31.07.210 Five (5) year Capital Facilities Plan.
The five (5) year Capital Facilities Program for the City of Forks was developed based on the following analyses:
•Financial Assumptions
•Projected Revenues
•Projected Expenditures
•Operating Expenses
•Future Needs
(1) Financial Assumptions. The following assumptions about future operating conditions in the local government and market conditions were used in the development of the five (5) year Capital Facilities Program:
•The City will maintain its current fund accounting system to handle its financial affairs.
•The cost of running the local government will continue to increase due to inflation and other factors.
•New revenue sources may be necessary to maintain and improve City services and facilities.
•Significant capital investment is needed to maintain, repair, and rehabilitate the City’s aging infrastructure and to accommodate future growth.
•Public investment in capital facilities is a tool of local government to support and encourage economic growth.
•A consistent and reliable revenue source to fund necessary capital expenditures is desirable.
•A comprehensive approach to review, consider, and evaluate capital funding requests is needed to aid decision-makers and the citizenry in understanding the capital needs of the City.
(2) Projected Revenue. In accordance with the existing accounting system financial transactions are recorded in individual “fund” accounts. Capital improvements will be financed through the following funds:
•Current Expense
•Street Fund
•Arterial Streets
•Stadium Fund
•Airport Fund
•Water Fund
•Sewer Fund
•Industrial Park Project
(a) Revenue By Fund.
(i) Current Expense. The largest fund primarily used for daily operations but also available for most City-wide capital improvements. Sources of revenue are the 100 percent of the sales tax available to the City, fifty (50) percent of the real property tax available to the City, license and permit fees, charges for services (such as charges to other law enforcement agencies for housing of prisoners), intergovernmental (mainly grants), and fines and forfeitures.
(ii) Street Fund. Ongoing street fund revenues are derived from fifty (50) percent of the general real estate taxes available to the City, interest income and fuel taxes. Used for daily administration of street related activities, maintenance, and capital improvements.
(iii) Arterial Streets. Ongoing revenues are produced by fuel taxes and interest income. Although primarily designed for arterial activity, can also be used for general streets. Arterials in Forks are considered to be Bogachiel Way, Calawah Way, Division Street, Sol Duc Way and First Avenue.
(iv) Stadium Fund. Revenues generated by taxes on hotels and motels. The funds must be used for capital facilities and activities related to tourism. Examples of projects that are at least in part funded by the stadium fund include the Forks 4th of July float, the Snyder Creek Hatchery, the North Olympic Peninsula Visitor and Convention Bureau, Visitor Funding and Clallam County Economic Development funding.
(v) Airport Fund. Ongoing revenues are derived from mill site and hangar site leases at the airport and interest earnings. This fund is to be used for activities related to the airport.
(vi) Water Fund. Ninety-five (95) percent of the water fund revenues are derived from charges for water service. The remaining balance comes from interest earnings and meter installation charges. All expenditures must be related to operation of the Forks water system. Approximately $55,000 of this fund is expended each year to retire some water bonds acquired in 1968 and 1978. These bonds will be paid off in 2008.
(vii) Sewer Fund. Fund revenues are derived from charges for sewer service, interest income and sewer hook-up charges. All expenditures must be related to operation of the sewer system.
(viii) Industrial Park Project. As of 1993 this project is almost entirely composed of grant money for the construction of the Forks Industrial Park. It is anticipated in 1994 that a bank loan of approximately $215,000 will be acquired to fund the acquisition of the real estate for the industrial park. The loan will be paid off from the rent generated from the park. Rent moneys from the park will also comprise part of this fund.
Table II, located at Appendix C, indicates the expected revenue available to the City to finance capital improvements for the years 1995-2000. Revenue amounts projected are based on past trends.
(3) Projected Expenditures. For the purpose of this fiscal assessment, projected capital expenditures have been aggregated to include:
•The direct cost of scheduled capital improvement projects presently underway;
•Capital improvement debt service expenditures for outstanding and planned bond issues; and
•The direct cost of capital improvements identified in other plan elements. These expenditures represent additional costs to maintain service needs under projected growth conditions.
(4) Operating and Maintenance Costs. In addition to the direct costs of providing new capital facilities, the City will also incur increases in annual operating and maintenance costs. These are the recurring expenses associated with routine operation of capital facilities. The anticipated increase in annual operating and maintenance costs associated with the new capital improvements and operation costs will initiate in the year following completion of the capital improvement.
Not all of the needed capital improvements will result in increased operational costs. Traffic circulation and housing projects, for example, involve improvements to existing facilities which are already included in the maintenance program, and no significant increase in costs is anticipated for operation or maintenance of such improvements. The most significant increases in operational costs are associated with expansion of facilities which require maintenance of mechanical fixtures, personnel costs, and utility costs.
Currently, total general fund revenues and total operating costs financed from the general fund are anticipated to rise proportionately, ensuring the City will have enough revenue to cover these expenses. However, it is important to evaluate the cost-effectiveness of operating future capital projects.
The actual location of public facilities and services is discussed in more detail in the land use element, and the City anticipates that some capital improvements will need to be sited through the process developed for essential public facilities.
The City has made various adjustments to the type and location of land use as well as adjustments in the timing and funding sources for financing capital improvements. The plan contained in this element represents a realistic projection of the City’s funding capabilities, and ensures that public services will be maintained at acceptable levels of service.