For the past several years, financing for most capital projects has been “pay-as-you-go”. In other words, capital projects are paid for out of the cash flow provided by the half-cent CIP Sales Tax and available monies from other fund balances.
Large Sewer CIP projects are financed by revenue bonds approved by a vote of the citizens as well as through bonds approved through development boards. The annual bond payments are included in the overall rates charged to customers.
Several years ago, improvements to the Parking Garages, Health Department, Parks Department facility, and Landfill facility were financed using PBA (Public Building Authority) issued bonds. Annual payments are authorized from the existing revenue streams of the funds in which the improvement occurred.
By State statute, the City is permitted, by vote of 2/3rds majority, to incur General Obligation (GO) debt in the amount not to exceed 20% of the assessed value of the City.