Last Updated on January 5, 2026
October 11, 2025
Art Johnson Chair, Residents’ Council Finance Committee
REVIEW AND EVALUATION PROCESS FOR CAPEX 2027 PROPOSALS
How do Residents’ Council committees review and submit Capital Expenditure proposals for 2027 to the Finance Committee for consideration?
In November, the Finance Committee expects to share with all Residents’ Council committees the Board of Directors’ projected capital projects for 2026 as they are received from the Finance Office. The Finance Committee also will share other information it receives from the Finance Office about capital projects as may be relevant to this process.
To be considered by the Finance Committee for submission to management, all proposals (including those from residents and Charlestown organizations) shall come from a Residents’ Council committee.
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.
Residents’ Council committees submitting proposals to the Finance Committee must use the attached form for each submitted proposal. Proposals must briefly describe the problem or issue being addressed, a description of the project being proposed, and a brief rationale (why it is needed, its importance, or other justification). When possible, proposals should contain a “ball-park estimate” of the cost of the proposed project. Staff liaisons to the committees serve as a resource for advice and for broad estimates of costs as may be requested.
Each committee must submit a numerical rank to each of its submitted proposals to provide guidance for the Finance Committee’s review. (See attached form)
Committees may attach additional information to their proposals, but the attached form must be completed and submitted for each proposal.
Committees are encouraged to submit proposals jointly. A jointly submitted proposal will count toward each submitting committee’s allowed maximum of five.
Committees must submit their proposals to the Finance Committee no later than March 15, 2026.
What will be the review process of the Finance Committee?
The Finance Committee will review the ranked proposals of the submitting committees. It will submit from these no more than ten rank-ordered proposals to the Charlestown administration via the Office of Finance no later than May 31, 2026.
The Finance Committee’s process for review will include each committee member who is available to participate in this process in an effort to gain a comprehensive assessment of proposals that is as inclusive of various perspectives, resident interests, and evaluations of overall importance as possible.
The process for review and decision-making, as determined by members of the Finance Committee, will be the following: sub-committees will be formed and asked to review an equal number of proposals. (However, if the number of submittals is less than expected, the formation of sub-committees may not be necessary and the Finance Committee as a whole will proceed with its review.)
The Finance Committee and its sub-committees will use the following criteria:
1) An assessment of the importance or relevance of the problem to be solved in terms of one or more of the following values:
- Safety (avoid harm, avoid recovery costs, increase security, etc.)
- Sustainability
- Reduced cost (improved efficiency, reduce operational costs, etc.)
- Expand market attractiveness (external or internal on campus)
2) Clarity of the description and practicality of the recommended action,
3) The estimated cost of the recommended action, if available.
The sub-committees may request from Residents’ Council committees additional information relevant to their submitted proposals.
The sub-committees will use a common rating form to assist their discussion of proposals. The subcommittees’ evaluations of proposals will address the forgoing criteria and will list the pros and cons of each proposal to assist the Finance Committee in its review of the proposals.
Members of the Finance Committee shall discuss each proposal and decide which proposals to recommend, but no more than ten may be recommended. They will vote on the final report to management at the Finance Committee’s regular monthly meeting unless otherwise (such as by mail ballot) decided by the Finance Committee. A majority of those voting in favor will constitute approval by the Finance Committee.
The Finance Committee will include a ranking of the recommended proposals in its report submitted to management as well as a brief narrative for each submitted proposal.
Report on Outcomes of Review Process
The Finance Committee will report to the Residents’ Council in June, 2026 (if not sooner) the results of its review and any other relevant information concerning the review process and/or the committee’s rankings.
The Charlestown Finance Director will report back to the Finance Committee as to which proposals were approved by the Charlestown Administration and Board of Directors for inclusion in the 2027 CapEx budget and other relevant information. This should take place at the November meeting of the Finance Committee or no later than the Committee’s next scheduled meeting after its November meeting.
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The form that each committee will use in submitting its recommendations to the Finance Committee follows:
Charlestown Capital Expenditure Project Proposal For 2027
Title of Project ____________________________________________
Issue to be Resolved (limit 250 words)
Proposed Resolution (limit 250 words)
Estimated Cost (if possible) _________________________________
Priorities Addressed (safety, sustainability, reduced cost, market enhancement)
__________________________________________________________________
__________________________________________________________________
Overall Ranking by Committee Relative to Other Submitted Proposals
(1 = highest; 5 = lowest) ______________________________________________
Sponsoring Committee _______________________________________
Date Submitted to Finance Committee _______________________
ATTACHMENTS:
DEFINITION OF CAPITAL PROJECTS
Residents 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 Financial Director approval to be capitalized.