Version 1.0
             18 March 2009




   Structure for a
Comprehensive CIP
Triangle J Council of Governments                                                        CIP Good Practices
       Develop...
Triangle J Council of Governments                                                       CIP Good Practices
        Develop...
Triangle J Council of Governments                                                                      CIP Good Practices
...
Triangle J Council of Governments                                                                      CIP Good Practices
...
Triangle J Council of Governments                                       CIP Good Practices
             Development & Infr...
Triangle J Council of Governments                                                                         CIP Good Practic...
Triangle J Council of Governments                                                         CIP Good Practices
           De...
Triangle J Council of Governments                                                     CIP Good Practices
        Developme...
Triangle J Council of Governments                                                CIP Good Practices
            Developmen...
CIP Template
CIP Template
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CIP Template

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A bare-bones approach to creating a CIP if your organization does not already have one.

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CIP Template

  1. 1. Version 1.0 18 March 2009 Structure for a Comprehensive CIP
  2. 2. Triangle J Council of Governments CIP Good Practices Development & Infrastructure Partnership Version 1.0 18 March 2009 Capital Improvement Budgets are long-term fi- 7. Stormwater nancial plans. The purpose of these plans is to fore- 8. Solid Waste cast capital improvement expenditures and meas- 9. Justice & Public Protection ure their impacts on future budgets. These expendi- tures are designed to enable counties and commu- 10. IT & Communications nities to provide equal or better service over an ex- 11. General Services tended period of time. Capital Improvements tend 12. Housing to be large ticket items that are multi-year invest- ments. GASB34 defines capital assets “as tangible 13. Health and Human Services and intangible assets used in operations with useful 14. Other lives longer than one reporting period and a mini- When drafting a new CIP, organizations need to mum cost based on approved capitalization levels.” begin building financial documents based upon Capital Budgets may be based upon existing annual these fourteen classifications based on the depart- budgets, or they may be used as templates to create ments* your organization currently has and: the Annual Budget, as well as the Comprehensive Annual Financial Reports. The intent of this report Forecast capital spending for either five or ten is to provide a basic template for organizations that years; and either do not currently produce a capital improve- Predict future revenue streams for these capital ments budget or would like to improve their budg- expenditures. eting process. Long-range financial documents may not be able Organizations that do not currently have a CIP to precisely reflect the future source of funds or need to evaluate producing the three financial re- costs of a project. The purpose of identifying fund- ports,(the comprehensive annual financial report, ing sources is to approximate future tax rates, the annual budget, and the CIP, ) in a standard bonds, or reserve needed to complete the capital process. Data classifications from one report need improvements. to be consistent with the data classifications in the other two reports. The Development and Infrastruc- If programs are projected less than five years in ture Partnership has identified fourteen classifica- advance funding may be difficult to procure. If pro- tions for capital improvement programs. The ma- grams are projected out further than ten years costs jority of the CIPs reviewed have similar classifica- and revenues become, at best, educated guesses. tions. There are precedents for classifying funds for pro- The fourteen classifications identified by the Tri- jects as unauthorized bonds or unfunded projects, angle J Development and Infrastructure Partner- especially projects that are timed towards the far ship are: end of the timetable. If revenue streams cannot be identified, a separate unfunded CIP section needs to 1. Schools be established. Projected costs of the capital im- 2. Transportation provements, including inflation, need to be clearly 3. Parks and Open space quantified and qualified. 4. Arts and Culture * Note: ‘Departments’ and ‘classifications’ will be used interchangeably throughout this document. 5. Water (Continued on page 2) 6. Wastewater 1
  3. 3. Triangle J Council of Governments CIP Good Practices Development & Infrastructure Partnership Version 1.0 18 March 2009 The reasons to standardize the creation of financial 5. Project the maintenance and development costs reports are straightforward. Data from the Capital Im- 6. Allocate the staff costs, where appropriate. provement Program can be migrated into the Annual Budget and then summarized in the subsequent year‟s 7. Using the following template, identify the source(s) Comprehensive Annual Financial report. When data is of funds needed for each project/program item – not entered in a standardized manner, using standardized all communities will have all options available: project identifiers, reports may be updated without re- General Funds inventing the process. Finally, a standardized product is beneficial to the reader, especially those who may Reserve Funds read the same financial documents year in and year Approved Bonds (Bonds, 2/3 bonds, revenue out. There are instances where the name of a project, a bonds, utility bonds.) school or a park, may change during the period from concept and design to finished project. Where names Certificates of Participation of projects change a translation tables is necessary. The Impact Fees unique project code should not change( e.g. PR2008- 12 for a Parks and Recreation Project added to the CIP Special Funds (Powell Funds, Lottery Proceeds, during the 2008 CIP Budget, one of 12 Parks and Rec- Grants) reation Projects identified that year.) Bonds – Unapproved Successful CIPs will reflect the mission and vision of the organization. The mission is why the organization Funds – Unapproved exists. The vision is where the organization is heading. 7. Create a summary page for each department, Capital Improvement Programs can be seen as Goals totaling the revenue and expenses of the individual statements for the organization. Goals have time lines projects. (Page 5, Step 4) and costs associated with them. The process of creat- ing a vision or a mission statement is outside the scope 8. Link each cell from the project level to the next of this report. level up in the document - the Department Level. (e.g. Schools B2 ='School Project #1'!B2) Total Cost The process of creating the CIP document can be as for Lake Church Elementary 2009-09. simple as using Excel or one of a number of programs designed for creating CIPs such as CIPAccess/CIPAce, 9. Link each Department Level to the Summary by PlanIt!, CIPS, CIPvizion, orTeamBudget Capital. Category Page (eg. 14 Categories Schools B2 = Schools!B16 ) Total for all school projects for 2008- When the initial template is designed in Excel or a 09. similar product: 10. Link each of the Funding Source Cells and the 1. Determine if the capital improvements are single- Maintenance/Development Cost cells using the same year or multi-year projects. process. 2. Create a Template for the Fourteen Classifications, 11. Compile a summary page for the organization, with Funding Sources and Maintenance / totaling the expenditures and the funding sources for Development Costs (Steps 1 and 2, Page 3) all departments, including those that operate outside 3. Create 14 pages, representing the 14 categories of the General Fund, an example being Utilities. (Step 3, page 4) 12. Enter the current tax base and projected tax bases 4.Detail the upfront capital costs for subsequent years. Use your current tax rate to (Continued on page 4) 2
  4. 4. Triangle J Council of Governments CIP Good Practices Development & Infrastructure Partnership Version 1.0 18 March 2009 Step 1: Rename “Sheet1” to “14 Categories” by right-clicking on the “sheet1” tab at the bottom of the worksheet, selecting „rename‟ and changing the text when the cursor goes to a bar on that tab. Step 2: Recreate the table below with whichever items you require or will require in your CIPs: 3
  5. 5. Triangle J Council of Governments CIP Good Practices Development & Infrastructure Partnership Version 1.0 18 March 2009 calculate projected revenue. 14. Using the same process as used for the funding sources, and project costs, reference the individual 13. Calculate the amount of tax one penny would pro- penny rates and tax rate impacts forward to the cate- duce and calculate the tax rate impact for the individ- gory/department summary page, and move that total ual projects. forward to the overall summary page. (Continued on page 7) Step 3: For each of the 14 items under “Category” in Step 2, create another worksheet/tab. 4
  6. 6. Triangle J Council of Governments CIP Good Practices Development & Infrastructure Partnership Version 1.0 18 March 2009 Step 4: In each of these category worksheets, create the following table: 5
  7. 7. Triangle J Council of Governments CIP Good Practices Development & Infrastructure Partnership Version 1.0 18 March 2009 Step 5: For each project you list in each category sheet, create a separate sheet with the following table: 6
  8. 8. Triangle J Council of Governments CIP Good Practices Development & Infrastructure Partnership Version 1.0 18 March 2009 Data from each project is best if it flows through the The current tax rate spreadsheets such that lines and columns on successive pages are in complete alignment. The Penny Rate (one cent of property tax on property values) Special care must be taken when classifying projects that may receive bond funds to ensure that The collection rate the expenditures do not commingle different The image below (Figure 1) was found in the approved bond categories. Chatham County Budget for 2007-08. It provides a If the project(s) identified are long-term or quick snapshot of the Budget. A similar image could recurring investments other items must be identified be produced for a CIP. at the : Referencing the need for future funds or bonds as Reserve Balances unapproved, as previously noted, is potentially problematic, unless a discussion of future bonds or Reserve Contributions future revenue streams is broached. Revenue Sources (Special Funds, Grants, Project pages are improved through the addition of Fees, Special Sales tax, or Impact Fees, Bonds) geographic locations of the project. If your organization uses GIS, creating a shapefile or a Capital Budgets or Capital Improvement plans need geodatabase of projects to track potential projects , to identify: data tables can be generated from the “dbf” files associated with the layers. Fields that should be Property Values (and the date of the last revaluation) (Continued on page 8) Figure 1: Budget snapshot from Chatham County Budget 7
  9. 9. Triangle J Council of Governments CIP Good Practices Development & Infrastructure Partnership Version 1.0 18 March 2009 included in the shapefiles or database layers are: SUMMARY Project Identifier Capital Improvement Programs are long-range fiscal planning documents that are connected to prolonged Department physical improvements or capital intensive in nature. The multi-year, multi-project nature of the CIP offers Name flexibility in funding. CIPs, when standardized, can aid Alias in the development of Annual Budgets and Compre- hensive Annual Financial Reports. CIPs can also aid in Phase the planning of future bond needs or project changes Physical Location/Address in either future tax rates or service levels. Standardiza- tion of the CIP process will be beneficial to the fiscal Type of Project and physical planning of an organization. The stan- Date added to CIP dardization of the CIP process can be done using finan- cial workbook software such as Excel, or through any Year for Project to Occur/start number of CIP software programs. Classifying the data according to the fourteen categories delineated by the Year Completed Development and Infrastructure partnership will aid Funding Source(s) organizations that wish to make peer-to-peer compari- sons or organizations that wish to streamline the finan- Bond Package/Classification cial planning process. Cost (Projected) If your organization does not currently provide wastewater, sewer, or water services at this time, for Cost (Actual) example, it may not seem to be necessary to itemize See the project page provided by the Town of Hills- these classifications or departments. If your organiza- borough (Page 9, Figure 2). tion is looking to add these services, or any of the other eleven services, during the next five to ten years, then it will be beneficial to consider these items within the context of the current CIP and future CIPs. 8
  10. 10. Triangle J Council of Governments CIP Good Practices Development & Infrastructure Partnership Version 1.0 18 March 2009 Figure 2: Sample project page from Town of Hillsborough (photo added for example) 9

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