FY 25 Adopted Budget | Seite 194

Impact to the Operating Budget

Capital improvement projects can have corresponding impacts to the operating budget commensurate with the capital investment . Identifying the operating budget impacts is useful for decision-making because it provides a greater understanding of the financial obligations associated with the capital investment . New or expanded facilities may increase the annual costs needed to maintain the facility and desired level of service , which can contribute to the growth of annual operating budgets . Other new facilities , such as athletic fields , may generate offsetting revenues from program fees , which provide additional revenues to help support operating expenses related to the new facility .

Given the potential impact to future operating budgets , it is important to have reliable operating cost estimates for capital projects contained in the Town ’ s Capital Improvement Program . These operating costs can then be programmed into the operating budget during the budget development process , ensuring funding is available when a project becomes operational . Operating cost estimates are developed during the CIP development process and factor in variables such as project location , structural impacts , energy costs , staffing costs , maintenance , and / or future replacement . Each application includes a section where operating departments identify potential impacts to the operating budget . While these estimates are preliminary , the estimates still assist in the decision-making process to ensure proper consideration is given to the full cost of the project over the estimated life span . As a project moves from development to construction and then operation , these costs are reviewed to ensure future operating budgets include the necessary funding .

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