10-11-2023 Workshop Packet - Laserfiche WebLink

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STAFF REPORT TO: Mayor Fischer and Members of City Council FROM: Sam Magureanu, Finance Director Chris Heineman, City Administrator DATE: October 11, 2023 City Council Workshop RE: Discussion on 2024-2033 Capital Improvement Plan (CIP) The purpose of this workshop is to review and discuss the 2024-2033 Capital Improvement Plan (CIP). The purpose of the CIP is to identify projects, project costs, and proposed timelines and funding sources for upcoming projects. There are a total of six capital project funds that are used for capital projects and one enterprise fund. I. General Capital Improvement Fund (400) Background: The General Capital Improvement Fund was established to fund capital improvements and acquisitions that are not accounted for in another Capital Project Fund. These improvements have been historically building improvements, public works equipment, small fire equipment, and parks improvements. Typically, the expenditures in this fund have included the purchase of tangible personal property (equipment) or facilities used in the City operations. Sources of Funds: The General Capital Improvement Fund (400) receives its revenue from many sources including Local Government Aid (LGA) and transfers from the General Fund and other funds. Back in May, the State House and Senate approved an omnibus bill which included $80 million annual increase in the LGA. The proposed LGA to Little Canada will be $410,287. Of that proposed 2024 LGA, the City allocated 60% to Fund 400. Beginning with 2024, a Gas Franchise Fee revenue for $100,000 was included as well as $100,000 levy for 2024 and 2025. The levy was included to build additional funds that could potentially be used to decrease the total cost of the Community Building CIP project, currently budgeted for 2026 at $2,425,000. Related to the Community Building CIP project, 2026 includes $2,425,000 of revenues that would be generated from bond issuance in relation to the construction of the Community Building. Once the bonding will be issued the City will reallocate the $100,000 levy toward a debt service levy that would be used to pay the annual debt service payment on the $2,425,000 bond. Additional debt service levy would need to be considered since the estimated debt service payments for a 20-year payoff schedule is approximately $200,000. Further, Little Canada will lose $72,774 from the last payment of the Cell Tower Lease agreement starting in 2030 with the last payment in 2029. Additionally, the fund will be receiving a donation for $80,000 to Skate Park in 2028 and another transfer of funds from Fund 202 – Cable TV to the amount of $158,750.