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					                                  COMMONWEALTH OF VIRGINIA

                               County of Gloucester
 William H. Whitley                          6467 Main Street                                Administration
County Administrator                           P.O. Box 329                                  (804) 693-4042
                                        Gloucester, Virginia 23061


                                    Interoffice Memorandum

         To:    All County Department Heads, Constitutional Officers, and Gloucester County
                School Board

         From: William H. Whitley, County Administrator

         Re:    Fiscal years 2006-2010 Capital Improvements Program

         Date: July 14, 2004


         I have attached the FY 2006-2010 Capital Improvements Plan (CIP) Packet for your use
         in submitting your individual CIP requests for the stated period. The County’s Capital
         Improvement Program (CIP) is a five-year plan, which addresses both the repair and
         replacement of existing infrastructure, as well as, the construction or acquisition of new
         facilities and equipment to accommodate current and future demands for service.

         The enclosed CIP Packet includes the following:

         ♦ FY 2006-2010 CIP Calendar (tentative).
         ♦ FY 2006-2010 Capital Improvements Request Form (reproducible or complete
           digitally by visiting the Gloucester County Finance Department website at
           http://www.gloucesterva.info/acct/Information-Forms/information.htm).
         ♦ “Frequently Asked Questions about the CIP” describing the purpose and guidelines
           for the CIP.

         In preparing your request, please remember the following:

         ♦ The minimum dollar threshold for a request is $50,000. Projects should
           generally have a cost in excess of $50,000. Any need less than this threshold should
           be requested via the FY 2006 Operating Budget to be submitted in January 2005.




                                      Land of the Life Worth Living
   ♦ Only those projects that have a service life estimated at five (5) years or
     more should be submitted for consideration in the CIP. Computer hardware,
     software, and similar products generally should be requested in the operating
     budget process.

   ♦ The completeness of the information submitted is critical to the review,
     planning, and successful funding of your projects.

   ♦ The Capital Improvements Plan should be considered by all as a serious
     planning document; and, therefore should not include surprising and
     unforeseen requests annually nor should it exclude the routine equipment
     requiring periodic replacement. All five years should be complete and
     include accurate planning of financial needs to assist the Board of Supervisors in
     the annual financial plan of the County.

Finally, please return your submissions to the Finance Department by the September 20,
2004 deadline. (Note: E-mailing the Capital Improvements Project Request Form in the
Excel format to Nickie Champion, Finance Department, would be greatly appreciated, but
hardcopy submissions are acceptable.) Projects submitted after this date will not be
included for consideration as the timely completion of this plan is critical to the FY 2006
Budget Process. Departments and agencies wishing to fund an item that has not been
approved through the CIP must be able to clearly demonstrate what has occurred to make
the item a funding priority over items that have been incorporated into the County’s
planning process.

I thank you for your efforts in contributing to the preparation of the FY 2006-2010 CIP;
and should you have questions concerning the enclosed information, please feel free to
contact Nickie C. Champion, Director of Financial Services at 693-6927.




Attachments
Cc: J. Scudder, A. Ambrose
                             County of Gloucester
                        Capital Improvement Plan (CIP)
                          Tentative Budget Calendar
                                 FY 2006-2010


July 14, 2004             Information packets to all Departments and Agencies
September 20, 2004        CIP requests due to Finance Department
September 20-30, 2004     CIP requests reviewed by Planning and compiled by Finance
October 1, 2004           CIP forwarded to Planning Commission for review
                          Planning Commission sets Public Hearing date
October 2004 –            Public Notices
November 2004
November 2004             CIP Public Hearing/Adoption - Planning Commission
November 2004             BOS sets Public Hearing date
November 2004             Public Notices
December 2004             CIP Public Hearing – Board of Supervisors
January 2005              Adoption of the CIP by the Board of Supervisors
                            CAPITAL IMPROVEMENTS PROJECT REQUEST FORM
                                             Gloucester County, Virginia                                               FY 2006 - FY 2010
Department                        Project Title



Project Description




Project Justification




Funding Source or Sources



Operating Budget Impact




                                  ESTIMATED                           RECOMMENDED FUTURE FUNDING                                            COSTS
                                    TOTAL                                                                                                  BEYOND
COST ELEMENTS                       COST                  FY'06            FY'07           FY'08           FY'09           FY'10             FY
Preliminary and Design            $       -
Land Acquisition                  $       -
Site Preparation                  $       -
Construction                      $       -
Landscaping                       $       -
Equipment and Furniture           $       -
Legal                             $       -
Other Cost Elements               $       -
                                  $       -
Contingencies           %         $       -

TOTAL COST                        $               -   $           -    $           -   $           -   $           -   $           -   $            -


                                  ESTIMATED          RECOMMENDED FUTURE FUNDING                                                             COSTS
                                    TOTAL                                                                                                  BEYOND
OPERATING COSTS                     COST      FY'06     FY'07     FY'08     FY'09     FY'10                                                  FY
Operating Costs                   $       -
Personnel Requirements            $       -
TOTAL OPERATING COSTS             $       - $       - $       - $       - $       - $       -                                          $            -


                                  ESTIMATED                                                                                                BEYOND
FUNDING SOURCES                     TOTAL                 FY'06            FY'07           FY'08           FY'09           FY'10             FY
General Fund                      $       -
State                             $       -
Federal                           $       -
Other                             $       -
Borrowing                         $       -

TOTAL FUNDING                     $               -   $           -    $           -   $           -   $           -   $           -   $            -

SUBMITTING AUTHORITY:                                                                  CONTACT
ADDRESS:                                                                               PERSON:

TELEPHONE NO.:                                                                         SIGNATURE:
DATE:
                  FREQUENTLY ASKED QUESTIONS ABOUT THE CIP

The following information is provided as an aid in participating in the Capital Improvements Program.

What is the Capital Improvements Program (CIP)?

       The County’s Capital Improvement Program (CIP) is a five-year plan, which addresses both the repair
       and replacement of existing infrastructure, as well as, the construction or acquisition of new facilities
       and equipment to accommodate current and future demands for service. A given capital project must
       have an estimated expected useful life of five or more years and have a cost of at least $50,000 to
       qualify for inclusion in the CIP. More specifically, the CIP is intended to accomplish the following
       objectives:

       ♦ To build the facilities required to support the County’s public service responsibilities.
       ♦ To improve financial planning by comparing needs with resources, estimating future bond issues
         and debt service, and identifying tax rate implications.
       ♦ To establish priorities among projects so that limited available funds are used to the best
         advantage.
       ♦ To plan public facility construction and major equipment purchases and coordinate timing with
         public needs.
       ♦ To support the physical development objectives contained in approved County plans.

What should be included in the CIP?

       The types of expenditures that will be included in the CIP must be distinguished from expenditures that
       will remain part of the operating budget. Generally, the classification of assets as capital versus
       operating can be determined by two criteria: cost and useful life.

       Cost: Only those projects that are major and exceed $50,000 should be included in the CIP.

       Useful Life: Only those projects that have a long service life estimated at five (5) years or
              more. Expenditure items that are made annually, such as salaries, office supplies, and service
              contracts are not appropriate to include in the capital program.

       To classify an item as either a capital or operating expenditure, the cost and useful life
       criteria should be applied simultaneously.

       Examples of projects typically included as Capital are:

       ♦ New, expanded, or renovated facilities that are relatively large and expensive such as a school,
         library, water lines, and large scale expenses such as the installation of new heating, ventilating, air
         conditioning systems or roof replacements, and the repaving of parking lots;

       ♦ Major equipment that is expensive and has a long useful life such as a dump truck;
      ♦ Purchase of equipment for any public improvements when first constructed or acquired, such as
        playground equipment for a new park or furniture/ appliances for a new or rehabilitated public
        facility;

      ♦ Replacement of items as a part of a larger project (e.g., rebuilding a park which includes a
        playground), then all such items which individually do not qualify as capital, would be considered as
        capital when presented as a single project;

      ♦ The cost of engineering or architectural studies and services related to a public improvement; and

      ♦ The acquisition of land for a community facility, such as a park or sewer line.

What should not be included in the CIP?

      Any equipment or materials less than $50,000 with a short useful life of five (5) years or less and
      considered to be a part of routine operating expenses to include personal computers, computer
      software, office furniture, and similar “soft” or non-durable purchases.

      Examples of items included as Operating are:

      ♦ Routine and preventative maintenance of facilities such as painting, slurry sealing of parking lots,
        spot patching of a roof that do not significantly upgrade the structure or increase its previously
        estimated useful life;

      ♦ Replacement of light poles or playground equipment except where the replacement items in the
        aggregate are sizeable (i.e. $50,000 or more).

What information is needed to submit a proposal for the CIP?

      Complete the FY 2006-2010 Capital Improvements Request Form (reproducible or complete digitally by
      visiting    the       Gloucester       County       Finance       Department    website         at
      http://www.gloucesterva.info/acct/Information-Forms/information.htm).

      Your request should be described as clearly and concisely as possible. It should explain how this
      request relates to existing services or facilities; and it should indicate if it is a new or replacement
      project. Projects involving land or building improvements should include a location map, and schematic
      plans of the proposal. It should also include a justification that describes what you expect to
      accomplish.

      Include information on the impact on operating costs/personnel requirements. Give a narrative
      explanation of the effect of the project on operating costs such as personnel; purchases on services,
      materials and supplies; equipment purchases; maintenance; and utilities. For personnel, indicate the
      estimated increase or decrease in employees and in salary or hourly wage expenses, including fringe
      benefits and general administrative costs. If the project is expected to generate revenue, estimate the
      amount.

      It is extremely important that you obtain accurate and complete cost estimates, and that you
      realistically project the impact of the request on operating and personnel requirements.
What process is followed in preparing and adopting the CIP?

      Once the Finance Department receives your request form(s), all of the requests will be reviewed by
      Planning staff and compiled. (Note: E-mailing the Capital Improvements Project Request
      Form in the Excel format to Nickie Champion, Finance Department, would be greatly
      appreciated, but hardcopy submissions are acceptable.) A draft CIP is then forwarded to the
      Planning Commission for public hearing. The Commission will make a recommendation to the Board of
      Supervisors who will then consider the CIP for adoption.

How is the CIP used once it is adopted?

      The CIP serves as a financial planning tool for the Board of Supervisors and as a starting point for the
      annual Capital Budget for each fiscal year. Generally, to be included in the Capital Budget the project
      or purchase must be included in the CIP. However, not all expenditures shown for the upcoming fiscal
      year will necessarily be funded in the Capital Budget. Both public and private decision-makers use the
      CIP to understand where public improvements will be made in the community.

For additional information or assistance in preparing your CIP requests, please contact the
Finance Department at 693-6927.