April 1994 Capital Improvement Program City of Westminster
Carroll County MD
Introduction
In October 1991, the Mayor and Common Council of the City of
Westminster adopted an ordinance adding a new Chapter 20, entitled "Fiscal
Matters" to the Westminster City Code. The ordinance provides that the
fiscal year of the City shall commence July 1 of each year and end on June 30
in the following year. As part of the City's annual budget process, the Mayor
in coordination with the Directors of the City's various Departments shall
prepare a six-year program for capital improvements, which is to be approved by
the Common Council on or about the date of budget approval. Following adoption
of the Capital Improvements Program, no capital improvement project may be
added to the program, unless a public hearing is held and, thereafter, a
revised program is adopted by resolution of the Mayor and Common Council.
Statement of Objectives
The Capital Improvements Program is an important way of
putting the City's comprehensive plan into action. It is the City's objective
to coordinate the Capital Improvements Program with the City's comprehensive
plan and development regulations such as zoning and subdivision ordinances. The
type, scale, timing, and location of new development will affect the public
costs of providing facilities and services. The Capital Improvements Program
can save the City money by coordinating capital projects and through advance
acquisition of land for future facilities. Public facilities also play an
important role in determining when, where, and how much private sector
development will occur.
The Capital Improvements Program can be thought of as the
public sector's development plan, which will show
1) What capital projects and facilities will be built,
repaired, replaced, or purchased;
2) Where these projects are located; and 3) when the
projects are scheduled to take place.
Currently there is a growing awareness of the value of
budgeting for public facilities. This is especially true since the end of
federal revenue sharing in 1987 and the recent reductions in funding from the
State of Maryland. The decline in intergovernmental transfers has placed
greater fiscal pressure on the City of Westminster to fund capital improvements
with local revenue. To the greatest extent possible, the City has tried to
minimize debt financing in favor of pay-as-you-go funding of capital projects.
If Westminster must borrow funds for capital improvements, bond-rating agencies
have urged the City to adopt a Capital Improvements Program, which may lower
finance charges paid by the City.
Capital Improvements Program Schedule
By January 15th of each year, the Mayor shall furnish the
Planning and Zoning Commission a copy of the proposed six-year Capital
Improvements Program (CIP) and capital budget for its review and recommendation
to the Common Council. After affording the public, an opportunity to express
views on the proposed CIP, the Planning and Zoning Commission shall submit its
recommendations to the Common Council on or before March 1st of each year.
On or before May 1st of each year, the Mayor and Common
Council shall hold a public hearing on the proposed capital budget and six-year
CIP. The Common Council may increase or decrease any appropriation item in the
capital budget. The capital budget, as amended, shall be approved and funds
appropriated not later than May 30th of the year in which it is
submitted. Prior to June 1st of each year, the Common Council shall make tax
levies deemed necessary to finance the capital budget.
General Information
Historical Capital Outlays
Capital outlay appropriations for the last six years are
shown in Table 1. The historical data indicate a fairly consistent spending
pattern with the exception of the $4.1 million appropriation from the City's
sewer fund in FY90-91. A notable increase is also evident in the appropriations
for General Government, which increased from $9,000 in FY89-90 to $863,000 in
FY91-92, and then nearly doubled again in FY92-93 to $1,693,000. This increase
in FY92-93 is attributed towards municipal building renovations, particularly
the renovations for the building to be used by the Westminster Police
Department. Historical capital expenditures will be used as a guideline in
determining the reasonableness of projected capital funding levels.
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