Budget and Financing Basics

A long-term capital funding strategy forecasts how major capital projects will be financed over the next several decades. This also includes a debt strategy, which is a key component of how major capital projects will be financed or paid for. Debt financing allows the City to borrow money to pay for large capital projects that require significant investment upfront and pay them off over a longer period of time. 

Fire halls, recreation centers or major infrastructure including roadways and underground utilities are all considered large capital projects and are essential to our community. 
 

Borrowing money to pay for large capital projects helps the City plan for the future and meet community needs that are imperative to the development of a vibrant community and financially sustainable City.

Using debt financing allows the CIty to begin capital projects sooner, provides flexibility when responding to planned and emergent needs, and shares the costs of long-lived infrastructure among multiple generations.

Properly applied, debt can be a cost-effective source of funding that supports the sustainability of an organization. A debt strategy provides a planned approach to the development of our city.

Saving for large capital projects could take decades. In the meantime, many projects get missed or postponed waiting to save the large amount of funding that is required upfront. When this happens, infrastructure is not maintained, and new needs are not met. Although having the money is ideal, it is not always possible. This is why the City requires different options and strategies when creating budgets and plans for supporting large capital projects. 

Spreading the cost of projects intergenerationally enables costs to be shared among residents who will use or benefit from long-lived infrastructures.