CR 96-181 Capital Improvement PlanNovember 1, 1996
Proposed Action
Staff recommendsadoption of the following motion: Move to adopt the 1997 -2001
Capital Improvement Plan
Overview
1997 -2001 CAPITAL IMPROVEMENT PLAN
The Capital Improvement Plan (CIP) is a five year planning document intended to as-
sist the city in planning major improvements to the community in the areas of utilities,
transportation, parks, buildings, and other community facilities. Each year the city and
community review the CIP to determine specifically, improvements for the coming year,
and to plan prospectively into the future. Adoption of this motion will result in the plan
being approved and will enable staff to begin preparation for detailed discussions on
the improvements detailed in the plan. Adoption of the plan does not auto
in e p an will actually occur. Further action will
be needed on each of the projects to ensure their completion.
-::-
• • r.
Primary Issues to Consider
o Response to questions raised by Council and community
o Impact on funding sources
o Options
Supporting Information
o Staff analysis of issues
o 1997 -2001 Capital Improvement Plan
even C. Mielke
City Manager
Council Report 96 -181
Page 2
Staff Analysis of Issues for the CIP Report
o Response to questions raised by City Council and community members
A number of questions were raised during the review period regarding issues
within the Capital Improvement Plan. The following is intended to respond to
each of those issues.
1. Proiect WA -1, Repaint Water Towers
Questions were raised on the expected frequency of painting and cost of
painting water towers. Public Works director Steve Stadler is gathering
facts on the expected life of water tower painting projects, and recent area
project costs, and will report back to the Council at a future point.
2. Project ST -10. Citywide Sidewalk Repair
During review, a concern was raised about the quality of the sidewalk re-
pairs that have been done in the past one to two years, with a concem
that some of the panels have been replaced prematurely. Again, Public
Works director Steve Stadler is gathering information on this question and
will be responding to the Council in the future.
3. Proiect ST -12, Second Avenue South
A Commissioner of the Zoning and Planning Commission opposed a Sec-
ond Avenue connector between Fifth Street South and Third Street South
because of increased traffic in the Park Valley area. This project will only
be necessitated if a development project is proposed and approved,
which would include this connector. This project will be driven by the de-
velopment and would require additional approvals from the City Council.
4. Proiect CF -1, Downtown Park Stage
Feedback at the October 8 Council Work Session indicated that the
Council was opposed to building a permanent stage in Downtown Park.
Additional discussions were proposed concerning a construction such as
CF -1 or the potential of purchasing a mobile stage, such as that owned by
St. Louis Park and other neighboring communities.
5. Proiect MF -5, Arts Facility
During review, the City Council requested information on specific funding
sources for the additional $356,000 shown as part of the Tax Increment
Page 3
financing total. This item has been placed on the November 12 Work
Session for further discussion.
6. Project MF-8, Fire Station Murphy Beds
The purpose of this capital improvement is to allow for a location and a
bed for standby fire fighters during times of standby service. Standby is
done when, in the estimation of the fire department, it would be a likely
time of fire calls, and a quicker response can be attained if fire fighters
are standing by at the station. This often occurs during weekends and
severe storms, and frequently is at night. The purpose of the Murphy
beds would therefore be to provide a comfortable sleeping location during
times of standby.
7. Proiect PP-6, Security System Installation
While there are no plans to immediately install a security system in the
parking ramp, the Police Department is preparing, for Council review, an
outline of the department's anticipated response should security become
an issue in and around the new entertainment complex.
8. Level of City Indebtedness
During review, the City Council asked for information on the debt levels of
the City, and how they may compare to other communities. Finance Di-
rector, John Schedler, is currently preparing a report for the City Council
which will discuss and outline those issues.
o Impact on Funding Sources
The Capital Improvement Plan has 15 potential funding sources for Capital Pro-
jects. Each funding source is independent of the other and some projects use
several funding sources.
The Finance Department has analyzed the 1997 -2001 CIP and has included a
summary of the Plan's impact on each of the various funding sources.
1. General Fund
The general fund, if all projects were constructed at their current level,
would require either additional resources or a reduction in the fund bal-
ance reserved for cash flow purposes. The general fund assumptions in-
clude a conservative assumption that current year budgets will balance
between expenditures and revenues, when in fact, the likelihood is that
revenues will outpace expenditures, leaving a better revenue projection in
the general fund than the current plan shows. Additionally, grant funds
may come available for some projects which would reduce the effort nec-
essary within the general fund to support the projects.
2. Municipal State Aid Funds
Many of the transportation related items would be paid for using municipal
state aid funds. Our projections show that current funding levels of the
municipal state aid account are adequate to pay for the transportation
projects planned for.
3. Utility Funds
Page 4
The City maintains four utility funds, each responsible for payment of ex-
penses for water, sanitary sewer, refuse, and storm sewer projects. The
Plan, if adopted and constructed, may require a slight increase in water
rates to maintain a positive cash balance. All the other utilities should be
sufficient under current projections. These projections also take into ac-
count operational expense projections.
o Options
The City Council is being asked to adopt the plan in its current form. The Coun-
cil has the option to amend the plan, or to refer it back to staff for additional
work. This plan is not mandatory, and therefore is done out of a desire to prac-
tice good management techniques. There is no deadline for adoption, therefore,
if additional work is necessary, it can do so without repercussions.