Title
Briefing on the Capital Facilities Project Process
Recommended Action
Committee Recommendation:
Not referred a committee.
City Manager Recommendation:
Receive a briefing on the Capital Facilities Project process.
Report
Issue:
Whether to Receive a briefing on the Capital Facilities Project process.
Staff Contact:
Joan Lutz, Senior Finance and Budget Manager, 360.753.8760.
Presenter(s):
Joan Lutz, Senior Finance and Budget Manager.
Background and Analysis:
The City of Olympia’s Capital Facilities Plan (CFP) is the financial plan for capital projects over the next six years. Development of the CFP starts with the Comprehensive Plan and the respective Master Plans. The culmination of all the plans provides a structured and transparent approach for identifying, evaluating, prioritizing and delivering capital investments across all departments. This process ensures alignment with Council priorities, long-range planning efforts and available funding resources. Each project undergoes coordinated review by Public Works, Parks and other relevant departments to ensure cost estimates, operational considerations, and long-term maintenance needs are clearly understood.
Departments initiate project proposals based on the master plan, asset condition assessments, regulatory compliance needs, safety considerations, capacity expansion requirements, and community objectives. Staff prepare preliminary scopes, schedules, and cost estimates that serve as the foundation for financial planning working with project managers to validate assumptions, refine estimates and identify potential funding sources such as utility rates, real estate excise tax (REET), grants and voter-approved revenues.
Projects are evaluated using criteria that include alignment with adopted plans, risk mitigation, equity considerations, financial feasibility, and resource availability. Funding capacity is reviewed across the six-year Capital Facilities Plan, confirming that projects can be supported within existing revenues or identifying where additional funding strategies may be needed. This helps ensure the City’s long-term financial health and compliance with state budget requirements.
The CFP process includes multiple review points for the Finance Committee, City Council as well as related Council and Advisory Committees. Committee briefings provide an opportunity to understand funding assumptions, major cost drivers, and timing considerations before the full CFP is brought forward for adoption as part of the annual budget process or subsequent amendments. Public transparency is supported through publishing the CFP document as well as the Comprehensive Plan and the respective Master Plans, project webpages, and communication during project design and implementation phases.
Once the CFP is approved, projects move into design, permitting and construction. Staff monitor expenditures, adjust forecasts, and support responses to bid results, inflationary cost changes, and scheduling adjustments. This ongoing monitoring ensures projects remain aligned with budget authority and that Council receives timely and accurate financial updates.
Climate Analysis:
This agenda item isn’t expected to have an impact to greenhouse gas emissions.
Equity Analysis:
This agenda item is not expected to further impact known disparities in our community.
Neighborhood/Community Interests (if known):
Members of the community may have an interest in this agenda item as it deals with City finances, transparency and fiscal governance.
Financial Impact:
There is no financial impact associated with this agenda item.
Options:
1. Receive a briefing on the Capital Facilities Project process.
2. Do not receive a briefing on the Capital Facilities Project process.
3. Receive a briefing on the Capital Facilities Project process at another time.
Attachments:
None