Capital Budgeting Workbook - UNC School of …...Budgeting in Local Government: Capital Budgeting Page 1 12 Capital Improvements Program Town of Carrboro FY 2015-16 through FY 2020-21

Capital Budgeting Workbook

11 Capital Improvements Program Town of Carrboro FY 2015-16 through FY 2020-21

Sidewalks Project Description In 2003 the citizens approved $4.6 million of general obligation bonds for a sidewalk and greenway construction program. The Town has completed 22 sidewalks covering 4.72 miles.

Sidewalks Completed

Ashe St.

Jones Ferry Rd (at Old Fay.) Bim St.

Lisa Drive

Bolin Forest

Lloyd St. Brewer Lane

N. Greensboro St.

Cheek St.

Old Fayetteville Rd. Davie Rd.

Pine St.

Elm St.

Pleasant Fowler St.

Quail Roost

Hanna St.

S. Greensboro St. James St.

West Main St. (near Post Office)

Jones Ferry Rd. (Rt. 54)

Williams St. The following two projects are expected to be completed in 2015-16 and will complete construction of the planned sidewalks.

Rogers Road sidewalk project (one mile in length) consists of the installation of a 5 foot wide concrete sidewalk on the west side of Rogers Road from Homestead Road to Meadow Run Court. It is funded with a combination of bond funds and STP-DA funds. The project is at 90% design completion and staff is in the process of acquiring easements and right of way. Construction is anticipated in calendar year 2015.

Smith Level Road improvements by NCDOT will include sidewalk installation with the

Town providing a 30 % local match, currently estimated at $42,412. The project is currently under construction and is expected to be completed in FY 2014-15.

Project Benefits This project increases the safety and convenience of walking throughout the Town within neighborhoods and to facilities such as schools, bus stops, shopping areas and recreational facilities. The Town encourages all state road improvements to include sidewalks and bike lanes on both sides of the road and, where feasible. Energy Sustainability Measures A good sidewalk network reduces the reliance on automobiles and thereby reduces the Town’s overall carbon footprint. Operating Impact The construction of new sidewalks is not expected to have an immediate impact on the town’s operating budget. However, in the long-run additional sidewalks will need to be maintained and replaced.

Budgeting in Local Government: Capital Budgeting

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12 Capital Improvements Program Town of Carrboro FY 2015-16 through FY 2020-21

ESTIMATED COSTS PRIOR YEARS

2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 & BEYOND

TOTAL PROJECT

Planning/Design 652,476$ -$ -$ 652,476$ Construction 2,908,054$ 288,000$ 864,000$ 4,060,054$ Other 457,308$ -$ 117,000$ 574,308$

TOTAL COST 4,017,838$ 288,000$ 981,000$ -$ -$ -$ -$ -$ -$ 5,286,838$

ESTIMATED FUNDING PRIOR YEARS

2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 & BEYOND

TOTAL PROJECT

Capital Reserves 383,811$ 383,811$ Pay-As-You-Go 11,700$ 11,700$ GO Bond 2,635,585$ -$ 828,678$ 3,464,263$ Intergovernmental Revenues 693,168$ 288,000$ 152,322$ 1,133,490$ Other 293,574$ 293,574$

TOTAL FUNDING 4,017,838$ 288,000$ 981,000$ -$ -$ -$ -$ -$ -$ 5,286,838$


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FY16-17 CIP Overview


Page 4

Financial Impact

Police, $435,000

Public Works, $397,000

Recreation & Parks,

$331,000

General Fund CIP Project Costs by Department FY16-17


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Financial Policies


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Capital Improvement Plan

Introduction The Clinton Capital Improvement Plan (CIP) represents a multiyear forecast of the city’s capital needs. The CIP not only identifies capital projects but also the financing required for the projects and their impact on the operating budget. Capital projects differ from annual operating expenses in that they involve large dollar amounts, often require special financing, occur at irregular intervals, and involve development of assets expected to last several years. The City of Clinton prepares a five-year CIP to function as a planning tool for capital improvements. Only the current year schedule, when adopted by City Council, becomes part of the operating budget. The CIP schedule beyond the current fiscal year is subject to adjustments upon annual review by city staff and Council. Future forecasts in the CIP serve the city by helping plan for capital repairs, replacements, and acquisitions, which aids in financial planning to ensure the city’s fiscal health and credit.

Policies and Finance Strategies The CIP helps the city manage capital expenditures to meet the following goals:

1. Eliminate hazards and risks to public health and safety 2. Promote economic development 3. Improve service effectiveness and efficiency 4. Maintain financial stability

To achieve these goals, the following policies and finance strategies guide city staff in CIP development:

A capital project is a physical asset with an initial cost greater than $10,000 and a projected useful life greater than 5 years or a non-recurring operating expenditure greater than $10,000 directly related to service delivery. Capital assets may include infrastructure, buildings, vehicles, or information technology equipment and software. Planning and design costs associated with the request should be included in the projected costs when applicable.

Similar projects costing less than $10,000 should not be lumped together to form a single

project greater than $10,000. Such smaller projects should be included within the upcoming operating budget.

The term of any city debt issue shall not exceed the useful life of the asset for which the debt is

issued.

The capital program will recognize the borrowing limitation of the city to maintain fiscal stability.


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The city will search for all possible outside funding sources for CIP projects to help offset city debt, including grants, private-partnerships, and intergovernmental agreements.

A financial analysis will accompany the CIP to illustrate the city’s capacity to repay debt and

identify the effects on financial indicators.

The city will seek to maintain financial indicators within an acceptable level as compared to peer cities.

The city will attempt to use pay-as-go financing when possible, particularly for capital assets

with costs less than $75,000. The following is a list of financing options for the City to consider when debt financing is required. General Obligation Bonds. GO bonds require voter approval because the debt is secured by the taxing power of the local government. GO bonds typically have the lowest interest rates and twenty-year terms. The city typically will not consider GO bonds for any project unless the cost exceeds $2 million. Revenue Bonds. Revenue bonds are secured and repaid from specific revenues. These revenues are most often the net earnings from enterprise or self-supporting utilities. Revenue bonds are commonly used to finance water and sewer capital improvements. The city typically will not consider revenue bonds for utility projects unless the cost exceeds $3 million. Installment Purchase Agreements. IP financing can be either short-term or long-term. This type of financing is typically used for items such as equipment and vehicles. Installment purchasing presents the best option for most of the city’s current capital needs. Certificates of Participation. COPs typically have higher interest rates than GO bonds because the debt is secured by funds resulting from project being financed and not the “full faith and credit” of the government. COPs are typically financed for ten- to twenty-year terms. This type of financing should be considered for a revenue-generating project. Tax Increment Financing Bonds. TIF bonds are high risk for investors because the debt is secured on anticipated increases in property value. TIF bonds can be financed for up to thirty years. They do not require voter approval despite their reliance on property or sales tax increases. TIF is complicated in North Carolina and requires approval from the Local Government Commission and consent from Sampson County. Special Assessments. Special assessments are an option if citizens petition for a specific capital project. The government can issue debt to finance the project and the citizens agree to pay part of the project costs through taxes for a set number of years.


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Assigned Capital Funds. Assigned capital funds represent money set aside each fiscal year for capital projects. The city’s fund balance policy provides for capital funds by committing money for capital projects from the city’s fund balance in excess of the city’s specified range. Committed capital funds are used typically for project contingency and smaller projects.

General Fund/Capital Outlay. This funding is similar to the capital reserve fund except it is money allocated out of the General Fund from the operating budget. There is no debt associated with this funding. This represents a majority of the city’s pay-as-go financing. Water and Sewer Fund. The water and sewer fund operates as an enterprise fund. Revenues generated by water and sewer operations are designated in the water and sewer fund for the water and sewer operating budget as well as water and sewer associated capital outlay. The city maintains a capital reserve fund for specified water and sewer projects. The city designates retained earnings above the city’s specified range for the water and sewer capital reserve fund. Miscellaneous. Other funding sources include grants or donations from private donors or state and federal government. These funding sources often have to be used for a specific project.

Planning Process and Calendar City staff reviews the CIP annually as part of the regular budget process. Preparation for the CIP begins in December of the current fiscal year, at which time department heads meet with staff to review capital needs. At the same time, the City Manager and Finance staff meet to review Council goals, CIP policies, finance strategies, and ranking criteria. In mid-January, departments submit their CIP requests and meet with the City Manager and Finance staff to discuss the projects and estimated costs. Once department heads submit all CIP projects, the City Manager and Finance staff rank the projects using the following criteria and point scale.

1. Addresses Public Safety (20 points) 2. Legally Mandated (20 points) 3. Achieves Council Goal (15 points) 4. Achieves Community Goal (15 points) 5. Availability of Outside Funds (10 points) 6. Increases Service Efficiency (10 points) 7. Promotes Economic Development (10 points) 8. Protects/Maintains City Assets and Financial Stability (10 points) 9. Receives Economic Payback in Less Than 5 Years (10 points) 10. Links with Other Projects (10 points)

The total points for each project merely represent a guideline and are not the determining factor for project funding. City Council must approve projects, which are subject to change based on shifts in Council priorities and the economy. Each project can receive all, half, or no points for each category.


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City staff performs a financial analysis to estimate the impact of capital projects on the operating budget and the city’s borrowing capacity and debt tolerance. The financial analysis helps determine which projects to fund in each year. Expected budget surpluses and deficits are considered when calculating the financial impact of the CIP. City staff develops a preliminary CIP by mid-March to present to City Council at a CIP workshop to discuss changes and priorities. The final CIP is adjusted based on Council recommendations and presented to the Council for public approval as part of the annual budget document at the June Council Meeting.

FY 2015-2016 CIP and Budget Schedule

Budget Preparation Steps Date

Strategic planning workshop with City Council Tuesday, October 20, 2015 Departments begin meeting internally to develop CIP project requests

Monday, November 30, 2015

Departments submit CIP project requests to Finance & Administration

Friday, January 8, 2016

Administration & Finance review CIP project requests. Department Heads meet with City Manager & Finance staff to discuss CIP project requests

Monday, January 11 – 15, 2016

Strategic planning and goal confirmation workshop with City Council

Thursday, January 21, 2016

City Manager & Finance staff rank CIP project requests & establish a priority list

Tuesday, January 26, 2016

CIP project impact & financial analysis is completed to prepare for operating budget

Wednesday, January 27 – February 12, 2016

Budget packages delivered to departments Friday, February 19, 2016

CIP workshop with City Council Thursday, February 25, 2016

Departments submit budget request Friday, April 1, 2016

City Manager & Finance staff review budget requests & prepare recommendations

Monday, April 4, 2016 – Friday, April 29, 2016

Budget workshop with City Council Tuesday, April 19, 2016

Submit CIP & preliminary FY16-17 budget to City Council Friday, May 6, 2016

Budget workshop with City Council Tuesday, May 17, 2016 Submit recommended FY16-17 budget to City Council for review

Tuesday, May 31, 2016

City Council holds public hearing regarding proposed FY16-17 budget

Tuesday, June 14, 2016

City Council adopts FY16-17 Budget Tuesday, June 21, 2016

Fiscal Year 2016-2017 begins Friday, July 1, 2016


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Description The CIP consists of four sections: CIP Summary. This section provides a summary of the capital improvement plan in table form. The summary presents the estimated capital costs for each department and the years in which the city expects to assume that debt. There is a summary for the general fund and water and sewer fund.

Individual Project Descriptions. This section explains each CIP project in further detail on the included tables. The tables include the benefits and effects of funding the project as well as the expected method of financing and its impact on the operating budget. Financial Impact Analysis. City staff performs financial analyses to evaluate the impact of the CIP on the operating budget and the city’s debt tolerance. These tables and charts present the potential effects of the CIP on the city’s ability to maintain its current fiscal practices and its ability to borrow money while not compromising its strong financial status. Unfunded Projects. This section provides a brief summary of projects submitted but not included in the current CIP. The summaries include a description of the project and details as to why it is not funded in the CIP.


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CIP Summary

Department Project FY16-17 FY17-18 FY18-19 FY19-20 FY20-21 Future YearsTotal Capital

CostDowntown Revitalization Phase IV 1,200,000$ $ 1,200,000 Elizabeth St. Multi-use Path 650,000$ $ 650,000

Department Total -$ -$ -$ 650,000$ 1,200,000$ -$ $ 1,850,000 Fire

FD Emergency Generator Replacement 67,000$ $ 67,000 Fire Apparatus Replacement 400,000$ $ 400,000 Fire Vehicle Replacement 30,000$ 25,000$ 45,000$ 25,000$ $ 125,000 Wall Street Station Renovations 1,287,000$ $ 1,287,000

Department Total -$ 30,000$ 25,000$ 1,799,000$ 25,000$ -$ $ 1,879,000 Police

Police Station Addition/Remodel 300,000$ 1,800,000$ $ 2,100,000 Police Vehicle Replacement 135,000$ 104,000$ 139,100$ 107,200$ 143,300$ $ 628,600

Department Total 435,000$ 104,000$ 1,939,100$ 107,200$ 143,300$ -$ $ 2,728,600 Public Works

Fleet Vehicle Replacement 20,000$ 50,000$ 30,000$ 20,000$ $ 120,000 Grounds Cemetery Paving 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ $ 75,000 Grounds Equipment Replacement 12,000$ 12,000$ 12,000$ $ 12,000 $ 48,000 Grounds Maint. Building Renovations 40,000$ $ 40,000 Grounds Vehicle Replacement 25,000$ 35,000$ $ 25,000 $ 85,000 Pedestrian Plan Sidewalks 65,000$ $ 65,000 Sanitation Vehicle Replacement 480,000$ 125,000$ $ 605,000 Street Equipment Replacement 200,000$ 17,000$ $ 217,000 Street Resurfacing 225,000$ 225,000$ 225,000$ 225,000$ 225,000$ $ 1,125,000 Street Vehicle Replacement 105,000$ 95,000$ 55,000$ 65,000$ 210,000$ $ 530,000

Department Total 397,000$ 355,000$ 647,000$ 844,000$ 630,000$ 37,000$ $ 2,910,000 Recreation

Bellamy Center Roof 81,000$ $ 81,000 Fisher Drive Park Playground 60,000$ $ 60,000 Recreation Equipment Replacement 35,000$ 12,000$ 14,000$ $ 61,000 Recreation Vehicle Replacement 25,000$ 25,000$ 25,000$ $ 75,000 Royal Lane Park Renovations Ph 1 225,000$ 225,000$ $ 450,000 Royal Lane Park Renovations Ph 2 1,200,000$ $ 1,200,000 Storage Building Replacement 25,000$ $ 25,000 Sampson Center A/C 75,000$ $ 75,000

Department Total 331,000$ 360,000$ 37,000$ 60,000$ 1,239,000$ -$ $ 2,027,000

General Fund

Admin, Finance, & Planning


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Facility/Division Project FY16-17 FY17-18 FY18-19 FY19-20 FY20-21 Future YearsTotal Capital

CostLine Maintenance NC 24 Expansion Utilities 2,297,000$ $ 2,297,000

NC 24 Industrial Park Utilities 400,000$ 3,166,800$ $ 3,566,800 Pierce St. Expansion Utilities 500,000$ $ 500,000 Utility Lines Equipment Replacem 350,000$ $ 350,000 Utility Lines Materials Shelter 30,000$ $ 30,000 Utility Lines Rehab Program 200,000$ 200,000$ 200,000$ 200,000$ 200,000$ $ 1,000,000 Utility Lines Vehicle Replacemen 40,000$ 35,000$ 25,000$ $ 100,000

Division Total 1,020,000$ 235,000$ 6,188,800$ 200,000$ 200,000$ -$ $ 7,843,800 Water Treatment

WTP and Well Expansion 4,836,000$ $ 4,836,000 WTP Vehicle Replacement 25,000$ 25,000$ $ 50,000

Division Total -$ 4,861,000$ -$ 25,000$ -$ -$ $ 4,886,000 Waste Water Treatment

WWTP Expansion 5,000,000$ $ 5,000,000 WWTP Lime Tower SCADA 40,000$ $ 40,000 WWTP UV Disinfection System 600,000$ $ 600,000 WWTP Vehicle Replacement $ 25,000 $ 25,000

Division Total 40,000$ -$ -$ 5,600,000$ -$ 25,000$ $ 5,665,000

Water and Sewer Fund

FY16-17 FY17-18 FY18-19 FY19-20 FY20-21 Future YearsTotal Capital

CostsGeneral Fund Total 1,163,000$ 849,000$ 2,648,100$ 3,460,200$ 3,237,300$ 37,000$ 11,394,600$

Water & Sewer Fund Total 1,060,000$ 5,096,000$ 6,188,800$ 5,825,000$ 200,000$ 25,000$ 18,394,800$ CIP Total 2,223,000$ 5,945,000$ 8,836,900$ 9,285,200$ 3,437,300$ 62,000$ 29,789,400$


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Capital Projects List

Project Department Estimated

Cost

Outside Funds

Available City's

Obligation FY Funded

Potential Source(s) of

Financing Score

FD Emergency Generator Replacement Fire 67,000$ -$ 67,000$ 19-20 GF,IP 35.0Fire Apparatus Replacement Fire 400,000$ -$ 400,000$ Program CR,IP 72.5Fire Station 2 Construction Fire 1,500,000$ -$ 1,500,000$ FY IP 0.0Fire Vehicle Replacement Fire 125,000$ -$ 125,000$ Program GF 30.0Wall Street Station Renovations Fire 1,287,000$ -$ 1,287,000$ 19-20 GO,IP 82.5Downtown Revitalization Phase IV Planning 1,200,000$ 200,000$ 1,000,000$ 20-21 GR,IP 47.5Elizabeth St. Multi-use Path Planning 650,000$ 200,000$ 450,000$ 19-20 GR,IP,IG 62.5Police Station Addition/Remodel Police 2,100,000$ -$ 2,100,000$ 16-17,18-19 IP 90.0Police Vehicle Replacement Police 628,600$ -$ 628,600$ Program GF 62.5Fleet Vehicle Replacement PW-Garage 120,000$ -$ 120,000$ Program GF 20.0Grounds Cemetery Paving PW-Grounds 75,000$ -$ 75,000$ Program GF 25.0Grounds Equipment Replacement PW-Grounds 48,000$ -$ 48,000$ Program GF 20.0Grounds Maint. Building Renovations PW-Grounds 40,000$ -$ 40,000$ 16-17 GF 10.0Grounds Vehicle Replacement PW-Grounds 60,000$ -$ 60,000$ Program GF 20.0Sanitation Vehicle Replacement PW-Sanitation 605,000$ -$ 605,000$ Program IP 62.5NC 24 Connector Road PW-Streets 1,250,000$ -$ 1,250,000$ FY GO,IP 0.0NC 24 Parallel Road PW-Streets 1,250,000$ -$ 1,250,000$ FY GO,IP 0.0Pedestrian Plan Sidewalks PW-Streets 65,000$ -$ 65,000$ Program GF,GO 80.0Street Equipment Replacement PW-Streets 217,000$ -$ 217,000$ Program GF,IP 20.0Street Resurfacing PW-Streets 1,250,000$ -$ 1,250,000$ Program IG 85.0Street Vehicle Replacement PW-Streets 510,000$ -$ 510,000$ Program GF 20.0Automated Meter Reading Sytem PW-Utility Lines 700,000$ -$ 700,000$ FY IP,WS 0.0Hwy 421 Industrial Park Pump Station PW-Utility Lines 1,025,000$ -$ 1,025,000$ FY IP,WS 0.0NC 24 Expansion Utilities PW-Utility Lines 2,297,000$ -$ 2,297,000$ 18-19 IP,WS 75.0NC 24 Industrial Park Utilities PW-Utility Lines 3,566,800$ 2,433,400$ 1,133,400$ 18-19 IP,WS,GR 85.0NC 24 Parallel Utilities PW-Utility Lines 1,000,000$ -$ 1,000,000$ FY IP,WS 0.0Pierce St. Expansion Utilities PW-Utility Lines 500,000$ -$ 500,000$ 18-19 CR 60.0Utility Lines Equipment Replacement PW-Utility Lines 350,000$ -$ 350,000$ Program WS 20.0Utility Lines Materials Shelter PW-Utility Lines 30,000$ -$ 30,000$ 16-17 WS 20.0Utility Lines Rehab Program PW-Utility Lines 1,000,000$ -$ 1,000,000$ Program WS 80.0Utility Lines Vehicle Replacement PW-Utility Lines 100,000$ -$ 100,000$ Program WS 20.0WWTP Expansion PW-Wastewater 5,000,000$ -$ 5,000,000$ 19-20 PP,RB,GR 92.5WWTP Lime Tower SCADA PW-Wastewater 40,000$ -$ 40,000$ 16-17 WS 37.5WWTP UV Disinfection System PW-Wastewater 600,000$ -$ 600,000$ 19-20 IP 52.5WWTP Vehicle Replacement PW-Wastewater 25,000$ -$ 25,000$ Program WS 20.0WTP and Well Expansion PW-Water 4,836,000$ -$ 4,836,000$ 17-18 IP 80.0WTP Vehicle Replacement PW-Water 50,000$ -$ 50,000$ Program WS 20.0Bellamy Center Roof Recreation 81,000$ -$ 81,000$ 16-17 GF 50.0Bellamy Center Addition Recreation 3,500,000$ -$ 3,500,000$ FY IP 0.0Fisher Drive Park Playground Recreation 60,000$ -$ 60,000$ 19-20 GF,PP 47.5Multipurpose Field Lighting Recreation 175,000$ -$ 175,000$ FY GF 0.0Recreation Equipment Replacement Recreation 61,000$ -$ 61,000$ Program GF 20.0Recreation Vehicle Replacement Recreation 50,000$ -$ 50,000$ Program GF 20.0Royal Lane Park Renovations Ph 1 Recreation 450,000$ -$ 450,000$ 16-17,17-18 CR,GR,GF 65.0Royal Lane Park Renovations Ph 2 Recreation 1,200,000$ 200,000$ 1,000,000$ 20-21 GF,GO,PP 65.0Storage Building Replacement Recreation 25,000$ -$ 25,000$ 16-17 GF 10.0Sampson Center A/C Recreation 75,000$ -$ 75,000$ 17-18 GF 50.0

CR Capital Designated Funds PP Public-Private PartnershipGF General Fund Capital Outlay RB Revenue BondsGO General Obligation Bond SA Special AssessmentIG Intergovernmental Funds WS Water-Sewer Capital OutlayIP Installment Purchase GR Grant

FY=Future Years Program=Varying $ & Years Not Funded


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County Goals and Financial Policies

53

Upon each vacancy, fully evaluate the needs of the position to ensure an updated job description is posted allowing for recruitment of an individual the necessary skill set for being successful in the position. Additionally, evaluate the allocation of positions across all County departments to ensure allocations promote efficient and effective delivery of County services. Risk Management: Continue to collaborate with our consultant to reduce the rising health care costs for our self-funded insurance program in order to ensure the program is sustainable into the future. Continue to implement a wellness incentive whereby participating employees will get free biometric screening and health coaching along with a discounted rate for health insurance. In the longer term, participants will have targeted goals for the biometric measures that will have to be met. Ten-Year Capital Plan: Continue to maintain and monitor the capital improvement plan and fund needs from Capital Reserve Funds. A more detailed explanation of the Capital Improvement Plan can be found on page 159 of this document in the Capital and Debt Management Section.

Fiscal Policy Guidelines Objectives This fiscal policy will influence and guide the financial management practice of Moore County, North Carolina. A fiscal policy that is adopted, adhered to, and regularly reviewed is recognized as the cornerstone of sound financial management. Effective fiscal policy:

Contributes to the County's ability to insulate itself from fiscal crisis,

Enhances short term and long term financial credit ability by helping to achieve the highest credit and bond ratings possible,

Promotes long-term financial stability by establishing clear and consistent guidelines,

Directs attention to the total financial picture of the County rather than single issue areas,

Promotes the view of linking long-run financial planning with day to day operations, and

Provides the County Staff, the County Board of Commissioners and the County citizens a framework for measuring the fiscal impact of government services against established fiscal parameters and guidelines.

This policy will be reviewed annually by County staff with any changes to be approved by the Board of Commissioners.

To these ends, the following fiscal policy statements are presented.


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54

Capital Improvement Budget Policies

1. It is the responsibility of the County Board of Commissioners to provide for the capital facilities necessary to deliver municipal services to the citizens of the County, as well as facilities for the Moore County Public School and Sandhills Community College systems.

2. The County will consider all capital improvements in accordance with an adopted Capital Improvement Plan.

3. The Capital Improvement Plan is inclusive of Capital Improvements (renovations), Capital

Replacement (vehicles and heavy equipment) and Major Capital Projects (new buildings).

4. The County will develop a ten-year Capital Improvement Plan and review and update the plan annually. The Moore County Public Schools and the Community College System will submit their respective ten-year capital improvement requests annually and will provide a prioritization for the improvements within their request for the County Commissioner’s review.

5. The County will enact an annual capital budget based on the ten-year Capital Improvement Plan,

while considering changes in population, changes in real estate development, or changes in assumptions in the capital budget projections.

6. The County, in consultation with the Moore County Public School and Community College Systems,

will coordinate development of the capital improvement budget with development of the operating budget. Future operating costs associated with new capital improvements will be projected and included in operating budget forecasts.

7. The Capital Improvement Plan will include the estimated costs for the County to maintain all

County, Public School and Community College assets at a level adequate to protect the public’s welfare and safety, the County's capital investment and to minimize future maintenance and replacement costs. A maintenance and replacement schedule will be developed and followed based upon these estimates.

8. The County, in consultation with the Moore County Public School and Community College Systems, will identify the estimated costs and potential funding sources for each capital project proposal before it is submitted for approval.

9. The County will adopt the most cost effective financing consistent with prudent financial

management. Debt Policies

1. The County will confine long-term borrowing to capital improvements or projects that cannot be financed from current revenues except where approved justification is provided.

2. The County will take a balanced approach to capital funding utilizing debt financing; capital reserves

and pay-as-you go funding that will provide the least financial impact on the taxpayer. Pay-as-you-go funding will come from budgeted appropriations.


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3. When the County finances capital improvements or other projects by issuing bonds or entering into capital leases, it will repay the debt within a period not to exceed the expected useful life of the project. Target debt ratios will be annually calculated and included in the review of financial trends.

4. Net debt as a percentage of estimated market value of taxable property shall not exceed 2.0%. Net

debt is defined as any and all debt that is tax-supported.

5. Should the ratio of debt service expenditures as a percent of total governmental fund expenditures exceed 15.0% staff must request an exception from the Board of Commissioners stating the reason and length of time.

6. The County will retire tax anticipation debt, if any, annually and will retire bond anticipation debt

within six months after completion of the project.

7. Payout of aggregate outstanding tax-supported debt principal shall be no less than 55.0% repaid in 10 years.

(Note: Excludes Enterprise Fund Debt which is assumed to be Self-Supporting) Reserve Policies

1. Unassigned General Fund Balances will mean funds that remain available for appropriation by the County Board after all considerations for future expenditures, required restrictions defined by State statutes, and previous Board commitments have been calculated. The County will define these remaining amounts as “available fund balances”.

2. Available fund balances at the close of each fiscal year should be at least 15.0% of the Total Annual

Operating Budget of the County with a Targeted Policy equal to 20.0%.

3. The County Board may, from time-to-time, utilize fund balances that will reduce available fund balances below the 15.0% policy for the purposes of a declared fiscal emergency or other such global purpose as to protect the long-term fiscal security of Moore County. In such circumstances, after available fund balances have been calculated as part of closing-out a fiscal year, the Board will adopt a plan as part of the following year’s budget process to restore the available fund balances to the policy level within 36 months from the date of the budget adoption. If restoration cannot be accomplished within such time period without severe hardship to the County, then the Board will establish a different but appropriate time period.

4. Monies in excess of a 15.0% available fund balance will be transferred to a Capital Reserve Fund for

future use for a specific purpose within a specified time frame except as provided for in the Resolution for Funding for Dempsey Hall Student Center Expansion and Deferred Maintenance Cost for Sandhills Community College, adopted by the Moore County Board of Commissioners on June 17, 2014, effective July 1, 2014.


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Budget Development Policies

1. The County Budget Process begins with a Board of Commissioners Retreat to be held no later than January 31st of each year.

2. The Budget Process will be compliant with the North Carolina Local Government Budget and Fiscal

Control Act.

3. One-time or other special revenues will not be used to finance continuing County operations but instead will be used for funding special projects.

4. The County will pursue an aggressive policy seeking the collection of current and delinquent

property taxes, utility, license, permit and other fees due to the County. Cash Management / Investment Policies

1. It is the intent of the County that public funds will be invested to the extent possible to reduce the dependence upon property tax revenues. Funds will be invested with the chief objectives of safety of principal, liquidity, and yield, in that order. All deposits and investments of County funds will be in accordance with N.C.G.S. 159.

2. The Finance Director will establish a Cash Management Program that maximizes the amount of cash

available for investment. The Program shall address at a minimum; Accounts Receivable/Billings, Accounts Payable, Receipts, Disbursements, Deposits, Payroll and Debt Service Payments.

3. Up to one-half (50%) of the appropriations to Non-County Agencies and to non-debt-supported

capital outlays for County Departments can be encumbered prior to December 31. Any additional authorization shall require the County Manager’s written approval upon justification. The balance of these appropriations may be encumbered after January 1, upon a finding by the County Manager that there is a reasonable expectation that the County’s Budgeted Revenues will be realized.

4. The County will use a Central Depository to maximize the availability and mobility of cash for all

funds that can be legally and practically combined.

5. Cash Flows will be forecasted and investments will be made to mature when funds are projected to be needed to meet cash flow requirements.

6. Liquidity: No less than 20% of funds available for investment will be maintained in liquid

investments at any point in time.

7. Maturity: All investments will mature in no more than thirty-six (36) months from their purchase date.

8. Custody: All investments will be purchased “payment-verses-delivery” and if certificated will be held

by the Finance Officer in the name of the County. All non-certificated investments will be held in book-entry form in the name of the County with the County’s third party Custodian (Safekeeping Agent).


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9. Authorized Investments: The County may deposit County Funds into: Any Board approved Official

Depository, if such funds are secured in accordance with NCGS-159 (31). The County may invest County Funds in: the North Carolina Capital Management Trust, US Treasury Securities, US Agency Securities specifically authorized in GS-159 and rated no lower than “AAA”, and Commercial Paper meeting the requirements of NCGS-159 plus having a national bond rating.

10. Diversification: No more than 5% of the County’s investment funds may be invested in a specific

company’s commercial paper and no more than 20% of the County’s investment funds may be invested in commercial paper. No more than 25% of the County’s investments may be invested in any one US Agency’s Securities.

11. Allocation: Investment income will be allocated to each participating fund or account based on a fair

and equitable formula determined by the Finance Director. The County will maintain segregated accounts with the North Carolina Capital Management Trust for each of the fund types.

12. Reporting: Not less than twice a year the Finance Director will report to the Manager on the Cash

Flow Forecast for the ensuing twelve months. The Finance Director also will report on the interest earned in the past six months and on the current investment portfolio including: type of investment, purchase date, price, par amount, maturity date, coupon rate, and any special features. The Chief Finance Officer will also provide a Financial Summary inclusive of Investment Reporting to the Board of Commissioners as requested.

Enterprise Funds The County maintains Enterprise Funds (primarily water and wastewater) that are self-sustaining for both operational and capital purposes. The Enterprise Funds will adhere to the County’ Fiscal Policy with any exceptions being reported in this section.

These policies will allow for orderly expansion of services and to allow operation within the financial framework insuring efficiency while providing necessary services.

They promote long-term financial stability.

They insure future viability by guaranteeing rates that maintain constant in conjunction with inflation.

Budget Policies:

Enterprise Funds will develop a fifteen-year capital improvement plan, which will be reviewed and updated annually.

Any improvements required to meet new regulatory requirements or to meet changes in the service demands will be included in the annual budget request.

Service rates will be reviewed annually as part of the budget process.

Service rates will be adjusted based upon the December Consumer Price Index for Southeastern United States.

Service rates will be adjusted as necessary due to debt service obligations.

Each Enterprise Fund will maintain a retained earnings level that is no less than an amount equal to 8% of its operating expenses.

Each Enterprise Fund will maintain a Capital Reserve Fund sufficient to meet future capital needs.


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Individual projects costing over $500,000 will be financed.

Individual projects costing under $500,000 will be appropriated from either retained earnings or the Capital Reserve Fund.

Debt Policies:

Enterprise Funds will limit long-term borrowing to individual projects costing over $500,000.

Each Enterprise Fund is responsible for its own debt service.


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Chatham County FY 2016-2017 Budget Calendar

Deadline Actions

4 September 2015 Capital Improvements Program (CIP) forms distributed to agencies

5 October 2015 Forms due from agencies and departments for new/changed CIP projects

2 November 2015 Manager submits recommended CIP to the Board of Commissioners at a special meeting

Heads Up document due from departments

16 November 2015 Hold public hearing on the proposed CIP

17 November 2015 Work session on the proposed CIP

14 December 2015 Board adopts CIP

23 December 2015 Budget summit materials (trends, financial indicators, performance team recommendations, and departmental “Heads Up” document) submitted to Board of Commissioners

Work plan and new position forms distributed to departments

Weeks of January 4 and 11, 2016

Budget Summit: Board of Commissioners sets goals and guidelines for FY 2016-2017 budget

29 January 2016 Requests for new positions and work plans (with goals, objectives, and performance targets) due from departments

Remaining budget forms distributed to departments/agencies

4 March 2016 Budgets due from departments and agencies (except schools)

18 April 2016 Budget due from schools

2 May 2016 Budget submitted to Board of Commissioners and public at a special meeting

May 16 and 17, 2016 Official public hearings held in Pittsboro and Siler City

Late May and early June, 2016

Board of Commissioners holds 2 budget work sessions

By 30 June 2016 Board of Commissioners adopts budget (legal deadline)


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64 Budget Calendar for Fiscal Year 2017 2017 Fiscal Year Adopted Budget

Budget Calendar for Fiscal Year 2017

Date Budget ActivityOctober 13, 2015 Capital Improvement Program (CIP) Kickoff with Core Team

November 13, 2015 CIP Core Team members submit FY 2017-2023 Capital Requests

December 8, 2015 Operating Budget Kickoff with Extended Management Team

February 1, 2016 Departments submit FY 2017 Operating Budget Requests, Expansion Requests, Reduction Options

February 13, 2016 Board of Commissioners retreat to adopt goals and set priorities for the FY 2017 budget

January - April 2016 Capital Improvement Program and Operating Department budget meetings

March/April Board of Education and Wake Technical Community College submit formal budget requests

May 9, 2016 Review of FY 2017-2023 Recommended Capital Improvement Program at Board of Commissioners Work Session

May 16, 2016 Formal presentation of Recommended Budget and Improvement Plan to Board of Commissioners at regularly scheduled meeting

June 6, 2016 Public Hearing on Operating Budget, Capital Improvement Program and any proposed fee or tax changes

June 13, 2016 Special Budget Work Session with Board of Commissioners

June 20, 2016 Adoption of FY 2017 Operating Budget and FY 2017 - 2023 Capital Improvement Program at regular Board of Commissioners meeting


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The CIP Ranking Process

The CIP for FY2014-FY2018 is the first capital budget process since FY2009 whereby departments and business partners submitted new capital projects for consideration. The projects submitted for the CIP totaled 149 and 116 projects were approved. The County CIP Review Committee evaluated all submitted capital projects for FY2014-FY2018. The projects were prioritized based on the ranking criteria approved by the BOCC.

5% of capacity allocated for Open Space Land Acquisition

Rating Criteria Definition / Explanation FY14

Points

Mandates / Contractual Extent to which a project helps the County meets federal / state mandates or contractual obligations. (Mandates will be based on the Choice Matrix with definition for levels below). Mandated vs. Discretionary

No Program Choice / No Funding Choice No Program Choice / Funding Choice Program Choice / No Funding Choice Program Choice / Funding Choice Needed for Contractual obligation Not needed for Contractual obligation

5 - 20 0 - 5

20 15 10 5 5 0

Building Safety Extent to which a project addresses a safety hazard to public or employees based on risk level. Definition for levels is below. Risk is Critical Risk is High Risk is Low No Risk involved

0 – 20

20 13 6 0

Economic Outcome Extent to which project enhances economic development in county using the Business Investment Program model. 100% - 76% Net Present Value 75% - 51% Net Present Value 50% - 26% Net Present Value 25% - 1% Net Present Value 0% Net Present Value

0 – 20

20 15 10 5 0

Funding Source Extent to which project construction can be financed with County revenue. Non-County revenue examples are fees, grants, donations, etc.

0% County-funded Up to 50% County-funded 51 -75% County-funded 76 - 99% County-funded 100% County-funded

0 – 15

15 8 6 3 0

Board Priority Linkage of project to one of the Board’s operating priority levels. Priority 1 Priority 2 Priority 3 Priority 4 Priority 5 Priority 6 Priority 7

1 – 10 10 8 6 4 3 2 1

Operating Budget Outcome **If all projects ranked for a dept. total more than 10% of total county funded for that dept., points will be reduced accordingly

How project impacts the department’s current County-funded operating budget upon completion. Decrease operating budget No operating budget impact Increase of not more than 3% of Department County-funded budget Increase of not more than 5% of Department County-funded budget Increase of over 5% of Department County-funded budget

0 – 10

10 8 7 3 0

Joint Use Savings Extent to which project is a collaboration with other governmental entities and/or business partners (County, City, Towns, CMS, CPCC, Library).

Capital savings of 26% - 50% of County-funded Capital savings of 11% - 25% of County-funded Capital savings of 1% - 10% of County-funded No Capital savings

0 – 10

10 7 3 0

Growth Extent to which population has increased. 127% or more 96% - 126% 64% - 95% 33% - 63% 32% or less

3 – 15 15 12 9 6 3

Timeliness Extent to which all projects started in the fiscal year requested in. If a project did not start in the fiscal year requested a penalty will be assessed on all unranked projects during the next ranking process.

(10)


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Grant and Loan Sources


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NC Department of Commerce Loans and Grants (from website)

Community Development Block Grant, Economic Development Program https://edpnc.com/incentives/community-development-block-grant-program-economic-development/ The Community Development Block Grant, Economic Development Program (CDBG ED) is administered by the North Carolina Department of Commerce; it provides grants to local governments for public infrastructure development. Funds are administered based on an annual federal allocation to North Carolina from the U.S. Department of Housing and Urban Development (HUD) and are made available to most local governments for economic development projects. Companies cannot apply directly for this funding, but instead work collaboratively with a local government applicant. Under the authority of Title I of the U.S. Housing and Community Development Act of 1974 (as amended), the CDBG ED Program in North Carolina is designed to benefit low- and moderate-income persons through job creation. Funding eligibility is contingent upon the creation of permanent, full-time jobs meeting the following qualifying condition: at least 60% must be made available to persons whose household income over the previous 12 months was less than 80% of the median income for the area. For purposes of the CDBG ED Program, income eligibility is determined from data published annually for HUD’s Section 8 housing program. The N.C. Department of Commerce annually ranks the state’s 100 counties based on economic well-being and assigns each a tier designation. The 40 most distressed counties are designated as Tier 1, the next 40 as Tier 2 and the 20 least distressed as Tier 3. This tier system is incorporated into CDBG ED to encourage economic activity in the less prosperous areas of the state. For more information on county tier designations, visit our County Development Tier Designations page. CDBG ED awards are limited to $1 million per project to local governments located in Tier 1 and 2 counties and $750,000 to local governments located in Tier 3 counties. Awards for priority projects (primarily manufacturing) range from $10,000 to $15,000 per job. Awards for projects other than manufacturing range from $4,000 to $10,000 per job. The local government must provide at least one dollar for every three dollars provided by CDBG ED. The state’s 25 most economically distressed counties are not required to provide a local match. Eligible Use CDBG ED provides funding for the construction of public infrastructure to a site, in order to enable a company to locate or expand. Eligible uses include:

Upgrade or repair of public drinking water or wastewater treatment plants Upgrade, extension or repair of public water or sewer lines Extension of publicly owned natural gas lines (with an executed pipeline

construction, operating and resale agreement) Installation or extension of public broadband infrastructure


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Construction of publicly owned access roads not owned or funded by the North Carolina Department of Transportation

Construction of public rail spur improvements Basic Requirements for Eligibility All counties in North Carolina, except for Wake, Mecklenburg and Cumberland, and all municipalities, except for 24 entitlement communities, are eligible to apply for CDBG ED funding. Entitlement communities that receive CDBG ED Program funds directly from HUD are Asheville, Burlington, Cary, Chapel Hill, Charlotte, Concord, Durham, Fayetteville, Gastonia, Goldsboro, Greensboro, Greenville, Hickory, High Point, Jacksonville, Kannapolis, Lenoir, Morganton, New Bern, Raleigh, Rocky Mount, Salisbury, Wilmington and Winston-Salem. The town of Holly Springs in Wake County and the town of Linden in Cumberland County opted to participate in the statewide CDBG ED Program rather than that grant’s entitlement community program. For this reason, they receive funding through the statewide CDBG ED Program. CDBG ED funding will NOT be made available to projects that:

Assist companies that transfer jobs within the state or from another state, unless the company is expanding into the new area by adding a branch, affiliate or subsidiary while maintaining employment levels an existing facility. Jobs that are transferred from other facilities may not be counted toward the job-creation commitment;

Assist not-for-profit companies or organizations; Propose to assist companies that are in bankruptcy, or Assist sports teams, including motorsports.

In addition, any one of the following situations would render a company ineligible for CDBG ED funding, if it occurred prior to the grant award:

Execution of construction contracts; Placement of equipment purchase orders for the project site; Execution of a binding option for the purchase of an existing facility with a deposit

that is so large that the option constitutes a sales contract; Execution of sales contracts without a condition contingency for CDBG ED funding,

or the Public announcement of a project that includes no expression of the need for CDBG

ED participation, unless previously approved by CDBG ED staff. Contact For more information about the Community Development Block Grant Economic Development Program, contact the Economic Development Partnership of North Carolina at (919) 447-7744 or [email protected]. The Economic Development Partnership of North Carolina does not award or administer this incentive. All economic development incentives are awarded and administered by the North Carolina Department of Commerce.


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Utility Account https://edpnc.com/incentives/utility-account/ North Carolina’s Utility Account provides infrastructure grants to local governments in Tier 1 and Tier 2 counties. The North Carolina Department of Commerce administers the Utility Account. All applications are reviewed and approved by the Secretary of Commerce. Grant amounts depend on funding availability and each project’s relative merits. Grants are awarded to local governments for infrastructure improvements that are publicly owned and maintained. The applicant must demonstrate that the project is expected to lead to job creation in the near future. The grant amount depends on the number of new, full-time jobs created and cannot exceed $10,000 per job created or $500,000 per project. The N.C. Department of Commerce annually ranks the state’s 100 counties based on economic well-being and assigns each a tier designation. The 40 most distressed counties are designated as Tier 1, the next 40 as Tier 2 and the 20 least distressed as Tier 3. This tier system is incorporated into the Utility Account to encourage economic activity in the less prosperous areas of the state. For more information about county tier designations, visit our County Development Tier Designations page. Utility Account grants require a local match of at least one dollar for every three dollars awarded by the Utility Account. However, no local match is required in the state’s 25 most-distressed counties. Federal or state grant funds may not be used for the local match. Eligible Use The Utility Account provides funding for the construction of public infrastructure to a site in order to enable a company to locate or expand. Eligible uses include:

Upgrade or repair of public drinking water or wastewater treatment plants Upgrade, extension or repair of public water or sewer lines Extension of publicly owned natural gas lines (with an executed pipeline

construction, operating and resale agreement) Installation or extension of public broadband infrastructure Construction of publicly owned access roads not owned or funded by the North

Carolina Department of Transportation Construction of public rail spur improvements

Basic Requirements for Eligibility To be eligible for funding from the Utility Account, the Secretary of Commerce must determine:

The project is in a Tier 1 or Tier 2 county; Jobs created (in no more than three years) will have a measurable, favorable impact

on the project’s immediate location and will be commensurate with the size of the grant. The application must show the number and types of jobs to be created;

Applicant has demonstrated capability to operate the facility; Funding will not result in abandonment of an existing facility, except for

obsolescence, lack of labor or site limitations, and The proposed project will not have a significant adverse effect on the environment.


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Contact For more information about the Utility Account, contact the Economic Development Partnership of North Carolina at (919) 447-7744 or [email protected]. Rural Division, Economic Infrastructure Program Public Infrastructure https://edpnc.com/incentives/economic-infrastructure-program/ The Economic Infrastructure Program is administered by the Rural Division of the North Carolina Department of Commerce; it provides grants to local governments to assist with public infrastructure projects that will lead to the creation of new, full-time jobs. The N.C. Department of Commerce annually ranks the state’s 100 counties based on economic well-being and assigns each a tier designation. The 40 most distressed counties are designated as Tier 1, the next 40 as Tier 2 and the 20 least distressed as Tier 3. This tier system is incorporated into the Economic Infrastructure Program to encourage economic activity in the less prosperous areas of the state. For more information about county tier designations, visit our County Development Tier Designations page. Funding levels are based on the criteria below, as long as a sufficient number of jobs is committed to support the requested amount. Up to $12,500 per full-time job, maximum award of $500,000

Project is located in a Tier 1 or Tier 2 county; Company type is represented in the program’s Priority Industry Table; New jobs will meet the county wage standard, and The company will provide health insurance and pay at least 50% of the premiums for

participating employees. Up to $10,000 per full-time job, maximum award of $500,000

Project is located in a Tier 1 or Tier 2 county; Company type is NOT represented in the program’s Priority Industry Table; New jobs will meet the county wage standard, and The company will provide health insurance and pay at least 50% of the premiums for


Project is located in a Tier 1 or Tier 2 county; Company type is NOT represented in the program’s Priority Industry Table; New jobs will NOT meet the county wage standard, and The company will NOT provide health insurance and pay at least 50% of the premiums for


Project is located in a Tier 3 county; Company type is represented in the program’s Priority Industry Table; New jobs will meet the county wage standard, and The company will provide health insurance and pay at least 50% of the premiums for

participating employees.


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Eligible Use The Economic Infrastructure Program provides funding for the construction of public infrastructure to a site, in order to enable a company to locate or expand. Eligible uses include:

Upgrade or repair of public drinking water or wastewater treatment plants Upgrade, extension or repair of public water or sewer lines Extension of publicly owned natural gas lines (with an executed pipeline construction,

operating and resale agreement) Installation or extension of public broadband infrastructure Construction of publicly owned access roads not owned or funded by the North Carolina

Department of Transportation Construction of public rail spur improvements

Basic Requirements for Eligibility Eligible applicants are local governments in North Carolina. Priority is given to projects in a Tier 1 or Tier 2 county, or a rural census tract in a Tier 3 county. Contact For more information about the Economic Infrastructure Program, contact the Economic Development Partnership of North Carolina at (919) 447-7744 or [email protected]. Community Development Block Grant, Building Reuse Program Building Reuse https://edpnc.com/incentives/community-development-block-grant-building-reuse-program The Community Development Block Grant, Building Reuse Program (CDBG Building Reuse) is administered by the North Carolina Department of Commerce; it provides funds to renovate and upfit vacant industrial and commercial buildings for economic development purposes. CDBG Building Reuse grants are available to local government applicants that work in conjunction with a company intending to operate in a vacant building. The company’s new or expanding operations must result in the creation of permanent, full-time jobs. Under the authority of Title I of the U.S. Housing and Community Development Act of 1974 (as amended), the CDBG Building Reuse Program in North Carolina is designed to benefit low- and moderate-income persons through job creation. Funding eligibility is contingent upon the creation of permanent, full-time jobs meeting the following qualifying condition: at least 60% must be made available to persons whose household income over the previous 12 months was less than 80% of the median income for the area. For purposes of the CDBG Building Reuse Program, income eligibility is determined from data published annually for the Section 8 housing program of the U.S. Department of Housing and Urban Development (HUD). A CDBG Building Reuse award is limited to $750,000 per local government. The grant amount cannot exceed $20,000 per job for priority projects (primarily manufacturing) and $12,000 per job for all other projects. The local government must provide at least one dollar for every dollar provided by CDBG Building Reuse. Matching funds may come from the building owner or from the project company.


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CDBG Building Reuse and the Rural Division, Building Reuse Program may be combined to support a maximum of 50% of renovation costs. Each program must be able to identify separate jobs to be created. When the Rural Division, Building Reuse Program and CDBG Building Reuse funds are used in the same project, CDBG Building Reuse maximum funding for the latter is $10,000 per job for priority projects and $6,000 for other projects. Eligible Use Eligible expenses incurred after a grant has been awarded include: materials and labor to install HVAC, electrical, plumbing, fire alarm/suppression system, roofing, flooring, carpentry, drywall, paint and other renovation or upfitting costs. Prohibited costs that may not be submitted for reimbursement or to meet the matching funds requirement include: building purchase, architectural costs, engineering costs, permit fees, surveys, legal fees, machinery and equipment, telephone hardware and software, computer hardware and software, furnishings, paving, fencing, kitchen equipment and refrigeration equipment. Basic Requirements for Eligibility CDBG Building Reuse projects must involve specific CDBG Building Reuse-eligible activities that will create or retain private-sector full-time jobs. All counties in North Carolina, except for Wake, Mecklenburg and Cumberland, and all municipalities except for 24 entitlement communities, are eligible to apply for CDBG Building Reuse funding. Entitlement communities that receive CDBG Building Reuse Program funds directly from HUD are Asheville, Burlington, Cary, Chapel Hill, Charlotte, Concord, Durham, Fayetteville, Gastonia, Goldsboro, Greensboro, Greenville, Hickory, High Point, Jacksonville, Kannapolis, Lenoir, Morganton, New Bern, Raleigh, Rocky Mount, Salisbury, Wilmington and Winston-Salem. The town of Holly Springs in Wake County and the town of Linden in Cumberland County opted to participate in the statewide CDBG Building Reuse Program rather than that grant’s entitlement community program. For this reason, they receive funding through the statewide CDBG Building Reuse Program. To be eligible, documentation must be provided showing the building has been vacant 30 consecutive days or more prior to the date of the pre-application conference. Contact For more information about the Community Development Block Grant Building Reuse Program, contact the Economic Development Partnership of North Carolina at (919) 447-7744 or [email protected].


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Rural Division, Building Reuse Program Building Reuse https://edpnc.com/incentives/building-reuse-program The Building Reuse Program is administered by the Rural Division of the North Carolina Department of Commerce; it provides grants to local governments for two purposes: the renovation of vacant buildings and the renovation or expansion of a building occupied by an existing North Carolina company wishing to expand in its current location. The N.C. Department of Commerce annually ranks the state’s 100 counties based on economic well-being and assigns each a tier designation. The 40 most distressed counties are designated as Tier 1, the next 40 as Tier 2 and the 20 least distressed as Tier 3. This tier system is incorporated into the Building Reuse Program to encourage economic activity in the less prosperous areas of the state. For more information on county tier designations, visit our County Development Tier Designations page. Vacant Building Grants are available to support vacant building renovation. A speculative building that has never been occupied is not eligible unless it is at least five years old. Eligible buildings must have been vacant for at least three months prior to the application deadline. Funding levels for projects are outlined below: Up to $12,500 per full-time job, maximum award of $500,000

Project is located in a Tier 1 or Tier 2 county; Company type is represented in the program’s Priority Industry Table; New jobs will meet the county wage standard, and The company will provide health insurance and pay at least 50% of the premiums for


Project is located in a Tier 1 or Tier 2 county; Company type is NOT represented in the program’s Priority Industry Table; New jobs will meet the county wage standard, and The company will provide health insurance and pay at least 50% of the premiums for


Project is located in a Tier 1 or Tier 2 county; Company type is NOT represented in the program’s Priority Industry Table; New jobs will NOT meet the county wage standard, and The company will NOT provide health insurance and pay at least 50% of the

premiums for participating employees. Existing Building Grants are available to support the renovation or expansion of buildings occupied by a company operating in North Carolina for at least 12 months.


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Up to $10,000 per full-time job, maximum award of $500,000 Project is located in a Tier 1 or Tier 2 county; Company type is represented in the program’s Priority Industry Table; New jobs will meet the county wage standard, and The company will provide health insurance and pay at least 50% of the premiums for

participating employees. Eligible Use Eligible expenses incurred after a grant has been awarded include: materials and labor to install HVAC, electrical, plumbing, fire alarm/suppression system, roofing, flooring, carpentry, drywall, paint and other renovation or upfitting costs. Prohibited costs that may not be submitted for reimbursement or to meet the matching funds requirement include: building purchase, architectural costs, engineering costs, permit fees, surveys, legal fees, machinery and equipment, telephone hardware and software, computer hardware and software, furnishings, paving, fencing, kitchen equipment and refrigeration equipment. Basic Requirements for Eligibility Eligible applicants are local governments located in a Tier 1 or Tier 2 county. In Tier 1 or Tier 2 counties, priority will be given to towns or communities with populations of fewer than 5,000. The local government must contribute at least 5% of the total eligible expenditures. The cash match must come from local government resources and may not be derived from other state or federal grant funds. Contact For more information about the Building Reuse Program, contact the Economic Development Partnership of North Carolina at (919) 447-7744 or [email protected]. Rural Building Demolition Program http://www.nccommerce.com/ruraldevelopment/rural-grants-programs/building-demolition *Guidelines and Application are subject to change at the discretion of the Rural Infrastructure Authority The Demolition Grant Program under the Rural Grants/Programs Section of the North Carolina Department of Commerce will provide grants to local governments to support the demolition of a vacant building to encourage site rehabilitation and site availability for economic development purposes. Eligible applicants are units of local government located in either a Tier 1 or Tier 2 county, or a rural census tract in a Tier 3 county. The tier designations can be found on the NC Department of Commerce website at http://www.nccommerce.com/research-publications/incentive-reports/county-tier-designations. In Tier 1 or Tier 2 counties, priority will be given to towns or communities with populations less than 5,000.


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As prescribed in N.C.G.S. 143B-472.127(a)(2) a rural census tract is an area having a population density of less than 500 people per square mile according to the most recent decennial federal census. The rural census tract designations can be found at http://accessnc.commerce.state.nc.us/gis/web_development/rural_development.html. Funding Availability: • Up to $75,000 for buildings 100,000 square feet or less • Up to $150,000 for buildings over 100,000 square feet • Building located in Tier 1, Tier 2, or rural census tract of a Tier 3 county

Eligibility: • The unit of local government (“applicant”) must pass a Resolution approving the

demolition. If multiple political jurisdiction tax the property or building, all of the jurisdictions must pass a Resolution approving the demolition.

• The building must be vacant for three years prior to the proposed demolition. • The unit of local government must have control of the property at the time of grant award,

either through a contractual arrangement or ownership. • The local government must contribute at least 25% of the total project cost as a cash match.

The cash match shall come from local resources and may not be derived from other State or federal grant funds. If awarded funds towards the demolition project, certain pre-development costs may be counted towards the local match requirement up to one year prior to the award date of the grant.

• There must be a reasonable expectation of private sector investment locating on the site. Properties having residential zoning are not eligible for this grant. The proposed property must be zoned for non-residential purposes for a minimum of five (5) years after the award of the grant

• The only eligible expense is building demolition and removal. • Pre-development costs are not eligible for payment from the grant. • Upon completion of the project the property must be site ready for development. • The site shall not be used for locating public facilities, including parking lots, parks or

recreational facilities. • The unit of local government receiving funds under this grant program shall comply with

Chapter 143, Article 8 of the N.C. General Statutes, and any other applicable state regulations regarding procurement. Local governments are cautioned that funds received for the project from other sources may have additional procurement regulations that also must be followed. Grantees are encouraged to consult with their attorney to ensure compliance with all applicable regulations that govern procurement for the proposed project.

• The unit of local government receiving funds under this grant program shall comply with all federal, state, and local laws, rules, regulations, and ordinances applicable to the project and to the grants pertaining thereto, including (without limitation), requirements relating to procurement, environmental standards and permitting standards where applicable. Grantees are encouraged to consult with their attorney to ensure compliance with all applicable demolition requirements.

• Local government recipients will be subject to state audit and reporting requirements.


Page 34

Application Deadlines and Submittal Requirements: The completed application must be received by 5:00 p.m. on the deadline date.

Full Application Deadlines Date of Award

September 20, 2016 October 20, 2016

November 1, 2016 December 15, 2016

January 3, 2017 February 16, 2017

March 20, 2017 April 20, 2017

May 2, 2017 June 22, 2017

Contact Information: Melody Adams Director, Rural Grant Programs Rural Economic Development Division NC Department of Commerce 919-814-4661 (Office) [email protected] Mailing Address: 4346 Mail Service Center Raleigh, NC 27699-4346 Physical Address: 301 North Wilmington Street Raleigh, NC 27601


Page 35

NC Department of Environmental Quality Loans and Grants (from website)

Clean Water State Revolving Fund http://portal.ncdenr.org/web/wi/cwsrf Overview

• The Clean Water Fund has been capitalized for 20 years and can fund individual projects up to $30 million.

• The Clean Water State Revolving Fund (CWSRF) Program was created by the 1987 amendments to the Federal Clean Water Act.

• Congress provides funds for states to establish revolving loan programs for funding of wastewater treatment facilities and projects associated with estuary and nonpoint source programs.

• States provide 20% matching funds. Types of Funding Available

• Low-interest loans (1/2 of market interest rates) • Limited amount of principal forgiveness loans • 0% interest loans available for Green Projects and for rehabilitation projects for certain

local government units Eligible Applicants

• Local Government Units (counties, cities, towns, sanitary districts, etc.) Eligible Projects

• Wastewater treatment • Wastewater collection • Reclaimed water • Stormwater BMPs

• Stream restoration • Energy efficiency at treatment works

or collection systems

Key Program Requirements

• Loan maximum is ½ the amount available per funding cycle. • Construction must start within 24 months of Letter of Intent to Fund. • Closing fee of 2% (which cannot be financed). • Local Government Commission (LGC) must approve all loans.

Applications

• The CWSRF Program has two funding cycles per year, typically in March and September.

• Refer to Funding Program Application Information for detailed information on application deadlines and requirements.

• Contact Anita E. Reed, PE at (919) 707-9174 or via email at [email protected] with application questions.


Page 36

Drinking Water State Revolving Fund http://portal.ncdenr.org/web/wi/dwsrf Overview

• The Drinking Water State Revolving Fund was created with the 1996 amendments to the Safe Drinking Water Act.

• Because the DWSRF is federally-seeded, the loans are subject to additional federal regulations regarding environmental review, outreach for disadvantaged business enterprises, payroll (Davis Bacon and related Acts), etc.

• Congress provides funds for states to establish revolving loan programs for funding of drinking water projects.

• States provide 20% matching funds. Types of Funding Available

• Low-interest loans (1/2 of market interest rates) • Limited amount of principal forgiveness loans

Eligible Applicants

• Local Government Units (counties, cities, towns, sanitary districts, etc.) • Non-profit Water Corporations • Investor-Owned Drinking Water Corporations

Eligible Projects

• Source, treatment, storage, or transmission & distribution systems Key Program Requirements

• Loan maximum is ½ the amount available per funding cycle. • Construction must start within 24 months of Letter of Intent to Fund. • Closing fee of 2% (which cannot be financed). • Local Government Commission (LGC) must approve all loans.

Applications

• The DWSRF Program has one funding cycle per year, typically in September. • Refer to Funding Program Application Information for detailed information on

application deadlines and requirements. • Contact Vincent Tomaino, PE at (919) 707-9058 or via email at

[email protected] with application questions. Community Development Block Grant-Infrastructure http://portal.ncdenr.org/web/wi/cdbg-i Overview

• In 2013, the North Carolina General Assembly allocated Community Development Block Grant funds to the Infrastructure program and transferred funds to the Division of Water Infrastructure to administer.


Page 37

• The purpose of these funds is to construct public water and sewer infrastructure to mitigate public and environmental health problems in areas where the percentage of low to moderate income persons is at least 51 percent.

• Community Development Block Grants for other for other types of projects are available through the North Carolina Department of Commerce.

Types of Funding Available

• Grants Eligible Applicants

• Non-entitlement units of General Local Government, excluding water/sewer districts and other single purpose government units

Eligible Projects

• Drinking water and wastewater infrastructure projects in areas that meet the HUD Low and Moderate income (LMI) threshold.


• Maximum award is $2 million over a 3-year period. • Local governments may submit multiple applications but will only be awarded funding

for one project in each funding round. Applications

• The CDBG-Infrastructure Program has one funding cycle per year, typically in September.

• Refer to Funding Program Application Information for detailed information on application deadlines and requirements.

• Contact Julie Haigler Cubeta at (919) 707-9189 or via email at [email protected] with application questions.

State Wastewater and Drinking Water Reserve Programs http://portal.ncdenr.org/web/wi/state-programs Overview The State Wastewater Reserve and Drinking Water Reserve Programs provide grants and loans for planning, design and construction of critical water infrastructure. Grant dollars are awarded according to affordability criteria developed based on the definition found in NCGS 159G-20.(1). The purpose of the affordability criteria is to stretch limited grant dollars further by targeting applicants who demonstrate the most need and can least afford the project. The criteria is used for (1) determining eligibility for grant funding and (2) determining the percentage of the project that would be funded by grants. Affordability criteria guidance can be found on the Application Forms & Resources page of the Division's website. Types of Funding Available

• Grants • Loans


Page 38

Eligible Applicants

• Local Government Units • Only available to the extent that other funding sources are not reasonably available to the

applicant. Eligible Projects

• Wastewater collection systems and treatment works • Public water system projects


• The amount of grants for each system awarded for three consecutive fiscal years may not exceed $3 million.

• The amount of targeted interest loans for each system awarded for three consecutive fiscal years may not exceed $3 million.

Questions

• For wastewater projects, contact Anita E. Reed, PE at (919) 707-9174 or via email at [email protected]

• For drinking water projects, contact Vincent Tomaino, PE at (919) 707-9058 or via email at [email protected]


Page 39

What does this program do?This program provides affordable funding to develop essential community facilities in rural areas. An essential community facility is defined as a facility that provides an essential service to the local community for the orderly development of the community in a primarily rural area, and does not include private, commercial or business undertakings.

Who may apply for this program?Eligible borrowers include:• Public bodies

Community Facilities Direct Loan & Grant

What is an eligible area?Rural areas including cities, villages, townships and towns including Federally Recognized Tribal Lands with no more than 20,000 residents according to the latest U.S. Census Data are eligible for this program.

How may funds be used?Funds can be used to purchase, construct, and/or improve essential community facilities, purchase equipment and pay related project expenses.

Examples of essential community facilities include:

• Healthcare facilities such as hospitals, medical clinics, dental clinics, nursing homes or assisted living facilities

• Public facilities such as town halls, courthouses, airport hangars or street improvements

• Community support services such as child care centers, community centers, fairgrounds or transitional housing

• Public safety services such as fire departments, police stations, prisons, police vehicles, fire trucks, public works vehicles or equipment

• Educational services such as museums, libraries or private schools

• Utility services such as telemedicine or distance learning equipment

• Local food systems such as community gardens, food pantries, community kitchens, food banks, food hubs or greenhouses

For a complete list see Code of Federal Regulations 7 CFR, Part 1942.17(d) for loans; 7 CFR, Part 3570.62 for grants.

• Community-based nonprofit corporations • Federally recognized Tribes

What kinds of funding are available?• Low interest direct loans

• Grants

• A combination of the two above, as well as our loan guarantee program. These may be combined with commercial financing to finance one project if all eligibility and feasibility requirements are met.

What are the funding priorities?Priority point system based on population, median household income

• Small communities with a population of 5,500 or less

• Low-income communities having a median household income below 80% of the state nonmetropolitan median household income.

What are the terms?Funding is provided through a competitive process.

Direct Loan:

• Loan repayment terms may not be longer than the useful life of the facility, state statutes, the applicants authority, or a maximum of 40 years, whichever is less.

• Interest rates are set by Rural Development, contact us for details and current rates.

• Once the loan is approved, the interest rate is fixed for the entire term of the loan, and is determined by the median household income of the service area.

• There are no pre-payment penalties.

• Contact us for details and current interest rates applicable for your project.


Page 40

http://www.census.gov

http://www.census.gov

http://www.ecfr.gov/cgi-bin/text-idx?SID=dc79cb034816aebec887eb1b64c8cce7&node=pt7.15.3570&rgn=div5

http://www.rd.usda.gov/programs-services/community-facilities-guaranteed-loan-program

http://www.rd.usda.gov/programs-services/community-facilities-guaranteed-loan-program

Add contact information

Community Facilities Direct Loan & Grant

NOTE: Because citations and other information may be subject to change please always consult the program instructions listed in the section above titled “What Law Governs this Program?” You may also contact your local office for assistance. You will find additional forms, resources, and program information at www.rd.usda.gov. USDA is an equal opportunity provider, employer, and lender.

Last Updated February 2015

What are the terms? (continued)Grant Approval:

Grant funds must be available. Applicant must be eligible for grant assistance, which is provided on a graduated scale with smaller communities with the lowest median household income being eligible for projects with a higher proportion of grant funds. Grant assistance is limited to the following percentages of eligible project costs:

Maximum of 75 percent when the proposed project is:

• Located in a rural community having a population of 5,000 or fewer; and

• The median household income of the proposed service area is below the higher of the poverty line or 60 percent of the State nonmetropolitan median household income.









• The median household income of the proposed service area is below the higher of the poverty line or 90 percent of the State nonmetropolitan median household income. The proposed project must meet both percentage criteria. Grants are further limited.

Are there additional requirements?• Applicants must have legal authority to borrow money,

obtain security, repay loans, construct, operate, and maintain the proposed facilities

• Applicants must be unable to finance the project from their own resources and/or through commercial credit at reasonable rates and terms

• Facilities must serve rural area where they are/will be located

• Project must demonstrate substantial community support

• Environmental review must be completed/acceptable

How do we get started?Contact your local offices to discuss your specific project. Applications are accepted year round

Who can answer questions?Contact our local office that serves your area.

What governs this program?• Direct Loan: 7 CFR Part 1942, Subpart A

• Grant: 7 CFR Part 3570, Subpart A


Page 41

http://www.rd.usda.gov/contact-us/state-offices

http://www.rd.usda.gov/programs-services/delta-health-care-services-grants



USDA Grants (from USDA website) Water & Environmental Programs http://www.rd.usda.gov/programs-services/all-programs/water-environmental-programs To apply for Water & Environmental Grant and Loan funding, visit RD Apply, our newly developed, online application system Through Rural Utilities Service Water and Environmental Programs (WEP), rural communities obtain the technical assistance and financing necessary to develop drinking water and waste disposal systems. Safe drinking water and sanitary waste disposal systems are vital not only to public health, but also to the economic vitality of rural America. Rural Development is a leader in helping rural America improve the quality of life and increase the economic opportunities for rural people. WEP provides funding for the construction of water and waste facilities in rural communities and is proud to be the only Federal program exclusively focused on rural water and waste infrastructure needs of rural communities with populations of 10,000 or less. WEP also provides funding to organizations that provide technical assistance and training to rural communities in relation to their water and waste activities. WEP is administered through National Office staff in Washington, DC, and a network of field staff in each State. Historically Low Interest Rates USDA Rural Development Water and Environmental Programs: • Circuit Rider Program • Emergency Community Water Assistance Grants • Grants for Rural and Native Alaskan Villages • Household Water Well System Grants • Individual Water & Wastewater Grants • SEARCH - Special Evaluation Assistance for Rural Communities and Households • Solid Waste Management Grants • Water & Waste Disposal Grants to Alleviate Health Risks on Tribal Lands and Colonias • Water & Waste Disposal Loans & Grants • Water & Waste Disposal Loan Guarantees • Water & Waste Disposal Predevelopment Planning Grants • Water & Waste Disposal Revolving Loan Funds • Water & Waste Disposal Technical Assistance & Training Grants Economic Impact Initiative Grants http://www.rd.usda.gov/programs-services/economic-impact-initiative-grants


Page 42

What does this program do? This program provides funding to assist in the development of essential community facilities in rural communities with extreme unemployment and severe economic depression. An essential community facility is one that provides an essential service to the local community, is needed for the orderly development of the community, serves a primarily rural area, and does not include private, commercial or business undertakings. Who may apply for this program? • Public bodies • Non-profits • Federally-recognized Tribes ι What is an eligible area? • Rural areas including; cities, villages, townships, towns and federally-recognized Tribal

Lands ι, with no more than 20,000 residents that have a “Not Employed Rate”ι greater than 19.5%

• The median household income of a community being served must be below 90% of the state non-metropolitan median household income for grant eligibility

• Grant assistance is based on a graduated scale determined by population, median household income, total project costs and financial need

How may funds be used? To construct, enlarge or improve community facilities for health care, public safety and public service. Grants may be made in combination with other financial assistance such as a Community Facilities direct or guaranteed loan, applicant contribution or funding from other sources. Examples of essential community facilities include: • Health Care: hospitals, medical clinics, dental clinics, nursing homes, assisted-living

facilities • Public Facilities: city/town/village halls, courthouses, airport hangers, street improvements • Community Support Services: child care centers, community centers, fairgrounds,

transitional housing • Public Safety: fire halls, police stations, prisons, jails, police vehicles, fire trucks, public

works vehicles and equipment • Educational: museums, libraries, private schools • Utility: telemedicine, distance learning • Local Food Systems: community gardens, food pantries, community kitchens, food banks,

food hubs, greenhouses, kitchen appliances • For a complete list, see Code of Federal Regulations (CFR) 3570.7 What kind of funding is available? • Grants up to 75% of eligible project cost based on need and funding availability • Applicant must be eligible for grant assistance, which is determined by the population and

median household income of the service area • Grant funds must be available


Page 43

Are there additional requirements? • Applicants must be unable to finance the project from their own resources and/or through

commercial credit at reasonable rates and terms • Facilities must serve the rural area where they are/will be located • Projects must demonstrate substantial community support • Environmental review must be completed and determined to be acceptable • Priorities are given to projects related to public health and safety, energy efficiency and

education How do we get started? • Contact your local office to discuss your specific project • Applications for this program are accepted through your local office year round • Program resources are available online (includes forms, guidance and certifications) Who can answer questions? Contact your local office. NOTE: Because citations and other information may be subject to change, please always consult the program instructions listed in the section above titled "What Law Governs this Program?" You may also contact your local office for assistance. Rural Community Development Initiative Grants http://www.rd.usda.gov/programs-services/rural-community-development-initiative-grants What does this program do? This program provides funding to help non-profit housing and community development organizations support housing, community facilities, and community and economic development projects in rural areas. Announcement of recent RCDI Grant Awards and the list of recipients. Who may apply for this program? • Public bodies • Non-profit organizations • Federally Recognized Tribes ι What is an eligible area? Rural and rural area--Any area other than (i) a city or town that has a population of greater than 50,000 inhabitants; and (ii) the urbanized area contiguous and adjacent to such city or town. ι. How may funds be used? To improve housing, community facilities, and community and economic development projects in rural areas. Rural Community Development Initiative grants may be used for, but are not limited to: • Training sub-grantees to conduct:


Page 44

1. Home-ownership education 2. Minority business entrepreneur education

• Providing technical assistance to sub-grantees on 3. Strategic plan development 4. Accessing alternative funding sources 5. Board training 6. Developing successful child care facilities 7. Creating training tools, such as videos, workbooks, and reference guides 8. Effective fundraising techniques

What kind of funding is available? • Minimum grant award is $50,000; maximum grant award is $250,000 • Grant funds are limited and are awarded through a competitive process Are matching funds required? • Matching fund requirement equal to amount of grant • In-kind contributions cannot be used as matching funds • Partnerships with other federal, state, local, private and nonprofit entities are encouraged How do we get started? • Applications are accepted on an annual basis through a Notice of Funding Availability

(NOFA) in the Federal Register • Program Resources are available online (includes forms needed, guidance, certifications etc.) Who can answer questions? Contact your local RD office. What governs this program? Code of Federal Regulation; 2 CFR 200 and Guidelines announced in NOFA, published in the Federal Register. NOTE: Because citations and other information may be subject to change please always consult the program Instructions listed in the section above titled "What Law Governs this Program?" You may also contact your State Office RCDI Contact for assistance. Housing http://www.rd.usda.gov/programs-services/all-programs/multi-family-housing-programs Multi-Family Housing Programs We provide affordable multi-family rental housing in rural areas by financing projects geared for low-income, elderly and disabled individuals and families as well as domestic farm laborers. We extend our reach by guaranteeing loans for affordable rental housing designed for low to moderate-income residents in rural areas and towns. We preserve our portfolio of some 14,000 properties by aggressively restructuring loans for existing rural rental housing and off-farm labor housing projects to allow for sufficient reserves


Page 45

to meet major repairs and improvements over the lifetime of the property. On a yearly basis we provide grants to sponsoring organizations to repair or rehabilitate housing for needy families. We also subsidize rents for low-income tenants in our projects who cannot afford to pay their full rent. If you are interested in applying for funding under one of our programs, check out the links below. Rural Development Multi-Family Housing Programs: • Farm Labor Direct Loans & Grants • Housing Preservation & Revitalization Demonstration Loans & Grants • Housing Preservation Grants • Multi-Family Housing Direct Loans • Multi-Family Housing Loan Guarantees • Multi-Family Housing Rental Assistance Single Family Housing Programs Well built, affordable housing is essential to the vitality of communities in rural America. Housing Programs give families and individuals the opportunity to buy, build, repair, or own safe and affordable homes located in rural America. Eligibility for these loans, loan guarantees, and grants is based on income and varies according to the average median income for each area. Homeownership Programs Low interest, fixed-rate Homeownership loans are provided to qualified persons directly by USDA Rural Development. Financing is also offered at fixed-rates and terms through a loan from a private financial institution and guaranteed by USDA Rural Development for qualified persons. Neither one of these home loan programs require a down payment. USDA Rural Development also offers competitive grants to public and private non-profit Self-Help Housing organizations and Federally Recognized Tribes to enable hardworking families to build their own homes. Rural Development Single Family Housing Programs: • Single Family Housing Direct Home Loans • Single Family Housing Home Loan Guarantees • Mutual Self-Help Housing Technical Assistance Grants • Rural Housing Site Loans Home Repair Loans and Grants provide funds to elderly and very-low-income homeowners to remove health and safety hazards, perform necessary repairs, improve or modernize a home, make homes accessible for people with disabilities, or make homes more energy efficient so these very-low-income families use less of their income on utility bills. Learn all about our Home Repair Programs in this one-minute video:


Page 46

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33,3

24,5

3732

,508

,940

31,9

42,2

2631

,056

,985

31,3

59,4

6531

,648

,203

31,7

91,6

06

22R

even

ue V

aria

nce

4,37

6,73

85,

623,

302

2,54

7,38

62,

670,

307

2,75

0,41

62,

832,

928

2,91

7,91

63,

110,

194

3,20

3,50

03,

299,

605

23E

xpen

ditu

re V

aria

nce

(3,4

08,0

18)

(3,6

57,1

95)

(1,6

99,4

16)

(2,4

18,1

01)

(2,4

90,4

61)

(2,5

67,4

48)

(2,6

53,3

21)

(2,8

37,6

61)

(2,9

32,8

51)

(3,0

26,6

55)

24F

un

d B

alan

ce a

s %

of

Exp

end

itu

res

32.7

6%38

.07%

34.6

1%31

.30%

29.6

9%27

.72%

26.0

5%25

.16%

23.9

3%23

.50%

25D

ebt

as a

% o

f G

ener

al F

und

10.82%

11.31%

10.67%

10.97%

11.13%

13.27%

13.61%

12.67%

15.21%

14.48%


Page 47

Assumptions:

1Orig

inal bud

geted revenu

es; 3% increase projected

ann

ually (n

o grow

th re

flected

for C

hatham

Park)

2Re

flects a

ddition

al re

venu

es neede

d for C

IP ope

ratin

g; assum

es prope

rty tax increase (o

ther CIP increases p

rojected

to be absorbed

by existing revenu

e)31+2

4Ba

sed on

Versio

n 40

B of deb

t mod

el; rep

resents fun

ds being

transferred in from

CIP re

serve to pay deb

t service on projects includ

ed in

the mod

el5Includ

es other transfers from capita

l reserve

64+5

7Orig

inal bud

geted expe

nditu

res +

8 from

previou

s year; less 8‐12 of current year; 3%

increase projected

ann

ually

8Ad

ditio

nal expen

ditures resultin

g from

CIP projects (adde

d in su

bseq

uent year b

udgeted expe

nditu

re [7

])9CIP projects fu

nded

by fund

balance app

ropriatio

n‐‐net of capita

l reserve fu

nding

10Gen

eral fu

nd capita

l outlay; 3% increase projected

ann

ually

11Scho

ol capita

l outlay; 3% increase projected

ann

ually

12An

nual deb

t service based

on curren

t outstanding

deb

t plus p

rojected

deb

t in CIP

13To

tal of 7

‐12

14Transfers o

ut based

on Ve

rsion 40

B of deb

t mod

el15

Actual re

venu

es; assum

ed to

be 3%

abo

ve bud

geted revenu

es16

Assumes 7 and

8 sp

ent a

t 97%

; assum

es 9‐12 spen

t at 1

00%

1715

less 16

186 less 14

19Previous year's end

ing fund

balance

2017

+18

2119

+20

2215

less 3

2316

less 13

2421

divided

by (13+14

)25

Line

18 divide

d by

line

20


Page 48

Previous Year

Current Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023A. Personnel Costs

Regular Salaries 0 0 0 0 0 58,807 60,571 62,388 64,260Health 0 0 0 0 0 18,098 18,641 19,200 19,776

Life 0 0 0 0 0 47 49 50 52Dental 0 0 0 0 0 943 971 1,001 1,031

Workers Comp 0 0 0 0 0 1,268 1,306 1,345 1,385FICA 0 0 0 0 0 4,904 4,634 4,773 4,916

Retirement 0 0 0 0 0 4,532 4,668 4,808 4,952401K 0 0 0 0 0 2,884 2,971 3,060 3,152

List other personnel costs:0 0 0 0 0 0 0 0 00 0 0 0 0 0 0 0 0

B. One-Time Supplies/EquipmentUniforms 0 0 0 0 0 1,000 0 0 0

Office Supplies 0 0 0 0 0 6,218 0 0 0Advertising 0 0 0 0 0 800 0 0 0

Small Tools & Equipment 0 0 0 0 0 2,500 0 0 0Telephone/Communications 0 0 0 0 0 0 0 0 0

List other one-time supplies/equipment:0 0 0 0 0 0 0 0 00 0 0 0 0 0 0 0 0

C. Ongoing operational costsTelephone/Communications 0 0 0 0 0 652 672 692 713

Gasoline 0 0 0 0 0 5,614 5,782 5,955 6,134Training 0 0 0 0 0 2,245 2,313 2,382 2,454

Contracted Services 0 0 0 0 0 7,985 8,224 8,471 8,725Electricity 0 0 0 0 0 34,242 35,270 36,328 37,418

Water 0 0 0 0 0 26,945 27,753 28,586 29,4430 0 0 0 0 0 0 0 1

List other ongoing operational costsBuilding Maintenance 0 0 0 0 0 449 463 476 491

Equipment Maintenance 0 0 0 0 0 0 0 0 1Medical Supplies 0 0 0 0 0 5,164 5,319 5,479 5,643

Printing 0 0 0 0 0 1,684 1,735 1,787 1,840Advertsing 0 0 0 0 0 1,123 1,156 1,191 1,227

Medical Exams 0 0 0 0 0 225 231 238 2450 0 0 0 0 0 0 0 0

D. Capital OutlayEquipment 0 0 0 0 0 0 0 0 0

Vehicles 0 0 0 0 0 0 0 0 0List other ongoing operational costs

0 0 0 0 0 0 0 0 00 0 0 0 0 0 0 0 0

E. Cost Savings/RevenueList cost savings and revenue by line item

Rent-Lease Space 0 0 0 0 0 -10,737 -10,737 -10,737 -10,737All electric--gas goes away 0 0 0 0 0 -9,500 -9,500 -9,500 -9,500

Totals:Increased Costs 0 0 0 0 0 188,329 182,728 188,210 193,858Decreased Costs 0 0 0 0 0 -20,237 -20,237 -20,237 -20,237Net Total 0 0 0 0 0 168,092 162,491 167,973 173,621

Project: Animal Shelter Expansion & Renovation

The following are “typical” areas that departments may find increased operational costs when obtaining new equipment and/or constructing a new facility. However, if the following do not address your increased costs, please feel free to use the space marked “other” at the end of each category. When adding items, please include the description in column A and the account code in column B.

The purpose of this form is to offer a mechanism for listing projected increases in operational costs associated with a CIP project.

CHATHAM COUNTYCAPITAL IMPROVEMENTS PROGRAMCIP‐2: Operational Costs Worksheet


Page 49

Documents

Capital Budgeting Workbook - UNC School of …...Budgeting in Local Government: Capital Budgeting Page 1 12 Capital Improvements Program Town of Carrboro FY 2015-16 through FY 2020-21