HomeMy WebLinkAboutPublic Hearing & Adoption of Parts of the Capital Improvements Program.pdf
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Anna Rosenberry, Finance Director
Chris Kukulski, City Manager
SUBJECT: Public Hearing & Adoption of Parts of the Capital Improvements Program
(CIP) for Fiscal Years 2011-2015.
· Building Inspection, CIP Book, Page 180
· Fire Equipment & Capital Replacement, CIP Book, Page 192
· Tree Maintenance Fund (Forestry), CIP Book, Page 185
** Reminder: Bring your FY2011-2015 Recommended CIP Book to the meeting.**
MEETING DATE: March 29, 2010
AGENDA ITEM TYPE : Action Items
RECOMMENDATION: Adopt the above listed parts of the Capital Improvements Program
(CIP) for Fiscal Years 2011 – 2015, with any modifications, after public comment and
Commission discussion.
BACKGROUND: On December 14, 2009, the Commission received the City Manager’s
proposed Capital Improvements Program (CIP) for Fiscal Years 2011-2015. At that time, the
document was made available to staff and the public online at
http://www.bozeman.net/finance/capital_improvements_plan.aspx.
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We are presenting the CIP for adoption in its individual parts, over a number of public hearings
this spring. Our Capital Improvements Program serves as an important guide for city staff,
Commissioners, and citizens, and plans for over $98 Million to be invested in our City’s
equipment and infrastructure in the next 5 years. It establishes a systematic, five-year view of
resource allocation in hopes of preventing a reactive, unpredictable, or informal approach to
funding capital needs. The CIP bases much of its project work on the City’s adopted facility
plans for water, wastewater, transportation, parks & recreation, fire, and police services.
Developing a Capital Improvements Plan is, first and foremost, a planning process - adopting a
CIP does not provide budget appropriation authority. Items must be included in the final
budget resolution before they are funded. Once the Commission adopts CIP schedules, the items
listed in the FY2011 column will be included in the City Manager’s Recommended Budget to be
presented in June. If, for a number of reasons, the City Manager’s Recommended Budget does
not contain an approved FY2011 CIP item, the circumstances will be explained during the
Recommended Budget presentation. Through our regular budget process, the Commission will
then have the opportunity to take additional public comments, have further discussion, and make
final appropriation for these capital items in the Final Budget adoption in late August. It is not
until the final budget adoption that any CIP item is authorized for spending.
Tonight’s Funding Sources:
Building Inspection Schedule: Building Inspection permit fees, or the Building
Inspection Fund reserves, could be utilized for replacement of Building Division capital. In
order to fund the items scheduled, without relying on reserves, we estimate that the equivalent of
2% of FY2010 estimated annual revenues would need to be available in FY2012, with an
additional 1% being added in FY2013. The difficulty with this funding source is that future
Building Inspection Fund receipts are highly uncertain. Given the ups and downs in the local
building industry recently, we have based the CIP plan on FY2010 budgeted revenues; actual
collections will deviate, and we may need to change our plan in future years, based on how the
situation plays out.
Fire Equipment and Capital Replacement Schedule: This schedule is funded by the
2007 voter-approved, 4-mill levy. While the value of a mill changes each year, it does not
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fluctuate wildly. This is seen as a reasonably stable funding source, being collected and
ultimately enforced under the tax lien process.
Tree Maintenance Schedule: This schedule is funded by the annual assessment on
property owners for tree maintenance. In order to fund the proposed schedule, we don’t
anticipate needing to increase the amount of the assessment currently dedicated to capital
replacement (14.5%.) We do estimate small increases in “assessable area” of 1% and 2% during
the plan years. This revenue source is seen as reasonably stable; assessments are able to be
collected under the same authority as general taxes, via the tax lien process.
Unscheduled Items: Projects are listed as “unscheduled” for any number of reasons, the most
common of which is lack of funding during the plan years. Projects that we know will be needed
in the next few years after the plan (FY16-FY19) are sometimes included in the plan as
“unscheduled” so that everyone can be aware they are on the horizon. Projects that are needed
but are not ready for design or bid (often street expansions that do not have much of the required
right-of-way) are also sometimes listed as “unscheduled”.
Project Cost Estimates: All project and equipment costs are estimates that will not be finalized
until the City accepts a qualified bid for that specific project or equipment. We have used the
best information available to estimate these amounts, including knowledge of similar, recent
projects or purchases. When available, we have used the most recent engineer’s estimate of
costs.
Our presentation will include discussion of the basis for our revenue estimates and the proposed
projects/commitments for each fund.
FISCAL EFFECTS: Approving this plan does not provide appropriation authority. The
FY11 projects and equipment will be incorporated into the FY11 City Manager’s Recommended
Budget, which requires final approval before these projects will be funded. The remaining CIP
years (FY12-FY15) serve as a work plan to guide staff, and will be reviewed and revised in the
coming fall for our annual update of the CIP at this time next year.
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ALTERNATIVES: Changes can be made to the inclusion or timing of scheduled projects
and the underlying revenue estimates; however, we do not customarily adopt CIP schedules that
result in negative balances in the last (5th) year of the plan.
Report compiled on: March 22, 2010
On File in the City Clerk’s Office: Capital Improvements Program for Fiscal Years 2011-2015
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