City Council Minutes 2015 10 26 - Laserfiche WebLink

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City Council Special Meeting Minutes October 26, 2015 Page 4 of 17 Public Works Director Kowar reviewed two charts, 1) Step 1 Outlining the Arterial/ Collector/ Industrial Deterioration Curve and 2) Step 1 Outlining the Residential Deterioration Curve. This allows the City to fix streets in bad condition (worst first) while also performing other preventative maintenance treatments to keep the good streets good (best first) This allows the City to more accurately model how long street segments will last, when is likely the optimum time to do various treatments (crack seal, patch, hot chip, etc ), and how much those treatments will likely cost He addressed water lines, which will be upgraded with street reconstruction Last year the City increased the water rates for water line replacement With and without the water lines, booster rates will increase by 11% This will be calculated during the water rate analysis. Staff will discuss this with the Water Committee next month and later on with the City Council The sewer rates do not appear to require any increase Summary. Public Works Director Kowar stated staff understands Council's desire and direction on the street paving programs Staff believes the annual payment and the extra payments over the next five years will get the streets at the desirable OCI rating The modeling of the streets will provide better projections for the required treatments On the City streets City Manager's Proposed 2016 Budget and 2016 —2020 Capital Improvements Plan City Manager Fleming reviewed the changes to the budget since it was presented in September Several new items were incorporated in to the 2016 Budget for a total of $643,000. $160,000 is new revenue from the lease agreement with Human Movement. Changes have already been incorporated into the budget including $643,000 and $3 3 Million over the 5-year CIP Plan Additionally, staff identified a potential $1 Million in cuts for 2016 and another$300,000 over the next five-year period. The major changes in the budget since the September presentation are as follows $425,000 was added to the Pavement Booster Program, $280,000 for Utility Work for a total of$700,000. Staff identified cuts and new revenue in the amount of$643,000. In comparison with the budget presented in September, the reserves will be drawn down by$61,000 In the year of 2017, $2 9 Million was added, mostly to the Utility Funds ($2 5 Million for utility work) In order to cover the expenses, cuts and new revenue will draw down the reserves, primarily from the Capital Projects Budget Instead of keeping the Capital Projects Fund reserves above a $2Million through 2017, it will gradually deplete the reserves in order to pay for the paving program Draw down the reserve - $64,000 Similarly, the Combined Utility Fund has been gradually drawn down to cover the loan. Increasing the projects will require increasing the rates by 11% in 2018. c More Paving Options. Shift $1 Million from the Capital Projects Fund forward to 2016 This would draw down the Capital Project Fund reserves to approximately $300,000- $400,000. The reserves would go up in 2017 when revenues will exceed expenditures. The General Fund Forecast, under the proposed budget, keeps the fund reserves