City of Raleigh
B. Commitments and contingent liabilities
Commitment ‐ Enterprise Funds
In February 1972, the City entered into a raw water storage contract and joint use
construction costs with the U. S. Corps of Engineers for raw water usage of up to 100 million gallons per day from
Falls Lake. The City’s estimated share of construction cost for the project was estimated at $12,170,000 payable
annually over 50 years beginning in 1984. The contract requires that the City pay certain capital and operating costs
of the lake which are dependent upon future costs of operation. The City’s fiscal year 2015‐16 obligation was
$848,305. It is estimated, at this time, that the future cost to the City will not exceed $850,000 annually and will be
repaid in 2033 with a final payment of $3,726,122.
Amounts received or receivable from grant agencies are subject to audit and adjustment by
grantor agencies, principally by the federal government. Any disallowed claims, including amounts already
collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures that may be
disallowed by the grantor cannot be determined at this time, although the City expects such amounts, if any, to be
The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in
the opinion of the City’s counsel the resolution of these matters will not have a material adverse effect on the financial
condition of the City.
Contingent Liabilities – Facility Fees
The City enters into Thoroughfare Facility Fee Reimbursement contracts that
provide developers with contract awards based on the calculated value of the capital contributions to the City. Each
contract states minimum amounts that must be paid and recorded as long‐term liabilities in the City’s entity‐wide
financial statements. The remaining liability amounts for each contract are paid based on a formula and are
contingent on available funds in the facility fee reimbursement account. The total value of the contracts at June 30,
2016 was $13,611,552. Of this amount, $7,056,868 was recorded as a liability, and the remaining $6,554,684 represents
a contingent liability.
C. Jointly governed organizations
Raleigh‐Durham Airport Authority
The Raleigh‐Durham Airport Authority plans and conducts operations of the
Raleigh‐Durham International Airport. This eight‐member governing body is jointly appointed by the City of
Durham, City of Raleigh, County of Durham and County of Wake, with each member government appointing two
members. The authority selects the management and sets the budget and financing requirements of the airport. Each
member government contributes $12,500 annually for administration of the authority. Neither the City nor the other
member governments exercise management control or are responsible for budget and financing requirements for the
authority. A special airport tax district of Durham and Wake Counties was created to aid in the financing of major
airport facilities and is governed by two members each from the respective county boards of commissioners. Because
of its limited role in the Raleigh‐Durham Airport Authority and the related special tax district, the City does not
consider its participation to be a joint venture and, accordingly, further disclosure of the airport entity is not included.
The authority does not meet the criteria to be included in the City’s financial reporting entity.
Triangle J Council of Governments
The City, in conjunction with three counties and 22 other municipalities are
members of the Triangle J Council of Governments. The participating governments established the council to
coordinate various regional interests and intergovernmental funding. Each participating government appoints one
delegate to the councilʹs governing board. The City paid dues of $122,585 to the council during the fiscal year ended
June 30, 2016. The council does not meet the criteria to be included in the City’s financial reporting entity.