AgdaPkt 2013-04-22 - Laserfiche WebLink

Browse Search

8.B. - Page 1 RE PO RT To the Honorable Mayor and City Council From the Cit Mana er April 22, 2013 SUBJECT Revised Capital Improvement Program budget for the fiscal year 2013-14 3-14 RECOMMENDATION Review the proposed revisions to the Capital Improvement Program (CIP) budget for fiscal year 2013-14 and provide direction to staff. BACKGROUND The CIP budget for fiscal year (FY) 2013-14 is the second year of the City's adopted budget for fiscal years 2012-14 and part of a five-year forecast. Staff returns to Council to report on progress made in the first fiscal year and to receive additional input and direction for the second fiscal year. The annual CIP budget is developed within the context of a five year forecast which provides a mechanism for long-range planning. The five year forecast is attached to this report. When preparing the forecast, staff reviews the prior year's activity and removes completed projects, updates the estimated time and cost to complete continuing projects, and adds new projects as available revenue allows. The forecast includes both projects and programs. Programs typically reflect ongoing annual maintenance expenditures such as pavement resurfacing or equipment replacement. Historically, program funds are expended in a fairly linear fashion over many years, reflecting the maintenance nature of the programs. In contrast, projects are typically the installation of new infrastructure, construction of new facilities, or major rehabilitation of existing facilities beyond the scope of annual maintenance. Projects may also include the study or design phases of new facilities and infrastructure. The CIP budget proposes expenditures of $27,279,944 for FY 2013-14. Funding sources include the Utility Users Tax, Gas Tax Construction Fund, Transportation Fund (Measure A), Grants and Fees Fund, Water (Capital) Improvement Fund, and Sewer (Capital) Improvement Fund. These funds are defined below: 1. Utility Users Tax (UUT) Revenue from the UUT, less debt service, is the major funding source of the Capital Project Fund and the Gas Tax Construction Fund. Projected revenue from the UUT is $9.4 Million in FY 2013-14. Debt service resulting from bond activity is $1.0 Million.