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Office of the Chief Financial Officer Long-Range Capital Financial Plan Report

Summary of District of Columbia
Long-Range Capital Financial Plan Report
 
Background
The Office of the Chief Financial Officer has released its 2017 Long-Range Capital Financial Plan Report. The study looks at current assets, their condition, future capital needs, and funding availability to develop a long-range plan to address all needs.
 
More than 96% of District-owned assets are now captured in its new asset management database, the Capital Asset Replacement Scheduling System (CARSS), including all land, buildings, roads and streets, and vehicles. The system contains full condition assessments on all city-owned vehicles and similar condition assessments are being performed on all other District assets. 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.
 
The District now has the most complete capital asset system of any city or state in the country.
 
Results of the Long-Range Capital Financing Report
The "District of Columbia Long-Range Capital Financial Plan Report" identifies the cost of the city's unfunded capital infrastructure needs over the current 6-year capital improvement plan period, as well as highlighting the financial challenges poses by WMATA and opportunities for public-private partnerships to address some of the District's infrastructure needs.
 
The current six-year Capital Improvement Program (CIP) funds approximately $6.7 billion of capital needs, but it also shows that there is some $4.2 billion in additional unfunded capital needs ($1.9 billion in deferred maintenance and $2.3 billion in unfunded new projects).
 
Key Highlights include:
  • Recently passed legislation requiring more paygo (cash) funding of projects in the future would significantly increase funding priorities to address the $1.9 billion in deferred maintenance.
  • Significant borrowing capacity is available as bonds are paid off and the District grows that should be directed to fund the $2.3 billion in new unfunded projects.
  • By adhering to paygo legislation and using the increased debt capacity up to the 12% debt cap limit (12% of expenditure for debt service) the $4.2 billion in unfunded capital needs can be addressed by 2028 and District assets can achieve a state of good repair.
  • The District alone has $2.3 billion in unfunded costs to address WMATA's (Metro') $15.5 billion in ten-year capital needs to achieve a state of good repair. Without a long-term regional dedicated funding source, the District and all other compact members will be unable to address these costs.
  • Public-Private Partnerships (P3) projects that might be jointly funded with the private sector as identified by the Mayor's P3 office total $1 billion to $1.5 billion.
  • The District is in best position of any state or local government to address these needs due to its strong financial position, strong growth in the economy, and fully-funded pensions.
 
For more information, view the  2017 Long-Range Capital Financial Plan Report   
 
Prior Reports