s Spring neighborhood; $1.5 million for street reconstruction; close to $1.1 million each for schools and facilities capital projects; and $1 million for the Charlottesville Housing Fund for affordable housing projects.

The Charlottesville Planning Commission reviewed the proposed expenditures at a work session Tuesday. Commissioner Dan Rosensweig, who is also the executive director of the Habitat for Humanity of Greater Charlottesville, said $1 million for the housing fund was not adequate given the area’s lack of affordable living choices.

“$1 million is a fairly arbitrary number,” he said.

Other proposals include spending $600,000 to rehabilitate the city’s stormwater infrastructure, $400,000 for Downtown Mall renovations around the Omni Charlottesville Hotel, $300,000 to build new sidewalks, $200,000 for improvements in the Belmont neighborhood and $100,000 for parkland acquisition.

Some commissioners indicated they would like to see more finances devoted to purchasing parkland, which has been defined as a top priority for CIP spending. Commissioner Bill Emory said the city has been fortunate because residents and developers have given land to expand the park system but “it would help to actually have a budget.”

Parks and Recreation head Brian Daly said he originally asked for $1 million to buy more land in fiscal 2011, but Ryan Davidson — the city’s budget and utilities analyst — said those developing the budget did not think that the city’s revenue situation allowed for that much funding next year.

“We have to balance the available funding against all the projects that are out there,” Davidson said.

Daly said that while $100,000 would not allow the city to make any large purchases, “it is a start.”

The city’s current budget for capital projects is $16.3 million, a sharp drop from the $29.3 million that was allocated in fiscal 2009. Officials said funding for the city’s capital projects took a hit because of the down economy.

According to a Nov. 17 memo sent to the Planning Commission, the city is expecting to have a budget deficit of $2.8 million by the start of fiscal 2011, which begins July 1. The estimate is the exact amount that councilors set aside in an economic downturn reserve in the current budget.

“We have to find a way to reduce that gap,” Davidson said. “Nothing’s off the table.”

The proposed CIP will be presented to the City Council in March along with the rest of the fiscal 2011 budget.