HomeMy WebLinkAboutCapCom FY21 Report & Recommendations - FINAL - 01-23-20_202207141234381557CAPITAL PROGRAM COMMITTEE: FY21 REPORT & RECOMMENDATIONS (FINAL)
January 23, 2020
TOWN OF NANTUCKET – CAPITAL PROGRAM COMMITTEE
FY21 REPORT AND RECOMMENDATIONS
CAPITAL PROGRAM COMMITTEE: FY21 REPORT & RECOMMENDATIONS (FINAL)
January 23, 2020
TABLE OF CONTENTS
Introduction ........................................................................................................................................................................... 1
Summary of Capital Allocations (by Account) ......................................................................................................... 2
General Fund (by Department) .................................................................................................................................. 2
Enterprise Accounts ........................................................................................................................................................ 2
Summary of Funding Sources ......................................................................................................................................... 3
General Fund ...................................................................................................................................................................... 3
Enterprise Accounts ........................................................................................................................................................ 3
FY21 Requests ≥ $1M (by Account) ............................................................................................................................. 4
General Fund ...................................................................................................................................................................... 4
Enterprise Accounts ........................................................................................................................................................ 4
Projected Cost of Borrowing Impacts .......................................................................................................................... 5
Taxpayer & Ratepayer Rates ....................................................................................................................................... 5
Debt Service – Principal & Interest ........................................................................................................................... 6
Statement of Procedures ............................................................................................................................................... 7-9
Procedural Recommendations ............................................................................................................................. 10-12
Prior Year (Renewed)… ........................................................................................................................................ 10-11
Upcoming Year ......................................................................................................................................................... 11-12
Appendices:
Appendix A – Capital Requests by Account & Department
Appendix B – Capital Requests by Funding Source
Appendix C – Typical MA Municipal Capital Funding Sources
Appendix D – Town of Nantucket Tax Rate History
Appendix E – Capital Project Request Form (Specimen)
Appendix F – Appropriations & Expenditures To-date (FY21 Capital Requests)
CAPITAL PROGRAM COMMITTEE: FY21 REPORT & RECOMMENDATIONS (FINAL)
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INTRODUCTION
The Town of Nantucket (Town) continues to recognize that procurement, construction, and
maintenance of its capital assets are critical activities essential to its future fiscal health and the
appropriate delivery of services to citizens and businesses. Arising therefrom, the primary
objective of Capital Program Committee (CapCom) is to develop, carefully plan, and to maintain a
comprehensive Capital Improvement Plan (CIP) that promotes stability and stewardship. The
foregoing and all aspects of this report that follow are per revisions to Town Financial Policies &
Procedures (FP&P) adopted by the Select Board, November 16, 2016. The FP&P represent a best
practice requirement of the Town to participate in, and benefit from, the Massachusetts
Community Compact program.
This report is the culmination of many dedicated hours of the CapCom, our Town Manager
& Administration, the Finance Department, Department Heads, and others. CapCom is grateful for
their ongoing assistance—appropriate development and success of the CIP depends on each of
these efforts and objective professionalism—we take this opportunity to thank all involved for
their timely contributions.
Respectfully, the Town of Nantucket Capital Program Committee:
Chairman, At-large – Stephen Welch
Vice Chairman, At-large – Peter Kaizer
Secretary, At-large – Richard Hussey
Board of Selectmen Representative – Jason Bridges
Finance Committee Representative – Peter McEachern
Member-At-Large Representative – Christy Kickham,
NP&EDC Representative – Nathanial Lowell
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SUMMARY OF CAPITAL ALLOCATIONS (BY ACCOUNT)
For Fiscal Year 2021 (FY21), of 67 requests totaling $52.94M, the Capital Program Committee
recommends capital allocations for 59 requests totaling $42.28M; all values are shown in millions (M).
GENERAL FUND & ENTERPRISE ACCOUNT TOTALS: $42.28M
GENERAL FUND (BY DEPARTMENT)
ENTERPRISE ACCOUNTS
See too:
Appendix A – Capital Requests by Account & Department (w/Request Descriptions)
Dept. Public Works (DPW)
Facilities $1.50M
General $.85M
Transportation $10.89M
Fire Dept. $.20M
IS/GIS $.24M
Marine $.15M
Police $.50M
School $1.57M
Town Administration $4.15M
General Fund Total: $20.04M
Airport $8.08M
Sewer $12.00M
Solid Waste $1.06M
Wannacomet Water Company $1.10M
Enterprise Accounts Total: $22.24M
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SUMMARY OF FUNDING SOURCES
Shown are funding sources for General Fund & Enterprise Accounts:
GENERAL FUND
Ambulance Reserve $.10M
Borrowing $1.03M
Capital Exclusion $1.16M
Debt Exclusion $11.45M
Free Cash $5.95M
Reappropriation $.35M
General Fund Total: $20.04M
* = Within the Levy Limit
ENTERPRISE ACCOUNTS
* = Capital required by Town of Nantucket Code, see Appendix B,
Enterprise Accounts footnote #5
See too:
Appendix B – Capital Requests by Funding Source
Appendix C – Typical MA Municipal Capital Funding Sources
Borrowing $19.72M
Free Cash $.02M
Raise & Appropriate* $1.03M
Retained Earnings $1.46M
Enterprise Accounts Total: $22.24M
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FY21 REQUESTS ≥ $1M (BY ACCOUNT)
Shown are capital requests of greater than or equal to $1M, by Fund-type, keyed to each
request’s Project Code:
GENERAL FUND
ENTERPRISE ACCOUNTS
See too:
Appendix A – Capital Requests by Account & Department
ADMIN Children's Beach Storm Water Pump (HMP ID #F9) $3.30M
DPW-TRANS Newtown Rd. Imprv. (Select Board Strategic Plan (SB SP)) $1.15M
DPW-TRANS Sidewalk Improvement Plan (SB SP) $1.03M
DPW-TRANS Surfside Road Area: Phase II - Lovers Lane Improvements $3.27M
DPW-TRANS Waitt Drive (6FG)/Amelia Drive $3.72M
AIRPORT Airport Improvement Program (AIP) Projects $6.12M
AIRPORT Fuel Farm Rehabilitation - Suppl. Request1 $1.06M
SEWER 108-120 Baxter Rd. Sewer Design/Const. (Phase 1) $2.00M
SEWER Airport Rd Pump Station Upgrades $1.00M
SEWER South Shore Road Sewer $1.50M
SEWER Surfside Roads Area Sewer Improvements (Phase 1) $2.00M
SEWER Surfside WWTF Membrane Upgrades $4.00M
WATER Water Main Replacement $1.10M
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PROJECTED COST OF BORROWING IMPACTS
GENERAL FUND – PROJECTED TAXPAYER IMPACTS
Assumptions:
- Assumptions are based on FY20 approved values and tax rates using a shift of 1.70 and Residential Exemption of 25%
- FY20 Residential Tax Rate is $3.45 per thousand.
- FY20 Commercial Tax Rate is $5.86 per thousand
- FY20 Open Space Rate is $3.29 per thousand
- CIP=Commercial, Ind. & Personal Property. $2M was selected as the benchmark assessment for commercial properties
- Principal and Interest charges are based on 4% over 20 years
Notes:
- The true average commercial property value is $1,520,366. Most of the resort and retail parcels are mixed use
- There are currently 17 properties classified as Open Space. Their average value is $118,682
- Nantucket has not adopted an "Open Space Discount"; difference between Open Space & Res. is the cost of the Res. Exemption
1 = For specific Requests, see Appendix B – Capital Requests by Funding Source, General Fund/Capital Exclusions
See too: “Appendix D – Town of Nantucket Tax Rate History”
ENTERPRISE ACCOUNTS – RATEPAYER IMPACTS
Water & Sewer: To set revenue requirements resulting in a rate schedule adequate for
its needs, the Wannacomet Water Co. Commission has undertaken a review of costs for ongoing
operations, existing and anticipated capital improvements, and anticipated necessary reserves.
Modifications to rate schedule, through a public hearing process, are not yet complete. Latest
posted Wannacomet rate activity is found here: https://tinyurl.com/yb7p7gm9. The foregoing is generally
accurate for the Town of Nantucket Sewer Dept., through the Town of Nantucket Sewer
Commission. A tiered rate structure, to more equitably generate revenue for account obligations
is under development; in the interim, temporary rates have been established—see:
https://tinyurl.com/v52a5wp .
Airport: The Nantucket Memorial Airport pays its obligations from operating revenue
derived from a rate schedule of fees and charges for aeronautical, non-aeronautical, ground
transportation, advertising, and other services; its rate schedule is determined by the Nantucket
Memorial Airport Commission through a public hearing process. Borrowings authorized (other
than for AIP Projects) are typically funded under Bond Anticipation Notes (BANs), which are paid
off by certified Retained Earnings. Latest posted rate activity is found here: https://tinyurl.com/yd57ex8z .
Project/Purpose Type of
Exclusion
Residential Com./Ind./PP Open Space
Projected
Increase
Projected
Rate
Projected
Increase
Projected
Rate
Projected
Increase
Projected
Rate
Capital Equipment
Exclusion1 Capital $ 0.0475 $ 3.50 $ 0.0818 $ 5.94 $ 0.0427 $ 3.33
Newton Road
Improvements Debt $ 0.0034 $ 3.45 $ 0.0068 $ 5.87 $ 0.0006 $ 3.29
Children's Beach Storm
Water Pump (HMP ID #F9) Debt $ 0.0099 $ 3.46 $ 0.0178 $ 5.88 $ 0.0068 $ 3.30
Surfside Road Area: Phase
II - Lovers Lane Roadway Debt $ 0.0098 $ 3.46 $ 0.0177 $ 5.88 $ 0.0067 $ 3.30
Waitt & Amelia Drive
(Supplemental) Debt $ 0.0111 $ 3.46 $ 0.0200 $ 5.88 $ 0.0080 $ 3.30
Totals: $ 0.0817 $ 3.53 $ 0.1440 $ 6.00 $ 0.0647 $ 3.35
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DEBT SERVICE – PRINCIPAL & INTEREST
At the time of this report, General Fund and Enterprise Accounts Amortization Tables were
not available in printable form. As of their availability, a revision to this page will provide web-
links to the tables.
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STATEMENT OF PROCEDURES
To address its mandate (https://tinyurl.com/uj95b7t), which is to help guide the Town’s capital-
related investments and objectives, CapCom maintains certain procedures and undertakes various
initiatives. CapCom also conducts an annual self-examination of related matters. Of note at this
time:
Capital Project Request Forms. CapCom starts its review process collecting and evaluating
comprehensive capital project request forms required of department heads for each capital
request. For various utility, by design, form data is entered directly to a relational
database; CapCom accesses this information in a secure online environment. After
evaluating forms for completeness, CapCom hosts department heads and our Town
Manager and Finance Director for in-depth Q&A sessions; supplemental information,
requested as applicable, is often provided to help complete CapCom’s analysis and
evaluation.
Prioritization & Ranking. After comprehensive analysis and evaluation, CapCom
prioritizes and ranks each fiscal year capital request:
- For integrity of process, linking community needs and goals (e.g. service objectives,
health and regulatory requirements, and strategic and master plans) and a transparent,
unbiased methodology are required.
- To help address this task, CapCom designed and deployed an Analytical Hierarchy
Process (AHP) framework keyed to the Town’s FP&P criteria; AHP establishes a
comprehensive, rational framework and systematizes valuation and application of
multiple, diverse criterion, incorporating the diversity of members’ expertise while
smoothing subjectivity; wildly oversimplified, it is a mathematically-based, human and
social science-informed, blind judging framework. As a result of its use and application,
each request is subject to a single set of objective review standards and analyzed in the
context of community-wide needs. Use of the worksheet produces a numerical Rank of
Relative Importance (RORI) per request, which rankings inform CapCom deliberations.
Perhaps of interest—not every criterion (and its respective value) applies to every
request, and as a result, a RORI value of “80” is actually quite high.
- Expansion of the RORI (to include financial and social impacts, risk-management
variables, Total Cost concepts, and others) and developing its use (to better incorporate
criteria of the FP&P, in CapCom and other Town evaluations) are necessary to meet
FP&P objectives and better align the Town’s capital investment with community goals.
Note: Subject to funding availability and deliverability within the upcoming fiscal year,
higher-valued RORI requests are typically recommended for funding; lower-valued RORI
requests are typically moved into the Town's 10-year CIP; whenever reliable cost-
forecasting is available, that cost is included in the 10-Year CIP and in the alternative, more
often than not, order of magnitude placeholder-values are often requested.
Annual Timeline & Related:
- In early summer, CapCom begins its capital budgeting cycle. Due to the volume of
capital requests and often the complexity and high costs of requests, CapCom’s
preparation and review (including to incorporate its broader charge) require weekly
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STATEMENT OF PROCEDURES
- meetings spanning more than half a year—it is fair to state the process is intensive, and
more so for a volunteer core. Though no longer community-televised, meetings are
open to the public and municipal employees. On subject matter, it’s typically dry and no
public attends; however, for informational purposes the Town Manager periodically
provides Capital Program updates to the Select Board during its regular meetings, and
through this televised forum, to the interested public.
- In recent years, facing larger and larger funding requirements and consistent with the
FP&P, CapCom requires and includes reasonably accurate funding sources and tax
impacts in its annual report—this information is included in the report wherever
relevant to form a basis of general understanding.
- In mid-December—to facilitate the planning of funding sources for its
recommendations and as a material update to the Select Board and FinCom—CapCom
broadcasts its up/down fiscal year recommendations through the Town Manager and
Finance Director.
- In early-mid January, as a function of other budgetary matters, potential funding
sources are identified by the Town’s Finance Director and Town Manager; shortly
thereafter, CapCom meets to review, discuss, and vote its recommendation on funding
sources and to reconcile discrepancies, if any, with the Town Manager.
- In mid-January, after the Select Board preliminarily adopts capital funding sources, tax
rate impacts are tallied for inclusion in the CapCom report and for later notice (per
Commonwealth regulation).
- In late-mid January, with relevant information in hand, CapCom prepares its draft
report. Given the strong interrelationship between its recommended requests, funding
sources and capacity, tax impacts and the like, CapCom drafts its report after relevant
information is fully, or at least reasonably, gathered.
- In late January, after final review by its membership, CapCom issues its final annual
report with recommendations, with original copy provided to the Select Board and
FinCom at a joint meeting.
Note: This year, as in the past, Town capacity and resource issues led to a material number
of requests being untimely or incomplete. To address late requests and maintain proper
diligence, CapCom again modified its meeting schedules, repeatedly, extending its request-
related review schedule with forbearance; this rescheduling impacted other review duties
such as the depth of out-year and capital project status updates. To be clear, Town capacity
and resource issues are not the fault of any particular party but rather, they are the result
of Town growing pains which require proactive and ongoing measures (including as
provided in our Recommendations that follow) to quickly mature the Town’s capital asset
management practices.
Other Communication & Planning:
- Committee Updates. CapCom affirms the utility of Select Board and FinCom receiving
updates on material matters as reported by their respective CapCom
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STATEMENT OF PROCEDURES
representative during the Committee Update section of regular meetings.
Note: In attempt to regularize committee reporting for CapCom’s Select Board, Finance
Committee and NP&EDC members, an information transmittal sheet (the “Green Sheet”)
was attempted early in this budgeting cycle but was found wanting; alternatives are
addressed in the following recommendations. Also, subject to development of database
reporting capability, important information (e.g. projects, by year or otherwise; prior
appropriations and expenditures to-date; project status, CapCom review status, etc.)
can be readily accessible to Select Board and FinCom at the click of mouse, through a
secure portal. Still, CapCom anticipates targeted future use of Green Sheets to convey
timely information on topics such as Funding Capacity, Capital Reserves, etc.
- Department Liaisons. Ordinarily, CapCom designees serve as liaisons to departments to
review current and out-year capital requests in situ, to develop a thorough
understanding of department needs for insight during CapCom deliberation, and to
observe capital maintenance and other reasonable concerns. As a result of CapCom
composition (which includes a member from each of the Finance Committee, the Select
Board, and the Nantucket Planning & Economic Development Commission), the exercise
is also intended to provide a degree of insight to integrational planning. However,
during this budgeting cycle, CapCom liaison involvement was not activated by Town
Administration. CapCom reaffirms the importance of department liaisons.
- Joint Meetings. After in-depth discussion, CapCom determined by unanimous consent
that a joint meeting (of the entirety of the CapCom, the Select Board, and FinCom) held
annually, at the beginning of the capital budgeting cycle, will help all parties to refocus
as a group on capital projects and related budget matters; this, with insights of the
Town Manager and Finance Director. The CapCom determined too, that joint meetings
at or near the tail-end of the capital budgeting cycle, to summarize capital requests
likely to be recommended for funding in the upcoming fiscal year (with CapCom’s
report and recommendations nearly imminent) offer no measurable benefit—bit of a
bust—and that this type of information sharing could, and should for various reasons,
be accomplished in other ways. (See Statement of Procedures: “Committee Updates”
and “Strategic Integrated Planning Sessions”.)
- Strategic Integrated Planning Sessions (SIPS). This year, to help broaden decision-maker
and advisor communications, and to provide an opportunity for discussion on emergent
capital-related matters with some perspective on ‘Causes of The Day’, CapCom
suggested and initiated SIPS with thanks to the Town Manager. Matters addressed or
discussed to-date have been regarding i) Town Meeting Article guidance for citizens,
including a Q&A format revision regards financial and social costs and related impacts
and benefits, ii) discussion around the “Bear of a Task” engaging stakeholders and
constituents such that they are informed about important capital expenditures, and iii)
other matters not ordinarily addressed without group support. These sessions are
intended to occur during the capital budgeting cycle; continuance of these sessions
should be fruitful, but best if agenda-driven and brief.
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PROCEDURAL RECOMMENDATIONS
CAPCOM AFFIRMS PRIOR YEAR COMMENTS & RECOMMENDATIONS
The Town’s aging and lack of essential infrastructure and equipment require appropriate
capital purchase, maintenance, and replacement while our rapidly growing year-round and
seasonal population provides constant pressure on the Town to expand capital infrastructure and
inventory. Not widely factored, currently, are costs to build our community’s coastal resiliency
and determine timely, adequate hazard mitigation measures; these remain relatively new
concerns in response to changes to our natural environment. Whether it is more frequent severe
storms or coastal flooding, or other hazards, the Town and community recognize the need to
protect our built and natural resources by adaptation, mitigation, and other means; of course,
these protections come at a cost. As a result of these circumstances, the Town’s capital needs are
projected to increase in a relatively dramatic fashion for a sustained period. Faced with these
challenges and the associated expenses, and the stewardship of responsible governance, a robust
and effective CIP remains essential. Essential too, is highly-effective management of capital assets
as exist, and that are acquired or constructed. Professional fiscal management objectives of the
Town’s FP&P lay the groundwork; faced with these growing pains, including as a result of effects
from the natural world, our shortcoming is capacity. In conjunction with existing programming, in
keeping with the intent of objectives under the FP&P, to help develop the CIP-process to its
intended capacity, and in the interest of smoothing the capital planning process and its impacts,
we make the following recommendations:
Annual Process – Timeline. Continue to reevaluate and adjust information-gathering
schedules and procedures as necessary to help ensure completion of CapCom’s actions as
required under the FP&P.
Biennial Procedure - CIP Capacity & Funding Analysis. To reasonably inform CapCom
recommendations, biennially model the 10-year CIP to include a 5-year outlook of revenue
and expenditure projections (including sub-reports for debt burden, prospective debt
issuance, and other relevant metrics), with results presented to CapCom; it is understood
and acknowledged that the Town’s Finance Director performs more regular, shorter-term
modeling of this nature. (See too, Development of Reliable 10-Year Capital Improvement
Plan (CIP) below.)
Biannual Procedure - Capital Project Status Reporting. Better develop current biannual
reporting sessions to monitor approved requests (to include expenditures to-date, the
necessity for supplemental funds, scheduling exceptions, and discontinuances of projects
or any severe problems, if any) to help identify capital planning shortfalls; foregoing,
drawing on an active, readily accessible list of past years projects and their status.
System-wide Capacity - Centralize Capital Asset Management. A result of growing pains, the
Town’s capital asset management is fractured in various regards and important tasks are
regularly subject to competing priorities; these circumstances undermine capital
programming proficiency and form obstacles to timely and cost effective deliverables.
Even simpler request and reporting duties are impaired. With too limited capacity and
resources, reasonably comprehensive management of the Town’s existing and rapidly
expanding capital inventory is unrealistic. These and other negative effects will worsen as
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PROCEDURAL RECOMMENDATIONS
the number, cost, and complexity of capital projects increase. Action is required; capital
programming needs to be an ongoing process with appropriate resources. A common
enterprise-level solution is centralized capital asset management, which streamlines capital
programming, budgeting, and sustainment, leveraging dedicated resources to eliminate
issues—such as the Town currently experiences—while preempting other issues and
problems. This level of involvement and processing is also required for timely and informed
decisions by leadership and to enhance performance of the Town’s capital investments—to
help ensure high-value returns to the community while helping constituents understand
capital needs and the utility of improved community-wide resources.
Carefully developed and implemented, these recommendations create efficiency, savings,
and needed relief, along with increased credibility among taxpayers, ratepayers, and others.
While some of the recommendations involve procedural changes absorbable through longer-term
scheduling of processes, others require funding to complete stated objectives. In all regards,
CapCom suggests special attention is required to limit priority-related conflicts among and
between Town staff and other resources, and more so during times of cyclical responsibility (e.g.
preparation and presentation of the annual operating budget and for Town Meetings, etc.).
Note: The foregoing recommendations were addressed previously in CapCom’s FY19 Report &
Recommendations, in greater detail, and subsequently summarized (largely as above) in the
CapCom’s FY20 Report & Recommendations; inclusion within this FY21 Report &
Recommendations is a strong affirmation of the Town’s needs and CapCom’s related
recommendations, which by their nature are meant to identify and inspire related, important
actions. In the face of quickly escalating capital investment requirements, if not yet made clear,
there is a need to better equip current and future municipal leaders/decision makers with
sufficient tools to act effectively, to enhance and protect the Town’s capital assets, and realistically
plan for Town’s future,.
ADDITIONAL COMMENTS & RECOMMENDATIONS
Expansion of RORI. See comment earlier in the body of the report, provided topically under
Statement of Procedures: Prioritization & Ranking.
Development of the Capital Project Request Form Relational Database. In 2017, CapCom
undertook to overhaul the departmental-level capital request form, conceiving it as a portal
of information to a comprehensive capital projects data-collection and program
management tool. The request form interface is completed, providing various benefits, not
the least of which is the elimination of duplicate data entry and minimization of potential
human error. The database was/is intended to be an interactive repository of ‘all things
capital’ (past, present, and ‘likely future’), to provide collection and reporting efficiency and
features not currently available. Regular reports with the potential to cover the entire
capital planning process (from submission through financial analysis, ranking, funding
source projection, to assist in rapid debt modeling, and to inform interested public bodies)
can be developed and made accessible. Presently, while not disparaging efforts or
advances to-date, the database is under early-stage development; capital request inputs,
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PROCEDURAL RECOMMENDATIONS
RORI inputs and basic management, and relatively gross reporting capabilities are proofed
and in use. Properly developed, the database solves for resource conflicts, freeing
professional staff for other important tasks while providing timely information access. One
of many important elements is to include capital-request-related personnel costs, using an
efficient click-to-enter interface for reporting capabilities, to inform Town Manager
/Finance Director, Select Board and FinCom budgetary reviews. Another is automated
reports to the Select Board, and FinCom, including Prior Year Appropriations
w/Expenditures To-date, and direct access to individual capital request forms.
Department-level training and access is imperative.
Review Town’s Debt and Reserve Policy. (Self-explanatory.)
Development of Reliable 10-Year Capital Improvement Plan (CIP). It is fair to state the
current 10-year CIP is less a plan than it is a partial list of likely future capital projects. This
state of affairs directly reflects the lack of capital programming capacity and resources
within the Town. MA DOR advises a reasonably accurate 10-year CIP is required for
adequate planning of municipal finances. And, facility and department-level equipment
and infrastructure management plans, each based on well-developed and properly
completed and maintained capital asset needs assessments, are essential to the successful
development and efficient use of a municipality’s 10-year CIP. Provided adequate
resources, development of such a plan, focused for various utility to two 5-year increments,
is obtainable and broadly beneficial. An updated version of the 10-year CIP was not
available at the time of printing this report.
CapCom acknowledges its recommendations may seem ambitious and understands
outcomes cannot happen overnight; still, we strongly support the Town’s regular steps towards
enterprise-level capital asset management practices—even small regular steps help to form a
material outcome.
Given vision and resolve, the proficiency and effectiveness of the Town's Capital
Management Program are limited only by the appropriateness of resources engaged in the
endeavor; properly administered over time, dramatic savings—including to help fund the capital
asset management program itself—may be realized.
Code Dept./Request FY21
Request
CapCom
Rec.CapCom - Comments of Note
FAC-20-002 ADA Facility Upgrades $.6M $.05M Level funding; lack of information & capacity
FAC-20-008 Annual Facilities Site Paving Updates $.53M $.25M Level funding; lack of information & capacity
General Building Envelope (Repair/Replace)
Roof/Siding/Windows
Continue to address and expand General Building
Envelope Roof/Siding/Windows (Repairs/Replacements)
FAC-20-005 Building Space General (Renovations)$.6M $.15M Level funding; lack of information & capacity
TON Annual Facility Equipment (Repair/Replace)
Annual repairs/replacements necessary to maintain
functioning facilities
FAC-20-004 TON Facility Bathroom (Repair/Replace)$.6M $.25M Level funding; lack of information & capacity
FAC-20-006 TON Facility Lighting (Repair/Replace)$.2M $.05M Level funding; lack of information & capacity
TON Facility Utility Systems (Repair/Replace)
TON HVAC, Water, Sewer, Drainage, Electrical, Elevator
Updates
Town-wide Facilities Master Plan
This project will engage a consulting firm to work with the
town in the development of a town wide facilities master
plan. [$400K from 2FG Prelim. Study; $54K spent LLB 4
yrs. Ago]
DPW-18-001 CCTV Phased Work (Stormwater)$.27M $.27M
DPW-21-005 Fleet - 6-wheel Dump Truck $.18M $.18M
DPW-21-002 Fleet - Electric Admin Vehicle $.05M $.M Rev. request, move to Operating
DPW-21-006 Fleet - Fleet Service Vehicle (Utility Body)$.18M $.M
DPW-21-004 Fleet - Ford F-350 $.06M $.06M
DPW-21-001 Fleet - Sweeper (Replace oldest sweeper 5-year Life)$.25M $.25M
DPW-21-003 Fleet - Two Ford Ranger(s)$.09M $.09M
Cobblestone Improvements
Cobblestone Improvements to our 18,000 SY of
cobblestone streets. Annual program based on 2,000 SY
and a 9-year life cycle, materials costs and adjusted for 3%
inflation. Locations to complement our newly formed DPW
Sidewalk Work Group project locations like Upper Main
Street.
Multi-use Path Mntc. (Select Board Strat. Plan ((SB SP))
Multi-Use Path (MUP) Improvements per our 31 mile
inventory, specific locations to be determined by our MUP
Pavement Management Report (pending). Annual program
based on a 15-year life cycle, current contract pricing, and
is adjusted for 3% inflation
Newtown Road Improvements (SB SP)
Improvements to Newtown Road - sidewalk, paving,
addition of speed tables
Permanent Traffic Data Collection Stations (SB SP)
Continuance of traffic data collection stations at various
locations across the island
Road improvements/Maintenance Island Wide (SB SP)
Proposed Roadway Improvements per our Pavement
Management Plan.
Sconset Footbridge Construction
Repairs to Sconset Footbridge based off of
recommendations from Vertex (engineer)
TRAN-17-001 Sidewalk Improvement Plan (SB SP)$1.03M $1.03M
Appendix A – Capital Requests by Account & Department
GENERAL FUND
Level funding; lack of information & capacity$.6M $.15M
FAC-20-007
FAC-20-003
FAC-21-002
$.15M $.1M
Staging Nantucket 2050; Imperative for success
that the study by iterative, involving constituents
at each layer of development--involving only a
select workgroup is a waste of money.
$.35M $.35M
$.6M $.15M Level funding; lack of information & capacity
FAC-20-001
Level funding; lack of information & capacity
TRAN-20-001
TRAN-20-002
TRAN-21-001
TRAN-17-002
TRAN-19-010
TRAN-17-005
Subject to 250K funding max.$.25M$.52M
$.25M$.22M
$.12M$.15M
Due to current capacity, subject to $1M funding
max.$1.M$3.65M
$.1M$.1M
$1.15M $1.15M
DPW
Facilities
General
Transportation
Code Dept./Request FY21
Request
CapCom
Rec.CapCom - Comments of Note
Surfside Road Area: Phase II - Lovers Lane Roadway
Improvements
Design, bid, and reconstruct Monohansett, Lovers Lane,
and Okorwaw; Lovers Lane portion.
Waitt Drive (6FG)/Amelia Drive
Engineering and construction of Waitt Drive/Amelia Drive
block. This roadway will access the new workforce
housing site at the 4FG/6FG site. The project will also
bring needed infrastructure improvements to Amelia
Drive.
ALS Equipment
This request will equip ambulance with necessary
equipment for ALS certified ambulance service upgrade
Replace Self-contained Breathing Apparatus units (SCBA)
Replacement over a 4 year period of the fire departments
self contained breathing apparatus (SCBA) equipment
FIRE-21-002 Trench Rescue Equipment $.22M $.M FY22: Concept supported; interested in policies/
protocols for use, storage
ADMIN-17-001 Network Infrastructure $.1M $.1M
Replace Town Computers
Replacement of town desktops and laptops using a
replacement cycle of five years for desktops and three
years for laptops.
Server Virtualization
Continued support of server virtualization project
Pump-out Boat Replacement
Replacement of a pump-out boat; 2nd to largely match
another existing pump-out boat.
Our Island Home Facility
Design and construction of a new Our Island Home facility
Loran Housing (SEWER)
Connection of the Loran housing facility to the town sewer
system
Public Safety Auxiliary Building
Creation of an auxiliary building at the public safety
complex. This would be used for storage and light
maintenance by both the police and fire departments.
Bobcat Replacement
This request is to replace the Bobcat for the Ground
Department. The Bobcat was purchased used in 2004. It
has had several mechanical issues over the past few years
and now has been deemed unfixable. We use this
equipment for many grounds functions including plowing,
digging, moving large items and general maintenance.
Campus Wide Improvement Plan
We have an RFQ out for a Campus Wide Master Plan. The
money for this study was approved in FY20. The plan will
examine classroom space needs and athletic field
placement as we plan for the future growth of our district.
The plan is to request $750,000 each year for Athletic Field
Improvements as suggested by the pending master plan.
Include future-use capacity
High cost-to-use; however, investment is
necessary to extend useful life of rolling stock;
Recommended for FY21 funding--no funding
source.
TRAN-17-004 $3.27M
FIRE-19-002
FIRE-20-001
TRAN-19-002
$3.27M
Scope & related, hashed and rehashed $3.72M$3.72M
Fire Department
$.1M
NPS-20-001
NPS-21-001
PUBL-20-001
PUBL-21-002
Police Department
Our Island Home (G)
Marine Department
IS/GIS
$.1M
$.1M$.1M
School Department
OIH-17-001
PUBL-21-001
ADMIN-17-002
ADMIN-18-001
Initially recommended as Capital Exp. subject to
voter determination. Initially recommend as
capital exp. subject to voter determination;
funding changed to Free Cash thru Operating due
to scope/inability to borrow. btfin.
$.15M$.15M
$.08M
$.07M$.07M
$.08M
$.06M$.06M
$.M$3.M
$.5M$.5M
$.M$.5M
$.75M$.75M
Appendix A-2 of 5
Code Dept./Request FY21
Request
CapCom
Rec.CapCom - Comments of Note
IT Infrastructure
This request is to replace outdated servers and equipment
which are imperative to our every day operations.
NHS Boiler Replacement
The NHS boilers themselves are original to the building
which was constructed in 1990. They have been
refurbished twice due to internal leaking, we are told the
gaskets cannot be replaced again. We’ve also had a
multitude of other issues with them this past winter. These
two large boilers had a 25 year life, by this time next year
they will be 30 years old. The burners were replaced 12
years ago.
NPS Building Improvements
This request is for building & grounds improvements for
the Public Schools. The requested funding will include
repairs to all school buildings. We know that this funding
won't be sufficient for all repairs, but it will be help to get a
great deal completed.
Children's Beach Storm Water Pump (HMP ID #F9)
Design and complete repairs to Children's Beach storm
water pump and outfall to improve reliability and
reduce/eliminate backflow into the pump and drainage
system during high tides. This supports the drainage area
of more than 150 acres.
Fulling Mill Road (HMP ID #F10)
Participate in a limited public-private partnership with
Nantucket Engineering & Survey tom complete a study of
the Fulling Mill Road Watershed, in particular the
hydrologic conditions at Polpis Road, to identify design
alternatives for improvements to this area.
Harbor Master Building and Town Pier (Suppl.)
Funding to supplement design/install wave attenuator
Island-wide Underground Wiring Feasibility Study
Feasibility study/assessment of town-wide or old historic
district project to get all wires underground
Town-wide Document Management System
Costs associated with the continuation of an electronic
document management system. project entails scanning,
categorizing and archiving hard documents into a cloud
based storage system.
Town-wide Security Measures
Assessment of security measures for municipal buildings
with recommendations. 34K spent over the last few years
for key card access implementation for various offices.
GENERAL FUND SUBTOTAL:$30.54M $20.04M
Note: With very minor exception, descriptions above are as submitted by respective department head.
Town Administration
$.3M$.3M
$.3M$.3M
NPS-21-002
NPS-21-003
NPS-17-001
HMP-21-006 $3.3M$3.3M
$.15M$.15M
Resolve into existing appropriation
Consider FY22 subject to various additional
information noting as proposed too high cost-to-
value ratio
Subject to context (Facilities Master Plan, Hazard
Mitigation Plan, Coastal Resiliency, etc. and1$.5M$.5MADMIN-21-002
HMP-21-007
HMP-21-004 $.7M $.M
$.M$.2M
ADMIN-21-001
ADMIN-20-003 $.25M $.25M
$.1M$.1M
1 = CapCom: "Can TON require utility companies materially, in coordination with TON, i) underground utilities, and ii) contribute directly to related costs?" TON
Counsel: "This falls under G.L. c.166, s.22D which allows the Town to pass a bylaw requiring utilities to bury exiting OH lines and to expend not less than 2% of preceding
year gross revenues derived from Town customers for such undergrounding projects. Section 22M allows the utility to collect a surcharge from Town customers to cover
these costs."
Appendix A-3 of 5
Code Dept./Request FY21
Request
CapCom
Rec.CapCom - Comments of Note
Airport Improvement Program (AIP) Projects
AIP projects: FY21 - Security Upgrades Supplemental
Capital Request; typically, FAA/Mass DOT cost-sharing
Airport Maintenance & Equipment
Maintenance, equipment, and vehicles for the airport:
FY21 - Emergency Generator Housing; JD Z-Trac Mower;
LED Runway Closure Markers; Replace Crew Truck (A4)
Direct Digital Control System for Terminal Geothermal
Furnish and install new D.D.C. controllers for following
systems: hot & chilled water system, (5) Roof top units, 16
unit heaters - including new temp sensors, 20 fan powered
boxes including new tamp sensors, (1) network controller,
(1) computer w/ 24" monitor
Fuel Farm Rehabilitation - Suppl. Request
Replace deteriorated piping (with stainless steel that
requires no painting), pumps, cabinets, flame detection
Groundwater and Soil Investigation
Regulatory and non-regulatory investigation and
remediation of soil and groundwater on and around
Nantucket Operations and ARFF
Continued investment in NMA: FY21 - GPU ground power
unit (replace 20yr decommissioned), Replacement Bus (1
of 2), Aircraft Tug (15 yrs)
Replace ceiling tile
Replacement of drop-ceiling ceiling tiles and tracks,
various locations throughout facility.
Sprinkler System
Replace Main Sprinkler Piping
108-120 Baxter Rd. Sewer Design/Const. (Phase 1)
Engineering, design and construction of a new sewer line
to serve the Sconset Sewer District, draft plan has been
developed; funding in anticipation of req. to act and having
ability to do so. 1st $2M the relocation of the utilities in
that short section of roadway on Baxter Road; remainder
$20M+- for cont. install. sewer in expanded Baxter Road
Area--it is not settled that this will actually happen, subject
to bettered etc
Airport Rd Pump Station Upgrades
Upgrade of 30 year old Pump Station to include but not
limited to: Wet Well, Controls and Control Panel, Pumps,
Valves and piping, Bypass connection, New electrical
transformer and infrastructure as current station is
powered by Nantucket Inn, SCADA and RTU. Bring station
to current standards and size for future
Aurora Way Pump Station Upgrade
Upgrades to existing pump station. Final estimates will
come out of the Sewer Master Plan
Replace Ford F-550 Dump Truck
Replace dump truck not approved last round, resubmitting
Revise scope to target issues, move to Operating
ENTERPRISE ACCOUNTS
Sewer
Our Island Home (E)
Airport
$1.06M $1.06M
$.25M
Typical: NMA Borrowings (all but AIP) typically
pay off BANs after certification of Retained
Earnings [Grants typically: FAA 5% contribution;
Massport 10%, each only towards Eligible
expenditures]
$6.12M$6.12M
$.19M $.19M
$.21M
$.13M
$.06M
NMA-20-002
NMA-19-004
NMA-19-001
NMA-19-003
DH Low Priority for FY21; Recommended for
FY22 request (unless FY21 Free Cash avail.)
$.06M
$.13M
SEWER-21-004
$.25M
$.25M$.25M
OIH-21-001
NMA-20-001
NMA-21-001
$.21M
Revise scope to target issues, move to Operating$.M$.09M
$.M$.07MOIH-21-002
SEWER-19-001 $1.M$1.M
Confirmed phasing, supplemented Description$2.M$2.MSEWER-17-001
SEWER-20-002
Appendix A-4 of 5
Code Dept./Request FY21
Request
CapCom
Rec.CapCom - Comments of Note
Sconset Sewer Design & Const. (Phase 1)
Replace sewers in the village of Siasconset that were
installed in 1914 and are in very poor conditions
South Shore Road Sewer
Design and construction of a gravity sewer and pumping
stations to meet future flows and to serve needs areas
South Valley Pump Station Upgrades
Upgrade of a 1986 Main pump station located in the
Naushop subdivision. This pump station was part of the
Richmond group project area that they had agreed to pay
at least $250,000.00 towards the upgrades of this station
that would be receiving flows from there project. Original
estimates from 2015 have gone up substantially as well as
codes and regulations have changed. We have an
estimated total now for this project by Hazen and Sawyer
of $846,000.00 Includes: Genset appurtenances &
structural work; HVAC for both rooms; Mission
instrumentation (note: the plans still indicate the RTU-4);
3 MCC's (1) spare pump; manual ATS/remote gen hookup;
fuel station; security alarm; level transducer; 120v x fmr;
120V lighting panel; grounding grid, and misc site work.
Excludes: Roofs, gutters, downspouts, windows/door trim
(note: the plans DO indicate a new roof and trim) Estimate
$846,000 (-10% +15% bid range $761,000-$973,000) FYI
adding roof and trim back into the scope increase cost
~$15k
Surfside Roads Area Sewer Improvements (Phase 1)
Improvements to the sewer infrastructure in the Surfside
area; pump station location involved. [Phase 1, of total
approx.. $7.5M; Surfside/Atlantic/Bartlett Sewer Mains,
Surfside WWTF Membrane Upgrades
Replace original GE Zenon Membranes with New LEEP
Aeration system membranes. Membranes have a life
Upgrade Wastewater Laboratory (MA Audit)
Upgrades to original Lab installed in 2008 to bring all
equipment and testing to current standards and
regulation. A lab audit is being performed in Late 2019
Solid Waste
MRF Facility Improvements/Repairs
Renovate/Replace Facility features such as Roof,
Lunchroom, Bathrooms, Siding, Louvers/Vents, Guardrails.
MRF New Sorting Station & Conveyors
Replace original Sorting Station; Sort Conveyor; and MRF
Primary Feed Conveyor System
Water Main Replacement
Continuation of the water main replacement program;
Washington Street Ext., aged out, outflow/seepage, other
concerns
ENTERPRISE ACCOUNTS SUBTOTAL:$22.4M $22.24M
GENERAL FUND & ENTERPRISE ACCOUNTS TOTALS:$52.94M $42.28M
Note: With very minor exception, descriptions above are as submitted by respective department head.
Wannacomet Water Company
$1.5M
$.35M$.35M
SEWER-21-001
$2.M$2.MSEWER-20-005
$1.5M
$.85MSEWER-20-004
SEWER-20-003
SEWER-21-003
$.85M
SWEF-21-001
WANN-21-001
SWEF-21-002 $.47M $.47M
$1.1M$1.1M
$.59M$.59M
SEWER-18-001 $4.M $4.M
Legal Requirement$.13M$.13M
Appendix A-5 of 5
Dept.Code Request by Funding Source CapCom
Rec.
FIRE FIRE-20-001 ALS Equipment $.1M
Total Ambulance Reserve:$.1M
DPW-TRANS TRAN-17-001 Sidewalk Improvement Plan1 (Select Board Strategic Plan (SB SP))$1.03M
Total Borrowing:$1.03M
DPW-GNRL DPW-18-001 CCTV Phased Work (Stormwater)$.27M
DPW-GNRL DPW-21-005 Fleet - 6-wheel Dump Truck $.18M
DPW-GNRL DPW-21-004 Fleet - Ford F-350 $.06M
DPW-GNRL DPW-21-001 Fleet - Sweeper (Replace oldest sweeper 5-year Life)$.25M
DPW-GNRL DPW-21-003 Fleet - Two Ford Ranger(s)$.09M
FIRE FIRE-19-002 Replace SCBAs $.1M
MARINE PUBL-21-001 Pump-out Boat Replacement $.15M
SCHOOL NPS-21-001 Bobcat Replacement $.07M
Total Capital Exclusion:$1.16M
ADMIN HMP-21-006 Children's Beach Storm Water Pump (HMP ID #F9)$3.3M
DPW-TRANS TRAN-17-005 Newtown Road Improvements (SB SP)$1.15M
DPW-TRANS TRAN-17-004 Surfside Road Area: Phase II - Lovers Lane Improvements $3.27M
DPW-TRANS TRAN-19-002 Waitt Drive (6FG)/Amelia Drive $3.72M
Total Debt Exclusion:$11.45M
ADMIN ADMIN-21-002 Island-wide Underground Wiring Feasibility Study $.5M
ADMIN ADMIN-20-003 Town-wide Document Management System $.25M
ADMIN ADMIN-21-001 Town-wide Security Measures $.1M
DPW - FAC.FAC-20-002 ADA Facility Upgrades $.05M
DPW - FAC.FAC-20-008 Annual Facilities Site Paving Updates $.25M
DPW - FAC.FAC-20-001 General Building Envelope (Repair/Replace)$.15M
DPW - FAC.FAC-20-005 Building Space General (Renovations)$.15M
DPW - FAC.FAC-20-007 TON Annual Facility Equipment (Repair/Replace)$.1M
DPW - FAC.FAC-20-004 TON Facility Bathroom (Repair/Replace)$.25M
DPW - FAC.FAC-20-006 TON Facility Lighting (Repair/Replace)$.05M
DPW - FAC.FAC-20-003 TON Facility Utility Systems (Repair/Replace) $.15M
DPW-TRANS TRAN-20-002 Cobblestone Improvements $.25M
DPW-TRANS TRAN-20-001 Multi- Use Path Maintenance (SB SP)$.25M
DPW-TRANS TRAN-19-010 Permanent Traffic Data Collection Stations (SB SP)$.12M
DPW-TRANS TRAN-17-002 Road improvements/Maintenance Island Wide (SB SP)$1.M
DPW-TRANS TRAN-21-001 Sconset Footbridge Construction $.1M
IS/GIS ADMIN-17-001 Network Infrastructure $.1M
IS/GIS ADMIN-18-001 Replace Town Computers $.06M
IS/GIS ADMIN-17-002 Server Virtualization $.08M
POLICE PUBL-21-002 Loran Housing (SEWER)$.5M
SCHOOL NPS-20-001 Campus Wide Improvement Plan $.75M
SCHOOL NPS-21-002 IT Infrastructure $.15M
SCHOOL NPS-21-003 NHS Boiler Replacement $.3M
SCHOOL NPS-17-001 NPS Building Improvements $.3M
Total Free Cash:$5.95M
DPW - FAC.FAC-21-002 Town-wide Facilities Master Plan $.35M
Total Reappropriation:$.35M
GENERAL FUND SUBTOTAL:$20.04M
1 = Town Admin anticipates these may be funded w/in 2-1/2 Levy Limit
GENERAL FUND
Appendix B – Capital Requests by Funding Source
Ambulance Reserve Fund
Borrowing
Capital Exclusion
Debt Exclusion
Free Cash
Reappropriation
Dept.Code Request by Funding Source CapCom
Rec.
AIRPORT NMA-19-003 AIP Projects1 $6.12M
AIRPORT NMA-19-001 Airport Maintenance & Equipment $.19M
AIRPORT NMA-19-004 Direct Digital Control System for Terminal Geothermal $.21M
AIRPORT NMA-20-001 Nantucket Operations and ARFF $.25M
SEWER SEWER-17-001 108-120 Baxter Rd. Sewer Design/Const. (Phase 1)$2.M
SEWER SEWER-19-001 Airport Rd Pump Station Upgrades $1.M
SEWER SEWER-20-003 South Shore Road Sewer $1.5M
SEWER SEWER-20-004 South Valley Pump Station Upgrades $.85M
SEWER SEWER-20-005 Surfside Roads Area Sewer Improvements (Phase 1)$2.M
SEWER SEWER-18-001 Surfside WWTF Membrane Upgrades $4.M
WATER WANN-21-001 Water Main Replacement $1.1M
AIRPORT NMA-20-002 Fuel Farm Rehabilitation - Suppl. Request2 $.5M
Total Borrowing:$19.72M
S.WASTE SWEF-21-001 MRF New Sorting Station & Conveyors3,5 $.02M
Total Free Cash:$.02M
S.WASTE SWEF-21-001 MRF New Sorting Station & Conveyors3,5 $.57M
S.WASTE SWEF-21-002 MRF Facility Improvements/Repairs4,5 $.47M
Total Raise & Appropriate:$1.03M
AIRPORT NMA-20-002 Fuel Farm Rehabilitation - Suppl. Request2 $.56M
AIRPORT NMA-21-001 Groundwater and Soil Investigation $.25M
SEWER SEWER-21-004 Aurora Way Pump Station Upgrade $.06M
SEWER SEWER-20-002 Replace Ford F-550 Dump Truck $.13M
SEWER SEWER-21-003 Sconset Sewer Design & Const. (Phase 1)$.35M
SEWER SEWER-21-001 Upgrade Wastewater Laboratory (MA Audit)$.13M
Total Retained Earnings:$1.46M
ENTERPRISE ACCOUNTS SUBTOTAL:$22.24M
GENERAL FUND & ENTERPRISE ACCOUNTS TOTALS:$42.28M
2 = Fund $558.6K Retained Earnings; $500K Borrowing
3 = Fund from Annual Required Capital Investment ($34,750 ) & Free Cash ($24,250)
4 = Fund from Annual Required Capital Investment
ENTERPRISE ACCOUNTS
Borrowing
1 = Airport Improvement Program (AIP) Grant funding sought to pay up to 90% cost; MASSPORT funding may be available to cover up
to 5%
5 = Annual Requirement: 1% of prior year's total Town local receipts plus 1% of prior year's total collected real estate and personal
property taxes; Annual Required Capital Investment for FY21 = $1,033,750; (label R&A) btfin
Raise & Appropriate
Retained Earnings
Free Cash
Appendix B-2 of 2
C-1 of 2
Appendix C – Typical MA Municipal Capital Funding Sources
Local
1) Borrowing:
a) General Obligation Bonds (aka, "GO Bonds"). These are issued for a period of time ranging from 5 to
30 years, during which time principal and interest payments are made. Making payments over time
has the advantage of allowing the capital expenditures to be amortized over the life of the project.
Funding sources used to pay back the debt can include:
i) Bonds funded within the tax limits of Proposition 2 ½: Debt service for these bonds must be
paid within the tax levy limitations of proposition 2 ½. Funds used for this debt must be carefully
planned in order to not impact the annual operating budget.
ii) Bonds funded outside the tax limits of Proposition 2 ½ -- Debt Exclusion Bonds1: Debt
service for these bonds is paid by increasing local property taxes in an amount needed to pay the
annual debt service. Known as a Debt Exclusion, this type of funding requires approval by 2/3 vote
of the local appropriating authority (e.g., city council or town meeting) and approval of majority of
voters participating in a ballot vote. Prior to the vote, the impact on the tax rate must be
determined so voters can understand the financial implications.
iii) Bonds funded with Enterprise Funds: Debt service for these bonds is typically paid by user fees,
such as water and sewer revenue. Depending upon the type of project, interest costs may be
subsidized by the Commonwealth and at times partial grant funds may be available (see below).
Enterprise funds do not affect the general operating budget unless general funds are needed to
subsidize revenues from the enterprise. Prior to the issuance of debt, the projects must be
analyzed for their impact on rates.
b) Capital Exclusion: Capital Exclusion projects are similar to Direct Appropriation (Pay-as-You-Go,
below) except taxes are raised outside the limits of Proposition 2 ½ and are added to the tax levy only
during the year in which the project is being funded. As with a Debt Exclusion, Capital Exclusion
funding requires approval by 2/3 vote of the local appropriating authority (e.g., city council or town
meeting) and approval of a majority of voters participating in a ballot vote. Prior to the vote, the
impact on the tax rate must be determined so voters can understand the financial implications. Capital
Exclusions may be authorized for any municipal purpose for which the city or town would be
authorized to borrow money.
1 = Debt Exclusion is different from a property tax override in that an exclusion is temporary, it is only in
place until the incurred debt is paid. An override becomes a permanent part of the levy limit base.
2) Other:
a) Bond Proceeds: Municipalities sell bonds at a premium over par, which premium funds bond issuance
and service; any excess is reserved for specific uses based on the type of account (General Fund,
Enterprise Fund, or School) with that excess available to fund like capital projects.
b) Free Cash: Free Cash is the difference between annual revenues and expenditures and is certified by
the Commonwealth each year. After certification, free cash is available for appropriation for any
municipal purpose, including capital projects.
c) Direct Appropriation/ Pay-as-You-Go: Direct Appropriation capital projects are funded with
current revenues, and the entire cost is paid off within one year so no borrowing takes place. Projects
funded with current revenues are customarily lower in cost than those funded by general obligation
bonds because there are no interest costs. However, funds to be used for this purpose must be
carefully planned in order to not impact the annual operating budget. For this reason, Pay-as-You-Go
capital projects are typically lower in value than projects funded by borrowing.
d) Sale of Surplus Real Property: Pursuant to Massachusetts General Laws, when real estate is sold, the
proceeds must first be used to pay any debt incurred in the purchase of the property. If no debt is
outstanding, the funds "may be used for any purpose or purposes for which the city, town or district is
authorized to incur debt for a period of five years or more...except that the proceeds of a sale in excess
C-2 of 2
of five hundred dollars of any park land by a city, town, or district shall be used only by said city, town,
or district for acquisition of land for park purposes or for capital improvements to park land" (MGL
Chapter 44, Sec. 63).
e) Stabilization Fund:
i) Capital Stabilization Fund: Local officials can set aside money in a stabilization fund -outside of
the general fund- to pay for all or a portion of future capital projects. A 2/3 vote of city council or
town meeting is required to appropriate money into and out of this fund.
ii) Enterprise Retained Earnings (as a form of Stabilization Fund): Enterprise operations, such as
water and sewer, are able to maintain an operating surplus that can be utilized for future
enterprise fund costs. These funds can be used to stabilize the user rates, apply to annual budget
needs, and/or invest in capital replacement and expansion.
f) Special Purpose Funds: Communities also have established numerous "Special Purpose Funds" for
which the use is restricted to a specific purpose, some of which may be investment in department
facilities and equipment. Numerous state statutes that govern the establishment and use of these
separate accounts. Examples include the sale of cemetery lots and off-street parking fees accounts.
Federal, State, and Private Grants and Loans
1) Office of Aviation Airport Improvement Program (AIP): Funding is available to airports that are part
of the National Plan of Integrated Airport Systems by the FAA. The AIP provides funds for projects to
improve infrastructure, including runways, taxiways, aprons, noise control, land purchases, navigational
aids, safety and security.
2) Massachusetts Chapter 90 Roadway Funds: Each year, the Massachusetts Department of
Transportation (MassDOT) allocates funds to cities and towns for roadway construction, maintenance, or
improvement. Funds may also be used for other work incidental to roadway work, such as the
construction of a garage to house related vehicles, or the purchase of related vehicles, equipment, and
tools. Chapter 90 is a 100% reimbursable program. Funding is accomplished through the issuance of
transportation bonds and apportioned to municipalities based on three factors: 1) accepted road miles, 2)
population, and 3} total employment within the municipal borders. The number of accepted road miles is
the most heavily weighted factor at 58.33%; the others are each weighted at 20.83%.
3) Massachusetts Department of Environmental Protection's State Revolving Funds (SRF): The Clean
Water State Revolving Fund (CWSRF} provides financing for sewer and drainage projects intended to
reduce sewer overflows and the Drinking Water State Revolving Fund (DWSRF) provides financing to
improve the quality of the drinking water system. The CWSRF and DWSRF programs typically offer a mix
of low interest (2%) loans and grant funds. Repayment does not begin until two years after the monies
have been borrowed.
4) Massachusetts School Building Authority (MSBA): The MSBA provides funding for school feasibility,
design, and construction. Projects must be accepted into the process in response to the submission of a
Statement of Interest which identifies a facility problem to be solved. Subsequently, the community must
appropriate funding for schematic design and later for construction before the MSBA will commit to its
share of the project. If accepted, the MSBA determines the amount of reimbursement it will offer based
upon community need, with a minimum base rate of 31%. The percent of reimbursement can then be
increased based upon three factors: community income factor, community property wealth factor, and
community poverty factor.
5) Mass DOT Complete Streets. Funding program that allows up to $400,000 in construction funds.
6) MA Community Compact Grants (fit in where/how?)… eg. funds upwards of $68,000 for a particular MA
town’s IT equipment.
7) MA Other. Many Commonwealth departments also offer annual grant opportunities that are available to
municipalities typically through a competitive application process. State grant programs that may be used
for capital expenses include, but are not limited to the Green Community grants (project to improve
sustainability) and Parkland Acquisitions and Renovations for Communities (PARC) grants.
Year Rate
1971 $73.00
1972 $73.00
1973 $38.00
1974 $82.00
1975 $86.00
1976 $90.00
1977 $115.00
1978 $129.00
1979 $134.00
1980 $128.00
Residential $$ Value of
Residential Open Spac Com/Ind/PP Exemption Exemption CPA
1981 $8.60 $6.87 $12.94 10,000 $86.00
1982 $8.88 $6.85 $13.03 10,000 $88.80
1983 $6.34 $6.20 $9.45 11,967 $75.87
1984 $6.90 $6.76 $10.98 12,000 $82.80
1985 $7.17 $7.02 $11.34 12,004 $86.07
1986 $4.03 $3.96 $6.37 20,363 $82.06
1987 $4.67 $4.61 $7.44 17,485 $81.65
1988 $5.54 $5.47 $8.88 17,383 $96.30
1989 $4.03 $3.91 $7.66 63,666 $256.57
1990 $4.30 $4.17 $8.16 63,972 $275.08
1991 $4.52 $4.44 $8.68 61,771 $279.20
1992 $5.41 $5.31 $10.35 51,608 $279.20
1993 $6.26 $6.12 $11.89 44,585 $279.10
1994 $6.34 $6.20 $12.40 44,889 $284.60
1995 $6.56 $6.40 $12.42 45,235 $296.74
1996 $6.58 $6.42 $12.47 46,052 $303.02
1997 $6.74 $6.53 $12.58 59,456 $400.73
1998 $5.25 $5.08 $9.71 80,598 $423.14
1999 $5.83 $5.62 $10.71 87,689 $511.23
2000 $5.77 $5.55 $10.57 89,600 $516.99
2001 $3.94 $3.79 $7.14 151,337 $596.27
2002 $4.21 $4.05 $7.62 153,165 $644.82 $19.34
2003 $3.42 $3.29 $6.11 210,261 $719.09 $21.57
2004 $3.13 $3.00 $4.73 245,258 $767.66 $23.03
2005 $3.30 $3.16 $4.99 248,178 $818.99 $24.57
2006 $2.84 $2.73 $5.06 316,472 $898.78 $26.96
2007 $2.49 $2.39 $4.46 376,097 $936.49 $28.09
2008 $2.67 $2.56 $4.77 374,402 $999.65 $29.99
2009 $2.76 $2.65 $4.92 375,319 $1,035.88 $31.08
2010 $3.01 $2.88 $5.35 360,135 $1,084.01 $32.52
2011 $3.58 $3.42 $6.41 304,992 $1,091.87 $32.76
2012 $3.62 $3.46 $6.47 297,869 $1,078.29 $32.35
2013 $3.67 $3.51 $6.51 303,664 $1,114.45 $33.43
2014 $3.76 $3.60 $6.68 299,187 $1,124.94 $33.75
2015 $3.61 $3.45 $6.38 336,917 $1,216.27 $36.49
2016 $3.36 $3.22 $5.93 362,525 $1,218.08 $36.54
2017 $3.39 $3.24 $5.99 373,635 $1,266.62 $38.00
2018 $3.53 $3.34 $5.97 486,050 $1,715.76 $51.47
2019 $3.36 $3.20 $5.71 518,251 $1,741.32 $52.24
2020 $3.45 $3.29 $5.86 528,618 $1,823.73 $54.71
Appendix D – Town of Nantucket Tax Rate History
Note: In FY 1981 Nantucket was one of the first communities to classify property
according to use, conduct a full revaluation of all properties and adopt a split tax rate and
residential exemption.
Fiscal Yr
Rates
PROJECT INTRODUCTION
Department:Submittal Date:
Project Title:Contact Person:
Project Summary:
Project Location:
Project related to other depts/agencies, explain:
CLASSIFICATION
Type: (Check all applicable)Nature: (Check all appliable)
Land or Land Improvements New Asset--if new operation too, explain:
Building or Building Improvement Upgrade/Improvement
Infrastructure Replacement
Outdoor Asset (park, playing fields, etc.)Renovate/Repair
Soft Cost (design, study, plans, permitting)Decommissioning
Vehicles (on or off-road, specialty)Heritage/Culture/Legacy/Tradition
Equipment, Machinery, Fixture, Furniture (long-life, durable)Purchase
Intangible (software, other licenses, permits, covenants)Lease
PRIORITIZATION
Low/Elective - Dept quality or functional enhancement if funding permits
Med./Recommended - Dept necessary functions impaired -- explain:
High/Required - Dept mission critical -- explain:
(Check all applicable)
Imminent threat to public safety or property, explain:
Preservation of operations
Legal requirement of Federal, State or Local agencies
Improvement to infrastructure
Improvement in the efficiency and effectiveness of service delivery, explain:
Alleviation of an overstressed/overburdened situation
Supports strategic plan (i.e. master plan, housing prod. plan, facilities maint plan, CWMP, etc.)
Results in lower energy consumption
Results in lower operations and maintenance costs
Phased funding/included in a prior year's budget
Scheduled replacement (i.e. motor vehicles, roofs, computers)
Placeholder -- explain:
COSTS & FUNDING
Basis for Cost:
Source of Quote or Estimate:
Informal (name source):
Comparable Valuation
Historic Reference
Other -- explain:
Quote (written)
Bid
Cost Breakdown:
$ Amounts (±)FY19 FY20 FY21 FY22 FY23 Totals
Land -$ -$ -$ -$ -$ -$
Aquisition Cost(s):
± Appraisal(s)-$ -$ -$ -$ -$ -$
± Survey(s)-$ -$ -$ -$ -$ -$
Other Legal:-$ -$ -$ -$ -$ -$
Design -$ -$ -$ -$ -$ -$
Permitting -$ -$ -$ -$ -$ -$
Appendix E - Capital Project Request Form (Specimen of Online Ver.)
Town of Nantucket
FY____ Capital Project Request Form
If not funded, Alternative Action available--explain:
Minor Major
Construction -$ -$ -$ -$ -$ -$
Equipment or Fixture:-$ -$ -$ -$ -$ -$
±Installation Cost(s)-$ -$ -$ -$ -$ -$
±Trade-in/Redemption Cost(s)-$ -$ -$ -$ -$ -$
OPM (Owner's Project Manager)-$ -$ -$ -$ -$ -$
O+M or Post-Const.-$ -$ -$ -$ -$ -$
Disposal -$ -$ -$ -$ -$ -$
Contingency -$ -$ -$ -$ -$ -$
Financing -$ -$ -$ -$ -$ -$
Insurance -$ -$ -$ -$ -$ -$
Other, explain in cost doc.-$ -$ -$ -$ -$ -$
Total -$ -$ -$ -$ -$ -$
'Green' Component(s): -$ -$ -$ -$ -$
Compliance requirement: -$ -$ -$ -$ -$
Explain:
Net effect on Operating Budget:FY19 FY20 FY21 FY22 FY23 Totals
Maintenance Cost -$ -$ -$ -$ -$ -$
Personnel Cost -$ -$ -$ -$ -$ -$
Utilities -$ -$ -$ -$ -$ -$
Total -$ -$ -$ -$ -$ -$
Maintenance Plan: FY19 FY20 FY21 FY22 FY23 Totals
Annual Cost -$ -$ -$ -$ -$ -$
Total -$ -$ -$ -$ -$ -$
Anticipated Useful Life:
Average Use Hrs/Day (approx.):
Annual Days-in-use (approx.):
Outsourcing Alternative(s) Applicable( Yes/No) -- explain:
Project Manager:
Other Departments Involved in the Project:
Timeline (leading to anticipated completion date):
FY19 FY20 FY21 FY22 FY23
Procurement ----------
Aquisition ----------
Design ----------
Permitting ----------
Construction ----------
Substantial Comp.----------
Full Completion ----------
One-time:
Decommission ----------
Removal ----------
Installation ----------
Final Delivery ----------
SUPPLEMENTAL DOCUMENTS REQUIRED
PROJECT TIMELINE
Detailed Project Description and Photos
Basis for Cost
Documentation for Operating Budget Impact
Summary Plan for Maintenance
Appendix E-2 of 2
Code Dept./Request Prior
Appropriations Expended Remaining
FAC-20-002 ADA Facility Upgrades $.05M $.M $.05M
FAC-20-008 Annual Facilities Site Paving Updates $.5M $.M $.5M
FAC-20-001 General Building Envelope (Repair/Replace)$.3M $.M $.3M
FAC-20-003 TON Facility Utility Systems (Repair/Replace) $.3M $.M $.3M
FAC-20-004 TON Facility Bathroom (Repair/Replace)$.5M $.M $.5M
FAC-20-006 TON Facility Lighting (Repair/Replace)$.05M $.M $.05M
FAC-20-007 TON Annual Facility Equipment (Repair/Replace)$.1M $.M $.1M
DPW-18-001 CCTV Phased Work $4.M $1.M $3.M
Town Administration
ADMIN-20-003 Town-Wide Document Management System $.1M $.03M $.07M
TRAN-20-001 Multi- Use Path Maintenance (SBSP)$.35M $.33M $.02M
TRAN-17-005 Newtown Road Improvements (SB SP)$.M $.M $.M
TRAN-19-010 Permanent Traffic Data Collection Stations (SB SP)$.08M $.03M $.04M
TRAN-17-002 Road improvements/Maintenance Island Wide (SB SP)$2.9M $1.9M $1.M
TRAN-21-001 'Sconset Footbridge Construction $.M $.M $.M
TRAN-17-001 Sidewalk Improvement Plan (SB Strategic Plan)$3.M $1.83M $1.17M
TRAN-17-004 Surfside Area Roads Reconstruction $3.03M $2.48M $.56M
TRAN-19-002 Waitt Drive/Amelia Drive $2.81M $.29M $2.52M
FIRE-20-001 ALS Equipment $.05M $.05M $.M
FIRE-19-002 Replace SCBAs $.18M $.18M $.M
ADMIN-17-001 Network Infrastructure $.25M $.M $.25M
ADMIN-18-001 Replace Town Computers $.1M $.05M $.05M
ADMIN-17-002 Server Virtualization $.19M $.19M $.M
OIH-17-001 Our Island Home Facility $1.M $.7M $.3M
Code Dept./Request Prior
Appropriations Expended Remaining
NMA-19-003 AIP Projects $2.09M $.71M $1.38M
NMA-20-002 Fuel Farm Rehabilitation - Supplemental Request $.76M $.M $.76M
SEWER-17-001 108-120 Baxter Rd. Sewer Design/Construction $.25M $.M $.25M
SEWER-19-001 Airport Rd Pump Station Upgrades $.25M $.M $.25M
SEWER-21-004 Aurora Way Pump Station Upgrade $.3M $.M $.3M
SEWER-20-005 Surfside Roads Area Sewer Improvements $5.6M $.1M $5.5M
SEWER-18-001 Surfside WWTF Membrane Upgrades $1.3M $.M $1.3M
Appendix F – Appropriations & Expenditures To-date (FY21 Capital Requests)
GENERAL FUND
ENTERPRISE ACCOUNTS
Fire Department
IS/GIS
OIH (G)
Airport
Sewer
DPW
Facilities
General
Transportation