Funds for capital projects come from a variety of sources, each having its own set of conditions for use. . The City’s Finance Department sets level of available funds for each fiscal year based on best practices for issuing debt. A more detailed description of each of the fund sources in the capital budget is included below.
- General Funds (Pay-as-you-go): Revenue received from various payments to the City, such as property taxes and sale of property. General Funds are mostly used for the operating budget, but Finance allocates a certain amount for PAYGO capital each year.
- Highway User Revenue (HUR): Formerly known as Motor Vehicle Revenue (MVR), funds are State Highway User Revenues allocated by formula. These state funds are restricted to eligible uses, such as transportation projects.
- General Obligation Bonds (GO Bonds): With voter approval, the City borrows money for specific improvements by selling general obligation bonds. GO bonds are debt secured by the full faith and credit of the City, and are presented to voters for approval every two years through questions on the general election ballot. This is a flexible fund source that allows the City to maintain some of its highest priority capital assets and programs, particularly those that are not eligible for any other fund source.
- State Funds: Funds from the State are typically in the form of grants, including grants made through Program Open Space.
- Federal Funds: Federal loans and grants include Community Development Block Grants (CDBG), Federal Highway Administration (FHWA) grants, and other sources.
- Revenue Bonds: Bonds issued by city agencies to be repaid with future dedicated revenue, such as water, wastewater, and stormwater revenue collected from water bills by the Department of Public Works. At times, revenue bonds can be used for non-utility related projects (if an appropriate revenue source is identified and approved by the Department of Finance).
- Utility Funds: Utility funds include current operating revenues from City utilities such as water bills and conduit fees.
- Other: Other possible sources include County grants, Local Impact Aid, private monies, and Critical Area Management Program (CAMP) and Forest Conservation Offset monies.