Page 264 - CityofWataugaAdoptedBudgetFY24

CIP AND CAPITAL PROJECTS FUNDS

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.

Accounting for CIP Projects - The funds are accounted for on the modified accrual basis of
accounting. Revenues are recorded when available and measurable, and expenditures are
recorded when the liability is incurred. The Capital Projects Funds account 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.

BRIEF HISTORY OF THE CITY’S CAPITAL IMPROVEMENTS PROGRAM (CIP)

It has been the goal of the City of Watauga to have a Capital Improvements Program that is
focused on adding value and extending the life of City infrastructure with no increase in
operating costs or property tax. Consideration is given to debt issuance only if the overall tax
rate remains unchanged and to prioritizing projects that will either decrease operational costs
or have little or no operational cost impact.

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