1. CAPITAL IMPROVEMENTS PLANNING FN 401 MPI Patrick Callahan, Municipal Consultant July 21, 2014 1:00PM

2. CAPITAL IMPROVEMENTS PLANNING (CIP) CIP Definition - Written Document  Long range plan (4-6 years)  Planning, scheduling, & financing  Construction projects & equipment  Key- Costs & Frequency

3. CIP - “THE MISSING LINK”  COMPREHENSIVE PLAN  CAPITAL IMPROVEMENTS PLAN  CITY’S ANNUAL BUDGET

4. PARTS OF PLANNING PROCESS COMP PLAN SMART PLAN STAFFCOUNCILCITIZENS GOAL SETTING/CIP ANNUAL BUDGET

5. CIP - THE TOP TEN LIST 1. Systematic Evaluation of all Potential Projects - At Same Time 2. Stabilize Debt Structure 3. Consolidate Projects - Reduce Borrowing Costs

6. CIP - THE TOP TEN LIST 4. Public Relations 5. Preserve the City’s Infrastructure 6. Economic Development Tool - City has “It’s Act Together”

7. CIP TOP TEN LIST continued 7. Efficient Use of City Money 8. Foster Cooperation - Everyone has the “Big Picture” 9. Inform Other Governments - County, Schools, Cities 10. Accomplish Long Term Goals

8. GETTING CIP “BUY IN” Mayor/Council/City Administrator/Department Heads 1. Seek Project Suggestions 2. Ranking of Projects 3. Annual Reviews 4. Regular CIP Updates 5. Public Input

9. LEGAL ASPECTS OF CIP 1. Public Hearing – Code of Iowa 384.15(3) 2. CIP Levy – 67.5 cents/$1,000 - Voters 3. Bid Letting – Code of Iowa 384.95

10. CONSTITUTIONAL DEBT LIMIT  Check State Law – 5% of Assessed Value  Applies to G.O., TIF, LOST Bonds  Not Apply to Revenue Bonds, RUT Bonds, or Special Assessment Bonds

11. CIP PROCESS - Overview 1. Define the Criteria 2. Organize the Process 3. Develop Basic Policies

12. CIP PROCESS (continued) 4. Forecast the Demand or Growth 5. Inventory Existing Facilities 6. Prepare Project Proposals

13. CIP PROCESS (continued) 7. Seek Advice 8. Review City’s Finances 9. Prepare Scenarios - Schedules

14. CIP PROCESS (continued) 10. Prepare CIP Draft 11. Public Hearing 12. Final Draft - Council Resolution

15. Organizing the Process for Capital Improvements Plan (CIP) 1. Council Committee of the Whole 2. Special CIP Committee 3. Designating the Coordinator or “Quarterback”

16. Organizing the Process for Capital Improvements Plan (CIP) (continued) 4. Establishing a time table 5. Identifying expert assistance – department heads, engineers, financial consultant, contractors, vendors, city employees, etc. 6. Develop Project Profile Form

17. Defining a Capital Project 1. Consider the frequency of occurrence 2. Determine minimum cost threshold 3. Consider the life expectancy of the project or equipment

18. Develop the City’s Basic Polices on Infrastructure and Level of Service 1. Streets – surface, width, base, curb and gutter 2. Water Mains – size, type, depth, pressure, etc.. 3. Storm Sewers – size, intakes, type, and locations

19. Develop the City’s Basic Polices on Infrastructure and Level of Service 4. Sanitary Sewers – location, size, type, and service lines 5. Parks – number, size, type, and service lines 6. Water – treatment and storage capacity

20. Develop the City’s Basic Polices on Infrastructure and Level of Service 7. Wastewater – DNR requirements, future needs and type of treatment 8. Police & Fire – vehicles and equipment

21. Forecast Demand for Services 1. Determine areas for growth 2. Identify areas that lack basic services

22. Review Existing Documents for Potential Projects 1. Comprehensive Plan 2. Wastewater Inspection Reports - IDNR 3. Water Inspection Reports - IDNR

23. Review Existing Documents for Potential Projects (continued) 4. Previous Engineering Studies 5. Department Heads “Wish Lists” 6. Annual Reports – City Departments

24. Conduct an Inventory of Existing Facilities and Equipment 1. City Hall/Library – roof, foundation, structure, size, & appearance 2. Public Works Garage – roof, foundation, location &appearance 3. Fire Station – roof, foundation, siding, appearance, & size

25. Conduct an Inventory of Existing Facilities and Equipment (continued) 4. Water Towers – age, size, paint, & interior condition 5. Wastewater Plant – age, capacity, condition, & cost of operation 6. Parks – condition of facilities, appearance, & safety of equipment

26. Conduct an Inventory of Existing Facilities and Equipment (continued) 7. Fire Equipment – age, use, & condition 8. Public Works Equipment – age, use, & condition

27. Prepare List of Potential Projects 1. Discuss the merits of each project 2. Review City’s financial capacity to pay 3. Determine the priority of projects

28. Prepare List of Potential Projects (continued) 4. Conduct Council tour of projects and buildings 5. Develop two lists – in CIP or postpone

29. CIP INFORMATION  TITLE  DESCRIPTION  JUSTIFICATION  LOCATION  DEPT. PRIORITY  REVENUE IMPACT  CAPITAL COSTS  COSTS - ANNUAL  FINANCING  RELATIONSHIP  STATUS  COUNCIL PRIORITY

30. Prepare Project Profiles or Project Summaries for Each Project 1. Title or name 2. Brief description 3. Justification for the project

31. Prepare Project Profiles or Project Summaries for Each Project (continued) 4. Cost estimate – construction, engineering, & legal 5. Possible completion date or timing 6. Priority or ranking by Departments and Council

32. Prepare Project Profiles or Project Summaries for Each Project (continued) 7. Map, site plan, or picture 8. Potential funding sources 9. Annual impact on revenues and expenditures

33. Review of Project Profiles 1. Department Head comments 2. Engineer comments 3. Financial Consultant review

34. Conduct an Initial Ranking of Projections 1. Assign a score – A, B, C, or D 2. Tabulate results and average score 3. Discuss the overall ranking

35. Review the City’s Financial Capacity to Complete the Projects 1. Identify potential revenues for CIP Projects Current or Existing Funds  Cash balances  Road use tax funds  Sewer or water revenues  Property taxes

36. Review the City’s Financial Capacity to Complete the Projects (continued) Grants and Loans  DNR programs  CBDG funds  USDA programs  Donations and bequests

37. Review the City’s Financial Capacity to Complete the Projects (continued) Municipal Debt Options  General obligation bonds  Revenue bonds  Special assessment bonds  Lease purchase agreements

38. Review the City’s Financial Capacity to Complete the Projects (continued) 2. Identify Other Financial Options  Local option sales tax  Storm water utility  Tax increment financing (TIF)

39. Review the City’s Financial Capacity to Complete the Projects (continued) 2. Identify Other Financial Options  Capital improvements levy  Increase general fund levy  Increase water and sewer user fees  Joint sharing agreements

40. Review the City’s Financial Capacity to Complete the Projects (continued) 3. Select best financial option for each project  Prepare department schedules  Identify financial impact on cash balances, user fees, and taxes

41. Conduct a Second Ranking of Projects - Optional 1. Assign a score – A, B, C, or D 2. Tabulate the results 3. Discuss the overall ranking 4. Reach a consensus!

42. Public Comments 1. Publish notice on CIP 2. Copies of CIP on file at City Hall 3. Conduct public hearing

43. Adoption of the CIP and Inclusion in Annual Budget 1. Adopt by Resolution 2. Conduct quarterly review 3. Include “Year 1” in Annual Budget

44. Adoption of the CIP and Inclusion in Annual Budget (continued) 4. Conduct an annual review 5. Continue to refine the process

45. Future Citizen Input on CIP Process 1. Copies of CIP available for public 2. Presentation to Service Clubs 3. Annual Town Meetings

46. Future Citizen Input on CIP Process 4. “Open House” of City Facilities 5. City Newsletter

47. ADDITIONAL INFORMATION 1. Municipal Debt Financing 2. G.O. vs. Revenue Debt 3. G.O. vs. TIF Debt -Disclaimer- Consult the City’s Bonding Attorney

48. BEST PRACTICES FINAL COMMENTS 1. Annual Reviews 2. Quarterly Updates 3. How to Get Started 4. Questions 5. Comments

49. Contact Information Patrick Callahan Callahan Municipal Consultants 417 Kaitlynn Ave Anamosa, IA 52205 callahan.cmc@gmail.com www.callahanmuicipalconsultants.com Cell: (563) 599-3708