HomeMy WebLinkAbout7.a. 2016-2025 City of Rosemount Capital Improvement Plan
E X E C U T I V E S U M M A R Y
Planning Commission Meeting Date: November 24, 2015
Tentative City Council Meeting Date: December 15, 2015
AGENDA ITEM: 2016 – 2025 City of Rosemount Capital
Improvement Plan
AGENDA SECTION:
New Business
PREPARED BY: Kyle Klatt, Senior Planner AGENDA NO.
7.a.
ATTACHMENTS: City Council Work Session CIP Executive
Summary from Dwight Johnson, City
Administrator; 2016 - 2025 Capital
Improvement Plan; CIP from the 2030
Comprehensive Plan
APPROVED BY:
K.L.
RECOMMENDED ACTION: Motion to find the 2016 - 2025 Capital Improvement
Plan in Compliance with the Rosemount Comprehensive Plan.
SUMMARY
The Planning Commission is being asked to review and recommend approval of the 2016 – 2025
Capital Improvement Program for the City of Rosemount. Minnesota Statute 462.356 Subd.2 requires
that the Planning Commission provide a written report to the City Council that the Capital
Improvement Plan (CIP) is in compliance with the Comprehensive Plan.
BACKGROUND
The City of Rosemount prepares a 10-year CIP to anticipate the financial needs of the City capital
facilities beyond the current year’s budget. Minnesota Statutes requires that the Planning Commission
review the CIP to ensure that the investments made by the City are in compliance with and implement
the goals of the Comprehensive Plan. To help make that determination, the Planning Commission is
provided the proposed 2016 – 2025 CIP and the 2008 – 2017 CIP that was contained in the adopted
Comprehensive Plan.
The purpose of a Capital Improvement Program is to provide a multi-year plan of major projects and
related expenditures. It is intended to be used as a tool for identifying future infrastructure and public
improvement projects and to ensure that these projects are timed appropriately (i.e. to avoid situations
like a street reconstruction project followed in a subsequent year by a water main project in the same
area). The CIP is also used as a long term financial guide to identify expenditures and related funding
sources. The Planning Commission’s role is to primarily review the CIP for consistency with the
future land use plan for the City; the operational portions of the CIP (i.e. equipment purchases,
building maintenance, etc.) fall outside the scope of the Commission’s principal responsibility
concerning land use.
Both CIPs include investments in new parks, replacement or upgrades to public facilities, replacement
or purchase of new equipment to maintain the City’s infrastructure, and investments for new
infrastructure. As noted during previous CIP reviews, there are some differences between the two
CIP’s due in part to projects that are directly related to the pace and phasing of development activity
2
within the community. For example, Well #16 is listed as a 2010 project in the Comprehensive Plan,
but did not get funded until this year (hence it is no longer listed in the CIP beyond the current year).
Another example is the water storage facility, now shown as a 2016 project, which has been delayed
due in part to a slower pace of development than was anticipated in the Comprehensive Plan. Similar
delays are reflected in the timing for new park improvements.
The City installs infrastructure and replaces vehicles when needed, and an assessment is done to
determine whether necessary or not. Scheduling of the capital expenditure in a specific year does not
automatically ensure that purchase will occur. Additional review is conducted the year prior to the
proposed expenditure. It should be noted the CIP only includes infrastructure that the City will be
constructing, such as wells or water treatment facilities, not infrastructure that developers would be
installing such as new streets or lift stations.
RECOMMENDATION
Staff recommends that the Planning Commission find the 2016- 2025 Capital Improvement Plan in
compliance with the Comprehensive Plan.
EXECUTIVE SUMMARY
City Council Work Session: November 9, 2015
AGENDA ITEM: 2016 Budget and Capital Improvements
Plan
AGENDA SECTION:
Discussion
PREPARED BY: Dwight Johnson, City Administrator AGENDA NO. 2.b.
ATTACHMENTS: Draft CIP for 2016-2025 APPROVED BY: ddj
RECOMMENDED ACTION: Review proposed budget modifications and draft Capital
Improvements Plan
BACKGROUND
The City is scheduled to take action on the final budget on December 1st and also should take action on
updating the long-range Capital Improvements Program (CIP) before the end of the year. Staff is
requesting some final modifications to the 2016 budget and also is presenting a draft CIP budget for
consideration.
DISCUSSION
The City recently completed the refunding of a bond issue for First Station #2 which will save $32,828 in
our debt levy for 2016. Staff proposes to direct these savings into two areas. First, add a line item to the
Council budget for Open Government Initiatives in the amount of $22,828 which will be used for the
acquisition of software for greater transparency in our City finances and also to support a community
visioning effort for the Comprehensive Plan update. Second, we propose to use the final $10,000 in
savings to reduce the presumed sales tax exemption savings from $60,000 to $50,000 in the Council
budget. With these modifications, the property tax levy for 2016 will have the same increase of 1.95% as
approved in the preliminary budget in September.
Also, each year the City updates its 10 year Capital Improvements Plan. The plan helps the City to
financially prepare for major projects or expenditures relating to City equipment, buildings, or
infrastructure. In some cases, previously planned projects may now be projected for different years. The
Planning Commission reviews and advises the Council each year on whether or not the proposed CIP
update complies with the overall Comprehensive Plan of the City. It is proposed that this draft plan be
forwarded to the Planning Commission later this month and be brought back for final review and approval
by the City Council in December.
Highlights of the revised CIP include allocating $1,250,000 over the next two years toward indoor
recreation facilities. Area athletic associations have identified indoor facilities as their top priority at this
time and possible projects include indoor courts and gyms, a turf field with a dome option, and a new
sheet of ice. We believe this City funding may help leverage considerable private investment in one or
more of these facilities. New parks are also scheduled to coincide with new developments. Danbury Way
is scheduled for reconstruction in 2016.
2
There are several major road projects over the next several years that will require City matching funds
primarily from our Minnesota State Aid (MSA) funding allocation from the State. These projects include
improvement of the County 42/Highway 52 interchange, improvement of McAndrews Road to a three-
lane section, and the construction of the interim improvements for north Akron Avenue (County Road
73). Within the next five years, we also project the need to pave Biscayne Avenue from County 42 to
County 46 and possibly develop Akron Avenue for ½ mile south of County 42 to support new
development at UMore Park.
A new water well is shown in 2018 and possible construction of a water treatment plant is shown in 2019.
Finally, a substantial amount of the City’s equipment inventory is scheduled for replacement in the next
several years. We will be recommending that a substantial portion of any General Fund surplus at the end
of this year be allocated to the Equipment CIP to help with this need.
RECOMMENDATION
The Council should review and direct staff regarding both the budget modifications and the draft CIP. If
the draft CIP is acceptable, it should be forwarded to the Planning Commission for its review later this
month.
10-YEAR CIP
WORKING PROGRAM
2016-2025
10-YEAR CAPITAL IMPROVEMENT PLAN (CIP)
BACKGROUND
Historically, the City of Rosemount has usually had some form of CIP in place to utilize for
its capital improvements. There have been times where just a single year’s capital
improvements have been addressed and funded. For many years a 5-year CIP was utilized.
Over time it was felt that the best way to plan for the future was to look out over a period of at
least 10 years. What evolved is the following 10-year Capital Improvement Plan. We believe
that great strides have been made to more accurately plan for the future of the City of
Rosemount. This document is only a working guide that is utilized by the City Council and
its staff to prepare for the future. The first year of the plan will be included as part of the
formal budget that is prepared yearly as part of our Truth-in-Taxation process with the
following years developed as a working tool for future years’ discussions.
GENERAL/ADMINISTRATIVE DESCRIPTION
The CIP provides for specific funding of items that are generally of a higher estimated cost
than $5,000 and will have a life expectancy of 3 years or greater. The source of funding for
these expenditures is typically the general tax levy. In some instances, other funding is
utilized. For example, revenues received from user fees are being designated in various CIP
funds for capital improvement/equipment purchases. Individual departments are designated
for each item proposed for purchase in this plan.
TYPES OF CAPITAL IMPROVEMENT FUNDS
The CIP includes three separate funds to isolate and better track the types of capital
improvements being planned for. The following briefly describes each of the three:
Building & Facilities CIP Fund - This fund is used to account for the on-going capital
improvements and possible additions to government buildings and other facilities. This fund
also is utilized for “special projects / items” that are funded mainly with SKB revenues –
monies outside of the typical tax levy funding.
Street CIP Fund - This fund is used to account for the on-going street and trail construction
and reconstruction projects within the City and all other major maintenance items related to
both paved and unpaved streets including, but not limited to, street lights, signal lights,
sidewalks and gravel road resurfacing.
Equipment CIP Fund - This fund is used to account for the on-going replacement of and
additions to City equipment.
MS
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