Budget for Website - Flipbook - Page 98
1.
New construction projects for additional facilities such as streets, sewers,
buildings, and parks. A major part of the program for rapidly developing
communities, in which the capital infrastructure is continually being expanded
into new areas as development occurs. Examples include extending streets and
sewers into new areas, constructing new branch libraries and recreation
facilities, and building new highways within the existing street system.
2.
Expansion projects for existing facilities such as streets, sewers, buildings,
and parks. This is a typical part of the program for developed communities, and
in the older sections of rapidly developing communities, where facilities have
been built in general, but have been outgrown by the population and traffic
growth. Four examples include widening streets, adding turn lanes and traffic
control devices, enlarging the capacity of a section of the existing sewer
system, and enlarging the main library.
3.
Maintenance, renovation, and replacement projects for existing facilities
such as streets, sewers, buildings, and parks. This is a major part of the
program for older, fully developed communities. Examples include repaving
streets, rebuilding deteriorated sewers, and renovating old buildings.
4.
Major equipment acquisitions, such as fire trucks and sewer vactors are
included in the capital improvements programs of small communities, because
of their cost, purchase frequency, and need for multi-year financial planning.
Components of Capital Improvements Planning
Communities plan for capital improvements on a multi-year basis, but do not project
operating revenues and expenses over the same period and do not correlate the two budgets
on a multi-year basis. This can result in one or two serious problems:
1.
The Capital Improvements Program absorbs revenues needed for
operating expenses: If the community's revenue sources are limited, and a
multi-year capital improvement program is financed by issuing bonds, then the
community can find itself without sufficient revenues to meet normal operating
expenses in addition to the debt payments as the years go by.
2.
Increasing operating expenses prevent the community from meeting the
financing needs of the Capital Improvements Program: If the community's
revenue sources are limited, and a multi-year capital improvement program is
planned on the basis of saving funds for future projects, the community can find
itself unable to set aside the capital reserves, as operating expenses demand
an increasing amount of the limited revenues as the years go by.
City of Plymouth 2026/27 Budget
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