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CITY COMMISSION AGENDA ITEM |
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Department: |
Finance |
Commission Meeting Date: 11/8/2016 |
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Staff Contact: |
Bryan Kidney, Finance Director |
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Recommendations/Options/Action Requested: |
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Review and provide input on the adjusted Capital Improvement Plan. |
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Executive Summary: |
The Capital Improvement Plan is a tool to help the City look beyond year-to-year budgeting to determine what, when, where and how future public improvements will take place over the next five years. Capital projects are defined as projects costing a minimum of $75,000 and resulting in a new fixed asset or an enhancement to an existing fixed asset with a life expectancy of more than two years.
Each year capital projects are submitted by departments to be prioritized. The Management Team reviewed and prioritized the submitted projects. Next, the Finance Department determined what the financial impact of each project would be long-term. Based on the prioritization process and the financial impact, a recommended CIP was presented to the Commission during a work session and final changes were made prior to approval on August 2, 2016.
Since the approval of the CIP there have been some adjustments made to 2017 projects. There are four projects that have been combined with other projects or have been pushed back to 2018; two project have been moved up from 2018 to 2017, and eight projects have had updated costs since the approved CIP. These changes resulted in a net increase of $2,574,654.
However, the two primary drivers of the cost differential between the approved CIP and the adjusted CIP are the sustainability projects and the multi-modal transit facility. The sustainability projects increased the CIP by $11,405,000 and will be funded through green bonds (a version of special revenue bonds). The multi-modal transit facility decreased the CIP by $30,600,000 and will be pushed back to 2018 due to the anticipated grant not being awarded in 2017.
For all 2017 projects, the approved CIP was $107,534,720. The net impact of the aforementioned adjustments is a decrease of $16,620,346 bringing the total adjusted CIP to $90,914,374 for all scheduled 2017 capital projects. |
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Strategic Goal Area: |
Other-Capital Improvement Plan |
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Fiscal Impact (Amount/Source): |
The fiscal impact to the City is minimal since much of the reduction is attributed to outside funds (i.e. grants) and not City funds. |
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Attachments: |
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