Capital Improvement Program
Have you noticed
construction in a street or park in your neighborhood? Mostly during the summer
and fall months, the City undertakes numerous improvements and maintenance
projects.
For information on 2016-2017 CIP projects and costs, click
here (coming soon).
For a map of 2016-2017 Transportation projects, click here (coming soon)
For a map of 2015-2016 projects, click here (coming soon).
What is the Capital Improvement
Program (CIP)?
The Capital Improvement Program encompasses projects that
maintain or improve the City’s infrastructure. This includes roads,
parks, trails, open space, storm drainage, buildings, technology and equipment.
How is the program funded?
Real Estate Excise Tax (REET) is the 0.5% tax paid by the
seller in property transactions and is the largest revenue source for the
Capital Improvement Fund (which pays for reinvestment in City buildings, parks,
and open space). REET also provides more than half of the funding to the
Trasportion capital fund. State law restricts the use of REET for
specific capital purposes. REET-1 (the 1st quarter of 1% of the sales
price) may be used for streets, parks, facilities or utilities. REET-2
(the 2nd quarter of 1% of the sales price) may be used for streets, parks, or
utilities, but may not be used for facilities. Neither REET-1 or REET-2
may be used for equipment or technology.
Other revenue sources for CIP projects include, utility rates as in surface
water management fund or SWM fund, the general fund (for general government
equipment and technology, criminal justice funds and department fees). Grants
are sought to pay for portions of projects when appropriate.
Most revenues for capital projects come with restrictions.
Utility rates as in SWM Fund may only be used for the projects of the
respective utility, and real estate excise taxes (REET) are reserved for
capital projects to help develop a community’s public infrastructure (e.g.,
parks, open space and streets). The City’s capital financing strategy is
to use these restricted revenues to “pay as you go” for needed improvements.
How are the CIP projects selected?
Council and staff have been discussing the expenditure
building blocks for the upcoming CIP for several months. Each biennium,
Council provides direction via its annual retreat discussions and various
management and budget policies. Adoption of comprehensive planning
documents, such as the Transportation Improvement Plan (TIP) adopted each year
give more specific project direction. In the case of the TIP the Council
actually approves the street and other related projects which are then simply
inserted into the capital budget document.