Oakdale's Capital Improvement Program (CIP) reflects an assessment of the community's needs and provides the necessary framework to properly plan for the preservation and expansion of infrastructure, facilities and equipment. The preparation of a long-range plan requires City staff to make material estimates about project scope, costs of labor and materials, and other items. Generally, the estimates for earlier years are more precise than later years. Actual results can differ significantly from such estimates.
For both the CIP and the operating budget, it is the responsibility of City staff to gather information and develop a recommendation for the City Council to consider. Council’s role is to guide City staff through the process and to formally adopt a CIP near the end of each fiscal year.
Although the CIP isn't statutorily required to be approved at the same time as the preliminary tax levy, discussion and direction regarding funds relying entirely, or partially on the tax levy should coincide with the General Fund. Based on the projects and anticipated funding sources contained in the 2022-2026 CIP, staff has incorporated projected tax levies for Future Building, Street Improvement, Street Improvement, Park Development, and Vehicle & Equipment Replacement Funds for 2023.
Street Improvement Fund
The Street Improvement Fund provides for a consolidated source of funding for City street improvements. Street improvements under this activity include new street construction, street resurfacing (overlay), pavement preservation (micro surface and seal coating) and traffic signal improvements. This is an area of high importance and significant investment for the City as we seek to proactively maintain the overall pavement condition of our streets.
Vehicle and Equipment Replacement Fund
The Vehicle and Equipment Replacement Fund (VERF) was created in 2021 to provide a funding mechanism for the systematic replacement of vehicles in the City’s fleet. The goal of the fund is to have sufficient cash flow to fund annual equipment purchases without the need to borrow through equipment certificates, and to stabilize budgeting for major equipment purchases
Municipal Building Fund
The Municipal Building Fund provides a financing mechanism for the systematic improvement of municipal buildings and facilities. The goal of the fund is to have sufficient cash flow to fund annual purchases and to stabilize budgeting for these building improvement expenditures.
Park Improvement Fund
The Parks Development Fund is used for ongoing improvements and development of new parks. This includes playgrounds, open space, walking paths, athletic fields, and tennis courts. Development of the city’s park system is outlined within the city’s Parks Master Plan (anticipated completion - 2023).
2023 Budget Highlights - Tax Levies to Support Capital Projects
- All requested tax levies are consistent with 2022-2026 CIP with the exception of the Vehicle Equipment Replacement Fund (VERF)
- The VERF is increasing by $368,436 as result of reallocating the expiring 2017B equipment certificates ($224,910) and an additional 1% levy increase due to cost increases and additional vehicles ($143,436). The tax levy is projected to increase by $15,000 per year to support the equipment outlined in the most updated plan.
- Although the 2023-2027 CIP and specific projects for 2023 haven't been approved by Council, funding for the CIP is long term in nature, and levy modifications may be considered over several years.