The Capital Improvements Program is a 15-year plan to fund capital projects that are selected based on a set of priorities and anticipated availability of funding. The program emphasizes maintenance projects at Town facilities, with the goal of addressing problems as they arise in order to avoid more costly repairs in the future. Some of the major projects include:

• Wallace Deck
• Public Housing
• Booker Creek Watershed Improvements
• Estes Drive Bike & Ped Improvements
• Old Durham Road
• Downtown Alleyway Improvements

Status Reports

• Parks and Recreation Capital Project Update

Major Revenue Sources

The Town’s Capital Improvements Fund provides funding for small and incremental projects. Annual transfers from the Town’s General Fund are typically the funding source for the Capital Improvements Fund.

2003 Bonds: In November 2003, voters approved $29.36 million in bonds. The bond projects are assigned to five individual categories as follows:

• Sidewalk and Streets ($5.6 million):

    o $2.6 million for construction of sidewalks on the Town’s Sidewalk Priority List and for meeting the local match requirement for programmed State improvements 

    o $350,000 for improvements at pedestrian crossings 

    o $650,000 for neighborhood traffic calming and pedestrian and bicycle safety improvements such as speed humps and raised crosswalks and improved pedestrian and bicycle signage 

    o $2 million for downtown streetscape improvements consistent with the Downtown Streetscape Master Plan adopted by the Town Council in 1993

• Library Facilities ($16.26 million): For expansion of the Town Library on Library Drive

• Parks and Recreational Facilities ($5 million): For greenway construction projects

• Open Space and Areas ($2 million): For open space purchases

• Energy Efficiency Projects ($500,000): For energy efficiency improvements at public buildings and other Town facilities

2015 Bonds: In November 2015, voters approved $40.3 million in bonds. The bond projects are assigned to five individual categories as follows:

• Sidewalks and Streets ($16.2 million): For improvements for bicycle and pedestrian safety, sidewalks, streets and bridges, and Downtown Streetscape.

• Trails and Greenways ($5 million): For expansion of the town’s Greenway System.

• Recreation Facilities ($8 million): Renovations to parks, Parks & Recreation administrative space, and a community programming space.

• Solid Waste Options ($5.2 million): Develop options for future solid-waste removal.

• Stormwater Improvements ($5.9 million): For drainage improvements, flood control and stream restoration.

The Town issued $9 million of General Obligation bonds in February 2017. The Town then issued $12.5 million of General Obligation bonds in March 2018. The Town issued an additional $4.755 million in General Obligation bonds in May 2021.

Two-Thirds Bonds: By NC General Statutes, the Town is able to issue two-thirds bonds without a referendum in an amount equivalent to two-thirds of the principal amount of debt retired in the prior fiscal year. The Town issued $1.6 million in two-thirds bonds in March 2017. The Town also issued $3,205,000 in May 2021.

Stormwater Management: Fees provide funding for the Town’s Stormwater Management Department, including capital projects.

Parking Funds: Fees collected from Town-operated on-street and off-street parking areas provide funding for the Parking Services Department, including capital projects.
Other Sources

Community Development Block Grant (CDBG): The Town receives annual federal grants from the U. S. Department of Housing and Urban Development (HUD). The Council approves a general 5-year spending plan to benefit lower-income neighborhoods, and adopts an annual budget for these funds by a capital projects ordinance.

Housing Capital Grant: In fiscal year 1993-94, the Town began receiving an annual entitlement for public housing renovations from the U. S. Department of Housing and Urban Development (HUD).

N.C. Department of Transportation (NCDOT): For most public transit projects, the Federal Transit Administration provides 80% funding and the NCDOT provides an additional 10% match. For the State’s thoroughfare, bikeways and pedestrian programs, the NCDOT funds projects selected from an annual Transportation Improvements Program in which local governments request that the State fund these types of projects in their community. Local requests are considered in a State-wide priority list. Projects are implemented by the NCDOT.

Surface Transportation Program (STP): The Surface Transportation Program provides flexible funding for projects on Federal-aid highways, including shared use paths and related facilities that may have recreational use, bridge projects on public roads, transit capital projects, and intracity and intercity bus terminals and facilities.

American Recovery and Reinvestment Act (ARRA) of 2009: The American Recovery and Reinvestment Act of 2009 is an economic stimulus package that allocates special Capital grants. The Town received funding for fiscal year 2009-10 for repairing and modernizing public housing, increasing energy efficiency, and for building streets, sidewalks, and greenways.

Gifts: Occasionally, citizens of Chapel Hill will provide the Town with contributions to be used toward a project for which the citizen holds a special interest.

Additional financing options include Certificates of Participation (COPS) and Asset-Backed Installment Debt

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