383 / 634
introduction FY2014
PUBLIC PARTICIPATION
Capital decisions are typically of keen interest to citizens
because of their impact on community growth,
development, and tax rate. Citizen input can help to
assure that the most desirable projects receive highest
priority. Involving citizens in the process can gain support
for the capital plan and budget, and for funding options,
such as issuance of bonds where citizen approval is
required. Morrisville will utilize a survey tool to gather
citizen input on areas of focus every other year.
In addition, a public comment portal via the website will
be open for citizen comments and suggestions throughout
the CIP Process in conjunction with the Annual Budget
Process. Such forms of communication and input techniques
have the potential of reaching a wider audience within the
community lending valuable perspectives to the review. A
formal Public Hearing will be required and conducted in
conjunction with the Annual Operating Budget.
As in all community matters, the public is encouraged to
provide input by actively communicating their opinions on
service needs or key issues facing the community to their
representative Town Council via email, letters and phone
calls.
STAFF PARTICIPATION
A department needs survey will be conducted to identify,
document, and justify staff CIP requests. Departments will
provide scope, project cost estimates and revenue sources
(Finance/Budget will assist). Departments will use the CIP
Request Form to submit new projects to be considered.
This will include submissions of the Project Evaluation
Criteria Form. The forms will be updated every other
year.
FUNDING SOURCES
Typically, Morrisville plans capital projects using some
form of debt service instrument. The use of debt is
considered under the following circumstances:
1.
The capital item is a long-living asset with a useful
life greater than three years.
2.
The asset has a useful life expectancy that equals
or exceeds the length of the debt-financing period.
In many cases, a project may be financed through a
combination of several funding sources. Below are the
various funding sources typically used to finance and fund
CIP items:
General Fund
–
the capital item may require advanced
funding from the General Fund to begin design work.
The financing instrument reimburses funding provided
for by the General Fund prior to the close of the capital
project.
Grants
–
funding of the capital item was secured upon
application of a governmental grant ( e.g. CDBG, Law
Enforcement Grants, EPA Water Quality, Fire Safety
Grants, CAMPO, Wake County Park Grants) The capital
item is used for a public facility or equipment that is a
public good and that may or may not have a revenue
producing capability. (e.g. streets, municipal buildings,
structures, or parks). Typically, grant funds are
designed to be seed money and are a short-term
financing source.
Installment Purchase
–
the capital item is used for a
public facility or equipment that is a public good and
may or may not have revenue-producing capability.
These asset-backed loans involve an installment
purchase or financing agreement and perhaps a trust
indenture.
General Obligation Bonds
–
the capital item is used for a
public facility or equipment that is a public good and
that has no revenue producing capability (e.g. streets
and municipal buildings or structures). Generally, GO
Bonds are used for major projects. Growth in tax
based could be leveraged when a project is in response
to community demands.
Revenue Bonds
–
the capital item is used for a non-
public good in which a revenue stream is associated
with the capital item (e.g. airport, water, wastewater,
and electric systems capital items).
ACTIVATED PROJECTS
Once Staff and Council produce a final capital projects
prioritized list, it will be determined how many project(s)
might be activated (funded) across the 5YrCIP. This
consideration is evaluated in conjunction with the 5YrLRFM
projected financial capacity. If financial capacity does
not exist, the projects will remain in the prioritized list as
unfunded. This will occur once every other year. The
following is the current Project List showing funded and
unfunded projects.
CURRENT STATUS
Council entered into a CIP/Bond Referendum planning
cycle for the purpose of identifying what Capital
30