Page 234 - Watauga FY21 Budget

CIP AND CAPITAL PROJECTS FUNDS

The Capital Projects Fund accounts for the acquisition of and construction or reconstruction of
major capital facilities, infrastructure, and equipment. The projects are financed with
resources allocated to the General Capital Projects Fund, Economic Development
Corporation Capital Fund, and the Water and Sewer Capital Projects Fund.

The City of Watauga updates its 5-year Capital Improvement Program (CIP) annually. The
objective continues to be to match capital expenditures with available resources and that will
satisfy City tax rate objectives. The Capital Improvements Program attempts to identify and
plan for all major capital needs and deals with capital items that are different from those which
are covered under the capital outlay category in each department’s budget and in the Internal
Service (Equipment Replacement) Fund. Generally, the CIP includes improvements that are
relatively expensive, are non-recurring, have a multi-year useful life, and, like capital outlay
items, result in fixed assets. Programs the City of Watauga currently identifies include:

Drainage Projects – Such projects include several drainage channels throughout the City that
have been identified as known problem areas. All developed property owners within the City
pay a monthly drainage utility fee, which is utilized for drainage development, redevelopment,
and maintenance. The City has significantly lessened flooding along smaller channels and
ditches throughout the City by keeping these facilities free of foliage and debris. These
projects are included in the Operating Storm Drainage Fund and any long-term projects can be
carried under General Capital or Water and Sewer Capital funds, depending on project goals.

Signalization Projects - Such projects include the construction or redevelopment of traffic
light signalization needs for the City. These projects are included in the General Capital Fund.

Special Building Projects – Such projects include the construction or major renovations of
special facilities owned by the City. These projects can be included in any of the three capital
funds, depending on project purpose.

Street Projects – Such projects include construction or major redevelopment of the 317
current streets in the City. Street projects do not include normal repair and maintenance on
sub-grades, milling, and overlay. Both street projects and normal repair and maintenance
activities of street are included in the General Capital Fund.

Wastewater Projects – Such projects include improvements, expansions, or construction of
wastewater lines in the City. Many of these projects are implemented to stay within EPA
Administrative Orders. These projects are included in the Water and Sewer Capital Fund.

Water Projects – Such projects include new waterlines or improvements to existing waterlines
for future development or existing customer needs. These projects are included in the Water
and Sewer Capital Fund.

Parks Projects – Parks projects improve the quality of life of Watauga residents and projects
in the Parks Master Plan such as trails and parks improvements are included in the 5-year
Capital Improvement Plan

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