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MINNESOT
MEMORANDUM
TO: Mayor and City Council
FROM: Lori Johnson, City Administrator
DATE: November 5, 2015
SUBJECT: Capital Improvement Plan Work Session
Last Monday we reviewed the Utility CIP with the majority of the discussion focusing on the
water system and the proposed capital cost to refurbish Water Tower 1. Although a
preliminary plan was identified, additional follow-up is needed to review the matter further. A
future work session will be scheduled for that purpose. On Monday, the discussion will be on
the streets, buildings, parks, IT, and fleet categories thus wrapping up preliminary review of the
draft 2016 CIP.
Additionally, cash balance data for the funds that fund the CIP expenditures and proposed
funding sources of the CIP items will be reviewed. In previous review of cash flow projections,
it was noted that levy increases are needed to fund the proposed CIP. The Council's previous
comments where that as the market value increases from recent construction come on line, the
levy adjustments could be made. The financial information that will be presented Monday
shows the importance of making those levy adjustments beginning in 2017 to maintain the
investment the City has in its infrastructure and to fund upcoming needs.
Below is a brief overview of the CIP information that will be discussed in depth at the meeting.
Streets:
This is the second year of rating the street system with the PCI and applying that rating to
determine CIP recommendations. This rating system will bring consistency and predictability to
determining when and how streets are maintained and, most importantly, provide the long-
range information needed to execute a funding plan. Further, this year several of the maps and
presentation of data have changed to clearly convey what specific type of maintenance is
proposed.
Buildings:
There are two building projects included in the CIP: a fire station that has been discussed
previously and a separate public works storage building. The proposed public works storage
building could delay expansion of the current public works building and still serve a long-term
need for storage after the existing building is expanded. In other words, it does not eliminate
the need to expand the current building; it serves a slightly different need. Therefore, it is a
short-term solution with a long-term use.
Parks:
The main park project for 2016, Northwood Park, has already been approved by the City
Council. Although, other projects are listed, no other CIP projects have funding available at this
point. Many of the items in the park CIP are simply placeholders because the project will not
proceed until park dedication fees or contributions are received. However, to keep the priority
ranking and to acknowledge that these are upcoming projects, they are included in the CIP.
IT and Fleet:
Both of these are straight forward as identified on the attached documents. The
equipment/vehicle purchases have been reviewed, coordinated, and recommended by the
Street Operations Manager, Utility Manager, and Park and Recreation Director to maximize the
useful life of equipment/vehicles and to maximize cross -departmental use.
Finally, staff is prepared to answer questions and explain the CIP requests in detail on Monday.
Council direction is requested so that staff can proceed with drafting a final CIP for adoption in
December.
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