Page 264 - Saginaw FY22 Adopted Annual Budget

CITY OF SAGINAW, TEXAS

FINANCIAL MANAGEMENT POLICIES

VIII. Capital Improvements Plan ( CIP)
A. The Capital Improvements Plan includes City facilities and infrastructure

1. Facilities include any structures or properties owned by the City, the land
upon which the facility is situated for the provision of City services, and the initial
furniture, fixtures, equipment and apparatus necessary to put the facility in

service.
2. Infrastructure includes permanently installed facilities, generally placed
underground or at ground level, which form the basis for the provision of City
services.
3. Preparation

a) The Capital improvements Plan describes facilities and infrastructure
projects including related professional services necessary to acquire, design, and
construct them.
b) Each year City Engineers and other City Staff update the CIP as part of
the annual budget process. Updates are based on current cost estimates,
changing priorities, timing of construction in progress, and funding availability.
Estimates shall include a cost escalation factor for projects that that are
scheduled in future years. The factor that is used will be disclosed during CIP
review.
c) The CIP is prepared for a five year period with the first year of the plan
being adopted as part of the annual budget.

4. Impact on Operating Budget — The operating impact of capital
improvements will be considered when developing the CIP and determining which

projects will be funded in the coming year. The operating budget impact could
include debt service payments or the operating expenses related to additional or
enhanced facilities.
5. Use of Fund Balance — The use of fund balance for capital projects will
require a favorable vote by the majority of the City Council ( four affirmative votes
are required).
6. Gross Cost Overrun — In the event that a project funded with voter
approved debt is competitively bid and the lowest qualified bid amount exceeds
the project budget by 50% or greater, the project shall be placed on hold and will
require a favorable vote by the majority of the City Council (four affirmative votes)
to resume.

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