01-22-07 Item 2B, Five Year CIP Update

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. ~ ~~HILLS MEMORANDUM DATE: January 22,2007 AGENDA ITEM 2.B TO: Mayor and City Council Michelle Wolfe, City Administrator ~~ Work Session Discussion: 2007-2011 Capital Improvement Program (CIP) FROM: SUBJECT: Attached is an update from Civil Engineer Kris Giga. Council saw several drafts of the proposed five-year CIP during calendar year 2006. Staff has made a few adjustments to the PMP projects, as outlined in Kris' memo. However, the balance of the five-year plan is consistent with earlier drafts reviewed by the City Council. The Council has not formally approved a five-year CIP since 2005. Staff is recommending that we approve a five year CIP, for the years 2007-2011. This is an important step to take for a number of reasons. The CIP is a plan, not a budget. As an approved plan, it serves as a guideline for staff to focus planning efforts for upcoming projects. It is also a critical element for financial and budget planning purposes. We need a basis on which to base projections, and an approved capital program is that foundation. Capital projects and purchases are always large enough that they will not proceed without separate action by the City Council. However, by a approving a five-year program, we can work toward these goals, with the flexibility to recommend and adopt changes along the way. As part of the annual budget process, the current year of the CIP will be incorporated into the actual budget. One of the staff goals for 2007 is to incorporate the approved CIP into a software program and create a more complete CIP document. This document will include project descriptions; maps estimated costs (by category), proposed funding sources, and other information. If there are no concerns raised by the Council during the Work Session, staff will proceed with placing the CIP on the regular meeting agenda for Monday, January 29. \\metro-inet\ardenhills\adrnin\City Administrator\Memo\2007\I ~22"()7 CIP Update.doc