Agenda - Council - 01/25/2011 - Laserfiche WebLink

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CC Regular Session Date: 01/25/2011 By: Diana Lund Finance Information Item #: 6. 1. Title: Public Hearing and Request for Adoption of City of Ramsey 2011-2015 Capital Improvement Plan Background: The Capital Improvement Plan (CIP) is a long-term financial plan of a least five years that consists of projects and facilities that are, or will be needed by the City in carrying out the future needs for the public health, safety and welfare of the city. The CIP has been prepared in an attempt to anticipate major capital expenditures in advance of the year in which they are budget requests. Further, several projects may interrelate or require other improvements prior to initiation which would cause delays without prior planning Additionally, projects may require budgeting over several years or receipt of funds from other sources (i.e. grants) requiring planning completion prior to the funding year. Finally, the plan enables a snapshot of the identified capital needs of the community allowing for continual prioritization of these needs. Approval of the CIP by Council does not authorize spending or initiation of a given project. It does, however, provide a guide for the community for a whole array of private and public decision -making, impacted by public capital expenditures. Therefore, the CIP should receive ratification only if the Council perceives actions contemplated within the plan as reasonable and planned within justified time frames. It shall further be noted that initial project design of public infrastructure projects identified within this plan often begins two years or more prior to the date of construction. The CIP is not intended to provide for precise budgeting. Capital costs are projected as estimates. Upon each update of the plan, deletions, additions, delays, or other revisions may occur, reflecting changing community needs. These changes allow for budget refinements as a particular project nears actual construction. The plan does not contain a specific designation which denotes project priorities. There is no weighting or matching of priorities between infrastructure types [streets, parks, utilities, building facilities] as each type of project generally has a funding source unique to the project type and from which funds cannot be reallocated. All projects designated within the Capital Improvement Plan are listed at total cost. The funding source for each project may include city funds, grants, developer fees, bonding, etc. At an earlier worksession, council had requested to see the effect of 2011 projects only. The 2011 section of the CIP with a summary of total 2011-2015 projects is attached for review. Notification: The 2011-2015 Capital Improvement Plan will be placed on the City's web page after adoption. Recommendation: Staff recommends adoption of the 2011-2015 Capital Improvement Plan noting that this is a forecasting tool and not actual, committed projects and expenditures.