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EXECUTIVE SUMMARY
2023 CAPITAL BUDGET AND 10-YEAR CAPITAL IMPROVEMENT PLAN (CIP)
Background
The following pages detail the Town’s 2023 Capital Budget and the Ten-Year Capital Improvement Plan (CIP).
The Town defines a capital asset as one that is acquired, purchased or constructed with a cost or fair market value greater than or equal to $5,000 and a useful life of more than one year. This may include equipment, furniture, fixtures, artwork, buildings, land and/or infrastructure. Capital spending may occur through each of the following funds and one project may be funded through multiple funds depending upon the project specifics:
• General Fund
• Parks and Recreation Fund
• Cultural Fund
• Recreation Fund
• Public Improvements Fund
• Capital Renewal and Replacement Fund
• Stormwater Utility Fund
• Fleet Fund
• Information Technology Fund
• Facilities Fund
The multi-fund structure is needed to account for various dedicated revenue streams and is also helpful in maintaining a broad focus across all community needs. It is especially important that the Stormwater operations be managed as an independent business as required by governmental accounting standards for enterprise funds.
The Excise Tax Fund and the Impact Fee Funds are also potential sources of funding for qualified capital spending. This would be accomplished with an interfund transfer to one of the above listed funds, where the expenditure will occur.
Within each of these funds, capital items are grouped into the following four categories:
• New capital
• Reinvestment in existing capital
• Facilities
• Machinery, equipment and software
The annual Capital Budget and ten-year CIP are created for different purposes. Town Council appropriates funds only for the next year’s proposed Capital Budget; the costs for these projects have been researched and the projects are supported by Town staff. The ten-year CIP represents projects that departments believe may be necessary in the next ten years, but are not completely researched, nor has any detailed engineering been completed.
Executive Summary
2023 CAPITAL BUDGET AND 10-YEAR CAPITAL IMPROVEMENT PLAN (CIP)
Detail for each project includes a project description, purpose of the project, budget, funding sources, impact on operating costs, impact on other departments and the Town strategic goals supported. Where appropriate, maps and/or pictures are included
Selection of Capital Projects
Projects in the 2023 Capital Budget have been selected through a scoring process by a crossdepartmental team. Departments submit standard Capital Budget Request forms for each of their proposed capital expenses. The form includes information for scoring each request such as a project description, mandates for the project, relevance to Town strategic goals, and future costs or cost savings. The team members score the projects in twelve categories including individual Town strategies. The projects are then sorted by average score and compared to revenue projections for each fund to include those capital projects for which there is available funding.
Following the scoring process, the cross-departmental team meets to review the outcome and concur with the results. Once available funding by fund is determined, requested projects that do not have funding are moved to the first year of the ten-year CIP. This allows for those projects to be included in the process again for the next budget year.
The process has been successful in that the overall results have been reasonable, emotional decisions have been mitigated and finite resources have been effectively allocated.
CAPITAL IMPROVEMENT PLAN SUMMARY - 2023 BUDGET
* Does not include contingency amts
