30 May 1996

   Memo To:       Mayor Owen and Members of Council

   Copies To:     Ken Dobell, City Manager
                  Maria Kinsella, City Clerk
                  Capital Plan Staff Review Group

   From:          Hugh Creighton, Director of Finance

   Subject:       1997-99 Capital Plan Review Process


   On May 14, 1996, Council approved the creation of a Staff Review Group
   to review the projects submitted for consideration in the 1997-99
   Capital Plan, and to bring back to Council a short list of recommended
   projects which would fit within the financial constraints approved for
   the Plan.  The Staff Review Group are presently reviewing the
   submissions, which total $388 million (see attached - on file in City
   Clerk's Office)(excluding waterworks) and will be reporting back to
   Council on July 23, 1996.

   In developing a recommended plan, the Staff Review Group will be guided
   by their evaluation of the detailed justifications submitted for
   projects, as well as their judgement of overall priorities.  In
   addition, they will be guided by past policy which Council has approved
   for the various capital programs.

   In the submissions which are presently being reviewed, there are
   proposals which go beyond historic funding levels and past Council
   policy, and this will be difficult for the Review Group to support, in
   the absence of Council direction.  To assist the Review Group in their
   Evaluation of these requested changes in program levels, Departments
   have been invited to report to Council on areas of program expansion. 
   Engineering Services is the first to do so, and a Report Reference will
   be made to Council on June 11, which reviews the total public works
   capital plan, highlighting areas of expansion and new initiatives.  The
   purpose of this presentation is to acquaint Council with the proposals
   and to benefit from discussion which Council may have on the proposals. 
   Council is not being asked to specifically act on these submissions, but
   rather, to indicate those areas of general concern and support.  The
   Staff Review Group will still have the challenge to develop a Plan
   within the financial constraints and thus are not seeking specific
   endorsement by Council on funding levels at this time.


   Hugh Creighton
   Director of Finance