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Roseville Finance Commission Agenda Item Page 1 of 1 Memo To: Roseville Finance Commission From: Chris Miller, Finance Director Date: February 14, 2017 Re: Item #4: Continue Discussion on the Capital Improvement Plan (CIP) Document Format & Justification Section Background At previous Finance Commission meetings, the Commission discussed alternative CIP document formats used by other cities as well as the value of creating a separate section that establishes a justification for the proposed asset replacements, projects, or initiatives contained in the CIP. During previous discussions it was noted that the City utilizes a 20-year timeframe with an emphasis on demonstrating whether the City’s asset replacement programs are financially sustainable over the long- term. The decision to use this timeframe was made in in 2009 in reaction to repeated findings that the City’s asset replacement programs were experiencing significant funding shortfalls that oftentimes were masked when considering only a 5-year horizon. In contrast, other cities utilize a 5-year timeline preferring to place greater emphasis on near-term replacements along with supporting narrative for more noteworthy assets or projects. The Commission is asked to consider this or other alternatives to the City’s CIP document format. An example of a potential alternative is the approach used by the City of Minnetonka. This example is included in Attachment A. Staff Recommendation Not applicable. Requested Commission Action For information purposes only. No formal Commission action is required at this time. Prepared by: Chris Miller, Finance Director Attachments: A: Excerpt of the City of Minnetonka CIP Document.