Ord-2019-010 - Laserfiche WebLink

Home Browse Search

5 .4 FINANCING 5.4 .1 Funding Sources for Public Facility Projects Identifying funding sources for public facility projects is critical to the success of the Kittitas County's Capital Improvement Program (CIP). It requires coordination among County Departments and a thorough understanding of the fiscal capacity of the County to finance these facilities. Public facility projects are often very expensive, requiring multi-year commitments of financial resources. It is important to understand that a CIP does not represent a financial commitment or guarantee that the projects will be implemented. County approval does not automatically authorize funding. It does approve the program in concept and provides validity to the planning process. In an attempt to stretch money as far as possible, many different funding sources are considered. The financing of some projects relies on outside grant resources. If grants are not received the projects may be delayed, removed , or financed with dedicated revenues, general revenues, excess surplus funds, or bond financing. The various methods of financing are as follows: 1) County enterprise funds have been established for certain County Departments such as the Solid Waste Department. Enterprise funds are financing from: • Debt to be repaid by user fees and charges and/or connection or capacity fees for enterprise services. • Current assets (i.e., reserves, equity or surpluses, and current revenue, including grants, loans, donations and interlocal agreements). • A combination of debt and current assets. 2) Non-enterprise funds are financed from: • Current assets: (i.e., current revenue, fund equity and reserves) • Debt (see County's debt management policy) • Combination of current assets and debt. The County is guided by the following three principles in selecting a funding source for public facility improvements: Page 62 1) Equity: Whenever appropriate, the beneficiaries of a project or service will pay for it. For example, if a project is a general function of government that benefits the entire community, such as a school, police station, or library, the project will be paid for with general tax revenues or financed with general obligation bonds. If, however, the project benefits specific users, such as water and sewer facilities, the revenues will be derived through user fees or charges, targeted taxes, and assessments. 2) Effectiveness: In selecting a source or sources for financing projects, the County will select one or more that effectively funds the total cost of the project. For example, funding a capital project, or the debt service on a project, with a user fee that does not provide sufficient funds to pay for the project is not an effective means of funding the project.