Pender County Utilities C apital Improvement Plan (CIP)

1. Pender County Utilities Capital Improvement Plan (CIP)

2. What is a CIP? A Capital Improvement Plan (CIP) is a list of identified capital project and acquisition needs that typically covers five to six years, identifies financing alternatives and is formally adopted annually. It calculates cost or expenditure estimates Indentifies probable sources of financing Evaluates, prioritizes and schedules projects and acquisitions Forecasts the likely impact of these projects and acquisitions on the operating budget Is essentially a long-term plan. Projects in the first year of the CIP forecast period become the capital budget for that budget year.

3. Why Long-Term Plan? Long-term planning is critical to economic development, revenue, cash flow and debt forecasting. Capital infrastructure, facilities and equipment built by local governments are often large and very expensive, requiring considerable amounts of money to be raised and spent to bring the projects to fruition. Special planning, financing and management procedures are required to ensure the projects are needed, well designed, and efficiently implemented to ensure the money invested in them is well spent. Provides trends and information for economic development and constituent inquires such as where the County is investing in utilities infrastructure and what the status is on a project.

4. Primary goals of planning the water and sewer infrastructure: To meet and prioritize current needs Support and prioritize projected growth needs Create a climate for the creation of new employment opportunities that reduce underemployment and the need for residents to “out commute” Determine the infrastructure required to meet the needs Seek and procure the funds to design and construct the required infrastructure Ensure the improvements are cost effective, timely and advantageous for residents and businesses

5. Steps in the CIP process: Formulate, review and approve the goals and policies to guide the capital budgeting Identify the infrastructure investments required to meet growth demands and the capital assets that require repair, maintenance or replacement Determine the full extent of project costs and timing Prioritize the projects to meet externally mandated requirements, growth demands, or to improve or maintain levels of service Develop financing strategies to identify funding sources and project debt issuance and cash flow management

6. What a CIP is not: A perfect prediction of our needs A guarantee of service provision A static document that once approved is placed on a shelf and only looked at during the Budget process Therefore, it is important that staff continually keep the CIP updated with new project assessments and cost estimates throughout the entire fiscal year.

7. Population Profile: 2007 Population Estimate = 50,352 1990-2000: 42% growth rate (State growth rate = 21.3%) 80% concentrated in three townships 70.4 Rocky Point Township 66.9% Topsail Township 35.5% in Burgaw Township 2000-2030: Projected that 74% of the County’s growth will continue to occur in Burgaw, Rocky Point and Topsail townships 2030 Population Estimate = 104,100

8. Economic Profile: Labor Force = 24,000 2007 Unemployment Rate Pender County = 4.2% North Carolina = 6.5% July 2008 Unemployment Rate Pender County = 4.7% North Carolina = 6.8% Average Pender County Wage = $28,028 Wilmington = $34,216 North Carolina = $38,896 The N.C. Department of Commerce annually ranks the state’s 100 counties based on economic well-being and assigns each a Tier designation.  The 41 most distressed counties are designated as Tier 1, the next 39 as Tier 2 and the 20 least distressed as Tier 3. Pender County is a Tier 2.

9. General County Information: The completion of I-40 has accelerated growth in Pender County and shortened commuting times for residents to work and shop in New Hanover County Economic Development has been concentrated in Burgaw, US 17 Hampstead/Surf City corridor, and Rocky Point US 421 corridor, with future water and sewer infrastructure developing along the corridor will encourage and facilitate industrial development in Pender County where is hasn’t occurred before

10. General County Information: Cont’d Water availability is also stimulating commercial and light industrial growth as evidenced in Hampstead. Sewer, when available, will be the largest stimulus. Sewer is currently the limiting factor. Regionalism approaches such as with Cape Fear PUA, Lower Cape Fear WSA, and Surf City will assist Pender County in addressing water/sewer availability and capacity issues more effectively, timely, and cost-efficiently.

11. Pender County Water & Sewer Districts

12. Existing water infrastructure

13. Proposed water infrastructure

14. Existing and designed sewer systems

15. Proposed sewer infrastructure

16. Short-term Projects & BudgetEstimated Total Costs: $ 37,009,500

17. Long-term Projects & BudgetEstimated Total Costs: $ 96,600,000 WATER TREATMENT FACILITIES

18. Long-term Projects & BudgetEstimated Total Costs: $ 131,050,000 WATER TRANSMISSION FACILITIES

19. Long-term Projects & BudgetEstimated Total Costs: $ 309,608,738 SEWER FACILITIES

20. Financial Resources General or Special Funds Debt Financing Installment Purchase General Obligation Bonds Revenue Bonds Project Development Financing Federal, State, Non-Profit, Foundation grants and loans