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THE OPERATOR’S ROLEIN CAPITAL IMPROVEMENT PLANNING

Presentation prepared for the Illinois Rural Water Association Northern ConferenceOctober 28-29, 2014Utica, IL

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CAPITAL IMPROVEMENT PLANWHAT IS IT?» Forecast of major capital improvements over a

pre-determined period of time» A CIP…• Estimates the capital cost of an improvement• Identifies funding sources for each improvement• Forecasts impacts on current and future budgets

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DEFINING ‘CAPITAL IMPROVEMENT’

» Improvement Projects• Preliminary Engineering Reports • Pilot Studies• Design Engineering• Construction

» Annual maintenance projects» Utility Rate Studies and Facility Master Plans» Equipment

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CAPITAL IMPROVEMENT PLANWHY INVEST TIME IN CREATING A CIP?» Help a community effectively allocate limited resources» Improve communication and cooperation » Provide continuity in financial decisions by linking long-

term planning to the programming and budgeting of major projects

» Stabilize local tax rates » Enable community to leverage state and federal grant-

in-aid programs» Establish an objective rating system

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CAPITAL IMPROVEMENT PLANTO SUM THINGS UP….

“Cities without CIP’s are at a disadvantage because there are no mechanisms in place to forecast all

potential capital projects simultaneously.”

-- Capital Budgeting and Finance, A guide to Local Governments (2009)

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CAPITAL IMPROVEMENT PLANNINGAN OVERVIEW OF THE PLANNING PROCESS

1. Analyze Community Facility Needs2. Prepare Project Descriptions3. Analyze Fiscal Capacity4. Set Project Priorities5. Develop and Adopt CIP6. Implementation and Annual Updates

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Operator’s Wish Lists

» Take 7-10 minutes to fill out wish list form for your communities capital needs.

» We’ll later go through the process of prioritizing the list

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CAPITAL IMPROVEMENT PLANFROM A CITY ADMINISTRATOR’S PERSPECTIVE…

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THE CITY OF ASBURYA CASE STUDY

» TIF and CIP

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THE CITY OF ASBURYA CASE STUDY

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THE BRAINSTORMING PHASE“WHERE DO I START?”

» Reach out to others» Maintain an annual list so items aren’t

forgotten» “What projects or equipment do we need?”

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THE BRAINSTORMING PHASEREMEMBER…

» These are often political decisions, so don’t be afraid to build support in advance• One-on-one meetings• Offer tours or ride-alongs

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BUILDING YOUR CASECREATE A CIP PRIORITIZATION MATRIX

MustHaves

QuickWins

Long term needs

Low-HangingFruit

High

Low

Hard Easy

Impact

Ease of Implementation

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BUILDING YOUR CASEOBTAIN BACKGROUND INFO» Obtain budgetary cost estimates» Obtain product literature

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BUILDING YOUR CASEGAIN SUPPORT» Work with your local engineer and planning

staff, if available» Continue to build support• Code requirements• Regulatory-driven• Identify hot-button issues that address individual

board member’s agendas, or that address public outcry

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SUBMITTING YOUR LISTBE PREPARED» Prioritize needs and establish timeline that is

required to implement» Provide brief description of needs sufficient to

allow a board or committee member to understand the project

» Justify expense» Identify potential funding sources

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PARTICIPATEBE PREPARED» Prioritize needs and establish timeline that is

required to implement» Provide brief description of needs sufficient to

allow a board or committee member to understand the project

» Justify expense» Identify potential funding sources

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PARTICIPATEGET INVOLVED IN THE PLANNING PROCESS» Request to be present at the CIP meetings» Ask for a vote» Stay involved, don’t just assume that there’s

support for your ideas» Offer to clarify if necessary» Offer to obtain additional information

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PARTICIPATEGET INVOLVED IN THE PLANNING PROCESS

Project Worksheet Development

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ASSET MANAGEMENTWHAT IS IT?

• Storm water Regulations

• DNR Wetlands Requirements

• EPA Regulations - CMOM

• Gov’t Reporting Requirements

• FEMA Floodplain Regulations

• Infrastructure History and Maintenance

• User Information

• Equipment Maintenance Tracking

• Work Order/Service Requests

• City Zoning & TIF Planning

• Urban Forestry Management

• Capital Improvement Planning

• Condition & Cost Analysis

• Permits/Building Inspections

• Hazardous Chemical Sites

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ASSET MANAGEMENTHow Do You Manage – Water System

Wells/Booster PumpWater StorageWater System

Main BreaksWater Metering

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ASSET MANAGEMENTHow Do You Manage – Sewer System

• WWTF and Lift Stations• Sewer System• Sewer Backups• Sewer Televising &

Smoke Testing• Sewer Repairs

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ASSET MANAGEMENTHow Do You Manage

» Sign Inventory• Sign Type/MUTCD Codes• Reflective Rating• Replacement Schedule

• Storm Sewer System• Street Maintenance• Sidewalk Maintenance• Tree Inventory

o Tree Species, Condition, Maintenance

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ASSET MANAGEMENTTHE BENEFITS» Identify age of equipment» Monitor when equipment needs maintenance» Keep track of the cost of replacing equipment» Show your Council, Board and Administrator

your needs – This process leads into the Capital Improvement Planning process

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QUESTIONS/COMMENTS?