Cover reportMEMORANDUM
TO: CAPITAL IMPROVEMENT COMMITTEE
19.101 LTA ►141We] I11.1
SUBJECT: 2020 — 2024 CIP PLAN
DATE: JULY 9, 2019
Following this cover memo is a working draft of the report that would be the end product of the
Committee's work. The report would then go the Planning Commission for review for
consistency with the Comprehensive Plan and then to the City Council. In the past the CIP plan
was approved at the same time as the operating budget for the following year; however, the
City Council must set the maximum levy for 2020 by the end of September so any additional levy
funding for capital projects would need to be included in the maximum levy.
In the draft report I have highlighted a number of areas that bear discussion by the Committee
and the Committee should take action on these. It might be helpful to work through the
individual funds initially and then discuss the overall impacts which are shown on pages 4 and 5
of the draft report. The Committee will need to either prioritize expenditures or recommend
addition revenue in order to accomplish the projects as currently shown.
In the 5 -year plan there are 2 equipment acquisitions that would typically be financed through
the issuance of equipment certificates and I have preliminarily included an assumption that the
construction work on the Community Center would be funded through the issuance of debt.
There are unresolved issues with regard to rate increases for the two sewer funds that the
Committee should address in terms of making a recommendation. Additional clarification is
needed in the Local Road Improvement Fund based on the minutes of the previous meeting
where future projects would entail either complete reconstruction or mill and overlay of the
road surface. As written this would be a change in approach from the previous
recommendation that led to the 2018 road projects where the City chose to reclaim the existing
asphalt and pave instead of complete restoration. The enabled the City to significantly reduce
the cost per mile and allowed the program to address more of the roads which needed
attention.