Page 265 - CityofWataugaAdoptedBudgetFY24

CIP AND CAPITAL PROJECTS FUNDS

❖ FY2003-FY2011, the City was focused on an aggressive facilities campaign. During this
time, we constructed a new City Hall and Animal Shelter, and upgraded facilites for the
Police and Recreation departments, along with upgrades to major streets. The new
Fire/EMS facility, was completed in FY2011, for just under $3.8 million dollars.

❖ FY2011-FY2021, the City’s focus began to move from constructing and renovating
facilities to the city’s infrastructure and the need for replacement of outdated equipment
and vehicles city-wide. In July of 2011, in order to fund future capital projects and needed
equipment, the City issued $7.365 million in Combination and Limited Pledge Revenue
Certificates of Obligation. This new issuance was designed to fund street improvements,
water and sewer and drainage projects, purchase of new equipment, vehicles, machinery,
and technology purchases. The issuance was timed to allow the City to maintain relatively
the same amount of debt as prior years for both the General Fund and the Utility Fund.
In July, 2012, the City issued $7.73 million in new debt for the utility fund. With this
issuance, the City embarked on major improvements in the City’s water and sewer
infrastructure. The projects began in FY2013 were completed in FY2018. In FY2013,
certain projects were identified as priority needs such as street projects, infrastructure,
parks, and a Senior Center that resulted in the issuance of $3.50 million in Certificates of
Obligation. These funds partially funded the expansion of the Community Center to
include a Senior Center which was completed in FY2017. Also, the Bursey Road, Phase
I street project, a major thoroughfare in the City, was funded by this debt issuance that
was completed in FY2016. In FY2016, a $5.885 million debt issuance provided for
funding for street projects such as Bursey Road, Phase II and Whitley Road, and parks
projects to enhance the quality of life for Watauga citizens. The Whitley Road project is
ongoing and the funding provided by this issuance is expected to be expended this fiscal
year. In the Spring of 2017, a $7.325 million Certificates of Obligation was issued to
provide funding for improvements to the City’s utility system. Various wastewater and
water projects began in FY2018 and will continue in future years utilizing these funds. In
FY2018, a $6.780 million Certificates of Obligation issuance provided funding for parks
projects, street projects, and other improvements listed within the 5-year Capital Plan. In
FY2019, $8.85 million Certificates of Obligation issuance provided funding to continue the
major utility infrastructure improvment projects and provide for some vehicle and heavy
equipment replacements. $8.0 million of the proceeds will fund projects such as
replacements of water and sewer lines and manhole replacements throughout the City.

❖ FY2022 – FY2024 The City’s CIP plan continues with infrastructure projects funded in
prior years. Funding of street projects is a priority and funding was provided in FY2022
by a $4.70 million issuance to fund streets and a large portion of the City’s Capital Outlay
Plan needs. In FY2023, the City’s CIP plan continued with with the addition of new
projects. Hightower Road and Watauga Road street construction projects were added to
the 5-year Capital Improvement Plan to improve these streets and assist in attracting new
businesses and development to the City. Certificates of Obligation were issued in the
amount of $4.9 million in FY2023 and $8.8 million in FY2024 to fund these street projects,
as well as capital outlay needs such as vehicles and public safety replacement
equipment.

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