Jacksonville's CIP Process
The steps in the CIP process generally mimic the steps followed in preparing the operating or annual budget. The process usually includes the following steps:
- Formulate, review, and approve goals and policies – Local governing boards usually hold retreats to review, update and approve policies and goals to guide capital budgeting.
- Identify needs – During the fall, department heads review programmed projects and assess current capital needs for the upcoming budget year. Capital projects are selected that require repair, maintenance or replacement that, if not addressed, will result in higher costs in future years and infrastructure investments required to meet growth demands.
- Determine costs – City staff work together to determine the full extent of project costs based on scope, timing, ongoing operational costs, land acquisition, etc. This process is applied to new projects and projects previously programmed in the Capital Plan to ensure the most accurate cost estimates are budgeted and any operational impacts are identified.
- Develop financing strategies – The Finance Department works with each department to determine the best method for financing proposed projects. The selected financing strategies seek to:
- Ensure reliability and stability of identified funding sources
- Evaluate affordability of the strategy
- Diversify funding strategies:
- Debt financing
- Facility fees
- User fees
- Prioritize – Once projects are selected, costs determined and a funding strategy is identified a Capital Projects Committee, consisting of city staff, meets with each department to review project forecasts and prioritize the request. The following criteria are considered in the prioritization of capital projects:
- Necessary to ensure the health, welfare or safety of the community
- Externally mandated
- Links to an adopted Master Plan
- Ties to Council goals
- Demanded due to growth or service improvement
- Age and condition of infrastructure
- Availability of funding
- Adopted Capital Improvement Plan – In the spring, the city manager presents a Proposed Capital Improvement Plan to the City Council. The projects are refined and reprioritized during City Council workshops and the formal plan is adopted.
- Ongoing Monitoring – Authorized capital projects are monitored to determine if timelines and milestones are being met and if financial transactions follow the adopted budget. Periodic status reports are provided to the City Council.