Full Description

Good utility management means keeping the physical components of the system in good working order and having access to funds should improvement needs arise. To navigate the complexities of the financial planning process, it is essential that a utility have a capital improvement plan. This article describes such plans and outlines the vital components that make such plans a success. There are five components in a capital improvement plan: (1) the comprehensive general plan; (2) the master plan; (3) the master facilities plan, which encompasses water supply and facilities, sanitary sewer facilities, and storm drainage facilities; (4) the development impact fee calculation report; and (5) the capital financing plan. The author traces the history of development impact fees (or connection charges), from fairly arbitrary taxes and fees exacted from developers through legislation defining impact fees, and finally through litigation that clarifies the validity of impact fees and the division between replacement and expansion projects. Certain costs cannot legally or fairly be charged to new development. The capital financing plan identifies projects and specifies the amount to be financed and methods for financing each project. This must take into account water rates, special assessment districts, fees and charges, tax analysis, debt financing, and debt versus pay-as-you-go financing. Includes figure.

Product Details

Edition: Vol. 83 - No. 8 Published: 08/01/1991 Number of Pages: 3 File Size: 1 file , 1 MB