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CITY OF RALEIGH

ADOPTED CIP FY2017-FY2021

Debt Financing: The largest revenue source for the city’s CIP, both in FY17 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 invests 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

revenue source.

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, selected development fees and lease

revenue from the Walnut Creek Amphitheater.

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 estimates

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

project budgets.

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