City of La Porte Operating Budgets Summary Report

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'1 I I I I I I I I I I I I I I I I I I Impact on City Operational Costs Another important item that is needed during this phase of information gathering is to record your estimate of the financial impact of the completed project on City operational costs. This monetary amount could be an increase or decrease in either revenues or expenses. For example, if the project will require the addition of personnel, the annual costs of adding the personnel should be recorded, or if the completion of the project will reduce electrical costs, the annual savings in utility expense should be noted. Departmental Rankings Once all projects have been identified, each department needs to perform an internal review of the projects they have requested and determine an internal ranking of the importance of the project to the City of La Porte. This ranking will . provide guidance to management as to your internal priorities. If you submit 20 different projects, they need to be ranked from 1 to 20, with 1 being the project that needs to be performed first. In establishing your ranking lists, you should recognize any legal requirements for a project to be preformed and rank those projects high. If a legal mandate requires us to perform a project or face stiff penalties, that project does not need to be near the end of your list. Attached as Exhibit A is a Capital improvement Program - Project Cost Estimate Form for use in providing estimates of the project costs. The project also captures the estimated term of the project and the departmental ranking. 6. Rating and Prioritizing Projects The purpose of rating projects is to provide a. method of determining which projects are most desirable or feasible to undertake. The objectives of the Rating process is: To measure the value of projects To compare diverse projects To rank large numbers of projects To provide consistency in project selections To prevent biases A successful rating process will produce a group of diverse projects that promote a balance between new construction and rehabilitation of old infrastructure. Will mix revenue generators and expenditure generators and will provide nicer neighborhoods and economic development. 7