BUDGET MESSAGE
2015-16
&
CAPITAL IMPROVEMENT PLAN
2016-2020
MAINTAINING COMMUNITY, EMBRACING GROWTH
MAY 4, 2015
Budget Message 2015-16
Capital Improvement Plan 2016-2020
CONTENTS
Total Proposed Budget ................................................................................................................ 2
General Fund ................................................................................................................................ 3
Revenues.................................................................................................................................... 3
Proposed Fees ........................................................................................................................... 3
Spending and Work Plan ......................................................................................................... 4
Utility Fund ...................................................................................................................................... 7
Revenues.................................................................................................................................... 7
Spending and Work Plan ......................................................................................................... 7
Conclusion and Set Public Hearing ........................................................................................... 8
Appendix A – Summary of Manager Cuts to Department Requests .................................... 9
Appendix B – Proposed Fee Schedule Changes ................................................................... 12
Capital Improvement Plan........................................................................................................ 15
Overview...................................................................................................................................... 15
General Fund........................................................................................................................... 16
Utility Fund ................................................................................................................................ 16
Appendix C – General Fund Annual Capital Outlay Summary ........................................... 18
Appendix D – Utility Fund Annual Capital Outlay Summary ................................................ 20
Page 1
Budget Message 2015-16
Capital Improvement Plan 2016-2020
May 4, 2015
Mayor and City Council
City of Mebane, North Carolina
Dear Mayor and Council,
I am pleased to submit the proposed budget for the fiscal year ending June 30, 2016. The balanced
budget is prepared in accordance with the Local Government Budget and Fiscal Control Act,
presenting all revenues and expenditure estimates. The 2015-16 budget totals $23,046,506 and
continues the City’s commitment to meet the public’s needs for quality, cost-efficient government
services in a growing community.
The City continues to enjoy unprecedented economic progress that is bringing significant new
industrial investment and jobs. Demand for residential expansion, both single and multi-family, is
chasing these jobs, creating pressure to maintain our small-town atmosphere. To address these
conflicting tensions, this budget seeks to (1) ensure thoughtful, planned development, (2)
maintain quality infrastructure and (3) ensure a productive workforce in the midst of this rapid
growth. The proposed budget is a result of the hard work of department heads and staff, and
reflects the guidance and vision provided by the City Council at the budget retreat on March 10,
2015 and the budget workshop on April 22, 2015.
Total Proposed Budget
The proposed budget as submitted for approval by the City Council totals $23,046,506. This
spending plan is higher than the 2014-15 budget with a 3.6% increase of $799,314. The City’s two
budgeted funds include the General Fund and the Utility Fund. The General Fund is slightly up over
the current year’s budget by $33,740. The Utility Fund is increasing by $765,574, mostly the result
of significant capital and infrastructure outlays. The following table compares the proposed budget
with the current year budget for these funds:
Page 2
Budget Message 2015-16
Capital Improvement Plan 2016-2020
General Fund
Revenues
General Fund revenues continue to their strong growth in taxes with the economy expected to
continue heating up. No property tax increase is proposed, so this budget relies on expected
growth in the tax base and a continued strong collection rate. The State Legislature’s action to
eliminate privilege licenses is offsetting this growth causing a loss of $105,000. Mebane’s
continued growth in the industrial and residential sector is expected to positively impact permits
and fees as well. While several fee increases are proposed, most of the 47.3% growth in these
revenues is due to the growth in new business locations, homes and apartments. The following
table compares the estimated revenues with the current year budget.
General Fund Revenues
Taxes and licenses..........................
Sales tax..........................................
Unrestricted intergovernmental.....
Restricted intergovernmental........
Permits and fees.............................
Miscellaneous.................................
Transfers in.....................................
Total..................................................
2015-16
2014-15
Budget
Budget
Change % Change
$ 8,725,862 $ 9,095,516 $ 369,654
4.2%
2,300,000
2,665,996
365,996
15.9%
1,025,400
1,080,864
55,464
5.4%
442,100
383,225
(58,875) (13.3%)
538,100
792,472
254,372
47.3%
211,043
223,455
12,412
5.9%
330,000
0.0%
330,000
7.4%
$ 13,572,505 $ 14,571,528 $ 999,023
In order to balance the budget this year, I am recommending that the City Council appropriate
fund balance of $1,545,895. With the proposed spending plan of $16,117,423 and estimated
revenues of $14,571,528, the budgetary use of fund balance will be required to fill the gap. Over
the years, the City has historically budgeted fund balance with the understanding that
conservative budget techniques typically have not resulted in actually dipping into the City coffers.
The City Council has always advocated that the City maintain a strong fund balance position, and
this budget continues that tradition.
Proposed Fees
Several planning, permit and inspection fee increases are recommended this year that will place
Mebane in a median range between Alamance and Orange County, while slightly lower than the
City of Burlington. Appendix A includes the proposed fee changes for 2015-16 with changes from
the current fee schedule highlighted.
Page 3
Budget Message 2015-16
Capital Improvement Plan 2016-2020
Spending and Work Plan
General Fund spending is estimated at $16,117,423, a slight increase of $33,740 over this year’s
budget. This work plan will continue the tradition of quality services in the midst of rapid growth,
while thoughtfully planning for the future expanded community of Mebane. With the recent and
growing interest in Mebane as a place to live and conduct business, our
vision to maintain community while embracing growth is the only way we
can remain Positively Charming. General Fund requests from
departments totaled $17,419,851, so to maintain the current tax rate and
budget an appropriate amount of fund balance, I am recommending cuts to these requests
totaling $1,302,428. The guidance provided by Council at the budget workshop brought clarity to
this recommendation. A financial summary of these budget requests and associated cuts is
provided in Appendix B.
An adequate number of quality employees is part of the Mebane tradition, so I am making the
following personnel recommendations:
•
•
•
•
•
•
To stay competitive and retain good employees, I am proposing a 1.7% across the board
cost of living increase for all employees.
Budget constraints are forcing a suspension to the merit program, but I propose to
continue moving high performing employees through the step program leading up to job
rate. These step increases would apply only to employees that have been with the City for
one year as of September 1, 2015, and would be effective the first payroll of October 2015.
Captain and corporal positions in Fire and Police will improve shift supervision and create
a career ladder environment that will help retain employees and encourage continued
professionalism.
The citizens of Mebane have come to expect a professional and responsive police force, so
I am recommending the addition of four Police patrol officers.
For cleaner streets, fewer potholes and quicker repair times when old water lines break, I
am proposing to add one position in Public Works and one position in Utility Maintenance.
Instead of hiring the Special Projects Coordinator approved last year, administrative staff
have kept many projects moving forward with focused effort and temporary contracted
services. I am requesting to downsize this budgeted position to a Planner to provide
needed support for the increasing workload associated with our growth in planning and
zoning issues.
Several items impacting this proposal are the result of prior year decisions that are significantly
impacting the cost of providing service to our citizens:
•
Page 4
While the addition of a new fire station will improve response times, a full year of staffing
and operational costs are hitting the budget for the first time increasing costs $550,000.
Budget Message 2015-16
Capital Improvement Plan 2016-2020
•
•
•
In growing our tax base by attracting business investment and new jobs, incentive
payments and the City’s contribution to the rail spur amount to $422,644.
The website improvement project is just getting underway and will improve public
information and response.
The City charter is undergoing review and we will finish up the process to update it by the
end of next fiscal year.
New programs and projects being proposed in the coming budget include the following items:
•
•
•
•
•
Page 5
One of the Recreation and Parks Master Plan priorities in the first five years was identified
as a community park in 2014. The McLeod Property is located in an area that was identified
for future recreational need in the Plan. Not only does this site allow connectivity to
Mebane’s vibrant downtown historic district, but also fits into a pedestrian trail plan
created in the Bicycle and Pedestrian Transportation Plan. This land is one of the few
remaining tracts greater than 30 acres in this area of the City, so I am recommending that
we pursue the purchase of this land immediately. While I have delayed funding of any debt
payments associated with financing the construction of the park, I would propose to begin
preliminary design work and consider hiring a construction manager during the second half
of the fiscal year.
Planning for a city-wide trail system will commence, starting with pre-design planning for
the MACC-Holt Street trail, the #1 project in the Bike and Pedestrian Transportation Plan
(BPTP). We are applying for grants to fund this effort. In addition, staff is embarking on an
idea with Unique Places, the Clean Water Management Trust Fund, and the Piedmont Triad
Regional Council to develop a significant city-wide trail system. Between the public’s
overwhelming interest in walking and trails as reported in the Recreation Master Plan
(RMP) and the preliminary concepts delivered in the BPTP, a city-wide trail system appears
to be an amenity that should be pursued. Such a project will likely involve a significant
investment over multiple years, and will impact many properties and rights of way.
The significant growth our City anticipates requires thoughtful planning in order maintain
our small-town charm and guide planning and zoning decisions. The proposed work plan
includes updating both the Unified Development Ordinance and the Long-Range Plan.
In order to begin enforcing minimum housing standards and improve the overall
appearance of the City, staff is proposing to hire a two-day per month contractor that will
process abandoned houses through the proper but complicated notice and legal processes
required.
With highly travelled interstate highways, I am recommending the City begin maintaining
our interchange landscapes to improve the appearance of the City’s gateways to make an
even better first impression. In 2011 a landscape design was prepared by NCDOT for seven
interchanges in Alamance County. The DOT awarded this contract in 2013, but the work
Budget Message 2015-16
Capital Improvement Plan 2016-2020
•
has not been completed to their satisfaction and is in litigation. The City Council discussed
taking over the maintenance of the interchanges after two years, but took no official
action. The New Leaf Society collaborated with NCDOT in the design phase and committed
funding to the initial project, and will commit some funds for future plant material as well.
Having added an IT Coordinator last year, we will improve and expand our network and IT
infrastructure with performance and security enhancements that will protect citizen
information, while allowing for better communication and more efficient financial
operations.
The City has a good history of maintaining quality infrastructure and facilities, while keeping
equipment and vehicles in good condition. While several capital outlay purchases will need to be
deferred, the current proposal includes $459,975 to fund seven public safety vehicles and related
equipment, Mobile 311 to improve work order processing, defibrillators for City facilities, IT
network improvements, and street maintenance equipment.
The following table compares the estimated revenues with the current year budget by
department. Significant items having the most impact on the budget and work plan have been
described above. Other significant items include:
•
•
Page 6
A transfer of $700,000 to a capital project to replace the storm sewer and sidewalks at the
White Furniture apartment project explains the decrease in Non-Departmental.
The MACC renovation was completed this year which explains the decrease in Recreation.
Budget Message 2015-16
Capital Improvement Plan 2016-2020
Utility Fund
Revenues
Along with Mebane’s growth from business and residential development, Utility Fund revenues
are projected to follow suit increasing by $540,768. Almost 90% of the revenues generated in the
Utility Fund are comprised of the water and sewer fees charged to customers for service. These
revenues are estimated to grow almost 8%. Water revenues are expected to grow $133,417 and
sewer fees may outpace them, increasing $202,293. Since no changes in rates are proposed for
2015-16, this growth is due to increases in usage from an expanding population and development.
Another big change from last year, the large increase in connection fees is expected from planned
apartment complexes. The following table compares the proposed budget with the current year
budget for this fund.
In order to balance the budget this year, I am recommending that the City Council appropriate
funds on hand of $1,546,765. With the proposed spending plan of $6,929,083 and estimated
revenues of $5,382,318, the budgetary use of cash on hand will be required to fill the gap. As
with the General Fund, the City has traditionally budgeted savings with the understanding that
conservative budget techniques, which this proposed budget contains, typically do not result in
actually dipping into the City coffers.
Spending and Work Plan
Utility Fund spending is estimated at $6,929,083, a $765,574 increase over this year’s budget. This
budget is essentially a continuation budget except for new debt payments in Non-Departmental.
These payments are related to the N.C. Commerce Park utility extensions, upgrades to the water
plant and refinancing of some existing debt. Over the next few years, a significant decrease in debt
service is expected. The following table highlights changes by department in this fund:
Page 7
Budget Message 2015-16
Capital Improvement Plan 2016-2020
Most of the impact items in this fund are capital and infrastructure items including utility
improvements resulting from the NC119 Bypass project. In addition, the third and final pump
replacement at the water plant will complete a three-year upgrade project that improves
efficiency and reliability. To deal with growing requests for service and an aging infrastructure in
parts of the City, a new position is proposed in Utility Maintenance. Also of note, I am
recommending a $40,000 Long-Range Utility Study to plan for and identify future growth areas for
water and sewer infrastructure. This study, while not urgent, can provide significant guidance for
long-range planning decisions and will dovetail nicely with the Long Range Plan.
Conclusion and Set Public Hearing
The City of Mebane continues its efforts to provide efficient and effective government services for
its citizens. With the City Council’s visionary plans for improving the quality of life in the
community, the City is situated well to take on the challenges of rapid growth. Staff and elected
officials have contributed many creative ideas throughout the years enabling the City to prosper
to this point, and I look forward to keeping that tradition.
As required by the N.C. general statutes, please accept this document as the proposed budget for
the fiscal year ending June 30, 2016. As has been our tradition, I am proposing that you set a public
hearing at our regular meeting set for June 1, 2015 to consider the budget ordinance that will put
this plan into action. I look forward to the opportunity to work with you in carrying out this plan!
Respectfully submitted,
David S. Cheek
City Manager
Page 8
Budget Message 2015-16
Capital Improvement Plan 2016-2020
Appendix A – Summary of Manager Cuts to Department Requests
Cut
Final
137,966 $
(19,763) $
Merit and step pay...................................
138,037
(37,871)
Fire captain, lieutenant promotions.........
26,000
-
Police corporal promotions......................
22,000
-
Health insurance increase @ 5%..............
78,000
-
New fire station - full year 9 firemen......
New positions - 4 patrol, 2 investigators..
New position - 1 sanitation worker..........
528,000
351,700
34,086
New position - 1 technician......................
42,877
Subtotal Salary & Benefits........................
Operating Costs
New fire station - full year operations.....
Police equipment and operating costs.....
1,358,666
(181,498)
118,203 Reduced to 1.7% per Council
Workshop
100,166 No merit raises, step raises for
employees below job rate
26,000 Career ladder plan; improve
supervision
22,000 Career ladder plan; improve
supervision
78,000 Bidding out this item, results to
be determined
528,000 Impact of prior year decision
227,836 Elimination of 2 Investigators
34,086 Increasing demands on Public
Works from growth
42,877 Increasing demands on Public
Works from growth
1,177,168
22,000
309,300
(43,200)
MACC-Holt Street trail planning..............
25,000
-
Financial accounting system.....................
200,000
(50,000)
Brand signage & decals............................
50,000
(25,000)
UDO update..............................................
Comprehensive plan update.....................
Minimum housing contract......................
Cambro incentive payment......................
Rail spur infrastructure funding...............
Interstate interchange maintenance........
Morinaga incentive payment...................
Ferraro Foods incentive payment.............
Southern Seasons incentive payment.......
New park debt service on $6.5 million.....
36,500
49,500
10,000
135,000
75,000
40,000
144,000
10,644
18,000
270,655
(270,655)
General Fund Expenditures
Salaries & Benefits
Cost of living adjustment @ 2%................ $
Page 9
Request
(123,864)
-
Explanation of Cut and/or
Brief Justification
22,000 Impact of prior year decision
266,100 Cut related equipment of 2
investigators
25,000 Seeking grant funding for this
item
150,000 Eliminate some enhancements
and transition costs
25,000 Received quote for interstate
sign $11,612, fund 1 additional
sign
36,500 New project
49,500 New project
10,000 New service
135,000 Impact of prior year decision
75,000 Impact of prior year decision
40,000 Impact of prior year decision
144,000 Impact of prior year decision
10,644 Impact of prior year decision
18,000 Impact of prior year decision
Delay construction & financing moves $541,310 to FY 2016-17
Budget Message 2015-16
Capital Improvement Plan 2016-2020
Appendix A – Summary of Manager Cuts to Department Requests (continued)
General Fund Expenditures
Request
Cut
Final
Debt for NCCP utility extension................
874,460
Subtotal Operating Costs..........................
Capital Outlay
Police
Vehicles-new..........................................
2,270,059
(388,855)
180,900
(60,300)
Vehicles - replacements.........................
60,300
-
Animal control vehicle...........................
Patrol rifles.............................................
40,000
20,000
(40,000)
(20,000)
Mobile computers..................................
25,000
-
Fire
Vehicles..................................................
48,000
-
MDT replacement..................................
48,000
(48,000)
-
Radios and equipment............................
50,000
(50,000)
-
Public Works
Vehicles..................................................
84,000
(58,000)
Asphalt roller..........................................
21,000
-
Storage building.....................................
Equipment shed......................................
Mobile 311 ............................................
106,675
33,000
30,000
(106,675)
(33,000)
-
Skid steer................................................
Rock wall at cemetery entrance............
Council chambers improvements..........
38,000
60,000
5,000
(38,000)
(60,000)
-
Defibrillators..........................................
28,000
-
Conference tables & chairs....................
City Hall renovation................................
Mural - Rice's Jewelers..........................
20,000
35,000
20,000
(20,000)
(35,000)
(15,000)
Page 10
-
Explanation of Cut and/or
Brief Justification
874,460 Impact of prior year decision decreases in FY 2016-17
1,881,204
120,600 Eliminate 2 vehicles for
investigators not being
recommended
60,300 Ongoing policy to replace
+100,000 mile patrol vehicles
Delay to another year
Use federal forfeiture funding
or delay to another year
25,000 10 total - 4 new & 6
replacements
48,000 Replace maintenance- with
pick-up truck for Fire Inspector
Not imperative for this year
per Chief - delay to 2016-17
Not imperative for this year
per Chief - delay to 2016-17
26,000 Replace 1 truck; delay
purchase of 2 vehicles
21,000 Improve pothole & general
street maintenance
Delay to another year
Delay to another year
30,000 Replace paper-based work
order system; plan for citizeninitiated
Moved to Utility Fund
Delay to another year
5,000 Improvements for audience sound and visual
28,000 Public & employee safety - at
least 1 per City facility
Delay to another year
Delay to another year
5,000 Local fundraising effort or DBA
project
Budget Message 2015-16
Capital Improvement Plan 2016-2020
Appendix A – Summary of Manager Cuts to Department Requests (continued)
General Fund Expenditures
Request
Cut
Final
Information Technology
Move servers in City Hall.......................
25,000
-
Wireless at City facilities........................
18,900
-
SANS for backup.....................................
25,500
-
Servers & related security......................
21,675
-
Recreation
Tennis court resurfacing........................
17,010
(17,010)
Explanation of Cut and/or
Brief Justification
25,000 Currently beside hot water
heater, not properly
conditioned space
18,900 Improve & add public wireless
at all facilities
25,500 Improve security & protect
data
21,675 Improve security & protect
data
-
459,975
(600,985)
Subtotal Capital Outlay.............................
1,060,960
(131,000) 12,599,166
Other Departmental Operations................. 12,730,166
Total General Fund..................................... $ 17,419,851 $ (1,302,338) $ 16,117,513
Page 11
Delay to another year
Budget Message 2015-16
Capital Improvement Plan 2016-2020
Appendix B – Proposed Fee Schedule Changes
Fee
Summary of Fee Schedule Changes Proposed for FY16
From
Administration
Privilege License Fees
Returned Check Fee
Planning
Technical Review Committee - Site Plan Review - Initial
Technical Review Committee - Site Plan Review - Additional
Technical Review Committee - Building Plan Review - Additional
Storm water Control Facilities - Permit Application & Plan Review per
facility
Storm water Control Facilities - Annual Inspection in watershed
Building Permits & Inspections
Construction Permits:
Minimum
Manufacturing Housing - single
Manufacturing Housing-double
Manufacturing Housing-triple
Construction Trailers
Travel Trailers & Recreational Vehicles
Insulation - Residential
Insulation - Commercial
Other services:
Extra Building Permit Card, Duplicate Certificate of Occupancy
Stocking Permit
Onsite Inspections (Walk Through)
Temporary Certificate of Occupancy
Commercial Plan Review
Less Than 4,000 s.f.
4,000 to 50,000 s.f.
Greater than 50,000 s.f.
Sign Permit Fees
Minimum Permit Fee
100-300 sq. ft.
Greater than 300 sq. ft.
Cost of Demolition
Less than $1,000
$1,000 or more
Plumbing Permit & Inspection Fees
First fixture, including sewer, pits, interceptors or sewer lifts
Additional fixture per fixture
Sewer Connections
Water Connections
Minimum Permit Fee
Page 12
To
$25
$100
$50
$50
$200
$0
$0
$500
$250
$5,000
$40
$70
$70
$70
$40
$40
$40
$80
$50
$75
$100
$125
$50
$50
$50
$100
$5
$40
$40
$40
$10
$50
$50
$50
$75
$150
$225
$125
$200
$300
$40
$70
$105
$50
$80
$110
$40
Minimum +
$1 per $1,000
$70
Minimum +
$2 per $1,000
$30
$5
$40
$40
$40
$40
$6
$50
$50
$50
Budget Message 2015-16
Capital Improvement Plan 2016-2020
Appendix B – Proposed Fee Schedule Changes (continued)
Fee
Summary of Fee Schedule Changes Proposed for FY16
From
Electrical Permit & Inspection Fees
Residential
Up to 200 amps
201-400 amps
Greater than 400 amps
Underground Inspections
Additions & Alterations (Based on # boxes added or removed)
Commercial
Up to 200 amps
201-400 amps
$70
$80
$100
$40
$80
$90
$110
$50
First 10 = $40,
Each add'l 10 = $2
First 10 = $50,
Each add'l 10 = $3
$90
$110
$100
$120
$130 + $20 per
additional amp
$50
Greater than 400 amps
$110
Underground Inspections
$40
Additions & Alterations (Based on # boxes added or removed)
Other Electrical
Minimum Permit Fee
Temporary Power
Saw Service
Swimming Pools
Solar Installations
HVAC Change Outs
Low Voltage
Motors up to 4 h.p.
Motors greater than 4 h.p.
Mechanical Permit & Inspections Fees
Minimum Permit Fee
Residential
First HVAC Unit
Each additional HVAC Unit
Commercial
First 10 = $40, Each First 10 = $80, Each
Additional 10 = $2 Additional 10 = $3
$40
$40
$30
$40
$40
$40
$40
$10
$10 + $.5/hp
$50
$50
$40
$75
$75
$75
$50
$20
$20 + $.2/hp
$40
$50
$45
$30
$75
$40
Heat Only
$0.0004/BTU
Cooling Ony
$0.0008/BTU
Heating & Cooling
Heat Pump
Refrigeration System - Walk-in Cooler or Unit
Page 13
To
$0.0008/BTU
Heating Plus
$.004/BTU Cooling
$0.001/BTU
($40.00 Minimum)
$40 First Unit, $25
1st - $100,
2nd - $50
1st - $100,
2nd - $50
1st - $100,
2nd - $50
$0
$50 First Unit, $30
Each Additional Unit Each Additional Unit
Budget Message 2015-16
Capital Improvement Plan 2016-2020
Appendix B – Proposed Fee Schedule Changes
Fee
Summary of Fee Schedule Changes Proposed for FY16
From
Boilers & Chillers
Up to 150,000 BTU
Greater than 150,000 BTU
(Maximum Fee = $200.00)
Commercial Hood
Gas Logs
Gas Piping
Ductwork Inspection
Water & Sewer Connection Fees
Water Connection Fee - Hotels, Retirement Homes, Assisted Living Facilities
(per room)
Sewer Connection Fee - Hotels, Retirement Homes, Assisted Living Facilities
(per room)
To
$40
$40.00 plus
$0.002/BTU over
150,000 BTU
$70
$40
$40
$40
$100
$225
$80
$50
$50
$50
75% of Single Family
for 3/4"
75% of Single Family
for 3/4"
Fire
Alarm System Permit (per 120 sf)
Development Fees
Page 14
$
50 $
50
Budget Message 2015-16
Capital Improvement Plan 2016-2020
Capital Improvement Plan
May 4, 2015
Mayor and City Council
City of Mebane, North Carolina
Dear Mayor and Council:
I respectfully submit to you the proposed Capital Improvement Plan (CIP) for the City of Mebane
for fiscal years 2016 through 2020. The Five-Year CIP is a planning tool designed to aid policy
makers in the acquisition and orderly replacement of capital assets. The plan is updated annually
to ensure that it is based on the most accurate information available and is reflective of the current
and projected economic environment. Adoption of the CIP by the City Council does not constitute
a commitment to fund a particular item, but rather signifies an intention to fund capital outlay at
the indicated level during the ensuing years.
CIP Overview
The CIP for 2016-20 includes improvements in the General Fund and the Utility Fund with a total
estimated cost of $28,980,528 over the next five years. The General Fund improvements over five
years are expected to total $18,418,528 while the Utility Fund’s projected costs amount to
$10,562,000. These costs are divided into two major categories – Capital Projects and Annual
Capital Outlay. Capital Projects are those projects that require major capital expenditures and take
more than one year to complete. In contrast, Annual Capital Outlay requests are made by
department heads and include any capital items greater than $20,000 that will significantly impact
their specific budgets. The annual capital outlay items shown for 2015-16 are included in the
Manager’s Recommended Budget.
The year 2014-15 includes the completion of the new fire station. Continuing into 2015-16 is the
capital project for the Water Treatment Plant Upgrade and Utility Line Extensions in the Utility
Fund. The next capital projects included in the 2016-20 CIP are the implementation of the
Recreation Master Plan, highlighted by an estimated $7.1 million for a new community park, and
implementation of the Bike and Pedestrian Plan, estimated at nearly $6 million for greenways and
trails over the next five years.
Annual capital outlay requests made by city departments identified in the CIP totaled $9.8 million,
with $4.5 million in the General Fund and $5.3 million in the Utility Fund. Details of these requests
appear in Appendices C and D.
Page 15
Budget Message 2015-16
Capital Improvement Plan 2016-2020
General Fund
Department
Recreation Master Plan:
Community Park
$
Mini Park
Lake Michael Trail
Bike & Pedestrian Plan:
Sidewalk
Trails
Bicycle
Annual Capital Outlay:
Police
Fire
Inspections
IT
Public Works
Public Facilities
Sanitation
Recreation
Total $
Funding Source:
Cash
Grant Funding
County Bonds
Debt Financing
Total
$
Fiscal Year Ending June 30
2017
2018
2019
$
250,000
2020
670,000
415,000
-
$ 4,730,000
-
$ 1,700,000
100,000
-
1,200,000
4,029,000
750,000
240,000
29,000
-
240,000
1,000,000
-
240,000
1,000,000
-
240,000
1,000,000
250,000
240,000
1,000,000
500,000
989,728
1,426,000
85,000
192,025
546,675
218,000
500,000
617,100
18,418,528
205,900
48,000
66,075
77,000
63,000
$ 1,813,975
450,120
558,000
85,000
50,950
367,675
155,000
200,000
17,100
$ 7,853,845
107,964
280,000
25,000
102,000
600,000
$ 4,154,964
111,204
160,000
25,000
300,000
$ 2,336,204
114,540
380,000
25,000
$ 2,259,540
5,953,528
500,000
125,000
11,840,000
Total $ 18,418,528
$ 1,143,975
670,000
$ 1,813,975
$ 2,123,845
300,000
5,430,000
$ 7,853,845
$ 1,454,964
200,000
2,500,000
$ 4,154,964
$
$
$
7,100,000
515,000
250,000
2016
711,204
125,000
1,500,000
$ 2,336,204
$
-
519,540
1,740,000
$ 2,259,540
General Fund
In addition to General Fund annual projects, the primary capital need over the next five years is
implementation of the Recreation Master Plan. The primary goals identified by the master plan
were for a new community park and the development of greenways and trails. Full
implementation may be funded with a combination of bonds, grants and capital reserves. A
detailed listing of the General Fund’s annual capital outlay appears in Appendix C.
Utility Fund
Annual capital outlay projects appear in Appendix D. In addition to annual capital outlays, the
Water and Sewer Utility Fund’s capital planning includes an upgrade to the wastewater treatment
plant. This project is intended to meet the standards set by the NC Environmental Management
Commission for the “Jordan Lake Rules” governing discharge in the Jordan Lake drainage basin,
and is being been undertaken in phases. Upgrades are intended to ensure our continued ability to
meet the standards and would expand the permitted capacity of the plant from 2,500,000 gallons
per day to 2,990,000 gallons per day. Upgrades already completed are achieving desired results,
Page 16
Budget Message 2015-16
Capital Improvement Plan 2016-2020
and an updated engineering study (planned for FY2016) will determine the next steps in this
project.
Water and Sewer Fund
Projects
WWTP Upgrade
Annual Capital Outlays:
WWTP
Water Distribution
Lift Stations
Sewer Mains
Total
Funding Source:
Pay As Go
Grants
Installment Financing
Total
2016
Fiscal Year Ending June 30
2017
2018
2019
$ 1,000,000 $ 4,300,000 $
Total
$ 5,300,000
$
148,000
2,000,000
1,938,000
1,176,000
$ 10,562,000
45,000
400,000
538,000
376,000
$ 1,359,000
30,000
150,000
200,000
200,000
$ 1,580,000
38,000
150,000
800,000
200,000
$ 5,488,000
$ 6,262,000
4,300,000
$ 10,562,000
$ 1,359,000
$ 1,580,000
$ 1,580,000
$ 1,188,000
4,300,000
$ 5,488,000
-
$ 1,359,000
$
$
$
2020
-
$
-
35,000
150,000
200,000
200,000
585,000
1,150,000
200,000
200,000
$ 1,550,000
585,000
585,000
$ 1,550,000
$ 1,550,000
The development of this CIP is only one step in the maintenance and development of City owned
facilities and infrastructure. This CIP provides a guide for decision makers and the citizens. By fully
examining alternatives and funding options during the planning process, the City Council and
management are able to make more fully informed decisions and maximize City resources.
Adoption of the CIP does not constitute a commitment to appropriate the funds, but rather
signifies the Council’s intent to fund capital at the indicated levels during the annual budget
process. We believe the CIP as presented is a solid proposal and has been prepared in accordance
with the guidance and direction provided by the City Council.
Sincerely,
David S. Cheek
City Manager
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Budget Message 2015-16
Capital Improvement Plan 2016-2020
Appendix C – General Fund Annual Capital Outlay Summary
The following table shows the five-year annual capital outlay for departments of the General Fund.
GENERAL FUND SUMMARY for FY16-20
Fiscal Year Ending June 30
Project Budget
Total
2016
2017
2018
2019
2020
107,964
111,204
114,540
Police
Vehicles-new
$
180,900
$
180,900
Vehicles - Replacements
498,828
60,300
Animal Control Vehicle
40,000
40,000
Patrol Rifles
20,000
20,000
Mobile Computers
25,000
25,000
Firing Range
225,000
104,820
225,000
Fire
Vehicles
568,000
Class room at Training Tower
100,000
48,000
60,000
100,000
48,000
48,000
Radios and equipment
330,000
50,000
Renovations to staff qtrs
380,000
MDT replacement
460,000
-
280,000
380,000
Public Works
Vehicles
84,000
Asphalt Roller
21,000
21,000
Storage building
106,675
106,675
Equipment shed
33,000
33,000
Mobile 311
30,000
30,000
Mowers
22,000
Colibarium
Rock wall at cemetery entrance
Veterans Imp
84,000
22,000
100,000
60,000
100,000
60,000
70,000
70,000
Leaf truck
200,000
200,000
One-arm garbage truck
300,000
300,000
80,000
New driveway and fence-119
80,000
Welcome to Mebane signs
50,000
50,000
5,000
5,000
Council chambers improvements
Defibrillators
28,000
28,000
Conference tables & chairs
20,000
20,000
City Hall renovation
35,000
35,000
Mural Rice's Building
20,000
20,000
Page 18
Budget Message 2015-16
Capital Improvement Plan 2016-2020
Appendix C – General Fund Annual Capital Outlay Summary (continued)
GENERAL FUND SUMMARY for FY16-20 continued
Fiscal Year Ending June 30
Project Budget
Total
2016
2017
2018
2019
2020
Inspections
Inspections program
60,000
60,000
Vehicles
25,000
25,000
Move servers in City Hall
25,000
IT
25,000
Wireless at City Facilities
18,900
18,900
SANS for backup
25,500
25,500
Servers & related security
97,625
21,675
VOIP phone system
25,000
25,950
25,000
25,000
25,000
Recreation
Community Park
750,000
750,000
17,100
Tennis court resurfacing
17,100
Lake Michael dam repair
300,000
300,000
Walker Field Improvements
300,000
300,000
Total $
5,324,528
5,324,528
1,823,050
1,270,770
1,114,964
Total $
5,324,528
$ 1,823,050
$ 1,270,770
$ 1,114,964
$ 1,823,050
$ 1,270,770
$ 1,114,964
$
596,204
$
596,204
$
519,540
$
519,540
Funding Source:
Cash
Page 19
596,204
519,540
Budget Message 2015-16
Capital Improvement Plan 2016-2020
Appendix D – Utility Fund Annual Capital Outlay Summary
Water & Sewer FUND SUMMARY for FY16-20
Fiscal Year Ending June 30
Annual Capital Outlays
Project Budget
Total
2016
2017
2018
2019
2020
Wastewater Treatment Plant:
Clarifier Drive Gear Replacement $
Vehicles
45,000
$
45,000
$
-
$
-
$
-
$
-
103,000
-
30,000
38,000
35,000
-
Annual maintenance
750,000
150,000
150,000
150,000
150,000
150,000
119 Bypass Project
100,000
100,000
Pump 1 Water Plant
32,000
32,000
80,000
80,000
Water Distribution:
Backup Power Source
Second water tank
Skid steer
1,000,000
38,000
1,000,000
38,000
Sewer Lift Stations:
Anue System
38,000
38,000
-
-
-
-
1,000,000
200,000
200,000
200,000
200,000
200,000
Farrar Lane upgrade
300,000
300,000
-
-
-
Arbor Creek upgrade
300,000
-
-
300,000
-
-
Terrell Street upgrade
300,000
-
-
300,000
-
-
1,000,000
200,000
200,000
200,000
200,000
200,000
119 Bypass Relocation
100,000
100,000
Replace sewer camera
76,000
76,000
Total $ 5,262,000
$ 1,359,000
$
580,000
$ 1,188,000
$ 585,000
$ 1,550,000
$ 5,262,000
$ 1,359,000
$
580,000
$ 1,188,000
$ 585,000
$ 1,550,000
Total $ 5,262,000
$ 1,359,000
$
580,000
$ 1,188,000
$ 585,000
$ 1,550,000
Pump & control panel maint
Sewer Mains:
Repair and maintenance
Funding Source:
Cash
Page 20