HomeMy WebLinkAboutResolution 2007-093 implementation of a capital improvement program
MARANA RESOLUTION NO. 2007-93
RELATING TO PUBLIC WORKS; APPROVING AND AUTHORIZING THE
IMPLEMENTATION OF A CAPITAL IMPROVEMENT PROGRAM MANUAL TO ASSIST
IN THE COORDINATION OF COMMUNITY PLANNING, FINANCIAL CAPACITY AND
PHYSICAL DEVELOPMENT OF THE TOWN OF MARANA.
WHEREAS the Mayor and Council through the Public Works Department of the Town
of Marana are responsible for the planning, financing and implementation of capital
improvement projects within the Town; and
WHEREAS development of a Capital Improvement Program Manual will insure sound
fiscal and capital planning through effective leadership and the involvement and cooperation of
all municipal departments; and
WHEREAS, the Mayor and Council of the Town of Marana feel it is in the best interests
of the public to adopt a Capital Improvement Program Manual.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE
TOWN OF MARANA, ARIZONA, that the Marana Public Works Department, Capital
Improvement Program Manual attached to and incorporated by this reference in this resolution as
Exhibit A is hereby adopted.
BE IT FURTHER RESOLVED that the Town's Manager and staff are hereby directed
and authorized to undertake all other and further tasks required to carry out the terms,
obligations, and objectives ofthe aforementioned manual.
PASSED AND ADOPTED BY THE MAYOR AND COUNCIL OF THE TOWN OF
MARAN A, ARIZONA, this 5th day of June, 2007. a~--.//
Mayor Ed Honea
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{00004897.DOC I}
CIH 5/25/07
Developing a Capital
Improvements Program
A Manual for the Town of Marana
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TABLE OF CONTENTS
INTRODUCTION .................................................................................................................................. 4
DIRECTIONS FOR IMPLEMENTING A CAPITAL IMPROVEMENTS PROGRAM..................... 7
Step One: ADOPT A CIP MANUAL BY RESOLUTION AND APPOINT A CIP WORKING
GROUP .............................................................................................................................................. 7
Step Two: DEVELOP AN INVENTORY OF EXISTING FACILITIES ...................................... 11
Step Three: DETERMINE THE STATUS OF PREVIOUSLY APPROVED PROJECTS ........... 12
Step Four: ASSESS THE TOWN'S FINANCIAL CAPACITy..................................................... 12
Step Five: SOLICIT, COMPILE AND EVALUATE PROJECT REQUESTS .............................. 13
Step Six: ESTABLISH PROJECT PRIORITy............................................................................... 14
Step Seven: DEVELOP A CIP FINANCING PLAN ..................................................................... 15
Step Eight: ADOPT A CAPITAL IMPROVEMENT PROGRAM................................................. 17
Step Nine: MONITOR APPROVED PROJECTS .......................................................................... 20
Step Ten: UPDATE CAPITAL PROGRAM ..................................................................................20
APPENDIX .......................................................................................................................................... 22
EXHIBIT I: RESOLUTION ADOPTING CIP MANUAL and CREATING A CAPITAL
IMPROVEMENT PLANNING WORKING GROUP .................................................................... 23
EXHIBIT II: CAPITAL IMPROVEMENT BUDGET POLICIES .................................................28
EXHIBIT III: DEBT POLICIES..... ............................................................... ......... ......................... 30
EXHIBIT IV: CAPITAL IMPROVEMENTS PROGRAM FORMS............................................. 32
FORM A: Town of Marana-CAPITAL FACILITIES & EQUIPMENT INVENTORy............ 32
FORM B: CAPITAL PROJECT REQUEST .............................................................................. 34
FORM C: CAPITAL PROJECT REQUEST FOR EQUIPMENT PURCHASE OR MAJOR
RENTAL ...................................................................................................................................... 42
FORM D: CAPITAL IMPROVEMENT PROGRAM DETAILED PROJECT DESCRIPTION47
FORM E: CAPITAL IMPROVEMENT RATING SHEET ........................................................49
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USING THIS MANUAL
This manual has been prepared by the Public Works Department to assist the Town of Marana in
carrying out its responsibilities in planning, financing and implementing capital improvements.
This manual has two parts. Part I describes the 10 steps needed to establish a capital improvements
program (or Crp). Part II contains the forms and other information necessary to implement a crp.
The guidelines provide a framework that will enable the Town to make planned and consistent
decisions about the construction and maintenance of municipal infrastructure.
INTRODUCTION
WHAT IS A CAPITAL IMPROVEMENTS PROGRAM?
A capital improvements program is a blueprint for planning the Town's capital expenditures and
is one ofthe most important responsibilities oflocal government officials. The crp coordinates
community planning, financial capacity and physical development.
A capital improvements program is composed of two parts --a capital budget and a capital
program. The capital budget is the upcoming year's spending plan for capital items (tangible assets
or projects that cost at least $100,000, represent significant public impact, and/or have a useful life
of at least five years). The capital program is a plan for capital expenditures that extends five years
beyond the capital budget.
Development of a crp that will insure sound fiscal and capital planning requires effective leadership
and the involvement and cooperation of all municipal departments. For that reason, this manual
places responsibility for overseeing the crp process with the Town Manager, the Town Council, and
a crp Working Group. The Working Group begins the crp process by forwarding its recommended
capital budget and program to the Council. The Council members review the proposal and make their
recommendations for changes or adoption.
A complete, properly developed crp has the following benefits:
1. Facilitates coordination between capital needs and the operating budgets.
2. Enhances the community's credit rating, control of its tax rate, and avoids sudden
changes in its debt service requirements.
3. Identifies the most economical means of financing capital projects.
4. Increases opportunities for obtaining federal and state aid.
5. Relates public facilities to other public and private development and redevelopment
policies and plans.
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6. Focuses attention on community objectives and fiscal capacity.
7. Keeps the public informed about future needs and projects.
8. Coordinates the activities of neighboring and overlapping units of local government to
reduce duplication.
9. Encourages careful project planning and design to avoid costly mistakes and help a
community reach desired goals.
10. Establishing ongoing Operations & Maintenance as part of the normal budget process.
DIRECTIONS FOR IMPLEMENTING A CAPITAL IMPROVEMENTS
PROGRAM
Step One: ADOPT A CIP MANUAL BY RESOLUTION AND APPOINT A CIP
WORKING GROUP
In order to establish a formal CIP process, the town should consider adopting a CIP Manual through
Resolution. The Appendix (Exhibit I) includes a sample resolution and a process which covers
appointment of the Working Group, the Working Group's duties, and its authority.
The Town Council should also adopt formal policies to guide the town's capital improvement
process and debt management. Sample policies are included in the Appendix (Exhibits II and
III).
While it is not necessary to adopt a CIP resolution and CIP policies to establish a sound CIP
process, such formal guidelines can provide valuable direction.
One of the first tasks of the CIP Working Group is to prepare a schedule for completing the CIP.
This schedule should be given to all local officials involved in the CIP process. The sample CIP
schedule on the following page outlines each of the 10 steps that this manual covers.
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Schedule
Council Meeting
Oct. 1 - Nov. 1
Nov. I - Dee. 1
Dee. 1 - Jan. 1
Jan. 1 - Feb. 1
Feb. 1 - Feb. 20
Feb. 20 - Apr. 15
Apr. 15
July I-Ongoing
Next fiscal year
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N
Step
umber
1
2
3
4
5
6
7
CIP Working Group Schedule
Step
Adopt CIP Manual by Resolution, which includes a CIP Working
Group.
CIP Working Group prepares inventory of current facilities.
CIP Working Group surveys status of previously approved
projects.
CIP Working Group prepares financial analysis.
Departments prepare and submit requests.
8
CIP Working Group reviews and ranks requests.
CIP Working Group prepares six-year schedule of projects and
makes decision on method of financing based upon financial
analysis and obtains Town Manager Approval to proceed.
CIP Working Group presents Capital Budget and Capital
Program to the Town Manager & Town Council.
. Town Council reviews the prioritized & ranked CIP.
. Working Group holds public hearing.
. Working Group prepares final CIP recommendations.
9
Finance reviews Capital Budget and prepares recommendation
for Manger & Council.
10
Projects scheduled for upcoming year are incorporated into
budget.
Town Council approval of upcoming year's capital budget and
review of capital plan followed by department head preparation
for acquisition and development activities on July 1.
12
13
Beginning of fiscal year; monitoring of new and ongoing
projects.
14
Update Capital Program.
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Step Two: DEVELOP AN INVENTORY OF EXISTING FACILITIES
The initial task for the CIP Working Group is to prepare a complete inventory of all town properties
and assets. The CIP Working Group would be a user ofthe 2 initiatives currently under way in the
Finance and GIS Departments. At a minimum, the inventory should include all buildings and
equipment; it is desirable for the inventory to include utilities, roads and sewers as well. Included in
the Appendix is a sample form (Exhibit IV, Form A) on which to collect inventory data from
department heads. The inventory shall also include documentation on the need for renewal,
replacement, expansion or retirement of all physical assets. For each asset include information on the
year the facility was built or acquired, the date oflast improvement, its condition, the extent of use,
and the scheduled date for rebuilding or expansion. Included in the Appendix is a sample form
(Exhibit IV, Form A) on which to collect inventory data from Department and division heads.
Please note that there is an on-going inventory valuation project through the Finance Department and
an Asset Management initiative through GIS. The data collected at this step may come through either
of those sources and should not be unique to the CIP. In other words no new data collection is
required.
Step Three: DETERMINE THE STA TUS OF PREVIOUSL Y APPROVED
PROJECTS
The next step is to identifY projects currently in development, design or construction, determine
whether additional funds are required, and determine the amount of unspent funds available from
completed and discontinued projects. The benefit of this update is that officials involved in the budget
process will be kept informed of the progress of projects approved in prior years. The results of this
analysis are presented in a written report to be included with presentation ofthe capital budget and
program by the Working Group. No special format is suggested for this report, but it should be
completed before department and division heads submit their requests for new projects (Step Five).
Step Four: ASSESS THE TOWN'S FINANCIAL CAPACITY
With the assistance ofthe Finance Director, the Working Group should analyze the town's ability to
afford major expenditures. This analysis should examine recent and anticipated trends in revenues,
expenditures, debt and unfunded liabilities such as pension costs. The analysis should be included
with the Working Group's presentation of the capital budget and program to the Manager & Council
Members (Step Eight). This financial analysis will permit the scheduling of funding sources to:
1. Keep the direct & indirect tax rates stable
2. Balance debt service and operating expenditures
3. Determine available debt capacity and acceptable debt service levels
4. Maximize intergovernmental aid for capital expenditures
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Step Five: SOLICIT, COMPILE AND EVALUA TE PROJECT REQUESTS
The CIP Working Group will solicit departmental recommendations for CIP projects. Using or
adapting the forms in the Appendix (Exhibit IV, Forms B and C), each department submits requests
that include a clear statement of the need and justification for the project, its costs, its net effect on
the operating budget, and an implementation schedule. The Working Group then evaluates each
request by reviewing the project information provided on Forms Band C and meeting with the
requesting department head or Council member, if necessary. In reviewing project requests, the
Working Group will consider the following questions:
1. Does the requested project contribute to the achievement of existing town goals, policies,
plans and work programs?
2. What are the general benefits of the project?
3. What is its total cost (both capital and annual operating expenses), and what is its effect on
direct & indirect tax rates?
4. Is the project acceptable to the public?
5. Are there legal requirements that must be met?
Based on its review, the Working Group should summarize its findings in preparation for
establishing project priorities.
Step Six: ESTABLISH PROJECT PRIORITY
In this step the proposed projects are ranked in priority as objectively as possible. The summary of
the findings from Step 5 will assist the Working Group in this effort. Additionally, the adoption by
the Town Council of Capital Improvement Budget Policies and Debt Policies (such as Exhibits II
and III in the Appendix) can provide helpful guidance.
In addition to adopted policies, a rating sheet also encourages objectivity. It can assist the Working
Group in the development of numerical ranking of projects and help in the setting of project
priorities. A sample rating sheet is included in the Appendix (Exhibit IV, Form E). It can provide
assistance in evaluating projects according to six criteria and translating subjective project
information and the Working Group's independent analysis into objective numerical weights. These
weights can guide the Working Group in establishing project priorities. The rating sheet can be
modified according to the Working Group's needs.
Whether or not a rating sheet is used, the CIP Working Group should review each project in relation
to other projects and determine their relative importance based on the set criteria. This will permit
the Working Group to establish project priorities based on both the community's goals and objective
analysis.
Step Seven: DEVELOP A CIP FINANCING PLAN
Based upon the adopted debt and CIP policies (Step One) and the assessment of the town's financial
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capacity (Step Four), the Working Group should recommend the method of financing each project.
There are a number of ways to finance capital improvement projects. Some of the most common
long and short-term financing options are:
Long-Term Financing:
1. General obligation bonds and revenue bonds.
2. State and federal loans and grants.
3. Setting aside money in the stabilization fund to pay for all or a portion of a capital project.
4. Debt exclusions - With voter approval allows a community to assess taxes in excess of its levy
limit or levy ceiling for the payment of debt service over the life of the issue.
5. Private Sector obligations and commitments.
Short-Term Financing and other Service Provision Options:
1. Appropriation of current revenue or reserves such as free cash.
2. Short-term debt such as bond anticipation notes and grants anticipation notes.
3. Capital outlay expenditure exclusions - with voter approval to assess taxes in excess of its levy
limit or levy ceiling for the payment of certain capital projects.
4. Contracting/leasing provisions authorized by ARS-NOTE: A community may enter into a multi-
year contract for any period of time that services the best interest of the governmental body,
however, payment and performance obligations for succeeding fiscal years shall be dependent on
the availability and appropriation of funds.
5. Private sector service provision is also available. Under this option private firms .provide public
services to a community on a contractual basis or through another arrangement such as a license
or lease-back agreement (for capital assets).
SteD Eiaht: ADOPT A CAPITAL IMPROVEMENT PROGRAM
The CIP Working Group's completed report should be presented through the Manager to the Town
Council for review and adoption. The report should include a summary of the CIP Working Group's
recommendations for the upcoming year's Capital Budget and the following years' Capital Program as
well as its analysis of the town's fiscal capacity (Step Four). Forms D and F (in Exhibit IV) can be
used to consolidate project information in the Working Group's report.
Form D, "Detailed Project Description," is prepared by the CIP Working Group to reflect its final
recommendation on each specific project. It presents all that is known about each project in a manner
that is conducive to discussion and decision. Form F is an example of how all project requests can be
consolidated into a single "Town Project Summary" for the entire town for submittal to the Town
Manager. It is this final document that is presented to the Council Members as the CIP Working
Group's recommended Capital Budget and Program covering the next six years. If the Council
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Members would like additional information about requested projects, they may review copies of each
department head's project request forms, Forms Band C.
The Town Council should hold its own public hearing to present the CIP and solicit further citizen
comment. If the Council holds its own hearing on the annual budget, the CIP hearing can be
incorporated into the regular budget hearing.
The Town Council then considers (and may amend) the proposed Capital Budget and Capital
Program and forwards them to the Finance Department. The Finance Department reviews and
recommends action only on the Capital Budget, but does so in considering the overall Capital
Program. The Finance Department recommendation to amend the Capital Budget suggests
disagreement with portions ofthe Capital Program and shall be resolved by the Town Manager.
The Council's Capital Budget may remain a separate agenda item or the Capital Budget may be
incorporated into the main budget agenda and submitted through the budget process.
However, noted in the proposed ordinance creating the CIP Working Group (see Appendix,
Exhibit I), no appropriation may be voted for a capital expenditure that has not been considered
in the CIP Working Group's report to the Council Members (unless the CIP Working Group
explains the omission in writing).
The entire Capital Improvements Program (Program and budget) is also presented at a formally
noticed Town Council Study Session. This will demonstrate to the community that the Capital
Budget is part of a long-range plan to upgrade and maintain the town's infrastructure.
The advantages of presenting the entire program and budget at a study session are:
1. The Mayor and Council are kept informed of the ongoing need for large capital expenditures
in many town departments.
2. The Mayor, Council and the public are provided an opportunity to look to the future and
consider the quality of services that will be provided.
The Council's adoption ofthe Capital Budget informs the balance ofthe community ofthe
commitment to plan for and fund the acquisition and/or development of capital facilities.
Step Nine: MONITOR APPROVED PROJECTS
Once the Mayor and council have adopted the Capital Budget and the fiscal year begins, departments
are authorized to begin project implementation. The Town Council, through its CIP Working Group,
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should monitor the efforts of the departments. Periodic reports by the CIP Working Group to the
Council Members should indicate changes in the targeted completion dates, identify serious
problems, and document the financial status of each project. Those reports may be based on project
updates provided by the responsible departments on a quarterly or other regular basis. These updates
should provide the information necessary to complete Step Three, determining the status of approved
projects.
Step Ten: UPDATE CAPITAL PROGRAM
Subsequent annual updating of the Capital Program involves repeating Steps 2 through 9 to reflect
new information, policies and proposed projects. The CIP Working Group should review and revise
the entire program as necessary to reflect its most recent determination of the need for equipment,
maintenance of equipment, the town's social and environmental conditions, the development or
revision of financial policies, and the community's financial resources. After the first year has been
budgeted, one year is added to the Capital Program and the remainder of the plan updated. This
completes the CIP process.
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APPENDIX
Exhibit I
Resolution and Creating a CIP Working Group
Exhibit II
Capital Improvements Budget Policies
Exhibit III
Debt Policies
Exhibit IV
Capital Improvements Program Forms
Form A Capital Facilities & Equipment Inventory Form B Capital Project Request Form C
Capital Project Request for Equipment Purchase or Major Rental Form D Detailed Project
Description Form E Capital Improvement Rating Sheet Form F Capital Improvements Program
Project Summary -- SAMPLE
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EXHIBIT I: RESOLUTION ADOPTING CIP MANUAL and CREA TING A
CAPITAL IMPROVEMENT PLANNING WORKING GROUP
RESOLUTION:
RELA TING TO PUBLIC WORKS; APPROVING AND AUTHORIZING THE
IMPLEMENT A TION OF A CAPITAL IMPROVEMENT PROGRAM MANUAL TO ASSIST IN
THE COORDINATION OF COMMUNITY PLANNING, FINANClj\L CAPACITY AND
PHYSICAL DEVELOPMENT OF THE TOWN OF MARANA.
WHEREAS the Mayor and Council through the Public Works rtmeIit of the Town of
Marana are responsible for the planning, financing and implementation ..of. capital improvement
projects within the Town; and
WHEREAS development of a Capital Improveme gram Manual will irts.~sound fiscal
and capital planning through effective leadership and th involvement and cooperation of all
municipal departments; and
WHEREAS, the Mayor and Council of the Town aran el it
the public to adopt a Capital Improvement Program Manual.
the best interests of
NOW, THEREFORE, BE IT RESOLVED HE MAYOR AND COUNCIL OF THE
TOWN OF MARANA, ARIZONA, that ..tl1~..... Maranal?.ublic Works Department, Capital
Improvement Program Manual attached to~djp.corporate this reference in this resolution as
Exhibit A is hereby adopted.
BE IT FURTHER RESO
authorized to undertake all other
objectives of the aforementioned man al.
that th~ Town.1~N1anager and staff are hereby directed and
ks required to carry out the terms, obligations, and
PASSED A
MARANA, ARIZON
OPTED BY<THE MAYOR AND COUNCIL OF THE TOWN OF
ay of June}(i2007.
Mayor Ed Honea
ATTEST:
Jocelyn C. Bronson, To Clerk
APPROVED ASTO RM:
Cedric Hay, Senior Assistant Town Attorney
CREATION OF CIP WORKING GROUP
Section 1. After the Town Council adopts the CIP Manual by Resolution, a working group to be
known as the CIP Working Group, should be established and appointed. It should be composed of
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one member of the Manager's Office, and the Director or designeel from each Operational and
Planning Department as follows: Deputy Town Manager, Assistant Town Manager, Assistant Public
Works Director Capital Improvement Projects, Public Works Contract Administrator, Airport
Operations Director, Parks & Recreation Director, Planning and Zoning Director, Public Works
Director, Operations and Maintenance Director, Utilities Director, Public Works Environmental
Engineering Division Manager, and Town Engineer. The Town Director of Finance and Town
Attorney shall be an ex-officio Working Group staff members without the right to vote. The Working
Group shall choose its own officers annually.
Section 2. The Working Group shall study proposed capital projects and improvements involving
major non-recurring tangible assets and projects that: 1) are purchased or undertaken at intervals of
not less than five years; 2) have a useful life of at least five years; and 3) cost over $100,000. All
officers, boards and Working Groups, including the Council Members, shall, give to the Working
Group, on forms prepared by it, information concerning all anticipated projects requiring Town
Council action during the ensuing six years. The Working Group shall consider the relative need,
impact, timing and cost of these expenditures and the effect each will have on the financial position
of the town. No appropriation shall be voted for a capital improvement requested by a department,
board or commission unless the proposed capital improvement is considered in the Working Group's
report2, or the Working Group shall first have submitted a report to the Town Council explaining the
omISSIOn.
Section 3. The Working Group shall prepare an annual report recommending a Capital
Improvement Budget for the next fiscal year, and a Capital Improvement Program including
recommended capital improvements for the following 5 fiscal years. The report shall be submitted
to the Town Manager & Town Council for its consideration and approval. The Working Group shall
present the Capital Budget at a formal study session and submit it for adoption by the town.
Section 4. The Capital Improvement Program, after its adoption, shall permit the expenditure on
projects included therein of sums from departmental budgets for surveys, architectural or
engineering advice, options or appraisals; but no such expenditure shall be incurred on projects that
have not been so approved by the town through the appropriation of sums in the current year or in
prior years, or for preliminary planning for projects to be undertaken more than 5 years in the
future.
Section 5. The Working Group's report and the Council's recommended Capital Budget shall be
published and made available in a manner consistent with the distribution of the appropriate Finance
Department report. The Working Group shall deposit its original report with the Town Clerk.
1The size and membership of the CIP Working Group/length of terms and the procedure for filling vacancies will be
determined during the first year of operations during process development.
2 This does not apply to citizen petitions.
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EXHIBIT II: CAPITAL IMPROVEMENT BUDGET POLICIES
Town of Marana
1. The town will make all capital improvements in accordance with an adopted capital
improvement program.
2. The town will develop a multi-year plan for capital improvements and update it annually.
3. The town will enact an annual capital budget based on the multi-year capital improvement
plan. Future capital expenditures necessitated by changes in population, changes in real estate
development or changes in economic base will be calculated and included in capital budget
projections.
4. The town will coordinate development ofthe capital improvement budget with development
of the operating budget. Future operating costs associated with new capital improvement will
be projected and included in operating budget forecasts.
5. The town will use intergovernmental assistance to finance only those capital improvements
that are consistent with the capital improvement plan and priorities, and whose operating and
maintenance costs have been included in operating budget forecasts.
6. The town will maintain all its assets at a level adequate to protect the town's capital
investment and to minimize future maintenance and replacement costs.
7. The town, as part of its capital planning process, will project its equipment replacement and
maintenance needs for the next several years and will update this projection each year. From
this projection, a maintenance and replacement schedule will be developed and followed.
8. The town will identify the estimated costs and potential funding sources for each capital
project proposal before it is submitted to the Town Council for approval.
9. The town will determine the least costly financing method for all new projects.
Source: "Handbook 4, Financial Performance Goals", Evaluating Local Government
Financial Condition, International City Management Association.
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EXHIBIT III: DEBT POLICIES
Town of Marana
1. The town will confine long-term borrowing to capital improvements or projects that cannot be
financed from current revenues.
2. When the town finances capital projects by issuing bonds, it will pay back the bonds within a
period not to exceed the expected useful life of the project.
3. Total debt service for general obligation debt will not exceed _ percent oftotal annual
locally generated operating revenue.
4. Total general-obligation debt will not exceed that provided in the state statues.
5. Where possible, the town will use special assessment, revenues or other self-supporting
bonds, instead of general obligation bonds.
6. The town will not use long-term debt for current operations.
7. The town will retire bond anticipation debt within six months after completion of the project.
8. The town will maintain good communications with bond rating agencies about its financial
condition. The town will follow a policy of full disclosure on every financial report and bond
prospectus.
Source: "Handbook 4, Financial Performance Goals", Evaluating Local Government
Financial Condition, International City Management Association.
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EXHIBIT IV: CAPITAL IMPROVEMENTS PROGRAM FORMS
Form A Capital Facilities & Equipment Inventory Form B Capital Project Request Form C Capital
Project Request for Equipment Purchase or Major Rental Form D Detailed Project Description Form
E Capital Improvement Rating Sheet Form F Capital Improvements Program Municipal Project
Summary -- SAMPLE
FORM A: Town of Marana-CAPITAL FACILITIES & EQUIPMENT INVENTORY
Equipment
or
Facility
Year Built
or Acquired
Latest Major
Improvement
Condition
Extent
of Use
Target Date
Rebuilding
Expansion
(1)
(2)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
o (1) Condition: Report as fair, good, and excellent.
o (2) Extent of Use: Report as light, moderate, and heavy.
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FORM B: CAPITAL PROJECT REQUEST
(Excluding equipment)
Department & Activity
Contact Person
1. Project Title
Date Prepared
Phone Number
2. Purpose of Project Request Form (Check One)
3. Department Priority
( ) Add a new item to the program
( ) Delete an item in a year already a part of the program
( ) Modify a project already in the adopted program
4. Location
5. Description
1 Justification & Useful Life
2 Cost & Recommended Sources of Financing
BUDGET FY TOTAL * RECOMMENDED SOURCES OF FINANCING
Program year FY
Program year FY
Program year FY
Program year FY
Program year FY
. Program year FY
TOTAL SIX YEARS
After Sixth Year
If adjusted for inflation, indicate adjustment percentage here: * Interest cost not included.
8. Net Effects on Operating Costs (:t) Direct Costs
Personnel: number & amount. Net Effect on Municipal Income (:t)
purchase of service
materials & supplies
equipment purchases
utilities
other
Subtotal
()
Indirect Operating Costs
fringe benefits
General admin. costs
other
Subtotal
Total Operating Cost
Debt Service (P & 1)
()
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Total Operating Cost
10. Submitting Authority Date
Submitted by Signature
Position
11.
Reserved
Source: "A Capital Improvement Programming Handbook", Government Finance Officers
Association.
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Instructions for: CAPITAL PROJECT REQUEST (Form B)
Form B requests the basic information required for each department project request. It should be
completed for each project whether it is for a new project, project modification, or cancellation of a
previously approved project.
1. Project Title: Insert title of proposed project.
2. Purpose of Project Request Form: Indicate whether the project is a new project, a
modification or cancellation.
3. Department Priority: Consider all projects being proposed by your department in the same
program year. Assign a weight of 100 to the top priority project for each year. Rate all other
projects proposed for the same year relative to the top priority project. For example, if projects
A (l00), B (95) and C (60) were proposed for a program year, the weight of"100" would be
placed in Item 3 for project A. Also, in parentheses include the notation (1 of3) to identify the
project as the top priority of three proposed projects.
4. Location: Designate the location or boundary limits of the proposed project. If a site is required
but has not been selected, this should be indicated; or, if a site is tentative, provide as much
accuracy as possible. Ifnot applicable, enter "N/A".
5. Description: Explain the nature of the project and indicate whether the project is to replace
existing facilities, equipment or land, or is an addition involving an increase in service delivery.
Describe the expected relationships ofthis project to existing or planned facilities and
services, both public and private.
Summarize the probable impact ofthe project on the environment or the municipality, if
applicable. Please note that this segment must be expanded to add more weight and refer to
a sub-process that will be headed by the Environmental Division.
The description ofland acquisition and construction projects should include dimensions,
overall characteristics, unusual conditions, and any other pertinent information.
Include references to any supporting studies or other relevant background
information regarding this project.
Attach additional sheets as necessary.
6. Justification and Useful Life: Indicate the need for the project and what it is expected to
accomplish and its anticipated useful life. Describe its relationship to local, regional, state and
{00004928.DOC /}
Page 19 of27
OS/29/2007
federal policies and plans, as well as the requesting department's multi-year plans and program.
Explain the priority assigned to this project, and the selection ofthe time period proposed.
Include any other pertinent information and references to surveys or studies regarding the
justification for the project not mentioned in Item 5 above.
7. Cost and Recommended Sources of Financing: Insert the appropriate fiscal year for the
budget (1 st Year) and each program year (2nd through 6th). Then, indicate the proposed project
expenditures for each fiscal year in the six-year budget and program; and any expenditure
beyond the sixth year (after Sixth Year). If adjustments are made due to inflation, indicate the
rate used for this adjustment.
List any recommendations for sources of financing including independent, joint or non-local
financing sources. Such sources may include federal, state and regional authorities, the county,
adjacent municipalities, civic organizations and private business. Ifthe project's recommended
source of financing involves special conditions or requirements, they should be indicated.
8. Net Effects on Operating Costs: Indicate the effect ofthe project on the operating
expenditures for each category shown. Estimate the budgetary impact of each change, in
dollars, if possible, otherwise indicate the change with a:l: in the project's first year. Changes in
operating costs in subsequent years should also be noted if different from first-year changes.
For personnel, show the estimated increase or decrease in the number of employees, and in
salary or wage expenses. For purchase of services, show costs related to services received from
suppliers, such as contract labor. Identify any entries for "other". Debt service costs may be
computed later by the CIP Working Group as an annual debt service cost (principal and
interest) over the project's life.
9. Net Effects on Municipal Income: Indicate the effect of the project on municipal income in
each category shown in terms of an increase or decrease (:I:) over the first year ofthe project's
life. If possible, estimate the amount of change in income in subsequent years if substantially
different from the first year. Income changes might be due to removal of property from tax
rolls; a change in its assessed valuation; a change in fees or rents collected; or other causes.
10. Submitting Authority: The department head or other official representative should review,
sign and date each Form B.
11. Reserved: This space is reserved for any notes or comments made by the CIP Working Group.
Source: Adapted from a form presented in "A Capital Improvement Programming Handbook",
Government Finance Officers Association.
{00004928.DOC I}
Page 20 of 27
OS/29/2007
FORM c: CAPITAL PROJECT REQUEST FOR EQUIPMENT PURCHASE OR
MAJOR RENTAL
Deparhnent & Activity Contact Person
Date Prepared:
Phone Number:
1. Project Title & Reference No.
2. Form of Acquisition (check appropriate)
Purchase Rental
3. Number of Units Requested
4. Cost
5. Purpose of Expenditure (check appropriate)
() Schedule replacement
( ) Present Equipment obsolete
( ) Replace worn-out equipment
( ) Reduce personnel time
() Expanded service
( ) New operation
( ) Increased safety.
( ) Improve procedures, records, etc. week
6. Replaced item(s)
Item Make
A.
B.
e.
D.
E. Per Unit
Purchase price
or annual rental $
Plus: Installation
or other
costs
Less: Trade-in or
Total
$
$
$
{00004928.DOC /}
Page 21 of27
OS/29/2007
other
discount
Net purchase Cost
or annual rental $
$
$
$
1 Number of Similar Items in Inventory
2 Estimated Use of Requested Item(s) Weeks per year Approx. months (if seasonal)
For the weeks used, estimate: Average days per
Average hours per day used estimated useful life in years
Prior Year's Age
Maint. Cost Breakdowns Rental Cost
1 Recommended Disposition of Replacement Item(s) Possible use by other agencies Trade-in
Sale
Submitting Authority Submitted by Date
( signature)
Position
2 Reserved
Source: Adapted from a form presented in "A Capital Improvement Programming
Handbook" I Government Finance Officers Association.
{00004928.00C I}
Page 22 of27
OS/29/2007
Instructions for: CAPITAL PROJECT REQUEST FOR
EQUIPMENT PURCHASE OR MAJOR RENTAL (Form C)
This form, which is presented as Form C, should be included ifthe capital project is an independent
equipment purchase or major rental.
1. Project Title: Insert title of proposed project.
2. Form of Acquisition: Check appropriate category.
3. Number of Units Requested: Indicate the total number of units to be rented or purchased.
4. Cost: Provide cost data requested.
5. Purpose of Expenditure: Check the appropriate reasons for this expenditure.
6. Number of Similar Items in Inventory: Indicate and list the number of similar equipment
items in the inventory of the requesting department.
7. Estimated Use of Requested Item(s): Indicate the number of weeks per year the item is
expected to be used and the approximate months of the year, if seasonal, and estimate the
average usage (in days per week and in hours per day) for the specified period. Also show
estimated useful life of the item based on planned usage.
8. Replaced Items: Provide the information indicated for any municipally owned or rented
item(s) that will be replaced by the request item(s). Ifthere are no items replaced, enter N/A.
9. Recommended Disposition of Replaced Items: Self-explanatory.
10. Submitting Authority: The agency head or other official representative should review, sign
and date each form.
11. Reserved: This space is reserved for any notes or comments made by the CIP Working
Group.
Source: Adapted from a form presented in "A Capital Improvement Programming
Handbook", Government Finance Officers Association.
{00004928.DOC I}
Page 23 of27
OS/29/2007
FORM D: CAPITAL IMPROVEMENT PROGRAM DETAILED PROJECT
DESCRIPTION
(To be filled out by eIP Working Group to summarize Project Information) A.
IDENTIFICATION & CODING INFORMATION 1. Date
2. Project Name 3. Program 4. Department
B. EXPENDITURE SCHEDULE (000'5)
(8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) Cost Thru Estimate Total Year 1 Year 2 Year 3 Year 4 Year 5
Year 6 Beyond Elements $ Total FY FY 6 Years FY FY FY FY FY FY 6 Years Planning Design & 1. Supervision
2. Land Site Improvements 3. & Utilities
4. Construction Furniture & 5. Equipment
6. Total
C. FUNDING SCHEDULE (000'5) GO Bonds State Aid
D. DESCRIPTION & JUSTIFICATION
E. ANNUAL OPERATING BUDGET IMPACT (OOO's) F. MAP Reference Code:
Program Costs: Staff Other Facility
Costs: Maintenance Other
Debt Service
Total Costs Other Revenue or Cost Savings
Source: Adapted from a form prepared by the Government Finance Officers Association.
{00004928.DOC /}
Page 24 of27
OS/29/2007
FORM E: CAPITAL IMPROVEMENT RATING SHEET
Project Name:
Estimated Cost:
Major Considerations Score Ran2:e
A. Town Department Priority Classification
1 Mandatory 10
2 Maintenance 7
3 Improve Efficiency 5
4 New Service 2
B. Priority Ranking
1 Very high 10
2 High 7
3 Medium 5
4 Low 2
C. Project's Expected Useful Life (Three years or less score zero)
1 20 or more years 10
2 10 - 19 years 5
3 5 - 9 years 2
D. Effect on Operating & Maintenance Costs
1 Reduce Cost 10
2 Cost Unchanged 5
3 Increase Cost 2
E. Effect on Town's Revenue (tax base)
1 Increase Revenues 10
2 Revenues Unchanged 5
3 Decrease Revenues 2
F . Availability of StatelF ederal Grant Moneys (If no, score zero)
1. Yes 5
TOTAL SCORE
Adapted from "Developing a Capital Improvement Program" I Metropolitan Council of the
Twin Cities Area.
{00004928.DOC I}
Page 25 of27
OS/29/2007
Instructions for: CAPITAL IMPROVEMENT RATING SHEET (Form E)
This rating sheet has six major considerations that will be used for the purpose of
ranking projects on the town's CIP program.
Every project will receive a point score in each of the six major considerations. The
points will be totaled and used to establish a priority ranking on the CIP program.
A. Department Priority Classification The rater must determine the priority classification of
a project as detailed below:
1 Mandatory - Refers to the protection of life or maintenance of public health and
safety, or legally required3.
2 Maintenance - Refers to a continuation of public services, the conservation of
endangered resources, or the finishing of partially completed projects.
3 Improve Efficiency - Refers to the replacement of obsolete facilities or the
improvement of community facilities.
4 New Service - Refers to the expansion of the public facilities service area of the town,
or the provision of new public services.
B. Priority Ranking Enter policy area priority from cover sheet.
C. Project's Expected Useful Life Refer to Form B (Item 6) or Form C (Item 7).
D. Effect on Operating and Maintenance Costs
Refer to Form B (Item 8) or Form C (Item 4).
E. Effect on Town's Revenue Capital (Capital Project Requests Only)
Refer to Form B (Item 9).
F. Availability of State/Federal Grant Moneys
G. Availability of Private Sector Funding
Total Score Total the scores for A - F.
{00004928.DOC I}
Page 26 of27
OS/29/2007
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