Capital Improvement Plan
Capital Improvement Plan 2021 through 2025
The requirement for capital budgeting for the following five fiscal years is found in the City of Black Jack Code Of Ordinance No. 920 Sec 2-55, Financial and Investment Policy for the city. The Capital Improvement Plan is incorporated into the annual budget and future budget forecasts. The Capital Improvement Plan is a five-year schedule of all proposed major capital improvement projects including project priorities, costs estimates, methods of financing, and annual estimated operating and maintenance costs for the proposed projects.Each year the Capital Improvement Plan is revised for next fiscal year.
Purpose for Including Budget
Including the Capital Improvement Plan in the annual budget, and future budget forecasts, is primarily for the purpose of adjusting the multi-year program of projects to changing needs and circumstances. It also ensures that projects proposed and planned for are actually completed.
At the end of each fiscal year, the projects completed during that year are removed from the plan and an additional year’s projects are added. The Capital Improvement Plan is designed to be amended on an annual basis. Projects can be added or subtracted as the needs and resources of the community adjust.
Fund Balance Forecast
It is also important that the adopted budget include a summary fund balance forecast for all funds of the community for the five year duration of the Capital Improvement Plan. An effective and ongoing Capital Improvement Plan is beneficial to elected officials, staff, and the general public.
Among the benefits that can be received from an adopted and well-maintained Capital Improvement Plan are:
- Coordination of the community’s physical planning with its fiscal planning capabilities
- Ensuring that public improvements are undertaken in the most desirable order of priority
- Producing savings in total project costs by promoting a “pay-as-you-go” policy of capital financing thereby reducing interest and other extra charges
- Providing adequate time for planning and engineering of proposed projects
- Ensuring the maximum benefit of the monies expended for public improvements
Capital improvement planning and budgeting allow officials and citizens to set priorities for capital expenditures and ensure maximum physical benefit for a minimum capital expenditure through an orderly process of project development, scheduling, and implementation.
Criteria for Potential ProjectsA wide range and variety of capital improvements are included in the Capital Improvement Plan. Listed below are several criteria to aid in the review of potential projects:
- Required to fill any federal or state judicial administrative requirements
- Relationship to source and availability of funds
- Impact on annual operating and maintenance costs
- Relationship to overall fiscal policy and capabilities
- Project’s readiness for implementation
- Relationship to overall community needs
- Relationship to other projects
- Distribution of projects throughout the community
- Relationship to other community plans