FY 2011-12 Adopted Budget - City of Oviedo

FIVE YEAR CAPITAL IMPROVEMENTS PROGRAM
The Five Year Capital Improvements Program (CIP) is a multi-year plan of proposed capital
improvement projects. The CIP is produced as its own document, separate from the annual city operating
budget, but remains a companion document. Primarily, the CIP is a planning document to alert the City to
upcoming large financing requirements for needed pubic improvements and to develop financing
strategies for their accomplishment. The impact on operations is an important factor since increases to
operating costs must be covered by anticipated operating revenue. With the potential to significantly
impact the operating budget, both the CIP and the Annual Budget must be created in unison. Only those
projects scheduled during the first year of the CIP will be funded and adopted as part of the City’s Annual
Budget.
Capital Expenditures
A permanent addition to the City’s fixed assets that includes projects such as road improvements,
recreation and general facility improvements, replacement and acquisition of vehicles and
water/wastewater and stormwater drainage improvements. Capital expenditure projects generally have a
total value of at least $25,000 or more, have a minimum useful life of five years, and are included in a
separate 5 Year Capital Improvements Program (CIP).
The CIP serves as the companion to the Capital Improvements Element of the Comprehensive
Plan, which outlines capital expenditures improvements that are required to maintain adopted levels of
service and keep pace with community growth. The 5 Year CIP also is a primary tool for implementing
the City’s Strategic Priorities, particularly:
• Ensuring that new growth does not outstrip the City’s infrastructure capacity.
• Reducing existing infrastructure deficits.
Significant Assumptions
Projects included in the CIP are recommended for funding based on one or more of the following factors:
1. Involves necessary or planned maintenance, renovation or construction of an existing facility,
equipment or infrastructure.
2. Reflects a prior multi-year commitment previously approved by the City Council.
3. Enhances the use or appearance of an existing facility or City-maintained public area.
4. Included in a previous Master Plan or conceptual plan previously considered and endorsed or reviewed
by the City Council.
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