CAPITAL IMPROVEMENT PROGRAM
INTRODUCTION
The Capital Improvement Program (CIP) is a long-range fiscal forecast, which identifiesmajor public improvements to the City’s infrastructure over the next five years. The CIP is important for planning and managing the City’s growth and development, as well as maintaining existing infrastructure.
The five-year Capital Improvement Program (CIP) forecasts infrastructure-related
expenditures based on anticipated residential, commercial and industrial development, as well as the current condition of Irvine’s infrastructure. CIP revenue projections are based on economic conditions, development estimates, special fund balances, and grants awarded to the City. The plan provides cost estimates for each project and identifies funding sources with consideration given to ongoing resources. The first two-years of the CIP will become the capital budget for which project funding will be authorized. The remaining three years of the CIP serve as a guide for future capital investments. Because priorities can change, projects included in outward planning years serve as a guide for future capital investments. Estimated funding sources for projects reflect the City’s conservative approach in estimating future revenues and proposed funding for future projects. For example, the City does not budget competitively sourced funding until it is awarded and may offset prior identified funds. As part of the biennial budget process (every two-years), the CIP is updated allowing the City to re- evaluate its priorities and needs each subsequent year based upon the most current revenue projections and project priorities. During the development of the CIP, capital projects affecting public health and safety, and/or legal mandates receive the highest priority. Emphasis is also placed on capital projects maintaining service levels or preventing deterioration of facilities. CIP projects are recommended by the departments; reviewed and evaluated by the Budget Office to ensure the City’s priorities, infrastructure needs, financial capacity, and impact the projects could have on the City’s operating budget are addressed; and funding is ultimately approved by the City Council as part of the budget. The CIP is also reviewed by the Transportation Commission and Planning Commission to ensure consistency with the City’s General Plan as well as the Finance Commission for fiscal oversight. The City places a high priority on infrastructure construction, rehabilitation, and maintenance efforts to ensure its streets, landscaping, and facilities are built, maintained, and rehabilitated according to best practices, while promoting cost efficiency and environmental sustainability. Emphasizing rehabilitation and effective maintenance practices minimizes deterioration and costly remediation efforts, thereby extending the useful life of infrastructure improvements and providing long-term savings. Facility Condition Assessments (FCAs) of City-owned and maintained community parks and centers are an essential part of facilities planning. Assessments evaluate the systems of a facility, including exterior and interior finishes; mechanical, electrical, and plumbing; accessibility and fire/life safety; health related issues; and site paving. In FY 18-19, the City programmed funding to assess all city facilities to be
FY 2019-21 Proposed Budget
365
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