10-22-2025 Workshop Packet - Laserfiche WebLink

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STAFF REPORT TO: Mayor Fischer and Members of City Council FROM: Sam Magureanu, Finance Director Bryce Shearen, City Administrator DATE: October 22, 2025 - City Council Workshop RE: Discussion on 2026-2035 Capital Improvement Plan (CIP) The purpose of this workshop is to review and discuss the 2026-2035 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, and park 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. The total amount of LGA certified for all cities in 2026 is $664,398,012. The proposed LGA to Little Canada will be $416,576. Of that proposed 2026 LGA, the City allocated 60% to Fund 400 and 40% to the General Operating Fund 101. For 2026, levy revenues of $270,000 were included. This is a proposed increase of $140,000 from the 2025 levy of $130,000. The increase of $140,000 is recommended as a strategic move to build additional funds to be used for the Community Building CIP project's future debt service payment, currently budgeted for 2027 at $4,425,000. Once the bonding is issued, the City will reallocate the $270,000 levy toward the debt service levy that would be used to pay the annual debt service payment on the $4,425,000 bond. An additional debt service levy would need to be considered since the estimated debt service payments vary based on the term of the bond (15 years or 20 years) and the cost of the building (4.5 mill or 5.5 mill). As can be noted below, yearly payments are estimated between $350,000 and 512,00.