How does the GFOA recommend prioritizing capital projects?

The GFOA emphasizes the importance of aligning capital projects with public need and strategic goals as a best practice for prioritization. This approach allows governments to ensure that their spending addresses the most pressing community needs and supports long-term objectives. When capital projects are evaluated against these criteria, decision-makers can determine which projects provide the greatest benefits to the community, enhance service delivery, or advance key initiatives outlined in the strategic planning process.

This method of prioritization encourages a holistic review of potential projects rather than limiting the evaluation to financial aspects or past performances. By focusing on strategic alignment, organizations can foster transparency and trust among stakeholders, as it clearly illustrates how chosen projects will serve the community and contribute to overarching goals.

Other approaches like focusing solely on available funding, project timelines, or past performance may not capture the value or necessity of a project in its current context, potentially leading to decisions that do not best serve community interests or future development.