5.4. SR 10-13-2008 - Laserfiche WebLink

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Item # 5.4. aty E Kiver MEMORANDUM TO: City Council FROM: Lori Johnson, City Administrator DATE: October 13, 2008 SUBJECT: Capital Improvement Plan Attached is the draft 2009 - 2013 Capital Improvement Plan (CIP). The CIP covers all major capital expenditures including street projects, major building repair and new building construction, fleet purchases, and park development. Staff will be prepared to go over all of the projects included in the CIP in detail at the worksession. In addition, Public Works Director Terry Maurer will present a transportation update as part of the discussion on proposed street improvement projects; his transportation update memo is attached. A memo from Finance Director Tim Simon addressing financing the projects in the CIP is also attached. Although the CIP covers five years, much of the discussion will focus on the improvements programmed for 2009. When drafting the CIP, two main factors are taken into consideration to determine what year projects are programmed in the CIP: need/priority and available funding. As funding or need/priority changes, the timing of the project in the CIP will also change. The funding and priority ranking for projects programmed in 2009 axe less likely to change than projects funded in years 2010-2013. Therefore, there is no guarantee that projects programmed for future years will be completed as programmed; some of these projects maybe delayed or scaled back depending upon the need/priority and financial situation at the time the improvements are planned. The financing method for projects varies depending upon the type of project. The City has taken the approach of minimizing the tax burden for projects by financing as many projects internally as possible. For years the City has been setting aside money in reserve funds to pay for improvements without issuing debt; however, there are some projects that simply cannot be funded entirely through reserves. These require issuing debt that is repaid through the tax levy. As each of these projects requiring the issuance of debt comes forward, the Council must determine whether the timing is right to levy and what is an acceptable amount to levy. Therefore, depending upon the tax and economic climate, those projects relying on a tax levy may either be scaled down and phased in or delayed. One such project is the Public Works building expansion that has been discussed for many years. This is a very