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'It <br />,ARZEN HILLS <br />MEMORANDUM <br />DATE: July 17, 2023 <br />TO: Honorable Mayor and City Councilmembers <br />Dave Perrault, City Administrator <br />FROM: Gayle Bauman, Finance Director <br />SUBJECT: 2024 — 2028 Capital Improvement Plan (CIP) <br />Budgeted Amount: Actual Amount: <br />N/A N/A <br />Council Should Consider <br />Provide feedback to staff on Preliminary 2024 — 2028 CIP Plan. <br />Background <br />AGENDA ITEM — 3E <br />Funding Source: <br />Various <br />Annually, the City prepares a five (5) year Capital Improvement Plan for budgeting and forecasting. <br />The focus of the CIP is on the maintenance and protection of the City's existing assets, <br />redevelopment, and investment in new initiatives. The CIP is part of the budget process, but it is <br />not a budget, it is a plan, and one that changes often. The CIP does not commit the council to the <br />proposed projects, nor implement the assumptions made during the preparation; however, this is <br />the basis for the 2024 Budget as we continue with its preparation. <br />The city has a finite amount of resources, so prioritizing and then being able to finance projects is <br />crucial for ensuring the city's long-term sustainability and being responsible stewards of the city's <br />investments. Staff has been working on completing a comprehensive study of the City's current <br />and future needs for infrastructure projects to better estimate project costs and ensure more accurate <br />forecasting of available fund balances. <br />Discussion <br />A preliminary plan has been prepared and is attached which includes a summary of projects, <br />detailed project sheets, sources of funds, and estimated fund balances (since the operating budgets <br />have not yet been completed, these fund balances are estimated operating costs). Information is <br />included on street and park projects going out ten (10) years even though our CIP is only for five <br />years. Please note that project timelines are subject to change and that the current timeline is City <br />Staff s best estimate. <br />The 2023-2027 CIP was a $17.4 Million plan, while the proposed 2024-2028 CIP is listed for $27.5 <br />Million in expenditures. This is a 58.2% increase from the previous year's program or $10,129,750. <br />The biggest increases are in Parks, Street Projects and Equipment purchases while the biggest <br />Page 1 of 4 <br />