1. BUDGETING & ACCOUNTING FOR GRANTS AND CAPITAL PROJECTS 2013 Municipal Professionals’ Institute Patrick Callahan, Municipal Consultant

2. CAPITAL IMPROVEMENT PLANNING (CIP) CIP Definition - Written Document  Long range plan (4-6 years)  Planning, scheduling, & financing  Construction projects & equipment  Key- Costs & Frequency

3. CIP - “THE MISSING LINK”  COMPREHENSIVE PLAN  CAPITAL IMPROVEMENTS PLAN  CITY’S ANNUAL BUDGET

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

5. 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 4. Public Relations 5. Preserve the City’s Infrastructure

6. CIP TOP TEN LIST continued 6. Economic Development Tool - City has “It’s Act Together” 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

7. 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

8. 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 4. Emergency Levy - 27 cents/$1,000

9. CONSTITUTIONAL DEBT LIMIT  5% of Assessed Value - Not Taxable Value  Applies to G.O., TIF & LOST Bonds  Not Apply to Revenue Bonds, RUT Bonds, or Special Assessment Bonds

10. CIP PROCESS 1. Define the Criteria 2. Organize the Process 3. Develop Basic Policies 4. Forecast the Demand or Growth 5. Inventory Existing Facilities 6. Prepare Project Proposals

11. CIP PROCESS continued 7. Seek Advice 8. Review City’s Finances 9. Prepare Scenarios - Schedules 10. Prepare CIP Draft 11. Public Hearing 12. Final Draft - Council Resolution

12. CIP – First Year in the Next City Budget  Identify Expenditures and Revenues  Consider the tax levies  Review the special revenues

13. CIP INFORMATION  TITLE  DESCRIPTION  JUSTIFICATION  LOCATION  DEPT. PRIORITY  REVENUE IMPACT  CAPITAL COSTS  COSTS - ANNUAL  FINANCING  RELATIONSHIP  STATUS  COUNCIL PRIORITY

14. SOURCES OF FUNDING FOR CAPITAL PROJECTS Potential Revenue Sources 1. Municipal Debt Financing a. G.O. Bonds - Essential Purpose (No Vote) b. G.O. Bonds - General Purpose (60% Vote) c. Review Existing Debt 2. Revenue Bonds 3. Special Assessments 4. Loan Agreements

15. SOURCES OF FUNDING FOR CAPITAL PROJECTS Potential Revenue Sources 5. RUT Money 6. Grants and Donations 7. Lease Purchase Agreements 8. TIF/Urban Renewal Funds

16. SOURCES OF FUNDING FOR CAPITAL PROJECTS continued 9. LOST Revenue - Voter Approval 10. User Fees 11. Special Taxing Districts

17. 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

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

19. Contact Information Patrick Callahan Callahan Municipal Consultants 417 Kaitlynn Ave Anamosa, IA 52205 callahan.cmc@gmail.com Cell: (563) 599-3708