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Capital BudgetingWhat it is. How it works.                            Morris County Office of Public Information          ...
Authority    Authority1    Definitions    Morris County’s Capital Program    Morris County’s Capital Planning Process
Authority                 Authority             1Authority to Spend for Capital Projects• In NJ, a capital budget does not...
DefinitionsUnderstanding Budget Terms• Capital Program• Capital Plan• Capital Budget• Capital Project• Facilities Committe...
DefinitionsA Capital Program• Provides a long term outlook.• Is a multi-year planning tool.• Is an evolving plan that is r...
Definitions       The Capital Plan       • NJ’s “Local Budget Law” requires each         county to adopt a capital plan ea...
DefinitionsThe Capital Budget• NJ’s “Local Budget Law” requires each  county to adopt a capital budget each year.• Every c...
DefinitionsCapital Projects• Individual capital projects make up the capital  budget.• Examples of capital projects includ...
DefinitionsFacilities Review Committee• Membership includes 3 Freeholders and  county staff• Meetings are held monthly• Re...
DefinitionsDivision of Local Government Services• Provides technical and financial assistance to  local governments in bud...
Morris County’s Capital Program               Capital Management: A Full Year of               Planning, Budgeting, Purcha...
Morris County’s Capital ProgramThe Importance of our Capital ProgramThe objective of a capital program is togive a clear p...
Morris County’s Capital Program                     The Importance of our Capital ProgramA good plan is                   ...
Morris County’s Capital ProgramThe Importance of our Capital Program•   It provides an opportunity to evaluate capital pro...
Morris County’s Capital ProgramThe Importance of our Capital Program•   It allows for orderly implementation of the public...
Morris County’s Capital ProgramElements of a Capital Budget• The capital budget contains:  –   The project title  –   Esti...
Morris County’s Capital ProgramCapital Budget ModificationsWhat if priorities change during the year?If a bond ordinance i...
Morris County’s Capital Planning Process               Capital Management: A Full Year of               Planning, Budgetin...
Other AAA Counties (35 total)         Loudon County VA     www.loudoun.gov/          Weber County UT     www.co.weber.ut.u...
For more information….        Contact the       Morris County     Administrator’s Office AdministratorsOffice@co.morris.nj...
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Learn About the Morris County NJ Capital Budget

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What capital budgeting is and how it works in New Jersey, specifically in Morris County.

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  • This needs bullets: who is on it; how often they meet; what they do; long range vision
  • Transcript of "Learn About the Morris County NJ Capital Budget"

    1. 1. Capital BudgetingWhat it is. How it works. Morris County Office of Public Information January 2013
    2. 2. Authority Authority1 Definitions Morris County’s Capital Program Morris County’s Capital Planning Process
    3. 3. Authority Authority 1Authority to Spend for Capital Projects• In NJ, a capital budget does not appropriate or authorize the expenditure of any funds.• All appropriations are made by: – An allocation in the current budget; or – Local ordinances; or – Ordinances specifying the expenditure and funding source, which may be the Capital Improvement Fund, the capital fund balance, or a reserve for a specific project or improvement. – Ordinances are adopted by a governing body after a public hearing. – Bond ordinances require a super-majority to pass.
    4. 4. DefinitionsUnderstanding Budget Terms• Capital Program• Capital Plan• Capital Budget• Capital Project• Facilities Committee• NJ Division of Local Government Services (DLGS)
    5. 5. DefinitionsA Capital Program• Provides a long term outlook.• Is a multi-year planning tool.• Is an evolving plan that is responsive to changing needs and priorities.• Shows individual projects, slated into a particular year for planning purposes only.• By law, must cover a minimum of a six year period at the county level.• Does not allocate or appropriate any funds.
    6. 6. Definitions The Capital Plan • NJ’s “Local Budget Law” requires each county to adopt a capital plan each year. • Morris County’s capital plan focuses on public safety, education, and infrastructure projects. • Morris County’s capital plan anticipates future needs but does not fund them.2013 2014 2015 2016 2017 2018
    7. 7. DefinitionsThe Capital Budget• NJ’s “Local Budget Law” requires each county to adopt a capital budget each year.• Every county uses the same budget format, designed by DLGS. The capital budget starts on sheet 39.• The capital budget is the first, or current year, of a capital program. • A capital budget will contain various anticipated capital projects.
    8. 8. DefinitionsCapital Projects• Individual capital projects make up the capital budget.• Examples of capital projects include: – Road and bridge improvements – Park improvements and renovations, including design and construction of new recreational facilities – Building improvements, construction (including County College of Morris, MC School of Technology, as well as various County buildings)• Capital projects must have a useful life of 5 years or more.• The maximum useful life is 40 years.
    9. 9. DefinitionsFacilities Review Committee• Membership includes 3 Freeholders and county staff• Meetings are held monthly• Reviews details of current projects, including on-site visits• Reviews six-year program and long range project scheduling• Reviews and monitors capital ordinance schedule for the year
    10. 10. DefinitionsDivision of Local Government Services• Provides technical and financial assistance to local governments in budgeting, financial reporting, joint services, purchasing, and management issues.• Responsible for the financial integrity of all local government units.• Reviews and approves all municipal, county and fire district budgets.
    11. 11. Morris County’s Capital Program Capital Management: A Full Year of Planning, Budgeting, Purchasing Facilities Committee sets Department heads, Constitutional Officers, and capital budget target agencies submit requests (needs and wants) Facilities Committee reviews and Staff prepares spreadsheet for makes recommendations Facilities Committee reviewFacilities Committee presents proposed Facilities Committee presents capital budget tocapital budget to Budget Subcommittee Freeholder Board for approval (vote) Facilities Committee/Staff develop Capital budget is combined with operating budget for capital ordinance schedule (vote) introduction, public hearing, approval (vote)Ordinances introduced per the schedule Facilities Committee monitors capital projects and for public hearing / adoption (vote) budget throughout the year. Process begins again for next year’s capital program
    12. 12. Morris County’s Capital ProgramThe Importance of our Capital ProgramThe objective of a capital program is togive a clear picture of future capitalrequirements, the cost of all projects, themethods of financing them and the abilityof the county to pay for these projects.
    13. 13. Morris County’s Capital Program The Importance of our Capital ProgramA good plan is • It enhances the likelihood that Morris County willlike a road map:it shows the final continue to obtain a AAA bond rating, which results indestination and lowered borrowing costs and savings to Morris Countyusually the bestway to get there. taxpayers. H. Stanley Judd • It shows a sound, consistent program of improvement American Author in Morris County, which encourages the investment of private capital. • It expands our opportunities to participate in both Federal and State grant programs.
    14. 14. Morris County’s Capital ProgramThe Importance of our Capital Program• It provides an opportunity to evaluate capital projects in light of the county’s ability to pay.• It assists in maintaining financial stability by distributing expenditures evenly over a period of time, thus avoiding major fluctuations in the tax rate.• It eliminates the need to consider otherwise routine projects on an emergency basis.• It avoids conflicts between projects proposed by different agencies.
    15. 15. Morris County’s Capital ProgramThe Importance of our Capital Program• It allows for orderly implementation of the public improvement portion of the comprehensive plan, without the imposition of unreasonable financial burdens.• It assures maximum utilization and efficient usage of equipment and other resources through the elimination of scheduling and resource conflicts.• It lengthens project lead time, avoiding last minute delays due to design, negotiation, acquisition, or other related matters.
    16. 16. Morris County’s Capital ProgramElements of a Capital Budget• The capital budget contains: – The project title – Estimated total cost – Funding amounts reserved in prior years – Planned funding sources for the project • Possibilities: operating budget, capital improvement fund, capital fund balance, grants, future year funding
    17. 17. Morris County’s Capital ProgramCapital Budget ModificationsWhat if priorities change during the year?If a bond ordinance is necessary, then• The capital budget must be amended• Amendments must be on forms prescribed by the DLGS• The bond ordinance must be approved by the governing body after a public hearing.
    18. 18. Morris County’s Capital Planning Process Capital Management: A Full Year of Planning, Budgeting, Purchasing Facilities Committee sets Department heads, Constitutional Officers, and capital budget target agencies submit requests (needs and wants) Facilities Committee reviews and Staff prepares spreadsheet for makes recommendations Facilities Committee reviewFacilities Committee presents proposed Facilities Committee presents capital budget tocapital budget to Budget Subcommittee Freeholder Board for approval (vote) Facilities Committee/Staff develop Capital budget is combined with operating budget for capital ordinance schedule (vote) introduction, public hearing, approval (vote)Ordinances introduced per the schedule Facilities Committee monitors capital projects and for public hearing / adoption (vote) budget throughout the year. Process begins again for next year’s capital program
    19. 19. Other AAA Counties (35 total) Loudon County VA www.loudoun.gov/ Weber County UT www.co.weber.ut.us/ Washington County MN www.co.washington.mn.us/ Arlington County VA www.arlingtonva.us/ Oakland County MI www.oakgov.com/ Travis County TX www.co.travis.tx.us/ Henrico County VA www.co.henrico.va.us/ Hillsborough County FL www.hillsboroughcounty.org/ King County WA www.kingcounty.gov/ Prince William County VA www.pwcgov.org/ Frederick County MD www.frederickcountymd.gov/
    20. 20. For more information…. Contact the Morris County Administrator’s Office AdministratorsOffice@co.morris.nj.us (973) 285-6040
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