Capital Improvement
Program
Please see attached
downloadable PDF files at the end of
this page for the CIP Ledger and the District's Area Map.
There is also a Powerpoint Presentation.
WHAT IS A CAPITAL IMPROVEMENTS PROGRAM?
A capital improvements program is a blueprint for planning a district's capital expenditures and is one of the most important responsibilities of the district. It coordinates community planning, financial capacity and physical development.
A capital improvements program is composed of two parts -- a capital budget and a capital program. The capital budget is the upcoming year's spending plan for capital items (tangible assets or projects that cost at least $10,000 and have a useful life of at least five years). The capital program is a plan for capital expenditures that extends five years or more beyond the capital budget.
Development of a CIP that will ensure sound fiscal and capital planning requires effective leadership and the cooperation of all entities involved.
A
complete, properly developed CIP has the following benefits:
-
Facilitates coordination between capital needs and the operating budgets.
- Identifies the most economical means of financing capital projects.
- Increases opportunities for obtaining federal and state aid.
- Relates public facilities to other public and private development and
redevelopment
policies and plans.
- Focuses attention on community objectives and fiscal capacity.
- Keeps the public informed about future needs and projects.
- Coordinates the activities of neighboring and overlapping units of
local government
to reduce duplication.
- Encourages careful project planning and design to avoid
costly mistakes and help
a district reach desired goals.
Proposed
projects are ranked in priority
as objectively as possible.
DEVELOPING A CIP FINANCING PLAN
Based upon the adopted debt and CIP policies and the assessment of the district's financial capacity, the district should recommend the method of financing each project. There are a number of ways to finance capital improvement projects. Some of the most common long and short-term financing options are:
Long-Term
Financing:
1. General
obligation bonds and, for municipal light plant
improvements only,
revenue bonds.
2. State and federal loans and grants.
3. Setting aside money in the stabilization fund to pay
for all or a portion
of a capital project.
Short-Term
Financing and other
Service Provision options:
1.
Appropriation of current revenue or reserves such as free cash.
2. Short-term debt such as bond anticipation notes
and grant anticipation notes.
The CIP
also identifies:
- The
expected beginning and ending date of each project
- The amount to be expended in each year
- The method of financing those expenditures.
