FY 2025 BUDGET BOOK - Flipbook - Page 105
Figure 17:
City Budget Planning Process Hierarchy
Long-Term Planning
10-Year Comprehensive
Plan
Strategic Plan
Mid-Term Planning
Five-Year CIP
FY 2025 - 2029
Vision, Mission, Core
Values
Short-Term Planning
One-Year
Capital Budget
Short-Term Goals
Fulfilled by Annual
Operating Budget
Capital Projects Operating Budget Impact
The CIP budget accounts for financial resources related to the acquisition, construction or expansion
of major capital facilities and/or equipment. A capital project is generally non-recurring in nature
and may include the purchase of land, site development, engineering and design fees, construction,
and equipment. Capital projects produce assets with useful lives longer than one year.
Operating costs associated with implementation of projects are a fundamental part of the CIP. Once
the project is complete, the operating costs then become a recurring cost in the operating budget.
Capital projects can have a major impact on maintenance, utilities, other contractual services,
operating supplies costs. They can also have an impact on insurance and debt service. In recent
years, due to fiscal constraints, the City has focused the CIP budget on maintaining existing
infrastructure, such as roads and building maintenance projects. Typically, these types of recurring
capital projects have only maintenance as a recurring impact on the operating budget.
One exception is information technology projects. These projects necessitate ongoing funding for
systematic replacement of information and communication systems, as well as ongoing operating
impacts that may include maintenance costs and software support.
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