Five Year Capital Improvements Progarm
Revenue Projections
The most significant funding source for the Five-Year Capital Improvements Program (CIP) is the City's income tax revenue. Projecting income tax revenues for the five year period is a significant element in determining resources available for capital programming. Section 2 outlines the financial guidelines used in determining our fiscal capacity to complete capital projects.
In addition to the income tax revenues, the projects associated with the water and sewer systems will be funded in whole or in part by revenues from those systems (i.e. user charges and tap permit fees).
The following pages provide projections for income tax revenues and projections for the water and sewer system operations. The assumptions used for the projected water and sewer system operations are included. Section 6 reflects the debt financed projects that are also supported by service payments from tax increment financing districts and property tax revenue from “inside millage.”
The current five-year CIP assumes 100% of the OEPA/OWDA low-interest loan for the Upper Scioto West Branch Interceptor will be repaid from Sewer Fund revenues. Based on annual reviews, user charges were increased effective January 1, 2008, 2009 and 2010 and the capacity charge for a 3/4” tap was increased to $2,100 effective 1/1/2009. We will continue to closely monitor the revenues and the available resources in the Sewer Fund. Based on maintenance needs of the sanitary sewer system, it is anticipated that additional user charges will be needed in the future.