Page 304 - Southlake FY23 Budget

CAPITAL IMPROVEMENTS PROGRAM (CIP)

Capital improvements programming is a valuable tool to ensure that choices are made wisely. The City’s
development goals are implemented, in part, by the careful provision of capital facilities. The benefits of this
systematic approach to planning capital projects include the following:

• Focuses attention on community goals, needs, and capabilities.
Through capital improvements programming, capital projects can be brought into line with the City’s long-range
plans by balancing identified needs with financial capacities. Considered individually, a new park, water system
improvements, and street widening may be great ideas; however, each project may look quite different when, in
the course of the Capital Improvements Program process, it is forced to compete directly with other projects for
limited funds.

• Optimizes use of the taxpayer’s dollar.
The Capital Improvements Program helps the City Council and City Manager make sound annual budget
decisions. Careful planning of capital improvements helps prevent costly mistakes. In addition, capital planning
allows the City to save money in several other ways. For example, investors in municipal bonds tend to look more
favorably on communities that have a Capital Improvements Program; if bond financing is selected for a capital
improvement project, the City may realize significant savings on interest.

• Guides future growth and development.
The location and capacity of capital improvements shape the growth and development of the City. City decision
makers can use the Capital Improvements Program to develop well thought-out policies to guide future land use
and economic development.

• Encourages efficient government.
Interdepartmental coordination of capital improvements programming can reduce scheduling conflicts and
ensure that no single function receives more than its fair share of resources. In addition, the CIP can be used to
promote innovative management techniques and improve governmental efficiency and effectiveness.

• Improves the basis for intergovernmental and regional cooperation.
Capital improvements programming offers public officials of all governmental units (City of Southlake, Tarrant
and Denton Counties, and local school districts) an opportunity to plan the location, timing, and financing of
improvements in the interest of the community as a whole.

• Maintains a sound and stable financial program.
Having to make large or frequent unplanned expenditures can endanger the financial well-being of the City.
Sharp changes in the tax structure or bonded indebtedness may be avoided when construction projects are
planned in advance and scheduled at intervals over a number of years. When there is ample time for planning,
the most economical means of financing each project can be selected in advance. Furthermore, a CIP can help
the City avoid commitments and debts that would prevent the initiation of other important projects at a later
date.

• Enhances opportunities for participation in federal or state grant programs.
Preparing a CIP improves the City’s chance of obtaining aid through federal and state programs that provide funds
for planning, construction, and financing of capital improvements. The CIP is considered a “public works shelf” that
contains projects that can be started quickly by having construction or bid documents ready should any grants become
available.

BUDGET BOOK | FY 2023 City of Southlake 303
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