CAPITAL IMPROVEMENTS PLANNING FN 401 MPI Patrick Callahan, Municipal Consultant July 21, 2014...
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Transcript of CAPITAL IMPROVEMENTS PLANNING FN 401 MPI Patrick Callahan, Municipal Consultant July 21, 2014...
CAPITAL IMPROVEMENTS PLANNING (CIP)CIP Definition - Written Document
Long range plan (4-6 years)
Planning, scheduling, & financing
Construction projects & equipment
Key- Costs & Frequency
CIP - THE TOP TEN LIST
1. Systematic Evaluation of all Potential
Projects - At Same Time2. Stabilize Debt Structure3. Consolidate Projects - Reduce Borrowing Costs
CIP - THE TOP TEN LIST
4. Public Relations5. Preserve the City’s
Infrastructure6. Economic Development Tool -
City has “It’s Act Together”
CIP TOP TEN LIST continued
7. Efficient Use of City Money8. Foster Cooperation - Everyone has the “Big Picture”9. Inform Other Governments -
County, Schools, Cities10. Accomplish Long Term Goals
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
LEGAL ASPECTS OF CIP1. 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
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
CIP PROCESS (continued)
4. Forecast the Demand or Growth5. Inventory Existing Facilities6. Prepare Project Proposals
Organizing the Process for Capital Improvements Plan (CIP)
1. Council Committee of the Whole2. Special CIP Committee3. Designating the Coordinator or
“Quarterback”
Organizing the Process for Capital Improvements Plan (CIP)(continued)
4. Establishing a time table5. Identifying expert assistance –
department heads, engineers, financial consultant, contractors, vendors, city employees, etc.
6. Develop Project Profile Form
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
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
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
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
Forecast Demand for Services
1. Determine areas for growth2. Identify areas that lack basic
services
Review Existing Documents for Potential Projects
1. Comprehensive Plan2. Wastewater Inspection Reports - IDNR3. Water Inspection Reports - IDNR
Review Existing Documents for Potential Projects (continued)
4. Previous Engineering Studies5. Department Heads “Wish Lists”6. Annual Reports – City
Departments
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
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
Conduct an Inventory of Existing Facilities and Equipment (continued)
7. Fire Equipment – age, use, & condition
8. Public Works Equipment – age, use, & condition
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
Prepare List of Potential Projects (continued)
4. Conduct Council tour of projects
and buildings5. Develop two lists – in CIP or postpone
CIP INFORMATION TITLE DESCRIPTION JUSTIFICATION LOCATION DEPT. PRIORITY REVENUE IMPACT
CAPITAL COSTS COSTS - ANNUAL FINANCING RELATIONSHIP STATUS COUNCIL PRIORITY
Prepare Project Profiles or Project Summaries for Each Project
1. Title or name2. Brief description 3. Justification for the project
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
Prepare Project Profiles or Project Summaries for Each Project (continued)
7. Map, site plan, or picture8. Potential funding sources9. Annual impact on revenues and
expenditures
Review of Project Profiles
1. Department Head comments2. Engineer comments3. Financial Consultant review
Conduct an Initial Ranking of Projections
1. Assign a score – A, B, C, or D2. Tabulate results and average
score3. Discuss the overall ranking
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
Review the City’s Financial Capacity to Complete the Projects (continued)
Grants and Loans DNR programs CBDG funds USDA programs Donations and bequests
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
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)
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
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
Conduct a Second Ranking of Projects - Optional
1. Assign a score – A, B, C, or D2. Tabulate the results3. Discuss the overall ranking4. Reach a consensus!
Public Comments
1. Publish notice on CIP2. Copies of CIP on file at City Hall3. Conduct public hearing
Adoption of the CIP and Inclusion in Annual Budget
1. Adopt by Resolution2. Conduct quarterly review3. Include “Year 1” in Annual Budget
Adoption of the CIP and Inclusion in Annual Budget (continued)
4. Conduct an annual review5. Continue to refine the process
Future Citizen Input on CIP Process
1. Copies of CIP available for public2. Presentation to Service Clubs3. Annual Town Meetings
ADDITIONAL INFORMATION
1. Municipal Debt Financing2. G.O. vs. Revenue Debt3. G.O. vs. TIF Debt
-Disclaimer- Consult the City’s Bonding Attorney
BEST PRACTICES FINAL COMMENTS1. Annual Reviews2. Quarterly Updates3. How to Get Started4. Questions5. Comments
Contact Information
Patrick CallahanCallahan Municipal Consultants 417 Kaitlynn AveAnamosa, IA 52205callahan.cmc@gmail.comwww.callahanmuicipalconsultants.comCell: (563) 599-3708