2012-2013 Budget - City of Saginaw MI

CAPITAL IMPROVEMENT PLANFY 2012/13 – FY 2016/17OVERVIEWThe City of Saginaw annually compiles a five-yearplan of Capital expenditures. A capitalimprovement is a major and permanent projectrequiring the non-recurring expenditure of publicfunds for the acquisition of any property,construction renovation, or replacement of anyphysical asset of the community. A capitalexpenditure is an expense that will benefit bothcurrent and future budget years, is of a tangiblenature, and has a value of more than $20,000.The total cost of the five-year program from FY2012/13 to FY 2016/17 is $51,396,957. The FY2012/2013 Capital Improvement Plan consists ofCapital purchase requests in the amount of$15,602,388, of which only $3,257,900 have beenincluded in the 2012/13 Budget. The Office ofManagement and Budget (OMB) in conjunctionwith the department heads is responsible for thegeneral review and summation of the CapitalImprovement Plan and submitting it to the CityManager for prioritization and approval. TheCapital Improvement Plan is developed with thecity’s annual budget.The city’s objective is to work in partnership withothers to maintain, improve, and develop the cityownedinfrastructure. The goal of the CapitalImprovement Plan is to provide guidance as neededfor capital improvement and expenditures in afiscally sound manner. Furthermore, this planhopes to ensure that all capital improvements areconsistent with the goals and policies of the CityCouncil and the residents of the City of Saginaw.The Capital Improvement Plan is vital to the citybecause it provides for equipment acquisition,enables new construction or upgrades of publicfacilities and infrastructure, and has a positiveimpact on the local economy. In addition, this planis a necessary step in an organized effort tostrengthen the quality of public facilities andservices as well as provide a framework for therealization of community goals and objectives. Italso provides a sound basis on which to build ahealthy and vibrant community. Recognition ofthis importance prompted city administration topropose additions to, and finance continuation of,the existing CIP.CAPITAL IMPROVEMENT PROCESSThe Capital Budget Process follows the samepreparation schedule as the Operating BudgetProcess. The following details the three steps indeveloping a capital improvement plan.DepartmentsThe capital budget process begins at the departmentlevel. Department directors are responsible for thedevelopment of a functional plans and long-termcapital improvement schedules for the next fiveyears. Departments are also responsible for thedevelopment of project requests prepared on astandard computer template that is provided tothem from the Office of Management and Budget.This data is then sent to the OMB for review.Office of Management and BudgetThe OMB is responsible for creating the capitalbudget for the city. This office develops thenecessary procedures with the departments. At theonset of the budget development process, staffprovides instructions for the input of the proposedproject into the capital improvement plan electronicformat. At the same time a schedule of due datesare provided to departments. Once the departmentshas updated the electronic forms and submitted tothe OMB. OMB staff will review these plans anddiscuss discrepancies with the departments. Aproject request summary will be prepared and givento the City Manager for review and prioritization.City Manager/City CouncilThe City Manager evaluates capital project requestsand determines which capital expenditure projectsshould be undertaken. The capital projects are thenpresented to City Council and the City’s PlanningCommission along with a capital financing strategy328