Please answer from 1-5. All material is provided

THE BASICS OF PUBLIC BUDGETING AND FINANCIAL MANAGEMENT: A HANDB... Beltway Project: Complete the nal stage of the beltway around the city (3 miles) ($4.3 million). Storm Water Project: Construct two storm water management ponds ($1 million). Library Renovation: Update the entry to the building, remodel the circulation de partment and install a new book check- out system ($700,000). Downtown Garage: Construct a down- town parking garage for city employees and public use ($2.5 million). Downtown Artery: Landscaping the main downtown artery ($800,000). Background Information: The population of the city has grown an average of 4% a year for the last 5 years. The number of public service employ- ees has increased an average of 2% a year 1 minute left in chapter for the last 10 years. Ten new corporations have moved into the city over the last three years employ- ing 2770 new employees. Roughly half of them are located in the southern re- gion and the other half in the northern region. However, those in the southern region tend to be more dependent upon water given the nature of the business. The city has 98,000 residents and lies in between two large cities exceeding 1 million residents. The land selected for the construction of the ponds is located near a school and a public park. The average household income in the city is $60,000 per year. 4. You have been hired by the state of Alex- ander as a budget analyst to develop a capital 40% THE BASICS OF PUBLIC BUDGETING AND FINANCIAL MANAGEMENT: A HANDB... Capital Improvement Plan Short Term Note Capital Reserve Capital Reserve Fund Certificate of Participation Chapter 4 Homework Exercises Fixed Cost Fungibility Directions: Templates for questions 3, 4, and General Obligation Bonds (GO) 5 are found in the appendix. Please turn Implementation in your Excel worksheets and the MS Word Internal Revenue Service (IRS) file with the pasted worksheets to your in- Joint Finance structor. Line of Credit (LOC) Marginal Cost 1. Based on your research and the material Municipal Bond in this text, why would a city prefer to use a Needs Assessment municipal bond to finance a long term cap- ital project versus creating a new tax? Pay-as-you-go Pay-as-you-use 2. As the new chief of Jefferson City's Fire Planning Department, it is your job (budget analyst) to Post Evaluation write the justifications for the department's Project Evaluation proposed FY 2019 capital budget. Specific- Revenue Bonds ally, you must prepare justifications for the Recurring Cost 1 minute left in chapter 39%THE BASICS OF PUBLIC BUDGETING AND FINANCIAL MANAGEMENT: A HANDB... proposed new fire station near the new Lou- ject summary and a project description in your don Subdivision. Remember, you are trying justification along with the proposed capital to convince the city's elected officials that budget that is listed below. While there can be the construction of a new fire department legal reasons to build the station, remember: will allow your department to be more effi- economic growth, population growth, and cient and effective. Further, your justifica- other factors contribute to the need to build tions should show that you have considered the station. Use logic and creativity when the long range plans of the city's elected offi- writing your justifications (use paragraphs). cials to expand public services. Include your justifications within the pro- The items needed to construct the fire de- ject description (also include comments on partment are listed below the table. Land the individuals items in the budget). that could be used for the station was purchased in FY 2018. Although some of the items in the estimated and proposed Jefferson City Fire Department's FY 2019 Pro- budgets are for existing services, the major- posed Capital Budget ity of the items are for the new station. This Object Item Quantity FY 2018 FY 2019 is particularly true in FY 2019. Exhibit 4.1 Code FY 2017 Cost (Est.) Cost (Proposed) 3003 Computers $5,000.00 $5,000.00 serves as a point of departure. 3004 Security System 30,000.00 300 Copy Machine 4,000.00 4,000.00 Also, there is an example of a proposal in 3007 /4 Ton Truck - N 25,000.00 3008 Office Desks 1,500.00(10) 450.00 Appendix 4a and 4b. Take a look at them 3009 Pumper 95,000.00 3010 Tanker 125,000.00 for ideas. Your proposal should have: a pro- 1 minute left in chapter 39%THE BASICS OF PUBLIC BUDGETING AND FINANCIAL MANAGEMENT: A HANDB.., 301 1 New Fire Station 1 756,000.00 3012 Water Well 1 195,000.00 30l3 [and 4 acres 4,500. acre 9 000.00 TOTAL $15,000.00 $1,244,450.00 Items Needed for the Fire Station: Computers Ofce Desks Water Well Security System Pumper Fire Station Copy Machines Tanker Land 1/4 Ton Truck Note: A Tanker and Pumper are large re trucks. 3. Jeerson City has several capital projects that the mayor wants to complete over the next 2-3 years (FY 2018-2020). She has asked you, the city manager, to prioritize the eight projects and justify each placement based on some sort of rational methodology. Your rankings will determine where the pro- ject will be placed in the nal CIP which will be completed by another group. Hence, 1 minute left in chapter review, rank, and justify the list of projects on a scale of 1 to 8. The most important project should be listed rst (include the pro- jected cost with the name of the project). In addition to considering the information in the text, pay special attention to the list of questions in Table 4.1.1 have included some background information on the city that should be useful in your rankings and justi- cations. Your justications should be logic- ally creative. See Appendix 4C. Projects and Costs: - CBD Sewers: Add 3 miles of sewers in the central business district ($4.2 million). - NRA: Add 2 miles of sewer lines in the northern residential area ($3 million). - SRA: Build a new waste treatment lift station in the southern residential area ($1.8 million). 39% THE BASICS OF PUBLIC BUDGETING AND FINANCIAL MANAGEMENT: A HANDB... improvement plan. The state had an eco- nomic windfall with the collection of rev- enue from the gaming industry and wants to make good use of some of these funds to improve the states' infrastructure among other public institutions in the state. You have been given a budget of $600 million to develop a ve-year CIP. You cannot spend more than your total allotment under any circumstance. Here is some useful informa- tion that you should use in developing your FY 2018-2022 CIP. The state assumes that you will not be able to \"solve\" all of the prob lems in the state over a ve-year period, but they do expect a lot. First, complete the spreadsheet showing that you have spent no more than $600 mil- lion. Second, briey justify your spending patterns using the two headings: High Pri- ority Tasks and Low Priority Tasks. The pro- jects that you expect to complete should be 1 minute left in chapter justied in the High Priority Tasks section. The projects that you will not complete should be justied in the section Lower Priority Tasks. Read all of the information before you begin to work on the justications. The bullet points below provide all of the information that you need to in order to complete your CIP. See Appendix 4D for a copy of the spreadsheet. - The state's primary and secondary edu- cational facilities can essentially be split into two types: Functional and Dys- functional. Dysfunctional educational facilities are located primarily in the economically depressed Schaefer Delta. There are 45 schools in this area that are identical and each is in need of repair and renovations. Repair and renovation cost average $250,000.00 per school. School renovations should be completed 40% THE BASICS OF PUBLIC BUDGETING AND FINANCIAL MANAGEMENT: A HANDB... within the first three years of the CIP adelphia border to the Columbia border (equal amounts spent each year). The (85 miles that is currently two-lane). It Functional schools are completely up to is the main east-west corridor. Improve- date and require no repair or renova- ment to the highway system should reap tions. multiple economic benefits. Particularly . The state is plagued with a number of in the Delta Region. Should you decide to two lane highways that cross the state. expend fluids to complete the highway, The first highway is Highway 66 and it you must complete at least 95% of High- goes south of the Davisville state line way 87. It will cost $2 million per mile to through the Alexander Delta to Browns- complete the four-lane highway system ville (240 miles in length). It is the (Highway 66 and 87). main north-south route. Given the low The state has 87 county health depart- economic productivity in the state, it is ments. Thirty-six of these building are vital that this highway be completed at in need of repair. Three additional build- some point. Should you decide to ex- ings should be constructed adjacent to pend funds to complete Highway 66, existing health departments in Desoto, you must complete at least 90% of the Simms and Bolivar counties. The con- highway. struction estimates for each building is . Highway 87 is the second major highway $300,000.00. Repair costs are estimated in the state and it goes from the Ark- to cost a total of $10 million. Bolivar 1 minute left in chapter 40%THE BASICS OF PUBLIC BUDGETING AND FINANCIAL MANAGEMENT: A HANDB... County has the greatest need followed ing amounts per fiscal year: 2018, by Jackson and Desoto County respect- $115 million; 2019, $110 million; 2020, ively. $40 million; 2021, $165 million; and . The Supreme Court building is in need 2022, $180 million. Note: the preceding of repair. Given the nature of the repair, amounts exceed your total allotment. at least two fiscal years will be involved with the same amount spent each year. The table below shows the total costs of all The repairs cost $5 million. projects fully funded. However, please re- . For the sake of beautification, the state member that you are limited to $600 million in has also decided to build six new your CIP budget. Welcome Centers in the state. These fully functional centers will cost the Fully Funded Projects Cost Dysfunctional Schools $11,250,000 state $1,000,000.00 each. The Welcome HWY 66 480,000,000 HWY 87 170,000,000 Centers will be located at both ends of Welcome Centers 6,000,000 900,000 the border for Highway 66, Highway 87 New Health Departments Health Department Repair 10,000,000 and Interstate 55. With the new high- Supreme Court BDLG 5,000.000 Total $683,150,000 ways under construction, the Welcome Centers should improve the image of the 5. Optional In-class Exercise: Discussing CIP state. Items in the Jefferson City Council Meeting You can spend up to the follow- (1 hour exercise) 1 minute left in chapter 41%THE BASICS OF PUBLIC BUDGETING AND FINANCIAL MANAGEMENT: A HANDB... nancial Management. Athens, GA: The Univer- Appendix 4A sity of Georgia: Carl Vinson Institute of Gov- ernment. City of Alexandria, Virginia Vogt, A. John. 1996. "Budgeting Capital Outlays Health Department and Improvements." In Jack Rabin, W. Bart- ley Hildreth, and Gerald J. Miller's Budget- Alexandria Health Department's (AHD) mission ing: Formulation and Execution. Athens, GA: The is to protect and promote health and well-being University of Georgia: Carl Vinson Institute for all Alexandria communities and includes of Government. serving other Virginia residents and others as required by Virginia Department of Health and/ Vogt, A. John. 2004. Capital Budgeting and Finance: or federally funded services. AHD Public Health A Guide for Local Government. Washington, Specialty Clinics are essential elements of Alex- D.C.: ICMA. andria's safety net system. The Prenatal Clinic offers pregnancy and post-partum care and the Wang, Wen, & Hou, Yilin. 2009. "Pay-as-You- Nurse Case Management Program serves high- Go Financing and Capital Outlay Volatility: risk pregnant women, infants and children. Evidence from the states over two recent Preventive Clinic services and programs, unique economic cycles." Public Budgeting & Finance, to AHD, include the Nutrition/WIC Program, 29(4), 90-107. Immunization Clinic, Family Planning, Sexually Transmitted Infection Clinic, HIV/AIDS ser- vices, and the Tuberculosis Program. The Teen Wellness Center provides health services to 1 minute left in chapter 43%THE BASICS OF PUBLIC BUDGETING AND FINANCIAL MANAGEMENT: A HANDB... Alexandria youth. AHD's Environmental Health 73% (fiscal year). Division operates Food Safety, Vector Control and Reduce obesity among city residents from Aquatic Health programs. AHD's Public Health 16% in 2013-2014 to 13% (calendar year) Emergency Management helps Alexandria com- (reported using two years of data). munities prepare for, respond to and recover from public health emergencies and includes the . Reduce the teen pregnancy rate from 23 per Medical Reserve Corps, a program to recruit and 1,000 in 2014 to 10 (calendar year). retain volunteers. AHD's Epidemiology Program . Reduce the City's infant mortality rate from investigates, monitors, and offers guidance to 5.1 per 1,000 live births in 2014 to 3.1 (cal- prevent and control, communicable diseases; endar year). it also analyzes and interprets data to guide Key Department Indi- FY 2014 FY 2015 program and policy development. AHD's Com- cators Actual Percent of Health De Actual FY 2016 FY 2017 Actual Estimate Target partment programs munity Partnerships Program provides research, achieving an average rating from clients of at least an 8.5 100% 100% 100% policy development, and public health leadership out of 10 regarding 100% satisfaction with ser vices to Alexandria organizations and communities so received (1= Very Dis- satisfied; 10 =Very all Alexandrians have an equal opportunity for Satisfied) Total number of regis- tered client visits to the health. Health 65,823 65,800 63,664 65,812 66,500 Department Number of immuniza 15,930 10.234 11,380 Strategic Plan Indicators Supported by tions given to the public 14,618 12,200 Number of food facility inspections 2.675 2,490 2.257 2,300 2,650 Number of maternity this Department (prenatal/OB) clinic visits provided for unin- 5,097 5,436 5.288 5,267 5.267 sured/underinsured . Increase the percentage of residents who feel women they are in very good or excellent health from Revenue & Expenditure Summary: 1 minute left in chapter 43%THE BASICS OF PUBLIC BUDGETING AND FINANCIAL MANAGEMENT: A HANDB... FY 2016 FY 2017 FY 2018 Proposed $ Change %Change Actual Approved 2017-18 2017-18 the change in cost Expenditures by Character of continuing the Personnel $1,398,406 $1,834,336 $1,877,421 $43,085 $4,994,795 $3,500 2.3% current level of Non-Personne $4,808,296 $4,991,295 0.1% Capital Goods service into the next Outlay SO $46,457 SO ($46,457) -100% fiscal year and in- Interfund Transfer $26,81 $0 $0 0.0% Depreciation $4,484 SO 0.0% cludes increases Total $6,237,998 $6,872,088 $6,872,216 $128 0.0% and/or decreases in Expenditures by Fund General Fund Non-Fiscal Year $6,144,794 $6,825,631 $6,872,216 $46,585 salaries & benefits, 0.7% contracts, and mate Grants $88,720 0.0% rials Internal Service Fund $4,484 $46,457 ($46,457) -100% Leadership & Man- Funding Shifted 0.00 Total $6,237,988 $6,872,088 $6,872,216 $128 0.0% agement an Maternal Between Depart- Total Depart- ment FTEs 15.43 15.63 15.63 0.00 0.0% & Child Health Care ment Programs Services In FY 2017 $142,539 was add- There are no major changes to the Health ed to the Health Department's Department's FY 2018 budget. Personnel budget to supplant the lost Title X spending increases $43,085 or 2.3% due Family Planning Grant. The funds to merit pay increases and benefits. Non- were ini ally placed in the Leadership and Management personnel expenditures increase by $3,500. Program and were subsequently trans- Capital Goods Outlay decreases by $46,457 ferred to the Mater- nal & Child Health due to no planned vehicle replacement in FY Care Services Pro- gram. No service impact 2018 for the Health Department. TOTAL FY 2018 15.63 $6,872,216 PROPOSED ALL FUNDS PROGRAM Department Changes to City Services: BUDGET Source: Amended from a budget obtained from the following website: https://www.alexandriava.gov/uploadedFiles/budget/info/budget2018/FY%202018%20Pr Program Adjustments FTE oposed%20Operating%20Budget.pdf 15.63 Amount TOTAL FY 2017 APPROVED ALL $6,872,088 FUNDS BUDGET All Current Service 0.0 $128 Appendix 4B Adjustment Current Services adjustments reflect 1 minute left in chapter 43%THE BASICS OF PUBLIC BUDGETING AND FINANCIAL MANAGEMENT: A HANDB.. 1. As the new director of Jefferson City's Fire De- graphs, etc. partment, it is your job to improve the depart- ment's capital budget process for your office. Your Justifications: first job is to prepare justifications for the capital 1. Computers budget requests suggested by your predecessor. Below is the department Budget Request (Hint: Be 2. Security System creative in your justifications. Economic growth, 3. Copy Machines population growth, and the age of equipment 4. 3/4 Ton Truck are examples of reasons for expansion, improve- 5. Office Desk ment or replacing equipment). Remember, you 6. Pumper are trying to convince the city that these items 7. Tanker will allow your department to be more efficient and effective. Further, your justifications should 8. New Fire Station show that you have considered the long range 9. Water Well plans of the city's elected officials to expand 10. Land public services. The items of interest are listed below the table. The number of computers, copy machines and office desks are the same from the previous year as well as the value of the land to Appendix 4C acreage ratio. Exhibit 4.1 can serve as a point of departure for you, but remember, there are nu- merous ways to write justifications, so be pro- fessionally creative in your use of space, charts, 1 minute left in chapter 43%1 minute left in chapter 00 a A w 2 1 Rank Project Name Jefferson City Project Justifications Cost Justification Preparing a Capital Budget and a Capital Improvement Plan Appendix 4D State of Alexander Capital Improvement Plan FYs 2018-2022 # in Grade FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 TOTAL Dysfunctional Schools 45 240 HWY 66 miles 85 miles THE BASICS OF PUBLIC BUDGETING AND FINANCIAL MANAGEMENT: A HANDB... HWY 87 Welcome Centers New Health Depts. Health Depts Repair Supreme Court BDLG TOTAL - - List High Priority Tasks: List Lower Priority Tasks: 44%1 minute left in chapter Appendix 4E Capital Improvement Plan FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Total Public Works Engineering Parks and Recreation Police Department Housing & Community Development Total Public Works FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Summary of FYs Total Cost Road Resurfacing $7,000,000 $7,000,000 $7,000,000 $7,000,000 $7,000,000 $35,000,000 $35,000,000 Curb Ramps 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 15,000,000 15,000,000 Vehicles 2,500,000 2,500,000 O 5,000,000 5,000,000 Equipment 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 15,000,000 15,000,000 Information Technology c 10,000,000 10,000,000 10,000,000 30,000,000 30,000,000 Safety Enhancement 250,000 250,000 o 500,000 500,000 Contract Const 15,000,000 15,000,000 15,000,000 15,000,000 15,000,000 75,000,000 75,000,000 Land Acquisition 9,000,000 9,000,000 18,000,000 18,000,000 Street Lights O 1,000,000 O O 1,000,000 1,000,000 Expand Airways 5,000,000 5.000.000 Ol 10,000,000 10,000.000 Total $39,750,000 $44,750,000 $44,000,000 $38,000,000 $38,000,000 $204,500,000 $204,500,000 Engineering FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Summary of FYs Total Cost Street Repair $10,000,000 $10,000,000 $10,000,000 $10,000,000 $10,000,000 $50,000,000 $50,000,000 Replacement Bridge 25,000,000 25,000,000 25,000,000 Land Acquisition 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 10,000,000 10,000,000 Traffic Signals 700,000 700,000 700,000 700,000 700,000 3,500,000 3,500,000 Contract Construction 15,000,000 15,000,000 15,000,000 15,000,000 15,000,000 75,000,000 75,000,000 Pedestrian Routes O 2,000,000 2,000,000 4,000,000 4,000,000 THE BASICS OF PUBLIC BUDGETING AND FINANCIAL MANAGEMENT: A HANDB.. Bike Routes C 1,500,000 1,500,000 3,000,000 3,000,000 Vehicles 3,000,000 3,000,000 3.000.000 3,000.000 3,000,000 15,000.000 15,000.000 Total $55,700,000 $32, 700,000 $34,200,000 $32,200,000 $30, 700,000 $185,500,000 $185,500,000 Parks and Recreation FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Summary of FYs Total Cost Vehicles $5,000,000 $5,000,000 $5,000,000 $15,000,000 $15,000,000 Equipment 7,500,000 7,500,000 O 15,000,000 15,000,000 Zoo Maintenance 0 10,000,000 10,000,000 20,00 20,000,000 Museum Maintenance 10,000,000 10,000,000 10,000,000 Park Maintenance 0 25,000,000 25,000,000 25,000,000 44%1 minute left in chapter Total $17,500,000 $32,500,000 $15,000,000 $15,000,000 $5,000,000 $85,000,000 $85,000,000 Police Department FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Summary of FYs Total Cost Vehicles $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $25,000,000 $25,000,000 Equipment 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 15,000,000 15,000,000 New Station O 1,500,000 0 1,500,000 1,500,000 Main Office Renovations 10 0 0 2,500,000 2,500,000 5,000,000 5,000,000 Helicopter 2,500,000 o 2,500,000 2,500,000 Traffic Division 5,000,000 5,000,000 10.000,000 10,000,000 Total $8,000,000 $9,500,000 $15,500,000 $15,500,000 $10,500,000 $59,000,000 $59,000,000 Housing & Community Dev. FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Summary of FYs Total Cost Voc. & Rehab Center $10,000,000 SO SO $10,000,000 $10,000,000 Young Complex 8,000,000 8,000,000 8,000,000 24,000,000 24,000,000 Boone Gardens Complex O 7,500,000 7,500,000 15,000,000 15,000,000 Boone Gardens Pool O O 2,000,000 2,000,000 2,000,000 Anderson Complex Ol Ol 8,000,000 8,000,000 8.000,000 24.000.000 24.000,000 Total $10,000,000 $15,500,000 $23,500,000 $16,000,000 $10,000,000 $75,000,000 $75,000,000 THE BASICS OF PUBLIC BUDGETING AND FINANCIAL MANAGEMENT: A HANDB.. 44%