FY 18 Annual Report

Capital Projects CITY OF SPENCER, IOWA

2018

Departmental Highlights

Budget Review The Capital Projects department contains three funds that account for the major capital projects of the City. These include the Capital Improvement Reserve, Capital Projects and Enterprise Capital Projects funds. The Capital Improvement Reserve acts like a holding account for excess funds restricted fro Capital Projects. The city's share of Local Option Sales Tax is deposited into this fund on a monthly basis and the fund also distributes the departmental share of the Sales Tax to the departmental reserve accounts. This fund is used to provide temporary funding for projects that the City will receive grants funds for on a reimbursement basis, it also provide funding for projects that have a portion of expenditures that will be assessed against the property and collected over a specified amount of time. In order to close out the project, this fund will loan the projects money and then get repaid upon the grant funding or special assessments being received. A detail listing of money owed to the Capital Improvement Reserve can be found in a couple of pages. The projects funded through the Capital Improvement Reserve for FY 18 include the update to the City's Comprehensive Plan, a new vehicle for the Planning Department, funding for the GIS software license that the city shares with Clay County and SMU, and contributions/advances to the Iowa Great Lakes Trail, Phase II, Pederson Park lights, new City Hall renovation, sidewalk assessment program, the Grand Avenue bridge monument repairs and the 18th Avenue West storm sewer projects. The Capital Projects fund accounts for all revenues and expenditures related to non-Enterprise departmental capital projects. Projects that would be expended under the Capital Projects fund would include Park, Street, Storm Sewer projects as well as those that are general in nature such as city hall or the sidewalk program. Funding for these projects can come forma variety of sources included Interfund transfers, state or federal grants, and debt proceeds. The Enterprise Capital Projects fund accounts for all revenues and expenditures related to enterprise departmental capital projects. These projects would include the sanitary seer system solid waste division, landfill, airport and wastewater treatment plant. Funding for these projects comes from bond proceeds, state or federal grants and user fees for the respective enterprise operations. No property tax dollars are used for the completion of enterprise department capital projects. Total expenditures for Capital Projects were $8,160,159.29 for FY 18, an increase of $188,972.68 (+2.37%) compared to FY 17. Capital project spending varies annually based on the number of projects, timing of payments, etc. The number of projects completed in FY 18 is comparable to FY 17. Expenditures within the Capital Project department are expended across three funds. The Capital Improvement Reserve, Capital Projects and Enterprise Capital Projects. The Capital Improvement Reserve saw an increase of expenditures of $242,893.97 (+17.03%) over FY 17. Projects funded through the Capital Improvement Reserve The Capital Projects fund saw an increase in expenditures of $3,1300,57.63 (+157.01%) over FY 17. This can be attributed to timing of project payments and the scope of the projects being completed in a given fiscal year. A listing of the projects either completed or under construction during FY 18 can be found later in this section. The Enterprise Capital Projects fund saw a decrease in expenditures of $3,183,978.92 (-69.95%) over FY 17. As with the Capital Projects fund, the timing of payments and the scope of the projects being completed in a given fiscal year affect the annual expenditures. A listing of the projects wither completed or under construction during FY 18 can be found later in this section. Overall the city expended 88.46% of the budget for capital projects.

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