BY MARK J. CRAWFORD
The Starke City Commission has adopted a new ordinance creating a formal Capital Improvement Plan process intended to coordinate, prioritize and fund major city projects over a five‑year horizon.
The ordinance also adopts the 2026–2030 five‑year capital improvement program. The measure is intended to improve long‑range planning, including plans to fund improvements. It should also make project priorities and costs more transparent.
A capital improvement project is a planned undertaking that acquires, constructs or extends the useful life of capital assets (land, buildings, parks, streets, utilities, etc.). To qualify, a project must: have total cost greater than $100,000; have a useful life longer than 10 years; be a one‑time, non‑recurring outlay; and add to or enhance city assets.
Projects that would not qualify include community redevelopment area projects; routine fleet vehicle purchases (which are handled in the operating budget); maintenance supplies and routine repairs; ongoing debt service or lease/purchase costs; routine street resurfacing and recurring annual items.
Per the ordinance, the CIP is a comprehensive plan to identify and balance the capital needs of the community within the fiscal capabilities and limitations of the city budget. It is a significant element of the annual budget process. It can be updated, however, as emergencies arise or circumstances change.
Each project entry must include a brief scope, full project budget, prior appropriations or contributions, anticipated funding sources and amounts, projected timing and inception date, and estimated post‑construction operating costs and their funding sources. If a project is removed, delayed or substantially changed, the CIP must explain the reason.
Projects will be prioritized according to legal requirements and life‑safety hazards first, then city goals and policies, urgency, the city’s capacity to administer the project, outside agency involvement, and potential for future funding.
On or before Jan. 15 each year, the Department of Finance, Building and Zoning, and Public Works will meet with all city departments to develop a proposed CIP and budget. The city manager must submit the proposed CIP to the city commission by July 15. The commission will review and may amend the proposals as part of the annual budget process and must adopt the CIP and the CIP budget no later than Sept. 30 each year.
The commission may amend the CIP or appropriations during the fiscal year only by a formal enactment that explains why deferring the changeto the next budget year would harm the community’s interests. An ordinance approving a mid‑year CIP amendment requires a two‑thirds majority of commission members present.
By June 1 each year, the Finance Department must provide a progress report to the Commission showing status, delays or issues, and anticipated completion dates for all projects funded in the current CIP budget and previously funded projects. By Jan. 31 each year, the Finance Department and responsible departments must provide the commission a list of projects completed in the prior calendar year and ready for formal closure.
What’s in the plan?
Beginning with the current fiscal year, the ordinance includes a repair and replacement budget for each of the city’s utilities. There is a category for electric, gas, wastewater, and water distribution and treatment. Examples of projects include replacing transformers, electric poles, line extensions and replacements, equipment like valves, pumps and generators, etc. The repair and replacement budget amounts to $1.77 million this year, dropping gradually to $1.29 million in year five.
Utility revenue will fund most of the work. The practice of deferring maintenance and using the utility revenue to fund operations is a thing of the past.
There is also a parks and recreation section that includes $400,000 for renovations at the parks on Edwards Road and Thomas Street this year. That will continue every other year, while Wainwright Park receives $200,000 during the intervening years. However, this funding is from grants not yet obtained.
The final section of the CIP is the list of major water and wastewater capital improvement projects overseen by engineers at Woodward and Curran. Drinking water projects in design or preplanning include facility upgrades, the State Road 16 water extension, water main looping and system interconnections, and additional main replacement and rehabilitation. The design projects wrapping up this year are funded by a combination of state grants and loans. Projects in preplanning for 2027 and beyond have not been funded. The estimated costs of all projects is $18 million.
Similarly, there is a list of wastewater projects that are in or nearing the end of construction — including collection system rehabilitation and the wastewater treatment plant — as well as projects in design and preplanning. These include sewer line extension down State Road 16, future phases of the collection system replacement and lift station improvements. They total $57.5 million, but that includes the $25 million in construction funds from USDA for the completed wastewater plant, which was a combined grant and loan. Another $8 million combined grant and loan from the state is funding sewer rehab, and the county contributed $4 million in American Rescue Act funding for the wastewater lines on S.R. 16. Engineers are seeking funds for projects listed in 2027 and beyond.
