2004 Performance Based Budget - Laserfiche WebLink

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This policy has allowed the City to modify its previous practice of spending anticipated revenue for capital needs. This means, with a few exceptions, that we are spending money we know we have and not money we believe will be available at the time the expenditure occurs. (The exceptions to this policy involve COIT, EDIT and Local Roads and Streets funding which are appropriated for use in the same year these funds are received.) This change in philosophy led to difficult decisions in the first several years regarding citywide capital priorities. However, as a result of this capital spending policy, our financial stability has been further strengthened with the protection provided by the cash reserves that were established prior to appropriating dollars for capital expenditures. The City will continue its philosophy to use "pay as you go" funding whenever feasible and practical. The City's Capital Improvement Plan (CIP) is an ongoing, five year program for the planning and funding of capital improvements that meet one or more of the following criteria: (1) the asset has a life expectancy greater than one year; (2) costs incurred to acquire the asset (or group of assets) are in excess of $5,000; and/or (3) the expenditure is anon-recurring expense that does not appropriately fall within the operating budget. This third category includes the City's "Good Neighbor/Good Neighborhood" Program which covers a wide variety of expenditures including various community agencies' subsidies, neighborhood partnership centers, targeted neighborhood programs, curb and sidewalk improvement partnership programs, youth grants and various targeted safety programs initiated throughout the City. CAPITAL PLANS The pages that follow summarize and detail the City's 2004 Capital Budget that was approved by the Common Council in February 2004. This budget was developed by City Management and was based upon a great deal of feedback received from a variety of sources both internally and externally. Many factors were taken into account when determining which projects would be included in the current year's budget. The overriding theme utilized throughout the process was making sure that we were building a better South Bend by: Improving basic city services through investment in new equipment and facilities that will increase productivity, save in long-term costs and increase levels of service. Building better neighborhoods using a number of funding services, including the 2003 Capital Budget. This effort includes community partnerships and not just direct city services. Building a better local economy (attracting and/or retaining jobs and business) by providing infrastructure and facilities investment. Building a more attractive community by investing in efforts to improve community amenities and appearances. Building a healthier fiscal situation by using a "pay-as-you-go" approach where possible, protecting fund reserves and using an integrated approach to developing the Capital Budget. D-2