Submitted By
Steve Drazner, CFO
Reviewed By
CLP
Agenda Item Title
Title
Review the Recommended Five Year Capital Improvement Plan (2017-2021) and Direct Staff to Prepare the Necessary Actions for Approval of the Plan in October 2016.
End
Overview
Overview
Staff is transmitting the recommended five-year Capital Improvement Plan (CIP) to the Village Board for review and consideration at a future meeting. The Finance Committee held two meetings - August 29 and September 12, 2016, to review the document with the Village Manager, CFO and Department Directors. In addition, the CIP document was presented for a first reading at the September 19, 2016 Village Board meeting. It is the consensus of the Finance Committee that additional discussion is needed related to the Fiber Optic Project.
Body
Staff Recommendation
Review the five-year Capital Improvement Plan (CIP) for the Village.
Fiscal Impact
The first year of the plan (2017) will serve as the foundation for all capital elements of the FY17 recommended Village budget which will be reviewed during October by the Finance Committee of the Village Board.
It is also noted that in order to improve the Village’s position when bidding capital projects and when scheduling construction of capital improvements, the adoption of a five year capital plan in advance of the annual budget will allow for staff to begin engineer design work and develop bid documents over the winter and be prepared for an early spring bid letting. Subject to approval of the five year CIP, staff will bring forward any contracts necessary for bid.
Background
This is the second year in which staff has formally presented a full five year Capital Improvement Plan (CIP) for review by the Finance Committee of the Village Board over two meetings - August 29 and September 12, 2016.
The FY17 Recommended Budget which is schedule to be reviewed by the Finance Committee during October will be comprised of the first year of the adopted CIP for all Capital Funds as well as the capital portion of the Enterprise Funds for Parking as well as Water & Sewer.
Chapter 2 of the Municipal Code establishes the foundation for the Municipal Budget and provides:
• The Village fiscal year is January 1 - December 31 annually.
• The Board of Trustees must adopt the annual budget prior to the start of the Fiscal Year and passage of the annual budget shall be in lieu of passage of the appropriation ordinance.
• On or before the Village Board of Trustees' first regular meeting in November of each year, the Village Manager shall submit to the Board of Trustees an annual Municipal budget which contains estimates of revenues together with recommended expenditures in conformity with good fiscal management practice.
At the September 12, 2016 Finance Committee, the Committee asked that the Fiber Network Upgrades project be removed from the adoption of the CIP Plan on October 4, 2016 to allow for follow-up questions to be addressed. Some of these questions related to the Fiber Network Upgrades project will be reviewed at the October 4, 2016 Regular Meeting during a related agenda item, the Annual Review of the IT Strategic Plan. A final vote regarding the Fiber Network Upgrades will be part of the budget adoption on December 5, 2016. The CISC is also part of this discussion.
Alternatives
The Board could choose to schedule a special meeting to review the document in detail.
Previous Board Action
The Finance Committee of the Village Board reviewed of the CIP on August 29, 2016 and September 12, 2016 and presented to the Board for a first review on September 19, 2016.
Citizen Advisory Commission Action
The Civic Information Systems Commission reviewed technology items included in the CIP.
Anticipated Future Actions/Commitments
N/A.
Intergovernmental Cooperation Opportunities
N/A.
Performance Management (MAP) Alignment
N/A.