Raymond Voter Information Project

Article 9

Town Capital Improvement Plan

Text of 2011 Town Warrant Article 9

This article proposes to place $185,900 into six Town Capital Reserve Funds (CRFs) to support the Town’s Capital Improvement Plan (CIP). A CRF is a savings account for scheduled CIP purchases and/or repairs that exceed $15,000 and have a five-year or longer life span. The 2011-12 CIP plan allocates $185,900 for the following CRFs: building maintenance/improvement, highway heavy equipment, highway vehicle replacement, police/dispatch equipment and vehicles, fire department and vehicles, and parks equipment/vehicles/facilities. The remaining CRFs will not be funded this year. Tax cost: $.19 per thousand of tax valuation.¹

A YES vote raises $185,900 to fund six CRFs in the CIP this year.

A NO vote raises no money to fund CRFs in the CIP this year.

Reasons why some voters might vote yes:

• Raymond Capital Improvement Plan Committee, Budget Committee, and Board of Selectmen support this recommendation.
• Saving gradually can help avoid spikes in the tax rate that could occur if the total cost of a necessary purchase or repair must be paid in one year. CRF savings also avoid the cost in interest when capital improvements must be bonded (borrowed).
• Funding the Capital Improvement Plan gives the town the authority to collect impact fees from developers to help pay for road construction that would otherwise be paid out of taxes.²
• Since the CIP was not funded last year, allowing the CIP to go a second year without funding risks mandatory reduction or elimination of road impact fees during the annual impact fee review.³

Reasons why some voters might vote no:

• High cost items can be financed as they are needed with a voter approved bond.
• Projects should be bonded (borrowed) and paid for as a project is built and used, rather than saving prior to building.

References:

1. Raymond Finance Office
2. Bruce Mayberry, Impact Fee consultant
3. Town Counsel

Please send questions/comments to editor@raymondvip.org

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