03-Introduction September 12, 2018
The Honorable Shepard Harris, Mayor
Members of the City Council
Dear Mayor Harris and City Council Members:
The Proposed Capital Improvement Program (CIP) for years FY 2019-2023 is presented with
this transmittal.
The Capital Improvement Program is a five-year fiscal planning instrument that is used to
identify needed capital projects and to delineate the financing and timing of the associated
projects. Generally these projects exceed $5,000 in cost and require long-term financing. An
annual capital improvement budget, encompassing the projects outlined for the first two years
of the CIP, is presented to the Council with the biennial budget.
The Capital Improvement Program also identifies bond issues necessary to fund certain
improvements. Since 2018, the city has not issued certificates of indebtedness to finance
vehicles and equipment. Each project in the program is brought forth in the upcoming year for
discussion and approval at a council meeting.
The adoption of a CIP is a requirement for each city in the metropolitan area. As part of the
Metropolitan Land Planning Act passed by the State legislature in 1976, each city is required to
adopt a Comprehensive Plan. In 2009, the City's Comprehensive Plan was approved and
accomplished:
• Updated zoning and subdivision codes;
• Housing implementation programs;
• Capital Improvement Program related to transportation, sewers, parks and open space
facilities
Starting this year, staff has been working on an update to the current comprehensive plan and
seek approval by the end of 2018. Many citizens have had input through various contacts.
Because of its relationship to the Comprehensive Plan, the CIP is reviewed by the Planning
Commission.
The CIP should be viewed as a vehicle to accomplish the goals outlined in the City's
Comprehensive Plan. The goals in the plan cover housing, sanitary and storm sewers, public
facilities, transportation and parks and open spaces. An orderly expenditure of funds on capital
items is a means of accomplishing the Plan.
A complete CIP is an indispensable tool for the City Council and the City staff as they manage
and control the timing and financing of capital improvements needed to maintain the current
high level of City services. A CIP is also used by the bond rating agencies to not only evaluate
the current and future financial condition of a city, but also to evaluate the quality of a city's
management. Adoption of this comprehensive CIP for 2019-2023 will enhance the City's ability
to maintain its current Aa1 bond rating.
Finally, a CIP is a valuable document for commission members and citizens to use to gain an
understanding of how their City works and the means to accomplish its overall plan.
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The process for completing the 2019-2023 CIP was much the same as the process for the
2019-2020 Budget. Project requests were submitted by all the divisions and reviewed by the
Management Team and appropriate supervisors to establish the feasibility and priority of the
projects and match with available financing.
The CIP is a planning document or guide for the future capital improvements in the City which in
no way constitutes formal approval of the various projects. All of the projects will be formally
approved through the City's purchasing or public improvement process.
Each section lists the upcoming projects, project overview, and an estimated cost of the project.
The Financing section includes a narrative analysis of financing sources involved in the program
along with exhibits analyzing some of these sources, with special emphasis on the City's Capital
Project Funds. Also included is an exhibit which provides a current list of bonded debt to finance
the existing programs and expenditures and sources by year. The sections are:
Financing
Vehicles and Equipment
Parks
Golf Course
Buildings
Cablecasting
Storm Sewers
Water& Sanitary Sewer Utility
Streets
I look forward to completing these important projects in the coming fiscal year. As we move
forward with this FY 2019-2023, 1 hope that this CIP meets your approval and provides a useful
tool for the Council as it makes decisions regarding these projects.
Timothy Cruikshank
City Manager