CAPITAL IMPROVEMENTS PLANNING FN 401 MPI Patrick Callahan, Municipal Consultant July 21, :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 PLAN  CAPITAL IMPROVEMENTS PLAN  CITY’S ANNUAL BUDGET

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

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. 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

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 (3) 2. CIP Levy – 67.5 cents/$1,000 - Voters 3. Bid Letting – Code of Iowa

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 - 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. Seek Advice 8. Review City’s Finances 9. 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. Municipal Debt Financing 2. G.O. vs. Revenue Debt 3. G.O. vs. TIF Debt -Disclaimer- Consult the City’s Bonding Attorney

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

Contact Information Patrick Callahan Callahan Municipal Consultants 417 Kaitlynn Ave Anamosa, IA Cell: (563)