Transcript BUDGETING & ACCOUNTING FOR GRANTS AND CAPITAL PROJECTS 2013 Municipal Professionals’ Institute Patrick Callahan, Municipal Consultant.

BUDGETING & ACCOUNTING FOR GRANTS
AND CAPITAL PROJECTS
2013 Municipal
Professionals’
Institute
Patrick Callahan,
Municipal Consultant
CAPITAL IMPROVEMENT PLANNING (CIP)
CIP Definition - Written Document
 Long
range plan
(4-6 years)
 Planning,
scheduling, &
financing
 Construction
projects &
equipment
 Key-
Costs & Frequency
CIP - “THE MISSING LINK”
 COMPREHENSIVE
 CAPITAL
PLAN
IMPROVEMENTS PLAN
 CITY’S
ANNUAL BUDGET
PARTS OF PLANNING PROCESS
COMP PLAN
COUNCIL
SMART PLAN
STAFF
GOAL SETTING/CIP
ANNUAL BUDGET
CITIZENS
CIP - THE TOP TEN LIST
1. Systematic Evaluation of all Potential
Projects - At Same Time
2. Stabilize Debt Structure
3. Consolidate Projects - Reduce
Borrowing Costs
4. Public Relations
5. Preserve the City’s Infrastructure
CIP TOP TEN LIST continued
6.
Economic Development Tool - City has “It’s
Act Together”
7. Efficient Use of City Money
8. Foster Cooperation - Everyone has the “Big
Picture”
9. Inform Other Governments - County,
Schools, Cities
10. Accomplish Long Term Goals
GETTING CIP “BUY IN”
Mayor/Council/City
Administrator/Department Heads
1.
Seek Project Suggestions
2.
Ranking of Projects
3.
Annual Reviews
4.
Regular CIP Updates
5.
Public Input
LEGAL ASPECTS OF CIP
1. Public Hearing - Code of Iowa 384.15 (3)
2. CIP Levy - 67.5 cents/$1,000 - Voters
3. Bid Letting - Code of Iowa 384.95
4. Emergency Levy - 27 cents/$1,000
CONSTITUTIONAL DEBT LIMIT
 5%
of Assessed Value - Not Taxable Value
 Applies
 Not
to G.O., TIF & LOST Bonds
Apply to Revenue Bonds, RUT Bonds,
or Special Assessment Bonds
CIP PROCESS
1.
2.
3.
4.
5.
6.
Define the Criteria
Organize the Process
Develop Basic Policies
Forecast the Demand or Growth
Inventory Existing Facilities
Prepare Project Proposals
CIP PROCESS continued
7.
8.
9.
10.
11.
12.
Seek Advice
Review City’s Finances
Prepare Scenarios - Schedules
Prepare CIP Draft
Public Hearing
Final Draft - Council Resolution
CIP – First Year in the
Next City Budget
 Identify
Expenditures and Revenues
 Consider the tax levies
 Review the special revenues
CIP INFORMATION
 TITLE
 DESCRIPTION
 JUSTIFICATION
 LOCATION
 DEPT.
PRIORITY
 REVENUE IMPACT
 CAPITAL
COSTS
 COSTS - ANNUAL
 FINANCING
 RELATIONSHIP
 STATUS
 COUNCIL PRIORITY
SOURCES OF FUNDING FOR
CAPITAL PROJECTS
Potential Revenue Sources
1. Municipal Debt Financing
a.
b.
c.
2.
3.
4.
G.O. Bonds - Essential Purpose (No Vote)
G.O. Bonds - General Purpose (60% Vote)
Review Existing Debt
Revenue Bonds
Special Assessments
Loan Agreements
SOURCES OF FUNDING FOR
CAPITAL PROJECTS
Potential Revenue Sources
5. RUT Money
6. Grants and Donations
7. Lease Purchase Agreements
8. TIF/Urban Renewal Funds
SOURCES OF FUNDING FOR
CAPITAL PROJECTS continued
9. LOST Revenue - Voter Approval
10. User Fees
11. Special Taxing Districts
ADDITIONAL INFORMATION
1.
2.
3.
Municipal Debt Financing
G.O. vs Revenue Debt
G.O. vs. TIF Debt
-DisclaimerConsult the City’s Bonding Attorney
BEST PRACTICES FINAL COMMENTS
1.
2.
3.
4.
5.
Annual Reviews
Quarterly Updates
How to Get Started
Questions
Comments
Contact Information
Patrick Callahan
Callahan Municipal Consultants
417 Kaitlynn Ave
Anamosa, IA 52205
[email protected]
Cell: (563) 599-3708