HomeMy WebLinkAbout6.k. Capital Improvement PlanCITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR -ACTION
CITY COUNCIL MEETING DATE: MAY 7, 1991
AGENDA ITEM: CAPITALIMPROVEMENT PLAN
AGENDA SECTION:
NEW BUSINESS
PREPARED BY: STEPHAN JILK,`CITY ADMINISTRATOR
AGENDAM
7T
M 6K
ATTACHMENTS: MEMO
APP ED'?Y:
This item will be the consideration of approval to have our Financial
Consultant provide technical assistance to staff in developing a 5 year
CAPITAL Improvement Plan.
This plan would provide a five year program for all project development
and equipment purchasing which is not development driven.
We now have a Five Year CIP which is basically an equipment
purchase/replacement plan. This new plan would recognize all street
reconstruction, storm water management projects, facility needs, parks
development and equipment purchasing and then designate funding sources and
needs for the financing of the plan.`
RECOMMENDED ACTION:
A motion to authorize the development of a Five Year Capital
Improvement Plan for the City of Rosemount and to direct that
Springsted Inc. be retained to work with city staff to complete the
plan at a cost not to exceed $9600.
COUNCIL ACTION:
TO:
FROM:
DATE:
RE:
Mayor Napper
Council Members Klassen, Oxborough, Willcox, Wippermann
Stephan Jilk, City Administrator
May 3, 1991
Development of Capital Improvement Plan
As the city continues to experience growth and we continue to make more and
more major expenditures with revenues coming from many different sources it
is emportant to put into place a long range plan as to these expenditures
and these sources of revenue. Without such a plan we are more or less
"shooting from the hip" on our financing methods and capabilities.
We do have in place and have had in place a CIP (Capital Improvement Plan)
which provides us with a five year budget for major equipment purchases and
some park improvements. This is quite limited in the sence that it covers
only a small portion of our major expenditures which we need to budget for.
Such expenditures would include:
1. Equipment
2. Park Improvements
3. Street Reconstruction
4. Stormwater Management Projects
5. Water/Sewer Replacement
6. City Facility Construction
Sources of funds for these expenditures may include:
1.
2.
3.
4.
5.
6.
7.
8.
General Taxes
Special Tax Levies
Assessments
Connection Charges
Users Fees (water, sewer, storm sewer, park)
Contributions or Donations
Grants
Debt (General Obligation Bonds, Assessment Bonds, Equipment
Certificates, Revenue Bonds)
The use of any or all of these revenue sources may have an effect on taxes,
bond rating, or the capacity for utilities to operate properly.
What we need is an overall picture of what our needs are and what our
capacity to pay for them is and how the use of different methods of
financing effects us.
We need to develop a Capital Improvement Plan encompassing all of our major
expenditures over a five year period so proper, effective and efficient
planning can take place for the maintenace of our city's infrastructure,
park system, equipment and facilities.
We have contacted our financial consultants at Springsted and have had two
meetings with Rusty Fifield, one of their consultants, to discuss methods
of completing such a plan. Mr. Fifield has developed a program and cost
estimate for his company's assistance in developing such a plan for
Rosemount.
Please refer to the attached sheet for that proposal.
The outcome of developing such a plan is really two fold:
1. The document produced would provide us with the first five year
plan reflecting all expected major expenditures for streets,
utilities, parks, equipment and facilities and the sources of
funds for them such as assessments, debt issues, tax levies, etc.
The completion of this document will require input from staff,
Parks & Recreation Committee, Planning Commission, Utility
Commission, EDA and City Council so that we include all of our
needs and decide which methods of financing are acceptable and
available.
2. The document would not be static. It would be one that following
the first year of its completion, with the help of the
consultants, would be something staff could update with review by
the consultant and approval by the various committees and finally
the City Council.
Putting such a document together is a major undertaking especially for
staff. Even though we are in a time of change and least able to take the
time to undertake this, I feel that it is extremely important to do so. We
are entering a time in our growth that without this document to guide us we
may be open to inconclusive planning and decision making for major projects
and expenditures.
The cost estimate put forth in the amount of $9600 is quite a lot of money
but I feel that the results will benefit us ten fold. The estimate
reflects the fact that city staff will be doing a lot of fact finding and
information gathering and will be learning along the way to be able to make
updates and revisions to it in years to come.
I recommend that you consider the approval to proceed with the development
of a Capital Improvement Plan for the City of Rosemount and to hire the
firm of Springsted, Inc. at an amount not to exceed $9600.
04/04/91 13.24 $812 223 3042
City of Rosemount
Proposed Work Plan
Capital Improvements Program
Task 1 Preparation/Data Collection
Prepare project worksheet and other
Information needed to assist city staff
with collection of data concerning
capital improvement projects.
Cather additional data as needed to
supplement Initial Information.
Task 2 Analysis
Lvud prvjuut inI'virmutivri iniv ooiopuler
model.
Determine alternatives methods of
financing projects.
Prepare preliminary analysis and review
with city.
Revise analysis based on meeting.
Task 3 Report
Prepare written report
Present report
SPRI Nt,STED INC. 2002/002
105 $9,611
Hours Cost
16 1,468
4 420
11 997
20 1,828
16 1,468
8 674
20 1,948
10 Boa
All nation BY Pp.Sition
Project Manager 46
Analyst 36
Clerical 23