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<br /> <br /> STAFF REPORT <br /> <br /> <br /> <br />TO: Mayor Fischer and Members of City Council <br /> <br />FROM: Chris Heineman, City Administrator <br />Sam Magureanu, Finance Director <br /> Bill Dircks, Public Works Director <br /> Bryce Shearen, Parks & Recreation/Community Services Director <br /> <br />DATE: November 08, 2023 <br /> <br />RE: Capital Improvement Plan (CIP) 2024-2033 <br /> <br />ACTION REQUESTED: <br />Motion to approve the 2024-2033 Capital Improvement Plan (CIP). <br /> <br />BACKGROUND: <br />The CIP is a planning document intended to provide an estimate of capital needs and funding. The <br />CIP process is a way to balance the amount of capital spending on an annual basis. This creates <br />consistency in capital funding and a more predictable demand on staff resources. <br />In order to better assess the long-term capital investments in public facilities and infrastructure that <br />will be required to successfully carry out our mission, the City of Little Canada is preparing a 10- <br />year Capital Improvement Plan. Additionally, preparing a 10-year CIP will enable staff to identify <br />potential funding shortfalls in future years and plan for alternative funding sources as needed. <br />The 2024 projects in the CIP will be included in the 2024 Annual Budget that Council adopts in <br />December. For 2025 projects, staff will request authorization from Council before proceeding <br />with any expenditure. While this is a 10-year plan, projects can be changed, accelerated if funds <br />become available, or delayed if other projects become a priority. <br />As it was noted at the October 11th City Council Workshop the implementation of a stormwater <br />utility account as well as the increase in electrical franchise fee and the addition of a gas franchise <br />fee had a positive impact for two main capital improvement funds (General Capital Improvement <br />Fund 400 and Infrastructure Capital Project Fund 450) by allowing these funds to maintain a <br />positive fund balance, and allowing the funds to meet all its future capital needs for the next ten <br />years. Prior to the introduction of the new revenues, these funds were projected to run a deficit <br />fund balance and not be able to meet City’s long-term capital needs. <br />The below two graphs present total revenues (includes all new revenue sources), expenditures and <br />projects a ten-year fun balance.