Estimating capital requirements, budgeting priority projects and developing revenue sources for proposed improvements.

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1 Capital Improvements A Capital Improvement Program is a schedule of public improvements to be constructed with resources available to finance the projected expenditures. Capital Improvements are expenditures for the purchase, construction, rehabilitation, replacement or expansion of the physical assets of the community when the project is relatively large in size, expensive, longterm and permanent. Some common examples include streets, libraries, tennis courts, fire stations, and water and sewer lines. The City s capitalization threshold is $5,000. Capital expenditures are financed from a variety of sources to include long and shortterm debt, current revenues, grants from other governmental entities and donations from foundations, businesses, individuals and nonprofit organizations. A detailed listing of financing methods is found on the following pages. Capital Improvement Funds Governmental Capital Improvements Fund Utility Capital Improvement Fund 2008 Wastewater Capital Improvement Fund Airport Capital Improvement Fund Vehicle Replacement Fund Appropriations Appropriations for capital improvements in Capital Improvement funds are considered multiyear in nature. Once appropriations in these funds are established, they roll forward to subsequent years until the project is completed. The City of Greenville currently has a General CIP Fund, a Utility CIP Fund and an Airport CIP Fund. Appropriations for capital improvements funded in the General Fund, the Water Utility Fund, the Central Services Fund, the Vehicle/Equipment Replacement Fund and the MIS Fund are for one year. If these funds are not expended or encumbered at the end of a fiscal year, these appropriations are not carried forward to subsequent years. Functions of the Capital Improvement Program Estimating capital requirements, budgeting priority projects and developing revenue sources for proposed improvements. Scheduling all capital projects over a fixed period with appropriate planning, implementation and informing the public of projected capital improvements. I1

2 Coordinating the activities of various departments in meeting project schedules. Monitoring and evaluating the progress of capital projects. Capital Improvements Policy The City of Greenville prioritizes the funding of capital improvement projects on the basis of a Capital Improvements Policy. The functions of the Capital Improvement Program are as follows: 1. The City will develop and annually update a Five (5) Year Capital Improvement Program (a list of all proposed capital Improvements that are to be undertaken during the ensuing five fiscal years) and an Annual Capital Projects Budget. 2. The City will schedule capital improvements in accordance with an adopted Capital Projects Budget. 3. Capital Project Budgets shall be developed and shall identify the impact of implementing said projects on future annual operating budgets. Estimates of future revenues necessary for these expenditures shall be identified prior to approval of such capital improvements. 4. Expenditures shall not be incurred nor shall contracts be awarded without the appropriation of available funds. 5. Each item submitted for the Capital Improvement Program shall include a summary of proposed project, cost estimates including future operating costs, recommended time schedule and potential funding source. 6. The life of a capital project fund shall correspond to the utilization of the resources in the fund and budgets shall span the amount of time necessary to utilize funding. 7. The estimated cost of capital replacement for enterprise funds such as water and sewer will be updated annually to ensure that rates and charges are covering the full cost of operating these programs. 8. The City shall utilize the most beneficial method of financing capital projects from the following sources: payasyougo, payasyouuse (bonds, shortterm notes, and lease purchasing), leasepurchase, joint financing with other government entities, special assessments and Federal and State grant programs. Methods of Financing Capital Improvement Projects With General Obligation Bonds, the taxing power of the jurisdiction is pledged to pay interest and retire the debt. General Obligation Bonds can be sold to finance permanent types of improvements such as municipal buildings, parks and recreation facilities. Voter approval is required. Certificates of Obligations are issued with limited revenues pledged by the water and sewer systems. Voter approval is not required. Donations are periodically received by the City from individuals, businesses, foundations and nonprofit organizations. I2

3 With Earmarked Funds, monies are accumulated in advance or set aside for capital construction or purchase. The accumulation may result from surplus of earmarked operational revenues, collection of impact fees or sale of capital assets. Enterprise Funds are established from the delivery of specific services where the money paid to administer the services and the expenses (as a result of providing services) are accounted for separately from the general fund budget of the City. General Fund is the financing of improvements from revenues such as general taxation, fees or service charges. Revenue Bonds are frequently sold for projects that produce revenues, such as water and sewer systems. Voter approval is not required. Special Assessments Public works that benefit particular properties may be financed more equitably by Special Assessments (i.e., paid by those who directly benefit). State and Federal GrantinAid programs are available for financing a number of programs. These may include streets, water and sewer facilities, airport, parks and playgrounds. The cost of funding these facilities may be borne completely by grant funds or a local share may be required. Impact of Capital Improvements on Operating Budget The capital improvements scheduled for FY are routine replacements of equipment. Since the purchases are replacements, there is no major impact on operating budgets. I3

4 City of Greenville Fiscal Year Budget Approved Capital Expenditures Vehicle Replacement Fund VR1001 Vehicle Replacement Project Account # $ 132,042 (3) 2010 Police Dodge Chargers & Equipment Vehicles are being funded using fund balance in the amount of $16754 and $115,288 from the 2006 Tax Anticipation Note Normal replacement program due to age of fleet and repair cost. Total Fund 603 Fleet Requests $ 132,042 Total $ 132,042 Patrol Vehicle Maintenance 7 Year History Actual FY 0304 Actual FY 0405 Actual FY 0506 Actual FY 0607 Actual FY 0708 Actual FY 0809 Proposed FY ,000 20,000 30,000 40,000 50,000 60,000 70,000 I4

5 City of Greenville, Texas Fiscal Year Budget Governmental Capital Improvements Fund Summary of Revenues, Expenditures and Changes in Fund Balance Description FY FY FY FY Unreserved, Undesignated $ 2,323,917 $ 1,980,677 $ 2,009,699 $ 1,890,701 Unreserved Designated Total $ 2,323,917 $ 1,980,677 $ 2,009,699 $ 1,890,701 Revenues Interest Revenue $ 70,251 $ $ 17,050 $ 19,000 Contributions 466,228 Sales & Income 52,709 Insurance Proceeds 16,200 Miscellaneous 325,287 TransfersIn 55, , ,500 56,000 Total Revenues $ 986,575 $ 138,500 $ 155,550 $ 75,000 Expenditures Acquisitions $ 2,250 $ $ 30,709 $ Professional Services 187, , ,907 Construction Activities 748,181 4,250 Equipment Purchases 67,131 21,732 Improvements 96,013 56,000 10, ,000 Miscellaneous 12,339 TransfersOut 187,859 Total Expenditures $ 1,300,793 $ 248,800 $ 274,548 $ 411,000 Unreserved, Undesignated $ 2,009,699 $ 1,870,377 $ 1,890,701 $ 1,554,701 Unreserved, Designated Total $ 2,009,699 $ 1,870,377 $ 1,890,701 $ 1,554,701 Ideal Fund Balance $ $ $ $ Over (Under) Ideal Fund Balance $ 2,009,699 $ 1,870,377 $ 1,890,701 $ 1,554,701 I5

6 Governmental CIP Fund 401 Total Revenues Total Expenditures $1,500,000 $1,250,000 $1,000,000 $750,000 $500,000 $250,000 $ FY FY FY FY $2,250,000 $2,000,000 $1,750,000 $1,500,000 $1,250,000 $1,000,000 $750,000 $500,000 $250,000 $ FY FY FY FY I6

7 City of Greenville, Texas Fiscal Year Budget Utility Capital Improvement Fund Summary of Revenues, Expenditures and Changes in Fund Balance Description FY FY FY FY Unreserved, Undesignated $ 12,439,877 $ 8,019,635 $ 8,360,348 $ 7,759,592 Unreserved Designated Total $ 12,439,877 $ 8,019,635 $ 8,360,348 $ 7,759,592 Revenues Interest Revenue $ 284,980 $ 190,000 $ 106,097 $ 108,200 Contributions Sales & Income Insurance Proceeds Miscellaneous (126,124) TransfersIn 1,824,500 Total Revenues $ 1,983,356 $ 190,000 $ 106,097 $ 108,200 Expenditures Acquisitions $ 18,550 $ $ $ Professional Services 97,063 1,190,644 8,656 25,000 Construction Activities 718,271 3,263 50,895 1,743,000 Equipment Purchases 406,349 31, ,500 65,000 Improvements 8,747 Miscellaneous 2,160 1,802 1,802 TransfersOut 4,811,745 Total Expenditures $ 6,062,885 $ 1,227,024 $ 706,853 $ 1,833,000 Unreserved, Undesignated $ 8,360,348 $ 6,982,611 $ 7,759,592 $ 6,034,792 Unreserved, Designated Total $ 8,360,348 $ 6,982,611 $ 7,759,592 $ 6,034,792 Ideal Fund Balance $ $ $ $ Over (Under) Ideal Fund Balance $ 8,360,348 $ 6,982,611 $ 7,759,592 $ 6,034,792 I7

8 Utility CIP Fund 503 Total Revenues Total Expenditures $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $ FY FY FY FY $15,000,000 $12,500,000 $10,000,000 $7,500,000 $5,000,000 $2,500,000 $ FY FY FY FY I8

9 City of Greenville, Texas Fiscal Year Budget 2008 Wastewater Plant Capital Improvement Fund Summary of Revenues, Expenditures and Changes in Fund Balance Description FY FY FY FY Unreserved, Undesignated $ 19,300,219 $ 18,834,741 $ 19,152,064 $ 19,224,126 Unreserved Designated Total $ 19,300,219 $ 18,834,741 $ 19,152,064 $ 19,224,126 Revenues Bond Proceeds $ $ $ $ Interest Revenue 15, , , ,000 Sales & Income Insurance Proceeds Miscellaneous TransfersIn Total Revenues $ 15,576 $ 400,000 $ 858,949 $ 610,000 Expenditures Acquisitions $ $ $ $ Professional Services 163, ,437 1,600,000 Construction Activities 11,450 7,705,000 Equipment Purchases Improvements Miscellaneous TransfersOut Total Expenditures $ 163,731 $ $ 786,887 $ 9,305,000 Unreserved, Undesignated $ 19,152,064 $ 19,234,741 $ 19,224,126 $ 10,529,126 Unreserved, Designated Total $ 19,152,064 $ 19,234,741 $ 19,224,126 $ 10,529,126 Ideal Fund Balance $ 32,746 $ $ $ Over (Under) Ideal Fund Balance $ 19,119,318 $ 19,234,741 $ 19,224,126 $ 10,529,126 1 Reflects decline in market value of securities. These securities will be held until maturity. I9

10 2008 Wastewater Plant Fund 503 Total Revenues Total Expenditures $10,000,000 $7,500,000 $5,000,000 $2,500,000 $ FY FY FY FY $20,000,000 $15,000,000 $10,000,000 $5,000,000 $ FY FY FY FY I10

11 City of Greenville, Texas Fiscal Year Budget Airport Capital Improvement Fund Summary of Revenues, Expenditures and Changes in Fund Balance Description FY FY FY FY Unreserved, Undesignated $ 343,714 $ 21,724 $ 196,507 $ 198,415 Unreserved Designated Total $ 343,714 $ 21,724 $ 196,507 $ 198,415 Revenues Grant Revenue $ 19,360 $ $ $ Interest Revenue 2,019 1, Total Revenues $ 21,379 $ $ 1,908 $ 840 Expenditures Acquisitions $ $ $ $ Professional Services 21,890 Construction Activities 4,984 Equipment Purchases Improvements 158,459 Miscellaneous TransfersOut 141,712 Total Expenditures $ 168,586 $ $ $ 158,459 Unreserved, Undesignated $ 196,507 $ 21,724 $ 198,415 $ 40,796 Unreserved, Designated Total $ 196,507 $ 21,724 $ 198,415 $ 40,796 Ideal Fund Balance $ $ $ $ Over (Under) Ideal Fund Balance $ 196,507 $ 21,724 $ 198,415 $ 40,796 I11

12 Airport CIP Fund 523 Total Revenues Total Expenditures $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $ FY FY FY FY $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $ FY FY FY FY I12

13 City of Greenville, Texas Fiscal Year Budget Vehicle Replacement Fund Summary of Revenues, Expenditures and Changes in Fund Balance Description FY FY FY FY Unreserved, Undesignated $ 1,015,427 $ 631,497 $ 523,374 $ 315,038 Unreserved Designated Total $ 1,015,427 $ 631,497 $ 523,374 $ 315,038 Revenues Interest Revenue $ 38,268 $ $ 5,384 $ 2,400 Insurance Reimbursement 11,861 Auction Proceeds 83,079 50,288 50,000 Miscellaneous TransfersIn 340,019 77, , ,980 Total Revenues $ 473,227 $ 77,055 $ 163,672 $ 212,380 Expenditures General Government $ $ $ $ Public Works Public Safety 258, , , ,042 Water 83,545 45,446 Information Technology Central Service 55,688 Wastewater 114,524 (22,313) Recreation Cemetery 21,376 (2,624) Fleet Maintenance 24,572 Planning Code Enforcement 15,169 1,261 Streets 152,514 30,912 Engineering Golf Course 15,000 Parks & Recreation (1602) 49,453 2,029 Cap.Lease Purchase Fire 225,000 65,500 Cap.Lease Purchase Parks 42,000 Cap.Lease Purchase Water Utility 52,480 TransfersOut 175,000 Total Expenditures $ 965,280 $ 391,486 $ 372,008 $ 292,022 Unreserved, Undesignated $ 523,374 $ 317,066 $ 315,038 $ 235,396 Unreserved, Designated Total $ 523,374 $ 317,066 $ 315,038 $ 235,396 Ideal Fund Balance $ $ $ $ Over (Under) Ideal Fund Balance $ 523,374 $ 317,066 $ 315,038 $ 235,396 I13

14 Vehicle Replacement Fund 603 Total Revenues Total Expenditures $1,000,000 $800,000 $600,000 $400,000 $200,000 $ FY FY FY FY $1,200,000 $900,000 $600,000 $300,000 $ FY FY FY FY I14

Estimating capital requirements, budgeting priority projects and developing revenue sources for proposed improvements.

Estimating capital requirements, budgeting priority projects and developing revenue sources for proposed improvements. Capital Improvements A Capital Improvement Program is a schedule of public improvements to be constructed with resources available to finance the projected expenditures. Capital Improvements are expenditures