08-20-07 Agenda Item 2D, CIP Discussion

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CIP Discussion 8/I 6/2007 Page 5 2010 Valentine Park Play Structure: This play structure is scheduled for replacement based on a 20 year replacement plan. Staff will continue to evaluate this play structure based on the results of the planned drainage study for Valentine Park. Future Proiects and Acquisitions Lift Station Replacement: Staff is continuing to explore fInishing the Lift Station replacement project. We have four lift stations left to replace. It is anticipated that this project will cost approximately $750,000. SCADA System Installation: Staff is continuing to explore the SCADA system to monitor our lift stations and water distribution system. Roseville recently converted to this system and with our IT agreement there may be some efficiency in using the same system they recently installed. It should be noted that this project could be a phased project. Estimated cost $200,000. CONCLUSION Beginning balances for January 1, 2007 have been taken from the 2006 audited fInancial statements. Please be aware that these are the "working capital" balances - or balances that are available. Revenue projections have been made for the PMP assessments based on past collection percentages. State-Aid has been estimated based on numbers received from the State of Minnesota. All other projections are noted as follows: At the June work session, staff proposed setting up a fund for capital equipment and building repairs/replacement. Future funding is suggested to come from taking annual depreciation on equipment and creating a line item in the various departments using the equipment so that there will be adequate funding when the asset needs to be replaced or repaired in the case of City buildings. This new fund will need some reserves when created, and a funding mechanism for initial costs to this fund will be needed. The EDA operating fund is currently operating at a loss, and the 2007 budget shows that budgeted expenditures also exceed revenues. The gateway signs are budgeted to come from EDA funds. A discussion should be had on which EDA funds should be used or where the actual funding should come from. Projections of the Tax Increment Financing District #2 (Round Lake), are based on the actual increase in fund balance in 2006. This is a conservative estimate, as interest payments will go down in the future, but some principle payments may be higher as we pay off the bond. To offset this, the increment captured may also increase. The Park Fund, Public Safety Capital, and the General funds are based on the same assumptions used for the 2007 budget. The General Fund has been budgeting $200,000 annually toward the