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.
· Water Fund – Page 198, CIP Book
· Wastewater Fund – Page 216, CIP Book
** Reminder: Bring your FY2011-2015 Recommended CIP Book to the meeting.**
MEETING DATE: May 3, 2010
AGENDA ITEM TYPE : Action Item
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.
Water Fund: The Water Fund is an enterprise that is entirely supported by user fees. It funds
the costs of treatment and distribution of water throughout the city. The Water Fund has been
systematically raising rates and accumulating money to pay for a new Water Treatment Plant
(W-07, page 204.) The Plant is estimated to cost a total of $40.7 Million, with the Water Fund
paying a total of $27.2 Million. We began design of the facility two years ago, and there remains
an estimated $24.9 Million remaining to pay in fiscal years 2011-2013.
We have not made substantial changes to the Water Fund project list since last year’s CIP was
approved. Project W23 – Lyman Creek De-chlorination was added in FY11, and a couple of
equipment purchases were moved back a year.
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Wastewater Fund: The Wastewater Fund is an enterprise that is entirely supported by user fees.
It pays the funds the collection and treatment of wastewater throughout the city. The fund has
been systematically raising rates, and is in the middle of construction of the Water Reclamation
Facility (WRF.) We estimated FY11 to be our final year of WRF related costs, although the
project could see a small portion of those amounts fall in FY12.
Changes to the schedule this year include the movement of WW07 – Bi-Annual Engineering
Design amounts to offset with the years the projects are funded (ie. design one year, build the
next,) and the removal of WW20 – Dump Truck in FY14.
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.
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: April 28, 2010
Attachments: none
On File in the City Clerk’s Office: Capital Improvements Program for Fiscal Years 2011-2015
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