Title
Presentation and Discussion: FY2027 Capital Improvement Plan Kickoff
Body
Issue/Request
FY2027 Capital Improvement Plan Kickoff Discussion
Key Issues:
o The Annual CIP provides a 5-year fiscally constrained plan of capital projects to complete; guided by master planning documents.
o Nearly all of the projects in the CIP and projects proposed to be included in the CIP were committed in some form through previous public elections that approved dedicated funding sources (such as sales taxes and bond issues).
o Many more capital projects remain unfunded and do not get added to the CIP.
o Unfunded projects identified in master planning documents or by emerging critical needs are added to the CIP as funds become available and in accordance with guidance from elected officials.
Background:
City staff presents an overview of the annual process to develop a financially constrained Capital Improvement Plan (CIP); adopted by the Planning Commission as required by State Statutes and adopted by City Council as part of the annual budget. Projects are identified through strategic plan goals, such as Ignite!, and in master plan project lists (which also have public engagement prior to plan adoption), such as the Thoroughfare Master Plan, Water and Wastewater Master Plans, and Greenway Master Plan, that are contained in the City's Comprehensive Plan. Projects are also identified as emerging needs, for compliance with federal and/or state regulations and permits, in partnership opportunities, and through public comment and City Council legislative priorities. Program related capital improvements are typically aimed at maintaining infrastructure levels of service, regulatory compliance, and adequate asset conditions. Generally, it takes several years to accumulate funds from various sources to add new projects as projects are typically not debt financed, unless funded by a bond issue. If bond funded, project delivery schedule is guided by City Council priorities as other resources, such as staffing for management and inspection allow. Funding for capital improvements usually occurs through elections such as a no-tax-increase bond issue, renewing a sales tax, or establishing user fees. Projects already funded in the CIP can be re-sequenced if priorities change or adjust the timing of the work based on available funding, grant opportunities and other resources necessary to carryout the work.
The City's 2020 Strategic Plan iGNITE and Ignite! Comprehensive Plan were developed through public input of stakeholders and guidance from elected officials. Elected officials have requested earlier input into the annual CIP to prioritize project funding and consider new projects or project sequencing changes. This FY2027 CIP kickoff presentation will review the CIP process, required projects, comments from public input, new programs, etc. The purpose of this presentation is to promote discussion and high level guidance in developing the CIP. This presentation will cover the general framework that has typically been used to evaluate and prioritize funding for future projects such as bond issue projects and may assist in the identification of unfunded projects for which a future No Tax Increase Bond issue or future sales tax renewal or future fee/revenue structure (such as Park Impact Fee or Storm Water Utility) may include. The presentation and discussion will also include the overall expectation and schedule for CIP delivery to City Council for adoption; which typically coincides with the annual City budget approval by City Council.
The CIP Process for FY27 generally aligns with the associated budget calendar since the CIP is adopted by City Council as part of the budget.
Timeline:
Start: CIP Process Starts November 2025
Finish: CIP Adopted as part of Annual Budget (June 2026)
Presenter
George Binger, Deputy Director of Public Works/City Engineer