2018-2019 Adopted Budget

Capital Improvements Program

Funding Overview

Resources projects using

Pay-As-You-Go

funding Water Resources expects to fund $307 million of projects through Enterprise Funds, allowing the department to save on interest expenses and maintain a strong position with bond rating agencies. In addition, Water Resources estimates spending $329 million in Revenue bonds over the next 10 years. (using Enterprise Funds).

The Capital Improvements Program relies on a variety of funding sources to accomplish its many efforts. These include debt financing; enterprise funding; general fund revenues; state shared revenues; and grants from the state government, federal government, or private sources. Through the 2006, 2008 and 2009 bond referenda, voters authorized the City to issue $228.4 million in General Obligation bonds. The recently passed 2016 referenda authorized the issuance of an additional $126 million in bonds. The City also occasionally utilizes Special Obligation bonds, such as those being used to fund the City’s contribution to the Tanger Performing Arts Center. There is over $226 million of authorized bond funding reflected in the CIP, including $88 million for Transportation projects, just over $72 million for each of three departments – Parks & Recreation, Planning, and Neighborhood Development – and a variety of other projects funded by authorized bonds. As directed by City Council, current plans are for these bonds to be issued over the next six years. The increasing debt service costs associated with the debt issuance to fund authorized bond projects is increasing to over $29 million in FY 18-19. The CIP includes approximately $281 million of Unauthorized Bond funded projects. These projects include projected needs to replace aging infrastructure, facilities, and major equipment, targeted programs to support disadvantaged or at-risk groups, new facilities based on future demand and growth, and other capital needs identified by departments for planning purposes. Total unauthorized bond projects have decreased over the past few years, in part due to the passage of the $126 million of authorized bonds approved in the 2016 referenda. Highlights

FundingSources

Other, 6.5%

Enterpr ise Funds, 22.1%

Revenue Bonds, 23.7%

Grants, 11.1%

Bonds, 7.6%

Unautho rized Bonds, 20.2%

Author ized Bonds 2 (20 16 Bonds), 8.7%

The City continues to seek grant funding to provide additional funding for CIP projects as opportunities allow. Total grant funding in the CIP equates to $155 million. Grants include any funding received from the State or Federal Government that often require a local match from the City. During the 10 year planning period, Grants are projected to be available to support a variety of Transportation projects, including sidewalk construction, road projects, and transit improvements. includes $91 million categorized as Other Revenue. One major source of Other Revenue in the CIP is the projected parking fee increase that will be used to fund new parking decks in downtown. Another major revenue in the category is the projected $30 million from vehicle registration fees that will support resurfacing. Other examples include private donations and financing through Certificates of Participation. Finally, this CIP

Over the next ten years, the City will continue its efforts to fund a significant portion of Water

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