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CITY COMMISSION AGENDA ITEM |
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Department: |
Finance |
Commission Meeting Date: 4/11/2017 |
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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 (CIP). |
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Executive Summary: |
Staff has drafted the 2018-2022 Capital Improvements Program for City Commission review. This, along with other financial forecasting, is an important tool in financial planning and prioritizing limited resources.
The CIP consists of projects that are greater than $100,000 and have an expected life of at least 5 years. It should be noted that staff is still working through some of the CIP numbers and it should be considered draft at this point. The recommended CIP will be presented to the Planning Commission to ensure conformance with the City’s Comprehensive Plan. A final CIP will be presented for adoption as part of the City Manager’s recommended 2018 budget.
The projects that are identified as unfunded are not financially feasible at this time without an increase in the city’s debt service mill levy or other corresponding revenue adjustments, or adjustments to recommended projects.
2018-2022 CIP Highlights: Staff is presenting a balanced CIP program that is within current revenue capacity, based on the following assumptions:
· Of the City’s special sales tax rate of 0.55%, the Infrastructure portion (0.3%) and transit operations portion (0.2%) is assumed to be renewed for the same purposes as currently allocated. · New debt service for any projects will be paid from property at an estimated valuation growth of 2% annually. · The utility funded projects are funded through their fees based on moderate annual fee increases. · The CIP as presented includes the first of a phased approach to construct a police facility. This would require an increase of 1.25 mills in the debt service fund.
It is important to note that the CIP is tentative pending finalization of the operational budgets. Departments have submitted budget requests for evaluation and the budget team is working on review. The operational budget will be a focus of the upcoming May 9 budget work session.
The newly adopted strategic plan guided development of the 2018-2022 CIP. The following priority initiatives are being addressed through projects in the CIP:
Identify barriers to having high-speed fiber throughout Lawrence and facilitate the development of the necessary infrastructure by the private sector. The presented CIP includes an annual allocation to fiber projects of $100,000.
Review 9th street plans and develop a proposal to complete the road infrastructure and determine ability to add creative and artistic elements. The presented CIP includes reconstruction of 9th street from New Hampshire to Pennsylvania for $2,500,000. Artistic design in the corridor, including a citizen request for $500,000, was left unfunded.
Develop a City facility master plan and comprehensive facility maintenance plan The presented CIP includes a new department of Facility Repair & Maintenance in order to consolidate city-wide maintenance plans. The presented CIP includes funds to plan for consolidation of several city operations.
Develop and communicate a long-term financial strategy The presented CIP is planned to be balanced with a long-term financial forecast and serves as a communication tool for city departments and the public.
Develop a master plan for Downtown that includes needed and desirable assets, infrastructure, and uses The presented CIP includes funding for a downtown master plan as well as future funding for implementation of potential recommended projects.
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Strategic Plan Critical Success Factor |
The CIP addressed the critical success factors identified in the strategic plan
· Effective Governance/Professional Administration o A long-range CIP is a critical component effective governance and professional administration. The CIP was scored based on compliance with the critical success factors · Safe, Healthy, and Welcoming Neighborhoods o Affordable housing continues to be included in the CIP as well as funding for sidewalk/ADA improvements, bike/pedestrian improvements, neighborhood parks and trails. · Innovative Infrastructure and Asset Management o The CIP includes funding for repair and replacement of numerous infrastructure, facilities, and assets. · Core Services o The CIP includes funding for services that address the health, safety and welfare of the community. · Sound Fiscal Stewardship o This data is presented in a way that staff hopes assists the governing body in prioritizing across all city services and balances with the needs with available resources. · Collaborative Solutions o The CIP includes collaborative solutions such as the partnership with the Humane Society and reflects projects that are funded in partnership with other government agencies. |
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Fiscal Impact (Amount/Source): |
The CIP as presented has a five-year cost of $287,000,000. The 2018 impact is estimated to be $50,000,000 from all funds. |
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Attachments: |
2018-2022 CIP Projects & Funding Sources by Department - Added 04/07/17) |
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Reviewed By: (for CMO use only) |
☐TM ☐DS ☒CT ☐BM |