Secondary and Cumulative Impacts Master Management Plan - 2014

introduction FY2014

CAPITAL INVESTMENT PROGRAM

Plan for irregular capital expenditures

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ADVANTAGES  Build public consensus for projects and improves community awareness  Improves Inter-/Intragovernmental cooperation and communication  Avoids waste of resources  Helps ensure financial stability

5 - Y E A R C A P I T A L I N V E S T M E N T P R O G R A M

OVERVIEW Annually, local governments assess financial capacity to plan for capital investment projects. These large financial investments are required to maintain and expand public facilities and public infrastructure. Ongoing service delivery can be assured only if adequate consideration is given to capital needs by the budget process. A Capital Investments Program is a tool used by governments in conjunction with the 5-Year Long Range Financial Model (5YrLRFM) to ensure that decisions on capital projects and funding are made wisely and are well planned. The Town’s Five Year Capital Investment Plan (5YrCIP) is a multi-year planning period for capital projects, currently for the 2014-2018 timeframe. The program outlines project details including estimated timeframes, cost, and funding sources and discusses impacts to future operational budgets. A Capital Investments Program should not be confused with a Capital Investment Budget. A Capital Investment Budget represents the first year defined by the Capital Investment Program that appropriates funds for capital spending. Morrisville’s Annual Capital Budget is reported, and adopted in conjunction with the Annual Operating Budget. Capital Investment planning is a dynamic process; changes do and should occur in the process from year to year to adapt to changing elements. The plan is updated and re-adopted every two years to fine-tune cost, adjust availability of resources, and plan projects within the projected financial capacity. PURPOSE The 5YrCIP serves a number of important functions for local government. Capital project planning should plan for projects that maintain or improve the Town’s fixed assets. The Town is primarily responsible for the public service in those assets. In addition, capital project planning should:  Prevent deterioration of the Town’s existing public infrastructure  Encourage and sustain economic development within the Town  Increase efficiency and productivity of Town operations  Enhance Decision Making  Support Town Goals and Initiatives

DIFFERENTIATING CAPITAL FROM OPERATING BUDGET

Capital projects typically are large, non-recurring expenditures that would distort the annual operating budget if appropriated. Typical criteria utilized to determine types of expenditures are cost and useful life. Cost is a value limit placed on the expense. Useful life is defined as projects having a long service life and non- recurring nature. Annual items such as salaries, office supplies, routine maintenance, and service contracts are typical of operating expense and therefore are not appropriate for capital expenses. The difference between departmental capital outlay items in annual operating budget and capital project items in CIP: 1. Departmental capital outlay items shall not be submitted as part of CIP. Departmental capital outlay items include equipment/tools, furniture, office equipment, minor remodeling, or construction below $100,000. 2. All fire apparatus equipment items are funded through a Capital Reserve Fund and are therefore not associated with the 5YrCIP. 1. Construction and/or acquisition of public asset is greater than $100,000 2. Project requires debt funding 3. Provide for the acquisition or construction of land or any public facility, to include consultant or professional service related to the facility 4. Provide for the acquisition of equipment for any public facility when first constructed or acquired 5. Expenditures, including additions to existing public facilities, which increase the square footage or value of the facility To qualify as a capital project for the 5YrCIP the project should meet the following criteria:

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