CAPITAL IMPROVEMENTS PLANNING
FN 401 MPI
Patrick Callahan,
Municipal Consultant
July 21, 2014
1:00PM
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 MISSING LINK”
 COMPREHENSIVE
 CAPITAL
PLAN
IMPROVEMENTS PLAN
 CITY’S
ANNUAL BUDGET
PARTS OF PLANNING PROCESS
COMP PLAN
COUNCIL
SMART PLAN
STAFF
GOAL SETTING/CIP
ANNUAL BUDGET
CITIZENS
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
CIP - THE TOP TEN LIST
4. Public Relations
5. Preserve the City’s Infrastructure
6. Economic Development Tool City has “It’s Act Together”
CIP TOP TEN LIST continued
7.
8.
Efficient Use of City Money
Foster Cooperation - Everyone
has the “Big Picture”
9. Inform Other Governments County, Schools, Cities
10. 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 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
CONSTITUTIONAL DEBT LIMIT
 Check
State Law – 5% of Assessed Value
 Applies
 Not
to G.O., TIF, LOST Bonds
Apply to Revenue Bonds, RUT Bonds,
or Special Assessment Bonds
CIP PROCESS - Overview
1. Define the Criteria
2. Organize the Process
3. Develop Basic Policies
CIP PROCESS (continued)
4. Forecast the Demand or Growth
5. Inventory Existing Facilities
6. Prepare Project Proposals
CIP PROCESS (continued)
7.
8.
9.
Seek Advice
Review City’s Finances
Prepare Scenarios - Schedules
CIP PROCESS (continued)
10. Prepare CIP Draft
11. Public Hearing
12. Final Draft - Council Resolution
Organizing the Process for Capital
Improvements Plan (CIP)
1. Council Committee of the Whole
2. Special CIP Committee
3. Designating the Coordinator or
“Quarterback”
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
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 growth
2. Identify areas that lack basic
services
Review Existing Documents for
Potential Projects
1. Comprehensive Plan
2. Wastewater Inspection
Reports - IDNR
3. Water Inspection Reports - IDNR
Review Existing Documents for
Potential Projects (continued)
4. Previous Engineering Studies
5. 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 buildings
5. 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 name
2. 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 picture
8. Potential funding sources
9. Annual impact on revenues and
expenditures
Review of Project Profiles
1. Department Head comments
2. Engineer comments
3. Financial Consultant review
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
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 D
2. Tabulate the results
3. Discuss the overall ranking
4. Reach a consensus!
Public Comments
1. Publish notice on CIP
2. Copies of CIP on file at City Hall
3. Conduct public hearing
Adoption of the CIP and Inclusion in
Annual Budget
1. Adopt by Resolution
2. Conduct quarterly review
3. Include “Year 1” in Annual Budget
Adoption of the CIP and Inclusion in
Annual Budget (continued)
4. Conduct an annual review
5. Continue to refine the process
Future Citizen Input on CIP Process
1. Copies of CIP available for public
2. Presentation to Service Clubs
3. Annual Town Meetings
Future Citizen Input on CIP Process
4. “Open House” of City Facilities
5. City Newsletter
ADDITIONAL INFORMATION
1.
2.
3.
Municipal Debt Financing
G.O. vs. Revenue Debt
G.O. vs. TIF Debt
-DisclaimerConsult the City’s Bonding Attorney
BEST PRACTICES FINAL COMMENTS
1.
2.
3.
4.
5.
Annual Reviews
Quarterly Updates
How to Get Started
Questions
Comments
Contact Information
Patrick Callahan
Callahan Municipal Consultants
417 Kaitlynn Ave
Anamosa, IA 52205
callahan.cmc@gmail.com
www.callahanmuicipalconsultants.com
Cell: (563) 599-3708