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<br />. <br /> <br />. <br /> <br />. <br /> <br />... <br /> <br />.' <br /> <br />~ <br /> <br />~ <br />~HILLS <br /> <br />MEMORANDUM <br /> <br />DATE: <br /> <br />July 14, 2004 <br /> <br />Agenda Item 2.E <br /> <br />TO: Honorable Mayor and City Council <br /> <br />FROM: Murtuza Siddiqui, Finance Director/Treasurer 'MS <br /> <br />SUBJECT: CIP/Pavement Management 2005 - 2009 <br /> <br />BACKGROUND: <br /> <br />The City Engineer (URS) and the City of Arden Hills staff have prepared an analysis and <br />projection for the up-coming construction projects and CIP through year 2009. Estimated total <br />costs and its allocation to various funds have been provided by the URS staff. <br /> <br />DISCUSSION: <br /> <br />Staff is providing two sets of spreadsheets for the Council's review. The first spreadsheet, <br />labeled, "Preliminary 2005 - 2009 Five Year Capital Improvement Plan" provides a summary of <br />all constructions projects, technology upgrades, Public Safety equipment, Parks & Trails <br />improvements, and Operations and Maintenance equipment. The second spreadsheet labeled <br />"Arden Hills Construction Projects - Five Year Summary 2005 - 2009" outlines all the <br />construction projects for the next five years. This spreadsheet demonstrates how the project <br />costs are allocated across various funds. As this spreadsheet is reviewed, please keep the <br />following points in mind: <br />. Fund balance only reflects current assets minus current liabilities. <br />· Future assessment payments are factored in as revenue. <br />· No interest revenue is calculated on the remaining fund balance. <br />· No new revenue is reflected in the general fund. <br />. No new State Aid funds have been factored in. <br />· Currently, the enterprise fund (utility funds) is breaking even from the operations <br />perspective. In aggregate, the enterprise fund is not generating additional revenue, <br />annually, to finance CIP activities. <br /> <br />Based on the projected construction activity only, it is estimated that the enterprise fund will <br />approach a negative number by the middle of 2006, if utility rates remain unchanged and there is <br />no infusion of new revenue. The PIR fund balance appears to be healthy. It should be noted that <br />