Introduction - Capital Improvements Program

The City of Sugar Land's Capital Improvements Program (CIP) has been developed in order to further our commitment to the citizens
of Sugar Land as we strive to become "The City for Premier Living" by working to meet today's needs as well as those of the future.
From work on underground water and sewer lines to more visible projects such as street paving and extensions, the five-year CIP
addresses the needs of the City through responsible City government with a comprehensive and cost-effective approach.

What is a Capital Improvement?

A capital improvement is a major, non-routine expenditure for new construction, major equipment purchases, or improvements to existing

buildings, facilities, land, streets, storm sewers, and expansion of the City's park system.

What are the benefits of a Capital Improvement Program?

A long-term capital improvement program has many obvious benefits derived from its organized approach to planning projects. However,

these benefits cannot be attained from the production of this document alone. The support of the citizens of Sugar Land and the City's

commitment to carrying out these programs is required in order to realize the following benefits:

• Focuses attention of community goals and needs. Capital projects can be brought into line with the City's objectives, allowing
  projects to be prioritized based on need. Furthermore, the CIP can be used as an effective tool for achieving the goals set forth in the

City's Comprehensive Plan.

• Allows for an informed public. The CIP keeps the public informed about the future capital investment plans of the City and allows

them to play a more active role in the process.

• Encourages more efficient program administration. By enhancing the level of communication among the various departments
  implementing capital improvement projects, the City is able to better coordinate efforts and avoids potential conflicts. Work can
  be more effectively scheduled and available personnel and equipment can be better utilized when it is known in advance what,
  when, and where projects will be undertaken.
  
• Identifies the most economically sound means of funding projects. Through proper planning, the need for bond issues or other
  revenue production measures can be foreseen and action can be taken before the need becomes so critical that emergency
  financing measures are required. By fiscally constraining all five years of the CIP, the City is able to identify projects without a
  viable funding source and work to put in place sources of funding.
  
• Enhances the City's credit rating. Dramatic changes in the tax structure and bonded indebtedness may be avoided with proper
  planning which allows the City to minimize the impact of capital improvement projects. By keeping planned projects within the
  financial capabilities of the City, we are able to preserve our credit rating and make the City more attractive to business and
  industry.
  
• Helps to plan for future debt issues. The City last held a general obligation bond election in January 1999. At that time the
  voters approved a $34.5 million bond package. The City can use the five-year CIP to plan for future issuance of certificates of
  obligation.
  
• Defines the impact of master plans and studies. Based on history, a master plan or a study almost always results in a capital
  improvement. There are several master plans and studies that are currently underway. Until the plans and studies are completed
  and needs are further identified, the potential projects are not included in this year’s CIP. These master plans and studies will
  help identify projects for future year capital improvement plans.

CIP DEVELOPMENT PROCESS

The development of a capital improvement program is a continual process and, consequently, should be viewed as a working
document. Therefore, while this document covers a five-year planning perspective, it is revised every year in order to accommodate
new projects, reflect changes in ongoing projects, and extend the program an additional year. The first year of the plan is incorporated
into the annual budget as required by the City’s charter, and funds are appropriated through the budget adoption. Improvements
identified in subsequent years are approved only on a planning basis and do not receive any appropriation. Cost estimates for years
two through five are presented for planning purposes only, to be used in conjunction with the City’s long-range financial plan. The
CIP development process utilizes a “project-ready” approach whereby the scope and budget for a proposed improvement are clearly
defined prior to the appropriation of funds for construction.

Recognizing the importance of the Capital Improvement Program that allows the City of Sugar Land to continue to be a "great place
to live and work", the City considers input from citizens, the Planning and Zoning Commission, City Council and City staff members
in the Capital Improvement Program’s preparation. A project list is compiled, prioritized by year, and cost estimates assigned. City
Council is able to weigh citizen input with staff recommendations to ensure that both were equally considered. The Fiscal Services
Department also looks at the overall impact of projects; including the need to issue debt, potential impact on the tax rate, and
operations and maintenance impact to the City. The City Council, through budget workshops reviews the proposed CIP, with any
recommended changes incorporated into the final document. A final five-year CIP is then presented with the annual budget for
Council consideration and approval. Upon Council adoption, the five-year CIP document is reproduced and distributed for
implementation of the program.

2008-2012 CAPITAL IMPROVEMENT PROGRAM

The Five-Year Capital Improvement Program for 2008 to 2012 totals $177,302,000. How is the Capital Improvement Program
funded? Where is the funding used? Funding for CIP projects are derived from various sources including General Obligation Bonds,
Revenue Bonds, Certificates of Obligation, Water and Sewer Revenues, Connection Fees, General Revenues, Airport Revenues,
Property Tax for Drainage, Federal and State Highway Funds, and Grant Funds. Uses of the funding include Parks, Streets, Utility
and Municipal improvements to name a few.