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Roseville Finance Commission Agenda Item Page 1 of 2 Memo To: Roseville Finance Commission From: Chris Miller, Finance Director Date: October 11, 2016 Re: Item #5: Review Capital Improvement Plans from Other Cities Background At the September 13, 2016 Finance Commission meeting, the Commission asked to review other cities’ Capital Improvement Plans (CIP) to gain a greater awareness of alternative approaches for reviewing long-term capital needs. Currently, the City prepares its CIP utilizing a 20-year timeframe that identifies major asset categories and in some cases individual assets or components, along with the accompanying funding sources. Under this approach, the emphasis is on demonstrating whether the City’s asset replacement programs are financially sustainable over the long-term. Less emphasis is placed on the justification for individual assets in favor of subsequent and more specific discussions during the annual budget process. The decision to move to the current CIP format was made in 2009 in reaction to the repeated message that the City’s asset replacement programs were already experiencing funding shortfalls and were destined for even greater shortfalls as the City entered into an infrastructure replacement cycle – a reality that was difficult to convey using only a 5-year timeframe. In contrast to Roseville’s approach, most cities in the metro area continue to use a 5-year timeframe with greater emphasis on explaining and justifying the need to replace individual assets. This includes the cities of Maplewood, Edina, Minnetonka, Bloomington, and Richfield to name a few. Neither approach is necessarily superior to the other, but rather it’s simply a reflection of local preferences. Most published CIP documents are quite lengthy and typically exceed 100 pages. Rather than providing full documents as examples, I’ve included an excerpt of the Edina CIP in Attachment A, which is very reflective of the typical CIP used by other metro cities. For those that prefer to review the entire document (typically 100+ pages), here are links to several other cities: http://edinamn.gov/edinafiles/files/City_Offices/Finance/20160920%20CIP%20draft.pdf http://www.ci.maplewood.mn.us/DocumentCenter/View/13974 http://eminnetonka.com/images/finance/2016-2020_CIP_Final.pdf https://www.bloomingtonmn.gov/sites/default/files/DRAFT-2016-2020-CIP_v4.pdf