Secondary and Cumulative Impacts Master Management Plan - 2014

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:

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

General Fund – the capital item may require advanced funding from the General Fund to begin design work.

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