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2018 CIP Update
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EXPLANATION AND SUMMARY:
Every year in a fall work session, Council and staff review planned capital expenditures or the Town's Capital Improvement Plan (CIP). Every other year this CIP is the basis for a bond or debt issuance to finance capital projects identified in the plan. During FY18 the Town has been presented with several opportunities for capital projects outside the regular fall and two-year bonding cycles. As such, the attached updated plan is attached for Council consideration.
The objective of the plan revisions is to present Council with options that include investing in three new projects:
1. A proposed public parking condominium on Mill Street NE at a cost of $4.6 million; potentially reduced to a Town expenditure of $2.3 million if the Town receives a grant from NVTA. The award is expected to be announced June 14, 2018.
2. A proposed purchase of a historic building for an estimated cost of $2 million for purchase and renovation. This is a high estimate. The low estimate to purchase and renovate is $1.3 million. This number will be finalized after a feasibility study is performed in June and July 2018. An alternative proposal is to buy the building for up to $1.0 million and not plan the improvements until a later year.
3. Purchase of a single-family residence on Beulah Road, approved by Council on May 21, 2018, to complete a contiguous Town property at the Town mulch yard at a cost of $712,000.
Three viable options are presented. All options include removal of the downtown library parking project and a shift of $4.55 million in projects from 2022 through 2026 out to 2026 and 2028. All options include the $712,000 purchase price for the Beulah Road property, and show that future borrowing will be defrayed by $1.0 million received in bond premium from the 2018 bonds.
Option 1 - No NVTA funding for Mill Street; Historical Building purchase, no improvements for a total net borrowing of $5.312 mil...
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