Page 321 - CityofKellerFY25Budget

CAPITAL IMPROVEMENT PROJECT FUNDS

FUND DESCRIPTION:
Capital Improvement Project (CIP) Funds are costs related to large, one-time projects which either create or improve an asset and are project-life
budget based and not fiscal year budget based. Project-life budgeting means fund are appropriated until the project is completed, rather than on an
annual basis as capital projects tend to cross over multiple fiscal years. The Capital Project Budgets are not included in the City’s operating project
budget as the funding sources are typically transfers from an operating project, therefore the revenue source and expenditure costs have already
been accounted for within an operating project fund. CIP project funds typically do not include capital outlay expenditures such as vehicles and
equipment purchases unless the expenditure is part of a larger project. Capital outlay expenditures are included in the departmental operating budgets
and considered part of the annual operational costs.
FIVE YEAR CIP PROCESS:
The City annually prepares a five-year CIP which is a financial management and planning tool to help address changes in the growth and service
demands of the City services. The CIP summary includes the adopted 2015-16 through 2023-24 funding and expenditure allocations, the proposed
2024-25 funding and expenditure allocations, and the anticipated 2025-26 through 2028-29 funding and expenditure allocations which are separate
annual allocations for the listed projects.
The City uses project-life budgeting meaning the total proposed project funding and expenditures allocations include the prior year allocations plus the
adopted FY 2024-25 allocations. The revenues and expenditures allocations end at the close-out of the project, rather than at the end of the fiscal
year. Future allocations are for planning purposes only and does not commit the City to any project or funding authorization. The future project
information provided in the CIP is used as a guide for preparing future operating budgets, as well as a general planning document for capital
improvements financing.

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