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CASE # 4 CAPITAL IMPROVEMENT PROGRAM PROGRESS REPORT By: Jessie Hart, Finance Officer Background: The Capital ImprOvement Program (CIP) is reviewed on an ongoing basis throughout the year with changes review~ and authorized by City Council. Annually, an updated CIP is presented to Council for adoption. The CIP covers the current year and extends out over a five to seven year period of time. Each project listed on the CIP has an identifiable funding source. At this time, we ,would like to provide a short progress report on the CIP process for 1995 to 2000. We are in the process of preparing cash flow projections for the various funding sources to determine the abi[lity to support the projects that will be listed on the CIP. In doing so, we have derived an extensive list of projects that could be funded with current reserves in certain areas, but would prevent thk funding of additional projects or provisions for project assistance in certain areas. We have identifie,,d several projects that are good candidates for combined or separate bond issues during the remainS_er of 1994 and into 1995. The following list of projects have been identified for inclusion into the~IP for 1994-1995. The project cost listed for each project includes all overhead related to the projects. Sunw0od Drive (Phase 1) $ 820,900 153/1~5th Variolite to Armstrong Blvd. $ 790,000 Anok~ Electric Utility (AEC) Extension $1,740,000 Uraniam Street (McKinley - CR116) $ 210,000 Rams{y Elementary Utility Extension $ 550,000 Wate .rmain Looping: Uranium Street $ 148,000 2nCl Feed to Subdivisions E of TH 47 $ 100,000 The total cost related to the projects anticipated for 1994-1995 is $4,358,900. In order to prevent the drawdown of. all the cash reserves in the identified funding areas, it is feasible to utilize the bonding process lo allow for the potential of additional projects in the future. At this time, the identifiable proje{t eligible for funding is the AEC utility extension project. This project involves extending municipal utilities through an existing TIF district and outside of the district toward the new AEC site. This project is anticipated to cost approximately $1,750,000, which includes all overhead except ibond issuance costs related to a sale. A portion will be collectable through assessments and t~rough tax increments from TIF District #2 within Development District #1. Due to the timing:~of the AEC project, it would make sense to attempt to settle a bond sale prior to the end of the ye~tr. This allows for the working cash on the front end of the project and would alleviate any concerns that any potential bond issues in 1995 would exceed the arbitrage cap for small city issuers.~ We will most likely be coming before the City Council on October 25, 1994, in order to set the s@le for November 22, 1994. This can be done if ordering the project actually happens on October 25, 1994, as planned.