AgdaPkt 2011-10-24 - Laserfiche WebLink

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7. B. - Page 3 • Developing a comprehensive capital improvement program for existing and recommended future water system facilities and evaluating potential funding scenarios. The plan's objectives will guide selection criteria for CIP projects. Program performance will be annually reviewed by staff during the budget process. The proposed plan includes preliminary forecasts for CIP improvements that may occur beyond the 20 -year timeframe of the plan. It also includes a study of improvements required for future growth for development planning purposes. The costs of forecasted work and system expansion for future growth have been excluded from the proposed budgeting scenario. The plan assumes that system expansion will be funded by developers. Attached, for Council's reference, is the Executive Summary Chapter from the Water System Master Plan. This chapter synopsizes the key technical findings that result in the recommended Capital Improvement Program and Funding Analysis. Figure ES2 in attached summarizes the proposed CIP. The full text of the proposed Water System Master Plan Report is available for review in the Clerk's Office and in the Community Development Department. Engineering staff has updated the Utilities Committee on the progress of the Water System Master Plan twice; on July 27, 2011, when the plan was 90% complete and on September 14, 2011, at 100 %. At those meetings the project's challenges and analysis techniques were discussed and the proposed 20 -year citywide water system Capital Improvements Program (CIP) was presented to the committee. ALTERNATIVES Council may choose not to accept the Water System Master Plan Report and direct staff not to proceed pursuant to recommendations contained therein. Council may also direct staff to reevaluate the findings and resubmit a revised Water System Master Plan Report at a later date. FISCAL IMPACT Staff recommends a program budget plan of $117 million over a 20 year period to implement 47 improvement projects and programs. The 20 -year program budget assumes a 4% annual inflation rate. The Utilities Committee is considering rate increases to fund the proposed CIP program. Current City Water Enterprise Financial Projections estimate customer rate increases between 3.5% to 12% annually to fund system operational costs, debt service, reserves, the Meter Replacement Program, the Conservation Program, and the Capital Improvement Program as recommended in the proposed through fiscal year 2019 -2020. Rates may be annually adjusted by Council as recommended by the Utilities Committee.