Issue link: https://www.e-digitaleditions.com/i/850954
E n s u r i n g a S t r o n g F u t u r e 30 | P a g e The five year CIP budget is $52.8M. Funding for the CIP comes from Capital Replacement Funds (CRF) (approximately $43.2M), Capital Expansion Funds (CEF) (approximately $3M) and the District's Operating budget (approximately $6.6M). CRF is funded by existing customer rates and a portion of developer capacity fees; CRF may only be used to benefit existing customers. CEF is funded by the remaining portion of developer-paid capacity fees and can only be used to fund growth projects. Great care is taken to assure that ratepayers are not funding developer projects and vice versa. Park projects are funded by revenue generated from user fees of park facilities and events, grants and donations. The following shows each funding source for the five year CIP; the amounts are in thousands of dollars: In order to minimize rate increases, the proposed CIP budget is lower than hoped. During the budgeting process, multiple versions of the CIP were prepared and fed into the rate model. The final CIP is the result of many iterations and trade-offs to meet our budget objectives. Staff has therefore requested that if operations are more favorable than budget, they be afforded the opportunity to present additional CIP spending to the Board for approval. CIP spending is expected to remain within the approved five year budget, but there is flexibility on the timing and substitution of projects based on need. Engineering and Operations Staff will continually monitor the CIP and reprioritize, add or delete projects as needed over the five year period. The mandatory implementation of Governmental Accounting Standards Board, Statement 51 (GASB 51) requires that many previously capitalized expenditures be expensed on the District's Statement of Activities rather than shown as an asset on the Statement of Net Position and depreciated. Examples of this include plans and studies; preliminary phases of a construction must likewise be expensed. Predicting the split between capitalization and expensing for the budget is difficult. As mentioned above, approximately $46.2M of the CIP is expected to be capitalized and approximately $6.6M is expected to be expensed. Because projects will be reprioritized, added or delayed throughout the Plan, the ultimate split between capitalized and expensed may vary, but overall CIP spending will remain within budget. CIP for the Park is budgeted separately from the rest of the District. The projects are managed by Park staff and paid for entirely by Park revenues, reserves and debt. The Park's CIP for this Plan is $1.5M. Approximately $8M was borrowed in June 2017 to fund the construction/remodel of the General Store and Admin Building. The remaining $1.5M CIP is paid for by user fees and reserves. SEWER EXP $1,496 SEWER CEF $2,137 SEWER CRF $16,619 WATER EXP $4,760 WATER CEF $769 WATER CRF $23,255 RECYCLED EXP $380 RECYCLED CRF $3,273