Budget and Financial Planning

It is the policy of the Board of County Commissioners (BOCC) to adopt a five-year Capital Improvement Program (CIP), which shall be published on an annual basis. The first year of the annual CIP shall be appropriated as the County’s capital improvement budget for the upcoming fiscal year.

The CIP shall be reviewed, evaluated, prioritized, and updated on an annual basis in conjunction with the operating budget cycle. The CIP shall include a schedule of capital improvement projects by year, including the estimated total capital cost, estimated annual operating costs or savings, and anticipated funding source(s) for each project.

Definitions:

A capital improvement project is an investment of public and/or private funds of at least $100,000, which relates directly to the County’s strategic plan and has a useful life of at least five (5) years. Examples of a capital improvement project include, but are not limited to:

1. Land Acquisition.
2. New construction or acquisition of public buildings or structures.
3. Remodeling and/or additions to public buildings or structures.
4. Construction of new and replacement infrastructure projects (roads, storm drains, bridges, sewers, etc.).
5. Equipment, individual vehicles, and major computer/software systems.
6. Soft costs related to items 1 through 5 above, including legal costs, engineering costs, and architectural design costs.
7. Studies less than $100,000, which are preparatory to a capital improvement project of at least $100,000.

Responsibilities:

The BOCC is responsible for adopting a five-year CIP on an annual basis. The BOCC is also responsible for appropriating the first year of the five-year CIP on an annual basis.

The County Manager is responsible for preparing and submitting a preliminary five-year CIP to the BOCC before May 1st of each year as required by the Home Rule Charter for Johnson County. In addition, the County Manager is responsible for submitting a final recommendation for the proposed five-year CIP to the BOCC at least 45 days prior to the statutory deadline for adopting the annual budget.

The Director of Budget and Financial Planning is responsible for compiling agency and department capital improvement project requests, evaluating the impact of each request on the County’s debt structure and multi-year budget projection, and assisting the County Manager with the development of a proposed five-year CIP. In developing the proposed five-year CIP, the Director of Budget and Financial Planning will ensure that project costs are indexed for estimated inflation.

The Director of Planning is responsible for providing demographic research for use in developing a proposed five-year CIP. In addition, the Director of Planning shall review all CIP requests in regard to compatibility with the County’s Comprehensive Plan and the comprehensive plans of other jurisdictions.

Elected officials, agency directors, and department directors are responsible for preparing, submitting, explaining, and justifying capital improvement project requests for the annual CIP. Project requests will include a specific percentage of the project budget as a contingency amount, as defined by the County Manager in the financial procedures, to reduce the probability of cost overruns if the project is approved for funding.

Objectives:

A five-year CIP shall be adopted by the BOCC on an annual basis to accomplish the following objectives:

1. To reflect the County’s strategic planning regarding the future development of Johnson County and the County’s desired level of support for future development.
2. To identify all capital improvement project requests in the five-year period covered by the CIP.
3. To link plans for physical facilities to available financial resources.
4. To calculate the estimated financial impact of the five-year CIP on the County’s debt structure and multi-year budget projection, including the estimated annual operating costs for each project.
5. To illustrate and communicate the County’s proactive control over the management and issuance of new debt.
6. To encourage orderly growth by informing the private sector of public facility plans.
7. To facilitate intergovernmental coordination of capital planning in Johnson County.
8. To encourage citizen participation in the annual CIP process and citizen understanding of the County’s capital improvement needs.

Procedure 130.1 Introduction

1. The County Manager is responsible for appointing a Capital Improvement Program (CIP) Coordinator. The CIP Coordinator is responsible for coordinating the annual CIP process, including the development, distribution, and collection of forms used to submit capital improvement project requests.
2. The CIP Coordinator shall distribute capital improvement project request forms by March 1st of each year to agencies and departments. All agencies and departments shall submit capital improvement project requests according to the instructions and forms provided by the CIP Coordinator.
3. The Budget and Financial Planning Department shall maintain documentation for all capital improvement projects requested in the five-year CIP.
4. The annual CIP process will include a CIP Review Committee. This committee will be comprised of the following positions:
   1. County Manager or his/her designee(s)
   2. Director of Budget and Financial Planning or his/her designee(s)
   3. CIP Coordinator
   4. Director of Facilities
   5. Director of Planning or his/her designee(s)
   6. Director of Information Technology
   7. Director of Infrastructure
   8. Director of Wastewater
   9. At-large member from the Human Services area appointed by the County Manager or his/her designee (this position will rotate every two years)
   10. At-large member to represent the governing boards (Airport, Developmental Supports, Library, Mental Health, Park and Recreation); this position will be reviewed annually by the County Manager or his/her designee in conjunction with the Executive Directors of the governing boards
   11. At-large member to represent elected officials (District Attorney and Sheriff); this position will be reviewed annually by the County Manager or his/her designee in conjunction with the District Attorney and the Sheriff.

The CIP Review Committee is responsible for reviewing capital improvement project requests and submitting a recommended five-year CIP to the County Manager.

The CIP Review Committee will meet periodically to review project requests, evaluate project requests according to a number of criteria, and prepare a recommended five-year CIP.