2011 budget summary - St. Louis County

2011‐2015 CAPITAL IMPROVEMENT PROGRAMcomment on the concept design. However,if funding is available through outsidepartners who have a mutual interest in aproject (Missouri Department ofTransportation, municipalities, METRO,etc.), a project could be moved to a higherpriority status.For maintenance projects such as CRSConcrete Replacement or ARSInfrastructure projects, road ratings showwhich roads need to be included in the 5‐year plan. Roadways must be rated as“poor” (rating of 1‐3 on a scale of 10 where10 is best) to be considered in the capitalprogram. Roadways with a higherpavement condition rating are consideredfor preservation treatments as appropriateand as funding allows.Department of Public WorksFacility capital projects, managed by theDepartment of Public Works, typicallyaddress safety issues, equipment orstructural deterioration, equipmentupgrades, or space requirements.Potential projects are identified by facilityexperts, department directors, or tenants.The department evaluates options toaddress the issue and estimates the projectcost.Projects are not prioritized using a formalscoring system – they are ranked based onthe impact on safety and environmentalquality for visitors and employees. Thisincludes access to facilities for all andattention to deteriorating structuralelements. Deteriorated equipment andweatherproofing of facilities is the nextfocus as the failure of these items can causevaluable equipment, records, andworkspace to be compromised. Whenmultiple projects of similar priority arebeing compared and limited funding willnot allow all projects to move forward, thedepartment favors projects which affect thegreatest number of people and protect themost valuable resources.PROJECT FUNDINGCapital projects may be funded through annualappropriations, Master Lease financing, generalobligation bonds, certificates of participation,special obligation bonds, or other financing tools.The decision to use a specific method is madedepending upon the size, cost, and useful life of theproject, coupled with available funding and debtcapacity. Following is a description of availablefinancing options:Annual AppropriationProjects may be financed through anappropriation within the operating budgetof the user department. Examples in the2011 budget include $100,000 to replace aroof at Highway District 5 and $80,000 forPhase II of the fire alarm system upgrade inthe Administration Building. These projectsare recommended for funding in theGeneral Fund appropriation of theDepartment of Public Works.Master Lease ProgramThe Master Lease program began in 2006 tofund capital projects with a useful lifebetween three and ten years. The Countycontracts with a vendor to provide projectfinancing with annual principal and interestpayments budgeted in the operating budgetof the user department. Projects that haveused the Master Lease Program to dateinclude HVAC renovations, roofreplacements, remodeling, elevatorupgrade and repair, and informationtechnology systems.Certificates of Participation (COPs)COPs are financing arrangements where anindividual or entity purchases a share of thelease revenues of an agreement made bythe County, rather than the bond beingsecured by those revenues. The County- 254 -