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.
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.
For information on the 2020 Transportation Capital Improvement Projects and costs, click here.
For information on the 2020 Parks Capital Improvement Projects and costs, click here.
For information on the 2020 Surface Water Management Capital Improvement Projects and costs, click here.
How is the program funded?
Real Estate Excise Tax (REET) is a 1.78% 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 Transportation 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). Grant funding is sought when possible to pay for portions of projects. Most grant funding is highly competitive.
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 planning discussions for the upcoming CIP typically during the summer aligning with the start of the budget development process for the following year. Each year,
Council provides direction via its annual retreat discussions and various
management and budget policies. Adoption of comprehensive planning
documents, such as the annual Transportation Improvement Plan (TIP) update gives more specific project direction for a six-year planning horizon. In the case of the TIP the Council
actually approves the street and other related projects which are then implemented into the capital budget document.
Surface Water Management (SWM) projects are sourced from the Comprehensive Surface Water Management Plan.