Laserfiche WebLink
AGENDA ITEM – 1C <br /> <br />MEMORANDUM <br /> DATE: July 20, 2020 <br />TO: Honorable Mayor and City Councilmembers <br />Dave Perrault, City Administrator <br />FROM: Gayle Bauman, Finance Director <br />SUBJECT: 2021 – 2025 Capital Improvement Plan (CIP) <br />Budgeted Amount: Actual Amount: Funding Source: <br />N/A N/A Various <br /> <br />Council Should Consider <br />Provide feedback to staff on Preliminary 2021 – 2025 CIP Plan. <br /> <br /> <br />Discussion <br />This is a continuation of the discussion from the June 15, 2020 work session. The agenda report <br />from the June work session is attached (Attachment A). Updates to the plan and additional <br />information based on the discussion from that night are as follows: <br /> <br />• The value of city streets at the top of page 2 of the 06/15/20 memo was incorrect. The $112.4 <br />was based on 57 miles of streets and the city portion of this is 29.42 miles. That paragraph <br />should have read: <br /> <br />The city has about $60 million of streets and trails. Estimating the useful life of these assets at <br />40 years would require an investment of about $1.5 million annually. The current funding <br />sources of the tax levy, Municipal State Aid and special assessments account for about $1.1 <br />million on average per year. This gap in the CIP fluctuates from year-to-year, but will need to <br />be addressed over time. <br /> <br />• There was much discussion regarding the separation of the Snelling Avenue road project <br />(County Road E to Highway 51) and the round-a-bout. Staff has contacted Ramsey County <br />about this and while they have not given a definitive answer, they did not object to the two <br />projects being constructed under separate contracts. Also, the City will have cash flow issues <br />if it were to complete the round-a-bout in 2022. The estimate is that $470,000 of state aid will <br />be needed for funding and the city will not be eligible for reimbursement until 2025 or later <br />because of the advance taken in 2020. <br /> <br />• There were some questions about 2020 capital activity. I have added 2020 information to the <br />cash flow statements for the PIR, Equipment/Building Replacement and Public Safety Funds.