Capital Improvement Program

Fiscal Year 2023

The Capital Improvement Program (CIP) is a five-year financial plan designed to create, support, maintain and finance Owatonna’s present and future infrastructure needs. The CIP outlines project costs, funding sources and estimated future operating costs associated with each project. The plan is designed to ensure that improvements will be made when and where they are needed and that the City will have the funds to pay for and maintain them. A well-planned CIP is integral to the City’s long-term financial sustainability.

Capital projects are defined as: (1) one-time projects; (2) non-routine maintenance related; (3) having assets of significant value; (4) costs over $5,000; (5) with an expected useful life of at least two years. The CIP is updated annually to ensure that it addresses new and changing priorities with the City. The CIP is a plan. As such, projects are subject to change based on new or shifting service needs, special financing opportunities, emergency needs or other directives established by the Mayor and Council. Because priorities can change, projects included in outward planning years are reviewed and updated annually during the budget process. Capital improvement projects may consist of street projects, fire and police facilities and equipment, wastewater infrastructure, storm water systems, parks and recreation facilities and equipment, government facilities and major system enhancements.

The City expends a great deal of effort reviewing and updating this plan to ensure not only that critical needs are being met, but also that the cost, scope and timing of projects are coordinated. The effective use of the CIP process provides for project identification, planning, evaluation, scope definition, design, public discussion, cost estimating, and financial planning. CIP projects are designed to prevent the deterioration of the City’s existing infrastructure and to prepare for anticipated future growth.

Expenditure Summary by Department

Funding Source Summary