1. September 13, 2018 Ten County Budget Conference
Financial Strategy for Capital Budgeting: How to Pay for the Facilities After The Plan!
September 13, 2018
Ten County Budget Conference

2. Capital Budgeting Basics
Be aware of all capital needs.
Consider capital maintenance as part of the capital budget.
Budget on a multi-year basis.
Know your potential revenue sources.
Don’t put items in the budget that you know you can’t fund.
Have a plan for the “parked” items.
Re-evaluate each budgeted project every year.
Stick to the plan.

3. You Have a Facilities Plan
You know how much things will cost.
There’s a schedule of implementation.
How does this plan fit the overall financial position of your County?
Holistically, does the plan preclude other capital needs?
Does the plan include ongoing capital maintenance?
A financially viable plan has to fit into the whole without removing flexibility from the organization and without creating new, ongoing costs that aren’t accounted for in the plan.

4. Financing Options Exist
Ordinary capital-restricted revenues.
New revenue sources.
General fund or other fund transfers.
Asset distribution/collateralization.
Internal service structures.
Debt.

5. Restricted Capital Revenues
Dedicated property or sales and use tax.
Facility charges.
Park facility usage.
Community center rentals.
Tolls.
Shared uses that split cost and/or revenue with another entity.

6. Assets Have some outlived their usefulness?
At the height of the market?
Using assets to collateralize: Certificates of Participation (COPs).
Debt-lite.
No vote required.
Annual payments.
Annual appropriation.

7. Internal Service Funds
Fleet and Technology Equipment
Regular replacement increases productivity and efficiency.
But should they be in a capital plan?
Interfere with the larger capital needs, or
Get pushed down the road in favor of larger issues.
Or are these really consumable/operational costs?
Annual appropriations from departments based on usage to an internal service fund.
All purchases are then made from the internal service fund and timed to coincide with the best usefulness to the County.
Funds are available when needed.

8. Debt is Not a Four-Letter Word
Construction costs can rise faster than interest rates.
Certificates of Participation can be incorporated into a capital plan if a long-term strategy is considered and completed.
Debt that requires voter approval – Revenue Bonds and General Obligations.
Communication is key.
Professional campaign assistance is advisable.

9. Financial Strategic Plans
Start with County plans – for facilities, parks, roads, development, etc.
Look long term.
Incorporate all County funds.
Incorporate all County assets.
Ensure that goals are met without harming the financial health and financial flexibility of the County.

10. Senior Municipal Advisor
Debra Hinsvark, CPA
Senior Municipal Advisor
(303)