AgdaPkt 2011-04-11 - Laserfiche WebLink

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8.A Page 1 REPORT To the Honorable Mayor and City Council From the Cit Mana er April 11, 2011 SUBJECT Study Session — proposed Capital Improvement Program budget amendment for fiscal year 2011/12 (FY 2011/12). RECOMMENDATION Review the proposed amendments of the Capital Improvement Program (CIP) budget far FY 2011/12 so that the resulting revisions may be considered for adoption when presented to the City Council on June 27, 2011. BACKGROUND During the June 28, 2010 Council meeting, a two year budget for FY 2010/11 and FY 2011/12 was approved. The purpose of today's study session is intended to provide Council with an opportunity to review the CIP budget for FY 2011/12 as amended and proposed. Staff has updated the approved project list and added new projects based on core services and Council's strategic initiatives. Staff will amend the proposed CIP to reflect comments received from Council and return with the revision for Council's final consideration during the formal budget review session scheduled on June 27, 2011. The amended Capital Improvement Program budget totals $15,787,563 for FY 2011/12. Funding sources include the Capital Project Fund (CPF), Gas Tax Construction Fund (GTCF), Transportation Fund (TF), Grants and Fees Fund (GFF), Water lmprovement Fund (WIF), Sewer Improvement Fund (SIF), and Genera! Improvement District 1-64 Maintenance Fund(GID). These funds are defined below: 1. Utility Users Tax (UUT) Revenue from UUT, less debt service, is the major funding source of the CPF and the GTCF. Projected revenue from the UUT is $9,535,096 in FY 2011/12. Debt service resulting from bond activity and the Cemex property acquisition is $1,616,062 for FY 2011/12. 2.Capital Proiects Fund (CPF) The CPF replaces and upgrades the city's infrastructure and public facilities. CIP projects and programs proposed to receive CPF funding are reviewed by the Capital Improvement Projects Advisory Committee. Members of that committee consist of directors and managers from Finance; Public Works Services; Parks, Recreatian, and Community Services; Library; and Engineering and Transportation. Projects are selected/evaluated according to the following criteria: • Projects that have a mandated requirement • Projects that save or reduce operation costs • Projects that will consolidate, strearnline workflow functions, or increase efficiency • Projects where the useful life of the asset may be extended with minimal expenditure • Projects that support City Council Strategic Initiatives