These procedures are intended to ensure that:
- A funding plan is in place for the maintenance of new assets
- Bureaus that require additional resources – particularly General Fund - for the maintenance of new assets have a degree of certainty during the planning stage that such resources will be allocated when assets come into service
- City Council is aware of the cumulative out-year maintenance cost impact of capital plans during the budget process
- City Council, to the greatest degree possible, prospectively approves increases to General Fund appropriation levels in the context of the budget process
- Costs funded with additional General Fund are high-confidence figures
Bureaus will include O&M estimates for each project or program in the Capital Improvement Plan submitted with the Requested Budget. In instances where a funding source for capital improvements has been budgeted but has not been allocated to specific projects, a lowconfidence O&M estimate should still be included based on the availability of funding.
Bureaus that will request that all or a portion of the O&M costs identified in the CIP be funded with additional General Fund appropriations should include a year-by-year estimate of those costs in the five-year financial plan submitted as part of the Requested Budget.
General Fund Requests
During budget development, bureaus should include a decision package for new General Fund for:
- Any projects that are anticipated to be contracted in the upcoming year for which new General Fund resources are expected for operations
- Any projects that were contracted in the current or prior year which were not anticipated during that year’s budget process
- Any projects that were completed in the current or prior year which were not included per the previous two bullets
Requests should include a one-time reduction for each project to reflect the estimated inservice date. In some cases, this will be a full year. In some cases an additional offset will be required during the following year’s budget process to account for longer project timelines. During the budget process, the final amount and funding source will be determined by City Council.
Budget Monitoring Processes
During budget monitoring processes, bureaus that have received General Fund allocations for operations and maintenance will identify projects that have gone into service and adjust one- time offsets appropriately.
Bureaus will include the most up-to-date cost estimate for operations and maintenance in construction or acquisitions ordinances and whether that amount has been included in a budget process or will be requested as part of the following budget process.
City Budget Office
Adopted by City Council August 2014