Submitted By
Steve Drazner, CFO
Agenda Item Title
Title
Review of the Recommended 2018-2022 Capital Improvement Plan (CIP).
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Overview
Overview
This is the first meeting of the Finance Committee to review of the five-year Capital Improvement Plan (CIP). This meeting will be an introduction and review of how the document is organized. The Village’s financial advisor will be in attendance also to discuss debt, anticipated future borrowing and alternatives.
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Anticipated Future Actions/Commitments
Recommendation
The Finance Committee is scheduled to meet on Tuesday, September 12, 2017 at 6:30 PM. That meeting will review the recommended CIP for the Enterprise Funds (Parking and Water/Sewer).
In addition, the Finance Commission is scheduled to meet on Tuesday, September 19, 2017 at 6:30 PM to review the remaining portions of the CIP which include the Capital Improvement Fund, the Building Improvement Fund, the Equipment Replacement Fund and the Fleet Replacement Fund.
The Village Board will review the CIP on Monday, September 25, 2017 as a part of a Special Meeting and the will be asked to adopt 2018-2022 Five Year Plan as part of the regularly scheduled meeting of the Village Board on October 2, 2017.
Body
Report
The meeting will begin with a review and discussion of the Village’s outstanding debt, anticipated future borrowing and the impact of alternatives. Kevin McCanna with Speer Financial, the Village’s Financial Advisor will be in attendance and will review “Bonds 101”.
The five-year recommended CIP includes all recommended capital expenditures. Depending on the CIP project or purchase, these expenditures are allocated either directly to one of the four CIP specific Funds or to an operating department budget. The following Village Funds contain budgeted CIP expenditures:
1) Capital Improvement Fund #3095
2) Building Improvement Fund #3012
3) Equipment Replacement Fund #3029
4) Fleet Replacement Fund #3032
5) Madison Street TIF Fund #2072
6) CDBG Fund #2083
7) Water/Sewer Fund #5040
8) Parking Fund #5060
Chapter 2 of the Municipal Code establishes the foundation for the Municipal Budget and provides that:
• 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.
Below is a summary of the recommended CIP expenditures by Fund:
Please note that while five years of CIP expenditures are presented in the recommended plan, only Fiscal Year 2018 may be legally adopted for appropriation while FY 2019 to FY 2022 are presented for strategic and informational purposes only.