Page 29 - CityofForestHillFY25AdoptedBudget

CAPITAL BUDGET POLICIES (CONTINUED)

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 Manager 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 components 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 CIP.
Utility Rates

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

City departments will regularly review programs and services to adjust service levels and
operating costs.
All departments will be responsible for exploring the available grant opportunities and seek
those matching City needs.

Basis of Presentation
City accounts are organized on the basis of fund and account groups, each of which is considered
a separate accounting entity.

Annual Publications
The Annual Budget and Annual Financial Report may be submitted to the Government Finance
Officers Association (GFOA) applicable Distinguished Award Program annually.

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