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I I I I I I I I I I I I I I I The public services program. This is a long-range plan for all public services, estimating future needs for recreation, fire protection, police protection, and so on. It measures the objectives and needs for each city department, the standard of services desired, and the impact Of such services on the annual operating budget. ment program, preventing the peaks and valleys in a community's debt retirement program. Frequently, it allows a community to move gradually to a pay-as-you-go program of capital expenditure financing for a con- siderable portion of its improvements. The capital improvement program. This consists of a comprehensive list of projects and facilities that are or will be needed by the city in carrying out the anticipated program of public services. It is discussed further in the next subsection of this chapter. The long-term revenue program. This is a tentative revenue policy which develops long-term plans for financing public ser- vices and capital improvements. The capital budget. This summarizes, on the basis of a five- or six-year period, the capital or money requirements for the above described programs. It lists a priori- ty for each anticipated investment in community facilities and balances this with a consideration of the availability of necessary revenues. Although it is ultimately the council's responsi- bility, the long-term financial plan could be pre- pared and maintained by the city planning com- mission. In the absence of planning a commission, a council committee might be formed for the purpose. Once prepared, such a plan should be annually revised prior to the adoption of the annual budget. Capital Improvement Budgeting Capita[ budgeting, as previously defined, is a listing of needed capital improvements, giving their order of priority, and describing the means of financing them. Besides being one of the major tools of planning, a capital budget can provide some or all of the following advantages: '1. Under it, capital improvements are carried out in a logical and orderly manner, rather than on a haphazard basis, It helps preserve the community credit rating by preventing an over-extension of credit and maintaining at all times a credit reserve for emergencies. J In integrates the plans and projects of all municipal departments and agencies there- by eliminating conflicting and overlapping projects. By insuring prior consideration for all capital improvements, it helps guarantee ample time for detailed and careful plan- · ning of the actual program. The responsibility for capital budgeting usually should be entrusted to the chief administrative officer: .the clerk, clerk-administrator, or city manager. Aiding this person should be the council, a committee of the council, the city planning commission, and the treasurer or other chief fiscal officer. The following procedure is generally used in capital budgeting. A priority listing is made of anticipated capital improvements- usually those thought needed within 8 to 10 years. With this information in hand, a careful evaluation is made of all the listed projects, eliminating those which overlap or duplicate. Then, a priority' list of capital improvements is made on the basis of need, considering the community's present and future program of public services. It keeps the public informed about future needs and protects the council members from pressure groups seeking projects well down on the priority list. It will often reduce or stabilize the tax rate. These improvement projects are then woven into a six-year capital improvement program on the basis of the established priority. When viewed in the light of the community's financial situation, it may be found that some of the projects must be deferred beyond the six-year improvement period, and others deferred indefinitely~ Following this,' those projects to be recommended for the coming budget year must be selected. This, in effect,. It establishes an orderly capital improve- becomes the recommended program. -331 -