CCP 04-17-2006 - Laserfiche WebLink

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. . . ~ ~HILLS MEMORANDUM DATE: AGENDA ITEM: 2C April 17,2006 TO: Mayor and City Council FROM: Michelle Wolfe, City Administrator SUBJECT: CIP/MSA Discussion The CIP has been discussed several times in the past six months. The discussions have been difficult, largely because there is simply so much information to deal with. The CIP discussion has been prolonged for a number of other reasons: (I) the need for additional analysis of the utility funds; (2) decisions to proceed or not proceed with Highway 96 landscaping, 2006 lift stations, and 2006 PMP; (3) final costs being determined for the Lexington Avenue project and the 2005 PMP; (4) changes in engineering services; (5) completion of the PCI street rating process; and (6) purchase of the GoodPointe software. Once some delay occurred, we felt that it would be helpful to have some guidance from Council regarding fund balances - in other words, what is the minimum fund balance we should strive to maintain in the various funds used for capital projects and expenditurcs. Those discussions were not very productive due to the need for additional information outlined above. Therefore, we decided it might be more productive to "break" the CIP into smaller pieces for discussion. At the April 17 Work Session, we would like to start with a discussion regarding Minnesota State Aid projects. Staff created a spreadsheet that illustrates the current status of the fund. This is based on: (I) our most recent knowledge and/or projcctions regarding projects: (2) the most recent CIP information about possible future projects; and (3) estimates regarding future MSA contributions. The spreadsheet will be available "live" during the work session so that we can run different scenarios and show the effect on this particular funding source. In some cases we would also have the option to apply for more MSA funds for a particular project. For example, we would be eligible for additional reimbursement towards the 2005 PMP project. That would lessen the impact on our capital funds. Howcvcr, it would start to push out other projects, or make it less likely that we could do some ofthe "unassigned" projects. Our goal is to get some sense of prioritization from the Council regarding MSA-eligible projects. This will not be a final discussion, since things can shift as we proceed with our discussions about the CIP as a whole. Our second step in discussions, in May, we plan to have to more critical pieces to assist the CIP development process: (I) Analysis conducted via the GoodPointc software, and (2) preliminary audit information regarding the current status of our fund balances. We anticipate a third discussion in June, all working towards final development of a five-year ClP as we begin preparation of the proposed 2007 budget. MW l\metro-inetlardenhillslAdminlCity AdministratorlMemo\200614-17-06 Memo RE CIP-MSA.doc