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The Mounds View Vision A Thriving Desirable Community Item No 03 Meeting Date May 6, 2024 Type of Business Work Session City Administrator Review City of Mounds View Staff Report To: Honorable Mayor and City Council From: Gayle Bauman, Finance Director Item Title/Subject: 5 Year Capital Improvement Plan Background Annually, the City prepares a five (5) year Capital Improvement Plan for budgeting and forecasting. The focus of the CIP is on the maintenance and protection of the City’s existing assets, redevelopment, and investment in new initiatives. The CIP is part of the budget process, but it is not a budget, it is a plan, and one that changes often. The CIP does not commit the council to the proposed projects, nor implement the assumptions made during the preparation; however, this is the basis for the 2025 Budget as we continue with its preparation. The city has a finite amount of resources, so prioritizing and then being able to finance projects is crucial for ensuring the city’s long-term sustainability and being responsible stewards of the city’s investments. Staff continues to review the City’s current and future needs for infrastructure projects to better estimate project costs and ensure more accurate forecasting of available fund balances. Discussion Information for the preliminary plan has been prepared and is attached which includes a summary of projects, sources of funds, and estimated fund balances (since the operating budgets have not yet been completed, these fund balances are subject to change). Information is included on projects going out ten (10) years even though our CIP is only for five years. Please note that project timelines are subject to change and that the current timeline is City Staff’s best estimate. Park Development Fund The fund has a small balance at the end of 2023 which can be utilized for some minor projects. No significant inflow of park development fees are anticipated in the near future. Any major park projects will need to be funded out of the Special Projects Fund. Special Projects Fund • The Park System Master Plan is in process. The outcome of that plan will hopefully assist the council in determining what projects are needed and when. The park projects currently listed in the draft CIP may change. The projects, costs and timing are all speculation at this point. • The Police Department training and garage addition is in early discussion stages. It is unknown when or if this project will move forward. • The current $75,000 tax levy/transfer in does not support the needs of this fund.