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11-13-18 CC WS Agenda Packet CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD CITY COUNCIL WORK SESSION COUNCIL CHAMBERS TUESDAY, NOVEMBER 13, 2018 IMMEDIATELY FOLLOWING CANVASSING BOARD MEETING AGENDA 1. CONVENE CITY COUNCIL WORK SESSION A. Roll Call Mayor Zerby _____ Johnson _____ Labadie _____ Siakel _____ Sundberg _____ B. Review Agenda ATTACHMENTS 2. CIP Finance Director Memo 3. STREET CIP DISCUSSION Engineer Memo 4. ADJOURN #2 MEETING TYPE City of Shorewood Council Meeting Item SPECIAL Capital Improvement Plan 2019-2028 Title / Subject: Meeting Date: November 13, 2018 Prepared by: Joe Rigdon, Finance Director Reviewed by: Greg Lerud, City Administrator; Marie Darling, Planning Director; Larry Brown, Public Works Director; Alyson Fauske, City Engineer Attachments: Capital Improvement Program 2019-2028: Projects by Funding Source Capital Improvement Program 2019-2028: Street Improvements: Projects & Funding Sources by Department Capital Project funds Revenue & Expenditure Projections Policy Consideration: On an annual basis, the City Council adopts a Capital Improvement Plan (CIP). The CIP lists major capital improvements, and the sources to pay for them. Items in the CIP are not mandated, and the Council reviews capital spending throughout the year. Background:  Shorewood Community & Event Center (SCEC): Capital items for the SCEC include building improvements and equipment for the Center. Transfers from the General Fund are the planned source to pay for these items.  Park Improvements: Badger Park playground improvements are listed for 2019 in the amount of $550,000. To partially fund the playground improvements, a transfer in of $120,000 from the General Fund to the Parks capital fund is contemplated for 2018, specifically to pay for the authorized poured in place rubber surface. The Parks capital fund balance is projected to remain positive through 2020, but shows significant fund balance deficit balances for 2021 and thereafter. In order to complete the proposed park projects beginning in 2021, revenue sources will need to be determined.  Equipment Replacement: The majority of the CIP for equipment replacement pertains to Public Works items, and also includes some administrative technology items. The City’s Equipment Replacement capital fund projection maintains a positive level throughout the duration of the ten-year CIP. A transfer in of $140,000 from the General Fund is currently budgeted for 2019, and is scheduled to increase thereafter by $5,000 per year.  Street Improvements: City staff has met and discussed overall infrastructure system recommendations and is proposing the following options: Mission Statement: The City of Shorewood is committed to providing residents quality public services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership. Page 1 2019: Island Roads o 2020: Glen/Amlee/Manitou, and Woodside o 2021: Edgewood, and Excelsior Blvd o 2022: Birch Bluff, and Noble Road o 2023: Strawberry, Grant Lorenz, and Eureka o For each of the proposed street improvement projects, it is assumed that the Water, Sewer, and Stormwater funds will fund associated utility costs. A transfer in of $810,000 from the General Fund to the Street Reconstruction fund is currently budgeted for 2019 and is scheduled to increase thereafter by $25,000 per year. It appears the Street Reconstruction fund will have sufficient funds to pay for the 2019 street improvement projects without additional financing. However, beginning in 2020, the Street Reconstruction fund activities are projected to result in a significant fund deficit. In addition, the City’s utility funds may be significantly depleted. In order to complete the proposed street projects from 2020 and on, significant financing sources must be determined. This will likely require bonded debt financing, and allow for the spreading of repayments over a period of years. To repay the bonded debt, a combination of annual property tax levies and utility fund contributions will be necessary.  Trails: Placeholder amounts are included. Projects are to be determined.  Utility Funds: The Capital Improvement plans for Water, Sewer, and Stormwater funds include equipment, portions of street infrastructure projects, as well as maintenance and preventative maintenance items. As noted, the utility funds cash reserves are not likely to be sufficient to finance the utility portions of the proposed street improvements. In order to finance the improvements, bonded debt with debt service repayments supported by property tax levies and utility revenues will be necessary. Next Steps and Timelines: The 2019-2028 Capital Improvement Plan will be on the 12/10/18 City Council agenda for approval.