Last Updated on February 24, 2025

What is a capital expenditure?
Capital expenditures (CapEx) are the part of Charlestown’s annual budget that allocates funds to capital projects. A complete definition and guide to determining if a proposed project is a capital project is at the end of this document.  Please refer to those criteria before submitting your proposal.

How do Residents (and Charlestown Organizations) submit proposals to Committees for consideration?
For full consideration, proposals should be submitted to and be reviewed by a committee of the Residents’ Council. To ensure that each proposal receives equal treatment and that the proposal review and evaluation process is orderly and efficient, residents may not submit proposals directly to management or to the Board of Directors. Please consult the appropriate Residents’ Council committee if you require information – please do not inquire or communicate directly with a department. Residents’ Council committees, their chairpersons, and committee meeting times are identified on My Erickson and cci.Charlestown.org.

Please use the attached form when submitting a proposal. The format for such resident-submitted proposals should be as close to the following as is practical:
Complete the attached form. Briefly (in 250 words or less) describe the problem or issue your proposal addresses and why (in 250 words or less) your proposal is needed, its importance, or other rationale for it.  Provide as much detail as possible and an estimate of its cost (if available). Any other information relevant to the proposal may be included. Be certain to identify the community priority or priorities that your proposal addresses (See the attached form)

A proposal may be submitted to more than one committee of the Residents’ Council, but the proposer(s) must indicate to which committee(s) it has been submitted. (See the attached form)

Include the name and contact information of the resident making the proposal and date of the proposal.  (See the attached form)

Each Residents’ Council committee will develop its own procedures for proposal review and evaluation.  Each committee may submit a maximum of five proposals to the Finance Committee for review and evaluation.

 
 

FORM

Charlestown Capital Expenditure Project Proposal For 2026

Title of Project ____________________________________________ 

Issue to be Resolved  (limit 250 words)

 

Proposed Resolution, including those who may benefit from the project (limit 250 words)

 

Estimated Cost of Project (if possible)  ______________________

 

Priorities Addressed (safety, sustainability, reduced cost, market enhancement)  ________________________________________

 

Submitted by  ________________________________________

 

Committee(s) Receiving the Proposal  _______________________________________

Submittal Date  _______________________

Attachments

DEFINITION OF CAPITAL PROJECTS

Residents, Charlestown organizations, and committees should use the following as a guide for identifying potential capital projects that they wish to recommend.

Policy – Capital Expense vs. Operating Expense

A.         A Capital Expenditure must meet the following requirements:
•          Must be over $2,500. (Can be in aggregate if for one project.)
•          Must have a service life of more than one year.
•          Must benefit future periods.
•          Must be purchased with the intention to actively use in operations.
•          Must have tangible physical substance.

B.         Capital Expenditures should not be the following:
•          Internal Labor
•          A consumable product. Example – Medical Supplies and Preventative   Maintenance supplies should not be treated as a capital expenditure
•          A cost to keep property in standard operating condition. Examples include recurring cleaning, oiling, repairing, and adjusting).
•          A cost associated with normal grounds keeping maintenance. Examples include annual mulching, planting and miscellaneous landscaping.
•          A cost to restore a capital asset to normal operating efficiency without an increase in ORIGINAL estimated service life or productive capacity.
Examples of expenditures that typically do not increase the original estimated service life include flame control unit repairs or replacement, vehicle repairs, roof repairs and asphalt repairs.

C. Policy – Repairs and Maintenance Expense:Repairs which maintain the existing condition of the asset or restore it to normal operating efficiency without an increase in its estimated original service life should be classified immediately as a repairs and maintenance expense. In addition, all expenditures – including IT capital – less than $2,500 on a per unit basis must be expensed. Exceptions to this cost per unit mandate would be expenditures that are purchased as a part of a larger project or effort such as start-up, life cycle or repositioning. These exceptions require regional Finance Director approval to be capitalized.