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9.A. - Page 19 of 21 In Fiscal Years 2022-23 through 2024-25, the City does not have any estimated additional payments, as certain existing amortization bases will be paid off (amortization bases consist of pension plan components used to project the City's annual unfunded liability). The City's additional payments would ramp up again in FY 2025-26 as new bases are created. In the Ten -Year Forecast, minimum additional contributions of $250,000 have been estimated, as contingency, for the years that additional payments are not required. Capital Improvement Plan (CIP) The CIP is a valuable resource to achieving the City Council's strategic priorities. Each year, the CIP project recommendations are presented to the City Council in the spring for adoption with the budget in June. Proposed projects include infrastructure and facility upgrades, as well as major capital investments in the community. Based on City Council direction, projects are prioritized and funding is then allocated for the upcoming fiscal year. A Five -Year CIP is prepared for City Council review annually. The Five -Year CIP provides a longer-term perspective on needed capital investments and is a fiscal and strategic tool to plan, fund, prioritize, and monitor capital investments in the community. The Five -Year CIP includes the proposed capital budget for FY 2020-21, as well as planned project needs for FY 2021-22 through FY 2024-25. The proposed Five -Year CIP includes 82 projects with an estimated cost of $395.5 million. The recommended CIP budget for FY 2020-21 includes $18.1 million in new funding requests. Projects are funded from many sources, including the Capital Outlay Fund, Transportation Fund, Special Gas Tax Fund, Traffic Mitigation Fees Fund, Parks Impact Fees Fund, Parking Operations Fund, Art in Public Places Fund, Parking In -Lieu Fees Fund, Water Capital Projects Fund, and Sewer Capital Projects Fund. A study session was held on April 27, 2020 for the CIP budget. During the study session, staff recommended that a $2.0 million General Fund allocation toward transportation and roadway projects be dedicated to Phase 1 of the Hopkins Traffic Calming Project ($1.4 million), the Theater Way Closure ($400,000), and the Traffic Safety Program ($200,000), but that work on those initiatives be postponed until after the City Council considers budget adjustments in October 2020. This funding was recommended earlier in the year when a higher operating balance was predicted. Now that a recession is underway, in order to preserve funding for general City operations, staff recommends that $750,000 be transferred from the General Fund to the CIP for transportation projects, rather than $2.0 million, and that the Hopkins Traffic Calming project be postponed. Budget Adoption The City Charter requires that the City Council establish the date for the public hearing of the budget and establish by resolution the date for final adoption of the budget. The proposed date for the public hearing and adoption of the budget is June 22, 2020, which is included in the attached Resolution. The budget will be presented to the Council for adoption with any revisions identified. Page 19 of 20 City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore 708