DEVELOPING CAPITAL INVESTMENT PLANS
-
Upload
lucius-mcfarland -
Category
Documents
-
view
41 -
download
0
description
Transcript of DEVELOPING CAPITAL INVESTMENT PLANS
Outline
Identify Services and Needs
Asset Inventory
Gap Analysis and Project Selection
Project Substantiation
Project Prioritization
Capital and O&M Cost Estimating
Draft Capital Plan and Plan Approval
What Is Capital Planning?
The process will help communities….
Understand and identify service related infrastructure needs…
Provide a clear vision for administration to follow
Allow greatest number of important needs to be met
Identify Services
Good quality of life for citizens
What services to deliver?
Is the service affordable?
Infrastructure required to deliver services?
Identify Services
Water and sewer delivery/pick-up,
Solid waste storage and pick-up,
Road maintenance,
Recreation program, etc…
Identify Needs
What’s more important…good roads or recreation facilities?
What infrastructure is a must for communities?
Is it important to link infrastructure needs to community service?
Identify Needs
Immediate Needs Grader engine blows
Predictable Growth Need Population results in lot development
Future Needs Community interest in a new facility Facility replacement requirements
Identify Services and Needs
Identify Existing Assets
Asset inventory should include:
Buildings & Contents
Mobile Equipment
Water/sewer/solid waste infrastructure
Roads/Bridges/Signs
Identify Existing Assets
Infrastructure Information Sources:
NORCIX Information (Bldg and ME)
Community Infrastructure Assessment
PW&S Water Systems Review
Inventory
Asset Useful Life
What is the remaining life of your:
arena? office building? mobile equipment ?
What affects the useful life of an asset?
Ensure Compatibility
Consider…
How all projects are connected to existing infrastructure.
The O&M implications of new infrastructure or betterments.
Ensure Compatibility
Consider affects of new infrastructure on old.
Will new water truck fit in garage?
Will granular stockpile be ready for lot development?
Can new pool use heating system from arena?
Do assets need to be disposed of?
Project Substantiation
How Much WhenOf your project……
Project Substantiation
Documenting the:
What Why
WhatWhat WhyWhy
Project Prioritization
What project outweighs another?
Health and Safety vs Community Development …balance
Water Plant or Youth Centre?
Road Development or Library?
Project Prioritization
Sample Criteria to assess projects…
Health and Sanitation
Wellness
Basic Safety Needs
Legal Requirements
Project Need/Urgency
Public SupportPrioritize Projects
Develop Capital Cost Estimates
Capital Infrastructure Cost Estimating
Several methodologies used Varying degrees of accuracy
Capital Equipment Cost Estimating
Use marketplace including factors such as:• Freight• Pre-delivery inspections• Custom Specifications, etc…
Develop Capital Cost Estimates
General rule:
As project approaches implementation the accuracy of the estimate increases.
Cost Estimating
A, B, C, D Class Cost Estimates Class D: Accuracy 30-35%
• Preliminary approval
Class C: Accuracy 20-25%• Planning, definition of project requirements, approval
Class B: Accuracy 10-20%• Approval,budgetary control, design cost control
Class A: Accuracy 5-20%• Evaluate tenders for cost control during construction
Cost Information Resources
Capital, O&M, and Energy
GNWT - MACA and PWS
Engineering - Consultant or through planning study
Power - NWT Power Corp.
Construction - Historic values, NWT Construction Association.
Mechanical servicing/inspections - Past invoices
Tools/supplies - Catalogues/Internet
Total Cost of Capital
Capital Initial purchase or construction cost
Operations and Maintenance Maintenance and repair (per yr) Staff Time (per yr) Fuel, Power costs (per yr)
Cost Estimates (Capital & O&M)
Example – Grader
Capital Cost = 250 K (Initial Purchase)
O&M Cost = 30 K (Annual)
Energy Cost (Fuel) = 10 K (Annual)6yrs of O&M = Initial Capital Cost
example
Project Substantiation
Documenting the:
What Why How MuchHow Much WhenOf your project……
Project Substantiation
Identify Funding Sources
New Deal provides opportunity for innovation.
Local property taxation revenue now an option.
Be aware of all of potential funding sources: Territorial Federal Municipal – FCM
Identify Funding Sources
Corporate Contributions
Green Project Grants
Identify Capital Reserve in Budget
Feasibility Check
Are projects achievable considering all factors?
Is their enough O&M funding to sustain the asset?
Capital Policy includes section on Feasibility.
Draft Capital Plan
Take the priority project list and fit into a plan.
May have to move/drop projects to future years.
Decisions will need to be made.
What needs to be done now and in the future?
Project Substantiation
Documenting the:
What Why How Much When
Of your project……
Project Substantiation
Plan Approval
Typically SAO presents to council for approval. Consultant and other staff may assist if
required.
Opportunity to discuss and address “minor” issues.
Next Steps - 20 Year Forecast
Capital Plans - focus on 1 to 5 years.
Larger plans will include future years (up to 20)
Maps out longer term plan for community.
Delayed projects can be kept on plan.