AgdaPkt 2007-04-23 - Laserfiche WebLink

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80 Page 1 REPORT To the Honorable Mayor and City Council From the City Manager April 23, 2007 Subject Capital Improvement Program Fiscal Year 2007/2008 First Study Session. Recommendation Review and provide direction to staff regarding the FY 2007/2008 CIP expenditures and priorities. Background The total of the proposed FY 2007/2008 CIP budget for Capital Project Fund (CPF), Gas Tax Construction Fund (GTCF), Transportation Fund (TF), Grants and Fees Fund (GOFF), Water Improvement Fund (WI F), Sewer Improvement Fund (SIF), GID 1-64 Facility Fund and the Redevelopment Agency/CDBG is $16,925,673 (see Attachment A). The purpose of this Study Session is to provide Council with an initial opportunity to review and comment on the proposed CIP budget. The CIP budget will be revised accordingly and returned for Council's final consideration during the formal budget review period in June, 2007. At the Council Study Session, June 26, 2006, there was concern about the potential loss of funding from the Utility Users Tax (UUT) and the impact to the FY 2006/2007 CIP budget. Subsequently, the City Council approved the FY 2006/2007 budget with a provision that short term capital spending on specified projects be withheld until the future reliability of UUT funding could be better determined. On July 24, 2006, staff set a $2 million short term spending limit for the FY 2006/2007 CIP budget (see Attachment B), with a review provision from January to July, 2007, to release the flmding. To date, the City has not realized a significant reduction in UUT revenue, therefore staff will release the FY 2006/2007 $2 million spending limit in May, 2007. However, an estimated $2 million-$2.5 million in UUT revenue is still at risk because of legal challenges in other cities, technological changes, and potentially adverse Federal and/or State legislation. The UUT issue and short term spending limit for FY 2007/2008 will be separately addressed at a later Council meeting. Alternatives Revise the proposed projects and provide direction to staff.