FY 2026 Adopted Budget - Flipbook - Page 106
an increase or decrease in maintenance costs or provide capacity for new future programs/projects.
The operating impact of capital projects is analyzed and taken into consideration during the CIP
prioritization process. Estimated new revenues and operational efficiency savings associated with
projects are also taken into consideration. The cost of operating new or expanded facilities or
infrastructure is included in the operating budget, beginning in the fiscal year the asset becomes
operational. Debt service payments on any debt issued for capital projects are also included in the
applicable operating budget. CIP items may be funded through debt financing or current revenues
while operating budget items are recurring in nature and should only be financed by recurring
revenues.
Figure 17:
City Budget Planning Process Hierarchy
Long-Term Planning
10-Year Comprehensive
Plan
Strategic Plan
Mid-Term Planning
Five-Year CIP
FY 2026 - 2030
Vision, Mission, Core
Values
Short-Term Planning
One-Year
Capital Budget
Short-Term Goals
Fulfilled by Annual
Operating Budget
Capital Projects Operating Budget Impact
The CIP budget accounts for financial resources related to the acquisition, construction or expansion
of major capital facilities and/or equipment. A capital project is generally non-recurring in nature
and may include the purchase of land, site development, engineering and design fees, construction,
and equipment. Capital projects produce assets with useful lives longer than one year.
Operating costs associated with implementation of projects are a fundamental part of the CIP. Once
the project is complete, the operating costs then become a recurring cost in the operating budget.
Capital projects can have a major impact on maintenance, utilities, other contractual services,
operating supplies costs. They can also have an impact on insurance and debt service. In recent
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