Page 202 - GFOA Draft 2

CITY OF SAGINAW
FUND DESCRIPTION

CAPITAL PROJECTS FUND OVERVIEW

With the exception of the now completed Bailey Boswell overpass, the focus of the Capital Projects Budget has been
maintaining, upgrading, and replacing current infrastructure. Generally capital projects that have replaced aging
infrastructure create an indirect savings to the operating budget by reducing the resources necessary to keep the aging
infrastructure in good operating condition. For example, the replacement of aging water and wastewater lines may result in
an operating savings of materials and staff hours that would be called out to x an aging line that has a leak or break.
These types of savings do not result in an operating budget surplus as the resources saved are directed to other aging
infrastructure requiring maintenance.

As new facilities are proposed, the resulting increase in personnel and other operating costs are evaluated in addition to
the cost to build the facility. These types of projects are considered in their entirety and must be approved and funded in
both the operating and capital projects budget.

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