Long-Range Capital Financial Plan Report
The Office of the Chief Financial Officer has released its 2019 Long-Range Capital Financial Plan Report (attached). The report looks at current assets, their condition, future capital needs, and funding availability to develop a long-range plan to address all identified capital needs of the District in the shortest possible time period.
The District’s asset management system, also known as the Capital Asset Replacement Scheduling System (or CARSS), contains a detailed inventory of all District-owned assets, including all land, buildings, roads and streets, vehicles and equipment. Condition assessments on all assets are completed or are in progress, with full completion expected in the next 12 months. This system forms the basis to develop the District’s capital improvement plan as part of the budget process and to determine the cost of deferred maintenance for current assets.
It is now generally recognized that the District has the most complete capital asset management system of any city or state in the country! This system has been noted by the bond rating agencies as a key factor in the upgrades of the District’s bond ratings, including the Aaa rating from Moody’s.
- $11.8 billion of total capital needs identified, of which approximately $8.5 billion funds the highest priority needs in the FY 2020-2025 CIP.
- $3.3 billion of unfunded capital needs remain during the six-year CIP period, of which approximately $1 billion is deferred maintenance.
- Long-Range Capital Financial Plan shows that if District commits 15% of its general fund budget to capital (12% to support debt service on borrowings and an average of 3% on pay-as-you-go cash funding), with the remaining 85% going to operations and programs, all unmet capital needs can be funded by FY 2028, including all deferred maintenance.
- Significant borrowing capacity will become available after FY 2027, as bonds are paid off and the District’s economy continues to grow, that can be used to fund new capital projects needed to support continued growth in the city.
- 100% of District assets are inventoried in the Capital Asset Replacement Scheduling System (CARSS), and condition assessments on all assets are projected to be completed within 12 months.
- CARSS is now generally recognized as the most comprehensive and detailed capital asset management system of any city or state government in the nation.
- The lower cost of borrowing afforded the District by its bond ratings upgrades to Aaa/AA+/AA+ (Moody’s, S&P and Fitch, respectively) allows for greater amounts of borrowing to address capital needs.
- The District is in the best position of any state or local government in the country to address its infrastructure needs due its strong financial position, projected economic growth, high bond ratings, and fully funded pensions and OPEB trusts.
For more information, view the 2019 Long-Range Capital Financial Plan Report.
The full report can also be found at www.DCbonds.com.
- 2018 Long-Range Capital Financial Report
- 2017 Long-Range Capital Financial Report
- 2016 Long-Range Capital Financial Plan Report