Capital Projects Funds

Fiscal Year 2021/22

Overview

Funds for capital projects are created to account for the purchase or construction of major capital facilities which are not financed by General, Special Revenue, or Enterprise Funds. Voter-authorized bonds, certificates of participation proceeds, intergovernmental agreements, and impact fees are the source of funds for these funds.

Capital Projects Funds By Fund FY2021/22


The funds below comprise Capital Projects Funds -

General Obligation Parks and Connections Improvement Fund

On November 6, 2018, the voters approved Proposition 407, a $225.0 million General Obligation bond package for capital improvements dedicated to City park amenities, connections for mobility, and greenways. The first bond series were issued in the Summer of 2020 in the amount of $57.0 million. These proceeds reimbursed the Mayor and Council-approved cash loan that accelerated implementation and design plans. Fiscal Year 2020/21 projects included additional playground shades, splash pads, walking paths, sports field lighting, and a variety of other park-specific amenities. The first set of connections projects started construction in spring of 2021. The second set of Phase 1 connections projects started construction in the Summer of 2021.


The budget for Fiscal Year 2021/22 is $40.0 million which is a decrease of $17.0 million from the Fiscal Year 2020/21 estimated amount.


General Obligation Parks and Connections Improvement Fund By Category FY2019/20 - FY2021/22

Capital Improvement Fund

The Capital Improvement Fund accounts for capital projects reimbursed by governmental agencies such as Pima County and Pima Association of Governments (PAG). Typical projects to be reimbursed by other agencies are street and highway and park improvements. The budgeted revenues for Fiscal Year 2021/22 are $44.5 million, which is a decrease of $26.7 million from the estimated Fiscal Year 2020/21 amount.


Capital Improvement Fund By Category FY2019/20 - FY2021/22

Development Fee Fund

The Development Fee Fund accounts for the capital projects funded by impact fees. Impact fees are charged to new development as a means of paying for the facilities and infrastructure needed to serve development. The City of Tucson currently assesses impact fees for water, roads, parks, police, and fire. The impact fees for water are accounted for in the Tucson Water Utility Fund. The budgeted revenues for Fiscal Year 2021/22 are $13.7 million, which is a decrease of $1.6 million from the estimated Fiscal Year 2020/21 amount.


Funding from impact fees will go towards various Parks, Transportation, Police and Fire projects in Fiscal Year 2021/22.


Development Fee Fund By Category FY2019/20 - FY2021/22

Regional Transportation Authority (RTA) Fund

The RTA Fund accounts for the capital projects approved with funding from the RTA. The RTA plan is funded by a countywide transaction half a cent sales tax approved by the voters on May 16, 2006, which is collected by the State of Arizona. The State, in turn, transfers the collected funds to a Regional Transportation authorized fund account managed by the Pima Association of Governments (PAG), the region’s metropolitan planning organization. The tax will fund the vote-approved RTA plan through Fiscal Year 2025/26.


Revenues fluctuate widely from one year to the next, depending on status of projects. Projects funded with RTA funds include design and improvements along major arterial and collector roadways within the City of Tucson. The improvements include street widening, storm drains, sidewalks, street lighting, bike paths and landscaping.


Regional Transportation Authority (RTA) Fund By Category FY2019/20 - FY2021/22