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Ikiver <br /> <br />MEMORANDUM <br /> <br />Item ~ 8 <br /> <br />TO: <br /> <br />Mayor and City Council <br /> <br />FROM: <br /> <br />Pat Klaers, City Administrator <br /> <br />DATE: <br /> <br />September 23, 2002 <br /> <br />SUBJECT: CIP Worksession <br /> <br />Attached for your review is the first draft of the Capital Improvement Program (CIP) for the <br />worksession on Monday, September 23, 2002. Also attached is a memo from Finance Director <br />Lori Johnson, which explains the format of the CIP and the basis for how the material was <br />put together. Lori did a great job of putting all of the information and requests from <br />department heads into an understandable format for the City Council review and discussion <br />on priorities. <br /> <br />The Council is requested to note that this CIP is based on requests from department heads <br />and that the city will very likely not be able to afford all of these requests. Individually, the <br />requests from each department seem reasonable, but collectively it becomes very difficult to <br />afford. <br /> <br />Another point to note is that some projects will skew the bottom line or make the total <br />expenditures seem out of proportion. Items such as the city hall remodeling/construction <br />project in 2003 make the total expenditures for 2003 significantly more than 2004-07 years. <br />Also the pavement rehabilitation program is an every other year project so this expenditure <br />makes the 2003, 2005, and 2007 total amount seem high or conversely, the 2004 and 2006 <br />expenditure totals seem low. Additionally, it is important to look at the source of funds for the <br />projects in order to get a complete picture and understanding of what is taking place on a <br />year-to-year basis. For example, some street projects may be entirely financed with MnDot or <br />federal dollars and/or city MSA dollars, and there will be no use of city tax money or city <br />reserves on the project. Accordingly, while the total for the street project (and the total <br />expenditure for that year) may seem high, the source of funds for the project will make the <br />situation acceptable. <br /> <br />As the city is unlikely to be able to afford all of the requests, it should be acknowledged that <br />some of 2003 requests will "slide" into 2004 requests. Also, projects and programs are <br />constantly changing and this will lead department heads to make revisions to their requests <br /> <br /> <br />