98 Chapter 4 Homework Exercises each problem is found in the appendix. capital Directions: Complete each of the assigned questions in Excel. A template 1. As the new chief of Mound Bayou's Fire Department, it is your job but budget. Specifically, you must prepare justifications for the proposed new free analyst) to write the justifications for the department's proposed FY 2015 the city's elected officials that the construction of a new fire department will station near the new Loudon Subdivision. Remember, you are trying to cott allow your department to be more efficient and effective. Further, your justifica tions should show that you have considered the long range plans of the cay's Land that could be used for the station was purchased in FY 2014. Althou elected officials to expand public services. some of the items in the estimated and proposed budgets are for existing ser vices, the majority of the items are for the new station. This is particularly the in FY 2015. Exhibit 4.1 serves as a point of departure. Also, there is an example of a proposal in Appendix 4a and 4b. Take a look at them for ideas. Your proposal should have a project summary and a project description in your justification along with the proposed capital budget that is listed below. While there can be legal reasons to build the station, remember: economic growth, population growth, and other factors contribute to the need to build the station. Use logic and creativity when writing your justifications (use paragraphs). Include your justifications within the project description (also in clude comments on the individuals items in the budget). Mound Bayou Fire Department's FY 2015 Proposed Capital Budget Quantity FY 2013 FY 2014 Cost (Est.) $5,000.00 5 1 2 Object Item Code 3003 Computers 3004 Security System 3005 Copy Machine 3007 14 Ton Truck 3008 Office Desks 3009 Pumper 3010 Tanker New Fire Station 3012 Water Well 3013 Land TOTAL 4,000.00 3 1 1,500.00(10) 3011 FY 2015 Cost (Proposed $5,000.00 30,000.00 4,000,00 25,000.00 450.00 95,000.00 125,000.00 756,000.00 195,000.00 9.000.00 $1.244.450.00 4 acres 4.500.00(acre $15.000.00 Preparing a Capital Budget and a Capital Improvement Plan 99 Items Needed for the Fire Station: Computers Security System Copy Machines 34 Ton Truck Office Desks Pumper Tanker Water Well Fire Station Land Note: A Tanker and Pumper are large fire trucks. 2 Mound Tom trucks also personnel budget, it is not nec follows essary to elaborate in detail when justifying items in a capital budget that is fol- lowing a CIP. However, thorough justification is needed if the plan is changed Exhibit 4.1 Simple Line Item Capital Budget for the Post Office Item in any way. DHE 10 1. d Object Code 3003 3004 3005 3006 3007 Computers Security System Copy Machine Mail Sorter 54 Ton Trucks Office Desks Quantity FY 2014 FY 2015 Cost (Est.) Cost proposed) $20,000.00 $30,000.00 500.00 34,000.00 4,000.00 4,000.00 3,000.00 6,000.00 75,000.00 120,000.00 1.500.00 3,000.00 $104,000.00 $197,000.00 2 8 10 3008 Total Brief Description: The Post Office is going through a normal update of its computer systems and vehicle fleet. The new security system will bring the Post Office into compli- ance with the last round of federal statutes. The new trucks will not only replace some of the aging fleet, but also provide for two new trucks to handle our ex- panding population in the southern region of the city. Justifications: 1. Installing and Implementing the New Security System: The old system is outdated and does not offer the level of security that we need for our new equipment. Further, over time, this new equipment is cost effective and more efficient. The monthly up keep cost is 60% less than the old system. Last, the system will bring the office into federal compliance. 2. New Computers: These computers will allow us to complete our overhaul of the computer network. Our workload capacity will increase 20%. Thus, we will be more efficient and effec- 3. Copy Machine: This purchase is the second and last phase of our office equipment update. 4. Trucks: These five trucks are the final vehicle purchases in tive. Proiect Summary The Peumansend Creek Regional Jail opened September 1. 1999 facility to house low-risk, non-violent inmates in a minimum security setting Proiect Description: During FY 1989, the Northern Virginia Chief Administrative Oil imum security facility to hold sentenced inmates from Alexandria and the Counties of ers and Sheriff's Task Force approved a feasibility study for constructing a regional Caroline, Fairfax, Arlington, Prince William and Loudoun In April 1991, the US. gress passed legislation that would provide for the transfer of 150 acres of land to A.P Hill to Caroline County for the regional jail. On March 10, 1992, City Council the City paid a total of $74,018 for its share of planning and one-time capital contribuis Proiect Costs to Date: Prior to the annual debt service payments that began in FY 19 proved Alexandria's participation in this regional jail. In 1994, the U.S. Congressament Chapter Four 108 Appendix 4A City of Alexandria, Virginia FY 2003 Budget Capital Improvement Program Peumansend Creek Regional Jail Priority Suhtasks Estimated Useful Life of Improvement 40 Years Propa Essential Capital Contribution OM ed the legislation to extend the date to begin construction of the regional jail from Apel 1995 to April 1997. Although Fairfax County decided not to participate in the region jail, the City of Richmond subsequently decided to join in this regional effort, The City entered into an agreement in September 1994 with five other Virginia localities for the construction and operation of a 336 bed regional jail to be located at Fort AP. H in Caroline County. The jail was constructed and is operated by the Peumansend Creek Regional Jail Authority, which was established in 1992. The City is a member of this Authority. The facility was built for approximately $27 million with 50 percent of the funding to be reimbursed by the Commonwealth, and 50 percent from the six localities Alexandria is allocated 50 beds, or approximately 15 percent of the 336 beds in the facility. The City's share of the capital cost of this facility is estimated at approximately $3.2 million in capital and debt service costs over the 20-year period of debt (1997-2018 The Authority issued revenue bonds in the Spring of 1997. The capital cost reflected in this project are the City's payments based on the actual del issuance in March 1997. For FY 2003, the City has budgeted a debt service payment di $182.220. costs for this regional facility. PEUMANSEND CREEK REGIONAL JAIL 109 Preparing a Capital Budget and a Capital Improvement Plan Estimated monton Operating Budget: In FY 2003, a total of $479.533 is included in the perating budget (Other Public Safety and Justice Activities) for the City's share of oper- Chances. Proiect From Prior Fiscal Years: $182.220 has been budgeted in FY 2003 for the City's annual debt service payment based on the actual bond issuance in March 1997. Unallocated FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 TOTAL Current FY+L FY2 182.220 177.421 oing budger cost . ject anast 13 Tusk Ticke EY 3 FY+4 EYES 174,953 169.905 164.755 159,503 1.157549 Contbutions 128,792 Offic- Cristesti 00 Total Project 128,792 0 0 0 0 0 0 182,220 177,421 174,953 169.905 164,755 159,503 1,157,549 0 0 0 0 0 0 182.220 177,421 174,953 169.905 164,755 159.503 1,157,549 Le Remue_0 Net City Share 128,792 es of Con- Fort ap Source: Amended from a budget obtained from the following website: bepullei.alexandria.va.us/city/budget_reports/budget2003/ciplcipbudgeto3.html. end- pril onal tics Hill eck 715 he 25. 30 tions for the capital budget requests suggested by your predecessor. Below is the dete department's capital budget process for your office. Your first job is to prepare justific tion growth, and the age of equipment are examples of reasons for expansion ment Budget Request (Hint: Be creative in your justifications. Economic growth popula improvement or replacing equipment). Remember, you are trying to convince the that these items will allow your department to be more efficient and effective. Further 1. As the new director of Mound Bayou's Fire Department, it is your job to improve the your justifications should show that you have considered the long range plans of the Chapter Four 110 Appendix 4B city's elected officials to expand public services. The items of interest are listed belle the table. The number of computers, copy machines and office desks are the same for the previous year as well as the value of the land to acreage ratio. Exhibit 4.1 can senes a point of departure for you, but remember, there are numerous ways to write justifica tions, so be professionally creative in your use of space, charts, graphs, ete. Justifications: 1. Computers 2. Security System 3. Copy Machines Ton Truck 5. Office Desk 6. Pumper 7. Tanker 8. New Fire Station 9. Water Well 10. Land 98 Chapter 4 Homework Exercises each problem is found in the appendix. capital Directions: Complete each of the assigned questions in Excel. A template 1. As the new chief of Mound Bayou's Fire Department, it is your job but budget. Specifically, you must prepare justifications for the proposed new free analyst) to write the justifications for the department's proposed FY 2015 the city's elected officials that the construction of a new fire department will station near the new Loudon Subdivision. Remember, you are trying to cott allow your department to be more efficient and effective. Further, your justifica tions should show that you have considered the long range plans of the cay's Land that could be used for the station was purchased in FY 2014. Althou elected officials to expand public services. some of the items in the estimated and proposed budgets are for existing ser vices, the majority of the items are for the new station. This is particularly the in FY 2015. Exhibit 4.1 serves as a point of departure. Also, there is an example of a proposal in Appendix 4a and 4b. Take a look at them for ideas. Your proposal should have a project summary and a project description in your justification along with the proposed capital budget that is listed below. While there can be legal reasons to build the station, remember: economic growth, population growth, and other factors contribute to the need to build the station. Use logic and creativity when writing your justifications (use paragraphs). Include your justifications within the project description (also in clude comments on the individuals items in the budget). Mound Bayou Fire Department's FY 2015 Proposed Capital Budget Quantity FY 2013 FY 2014 Cost (Est.) $5,000.00 5 1 2 Object Item Code 3003 Computers 3004 Security System 3005 Copy Machine 3007 14 Ton Truck 3008 Office Desks 3009 Pumper 3010 Tanker New Fire Station 3012 Water Well 3013 Land TOTAL 4,000.00 3 1 1,500.00(10) 3011 FY 2015 Cost (Proposed $5,000.00 30,000.00 4,000,00 25,000.00 450.00 95,000.00 125,000.00 756,000.00 195,000.00 9.000.00 $1.244.450.00 4 acres 4.500.00(acre $15.000.00 Preparing a Capital Budget and a Capital Improvement Plan 99 Items Needed for the Fire Station: Computers Security System Copy Machines 34 Ton Truck Office Desks Pumper Tanker Water Well Fire Station Land Note: A Tanker and Pumper are large fire trucks. 2 Mound Tom trucks also personnel budget, it is not nec follows essary to elaborate in detail when justifying items in a capital budget that is fol- lowing a CIP. However, thorough justification is needed if the plan is changed Exhibit 4.1 Simple Line Item Capital Budget for the Post Office Item in any way. DHE 10 1. d Object Code 3003 3004 3005 3006 3007 Computers Security System Copy Machine Mail Sorter 54 Ton Trucks Office Desks Quantity FY 2014 FY 2015 Cost (Est.) Cost proposed) $20,000.00 $30,000.00 500.00 34,000.00 4,000.00 4,000.00 3,000.00 6,000.00 75,000.00 120,000.00 1.500.00 3,000.00 $104,000.00 $197,000.00 2 8 10 3008 Total Brief Description: The Post Office is going through a normal update of its computer systems and vehicle fleet. The new security system will bring the Post Office into compli- ance with the last round of federal statutes. The new trucks will not only replace some of the aging fleet, but also provide for two new trucks to handle our ex- panding population in the southern region of the city. Justifications: 1. Installing and Implementing the New Security System: The old system is outdated and does not offer the level of security that we need for our new equipment. Further, over time, this new equipment is cost effective and more efficient. The monthly up keep cost is 60% less than the old system. Last, the system will bring the office into federal compliance. 2. New Computers: These computers will allow us to complete our overhaul of the computer network. Our workload capacity will increase 20%. Thus, we will be more efficient and effec- 3. Copy Machine: This purchase is the second and last phase of our office equipment update. 4. Trucks: These five trucks are the final vehicle purchases in tive. Proiect Summary The Peumansend Creek Regional Jail opened September 1. 1999 facility to house low-risk, non-violent inmates in a minimum security setting Proiect Description: During FY 1989, the Northern Virginia Chief Administrative Oil imum security facility to hold sentenced inmates from Alexandria and the Counties of ers and Sheriff's Task Force approved a feasibility study for constructing a regional Caroline, Fairfax, Arlington, Prince William and Loudoun In April 1991, the US. gress passed legislation that would provide for the transfer of 150 acres of land to A.P Hill to Caroline County for the regional jail. On March 10, 1992, City Council the City paid a total of $74,018 for its share of planning and one-time capital contribuis Proiect Costs to Date: Prior to the annual debt service payments that began in FY 19 proved Alexandria's participation in this regional jail. In 1994, the U.S. Congressament Chapter Four 108 Appendix 4A City of Alexandria, Virginia FY 2003 Budget Capital Improvement Program Peumansend Creek Regional Jail Priority Suhtasks Estimated Useful Life of Improvement 40 Years Propa Essential Capital Contribution OM ed the legislation to extend the date to begin construction of the regional jail from Apel 1995 to April 1997. Although Fairfax County decided not to participate in the region jail, the City of Richmond subsequently decided to join in this regional effort, The City entered into an agreement in September 1994 with five other Virginia localities for the construction and operation of a 336 bed regional jail to be located at Fort AP. H in Caroline County. The jail was constructed and is operated by the Peumansend Creek Regional Jail Authority, which was established in 1992. The City is a member of this Authority. The facility was built for approximately $27 million with 50 percent of the funding to be reimbursed by the Commonwealth, and 50 percent from the six localities Alexandria is allocated 50 beds, or approximately 15 percent of the 336 beds in the facility. The City's share of the capital cost of this facility is estimated at approximately $3.2 million in capital and debt service costs over the 20-year period of debt (1997-2018 The Authority issued revenue bonds in the Spring of 1997. The capital cost reflected in this project are the City's payments based on the actual del issuance in March 1997. For FY 2003, the City has budgeted a debt service payment di $182.220. costs for this regional facility. PEUMANSEND CREEK REGIONAL JAIL 109 Preparing a Capital Budget and a Capital Improvement Plan Estimated monton Operating Budget: In FY 2003, a total of $479.533 is included in the perating budget (Other Public Safety and Justice Activities) for the City's share of oper- Chances. Proiect From Prior Fiscal Years: $182.220 has been budgeted in FY 2003 for the City's annual debt service payment based on the actual bond issuance in March 1997. Unallocated FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 TOTAL Current FY+L FY2 182.220 177.421 oing budger cost . ject anast 13 Tusk Ticke EY 3 FY+4 EYES 174,953 169.905 164.755 159,503 1.157549 Contbutions 128,792 Offic- Cristesti 00 Total Project 128,792 0 0 0 0 0 0 182,220 177,421 174,953 169.905 164,755 159,503 1,157,549 0 0 0 0 0 0 182.220 177,421 174,953 169.905 164,755 159.503 1,157,549 Le Remue_0 Net City Share 128,792 es of Con- Fort ap Source: Amended from a budget obtained from the following website: bepullei.alexandria.va.us/city/budget_reports/budget2003/ciplcipbudgeto3.html. end- pril onal tics Hill eck 715 he 25. 30 tions for the capital budget requests suggested by your predecessor. Below is the dete department's capital budget process for your office. Your first job is to prepare justific tion growth, and the age of equipment are examples of reasons for expansion ment Budget Request (Hint: Be creative in your justifications. Economic growth popula improvement or replacing equipment). Remember, you are trying to convince the that these items will allow your department to be more efficient and effective. Further 1. As the new director of Mound Bayou's Fire Department, it is your job to improve the your justifications should show that you have considered the long range plans of the Chapter Four 110 Appendix 4B city's elected officials to expand public services. The items of interest are listed belle the table. The number of computers, copy machines and office desks are the same for the previous year as well as the value of the land to acreage ratio. Exhibit 4.1 can senes a point of departure for you, but remember, there are numerous ways to write justifica tions, so be professionally creative in your use of space, charts, graphs, ete. Justifications: 1. Computers 2. Security System 3. Copy Machines Ton Truck 5. Office Desk 6. Pumper 7. Tanker 8. New Fire Station 9. Water Well 10. Land