What should spend-down estimates for capital projects be periodically compared against?

The most fitting answer for comparing spend-down estimates for capital projects is investment income projections. This comparison is important because it helps ensure that the capital projects are financially sustainable over time. By understanding how much income the investments are projected to generate, decision-makers can gauge whether the anticipated funding from these sources aligns with the capital spending plans.

Investment income can play a critical role in funding ongoing capital projects. If spend-down estimates exceed what the investments are expected to generate, it may signal potential funding shortfalls down the line. Thus, regular comparisons can provide insights that help in adjusting project scopes, timelines, or funding strategies to align with financial realities.

While community needs, historical spending patterns, and tax revenue forecasts are relevant for various aspects of financial planning, they do not directly inform the sustainability of funding for active capital projects in the same manner that comparing against investment income does. Focusing on investment income ensures that a municipality is making sound financial decisions based on realistic and projected financial conditions.