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Funding Overview
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.
Highlights
Through the 2006, 2008 and 2009 bond
referenda, the City was authorized to issue
228.4 million in General Obligation 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 just over $140 million of authorized
bond funding included in the CIP, including
approximately $12 million of funding for
completing Parks & Recreation projects, $96
million for Transportation projects, just under
$4 million for Fire, and $28 million for the
Tanger Performing Arts Center. Of this
authorized bond funding, only approximately
$65 million of General Obligation bond funding
has not yet been issued, and will be issued to
fund Transportation projects as outlined in the
CIP. As directed by City Council, current
plans are for these bonds to be issued over
the next six years. Beginning in FY 16-17, an
additional 1 cent of the property tax rate is
being used to support debt service payment.
The total property tax rate will not be
impacted, but the debt service costs are
increasing in FY 16-17 from about $19.3
million per year to $23.4 million, requiring that
funding be reallocated from General Fund
expenditures to cover the additional
payments.
The CIP includes approximately $597 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.
Over the next ten years, the City will continue
its efforts to fund a significant portion of Water
Resources projects using Pay-As-You-Go
funding (using Enterprise Funds). Water
Resources expects to fund $328 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 $259 million in Revenue
bonds over the next 10 years.
The City continues to seek grant funding to
provide additional funding for CIP projects as
opportunities allow. Total Grants funding in the
CIP equates to $293 million. Grants are
defined to 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.
Finally this CIP includes $9.4 million
categorized as Other Revenue. Examples of
Other Revenue include private donations and
financing through Certificates of Participation,
such as in the South Elm Redevelopment
project.
Capital Improvements Program
Enterprise
Funds, 20.19%
Grants, 18.01%
Authorized
Bonds, 8.65%
Unauthorized
Bonds, 30.20%
Unauthorized
Bonds 2, 6.48%
Revenue Bonds,
15.89%
Other, 0.58%
Funding Sources