City of La Porte Operating Budgets Summary Report

Browse Search

'I I I I I I I I I I I I I I I I I I I Five-Year Capital Improvement Program - A comprehensive schedule of planned capital improvement projects from all fund sources for studies, engineering, land acquisition, construction, renovation, and furnishings or equipment. Leverage - A method of measuring the total value of the project against the City funds expended. For example, if a project can be completed with private funds equaling City funds, the project will have a 1 to 1 leverage ratio. If the project can be funded with 80% grant and 20% City funds, the project will have a 4 to 1 leverage ratio. Renovation - Expenditures for major alterations to existing facilities which are not routine in nature shall be included in the capital improvement project, if the renovation will extend the useful life of the basic structure, or defer its replacement. . Studies - Expenditures for feasibility studies and other plans are included in the cost of the capital improvement project. 3. Funding Sources The following list explains potential funding sources. It is not intended to be all inclusive and creativity by the department is encouraged in identifying other sources. General Obligation Bonds - Bonded debt backed by the "full faith and credit" of the City's property tax base. General Obligation Bonds require the approval of the voters before their issuance. Revenue Bonds - Bonded debt backed by the future revenues to be generated by the enterprise operations of the City. This type of revenue is primarily utilized by the City's Utility Fund. Revenue Bonds also require voter approval. Operating Surpluses - Periodically, operating surpluses of the General and Utility Funds will be transferred to their respective Capital Improvement Fund. State & Federal Grants - Funds granted to the City by State or Federal agencies, either for a specific purpose or as part of an entitlement grant program. Public/Private Partnerships - Agreements with specific groups or organizations where the group or organization contributes funds to the City which is then combined with other City sources to provide funding for the project. 3