Capital Improvement Programming

Local Government AcademyJune 5, 2008

Marcia TaylorMt. Lebanon

Capital Improvement Programming

Best Piece of Overall Advice:

Don’t stifle the creativity or wish lists

of your department heads!!!

What Is An Asset?

Defined as: Resources with present service capacity that the

government presently controls Resource:

Item that can be drawn on to provide services to the citizenry

Present service capacity: Existing capability to enable the government to

provide services, which in turn enables the government to fulfill its mission

What Is A Capital Item ? Capital assets

Used in operations Useful life extending beyond single reporting

period (usually one year) Examples

Infrastructure assets Long-lived capital assets Normally stationary in nature Normally preserved for significantly greater

number of years Examples

What Is A Capital Item ?

Intangible assets Lack of physical substance Non-financial in nature Examples

Features of Mt. Lebanon’sCapital Improvement Program

Introduction Table of contents Definition used in

determining inclusion Schedule Financing Summarization General conditions and

assumptions

Justification for proposed projects

Progress on current projects

Cost summary Prioritization Project descriptions Inventory

Introduction

Brief High level data From chief administrative official (not

required) Highlights Challenges

Table Of Contents

Page references Each project listed Organized by department

Definition Used (1)

Inclusion tailored to community Key features

Completion period ? Frequency ? Dollar amount ?

Make sure have an “out” for projects that don’t meet definition

Schedule/Financing (1-2)

Timeline for reviews, hearing, adoption

Funding sources that could be used

Summarization (3-4)

Year by year By appropriate category

Year, type, department Percentage of whole

Gross and net costs (if both presented) Graphics

Graphics

Net Expenditures

-

500

1,000

1,500

2,000

2,500

2008 2009 2010 2011 2012

Year

Do

llars

(th

ou

san

ds)

Infrastructure Facility Improvements Equipment

Net Expenditures

-

500

1,000

1,500

2,000

2,500

Infrastructure Facility Improvements Equipment

Type of Exepnditure

Dol

lars

(tho

usan

ds)

2008 2009 2010 2011 2012

General Conditions and Assumptions (5)

WHAT is going to affect capital planning for 5 years into future

Most significant considerations Never all-inclusive

COULD include: Population (stratified) Housing Economic Budgetary constraints Inflation Outside revenues (grants) and changes

Justification For Proposed Projects (6-7)

WHY project is included Can focus future decision making Categories of need Single project can meet multiple needs

Progress On Current Projects (8)

Budget, actual to date, and year-end projection for current year projects

Can focus attention on areas: That are lagging Not able to be completed in allotted time May run over budget

Cost Summary (9)

By year, by project Displays category of project, page reference

for detail Ideal:

Gross Revenues or other funding Net (amount needed from tax dollars)

Prioritization (10)

Departmental priorities May not be honored

Project Descriptions (11-53)

Each project on separate page Year by year:

Costs detailed by broad categories of expenditure Funding (non-tax) detailed by source

Impact on operating budget Description

Narrative What, why, where, how many (much), etc. Advice – don’t write a book!

Inventory (54-73)

For information purposes – reference for reader Not full capital asset inventory May include:

Vehicles Equipment Traffic signals Buildings Land Easements Infrastructure

Other (74-75)

Detail of facilities in parks Tie into Comprehensive Plan

Maps

Relationship To Municipal Budget

Capital assets may appear: In operating departments or separate capital

budget In General Fund, Special Revenue Funds or

Capital Projects Fund Placement depends on municipal budget and

fund structure Should appear gross (full expenditure with

revenue offsets)

Budget Decision Points

What to include from CIP? What is policy if project not funded?

What fund will it appear in? Consistent criteria applied

Is there a prioritization? How do capital items interface with operating?