Agenda - 09-03-1985 - Laserfiche WebLink

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Accuracy- and the Limitations of Projections Few capital projections allow a precise determination of need. Exceptions are facilities such as water and sewer treatment plants. Capacities of these facilities are determined by hydraulic design and state-established standards for -treatment. Failure to provide plants, pumping capability or water- and sewer line capacity can limit development in an affected area. The ability of a water system to provide water sufficient for fire protection is much less precise. While not necessarily limiting growth, the inadequacy of a water system can affect the community's fire protection rating and consequently the fire insurance cost to consumers.. The subject of highway adequacy is even more subjective. Who can determine how long people will put up with how much congestion? Each year the NC Department of Transportation (NC DOT) solicits requests from local' officials of highway needs for consideration and possible inclusion in the State's Transportation Improvement Program (TIP). However imprecise, these requests are used here as indicators of need under the heading "requests". It should also be noted that the NC DOT Transportation Improvement Program for 1985-1994' although subject to change, is the source of transportation cost figures listed in this report. Projections dealing with educational and recreational needs are subject to interpretation as well. School needs are subject to standards such as class size, but otherwise lack the exactitude of the standard for water treatment. Likewise' recreational facilities and parks have standards but they are not universal. In most cases the need is what the governing body says it is. This same definition is applicable in the case of other facilities such as a town hall, fire station or library. Financing Development Bonds: The financial situation of the local governments involved is critical to the issue. Local governments can increase their capital facilities in a variety of ways. In the financing of expensive improvements to meet the needs of the future, one option is bonds. Bond financing is attractive as it allows those users for whom the improvements are made (i.e., future taxpayers) to participate in the cost. General obligation bonds will attract more favorable rates than revenue bonds to provide for utilities. Conservation of a unit's credit rating is essential. A complete analysis of this issue is beyond the scope of this report but a brief look has been taken at the indebtedness of local governments. 1-2