Page 45 - Southlake FY20 Budget

Transmittal Letter

Capital Improvements Program

The proposed FY 2020 to FY 2024 Capital Improvements Program (CIP) is also submitted for City Council’s
consideration.

The CIP supports the City of Southlake’s strategy because projects included for FY 2020 through FY 2024
“provide travel convenience within the city and region,” and “provide attractive and unique spaces for
enjoyment of personal interests.” The CIP is also an “investment of city dollars to provide and maintain high
quality public assets.”

The CIP establishes a five-year funding schedule for the purchase, construction or replacement of physical
assets of the City. Capital improvements typically have a useful life of over ten years and a value greater
than $10,000. The first year (FY 2020) of the CIP is called the Capital Budget and is appropriated in the same
manner as the annual operating budget. Projects approved for subsequent years (FY 2021 through FY 2024)
are approved for planning purposes only and do not receive expenditure authority until they are part of the
Capital Budget.

The CIP Technical Committee, which is comprised of the Assistant City Managers and Department Directors,
began the process of evaluating CIP project requests in April to allow adequate time for the CIP to be
developed in conjunction with the annual budget. By reviewing the CIP in conjunction with the budget, City
Council will be able to evaluate capital needs as part of overall budget considerations, such as operating
impacts.

The review of CIP projects by the committee involved the following process. First, the CIP request forms
are distributed to the appropriate departments. The request forms are subsequently completed by the
responsible departments and submitted to the committee, which then begins the process of evaluating the
various requests. The committee’s role includes:

1. Reviewing the CIP project requests for accuracy.
2. Determining if projects can be consolidated in order to reduce project costs.
3. Scoring each CIP project request based on a standardized form.

Once scored, each CIP project was ranked in the appropriate funding category. The resulting ranked project
list was then reviewed by the committee to ensure that there were no obvious flaws in the ranking system.

The CIP Technical Committee then reviewed the dollar amount available in each of the fund categories for
each of the next five fiscal years and recommended projects to be funded in FY 2020 and the other four
future years, FY 2021 to FY 2024.

Recommended projects were then reviewed by the City Manager’s Office. The CIP process is illustrated
graphically as Figure 13.

The FY 2020 Capital Budget includes projects totaling $18,700,000 from all funding sources.

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