Page 29 - Forest Hill FY22 Annual Budget

l
Fore,Hil

C
Projects meeting the above definition will be included in the Capital Improvement Plan (ClP)
rather than the annual operating budget document.

As a planning document, the City shall adopt annually the first year of a five year rolling
projection of the City's capital needs as well as the future financing requirements in the form of a
CIP.

The CIP shall be linked to the City financial and strategic plans.

As a planning document, the CIP does not impart any spending authority.

Spending authority for capital projects is the capital budget.

The capital budget shall include only capital projects with budgets appropriated by specific City
Council action. Capital project budgets shall be appropriated on project-by-project, multi-year
basis (project budget amounts are approved through completion of the project).

The capital budget does not run concurrently with the operating budget fiscal year.

City staff shall identify the estimated costs and project schedule for each capital project proposal
before it is submitted to the City Council for approval.

The City Manger shall in writing identify specific available funding sources for each capital
project budget proposal before it is submitted to the City Council for approval.

Expenditure tracking for component of the capital budget will be updated quarterly to ensure
project completion against budget and established timelines.

Change orders resulting in a change in the project cost shall require an amendment to the capital
budget.

Capital improvements may impact the operating budget. Addition of new infrastructure can lead
to expanded programs and a need to hire personnel to manage program operations. Replacement
of aging structures may decrease operating and maintenance expenditures due to energy
efficiencies and reduced repair needs, City staff will analyze, and when necessary, include
operating budget impact statements in the ClP.

Utility Rates

Utility rates will be reviewed annually to adjust operating revenues to meet operating costs and
changes in contractual services.

25