Page 285 - City of Watauga FY22 Adopted Budget

CIP AND CAPITAL PROJECTS FUNDS

Overview

The Capital Improvement Plan (CIP) presents the City’s plan for infrastructure development and
improvements and is evaluated and updated annually by the City’s leadership to determine the
financial availability of resources for projects that will satisfy the 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.

The goals of the CIP are as follows:

➢ Inform the employees, departments, elected officials and the public of the City’s intent to
invest in its infrastructure and community.
➢ Represents a long-term financial plan and identifies resources or financing strategies that
the City plans to use to fund the plan. The CIP plan does not appropriate money.
➢ Identifies projects by functionality to ensure a balanced approach to our reinvestment in
the Community.
➢ Establishes priorities and serves as a planning document or blueprint for the investment
in capital infrastructure for short term and long-term projects.

The 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.

276