Planning Commission Regular Meeting/Work Session

Melanie ZippstaffWhat you see before you is the layout you have seen for the past four to five years. Finance has made some changes. You'll see in the FY2731 CIP. all programming that was not a true capital project such as the red section which is infrastructure repair and maintenance and we've moved those projects back to the general fund

is a better explanation of why we did it the key points of the projects that are supposed to be and will be in the CIP our projects led the project leads to a capital asset creation or significant improvement in current assets the project has a useful life of five years or more the project costs exceed fifty thousand dollars it is a one-time expenditure it's a major infrastructure or capital development and the project requires long-term financing for these reasons the red repair. You'll see a red section in the book this year because there's still some existing projects that need to be completed. However, we're not adding any new projects to this section. They're being captured in the general fund. The green technology section has been significantly

reduced to only those projects that produce an asset. So all software maintenance and updates have been removed from the CIP and will show up in the general fund. And then the orange section, the vehicle and equipment replacement, will remain in the CIP because it's the most visible and best place to track these expenses. Finance works very closely with our fleet manager, Lee Hall, who does all of the scheduling out of replacements to fit in the CIP scheduling process. these these assets also do fit within the key indicators that I listed earlier on this slide

JC and his team work hard to level out the total dollars needed through the five years within each project and across all projects to ensure we're not top heavy one year over another. And if we are, we have an explanation as to why. This is why it's so important to ask those questions about phasing projects and where additional funding can come from and when it will arrive in the evaluation portion of building the CIP. The total CIP request is $636.7 million, and almost $449 million of that comes out of the general fund. The reason for the increase over the FY2630 adopted CIP are the two projects related to the school bond referendum, which are the elementary school renovations and the new roof for the high school.

Here's where you can see the differences in the numbers. You will notice the infrastructure repair and maintenance has been zeroed out for future funding as it moved back to the general fund. The technology infrastructure fund has significantly reduced because we removed the software maintenance and are only keeping true technology assets in the CIP going forward. Some of the assets listed for these upcoming dollars are replacement of our physical data centers, our servers, for our permanent, and our backup servers. If you look at the Vehicle and Equipment Replacement Fund, you'll see a drop in FY27 and then a slower increase in out years. This is because Mr. Hall is reevaluating each piece of rolling stock.

South Street extension is smart scale funding and the funding is starting in FY 26 through 29 with construction to hopefully start in 2028 and then fire station 3 is a general fund project funding is in place the goal was completion in the fall of 27 but the council is still evaluating that project and we will talk

Juan Carlos MartinezstaffSo they try to purchase them six at a time. We have a fleet of 12, so they do six every 12 years. two years ago so they're still relatively new and we'll wait for those to sort of mileage out or time out before we replace those those aren't general fund funds those are actually I think the RPT funds that we receive to replace those I

Chair Feather, excellent question and as the manager stated there were only seven new projects that were identified this year for FY 27 and going forward as well and only really one of those are large in the sense of financial when it comes to the KJ fields everything else that's sort of listed on the screen right now is relatively small compared to that ten million dollars that sort of displayed there beyond that we the manager and I have looked at the draft CIP and in discussions with other department heads that were proposed we of those items so the current total FY 27 proposed budget specifically associated with the general fund is as lean as can be for that specific purpose because we understand that there's a lot of financial pressure right

Melanie ZippstaffGreat question. If we're looking at the seven new projects, the turf replacement for Stolnecker Field, the high school football field, the $750,000, that field is no longer under warranty and needs to be replaced. two-way radio replacement would be a yes it's not all general fund the Sherwood update does that support

buried the construction debris in that area so things float to the top so So excavating that's going to be fun. I know I'm not giving you any list of priorities, just helping you understand. The other three, I'm sorry, the next two are not general fund. So the funding is available. Sanitary sewer lining is vitally important. We have the, what's it called, Orangeburg pipes in the city, so lining them before we need to replace them, highly important. Bicycle wayfinding signage is funded with CNI funds. It's not coming out of the general fund. And then the data centers for the permanent and the backup servers. It's also very important. It's how we do our day-to-day work. Everything's on computer right now.

Juan Carlos Martinezstaffthat another 1% would generate about that amount maybe a little bit less and that can really offset these amounts that are listed here almost completely if not entirely so that would potentially wipe out that entire row that's listed there from that 1% freeing up general fund dollars for other CIP Again, one checkbox potentially has been checked, as in a potential favorable administration. The General Assembly would still need to pass that if it's brought forward. I think Ms. Sip and others via the legislative program are going to be asking for that to go forward again. So the second checkbox will be the General Assembly passing that in the April-May timeframe. If that does get passed, then it would become law July 1 of 2026.

now have to then have a bond referendum to allow and ask the residents whether they're wanting to do that if that were to happen the timeline there would be November of 26 making it effective July 1 27 or the beginning of FY 28 so this amount is still questionable for FY 27 we would have to fund that or potentially pull debt I know prior language in the potential 1% allowed for a look back we're hoping that that language stays in if it does get passed by the General Assembly and then we would be able to basically refund the general fund anything that had been issued to make up for that so that is a potential it's something that we're hoping happens in the next six to twelve months and then we would you know adjust accordingly