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CAPITAL IMPROVEMENT PROGRAM OVERVIEW

 If it is necessary to issue debt, the maturity schedule will be designed to coincide with the life of
the asset being financed. Every effort will be made to structure the payback at level principal to
ensure the most rapid retirement of debt.

 Enterprise Fund project debt service will be paid or re-paid by the associated Enterprise Fund.
Thus, the term “self-supporting debt.”

 General debt service fund balances will be used as needed to supplement debt payments and
issuance costs. Debt capacity will be calculated annually to ensure adequate revenues for debt
payments for both existing issues as well as prospective issues.

 Alternative sources of funding, including grants, will be sought as available and when beneficial in
lieu of or in conjunction with other funding sources for capital projects.

CIP Impact on the Operating Budget

During the development of the CIP City staff works to identify and plan for impacts to the operating
budget from changes in infrastructure and major equipment purchases approved in the Adopted CIP.
The following information describes the impact that projects included in the 2018/2019 CIP, and
related debt service, are expected to have on the operating budget.

Street & Sidewalk Projects

 The Preventive Street Maintenance Project and Preventive Street Maintenance Multi-Year
projects provide for crack sealing, slurry sealing, and asphalt or concrete overlay of selected
streets throughout the City. This annual program improves street conditions, reduces typical
roadway maintenance costs, and delays more costly street reconstruction. The 2018/2019 budget
allocates $1,000,000 for funding for slurry seal for 15-25 streets, crack seal for 15-25 streets, and
asphalt overlay for 12-15 streets. An additional $1,575,000 was included in the 2018/2019 budget
to be spent in increments of $315,000 over five years to increase spending towards preventive
street maintenance.

 In 2018/2019, the City will complete rehabilitation and replacement of approximately 50,000
square feet of city sidewalks. These sidewalks have been determined to be in a deteriorated state
in residential and high pedestrian areas. This program improves the sidewalk conditions, reduces
maintenance cost and delays the need for costlier reconstruction.

 In 2018/2019, the City will be undergoing a detailed street condition assessment to identify current
street conditions and provide ratings that will help staff develop a 5 year to 10 year program
identifying the areas where funds will have the greatest impact. These programs will help the City
extend the life of streets delaying more costly reconstruction.

Drainage Projects

 Street Drainage Improvements will be performed in multiple locations in the City during 2018/2019
to help restore positive drainage at some of the 194 locations identified in the City. This project
will help to remove standing water problems, which contribute to the premature deterioration of
asphalt on City streets.

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