2012 Budget Summary - Chicago Park District

Capital Improvementsobjectives, establish meaningful timelines for projects, and make clear to the public theDistrict's future investment intentions. The working group's recommendation to the GeneralSuperintendent must stay within the financial constraints.The 2012-2016 Capital Plan presents projects planned for the next five years with totalanticipated available funds of over $306 million dollars. The following pages illustrate theexpected sources and uses of capital plan funds and their geographic and programmaticdistribution. As well, this document offers project descriptions, expected timelines, andexamples of recent projects.The Capital Improvement Plan (CIP) is the District’s comprehensive multi-year plan for thedevelopment of the District’s facilities, land acquisition, improvements and major equipment.The CIP outlines the projects that are expected to take place over the next five years. Capitalexpenditures usually involve projects with costs of over $25,000, have a life expectancy of atleast 7 years, are funded from multiple sources, and may result in the creation of a capitalasset.As part of the annual budget development process for each capital improvement plan, the ParkDistrict conducts public hearings throughout the City. Information from these hearings iscombined with needs assessment data and internal and external priorities to produce a list ofrecommended projects. Each recommended project is evaluated and grouped according to thefollowing criteria:DETERIORATED FACILITY A project that meets this criterion is one that addresses adeteriorated facility or piece of equipment. Projects may include reconstruction or extensiverehabilitation of a facility or piece of equipment to extend its useful life to avoid or postponereplacing it with a new and more costly one. Also included is complete replacement of a facilityor piece of equipment with a new one.SYSTEMATIC REPLACEMENT A project that meets this criterion is one that replaces or upgradesa facility or piece of equipment as part of a systematic replacement program. There is anassumption that the equipment will be replaced at approximately the same service level withsome increase for normal anticipated growth or increased demand.OPERATING EFFICIENCY A project that meets this criterion is one that substantially andsignificantly improves current or future operating efficiency, including reduction of anticipatedincreases in operating expenses.COORDINATION A project that meets this criterion is one that is necessary to ensurecoordination with another capital improvement project, an external requirement, such as anunfunded mandate, or a project that meets established goals or objectives of the District.56