CIPExerciseInstructions

InstructionsShort Capital Improvement Budget ExercisePA 615The City of Newhope has gone through a capital project ranking exercise and has also identified the funding sources for the projects.  Five projects were ranked # 1 who also have identified reliable funding sources over their estimated duration for completion.  Following is information regarding these projects:Megan’s PlaygroundThe total project CIP approved expenditure amount is $350,000 and will be considered as a General Fund project, Fund No. 1.  The funding source is Parks and Recreation Grants Fund, Fund # 22.  The grant came from the federal government.  The project will not begin construction until the 2020-21 fiscal year which will incur project costs of $225,000.  The remaining costs occur in 2021-22 when the project is completed. It is estimated that the annual operating cost impact to the General Fund will be $6,000 per year, beginning in 2022-23.Fire Station # 3 RenovationThe total project CIP approved expenditure amount is $825,000 and will be considered as a General Fund project, Fund No. 1.  The funding source is also the General Fund, Fund # 1.  Since this is a General fund cost with no other funding sources available, the costs are intended to be spread out as far as possible.  Due to the nature of the project renovations some spreading is realistic.  The project will begin in 2019-20 with an appropriation of $300,000.  The remaining $525,000 will be evenly distributed between fiscal years 2020-21, 2021-22, and 2022-23.  This project which includes installation of solar panels among other items is projected to save the General Fund $10,000 per year versus incurrence of additional annual operating costs.Police Sub-Station # 2 ConstructionThe total project CIP approved expenditure amount is $1,745,000 and will be considered as a General Fund project, Fund No. 1.  The funding source comes from two funds – The Community Policing Special Revenue Grants Fund, No. 23, and the General Obligation Bonds Capital Project Fund, No. 37.  The project will begin in 2019-20 with an appropriation of $200,000.  $1,275,000 will be spent in 2020-21 and $270,000 will be spent in 2021-22 when the project is completed.  The General Fund is estimated to spend an additional $50,000 per year in annual operating costs, beginning in 2021-22.  Note: due to the two funding sources, the excel spreadsheet has three rows allocated for this project (# 3).Electric Utility Sub-Station/Transformer # 6 ConstructionThe total project CIP approved expenditure amount is $8,850,000 and will be considered as an Electric Utility Capital Projects Fund expenditure, No. 39. The funding source is also Fund # 39.  For fiscal years 2019-20 and 2020-21 the estimated expenditures are $400,000 per year, mainly for soft costs related to planning, design, and regulatory fees.  $3,050,000 is estimated to be spent in 2021-22; $4,760,000 in 2022-23; and the remaining $240,000 in 2023-24 when the project is completed.  Annual operating expenses for the Electric Utility Enterprise Fund, Fund No. 19, are estimated at $225,000 per year, beginning in fiscal year 2023-24.Wastewater Treatment Plant UpgradesThe total project CIP approved expenditure amount is $4,260,000 and will be considered as Wastewater Treatment Capital Project Fund expenditure, No. 36. The funding source is a combination of Fund # 36 and the California Clean Water Special Revenue Grants Fund, No 28.  For fiscal years 2019-20 and 2020-21 the estimated expenditures are $200,000 per year, mainly for soft costs related to planning, design, and regulatory fees.  $3,260,000 is estimated to be spent in 2021-22 and the remaining $800,000 in 2022-23 when the project is completed.  Due to operating efficiencies related to the project, this project will save the Wastewater Treatment Enterprise Fund, $50,000 per year in operating costs beginning in fiscal year 2022-23. .  Note: due to the two funding sources, the excel spreadsheet has three rows allocated for this project (# 5).Fill in the attached spreadsheet to complete the financial portion of this CIP.  Please note that addition and subtraction formulas have already been built into the respective cells so please to do not hard entry data into the totals cells.  If you are comfortable with Excel and can redo formulas that is fine – but, if you are not proficient please do not mess with the totals cells.