GFOA CPFO Capital and Operating
Budgeting Exam 100% Accurate!!
Capital Project Service-Level Goals - ANSWERSThe means by which a local
government can illustrate to its citizens what level of service can be provided with
available resources.
Needs Assessment - ANSWERSThis should address any gaps in service delivery and
form the basis for a capital projects request.
Public Participation Survey - ANSWERSShould be conducted every few years with
similar questions each time to gauge changing opinions. Questions should therefore be
developed with the anticipation that they will be used for many years.
Public Participation Community Meetings - ANSWERSSpeaking with community groups
will show the public that the jurisdiction is transparent and responsive and will
encourage citizens to become more involved with government.
Public Information Officer (PIO) - ANSWERSOften responsible for writing newsletters
and press releases, maintaining the jurisdictions website, and answering inquiries from
citizens.
Bond Committees - ANSWERSFormed for capital projects to provide feedback on bond
referendums.
Bond Referendum - ANSWERSMay be required under state law, is used to help ensure
the lowest cost financing, and or confirm the public's commitment to proposed projects.
Bond Committee Members - ANSWERSTypically include former elected officials, reps
of other governing bodies, business and environmental leaders, community activists,
and clients of the service.
Bond Committee Responsibilities - ANSWERSDetermining the size of the bond
program, ID'ing potential projects, holding public meetings, and producing a report to
elected officials.
Establishing Guiding Principles - ANSWERSBefore prioritizing projects, the group as a
whole needs to define the broad guiding principles for the process. Examples could
include: equity, diversity, input, sustainability, quality of life, accountability, or
affordability.
Establishing Project Scope - ANSWERSMeans defining the need or needs the project is
meant to address (temporarily or permanently), deciding how the needs are to be
,addressed, identifying any other needs or goals that will be created by the project,
defining what the project should be like, and deciding what should and should not be
included in the project.
Scope Creep - ANSWERSCan increase the duration, complexity and cost of the project
with little and/or noticeable warning.
Project Scope - ANSWERSMust be controlled by careful documentation and project
management. Before approval, scope should be defined by a detailed narrative
explanation with supporting back-up.
Project Budget - ANSWERSWill incorporate all of the costs associated with the project,
such as design, consultant fees, land acquisition, site preparation, and project
management expenses.
Construction Budget - ANSWERSIncludes just the portion of the project costs that are
paid to the contractor(s).
Project Cost Estimates - ANSWERSMore expensive or complex the project, the more
often a cost estimate should be developed.
Value Engineering - ANSWERSSystematic application of recognized techniques which
identify the function of a product or service, establish a value for that function, and
provide the necessary function at the least overall cost.
Capital Financing Costs - ANSWERSMay be charged to the project and included in the
debt financing or may be separately funded through the operating budget.
Price Changes Over Time - ANSWERSA multi-year project will need to include inflation
factors during the construction period.
Regional Inflation Indices - ANSWERSGenerally more accurate than national indices
and will reflect regional labor and material prices.
Cost Estimation Pitfalls - ANSWERSCosts that are occasionally overlooked include
moving costs and inflation.
Marshall-Swift Index - ANSWERSUses certain project attributes to arrive at an
estimated cost per square foot. This measure can then be applied to the total area to
calculate an estimated project cost.
Elements to Include in the Capital Budget - ANSWERSDefinition of capital expenditure,
summary information, schedule of completion, descriptions of the general scope of the
project, impact on the operating budget, estimated project cost, funding sources,
funding authority, and any analytical information like cost-benefit analysis.
, Quality-based Process - ANSWERSFocuses on the knowledge, skills and experience of
the professional consultants to meet the projects needs.
Request for Qualifications - ANSWERSSimilar to an RFP, except fee proposals are not
involved in the selection process.
Owner's Representative - ANSWERSOutside consultant with construction expertise that
will provide oversight, manage the project and coordinate activities between all
members of the project team, including the design professionals and the contractors in
the jurisdictions best interest.
Methods for managing design of capital projects - ANSWERSLowest bid, construction
manager/general contractor, and design/build.
Lowest Bid Aware - ANSWERSMost common, often called Design/bid/build (DBB).
Selection is via a qualifications process and construction services are selected through
competitive bidding.
Construction Manager/General Contractor - ANSWERSAlso known as "construction
manager at risk," allows the jurisdiction to select a construction manager, based on a
qualifications process before the design is complete. Once a manager is selected, all
work organized under a single guaranteed maximum price (GMP) contract. Manager
coordinates all subcontract work.
Design/Build - ANSWERSSimilar to a CMGC process, but here all work is awarded to a
firm or joint venture that does the design and construction management. With this
method, work is accomplished concurrently, accelerating the completion of the project.
Project Schedule - ANSWERSLand Acquisition, Design, Pre-Construction,
Construction, Close-Out, Commissioning, Warranty Period
Architectural Program Development - ANSWERSArchitectural program is a document
that establishes functions to be included in the facility, overall land needs, and current
and future needs.
Schematic Design - ANSWERSDiagrams take shape, progress into drawings that begin
to resemble real plans.
Design Development - ANSWERSProvides plans, elevations, and other info that clearly
defines the nature of the project.
Base Bid - ANSWERSOwner receives a single bid from each bidder
Alternate Bid - ANSWERSAllow jurisdiction to request and obtain prices for either
adding or deducting specific pieces of work or changes in the project schedule.
Budgeting Exam 100% Accurate!!
Capital Project Service-Level Goals - ANSWERSThe means by which a local
government can illustrate to its citizens what level of service can be provided with
available resources.
Needs Assessment - ANSWERSThis should address any gaps in service delivery and
form the basis for a capital projects request.
Public Participation Survey - ANSWERSShould be conducted every few years with
similar questions each time to gauge changing opinions. Questions should therefore be
developed with the anticipation that they will be used for many years.
Public Participation Community Meetings - ANSWERSSpeaking with community groups
will show the public that the jurisdiction is transparent and responsive and will
encourage citizens to become more involved with government.
Public Information Officer (PIO) - ANSWERSOften responsible for writing newsletters
and press releases, maintaining the jurisdictions website, and answering inquiries from
citizens.
Bond Committees - ANSWERSFormed for capital projects to provide feedback on bond
referendums.
Bond Referendum - ANSWERSMay be required under state law, is used to help ensure
the lowest cost financing, and or confirm the public's commitment to proposed projects.
Bond Committee Members - ANSWERSTypically include former elected officials, reps
of other governing bodies, business and environmental leaders, community activists,
and clients of the service.
Bond Committee Responsibilities - ANSWERSDetermining the size of the bond
program, ID'ing potential projects, holding public meetings, and producing a report to
elected officials.
Establishing Guiding Principles - ANSWERSBefore prioritizing projects, the group as a
whole needs to define the broad guiding principles for the process. Examples could
include: equity, diversity, input, sustainability, quality of life, accountability, or
affordability.
Establishing Project Scope - ANSWERSMeans defining the need or needs the project is
meant to address (temporarily or permanently), deciding how the needs are to be
,addressed, identifying any other needs or goals that will be created by the project,
defining what the project should be like, and deciding what should and should not be
included in the project.
Scope Creep - ANSWERSCan increase the duration, complexity and cost of the project
with little and/or noticeable warning.
Project Scope - ANSWERSMust be controlled by careful documentation and project
management. Before approval, scope should be defined by a detailed narrative
explanation with supporting back-up.
Project Budget - ANSWERSWill incorporate all of the costs associated with the project,
such as design, consultant fees, land acquisition, site preparation, and project
management expenses.
Construction Budget - ANSWERSIncludes just the portion of the project costs that are
paid to the contractor(s).
Project Cost Estimates - ANSWERSMore expensive or complex the project, the more
often a cost estimate should be developed.
Value Engineering - ANSWERSSystematic application of recognized techniques which
identify the function of a product or service, establish a value for that function, and
provide the necessary function at the least overall cost.
Capital Financing Costs - ANSWERSMay be charged to the project and included in the
debt financing or may be separately funded through the operating budget.
Price Changes Over Time - ANSWERSA multi-year project will need to include inflation
factors during the construction period.
Regional Inflation Indices - ANSWERSGenerally more accurate than national indices
and will reflect regional labor and material prices.
Cost Estimation Pitfalls - ANSWERSCosts that are occasionally overlooked include
moving costs and inflation.
Marshall-Swift Index - ANSWERSUses certain project attributes to arrive at an
estimated cost per square foot. This measure can then be applied to the total area to
calculate an estimated project cost.
Elements to Include in the Capital Budget - ANSWERSDefinition of capital expenditure,
summary information, schedule of completion, descriptions of the general scope of the
project, impact on the operating budget, estimated project cost, funding sources,
funding authority, and any analytical information like cost-benefit analysis.
, Quality-based Process - ANSWERSFocuses on the knowledge, skills and experience of
the professional consultants to meet the projects needs.
Request for Qualifications - ANSWERSSimilar to an RFP, except fee proposals are not
involved in the selection process.
Owner's Representative - ANSWERSOutside consultant with construction expertise that
will provide oversight, manage the project and coordinate activities between all
members of the project team, including the design professionals and the contractors in
the jurisdictions best interest.
Methods for managing design of capital projects - ANSWERSLowest bid, construction
manager/general contractor, and design/build.
Lowest Bid Aware - ANSWERSMost common, often called Design/bid/build (DBB).
Selection is via a qualifications process and construction services are selected through
competitive bidding.
Construction Manager/General Contractor - ANSWERSAlso known as "construction
manager at risk," allows the jurisdiction to select a construction manager, based on a
qualifications process before the design is complete. Once a manager is selected, all
work organized under a single guaranteed maximum price (GMP) contract. Manager
coordinates all subcontract work.
Design/Build - ANSWERSSimilar to a CMGC process, but here all work is awarded to a
firm or joint venture that does the design and construction management. With this
method, work is accomplished concurrently, accelerating the completion of the project.
Project Schedule - ANSWERSLand Acquisition, Design, Pre-Construction,
Construction, Close-Out, Commissioning, Warranty Period
Architectural Program Development - ANSWERSArchitectural program is a document
that establishes functions to be included in the facility, overall land needs, and current
and future needs.
Schematic Design - ANSWERSDiagrams take shape, progress into drawings that begin
to resemble real plans.
Design Development - ANSWERSProvides plans, elevations, and other info that clearly
defines the nature of the project.
Base Bid - ANSWERSOwner receives a single bid from each bidder
Alternate Bid - ANSWERSAllow jurisdiction to request and obtain prices for either
adding or deducting specific pieces of work or changes in the project schedule.
