Agenda - Council - 01/28/2014 - Laserfiche WebLink

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Our Mission: To work together to responsibly grow our community, and to provie quality, cost-effective, an efficient government services CC Regular Session Meeting Date: 01/28/2014 By: Diana Lund, Finance Information Title: Public Hearing and Request for Adoption of Ramsey 2014-2018 Capital Improvement Program 6. 1. Purpose/Background: Purpose: The Capital Improvement Plan (CIP) is a strategic planning tool to assist the City Council in identifying proposed capital improvement projects over the next five years. Background: The Capital Improvement Program (CIP) is a long-term financial plan of at 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 City's charter directs that a five-year capital improvement plan will be adopted annually. 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. Also, the CIP reflects priorities for projects and equipment that have been identified as priorities in the City's adopted Strategic Plan. 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. Notification: The request for public hearing was adopted at the regular City Council meeting of January 14, 2014. Observations/Alternatives: Options: 1. Adopt Plan as outlined noting that this is a planning tool only and not the authorization of any one project listed. 2. Take no Action at this time for further review of each project. Per the City Charter, a five-year Capital Improvement Program (CIP) needs to be adopted annually. Funding Source: Each project within the Capital Improvement Program designates its funding source. Recommendation: Staff recommends Option #1 to adopt the Capital Improvement Program that is attached noting that this is a forecasting tool and not actual, committed projects and expenditures.