Capital Planning Process
Westchester has had a formal five-year capital program planning process in place since the adoption of the County Charter in 1939.

Section 167 of the County Charter provides: "Not later than May 1st of each year the head of each department, institution, office and agency of the County government shall furnish to the Budget Director, the County Planning Board, and the Capital Projects Committee, detailed estimates of any capital projects which the head of such department, institution, office or agency believes should be undertaken within the next five fiscal years."

To this list of capital requirements the County Planning Board may add other capital projects which it believes should be undertaken within the next five years. Beginning in May, the Planning Board prepares recommendations regarding the physical planning aspects of each proposal however originated. Not later than the tenth day of September, the Planning Board submits to the County Executive, to the Budget Director and the Capital Projects Committee its recommendations.

A nine member Capital Projects Committee is responsible for reviewing departmental requests and proposing the Five Year Plan. It is uniquely suited for this task by virtue of its composition. The Chairman of the Committee is the County Executive. Representing the legislative branch of the County government are the Chairman of the Board of Legislators and the Chairman of the Committee on Budget and Appropriations. County fiscal and physical planning are represented, respectively, by the Budget Director and the Commissioner of Planning. Finally, the three operating departments most involved in Capital expenditures are represented by the Commissioner of Public Works, Commissioner of Environmental Facilities, and Commissioner of Parks, Recreation and Conservation. The Commissioner of Finance acts as financial advisor to the committee and the County Attorney acts as legal counsel.

In proposing a five year capital plan the Capital Projects Committee considers the feasibility of all proposed capital projects, evaluating their necessity, priority, location, cost and method of financing, availability of Federal and State Aid and the necessary investment in the County's infrastructure.

An executive committee has strengthened the review process by an in-depth analysis of the impact of the Capital Program on cash flow and bonding requirements, as well as the County's ability to finance, process, design and ultimately maintain projects. The committee meets regularly throughout the year to monitor project progress.

Upon completion and adoption, the five year Capital Program becomes a guiding framework for the Budget Director, the County Executive, the County Board of Legislators and the Commissioner of Finance with respect to bond sales, investment planning, and project planning by the Departments of Public Works and Environmental Facilities.

As a general rule, departments may request new projects in future years only on a "trade-off" basis, except in emergency instances. In this manner the planned level of cash flow/debt service/maintenance costs is not disrupted. Should particular projects experience delays -- in design, state certification, etc. -- other projects may be accelerated within the preset limits of appropriation and bonding authority, and cash flow estimates.

The County Executive is responsible for recommending the County Capital Budget for action by the Board of Legislators. He is assisted in this task by the capital plan, the report of the Planning Board on the physical planning aspects of each proposed capital project and the Budget Director's recommendations. The County Executive must submit a Capital Budget along with the report of the Capital Projects Committee to the County Board of Legislators not later than November 15.

The County Board of Legislators takes the final action of adopting the Capital Budget. Before acting the Board receives a report from its Committee on Budget and Appropriations which may include proposed changes in the budget. The Board also holds a public hearing (or hearings) on the estimates contained in the proposed County Budget supplemented by the Committee's memorandum of recommended changes.

The Board may amend the proposed County Budget as presented by the County Executive after complying with certain procedures of notice and a further hearing, and subject to certain limitations. The Board of Legislators must adopt the capital budget, as well as the operating budget, for the ensuing year no later than December twenty-seventh. The County Executive has item veto power over increases made by the Board. A two-thirds vote of all members of the Board is required to override.

Capital and Debt Policies

• Capital Projects as originally defined by the Westchester County Charter are expenditures for:
  
  - Any physical betterment or improvement or any preliminary studies and surveys relative thereto.
  
  - The acquisition of property of a permanent nature.
  
  - The purchase of equipment for any public improvement or betterment when first erected or acquired.

• Where capital expenditures are made for property they are for the purpose of acquiring parcels and buildings which may be designated "parkland", or parcels and buildings to be designated "general purpose."
  
  Properties designated "parkland" have been evaluated using the Parks and Open Space Policy guidelines developed and endorsed by the Planning and the Parks, Recreation and Conservation Boards.
  
  Properties designated as "general purposes" are not encumbered by state laws controlling uses for parkland. Such properties may include office buildings, land to serve as buffers to existing County facilities, etc.

• Priority is given to projects of a life-safety nature.
  
  
• Where there has been a major deterioration of an existing capital asset, a capital expenditure will be considered if it restores and/or increases the original net worth of the asset. This is distinguished from normal annual maintenance expenses (e.g., lawn maintenance, or pavement striping) or non-recurring repairs (e.g., roof patching), both of which should be provided for in current operating budgets, financed by current revenues.
  
  
• A bond act in excess of $10.0 million dollars for a project, with certain exceptions as defined by law, must be approved at public referendum pursuant to New York Local Finance Law Section 33.10.

• Projects financed by debt are to be amortized over their probable useful life as defined in state law. The County reserves the right to issue bonds for these projects for less than the allowed useful life.

• Capital project progress is monitored throughout the year and related cash flow requirements provide the Commissioner of Finance with the basic information for the timing of bond sales during the year. Other factors influencing the timing of these sales are general economic conditions, interest rates, the timing of other governmental borrowings (federal, state) etc.

• Where projects are less than $100,000 or where total costs to an existing project (cost revenues, scope changes, etc.) are $100,000 or less such requirements shall be funded by cash contributions from the operating budget.

• Cash contributions to specific Capital projects may exceed the $100,000 guidelines, as recommended by the County Executive and the Budget Director.

• Bond Anticipation Notes are to be used to provide funds for those capital projects which could not be sold during the fourth quarter of the previous year but which will require cash resources during the first three quarters of the year in which the notes are sold. These notes should have maturities of less than a year and should be converted to long term debt during the fourth quarter of the year in which they were sold.
  
  Bond Anticipation Notes may also be used to provide interim financing of capital projects when market conditions are not favorable for the issuance of long term bonds. In the event that Bond Anticipation Notes are issued for this purpose, provision should be made in the succeeding year's operating budget to paydown the equivalent first year's principal amortization which would have been paid if bonds had been issued instead of the Bond Anticipation Notes. The timing of this first payment may be changed pursuant to provisions of state law.

• Advance Planning Bonds may provide funds for planning costs associated with future capital projects. These bonds (or bond anticipation notes) may be used to finance the preparation of surveys, preliminary plans and detailed plans, specifications and estimates necessary for planning and design of a future capital improvement. This would enable the County to fully comply with the mandates of the State Environmental Quality Review Act. It conforms to required procedures that authorize financing for environmental reviews, project scoping, and other related planning expenses in one stage, followed by subsequent authorization of financing for full project costs in the second stage, after completion of such reviews. It permits advancement of funds from cash on hand to these projects in order to complete studies, etc., with the intention to subsequently amend the Act and provide for bonding to cover full project costs. Advance Planning Bonds would be retired in five years.

• Amortization payments, to the extent possible, are scheduled to be made in each fiscal year after the second payment of County real property taxes in order to minimize impact on cash flow.