07-10-07 FPAC Agenda - Laserfiche WebLink

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• A schedule for completion of the project,including specific phases of a project, estimated • funding requirements for the upcoming year(s), and planned timing for acquisition,design, and construction activities. • Descriptions of the general scope of the project,including expected service and financial benefits to the jurisdiction. • A description of any impact the project will have on the current or future operating budget. • Estimated costs of the project,based on recent and accurate sources of information. • Identified funding sources for all aspects of the project, specifically referencing any financing requirements for the upcoming fiscal year. • Funding authority based either on total estimated project cost,or estimated project costs for the upcoming fiscal year. Consideration should be given to carry-forward funding for projects previously authorized. • Any analytical information deemed helpful for setting capital priorities(this can include any cost/benefit comparisons, and related capital projects). Jurisdictions should provide a greater level of detail and information for non-routine capital projects than for routine projects. For example, a major new wastewater treatment plant or civic center will have greater service and cost implications than an ongoing project to resurface roads or maintain water lines. For non-routine projects,the capital budget should thoroughly describe the impact on the operating budget,number of additional positions required,tax or fee implications, and other financial or service impacts. When developing the capital budget, entities should consider measures to mitigate risk related to 410 undertaking major non-routine projects. Based on the size of the capital budget and the complexity of the capital projects,it may be appropriate for entities to budget additional reserves for project overruns or insurance coverage such as performance bonds or general liability coverage. Reporting on the Capital Budget. GFOA recognizes the importance of timely and accurate reporting on projects adopted in the capital budget. Executive leadership,legislators, and citizens should all have the ability to review the status and expected completion of approved capital projects. Periodic reports should be issued routinely on all ongoing capital projects. The reports should compare actual expenditures to the original budget,identify level of completion of the project, and enumerate any changes in the scope of the project, and alert management to any concerns with completion of the project on time or on schedule. References • Distinguished Budget Presentation Awards Program,Awards Criteria and Explanations of the Criteria, GFOA. • John Vogt, Capital Budgeting and Finance:A Guide for Local Governments,ICMA,2004. • Nicole Westerman,Managing the Capital Planning Cycle:Best Practice Examples of Effective Capital Program Management, Government Finance Review, 2004. • National Advisory Council on State and Local Budgeting,Recommended Budget Practices:A Framework for Improved State and Local Government Budgeting, 1998. • Patricia Tigue, Capital Improvement Programming:A Guide for Smaller Governments, 1996 • John Fishbein,Preparing High Quality Budget Documents,GFOA, 2006. 111111 Approved by the GFOA's Executive Board on March 2, 2007.