CITY OF RALEIGH
ADOPTED CIP FY2016-2020
Debt Financing: The largest revenue source for the city’s CIP, both in FY16 and across the five-
year horizon, is bonds. In 2014, for example, Raleigh’s citizens approved the use of general
obligation bonds for parks and recreation projects. In the public utilities element, revenue bonds
will fund many water and sewer infrastructure projects. The city also employs commercial loans
and other debt mechanisms for selected projects.
Transfers from Enterprise and Internal Service Funds: Enterprise funds, such as Public Utilities,
Stormwater, and Parking, collect user fees as part of their operations, then invest a portion of that
revenue into capital projects. The city uses these transfers only for corresponding enterprise
purposes. For example, public utilities transfers to capital are only used for water and sewer
projects. Such internal service funds as Vehicle Fleet Services also contribute to selected capital
projects. Transfers from enterprise and internal service funds are the CIP’s second largest
Transfers from the General Fund: The general fund transfers a portion of the city’s property and
sales tax revenues to capital funds each year. Compared to other sources, general fund
transfers are a flexible revenue source without restrictions on their use. The city applies these
funds to a wide range of projects, including general government and public safety facility
maintenance, parks facility maintenance, street resurfacing, and technology projects.
Facility Fees: The city assesses charges on new development to help pay for the capital facility
burden created by new development. Each new residential or commercial project pays its
proportionate share of the cost of new infrastructure facilities required to serve that development.
These fees support debt service and cash-funded projects for parks and road widening. Facility
fees are based on a standard formula and a pre-determined fee schedule.
Interlocal Funds: In Spring 2012, the City of Raleigh and Wake County agreed to dedicate a
portion of the county-wide hotel/motel tax and prepared food tax revenues to maintain the
Raleigh Convention Center. The interlocal agreement between the two jurisdictions includes a
long-term funding schedule to maintain the facility.
User Fees and Program Income: In some capital elements, selected user fees and program
income sources are dedicated to capital projects rather than operating budgets. This includes
program income from affordable housing programs, which are invested in new housing programs.
This revenue source also includes selected development fees and lease revenue at the Walnut
Appropriated Fund Balance: As staff complete capital projects, the unspent budget accumulates
into capital reserves, which are available to fund future projects. Capital reserves can also build
up when the city collects additional revenues above the budget estimate. Staff annually estimate
the reserve funds available for capital projects and may budget this additional revenue source.
Interest Income: The city actively invests its cash balances in appropriate interest-earning
mechanisms. Interest income is not a major source of revenue for the CIP, but supplements