5.2. SR 08-13-2007 - Laserfiche WebLink

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MEMORANDUM TO: Mayor and City Council FROM: Tim Simon, Finance Director DATE: August 13, 2007 SUBJECT: 2008-2012 Street Capital Improvement Program The purpose of this meeting is to provide information regarding projects proposed for funding in the 2008-2012 Capital Improvement Program (CIP) which will be adopted later this fall. City Engineer Terry Maurer would like to discuss a 2007 project which will be discussed in conjunction with the 2008-2012 CIP. There are a number of projects being proposed in which we identified the resources available to fund these projects. To meet the number of projects being proposed, the Council is asked to consider combining capital project fund 401 (Capital Projects Fund), 403 (Street Improvement Reserve), and 408 (permanent Improvement Revolving Fund) into one capital project fund designated for street improvements/ capital projects. While all three funds are treated in a similar fashion today, one or two funds would make reporting and tracking the reserve balances easier for the Council. Once all three funds are combined into one street/capital project fund, I would propose to establish a minimum cash reserve amount for unexpected expenditures/projects. That amount would be at a minimum of $1,000,000. With that in mind, the 2008-2012 street CIP has been formulated to maintain the minimum cash level. Part of the challenges and timing of these proposed projects are the projects committed to in 2007, which are the 2007 street improvement reconstruction project and the 193rd Avenue project. With the 193rd project the City Council committed over 5 years of Municipal State Aid to the project. The 2007 reconstruction project added over $100,000 to the tax levy for the next 10 years. With that in mind, the 2008-2012 CIP is constructed to maintain the reserve requirement and priority of the projects being proposed. There are always projects that will come up as being unfunded with the long-term planning that takes place with as-year CIP, the Council can re-prioritize the proposed projects on a yearly basis and adjust the CIP. I have attached copies of the 2008-2012 CIP being proposed and the additional 2007 CIP request form for the Jackson/Main Street overlay project. While this is a great tool for long- term planning of the street projects, we will again review the proposed projects in the 2009- 2013 CIP next year.