Capital planning and budgeting11/28/2023 ![]() Provincial or Federal Government initiatives.Review of asset inventory (for replacement).Service development or enhancement objectives.Identification of these needs can arise from many different sources some examples are: User department managers are required to identify new capital needs for maintaining and enhancing their service objectives (see Capital Project sheet – Appendix 1). To be successful, teamwork is required from all department managers and directors. The capital budget preparation requires extensive communication and a coordinated effort with staff responsible for budget allocations. The preliminary review would identify all projected new capital projects and the related expenditure requirements and a review and evaluation of current ongoing projects to confirm or amend their future expenditure requirements. The initial phase of the budget cycle involves the collection of information on the future capital requirements of the City. Development of Capital Project Submissions In addition, the capital budget provides the basis for the implementation of the official plans, master plans and strategic plans, and also provides the financial mechanism to implement Council’s planning and fiscal policies. ![]() Through capital budgeting, the City can plan future operating budget expenditures, debt repayment and potential reserve fund needs in order to manage the financial position of the City over a five to ten year period. The capital budget is an important planning tool, it allows the City to provide for the necessary infrastructure to maintain or enhance future service levels. The capital budget will be reviewed by management and council to ensure the City has the financial capability to cover the costs over the long term, through its various sources of funding. This policy supports a disciplined approach that reflects the City’s strategic plan of reducing its debt servicing. The capital budget should also identify the future financial resources to be allocated from the operating (revenue fund) budget to use and maintain the capital asset. The budget provides for the planning of future financial resources required to finance capital expenditures. ![]() The capital budget is a multi-year financial plan, forecasted over a ten-year timeline. Capital Budget and Finance Policy – PDF 1.0 Purpose
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