CAPITAL IMPROVEMENT PROGRAM
interior finishes; mechanical, electrical, and plumbing; accessibility and fire/life safety; health related issues; structural and mechanical systems; and site paving. FCAs assist with establishing replacement values and funding levels for recurring maintenance and rehabilitation to prevent the deterioration of City facilities. Staff utilize this report to assist in identifying preventative maintenance and rehabilitation improvement projects as part of the City’s five -year operating budget, Capital Improvement Program, and Strategic Business Plan. Capital Improvements Capital improvements are the building, upgrading, or replacement of City infrastructure, such as residential and arterial streets, bridges, traffic signals, storm drain systems and drainage channels, parks, and public service providing facilities. Infrastructure improvements are considered capital improvement projects when the expected life of the asset spans multiple years (in excess of two years) and expenditures are at least $50,000. These significant non-routine capital expenditures are accounted for as capital projects within the CIP special funds. Equipment, operating, and maintenance costs are identified for inclusion in future operating budgets. In contrast, routine capital purchases of new vehicles, computer hardware, and other equipment are largely accounted for in special funds, such as the Fleet Services and Strategic Technology Plan Funds. These assets are capitalized when the initial individual cost is $5,000 or more with an estimated useful life greater than two years.
The estimated useful lives (Table 1) applied to various types of assets are listed below.
Table 1 Estimated Useful Asset Life
Asset
Years
Infrastructures (e.g., roads, parks) Bridges (e.g., roadways, pedestrian)
17 - 35
62 40 15
Buildings and systems (e.g., community centers, electrical systems) Improvements other than buildings (e.g., water pumps) Automotive equipment (e.g., vehicles, motorcycles) Other miscellaneous assets (e.g., playground equipment)
3 to 10 3 to 10
CIP Projects Irvine places a high priority on infrastructure construction, rehabilitation, and maintenance. Projects are selected, planned, and designed emphasizing practices that prevent deterioration and costly remediation efforts. This strategy extends the useful life of infrastructure improvements and provides long-term savings.
The FY 2023-24 CIP Budget totals $37 million and in FY 2024-25 the CIP Budget totals $48 million. CIPs for both fiscal years total $85.3 million.
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FY 2023-25 Adopted Budget
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