HomeMy WebLinkAboutFY22 Report Recommendations - FINAL rev. (voted 01-21-21)
CAPITAL PROGRAM COMMITTEE: FY22 REPORT & RECOMMENDATIONS
January 21, 2021 - FINAL
TOWN OF NANTUCKET – CAPITAL PROGRAM COMMITTEE
FY22 REPORT AND RECOMMENDATIONS
CAPITAL PROGRAM COMMITTEE: FY22 REPORT & RECOMMENDATIONS
January 21, 2021 - FINAL
TABLE OF CONTENTS
INTRODUCTION .................................................................................................................................................................... 1
Summary of Capital Allocations (by Account) ......................................................................................................... 2
General Fund ....................................................................................................................................................................... 2
Enterprise Accounts ......................................................................................................................................................... 2
Summary of Funding Sources ......................................................................................................................................... 3
General Fund ....................................................................................................................................................................... 3
Enterprise Accounts ......................................................................................................................................................... 3
FY22 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 ............................................................................................................................. 10-13
Prior Year (Renewed) ............................................................................................................................................ 10-11
Upcoming Year .......................................................................................................................................................... 12-13
Appendices:
Appendix A – Capital Requests by Account & Department
Appendix B – Capital Requests by Funding Source
Appendix C – Appropriations & Expenditures To-date (FY22 Capital Requests)
Appendix D – Town of Nantucket Tax Rate History
Appendix E – Capital Project Request Form (Specimen)
Appendix F – Typical MA Municipal Capital Funding Sources
CAPITAL PROGRAM COMMITTEE: FY22 REPORT & RECOMMENDATIONS
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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, 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.
The Chair takes this opportunity to thank each of committee member listed below; your
continued interest and regular engagement is a testament to community involvement; your
patience through seemingly endless meetings is a worthwhile endeavor; you are planting trees
whose shade you may never sit in—thank you for your efforts.
Respectfully, the Town of Nantucket Capital Program Committee:
Chair, At-large – Stephen Welch
Vice Chair, At-large – Peter Kaizer
Secretary, At-large – Richard Hussey
Select Board Representative – Jason Bridges
Finance Committee Representative – Peter McEachern
Member-At-Large Representative – Christy Kickham,
NP&EDC Representative – Kristie Ferrantella
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SUMMARY OF CAPITAL ALLOCATIONS (BY ACCOUNT)
For Fiscal Year 2022 (FY22), of 55 requests totaling $63.26M, the Capital Program Committee
recommends capital allocations for 52 requests totaling $56.33M. All values are shown in millions (M).
GENERAL FUND & ENTERPRISE ACCOUNT TOTALS: $56.33M
GENERAL FUND
Dept. Public Works (DPW)
Facilities $6.5M
General $5.06M
Transportation $7.56M
Fire Dept. $.86M
IS/GIS $.18M
Marine $.59M
Police $.90M
School $1.52M
Town Administration $.45M
General Fund Total: $23.61M
ENTERPRISE ACCOUNTS
Airport $25.32M
Sewer $6.4M
Wannacomet Water Company $1.0M
Enterprise Accounts Total: $32.72M
See too:
Appendix A – Capital Requests by Account & Department (w/Request Descriptions)
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SUMMARY OF FUNDING SOURCES
Shown are funding sources for General Fund & Enterprise Accounts:
GENERAL FUND & ENTERPRISE ACCOUNT TOTALS: $56.33M
GENERAL FUND
1 = Town Manager (TM) anticipates these may be funded w/in Prop. 2-1/2 Levy Limit
2 = See Appendix B, General Fund, footnote 2.
3 = Capital investment required by Code, see Appendix B, General Fund, footnote 3
ENTERPRISE ACCOUNTS
Borrowing1 $30.94M
Reserve $1.00M
Retained Earnings $.78M
Enterprise Accounts Total: $32.72M
1 = See Appendix B, Enterprise Accounts footnotes 1 & 2.
See too:
Appendix B – Capital Requests by Funding Source
Appendix F – Typical MA Municipal Capital Funding Sources
Ambulance Reserve Fund $.05M
Borrowing1 $1.77M
Capital Exclusion $.59M
Debt Exclusion $8.77M
Facilities Borrowing Mechanism2 $6.50M
Free Cash $4.99M
Raise & Appropriate3 $.94M
General Fund Total: $23.61M
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F Y2 2 R EQU ES TS ≥ $ 1M ( BY ACC O U NT)
Shown are capital requests of greater than or equal to $1M, by Fund-type, keyed to each
request’s Project Code:
GENERAL FUND
$2.15MFuture Projects1DPW - FAC.
Gen Bldg. Envelope - Roof/Siding/Wdws. (Reps/Repl)DPW - FAC. $1.18M
$1.20MNewtown Road ImprovementsDPW - FAC.
$1.25MRoad improvements/Maintenance Island WideDPW - FAC.
$1.06MSidewalk Improvement PlanDPW - FAC.
$3.27MSurfside Area Roads Reconst Phase 2: Lover's LaneDPW - FAC.
$3.30MChildren's Beach Storm Water Pump (HMP ID #F9)DPW-GNRL
$1.00MNobadeer Field House (Supplementary Funding)DPW-GNRL
$1.00MCampus Wide Improvement PlanSCHOOL
1 = See Appendix A, General Fund, footnote 1.
ENTERPRISE ACCOUNTS
$16.65MAirport Improvement Projects (AIP)AIRPORT
$1.00MFuel Farm Rehab-2nd Supplemental RequestAIRPORT
$6.70MGroundwater and Soil InvestigationAIRPORT
$2.00MCapacity, Mgmt., Operation & Maint (CMOM)SEWER
$3.50MSouth Shore Road SewerSEWER
$1.00MWater Main ReplacementWATER
See too:
Appendix A – Capital Requests by Account & Department
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PROJECTED COST OF BORROWING IMPACTS
GENERAL FUND – PROJECTED TAXPAYER IMPACTS
Project/Purpose Type of Exclusion
Residential Com./Ind./PP Open Space
Projected
Rate
Projected
Increase
Projected
Rate
Projected
Increase
Projected
Rate
Projected
Increase
Capital Equipment Exclusion1 Capital $3.66 $0.0310 $6.25 $0.0490 $3.45 $0.0246
Newton Road Improvements Debt $3.63 $0.0039 $6.20 $0.0028 $3.43 $0.0000
Children's Beach Storm Water
Pump (HMP ID #F9) Debt $3.64 $0.0102 $6.21 $0.0135 $3.43 $0.0050
Surfside Road Area: Phase II -
Lovers Lane Road & Multi-use Debt $3.64 $0.0101 $6.21 $0.0134 $3.43 $0.0049
Nobadeer Field House
(Supplementary Funding) Debt $3.63 $0.0033 $6.20 $0.0017 $3.43 $0.0000
Totals: $3.69 $0.0585 $6.28 $0.0803 $3.46 $0.0345 Assumptions:
- Assumptions are based on FY21 approved values and tax rates using a shift of 1.70 and Residential Exemption of 25%
- FY21 Residential Tax Rate is $3.63 per thousand.
- FY21 Commercial Tax Rate is $6.20 per thousand
- FY21 Open Space Rate is $3.43 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:
1 = For CapCom detail see Appendix B – Capital Requests by Funding Source, General Fund, Capital Exclusions; above amount incl. (2) vehicles
[one for Natural Resources Development, one for Planning & Land Use Services] that did not meet $50K min. review req.
- There are currently 18 properties classified as Open Space. Their average value is $118,682
- Nantucket has not adopted an "Open Space Discount"/ Difference between Open Space & Res. is the cost of the Res. Exemption
See too: “Appendix D – Town of Nantucket Tax Rate History”
ENTERPRISE ACCOUNTS – RATEPAYER IMPACTS
Water & Sewer: The Wannacomet Water Co. Commission sets revenue requirements resulting in a rate schedule adequate for its needs, including for ongoing operations, existing and
anticipated capital improvements, and anticipated necessary reserves. Modifications to its rate schedule are through a public hearing process. (See https://tinyurl.com/yb7p7gm9) The foregoing is generally accurate for the Town of Nantucket Sewer Dept., through the Town of Nantucket Sewer
Commission. For sewer usage, a tiered rate structure—and a sewer privilege and a capacity usage fee, as may be applicable—are intended to equitably generate revenue for sewer operations. (See:
https://tinyurl.com/y3kwxrxz )
Airport: The Nantucket Memorial Airport pays its obligations from operating revenue
derived from a rate schedule of fees and charges for aeronautical, non-aeronautical, ground transportation, advertising, and other services; its rate schedule is determined by the Nantucket Memorial Airport Commission through a public hearing process. Borrowings authorized (other
than for AIP Projects) are typically funded under Bond Anticipation Notes (BANs), which are paid off by certified Retained Earnings. Latest posted rate activity is found here: https://tinyurl.com/yd57ex8z .
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DEBT SERVICE – PRINCIPAL & INTEREST
General Fund and Enterprise Accounts Amortization Tables provide a projection of debt
service schedule, including principal, coupon (interest) rate, interest ($), and payments. Bond
projections are based on the assumptions provided, below. At the time of this report, General
Fund and Enterprise Accounts Amortization Tables were not available. As of their availability, a
revision to this page will provide web-links to the tables.
General Fund Amortization Tables
[INSERT URL]
General Fund: Principal & Interest are based on 4% over 20 years.
Enterprise Accounts Amortization Tables
[INSERT URL]
Enterprise Accounts: Principal & Interest are based on % and years TBD.
See following links for General Fund and Enterprise Accounts Amortization Tables, which
show a projection of debt service schedule, including principal, coupon (interest) rate, interest ($),
and payments. Bond projections are based on the assumptions provided, below.
General Fund Amortization Tables
http://www.nantucket-ma.gov/DocumentCenter/Home/View/18276 [UPDATE URL]
General Fund: Principal & Interest are based on 4% over 20 years.
Enterprise Accounts Amortization Tables
http://www.nantucket-ma.gov/DocumentCenter/Home/View/18275 [UPDATE URL]
Enterprise Accounts: Principal & Interest are based on ___% over ___ years
CAPITAL PROGRAM COMMITTEE: FY22 REPORT & RECOMMENDATIONS
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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, Capital Program Committee (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 (TM), Finance Director, and Assistant Finance Director for in-depth Q&A sessions;
supplemental information, requested as applicable, helps CapCom complete its process.
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 Financial Policies & Procedures (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, as out-year review, into the Town's 10-year CIP List;
whenever reliable cost-forecasting is available, that cost is included in the 10-Year CIP List
and in the alternative, more often than not, order of magnitude placeholder-values are
often requested.
Annual Timeline & Related:
For the FY22 budget-cycle, due to COVID 19, CapCom met via Zoom video-audio
conferences with its meetings available thereafter on the Town’s YouTube channel.
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STATEMENT OF PROCEDURES
In June, CapCom begins to discuss and prepare the upcoming capital budget cycle. Due
to the volume of capital requests and often the complexity and high costs of requests,
CapCom’s preparation and review (including to work its broader charge under the
Financial Policies & Procedures (FP&P)) require weekly meetings that span several
months. It is fair to state the process is intensive, and more so for a volunteer core. On
subject matter it’s also fair to say, it’s typically pretty dry.
In July, CapCom begins to receive access to detailed Department capital project
requests; see Appendix E – Capital Project Request Form (Specimen). This year, due to
COVID 19, access to initiate review was in mid-September. This year too, to address
concerns for more information sharing, CapCom engaged in a “Capital – Early & Often”
initiative; under this initiative, Finance Committee (FinCom) and Select Board (SB)
received login-in credentials to access detailed request information on a per request
level at nearly the same time as CapCom received these—comments not received by
CapCom indicate this is a worthwhile regular event.
Beginning in October, Town Manager (TM) provides the SB a monthly Capital Program
update during its regular meetings, and through this forum to the interested public.
This year, as part of Capital - Early & Often, TM provided invites to Finance Committee
(FinCom) and CapCom members—feedback has been positive.
This year, in mid-November, again as part of Capital - Early & Often, CapCom met with
FinCom and SB to jointly review FY22 capital requests and the 10-year CIP List;
CapCom fielded process-related questions; TM was available to field request-specific
questions. Attendees agreed the information-sharing meeting and its timeline were
helpful—this looks to be a worthwhile regular event.
In mid-December—to facilitate planning of funding sources for its recommendations
and as a material update to the SB through TM, and FinCom through its CapCom
liaison—CapCom provides a list of requests likely to recommended for funding in the
upcoming fiscal year. This year, as part of Capital - Early & Often, CapCom, CapCom
provided FinCom a copy of the its preliminary recommendation for their review and
comments through their CapCom liaison—comments received by CapCom were all
positive, this also looks to be a worthwhile regular event.
In early-mid January, as a function of other budgetary matters, potential funding
sources are identified by the Town’s Finance Director and TM; shortly thereafter,
CapCom meets to review, discuss, and vote its recommendation on funding sources and
to reconcile discrepancies, if any, with the TM.
In mid-January, after funding sources recommendations (from the Finance Director and
TM) are firmed up, and the SB preliminarily adopts capital funding sources, related
matters such as 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
and capacity, tax impacts and the like, CapCom drafts its report after relevant
information is fully, or at least reasonably, gathered.
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STATEMENT OF PROCEDURES
In late January, after final review by its membership, CapCom issues its final annual
report with recommendations, with original copy provided to the SB and FinCom at a
joint meeting hosted by the SB. Facing extensive requests and large funding
requirements, and consistent with the FP&P, CapCom provides accurate funding source
and tax impact information in its annual report.
Other Communication & Planning:
- Committee Updates. CapCom affirms the utility of SB and FinCom receiving updates on
material matters throughout the course of the budget cycle, and their voicing any
related concerns, as reported by their respective CapCom. Chair notes that the
oversight of more regular involvement with Nantucket Planning & Economic
Development Commission (NP&EDC) should be remedied going forward.
Note: In attempt to regularize committee reporting of goings-on for CapCom’s SB,
FinCom, and NP&EDC liaisons, 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 as previously alluded to includes a member from each of the
FinCom, NP&EDC, and SB, the exercise is also intended to provide a degree of insight to
integrational planning. However, during this budgeting cycle, CapCom liaison
involvement was due to COVID 19 not activated by TM. CapCom reaffirms the
importance of department liaisons.
- Strategic Integrated Planning Sessions (SIPS). Last year, to help broaden decision-maker
and advisor communications, and to provide an opportunity for discussion on emergent
and long-term capital-related matters and to try and keep perspective on ‘Causes of The
Day’, CapCom suggested and initiated SIPS with thanks to the TM. Matters addressed or
discussed included 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 affirmed, but to be
fruitful, are best as agenda-driven and brief.
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PROCEDURAL RECOMMENDATIONS
CAPCOM AFFIRMS PRIOR YEAR COMMENTS & RECOMMENDATIONS
As stated in previous CapCom reports, the Town’s aging and lack of certain essential
infrastructure and equipment require appropriate capital investment—including purchase,
maintenance, and replacement—while Nantucket’s rapidly growing year-round and seasonal
population provides constant pressure on the Town for other, new capital infrastructure and
inventory. Not widely factored, currently—but to begin to come into focus—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. In addition, costs to remediate various
environmental conditions are required with likely quick and substantial escalation. As a result of
these circumstances, the Town’s capital needs will continue 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, comprehensive, and effective Capital
Improvement Plan (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 and
not a matter of blame, 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
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PROCEDURAL RECOMMENDATIONS
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 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. Inclusive, rapid development of certain best practices or
Nantucket’s version are paramount—anything worth doing is worth starting, however
imperfectly. Specific examples include deployment of a Town-wide capital asset needs
assessment (CANA) and from this data set, a comprehensive asset management plan
(AMP). This level of involvement and processing is also required for easier, effective,
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 & FY21 Report & Recommendations; inclusion within this FY22 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 there is a need to better
equip current and future municipal leaders and decision makers with sufficient tools to act
effectively, to enhance and protect the Town’s capital assets, and realistically plan for Town’s
future.
Special Note: It is an understatement, in large part a result of unforeseen factors, that the
Town’s recent hire of an Assistant Finance Director—tasked in large with capital programming
development—has not been highlighted or developed within this report. To suffice for now… The
new hire is applauded, demonstrating strong and insightful dedication to the Town’s capital
needs. And on a personal note, the professionalism and assistance of the Assistant Finance
Director (Rick Sears)—jumping in with both feet and then picking up the ball to help run with it—
is very welcomed and much appreciated.
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PROCEDURAL RECOMMENDATIONS
UPCOMING YEAR - 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, with bright
eyes 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. Of note, regards recommendations, regular
reports (templated to meet Finance, SB, FinCom and CapCom needs) are relatively easily
obtainable with 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 other interested public bodies). Presently, while not disparaging
efforts or advances to-date, the database is under early-stage development; RORI-
processing, capital request inputs by department heads, and access for their review by
Finance and CapCom have been the primary focus.
So far, 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 in context of Capital Reserves. (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
CAPITAL PROGRAM COMMITTEE: FY22 REPORT & RECOMMENDATIONS
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enterprise-level capital asset management practices—even small regular steps help to form a
material outcome.
Given additional 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 Department/Request FY22
Request
CapCom
Rec.
Facilities Site Paving Annual Updates
Site and Paving updates at Town-owned facilities, specifically including 3 East Chestnut - Demolition, Site Work (Brick Bike/Moped Parking).
While still to be finalized, incremental preliminary book of work for FY22 includes: Children's, Jetties, and Surfside Beaches, 2FG, DPW Campus
Gen Bldg. Envelope - Roof/Siding/Wdws. (Reps/Repl)
Continue to address and expand General Building repairs, replacement & maintenance: Surfside - trim and reshingling sidewall; Children's
Concession - trim and reshingling sidewall; Town Building - window renovations; Town Building - roof replacement (incl. has materials
removal, slate); 4 Bathing Beach - ext. trim, sidewall reshingling; 25 Federal Street - ext. trim, sidewall reshingling; 37 Washington Street - ext.
trim, sidewall reshingling, doors, storm windows; 39 Washington Street - DEMO? Or ext. trim, sidewall reshingling, etc.; 2FG - ext. reno, gutters,
perimeter drain, windows; Tom Nevers Restrooms - int/ext. reno - trim, paint, fixtures, sidewall reshingling; Tom Nevers - storage building re-
roof small outbuilding; Tom Nevers - replace bunker door; Dionis Beach - int/ext. reno. - trim, paint, fixtures, sidewall reshingling, decking;
Sconset Comfort Station - int paint, ext. sidewall shingling
Jetties Beach Facility Upgrades
Evaluation and repairs to the town owned concession facility located at Jetties Beach. Detailed book of work in Supplemental Docs (in Capital
Database, typ.). Cost estimates are based on past experience, however, for the largest item (awnings) see "conceptual bid" of $500k.
Municipal Building General Renovations
Detailed book of work in Supplemental Docs. Cost estimates are based on past experience, however, there is a high degree of confidence for the
largest item (Salt shed, $400k) due to lack of project complexity; Surfside - ADA Accessibility Updates (Beach access); Town Building - Interior
Renovations (flooring, painting, etc.); 37 Washington Street - Interior Renovations (flooring, painting, etc.); DPW Salt Shed Replacement
Municipal Facility Bathrooms Repair
Proposed work is largely at the Children's Beach concession and there remains a certain level of cost and scope to be determined. The $820,000
request is a preliminary estimate and this project could require supplemental funding. Legacy documentation will be reviewed and updated
then plans will be put out to bid.
Municipal Facility Equipment Replacement
Annual repairs/replacements necessary to maintain functioning facilities. Detailed work in Supplemental Docs. Specific cost estimates not
available. Estimates from DPW Director.
Municipal Facility Lighting Repairs
Annual repairs necessary to maintain functioning facilities. Town of Nantucket Facility Lighting Updates (Interior and exterior) FY22 upgrades
are specifically for 16 Broad Street and costs are based on DPW Director estimates.
Municipal Facility Utility Systems Repairs
HVAC and climate control upgrades at Town Facilities, including HVAC upgrades at 37 Washington Street; Detail in Supplemental Docs. Cost
estimates are from DPW Director.
Future Projects
Placeholder, in part; initiated by Fin. Dept. mid-Dec. in conjunction with Financial Borrowing Mechanism1; to extent borrowing authority is
excercised, all respective future projects are to be reviewed individually, advanced on their own merit with actual funding, if any, awarded only
after completion of already established Town review and approval processes.
DPW - Facilities Total:$6.50M $6.50M
CCTV Phased Work
CCTV Work for stormwater. Multi-year project scope includes CCTV inspection and cleaning of up to 50,000 elf of drainage system pipes.
Supplementary documentation is for 2018 work and in FY22 we are planning to perform a longer length of our storm drain system that in 2018.
Based on our experience, prices are expected to be significantly higher.
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. There is currently no documented bid
for this project. However, Fuss and O'Neill provided a verbal estimate after meaningful consultation across their engineering teams. Execution
of this project is dependent upon the background study for the watershed model and is of high priority.
Fleet - 6-wheel Dump Truck
Fleet - Staff Service Vehicle replacement program; 2009 model in poor condition and requires replacement.
Fleet - Ford F-350
Fleet - Staff Service Vehicle replacement program; current vehicle is a 2007 model.
Fleet - Sweeper
Replace oldest sweeper (5-year life); 2005 model year
Fleet - Two Ford Ranger(s)2
Fleet - Staff Service Vehicle; 2002 and 2004 model years.
Nobadeer Field House (Supplementary Funding)
Supplemental Funding for Nobadeer Athletic Complex fieldhouse. See Supplementary Docs for additional detail.
DPW - General Total:$5.15M $5.06M
Cobblestone Improvements3
Repairs and Maintenance of the cobblestones within the towns roadway network. This in past years has been part of the annual allocation for
island wide roadway maintenance. Proposed Cobblestone Improvements to our 18,000 SY of cobblestone streets. Annual program based on
2,000 SY and a 9-year life cycle and includes materials costs. Locations to complement our newly formed DPW Sidewalk Work Group project
locations like Upper Main Street. Significant work undertaken on Upper Main in 2020 and continued funding required to complete Main St and
other areas.
Multi- Use Path Maintenance - Select Board Strategic Plan (SBSP)
Funding for the maintenance of the town wide network of multi use paths. Proposed 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. While still to be finalized, preliminary book of work for FY22 will include multi-
use paths along: Polpis Road, Milestone Road, Nobadeer Road, Madaket Road, Old South Road. Recent pricing $240/foot @ 10' width.
$0.25M
$0.50M $0.25M
$0.25M $0.25M
$0.09M $0.00M
$1.00M $1.00M
$0.25M
$1.18M $1.18M
$0.80M $0.80M
$0.27M
$0.18M
$0.06M
$0.25M
FAC-20-007
FAC-20-006
FAC-20-003
N.A.
DPW-18-001
HMP-21-006
DPW-21-005
DPW-22-002
TRAN-20-002
TRAN-20-001
DPW-21-004
DPW-21-001
DPW-21-003
GENERAL FUND
Appendix A – Capital Requests by Account & Department
Facilities
DPW
General
Transportation
$0.06M
$0.25M
FAC-20-008
FAC-20-001
FAC-18-001
FAC-20-005
FAC-20-004
$0.75M $0.75M
$0.82M $0.82M
$0.10M $0.10M
$0.09M $0.09M
$0.36M $0.36M
$2.15M $2.15M
$0.27M
$3.30M $3.30M
$0.18M
Appendix A-1 of 4
Code Department/Request FY22
Request
CapCom
Rec.DPWNewtown Road Improvements (SBSP)
Improvements to Newtown Road - sidewalk, paving, addition of speed tables, accommodation of bicyclists and pedestrians, a shared use path
along the north side of Newtown Road has been recommended in Town’s Complete Streets Prioritization Plan and the NP&EDC’s Long-Range
Transportation Plan. The path also conforms with the Select Board’s Transportation Strategic Goal #2 – completing a sidewalk connection
between 6 Fairgrounds Road and the ferry terminals. Lastly, regarding pavement management, there are minor rehabilitations recommended
for Newtown Road in the Town’s Pavement Management Plan to address deteriorating pavement quality and cracking. The current
recommendation is to mill and overlay the paved surface. Request amount has been adjusted upward to $1.2m to account for price escalation
since previous capital request.
Permanent Traffic Data Collection Stations (SBSP)
Multi-year traffic data collection program at various installations locations across the island. See Supplementary Docs for system architecture,
FY22 location, and cost estimates. Traffic Counting Station (Design (VHB $33K) and Construction (Daigle Electric $123K) Contracts) plus Fiber
Installation Costs through IT (~$10K) = ~$165K). Outyear funding has been adjusted (up) to $175k/year to provide a more realistic cost
estimate.
Road improvements/Maintenance Island Wide (SBSP)4
Island Wide maintenance of the roadway network. Proposed Roadway Improvements per our Pavement Management Plan. Annual program
adjusted for 3% inflation. Cost Benefit List can be found here: https://www.beta-inc.com/wp-content/uploads/2018/10/Cost-Benefit-Value-
Analysis-With-Cumulative-Total.pdf
'Sconset Footbridge Construction
Repairs to Sconset Footbridge based off of recommendations from Vertex (engineer). Scope of work outlined in Supplemental Docs. Cost
estimates are based on informal discussions with engineers who have reviewed the recommended detailed scope of work.
Sidewalk Improvement Plan (SBSP)
Improvements to Town sidewalk network. This request provides funding for the continuation of the downtown plan (attached). Work is
planned from the waterfront area and expanding out through town. The cost estimate is based on previous work on this project and greater or
lesser funding impacts the number of sidewalks repaired.
Outyear funding reflects a 3%p.a. price increase.
Surfside Area Roads Reconst Phase 2: Lover's Lane
Design, bid, and reconstruct Lovers Lane. The Surfside-area residents have requested that the Town make portions of the Boulevard, Lovers
Lane, Okorwaw and Monohansett public as they are already heavily traveled by the public to access the airport. This request is for the final
portion of a phased approach to design, bid, and construct a roadway and path along Lovers Lane. This new roadway improvement will consist
of two 11-foot lanes and a minimal 8-foot-wide path with grass buffer.
Waitt Drive5
Engineering and construction of Waitt Drive and work within the 2FG Driveways, including circulation. This roadway will access the new
workforce housing site at the 4FG/6FG site. A Mass Works Grant application was submitted in mid-to-late 2020 with a request for $2.5m
DPW - Transportation Total:$13.35M $7.56M
ALS Equipment
This request will equip the towns ambulance with the necessary equipment for the upgrade to an ALS certified ambulance service. This will be
the second appropriation to outfit a third ambulance to the Advanced life support level.
Engine 4
Amended scheduled replacement of NFD Engine 4. This is the frontline piece of equipment that is first to respond to virtually all incidents. As
such it has accumulated many service hours and is experiencing maintenance issues. The amended replacement schedule has essentially
swapped engine 2 (not front line) for engine 4. Replacement is for both engine and accessories.
Replace SCBAs
Replacement over a 4 year period of the fire departments self contained breathing apparatus (SCBA) equipment
FIRE-21-002 Trench & Technical Rescue Equipment6 $0.22M $0.00M
Fire Department Total: $1.08M $0.86M
ADMIN-17-001 Network Infrastructure
The Town network provides the foundation for the delivery of mission critical services such as financial, human resources, communications,
data storage and disaster recovery. It is essential that this network operates continuously with necessary spare equipment available in the
event of a sudden failure. Technological advancements and aging out of equipment necessitates the regular replacement of network
infrastructure hardware and related supplies. This capital request provides for regular annual funding to implement a 10-year replacement plan
for network switches, as needed replacement of all other hardware and cabling and an inventory of spares for sudden failure of mission critical
components.
Replace Town Computers
Replacement of town desktops and laptops using a replacement cycle of five years for desktops and three years for laptops. Continuous
technology advancements and aging out of equipment necessitates the replacement of desktop and laptop computers on a regular basis. The
new equipment is used to replace aged out and nonoperational units as well as add to the inventory to accommodate new staff position and
COVID-related demand.
Wireless Network Design
Wireless network design and cost estimate for FY2023 wireless network upgrade/replacement project. Town departments, including OIH, use
the wireless network for accessing municipal resources including, but not exclusive of, MUNIS, documents, Internet, hosted applications.
Maintaining the wireless network is critical. This request will only cover the consulting services. Additional cost documentation will be
provided as soon as it is available. Preliminary quote added to Supplementary Docs page on 9/16 and estimate changed from $50k to $65k.
IS/GIS Total: $0.18M $0.18M
2nd Pump out boat
Purchase of a second vessel to perform boat holding tank pump outs in Nantucket Harbor. The second dedicated pump out vessel will augment
the existing 21' Crosby pump out vessel. Proposed second vessel is a 6L X 9.917W (EZ),Hull: 26' L x 9.9' W fiberglass hull constructed of "E"
glass fiberglass with thermoset polyester resin. Gelcoat is 1.5" thick ISO NPG thermo set. The hull transom is a composite laminate 3" thick and
contains no wood. Modified hull design: Vessel designed with a 10-degree dead rise at the stern, allowing for quick planing. Hull bottom is
concave (versus convex) allowing for maximum stability and ease of handling. Due to these design features vessel will not yaw in a following
sea. Stringer system: Stringer system is a U channel all fiberglass, state- of-the- art system containing no wood. Containment cell: Built-in 650
gallon fiberglass waste holding tank located below the water line. Constructed with five layers of fiberglass and include 3 baffles. Full tank
warning alarm. Fuel tank: 78 gallons -located below deck. Engine: Twin 150 Yamaha 4 strokes or equivalent.
$0.06M
$0.07M $0.07M
$0.10M
TRAN-17-002
TRAN-21-001
TRAN-17-001
$1.20M $1.20M
$0.18M $0.18M
$3.76M $1.25M
$3.27M $3.27M
$3.03M $0.00M
$0.10M
$1.06M $1.06M
$0.10M $0.10M
$0.05M $0.05M
$0.05M
PUBL-21-001
FIRE-20-001
FIRE-26-002
FIRE-19-002
ADMIN-18-001
$0.05M
$0.71M $0.71M
$0.15M $0.15M
$0.06M
TRAN-17-004
TRAN-19-002
TRAN-17-005
TRAN-19-010
Fire Department
IS/GIS
Marine Department
ADMIN-22-001
Appendix A-2 of 4
Code Department/Request FY22
Request
CapCom
Rec.DPWF Street Bulkhead Repair
Request for supplemental authorization for work on the F Street Bulkhead Original request was A10/'17 for $425,000. (02295/97271) . Due to
permitting delays the work which was originally planned for 2017 has been delayed. As a result cost estimates have increased. The request is
for a supplemental appropriation for the next ATM. The project shortfall is $438,741. This approach has been vetted by Town Manager and
Finance Director. Supplemental documentation shows extent of required work and the low bid for the project.
Marine Department Total: $0.59M $0.59M
Loran Housing
Connection of the Loran housing facility to the town sewer system. Project involves the installation of approximately 1,200 linear feet of low
pressure sewer line, the connection to the existing male and female dormitories as well as the removal of two existing in-ground septic systems.
Project involves two pumping station systems for each building. Cost estimate provided by Deputy Chief Gibson in consultation with Sewer
dept. There is no supplementary documentation.
Public Safety Radio Mobile/Portable Replacements
Replacement of the portable radios for Public Safety. Portable radios purchased in March of 2006 have reached their service end of life
published by the manufacturer (Motorola). When the radio is at end of life, it can no longer be repaired.
Police Department Total: $0.90M $0.90M
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 Plan7
The request, which is part of the master plan recommendation, includes a complete upgrade to the baseball fields, tennis courts and associated
site improvements, including security enhancements and parking improvements. The detail can be found in the supplementary document title
"Backus baseball and tennis court estimates". The upgrades support both everyday use by students as well as varsity sports. Additionally, plans
to make the tennis courts available (at certain times) to the public are been contemplated. Finally, in future years we are looking at building a
new synthetic football/soccer/lacrosse stadium and a multiuse synthetic field hockey field.
NPS Building Improvements
This request is for building & grounds improvements for the Public Schools. The requested funding will include repairs to all school buildings.
This funding won't be sufficient for all repairs, but it will be help to get a great deal completed. These repairs include items like: classroom
cabinets, floor repairs, painting, concrete walkways, shingling and locker painting/replacement.
Reconfiguration of Pool Parking Lot entrance/exit
Remove the entrance/exit on Surfside Road across from Vesper Lane and install a new entrance/exit on Sparks Avenue. Rationale is that there
are too many decision points (driveways and roads) close y to a busy intersection
School Department Total: $1.80M $1.52M
Harbors Plan HMP Impl (Yr. 1) (HMP ID #SC2)8
Update the Nantucket and Madaket Harbors Action Plan (HAP) to incorporate needs for Hazard Mitigation and Coastal Resilience. In 2009, the
Town of Nantucket updated its Nantucket and Madaket Harbors Action Plan (Harbor Plan) under guidelines provided by the Commonwealth of
Massachusetts Executive Office of Energy & Environmental Affairs. The geographic area of this plan included all of the land and water areas of
Nantucket and Madaket Harbors and also extends west of Madaket Harbor to include Tuckernuck and Muskeget Islands. The 2009 Harbor Plan
built upon the goals of the original 1993 Harbor Plan and carried forward a number of recommendations from that original plan while
identifying new recommendations to guide public and private use of these sensitive areas. In the ten years that have passed the Town has
begun or completed implementing many of the goals identified by that plan highlighted by some new zoning overlay districts and the
development of a Shellfish Management Plan. During this time there have been substantial changes to the waterfront areas, public policy and
environmental pressures not contemplated in the 2009 Harbor Plan. The Town has been experiencing the effects of increased coastal flooding,
sea level rise and climate change. The Town has completed a Hazard Mitigation Plan update, become an Municipal Vulnerability Preparedness
(MVP) community and begun the process of draft a Coastal Resiliency Plan in the last 12-24 months. These substantial initiatives will need to be
supported and supplemented by an up to date municipal harbor plan with actionable items and goals.
Island-wide Underground Wiring Feasibility Study9
Feasibility study/assessment of town-wide or old historic district project to get all wires underground. This study has not yet been put out to
bid. The project is uncertain in scope, difficult to articulate, contains myriad dependencies, complex sequencing and potential environmental
hurdles. Nevertheless , the Select Board has expressed a desire to understand "what it would take to put wires underground". The potential
scale of the project will require an extensive study, hence the large request ($500k)for consulting. See Supplemental Docs for more detailed
scope of work.
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 to determine safety vulnerabilities and provide
recommendations for improvements. The assessment’s primary focus is on the security of staff and the public who utilize these facilities in the
event of an active threat. The contracted individual or firm will conduct the facility security assessment services, provide a master plan for all
the properties assessed, and provide cost estimates.
Town Administration Total: $1.00M $0.45M
Notes: GENERAL FUND SUBTOTAL: $30.53M $23.61M
$0.15M $0.10M
$0.40M $0.40M
$1.00M
$0.30M
Town Administration
NPS-21-001
NPS-20-001
NPS-17-001
NPS-22-003
$1.28M
$0.30M
$0.16M
School Department
4 = TM recommendation was to reduce FY22 funding to $1.25M, CapCom concurred.
3 = TM recommendation was to reduce FY22 funding to $250K, CapCom concurred.
2 = CapCom recommended, as a majority, to move this request to out-year review; Town Manager (TM) recommendation is for current year funding; funding for this request is in Cap. Exc. tax impacts.
$0.44M $0.44M
$0.16M
PUBL-22-001
PUBL-21-002
PUBL-23-001
$0.10M $0.10M
$0.50M
Police Department
ADMIN-21-002
ADMIN-20-003
ADMIN-21-001
$0.50M $0.00M
1 = "Financial Borrowing Mechanism" (FBM): Funding model proposed to leverage $750K of Free Cash for 10-year period, for borrowing $6.5M to fund DPW FY22 Facilities Capital Requests; proposed by Finance Dept. to create
liquidity--i.e., for more efficient project (cost & schedule) management. Borrowings initially in the form of Bond Anticipation Notes later converted to General Obligation Bonds, under the constraints of Proposition 2-1/2.
$0.25M $0.25M
- Descriptions above are for the most part as submitted to CapCom.
HMP-22-002
$0.07M $0.07M
$0.50M
5 = As a FY22 Request the project was submitted before final determination of grant-funding (noted in the description). Subsequently, i) MassWorks awarded a grant of $1.5M and ii) it was determined that the balance to fund the project exists within already approved borrowing for the project; as such, there is no FY22 funding source recommendation to be made by CapCom. Of note too, CapCom voted to reaffirm prior recommendation for the project.
6 = Retracted from FY22 Capital Requests by TM.
7 = TM recommendation was to reduce FY22 funding to $1M, CapCom concurred.
8 = TM recommendation was to reduce FY22 funding to $100K, CapCom concurred.
9 = TM recommended funding be taken up in out-year review, CapCom concurred.
Appendix A-3 of 4
Code Department/Request FY22
Request
CapCom
Rec.DPW
Code Department/Request FY22
Request
CapCom
Rec.
AIP Projects
FY22 is a combination of 5 different grant funded projects: Permitting for Airport Master Plan Update - Environmental permitting required for
various airfield and airport improvement projects ($250k with a 90%/5%/5% split); ALP Update – Airport Geometry Study - Airport Geometry
Study project to review non-standard conditions based upon current FAA Standards ($250k with a 90%/5%/5% split); South Apron Expansion -
South Apron expansion to eliminate aircraft parking on runway 15-33, relocation of taxiway G to comply with FAA standards, elimination of dual
usage of pavement by decommissioning runway 12-30 and converting to permanent taxiway usage ($15,250,000 with a 90%/5%/5% split);
MEPA/NEPA for ALP Update Projects - Environmental review for projects based upon the Airport Geometry Study ($400k with a 90%/5%/5%
split); Terminal Area and Terminal Study - Architectural study to review terminal passenger movement, hold room capacity and functionality
($500k ASMP 80%/20%).
Airport Maintenance & Equipment
Maintenance, equipment, and vehicles for the airport. Specifically a 1.) John Deere Z994R Diesel Commercial Z-Trak ($20,000). Regular upgrade of
equipment following on FY21 replacement of other NMA Z-Trak. 2.) Replacement of current 26 year old 6 wheel dump truck with a more fit-for-
purpose 10-wheel dump truck as required by airport Maintenance ($232,000). 3.) Paint and Beads and Rubber and Markings removal. FAA Part
139 requires airfield markings to meet certain standards. Multi-year plan to breakout the removal and repainting of the airfield ($63,000). Based
on revised needs and requirements the request has been revised from $206,000 to $315,000.
Groundwater and Soil Investigation
FY22 - Investigate and remediate contaminants potentially related to ACK that have been identified in groundwater. The project scope is
identified as actions related to Release Tracking Number (RTN) 4-28219 and required Massachusetts Department of Environmental Protection
(MassDEP) in accordance with the Massachusetts Contingency Plan (MCP), 310 Code of Massachusetts Regulations (CMR) 40.0425.
Nantucket Operations and ARFF
Continued investment in NMA. Important improvements include, 1.) scheduled replacement of second bus ($88,000) following on last year's first
bus replacement and 2.) PFAS-related replacement of all ARFF turn-out gear to PFAS-free gear ($66,000)
Fuel Farm Rehab-2nd Supplemental Request
Fire detection/suppression system is a local fire dept requirement; Replace deteriorating piping with stainless steel piping which requires no
painting. Additionally, replace pumps, cabinets, flame detection and fire suppression elements of the fuel farm.
Airport Total: $25.32M $25.32M
Capacity, Management, Operation & Maintenance (CMOM) Program
CMOM program ensures the Town of Nantucket operates with best practice for sewer line collection system owners and operators. Both
comprehensive and holistic, the CMOM provides an information- based plan to effectively run the sewer collection system and help lower the risk
of any (SSO) Sanitary Sewer Overflows or Massachusetts Discharge Monitoring permit violations. Nantucket is under a consent order and
therefore this work is mandatory.
Design New Gar Maint Facil-Admin Off-Conf Room
This is for design of a new garage at SWTF which will provide maintenance bays as well as vehicle garaging and possibly administrative offices.
This was originally listed as garage with possible housing. This option is too costly. Under investigation is leveraging GSA contracts it appears as
though this process would be the most economical to build a Combination garage and admin facility in one foot print. FY 22 request is for Design
work only.
Ford F650 Dump Truck (to replace 1 ton dump truck)
Replace F650 dump truck model year 2010 used for heavy-duty work such as plowing. It is experiencing frequent mechanical issues and will likely
be disposed as salvage. Truck accessorized is ~$90,000 (see supp doc)
Replace combination jetter/vacuum truck
Replace existing Jetter/vacuum truck that will be 10+ years old. Jetter trucks are a safe way blast through any blocked drains, pipes and cut
through debris or tree roots. The high pressure water jetters blast into sewer lines and the vacuum hose pulls the debris into the tank. This
particular model is larger than what we currently have and is a very good complement to our existing smaller vehicle. The Combination Jetter/Vac
truck is a critical piece of equipment that is not only used in Sanitary Sewers but is used extensively for Manhole cleaning, Grit Removal and is a
key vehicle used during hydro excavation in areas around critical infrastructure water, sewer, storm water, electrical lines, fiber optics
transmission as well a cablevision mains. This truck is key in areas were conventional excavation equipment excavators and backhoes can not
excavate without causing damage.
South Shore Road Sewer
Design and construction of a gravity sewer and pumping stations to meet future flows and to serve needs areas. Includes pulverization and full-
width plumbing. Project has significant dependencies on outcome of Surfside Crossing and planning/timing for the new force main project.
Water Tight Sewer Manholes (#F24)
Commence an island-wide program to upgrade traditional manhole covers with watertight manhole covers where deemed necessary. Watertight
manhole covers prevent discharge and inflow while suppressing odor. The program will prioritize heavily-trafficked roads as well streets that
experience regular flooding, with initial work expected to be on the truck route out Washington Street from downtown. The request is for the
purchase of 125 watertight covers on a phased basis. Installation will be completed by the Sewer department. Finally, the importance of this
remediation work was noted in the Sewer Master Plan and is reflected in the Hazard Mitigation Plan
Sewer Total: $6.40M $6.40M
Water Main Replacement
Continuation of water main replacement program. FY22 request is for Washington St and Washington St. extension. The price per foot is based on
prior projects with an increment due to de-watering equipment to allow safe excavation and replacement.
Wannacomet Total: $1.00M $1.00M
Note: ENTERPRISE ACCOUNTS SUBTOTAL:$32.72M $32.72M
- Descriptions above are for the most part as submitted to CapCom.
GENERAL FUND & ENTERPRISE ACCOUNTS TOTALS: $63.26M $56.33M
$2.00M $2.00M
$0.32M $0.32M
$0.43M $0.43M
$0.05M $0.05M
$0.10M $0.10M
$1.00M $1.00M
$3.50M $3.50M
$0.15M
$1.50M $1.50M
NMA-20-001
NMA-21-001
NMA-22-001
WANN-22-001
SEWER-21-005
SEWER-20-003
Sewer
Wannacomet Water Co.
NMA-19-003
NMA-19-001
$16.65M $16.65M
$0.33M $0.33MSEWER-22-002
SEWER-20-008
SEWER-20-002
ENTERPRISE ACCOUNTS
Airport
SEWER-22-001
$0.15M
$6.70M $6.70M
Appendix A-4 of 4
Dept. Code Request by Funding Source CapCom Rec.
FIRE FIRE-20-001 ALS Equipment $0.05M
Total Ambulance Reserve: $0.05M
DPW - FAC. TRAN-17-001 Sidewalk Improvement Plan (SB Strategic Plan)1 $1.06M
FIRE FIRE-26-002 Engine 41 $0.71M
Total Borrowing: $1.77M
DPW-GNRL DPW-21-005 Fleet - 6-wheel Dump Truck $0.18M
DPW-GNRL DPW-21-004 Fleet - Ford F-350 $0.06M
DPW-GNRL DPW-21-001 Fleet - Sweeper $0.25M
FIRE FIRE-19-002 Replace SCBAs $0.10M
Total Capital Exclusion: $0.59M
DPW - FAC. TRAN-17-005 Newtown Road Improvements (SB SP) $1.20M
DPW - FAC. TRAN-17-004 Surfside Area Roads Reconst Phase 2: Lover's Lane $3.27M
DPW-GNRL HMP-21-006 Children's Beach Storm Water Pump (HMP ID #F9) $3.30M
DPW-GNRL DPW-22-002 Nobadeer Field House (Supplementary Funding) $1.00M
Total Debt Exclusion: $8.77M
DPW - FAC. FAC-20-008 Facilities Site Paving Annual Updates $0.25M
DPW - FAC. FAC-20-001 Gen Bldg. Envelope - Roof/Siding/Wdws. (Reps/Repl) $1.18M
DPW - FAC. FAC-18-001 Jetties Beach Facility Upgrades $0.80M
DPW - FAC. FAC-20-005 Municipal Building General Renovations $0.75M
DPW - FAC. FAC-20-004 Municipal Facility Bathrooms Repair $0.82M
DPW - FAC. FAC-20-007 Municipal Facility Equipment Replacement $0.10M
DPW - FAC. FAC-20-006 Municipal Facility Lighting Repairs $0.09M
DPW - FAC. FAC-20-003 Municipal Facility Utility Systems Repairs $0.36M
DPW - FAC. N.A. Future Projects $2.15M
Total Facil. Borrowing Mech.: $6.50M
ADMIN HMP-22-002 Harbors Plan HMP Impl (Yr. 1) (HMP ID #SC2) $0.10M
ADMIN ADMIN-20-003 Town-Wide Document Management System $0.25M
ADMIN ADMIN-21-001 Town-Wide Security Measures $0.10M
DPW - FAC. TRAN-20-002 Cobblestone Improvements $0.25M
DPW - FAC. TRAN-20-001 Multi- Use Path Maintenance (SBSP) $0.25M
DPW - FAC. TRAN-19-010 Permanent Traffic Data Collection Stations (SB SP) $0.18M
DPW - FAC. TRAN-17-002 Road improvements/Maintenance Island Wide (SBSP) $1.25M
DPW - FAC. TRAN-21-001 'Sconset Footbridge Construction $0.10M
DPW-GNRL DPW-18-001 CCTV Phased Work $0.27M
IS/GIS ADMIN-17-001 Network Infrastructure $0.05M
IS/GIS ADMIN-18-001 Replace Town Computers $0.06M
IS/GIS ADMIN-22-001 Wireless Network Design $0.07M
MARINE PUBL-21-001 2nd Pump out boat $0.15M
Ambulance Reserve Fund
Borrowing
Capital Exclusion
Debt Exclusion
Appendix B – Capital Requests by Funding Source
GENERAL FUND
Facilities Borrowing Mechanism2
Free Cash
Appendix B-1 of 2
POLICE PUBL-23-001 Public Safety Radio Mobile/Portable Replacements $0.40M
SCHOOL NPS-21-001 Bobcat Replacement $0.07M
SCHOOL NPS-20-001 Campus Wide Improvement Plan $1.00M
SCHOOL NPS-17-001 NPS Building Improvements $0.30M
SCHOOL NPS-22-003 Reconfiguration of Pool Parking Lot entrance/exit $0.16M
Total Free Cash: $4.99M
MARINE PUBL-22-001 F Street Bulkhead Repair3 $0.44M
POLICE PUBL-21-002 Loran Housing3 $0.50M
Total Raise & Appropriate: $0.94M
GENERAL FUND SUBTOTAL:$23.61M
Notes:
Dept. Code Request by Funding Source CapCom Rec.
AIRPORT NMA-19-003 Airport Improvement Program Projects (AIP)2 $16.65M
AIRPORT NMA-19-001 Airport Maintenance & Equipment $0.32M
AIRPORT NMA-22-001 Fuel Farm Rehab-2nd Supplemental Request3 $0.30M
AIRPORT NMA-21-001 Groundwater and Soil Investigation $6.70M
AIRPORT NMA-20-001 Nantucket Operations and ARFF $0.15M
SEWER SEWER-20-008 Capacity, Mgmt., Operation & Maint (CMOM) $2.00M
SEWER SEWER-22-002 Design New Gar Maint Facil-Admin Off-Conf Room $0.33M
SEWER SEWER-20-003 South Shore Road Sewer $3.50M
WATER WANN-22-001 Water Main Replacement $1.00M
Total Borrowing: $30.94M
AIRPORT NMA-22-001 Fuel Farm Rehab-2nd Supplemental Request3 $1.00M
Total Reserve: $1.00M
AIRPORT NMA-22-001 Fuel Farm Rehab-2nd Supplemental Request3 $0.20M
SEWER SEWER-20-002 Ford F650 Dump Truck (to replace 1 ton dump truck) $0.10M
SEWER SEWER-22-001 Replace combination jetter/vacuum truck $0.43M
SEWER SEWER-21-005 Water Tight Sewer Manholes (#F24) $0.05M
Total Retained Earnings:$0.78M
ENTERPRISE ACCOUNTS SUBTOTAL:$32.72M
Notes:
3 = Request funding recommendation includes three (3) funding sources; total request amount is $1,501,678.00
GENERAL FUND & ENTERPRISE ACCOUNTS TOTALS: $56.33M
2 = AIP Grant funding sought to pay up to 90% cost; MASSPORT funding may be available to cover up to 5%
Borrowing1
Retained Earnings
1 = Town Manager anticipates these may be funded w/in Prop. 2-1/2 Levy Limit
1 = Typically paid by user fees (unless a General Funds subsidy is required; if such subsidy is required, prior to the issuance of debt, individual projects must be analyzed
for impact on tax rates).
2 = Funding model to leverage $750K of Free Cash for 10-year period, for borrowing $6.5-$6.9M to fund DPW FY22 Facilities Capital Requests;
proposed by Finance Dept. to create liquidity--i.e., for more efficient project (cost & schedule) management. Borrowings initially in the form of Bond
Anticipation Notes later converted to General Obligation Bonds, under the constraints of Proposition 2-1/2.
3 = Funded by Annual Required Capital Investment (1% of prior year's total Local Receipts + 1% of prior year's total collected Real Estate & Personal
Property Taxes)
Reserve
ENTERPRISE ACCOUNTS
Raise & Appropriate
Appendix B-2 of 2
Code Dept./Request
Prior
Appropriation Expended Balance
DPW-22-002 Nobadeer Fieldhouse (Supplemental Funding) $0.70M $0.19M $0.51M
TRAN-20-001 Multi- Use Path Maintenance (SBSP) $0.35M $0.31M $0.04M
TRAN-19-010 Permanent Traffic Data Collection Stations (SB SP) $0.08M $0.08M $0.00M
TRAN-17-002 Road improvements/Maintenance Island Wide (SB SP) $3.58M $2.58M $1.00M
TRAN-17-001 Sidewalk Improvement Plan (SB Strategic Plan) $4.03M $2.70M $1.33M
TRAN-17-004 Surfside Area Roads Reconstruction $2.50M $2.29M $0.21M
TRAN-19-002 Waitt Drive/Amelia Drive $2.81M $0.29M $2.52M
FIRE-20-001 ALS Equipment $0.10M $0.00M $0.10M
FIRE-19-002 Replace SCBAs $0.18M $0.18M $0.00M
ADMIN-17-001 Network Infrastructure $0.35M $0.02M $0.33M
ADMIN-18-001 Replace Town Computers $0.16M $0.14M $0.02M
ADMIN-17-002 Wireless Network Design $0.00M $0.00M $0.00M
PUBL-22-001 F Street Bulkhead Repairs $0.43M $0.10M $0.33M
NPS-17-001 NPS Building Improvements $0.60M $0.57M $0.03M
ADMIN-20-003 Town-Wide Document Management System $0.35M $0.00M $0.35M
Code Dept./Request
Prior
Appropriations Expended Remaining
NMA-19-003 AIP Projects $2.09M $0.71M $1.38M
NMA-19-001 Airport Maintenance & Equipment $0.19M $0.12M $0.06M
NMA-21-001 Groundwater and Soil Investigation $0.50M $1.40M -$0.90M
NMA-20-001 Nantucket Operations and ARFF $0.25M $0.12M $0.13M
NMA-22-001 Fuel Farm Rehabilitation - Supplemental Request $2.32M $0.94M $1.38M
SEWER-20-008 Capacity, Mgmt., Operation and Maintenance (CMOM) $9.75M $6.17M $3.58M
SEWER-20-003 South Shore Road Sewer $1.50M $0.00M $1.50M
Appendix C – Appropriations & Expenditures To-date (FY22 Capital Requests)
Airport
Sewer
DPW
General
Transportation
Town Administration
ENTERPRISE ACCOUNTS
Fire Department
IS/GIS
Police/Marine
School
GENERAL FUND
Appendix C-1 of 1
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
2021 $3.63 $3.43 $6.30 522,914 $1,898.18 $56.95
Appendix D – Town of Nantucket Tax Rate History
Fiscal Yr Rates
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.
Appendix D-1 of 1
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 -$ -$ -$ -$ -$ -$
Appendix E - Capital Project Request Form
(Specimen of data fields within Capital Request Database)
Town of Nantucket
FY____ Capital Project Request Form
If not funded, Alternative Action available--explain:
Minor Major
Appendix E-1 of 2
Permitting -$ -$ -$ -$ -$ -$
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
Appendix F – 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
Appendix F-1 of 2
Appendix F-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.