Page 12 - Pantego Adopted Budget FY21

CAPITAL PROJECT FUNDS

These sets of funds are used to report major capital acquisitions and construction projects. Capital
Project Funds include: Street Improvement Fund, Capital Project/Equipment Replacement Fund, Park
Row Project Fund and a new Capital Project Fund tied to the issuance of the 2019 Certificates of Obligation.

Street Improvement Fund – This fund was established to account for a ¼ (.25) cent sales tax
allocation voted on by the citizens of Pantego every four years. The revenue is restricted by state
statute to be used for existing road improvements and maintenance. Sales tax is budgeted at
$308,308 in-line with the current year’s adopted Budget.

The repair and upgrade of the Town’s streets and roads continues to be a top priority of the Town
Council and staff.

The proposed Budget also includes a transfer out to the General Fund in the amount of $110,720 for
the cost of labor incurred by this fund.

Capital Project/Equipment Replacement Fund – This fund is used to account for acquisition of
equipment for various departments of the Town. It is also used to account for capital improvements for
the general government not currently funded through any other fund. This fund is entirely dependent on
cash inflows from the General Fund. Therefore, future capital expenditures will not be made if there is
an absence of transferable reserves from the General Fund. No expenditures have been requested for
this fund in FY 2020-2021.

2019 CO Capital Project Fund - This Fund was established to account for the General Government
portion of projects planned for the funds received from the issuance of the 2019 Certificates of Obligation.
The projects planned from this fund are:

- The Nora Drive Storm Sewer Pipe Lining
- The Country Club Storm Sewer Pipe Lining

Park Row Project Fund – This fund was created by advice from the Town’s auditors to help centralize
revenues, transfers and expenditures related to the Park Row Project for the duration of the project. The
project consists of the rehabilitation of the Park Row corridor which is to include: new streets, sidewalks,
waterline upgrades, lighting and crosswalks.