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Home My WebLink About2. 2015-2019 Capital Improvements Plan 07/08/2014 Village of Mount Prospect Mount Prospect, Illinois INTEROFFICE MEMORANDUM TO:VILLAGE BOARD AND FINANCE COMMISSION FROM:FINANCEDIRECTOR DATE: JUNE 17, 2014 PROPOSED CIP: 2015-2019 SUBJECT: Attached hereto is the proposed 2015-2019Capital Improvements Plan (CIP). The projects being considered for the year 2015total $12,466,095. The five-year total for all projects is $64,262,026. We encourage you to read the Assistant Village Manager’s transmittal letter beginning on page ii. This correspondence describes the purpose of the CIP, highlights some of the more significant projects, and reviews project funding. To help you evaluate our ability to fund the requested projects a five-year financial forecast isprovided for the major operating and capital project funds that supportfunding for the CIP. These forecasts can be found in Tab 9of the document. In general, the projects being presented directly relate to the monies expected to be available. However, from reviewing the CIP requests in conjunction with the five-year financial forecasts I would like to direct your attention to several project areas. General Fund The CIP is showing first-year projectsbeing paid from the General Fund as $853,391(A-10). Projects include Ash Tree Removal and Replacement Plantings (F-13 and F-20), New Sidewalks and Sidewalk Cost-Share Program (F-19 and F-24), Storm Sewer Inspection Program (F-21), and various IT projects (G-3 through G-7 and G-9 through G-12). The five- year average for capital projects to be funded from the General Fund is $979,737. Thefinancial forecast for the General Fund is showing anoperating deficit in 2015of $43,000 with annual deficits increasing eachsubsequentyear through 2019reaching $1.2million.Each year’s deficit will be addressedduring the appropriate budget cyclewith capital projects being deferred as necessaryto help eliminate the deficit.See acomplete five-year forecast for the General Fund and all other major capital Funds beginning on page H-1of Tab 9. Capital Improvement Fund The Capital Improvement Fund was created to support intermediate sized capital expenditures for various departments that are non-recurring in nature. Some examples of these projects are detention pond improvements, emergency generators and public building improvements. Supported by a one-quarter cent home rule sales tax, there is approximately $1.2 million annually available for these types of capital projects. A total of $2.5 million in projects are budgeted for 2015. Reserves totaling $1.5 million permit the higher than usual spending for the year. Some larger projects planned for 2015 include Public Works Roof Repair (F-9),KBC Jogging Path (F-10) and Detention Pond Improvements (F-6). Projects included in the five- Proposed CIP June 17, 2014 Page 2of 3 year plan beyond2015 will need to be further prioritized with some deferrals to bring the total annual amount down to what can be supported with current revenue streams. Motor Fuel Tax Fund (MFT) The Motor Fuel Tax Fund supports various maintenance programs of village streets. Activities supported include crack filling, pavement markings, salt/calcium chloride purchases, utilities and traffic light maintenance. The MFT Fund also supports a portion of the street resurfacing program. Receipts from motor fuel taxes have been flat for the past several years. Due to a lack of growth in revenue, the amount allotted to the annual street resurfacing program had to bereduced. During 2013, a long-range funding plan was put in place to address the street program’s annual funding shortfallwhile eliminating a resurfacing backlog that had grown to over 13 miles.A combination of tax and fee increases along with the reallocation of vehicle sticker monies into the Street Fund reducesthe reliance on MFT to support the resurfacing program. Annual spending on street resurfacing during the five-year capital plan is $550,000. Street Improvement Construction Fund Projects This fund supports the annual street resurfacing program and other street-related projects. Funding comes from a quarter-cent home rule sales tax along with the local motorfuel tax and vehicle sticker fees. The current funding plan for street resurfacing was put in place during 2013 due to falling revenues in this and the MFT Fund. A total of $3.9 million is budgeted in 2015, of which $3.7 million is for the annual street resurfacing program. The five-year average for the resurfacing program paid from this fund is $3.9 million. Sufficient funds are projected to be generated annually to support the resurfacing program through 2019. Adjustments to the program may need to be made at that time to ensure adequate fundingcontinues. Flood Control Construction Fund Projects Bond issues in 2013 and 2014 provided funds to complete work recommended by the comprehensive storm water study completed in 2011. Payment on the bonds will come from a quarter cent home rule sales tax. Projects included in the 2015-2019financial forecast are maintenance in nature and include creek tree trimming and bank stabilization, neighborhood drainage improvements and costs related to the operation of Levee 37. The five-year average funding needs for the flood control program is $345,000. Water and Sewer Fund There are several large capital projects included in the CIP for 2015-2019.The first is the ongoing combined sewer Improvement project started in 2006. The total cost for the project was originally estimated at $15 million and expected to take 10 years to complete. Funding for this project comes from a $5 per month sewer construction fee and basic sewer usage fee. The project is expected to be completed by the end of 2015. There is $800,000 budgeted for the final year of the project. Other major projects planned for 2015is the implementation of a residential AMR system(F-5)andwater and sewer main repairs/replacement (F-3 and F-8). Proposed CIP June 17, 2014 Page 3of 3 A joint workshop with the Village Board and Finance Commission to review the CIP is scheduled for July 8. Staff will be on hand to discuss project submittals and their impact on operations. David O. Erb Finance Director Copy:Michael E. Janonis, Village Manager Dave Strahl, Assistant Village Manager Lynn Jarog, Deputy Finance Director Department Directors Joint Workshop Tuesday, July 8, 2014 6:30 P.M. 2015-2019 Capital Improvements Plan May be viewed on The Village’s website at: http://www.mountprospect.org/index.aspx?page=178