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<br /> <br /> <br /> <br /> <br /> <br />Page 62 <br /> FINANCING <br /> Funding Sources for Public Facility Projects <br />Identifying funding sources for public facility projects is critical to the success of the Kittitas County’s Capital <br />Improvement Program (CIP). It requires coordination among County Departments and a thorough <br />understanding of the fiscal capacity of the County to finance these facilities. <br />Public facility projects are often very expensive, requiring multi-year commitments of financial resources. It is <br />important to understand that a CIP does not represent a financial commitment or guarantee that the <br />projects will be implemented. County approval does not automatically authorize funding. It does approve <br />the program in concept and provides validity to the planning process. <br />In an attempt to stretch money as far as possible, many different funding sources are considered. The <br />financing of some projects relies on outside grant resources. If grants are not received the projects may be <br />delayed, removed, or financed with dedicated revenues, general revenues, excess surplus funds, or bond <br />financing. The various methods of financing are as follows: <br />1) County enterprise funds have been established for certain County Departments such as the Solid <br />Waste Department. Enterprise funds are financing from: <br /> Debt to be repaid by user fees and charges and/or connection or capacity fees for enterprise <br />services. <br /> Current assets (i.e., reserves, equity or surpluses, and current revenue, including grants, loans, <br />donations and interlocal agreements). <br /> A combination of debt and current assets. <br />2) Non-enterprise funds are financed from: <br /> Current assets: (i.e., current revenue, fund equity and reserves) <br /> Debt (see County’s debt management policy) <br /> Combination of current assets and debt. <br />The County is guided by the following three principles in selecting a funding source for public facility <br />improvements: <br />1) Equity: Whenever appropriate, the beneficiaries of a project or service will pay for it. For example, if a <br />project is a general function of government that benefits the entire community, such as a school, <br />police station, or library, the project will be paid for with general tax revenues or financed with <br />general obligation bonds. If, however, the project benefits specific users, such as water and sewer <br />facilities, the revenues will be derived through user fees or charges, targeted taxes, and assessments. <br />2) Effectiveness: In selecting a source or sources for financing projects, the County will select one or <br />more that effectively funds the total cost of the project. For example, funding a capital project, or the <br />debt service on a project, with a user fee that does not provide sufficient funds to pay for the project <br />is not an effective means of funding the project.