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City of New Orleans Capital Budget Description

Each year the City Planning Commission creates a 5-year Capital Improvement Program to rebuild and maintain the city’s infrastructure - including public buildings and streets. The 5-Year Capital Program and a budget for the first year of the program must be approved by the Mayor and passed by the Council no later than December 1, before adoption of the annual operating budget. The capital program and budget must show the amount and sources of money for each separate project. The amounts budgeted constitute appropriations from the funds indicated when they become available.

Revenues

The scope of the Capital Improvement Program is determined by the amount of funds available. In the past, the City has received revenue from six main sources.

General Obligation Bonds
The major source of non-dedicated revenue is general obligation bonds paid by the debt service portion of the property tax millage. Voters must approve both the amount of the bonds sold and the projects that will be funded. The most recent bond election occurred in 1995 when voters approved $147.4 million in general obligation bonds. A $150 million bond proposal will be on the November 7, 2000 ballot.

Limited Tax Bonds
Another source of revenue is limited tax bonds, which provided $15.8 million to the capital program approved in 1995. These bonds are different from general obligation bonds because they are redeemed by revenue from a specific property tax levied rather than being backed by the full faith and credit of the city.

Miscellaneous Capital Fund
A minor source of capital funds is the sale of surplus city-owned property. This Miscellaneous Capital Fund (MCF) typically averages $400,000 per year.

Airport Related Funds
The largest source of dedicated revenue is funding for the Aviation Board. Locally generated revenue is combined with federal funding to provide capital improvements specifically for the airport.

Community Development Funds
The federal government provides support in the form of Community Development Funds, which are dedicated specifically for community, housing, and public works projects.

Expenditures

The City Charter prohibits long term debt financing for any capital project that has an expected life of less than ten years. In order to determine capital expenditures, the City Planning Commission prioritizes capital projects submitted by City departments based on criteria emphasizing life, health, and safety. The capital projects considered the highest priority by the Commission are then presented to the Mayor and City Council as the 5-Year Capital Program.

Source:

City of New Orleans 2000-2004 Capital Improvement Program

Last revised by BGR August 2000