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Department it Capital Plan Itsp Ca  Form

Department it Capital Plan Itsp Ca Form

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Welcome. This presentation will explore the different methods municipalities can use to fund their capital budgets and how cities and towns can monitor levels of capital spending. Cities and towns should maintain a steady balance of capital investment in the annual budget. Local officials can measure investment levels by analyzing how maintaining debt service payments as a certain percentage of revenue impacts overall spending. A set percentage can be used as a benchmark for sustaining appropriate levels of capital investment. As debt is retired and debt service payments drop, municipalities should continue to fund capital projects to maintain a steady level of capital investment. Otherwise, as debt service obligations decrease, it creates room in the operating budget that can be filled by increased departmental spending. As this happens over time, a community risks losing investment capacity as the debt service budget shrinks relative to operating costs. If this continues, a community

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