Capital Improvement Programming Local Government Academy June 5, 2008 Marcia Taylor Mt. 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’s Capital 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

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?