By Robert Taylor
Boerne City Council continued its summer budget workshop series at the July 9 meeting, hearing an update from staff on the City’s Capital Improvement Plan (CIP) and the proposed additional funding for projects in the fiscal year 2025 budget.
The CIP is a long-term planning tool that outlines the City’s strategy for funding and completing major infrastructure projects, which often takes years of future planning and occurs over multiple annual budgets.
Watch the full presentation to council.
Assistant City Manager Danny Zincke explained how the CIP aligns with the City’s goals of achieving excellent financial stewardship by investing in and maintaining high-quality infrastructure systems while advancing master plan recommendations.
The council will review and approve the CIP budget for the upcoming fiscal year, which runs Oct. 1, 2024 – Sept. 30, 2025. The CIP budget incorporates funding from various sources including cash, the general fund, utility funds, impact fees, developer contributions, bond programs, grants, and other governmental partnerships. Funding for routine infrastructure maintenance is included in other areas of the budget.
The council must also consider City staff’s capacity to advance these projects and whether to utilize outside resources or firms. Changes in economic conditions like inflation also impact the CIP evaluation each year.
CIP Project Overview
The council also received status updates and staff recommendations from Assistant City Manager Kristy Stark on several major projects listed in the Capital Improvement Plan. These projects do not include utilities infrastructure, which will be presented at an upcoming meeting.
Stark noted in a breakdown of funding that the City has $32,285,000 in available funding for CIP projects – money that has already been allocated to these projects. Staff is proposing an additional $2,100,000 in funding in the fiscal year 2025 budget for CIP projects.
The $2.1 million in additional funding would be applied to the following projects:
- Adler Road Culverts: $2 million
- Waterworks Terrace: $50,000
- Beautification | Urban Corridor Design Elements: $50,000
Stark explained that the information presented to council was a draft with anticipated changes before a final proposal is provided to council for adoption. She provided the following updates to major projects on the CIP.
Adler Road Culverts
This $6.25 million project includes the construction of two large culverts on Adler Road at No Name Creek and Currey Creek. It is included in the Drainage Master Plan and will alleviate flooding concerns in those areas once completed.
The bulk of the funding for this project will come from the federal government as part of the American Rescue Plan Act. The City of Boerne allocated just over $3.5 million of its share of the federal funds to the project. Kendall County is contributing a total of $1.5 million to the project, as well. They have already allocated $100,000. City staff is proposing an additional $2 million of funding for this project in the FY 2025 budget and is anticipating receipt of the $1.5 million from the county this year.
The culvert project is expected to be completed by fall 2025, before the start of the Adler Road bond project reconstruction and widening.
Adler Road Reconstruction | Bond Project
The $18 million Adler Road bond project calls for the reconstruction and widening of the roadway from Esser Road to Main Street to include a continuous center turn lane, drainage improvements, multi-use sidewalks, and a shared use path. The project was part of the 2022 bond program approved by voters.
Design for the Adler Road reconstruction is underway and will be done in coordination with the culvert project listed above and the Northside Community Park bond project, also along Adler Road. Funding is secured for this project through the voter-approved bond program.
Street Reconstructions | Bond Project
This project calls for the reconstruction of three of the worst rated roads in Boerne, including West Blanco Road, Parkway Drive, and West Kronkosky Street at an estimated cost of $1.6 million. These were included in the 2022 bond program approved by voters and are fully funded.
Bidding is expected to open this summer with construction expected to begin in late 2024 or early 2025 and be completed within three months.
Johns Road Roundabout at School Street | Bond Project
This $1.8 million project calls for the construction of a roundabout at the intersection of Johns Road and School Street to improve the flow of traffic and increase pedestrian safety. The project was included as a recommendation from the Kendall County Boerne Fair Oaks Transportation Committee. It was part of the 2022 bond program approved by voters and is fully funded.
The City will work with Boerne ISD to coordinate the bulk of the work to be completed in the summer of 2025 when school is out of session. Some of the work will take place during the academic year as the current project timeline is six months.
Northside Community Park | Bond Project
The Northside Community Park will be a flagship park for the City of Boerne along Adler Road. It is included in the Parks Master Plan and was part of the 2022 bond program approved by voters. Design work for the park is underway and will include an all-abilities playscape, multi-use fields with lights, pickleball courts, splashpad, community room, and much more.
The total projected cost of this project is $10,800,000. The City has $6.5 million dedicated to the project in the current budget. Funding is secured for this project through the voter-approved bond program. The project is expected to be completed in 2026 and will be done in coordination with the Adler Road bond project.
Plant Street Public Parking Lot
This $430,000 project calls for the redesign of the City-owned parking lot on Plant Street behind the Dodging Duck restaurant. It will be the first project to incorporate design elements from the Urban Corridor Design manual adopted by City Council earlier this year. The project includes repaving, improved entry and exit, wayfinding signage, and ADA compliance. It is fully funded and expected for completion in 2025.
Kinderpark Restroom
This $220,000 project calls for the construction and installation of a restroom at Kinderpark and was added to the CIP based on a multitude of feedback from citizen surveys. It is fully funded in the FY 2025 budget.
While supply chain issues have delayed delivery of the prefabricated restroom unit, work is expected to be completed in fall 2024. A new concrete pad and associated utility work are anticipated to begin in the coming months ahead of the unit’s delivery. The project will achieve ADA compliance with a new sidewalk from the structure to the parking area.
Fire Station No. 2
A 10-month design process on Fire Station No. 2 is underway. Once the design is complete, a two-month bidding process will occur to select the construction firm, followed by an expected one-year construction timeframe.
Funding for the design work ($1.36 million) is included in the current FY 2024 budget. To date, the City has set aside $4.1 million for the project, which is projected to cost $11,500,000. Additional funding for the construction will be added to future budgets and will include a $1 million contribution from the developer.
The new Fire Station No. 2 will be built on Esperanza Boulevard and will serve the eastern portion of the Fire Department’s service area. It is expected to be completed in 2026.
Buc-ee’s Way
Work on the Buc-ee’s Way roadway is expected to begin in the second half of 2024 to connect to Main Street at I-10. The City will work in conjunction with that project to relocate necessary utilities.
The City currently has $420,000 set aside for the $2.1 million project. It does not propose any additional funding in the FY 2025 budget. The City will pay $420,000 per year for five years to reimburse the cost of the road.
Ongoing City Initiatives
City staff are recommending contributions to two ongoing initiatives – Waterworks Terrace and Beautification – as part of the FY 2025 CIP budget.
Waterworks Terrace
This project is included in the Parks Master Plan and reimagines the site of the historic City pool next to Main Plaza. The project will be done in partnership with the community to include funding from other organizations. The design of the project is not complete, but proposals include water features, a pavilion stage, and other interactive features.
The City has continued to set aside money for this project and is proposing an additional $50,000 in the FY 2025 budget.
Beautification | Urban Corridor Design Elements
City staff is recommending an additional $50,000 in funding for the FY 2025 budget to be applied to beautification projects that incorporate Urban Corridor Design elements. While no specific projects are identified, these funds will be available for potential entryway features or to incorporate elements from the Urban Corridor Design manual into other projects.
Staff Recommend Funding Pause for Two Projects
Due to significant cost escalations, staff recommended pausing funding for two mobility projects: the Menger Creek Bridge on Old San Antonio Road and the Cascade Caverns Road project.
The City anticipated using federal funding through the American Rescue Plan Act for the Menger Creek Bridge project, but updated estimates show the project will cost approximately $11 million. Because of this increase, staff recommend applying the remaining ARPA funds to the Alder Road culvert project to ensure its timely completion.
The Cascade Caverns Road project has been included in the CIP for several years as the City works to acquire funding. The project was approved for funding from the Alamo Area MPO for a 70/30 cost sharing, with the City contributing 30 percent of the funding.
The initial estimate for this project was $9.4 million in 2021. A more recent estimate has grown to $43 million in 2024, which reflects a nationwide trend of extremely high inflation for nonresidential construction labor and materials as indicated by a recent publication from the National Bureau of Labor Statistics.
Due to this significant increase, City staff recommended pausing additional funding for this project in the FY 2025 budget. Stark said staff will be analyzing the increased cost estimates more closely and working with AAMPO to get more information to the council in the coming months.
Upcoming Budget Calendar
Below are key dates in the budget development process:
- June 25: City Council Meeting | Budget Outlook and Priorities
- July 9: City Council Meeting | Capital Improvement Projects Workshop and a presentation from the Kendall County Appraisal District
- July 23: City Council Meeting | Utilities Board Workshop
- August 9: City Manager files proposed budget with City Secretary, draft budget provided to City Council
- August 13: City Council Meeting | Governmental Budget Workshop
- August 27: First public hearing on budget and tax rate
- September 10: Second public hearing on budget and tax rate and adoption of budget and tax rate
