Within a parks and recreation budget, you will typically have two very different types of budgets: capital and operating.
The two vary primarily in:
- Planning process – one requires significant lead time; the other is real-time
- Funding for projects rests in different places; long term funding for CIPs
- Overall size of project
Funding for CIPs may be paid for with bonds. Bonds are notes that will be paid back over time. Agencies will have a schedule of outstanding bond debts and a plan to pay them back. The schedule will include: type of bond, purpose, amount issued, amount due, maturity date, and amount outstanding.
Planning for CIPs include:
- listing the benefits to the community
- identifying funding sources
- determining services back to community
CIP plans should include:
- detailed scope of job
- identify benefits of the project
- project the life of the capital item
- determine funding sources
