Capital Improvement Program (CIP)

“Capital planning and budgeting is central to economic development, transportation, communication, delivery of other essential services, and environmental management and quality of life. Much of what is accomplished by local govt’s depends on a sound long-term investment in infrastructure and equipment.” – from ICMA’s Capital Budgeting: A Guide for Local Governments

PRELIMINARY CAPITAL IMPROVEMENT PROGRAM

Balanced $130M Six-Year CIP (FY21–FY26)

$11.6M for Classroom Capacity for lease/rental costs associated with the School’s short-term space plan

  • Clark Road lease requires additional $1.1M annually to this account
  • Operating costs estimated at $200K need to be added to operating budget

Fire Station Renovations $20.2M – Debt exclusion recommended to address study recommendations

  • Environmental zoning to reduce exposure to contaminants
  • Accommodations for a growing female workforce

Compressed CIP limits ability to meet cost escalation seen in annual CIP items (roads, parks, forestry)

  • Limited funding for new initiatives

MAJOR PROJECTS

Pierce School- Partnership with MSBA Construction budget TBD

Larz Anderson - $15M (FY21-25, Future Years)

Classroom Capacity - $11.6M (FY21-FY26)

Hammond/Woodland Traffic Signal / Road Diet – $1.5M (FY25)

Skyline Park $1.98M (FY24-25)

Amory tennis courts, Parking and Halls Pond $2M (FY25)

Fire Station Renovations - $20.2M (FY21) debt exclusion

Public Building Fire Alarm upgrades - $1.7M (FY19-24)

Fire Department’s Engine #1 Replacement - $800K (FY23)

CONTINUED MAJOR INVESTMENT

Parks & Open Space - $4.4M (non-project specific investment)

Street & Sidewalk Rehab - $25M

Town/School Masonry/Fenestration - $6.4M (reflects savings + reset schedule)

Town/School Roofs - $1.6M (reflects savings + reset schedule)

Water & Sewer Infrastructure - $8.2M -- enterprise fund

Fire Apparatus - $500K

Information Technology - $1.1M

Tree Replacement - $1.9M

Energy Conservation - $1.4M

Articulates CIP 7.5% funding policy

CIP FINANCING – FREE CASH

The FY21-FY26 CIP follows the Town’s Free Cash Policy:

  1. Budget Reserve – ¼ of the annual budget reserve fund (“reserve fund”)
  2. Unreserved Fund Balance / Stabilization Fund – maintain at minimum of 10% of revenue
  3. Liability / Catastrophe Fund – maintain at 1% of net revenue
  4. CIP – bring CIP funding up to 7.5% from the 6% CIP Policy
  5. Affordable Housing Trust Fund – deposit if the fund balance is less than $5M
  6. Special Use – augment funds related to fringe benefits, go toward unfunded employee benefit liabilities, and other one-time uses, including add’l funding for the CIP and AHTF

6% POLICY SPLIT – DEBT-FINANCED vs “PAY-AS-YOU-GO”