Submitted By
Steve Drazner, CFO
Agenda Item Title
Title
An Overview presentation of the Recommended Five Year Capital Improvement Plan (CIP) 2021-2025:
1. CIP Process (5-year capital plan)
2. Main Capital Fund
3. Building Improvement Fund
4. Fleet Fund
5. Equipment Replacement Fund
6. Sustainability Fund (Capital Items Only)
7. Water and Sewer Fund (Capital Items Only)
8. Parking Fund (Capital Items Only)
9. CDBG Fund (Capital Items Only)
End
Overview
Overview
As part of the budget process the Village Board is provided a five year recommended Capital Improvement Plan (CIP). This first year is presented for inclusion in the FY21 budget and future years and provided to identify future capital needs in the Village. No action is requested at this time the recommended CIP.
Body
Anticipated Future Actions/Commitments
Staff will prepare the final document for Village Board adoption with the operating budget in December.
Report
The recommended CIP is developed in consultation with the Village Engineer, Public Works Director and multiple other operating departments. Village Manager, Deputy Village Manager, and CFO held multiple discussion review and discuss all requested projects with operating departments in order to prioritize projects with the ongoing revenue reductions that are expected to continue into 2021 as a result of the pandemic. Dedicated CIP revenues include:
Local Gasoline Tax ($.06 gallon), Home Rule Sales Tax (1.0 %) and Cannabis Tax (3.0% recreational sales).
Departments also rated each project based on need and priority. The first year of the plan (2021) will serve as the foundation for all capital elements of the FY21 recommended Village budget which will be reviewed during October and November in advance of the final budget approval in December by the Village Board.
Engineering also uses the five-year plan as a guide to plan for upcoming design work for various projects. Specifically related to the next fiscal year’s (FY21) recommended capital projects, engineering begins to prepare bid documents now for anticipated approved “annual projects” such as the annual streets resurfacing project and the annual alley repair project. This is done in order to improve the Village’s position to receive favorable bids by being prepared for an early spring bid letting requiring engineering to write the bid documents this fall/early winter. Reductions in funding for these projects in 2021 will eliminate much of this work.
This is the sixth 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. Appreciation is extended to Village staff for the significant work they have done in order to present information to CFO Drazner, Finance staff and myself in order that a recommended budget could be presented which accounts for the fiscal impact of COVID-19.
Through October and November special meetings will be held with the Village Board of Trustees to review the CIP and the recommended FY21 budget which will be posted to the website and presented to the Village Board on or about October 12. It is requested that the Village Board approve a five year CIP document no later than adoption of the FY21 Budget in December.