Page 74 - Forest Hill FY20 Annual Budget

CITY OF FOREST HILL

CAPITAL PROJECTS FUND

The City accounts for the acquisition and construction of capital assets in the Capital Projects Fund. As a
governmental fund, the Capital Projects Fund is budgeted and accounted for on a modified accrual
basis.

Definition of a capital project - a capital asset expected to have a useful life greater than two years and
an estimated cost of $5,000 or more. Capital projects include:

• Construction, purchase, or major renovation of buildings, utility system, streets, intersections,
or other structures;
• Purchase of land or land rights and major landscaping projects;
• Any engineering study or master plan needed for the delivery of a capital project;
• Any major repair, renovation or replacement that extends the useful operational life by at least
two years or expands capacity of an existing facility.
CAPITAL PROJECTS BUDGET

The spending authority for capital projects is the capital budget which includes only capital projects
appropriated by specific City Council action. City staff identifies estimated costs, project schedule and
available sources of funding for each capital project before it is submitted to the City Council for
appropriation and inclusion into the capital budget.

Revenue sources for the Capital Projects Fund include proceeds from tax supported general obligation
debt, inter-fund transfers from operating and special revenue funds, and interest earnings.
Appropriations for capital expenditures in the capital projects fund may be included as part of the
annual budget, or may be adopted on a project by project basis and extending beyond one year through
the project completion.

CAPITAL PLANNING

Future capital needs are to be identified and considered for inclusion in the Capital Improvement Plan
(CIP) of the City. The CIP is to be a multi-year projection of the City’s capital needs and financing
requirements. As a planning document, the CIP will not impart any spending authority.

The City commissioned a Comprehensive Master Plan and the final report was delivered to the City in
August 2010. Since that time, the City Manager has continued to develop an annual rotational 5 year
master CIP, which can be found in this section of the budget. Further development of the CIP will be
linked to the Comprehensive Master Plan and financial strategic plans.

STREET IMPROVEMENTS

A multi-year Capital Improvement Plan for Streets was completed in August 2015. The City has
completed the projects from that Plan, and now defines and prioritize the near and long term repair,
replacement and improvements of City streets based on priorities as determined by the City Manager
and Council. The major funding source for the street maintenance and improvements program is the
Street Maintenance Sales Tax Special Revenue Fund.

Items that are considered in determining priority are water, sanitary sewer and/ or storm drain

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