About Capital Improvements

Capital improvements are projects that build, repair, or enhance the City of Newcastle’s infrastructure. Public Works projects often focus on transportation, parks and trails, or surface water management, and may address more than one area at a time. These projects can include features such as vehicle lanes, sidewalks, bike paths, intersections, stormwater systems, and upgrades to parks and public spaces.

Capital Improvement Program (CIP)

The Capital Improvement Program (CIP) is the City’s long-term plan for maintaining and improving public infrastructure. This CIP is a six-year program shaped by priorities in the Comprehensive Plan and is updated annually through discussions between the City Council and staff. The CIP is organized into three main areas: the Transportation Improvement Program, Parks Capital Improvement Program, and Surface Water Management Capital Improvement Program.

Funding

The City funds capital improvement projects primarily through the Real Estate Excise Tax (REET), which is paid by property sellers. REET supports streets, parks, utilities, and City facilities, though state law limits how the funds may be used. REET-1 can be used for streets, parks, facilities, or utilities, while REET-2 can be used for streets, parks, or utilities but not facilities. REET is the largest source of the Capital Improvement Fund and provides more than half of the funding for the Transportation Capital Fund.

Fees are another source of funding for capital projects. Parks and Trails projects are paid for in part with Parks and Trails Impact Fees, Surface Water Management projects are funded in part through Surface Water Management (SWM) fees, and Transportation projects are supported by Transportation Impact Fees.

Additional funding may come from the City’s General Fund and competitive grants when available. Because most funding sources are restricted to specific uses, the City carefully matches funds to eligible projects and follows a “pay-as-you-go” approach to maintain and improve streets, parks, public buildings, and other infrastructure.