3. Updates from Environmental Investment Plan effort and City Budget — original pdf

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Austin Climate Equity Plan “Environmental Investment Plan” Update August 29, 2024 1 Timeline of Events February 2024 - Resolution Directing staff to create the Environmental Investment Plan March - May - Staff creates 70 project proposals April - JSC Passes 33 EIP recommendations May 24 - Sub-quorum releases letter stating their priority projects May 28 - Presentation to Council Work Session on the Staff Response May 30 - “Public Hearing” on the EIP July 18 - Item 93 - IFC Directing the Creation of a Comprehensive Climate Implementation Program Aug 14 - Item 24 - Budget IFC Directing the Creation of a Land Acquisition Fund 2  Environmental Investment Plan - Resolution 20240215-025 Reaffirm commitment to net-zero by 2040 Prepare capital improvements or programs that would: 1. Reduce carbon emissions 2. Decrease water usage and improve water quality and detention 3. Advance the sustainability of City Operations 4. Improve Community Resilience Review funding sources: ● Utility rates and fees ● General Fund Expenditures ● Grants ● General Obligation Bonds Joint Sustainability Committee (JSC) public hearing and submit recommendations to Council 3 May 24 - Letter to City Manager from Fuentes, Alter, Alter, Ellis, Velasquez We have identified key priorities in the attached table that are far enough in their development to be considered for action this year, including a focused 2024 General Obligation Bond package. While some items within the comprehensive list will require additional development for the 2026 bond package... We are not proposing that every item attached ultimately be in a bond, but by focusing our efforts now, we will be in a better position to make a final decision on what items simply cannot wait for the future and need our attention now. A number of identified proposals are within the purview of our utilities, which can fund these programs through rates. Lastly, we would like to focus on a few priority general fund supported programs also identified below. However, given the limited general fund dollars currently available, we intend to explore how and to what magnitude the proposed climate fee could fund these priorities. 4 Resolution 20240718-093 The City Manager is directed to schedule and conduct public briefings as needed to be presented to Council to provide information regarding the City's current bonded indebtedness and bond ratings for the purpose of planning future bond proposals. The City Manager is directed to bring to Council two items: 1) a comprehensive bond package that funds and addresses climate, infrastructure, and any other public improvements for the purpose of conducting an election no later than November 2026, and 2) a comprehensive climate implementation program of which one component is a climate bond proposition contained in the comprehensive bond package. 5 Resolution 20240718-093 The City Manager, as a part of the comprehensive climate implementation program, shall provide a detailed and thorough means for investing in our climate. These means should include, but not be limited to, land acquisition that can achieve multiple goals, water conservation that accelerates and expands Austin Waters five-year plans, tree planting, heat resilient and other green infrastructure, local solar and battery storage, capital projects that reduce emissions from concrete and other sources, flood mitigation, charging infrastructure to advance decarbonization of City vehicles and high-emissions equipment, and sustainability and resilience of City facilities to reduce water usage and provide resilience to extreme temperatures. This implementation program should build on and implement previous recommendations, including, but not limited to the: EIP, JSC Recommendations, and 13 other City Plans 6 Resolution 20240718-093 Funding for this implementation program shall not be limited to general obligation bonds but should identify other funding mechanisms, including federal grants for sustainability and resilience programs, innovative ways to leverage the City's fee schedules and utilities and enterprise departments, cost sharing with other jurisdictions and entities, and general fund expenditures. The City Manager shall provide Council with regular updates on the progress of the comprehensive climate implementation program, relevant community engagement, and steps taken towards including a climate bond proposition as a component of a comprehensive bond election. 7 Resolution 20240814-024 The City Manager is directed to create a dedicated land acquisition fund that the City can utilize to acquire land for parkland, protecting the City’s water supply, improving drainage, and mitigating flood risks, using certificates of obligation and other future debt. When analyzing proposed uses for this fund, the City Manager shall prioritize acquiring land that has additional environmental benefits, such as reducing the City’s carbon footprint, increasing the City’s resilience to the effects of climate change, or protecting sensitive ecosystems that are vulnerable to local development. The City Manager is directed to consult with all relevant departments when considering a proposed purchase of land, to assess any cross-departmental benefits that could be derived from such a purchase, and to use that assessment of the cumulative cross-departmental uses as the basis for prioritizing land purchases. From Item 6 - CIP Debt $50 Million 8 Next Steps ● Creating a Project Plan & Timeline to create a Comprehensive Climate Implementation Program ● Coordinating and Participating with Capital Delivery Services on the Bond Development Process ● Connecting with Real-Estate, PARD, Watershed, and Austin Water on the Land Acquisition Fund Plan ● Starting back up Quarterly Council Work Session Briefings on the Climate Equity 9 Thank you! Z A C H B A U M E R Chief Sustainability Officer Office of Sustainability 10