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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
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
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)
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
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)