City of Austin Performance Report 2014-15

Percent Invested in Capital Improvements Program (CIP) Projects Compared to Planned Spending Via the CIP Budget

Measure Description
The measure tracks actual CIP spending during the fiscal year as a percentage of the CIP spending planned for that year. CIP spending affects the issuance of debt and transfers of current revenue to CIP, and thus rates. It is also a direct indicator of project completions. Therefore, it is important to strive to spend CIP money as budgeted.
Calculation Method
This measure is calculated as the amount of CIP dollars spent divided by CIP spending dollars budgeted for the fiscal year.
FY 2014-15 Results
The result did not meet the 90% goal established for this measure.
Assessment of Results
The AW CIP Management Team coordinates Asset Management and CIP issues internally and with other citywide departments (including the Capital Planning Office, Corporate Budget Office, Public Works, Transportation and others). Austin Water (AW) CIP projects ready for construction advertisements were deferred over the summer and fall of 2014 due to continuing revenue constraints from the prolonged drought. Although specific exceptions were made for projects with extraordinary time constraints such as expiring easements, long term inter-agency projects and regulatory deadlines, the temporary policy did not apply to projects already approved for construction, nor limit the design efforts of the highly prioritized and already reduced CIP Plan. As the severity of the drought increased, cost reduction efforts during the deferral period helped stabilize AW finances. Intentional cost-deferring strategies in FY 2013-14 and continued deferred spending in FY 2014-15 resulted in significant variances from budgeted estimates. AW has started advertising CIP projects on a prioritized, case-by-case basis including deferred projects. However, AW is proceeding with caution due to the heightened concern over the water supply, the related changes in how customers conserve water, and the associated revenue shortfall. 
A picture of workers next to an Austin Water truck.
Next Steps
Throughout the year, AW executive management works closely with CIP finance, planning and delivery teams to improve processes using dynamic business intelligence tools. The team also improves processes and facilitates asset management integrated discussions for CIP plan development and delivery (including planning, prioritization, and project tracking), and advocates for project management tools, data, and analysis. AW will need all staff and partners to work through the lingering effects of the unprecedented drought successfully. CIP projects could be placed on hold during the CIP Project Action Review process depending on the individual CIP project and the overall financial condition. 
Contact Information
For more information contact Brian L. Long, P.E.  at (512) 972-0177.