RES 93108 - Laserfiche WebLink

DATE: REVISED JULY 20, 1993 TO: Mayor Tarver and Members of the City Council FROM: Deborah Acosta, City Manager SUBJECT: Capital Improvement Program for Ftseal Years 1993/94-1997/98 INTRODUCTION This Five Year Capital Improvement Program has been prepared to provide the City Council and the community with information necessary to identify capital improvement needs over the next five years. It is recommended that Fiscal Years 1993/94 of the plan be adopted and that funds be appropriated to cover the projects included in that year. The next four years of the plan are tentative based on currently identified needs and is subject to revision to accommodate changes in priorities or expected fuming levels. Staff will continue to review and update the program annually, taking into account any changes in community needs and the City's ability to finance and support specific projects. Because approximately 33 % of the total revenue available to the Capital Improvement Program is derived from development fees assessed by the City, the status of the economy and the amount of local development activity during the .next several years will play a major role in the City's ability to finance the projects included in this program. To address this situation, development related revenue earmarked for FY 1993/94 is primarily derived from development related revenue collected in FY 1992/93 and existing fund balances. In addition all development revenue is identified in the year it is expected to be collected but transferred to the next year to maintain consistency with this approach. By utilizing the above revenue forecasting 'method, the City avoids revenue shortfalls resulting from less than anticipated development revenue and minimizes the financial impact of future development trends. This method does result in a small negative balance of $161,251 in the Water Program in FY 1997/98. However, the negative balance does not actually impact current or proposed expenditures since actual appropriations are only made for the first year of the program (FY 1993/94). The only exception to this approach is that $180,035 in development fees collected in FY 1993/94 are included as revenue for the Miscellaneous Program in FY 1993/94. Because this represents only 9.5% of the fees projected to be collected, the potential for not collecting these fees is minimal. This exception has been used in previous CIP's and reflects the need to fund Miscellaneous Programs based on existing demands.