Loading...
HomeMy WebLinkAboutAgenda - 09-14-2010 - 1' ORANGE COUNTY BOARD OF COMMISSIONERS • ACTION AGENDA ITEM ABSTRACT Meeting Date: September 14, 2010 Action Agen i Item No. SUBJECT: Work Session to discuss a new format for the County's Capital Investment Plan (CIP), including revisions to the existing Capital Funding Policy and Debt Management Policy - DEPARTMENT: Manager & Financial Services PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Attachment 1: Draft of the 2011-16 Orange County Capital Investment Plan • INFORMATION CONTACT: Frank Clifton, County Manager, 245-2300 Clarence Grier, Financial Services, (919) 245-2453 Michael Talbert, Financial Services, (919) 245-2153 PURPOSE: To review and discuss proposed changes in format for the County's Capital Investment Plan, including changes in the Capital Funding Policy and Debt Management Policy included in the CIP. BACKGROUND: For over 20 years the County has produced a Capital Improvement Plan that establishes a program of improvements for the County as well as Schools. The CIP was originally prepared as a 5 year planning document that was re-evaluated annually to include year-to-year changes in priorities, needs, and available resources. Over the years the CIP evolved to a 10 year plan and the name was changed to the Capital Investment Plan. The CIP has evolved over the years to also include a Capital Funding Policy and Debt Management Policy. The 2008-18 Capital Investment Plan was the most recent 10 year CIP approved by the Board. North Carolina and Orange County are adjusting to the new economic realities of life after a recession and slow economic growth for the foreseeable future. The assumptions made with regard to funding sources are no longer valid. The growth assumptions of state shared revenues and revenues generated from economic activity are no longer valid. Historical trends are no longer reliable to forecast future economic activity. Life as we knew it in 2008 has changed. • Orange County is evolving into what will be the new normal. As we make this transition we are recommending changes to both the format and policies included in the CIP. Outlined below are the highlights of those changes: a CIP Recommended Format Changes: 1. Migrating back to a 5 year plan from the existing 10 year CIP. • 2. Changing the presentation date of the CIP to the Board to January. 3. Including County Capital, Solid Waste, and Schools Capital into one CIP. 4. Including a schedule of Active County Capital Projects. 5. Including Capital Reserve Balances. 6. Including a Debt Service and Debt Capacity Schedule. Capital Funding Policy Recommended Changes: 1. Changing to a 5 year plan from a 10 year CIP. 2. Raising the minimum amount to be included in the plan to $100,000. 3. Eliminating Public School Building Capital Funds as a revenue source. 4. Changing the procedure for the budget and use of Lottery Proceeds. • 5. Eliminating the Construction Management section. 6. Eliminating Equipment and Vehicle Financing from the Recurring Capital section. Debt Management Policy Recommended Changes: 1. Changing the Undesignated Fund Balance section to include a recommended undesignated fund balance range of between 15% and 20% percent. 2. Updating the language in the Capital Reserve Fund section. 3. Updating the County's Bond Ratings section. 4. Changing to a 5 year plan from a 10 year CIP 5. Adding language that includes an annual review of the CIP. FINANCIAL IMPACT: There is no financial impact associated with changing the format of the County's Capital Investment Plan and updating the Capital Funding Policy and Debt • Management Policy. • • RECOMMENDATION(S): The Manager recommends the Board review and discuss the proposed change in format of the County's Capital Investment Plan. Provide direction to staff on next steps relating changes in the Plan format and Capital Funding Policy and Debt Management Policy included in the CIP. • ~`t~CIY"YL- ~.. 4 Oran a Count g Y 2011-16 Capital Investment Plan Table of Contents Purpose & Overview Capital Funding Policy (old & new draft) Debt Management Policy (old & new draft) Summaries Orange County Capital Investment Plan County Capital Projects Summary County Capital Operating Impact Summary Solid Waste Projects Summary Schools Capital Projects Summary Requested County Capital Projects ABC Requested Schools Capital Projects Chapel Hill Carrboro City Schools Orange County Schools Appendices Active County Capital Projects Capital Reserve Funds Balances County Debt Service and Debt Capacity Schedule • Adopted 04/24/2007 Orange County Board of Commissioners • Approved Capital Funding Policy Preamble This capital funding policy is the product of extensive analysis and deliberation. The intent of this policy is to reflect greater priority than there has been historically on providing funding for County projects, with particular emphasis directed at enhanced upkeep of existing County facilities. The policy reflects the implementation of the Board of Commissioners' resolution of November 16, 2004 that the Board "does hereby adopt in principle a policy of allocating a target of 60 percent of capital expenditures for school projects and 40 percent of capital expenditures for county projects over the decade beginning in calendar year 2005". This policy continues the County's principle and historical practice of funding all School and County related debt service obligations before allocating any other School or County capital funds for other purposes. Long Range Capital Investment Plan During October of each fiscal year, the County Manager shall present, to the Board, ten- year County and School capital needs and funding plans in the form of a Capital Investment Plan. Each year, the Board of Commissioners shall conduct a public hearing on the Manager's Recommended CIP during November and subsequently adopt aten- • year Capital Investment Plan (CIP). The first year of the adopted ten-year Capital Investment Plan shall become the basis for the annual capital budget and incorporated into the next annual operating budget recommended by the County Manager. County and School recurring capital needs will be identified and reviewed during each annual operating budget cycle, and recurring capital appropriations will be approved by the Board of Commissioners as an element of each annual Orange County Budget Ordinance. The ten-year plan for long-range capital funding shall include: • Anticipated County capital expenditures costing $25,000 or more (excluding equipment) • Anticipated school capital expenditures costing $50,000 or more (excluding equipment) • Equipment costing $5,000 or more Sources of Funds The County will allocate the following sources of funds for County and School debt service • and long-range and recurring capital: • All proceeds from the Article 40 and Article 42 half-cent sales taxes. (The North Carolina General Statutes require that 30 percent of the An`icle 40 (NCGS§105-487(a)) and 60 percent of the Article 42 (NCGS§105-502(a)) sales tax 5 Adopted 04/24/2007 I) revenue be earmarked for public schoo/ capital outlay as defined in NCGS§905-426(1) ' or to retire any indebtedness incurred by the county for these purposes) • School Construction Impact Fees for each school system. • • Public School Building Capital Fund monies • Property tax revenue sufficient to pay all debt service on remaining 1988,1992, 1997, or 2001 bonds, or refinancings thereof, as well as alternative financing programmed in the debt issuance schedule approved by the Board on May 5, 2004 and any subsequent updates to that schedule as the Board may approve. • It is the intent of the Board of County Commissioners to dedicate the equivalent of four cents on the annual ad valorem property tax to funding recurring capital expenditures for schools (three cents) and county (1 cent). However, there will be times when the County will be bound fiscally and unable to achieve full funding. During those times, Commissioners may find it necessary to depart from the Policy. During the 2008-18 Capital Investment Plan development process, the Board will consider a timetable for .phasing in the additional two-cents necessary to fully the recurring capital component of this policy. (This 4-cent rate may, but need not, be adjusted with each quadrennial revaluation to a "revenue neutral" earmarking) • Beginning in fiscal year 2007-08, the County will budget NC Education Lottery proceeds "in arrears" -meaning that funds will be budgeted in the year after the State distributes them. For example, lottery proceeds distributed to the County during the upcoming 2007-08 fiscal year would be budgeted the following fiscal year, 2008-09. • Debt Service All County and School related debt service obligations would be funded prior to allocation of programmed funding for any other capital purposes. All proceeds from annual allocations of North Carolina Public School Building Capital Funds will be earmarked explicitly to pay for eligible school debt service. Orange County Schools' impact fees will be earmarked explicitly to pay for debt service on projects that involved the construction of new school space in the Orange County Schools system. Chapel Hill-Carrboro City Schools' impact fees will be earmarked explicitly to pay for debt service on projects that involved the construction of new school space in the Chapel Hill-Carrboro City Schools system. NC Education Lottery Proceeds Beginning in fiscal year 2008-09, each school district will have the option to dedicate its share of the annual NC Education Lottery monies either (1) to repay debt service for debt issued after fiscal year 2006-07 to address school facility renovation needs or (2) as an additional revenue to the districts pay-as-you-go funding to address school facility renovation needs. If either district chooses to dedicate Lottery proceeds to repay debt service, Lottery proceeds, sufficient to cover annual debt payments for principal and • interest, will be dedicated for the life of the financing. Adopted 04/24/2007 ' Beginning in fiscal year 2008-09, during the first quarter of each year, County staff will • request, from the State, the amount of monies accumulated in the Lottery fund for both school districts with the intent of expending those funds during the fiscal year for either debt service payments or individual School capital projects as .identified by each districts during their annual update of their ten-year capital plan. Allocation With the exception of the revenues earmarked for School and County recurring capital and the Construction Management function, the net proceeds of all programmed revenue sources after debt service obligations have been satisfied will be allocated on the basis of 60% to schools and 40% to the County. Capital funding for each ten-year capital planning period will be allocated between the two school systems based on certified student membership as of November 15 each year. Capital Project. Ordinances -Form and Purpose All funds allocated to capital projects are to be accounted for in a Capital Project Fund as authorized by a Board of County Commissioner approved Capital Project Ordinance. The Capital Project Ordinance will include a detailed break down of each major cost category related to the project. • In accordance with the Board of County Commissioners November 2000 adopted "Policy on Planning and Funding School Capital Projects", whenever School capital project bids are either higher or lower than originally projected, or any other factor affecting the project budget occurs, the affected school system is expected to work with County Management and Budget staff to present revised capital project ordinances for adoption by the Board of Commissioners. The same expectations shall be applicable for changes to County Capital project budgets. Community Use of Schools It is the intent of the Board of County Commissioners to evaluate each new proposed school in both School Districts for joint community use opportunities, including, but not limited to, park and recreation use. Recurring Capital As outlined in the "Sources of Funds" section of this policy, recurring capital funding for the Schools and County will be based on the estimated proceeds of 4 cents on the annual General Fund property tax rate. The proceeds from 3 cents will be earmarked for schools, with funds allocated to each school system for the next fiscal year based on each system's respective share of the student membership as of November 15 immediately preceding the next fiscal year. Proceeds from 1 cent on the tax rate will be earmarked for County recurring capital needs. • With regard to County Equipment and Vehicle acquisitions accomplished using third party financing, the Board of County Commissioners will determine the source of funding to repay the associated debt service at the point that the Board approves the financing arrangement. Adopted 04/24/2007 8 Construction Management Function • Beginning with the 2005-06 fiscal year, the Board of Commissioners will appropriate funding to establish a Construction Management function to oversee County and School capital projects. In fiscal years 2005-06 through 2007-08, $100,000 will be allocated annually to fund this function. The source of funding for the Construction Management function will be split on a 60/40 basis with each school district sharing the schools portion of funding (60%) in accordance with certified student membership as of November 15 each year. Each entity's share of this function will be deducted from its share of long- range capital funding prior to allocating capital funds. Schools Adequate Public Facilities Ordinance Orange County's Schools Adequate Public Facilities Ordinance (SAPFO) and Memoranda of Understanding (MOUs) between the County and its municipal and school partners establish the machinery to assure that, to the extent possible, new development will take place only when there are adequate public school facilities available, or planned, which will accommodate such new development. The Board of County Commissioners is committed to the principle that new school space documented as needed through the annual SAPFO technical-review process will be reflected in the next adopted CIP, and will be funded so as to be constructed to be available before the relevant level of service threshold is exceeded. Rescission This policy rescinds the Orange County Board of Commissioners Capital Funding Policy, • as originally approved on December 7, 1996 and as amended on February 3, 1998 and June 23, 2005. Approved April 24, 2007. Draft 9 Orange County Board of Commissioners • Approved Capital Funding Policy Preamble This capital funding policy is the product of extensive analysis and deliberation. The intent of this policy is to reflect greater priority than there has been historically on providing funding for County projects, with particular emphasis directed at enhanced upkeep of existing County facilities. The policy reflects the implementation of the Board of Commissioners' resolution of November 16, 2004 that the Board "does hereby adopt in principle a policy of allocating a target of 60 percent of capital expenditures for school projects and 40 percent of capital expenditures for county projects over the decade beginning in calendar year 2005". This policy continues the County's principle and historical practice of funding all School and County related debt service obligations before allocating any other School or County capital funds for other purposes. Long Range Capital Investment Plan During January of each fiscal year, the County Manager shall present, to the Board, five- year County and School capital needs and funding plans in the form of a Capital Investment Plan. Each year, the Board of Commissioners shall conduct a public hearing on the Manager's Recommended CIP during March and subsequently adopt afive-year • Capital Investment Plan (CIP) as part of the annual operating budget in June. County and School recurring capital needs will be identified and reviewed during each annual operating budget cycle, and recurring capital appropriations will be approved by the Board of Commissioners as an element of each annual Orange County Budget Ordinance. The five-year plan for long-range capital funding shall include anticipated County and School capital expenditures costing $100,000 or more. Sources of Funds The County will allocate the following sources of funds for County and School debt service and long-range and recurring capital: • All proceeds from the Article 40 and Article 42 half-cent sales taxes. (The North Carolina General Statutes require that 30 percent of the Article 40 (NCGS§105-487(a)) and 60 percent of the Article 42 (NCGS§105-502(a)) sales tax revenue be earmarked for public school capital outlay as defined in NCGS§105-426(1) or to retire any indebtedness incurred by the county for these purposes) • School Construction Impact Fees for each school system. • Property tax revenue as needed and approved by the Board. • 10 Draft • It is the intent of the Board of County Commissioners to dedicate the equivalent of four cents on the annual ad valorem property tax to funding recurring capital expenditures • for schools (three cents) and county (1 cent). There will be times when the County will be bound fiscally and unable to achieve full funding. During those times, Commissioners may find it necessary to depart from the Policy. (This 4-cent rate may, but need not, be adjusted with each quadrennial revaluation to a "revenue neutral" earmarking) The County will budget NC Education Lottery proceeds as the revenues are distributed by the State each quarter, once the revenues are identified for an individual school capital project and requested by each district. Debt Service All County and School related debt service obligations would be funded prior to allocation of programmed funding for any other capital purposes. Orange County Schools' impact fees will be earmarked to pay for debt service on projects that involved the construction of new school space in the Orange County Schools system. Chapel Hill-Carrboro City Schools' impact fees will be earmarked to pay for debt service on projects that involved the construction of new school space in the Chapel Hill-Carrboro City Schools system. These expenditures will be tracked and verified by each district annually. NC Education Lottery Proceeds • Each school district will have the option to dedicate its share of the annual NC Education Lottery monies to address school facility renovation needs or as additional revenue to the districts pay-as-you-go funding to address school facility renovation needs. Annually either district can request that the County dedicate Lottery proceeds to repay debt service and the county will substitute pay-as-you-go-funding to expedite approved capital projects in the schools capital improvement plan. Allocation Capital funding for each five-year capital planning period will be allocated between the two school districts based on the student membership planning allotments, provided by the NC Department of Public Instruction each fiscal year. Capital Project Ordinances -Form and Purpose All funds allocated to capital projects are to be accounted for in a Capital Project Fund as authorized by a Board of County Commissioner approved Capital Project Ordinance. The Capital Project Ordinance will include a detailed break down of each major cost category related to the project. • Draft In accordance with the Board of County Commissioners November 2000 adopted "Policy on Planning and Funding School Capital Projects", whenever School capital project bids are either higher or lower than originally projected, or any other factor affecting the project. budget occurs, the affected school system is expected to work with County Management and Budget staff to present revised capital project ordinances for adoption by the Board of Commissioners. The same expectations shall be applicable for changes to County Capital project budgets. Community Use of Schools It is the intent of the Board of County Commissioners to evaluate each new proposed school in both School Districts for joint community use opportunities, including, but not limited to, park and recreation use. Recurring Capital As outlined in the "Sources of Funds" section of this policy, recurring capital funding for the Schools and County will be based on the estimated proceeds of 4 cents on the annual General Fund property tax rate. The proceeds from 3 cents will be earmarked for schools, with funds allocated to each school system for the next fiscal year based on each system's respective share of the student membership. Proceeds from 1 cent on the tax rate will be earmarked for County recurring capital needs. Schools Adequate Public Facilities Ordinance • Orange County's Schools Adequate Public Facilities Ordinance (SAPFO) and Memoranda of Understanding (MOUs) between the County and its municipal and school partners establish the machinery to assure that, to the extent possible, new development will take place only when there are adequate public school facilities available, or planned, which will accommodate such new development. The Board of County Commissioners is committed to the principle that new school space documented as needed through the annual SAPFO technical review process will be reflected in the next adopted CIP, and will be funded so as to be constructed to be available before the relevant level of service threshold is exceeded. Rescission This policy supersedes any policy in place prior to this date. Approved , 2010. 11 • 12 • ORANGE COUNTY BOARD OF COMMISSIONERS DEBT MANAGEMENT POLICY The County has long recognized the importance of proper long-range planning in order to meet capital improvement needs as they arise without experiencing dramatic impacts on operational cost and debt service. The following policy statements will provide guidance on the issuance of dept to help insure that the County maintains a sound debt position and that its credit quality is protected. In conjunction with the County's Capital Policies, these policy° st~~tements rationalize the decision making process, identify objectives for staff to implement, and demonstrate a commitment long term financial planning objectives. In addition, this debt management policy will allow for an appropriate balance between the establishing debt parameters and providing flexibility to respond to unforeseen circumstances and new opportunities. POLICY STATEMENTS Purpose and Type of Debt 1. Incurrence of debt or long-term borrowing will only be used for the purpose of providing financing for capital projects to include, but not be limited to: • a. Construction of new School and County facilities b. Renovation and repair of existing School and County facilities c. Acquisition of real property (land and/or buildings) d. Construction or expansion of Sanitary Sewer Systems e. Providing funds for Affordable Housing Projects f. Construction, acquisition and development of Parks g. Purchase of major equipment Debt issuance will not be used to finance current operations or normal maintenance. 2. The types of debt instruments to be used by the County include: a. General Obligation Bonds b. Bond Anticipation Notes c. Installment Purchase Agreements (private placement) d. Special Obligation Bonds (landfill only) e. Certificates of Participation, when feasible f. Revenue Bonds 3. All debt issued, including installment purchase methods, will be repaid within a period not to exceed the expected useful life of the improvements or equipment financed by the debt. . 4. The County will not issue tax or revenue anticipation notes. 13 Purpose and Type of Debt (continued) • 5. The County will not issue bond anticipation notes with maturities in excess of one year. 6. The County will strive to maximize the use of pay-as-you-go financing for capital improvements. Issuance of Debt 7. The County will strive to issue bonds no more frequently than once in any fiscal year. The scheduling of bond sales and installment purchase decisions and the amount of bonds be sold and installment financing to be sought will be determined each year by the County Commissioners. These decisions will be based upon the identified cash flow requirements for each project financed, market conditions, and other relevant factors. These factors will be ascertained from the school systems and County departments. If cash needs for bond projects are insignificant in any given year, the Board may choose not to issue bonds. Instead, the Board may fund up from project costs and reimburse these costs when bonds are sold. In these situations the Board will adopt Reimbursement Resolutions prior to the expenditure of • project funds. 8. The County will seek level or declining debt repayment schedules and will avoid issuing debt that provides for balloon principal payments reserved at the end of the term of the issue. 9. The County will avoid over-reliance on variable rate debt. Variable rate debt will only be considered. when market conditions favor this type of issuance. When variable ,rate debt is considered, careful analysis will be performed and techniques applied that will ensure that the County's sounds debt position will be maintained. At no time will variable rate debt exceed 20% of the County's total outstanding debt. 10. The County is required by Statute to issue general obligation debt through a competitive process. The competitive process will also be used for other debt issuance unless time factors, interest rates or other factors make it more favorable to the County to use a negotiated process. 11. In the planning process for debt issuance the County will assess the need to maintain it's "Bank Qualification" if installment purchase financing is being considered. • 14 • Level of Debt 12. The County will strive to maintain its net bonded debt at a level not to exceed three percent of the assessed valuation of taxable property within the County. 13. The County will strive to maintain its annual debt service costs at a level no greater than fifteen percent of general fund revenues, including installment purchase debt. Undesignated Fund Balance 14. The County will strive to maintain undesignated balance in the general fund at a level sufficient to meet its budgeted goals, to be determined annually. The amount of undesignated fund balance maintained during each fiscal year should not be less than eight percent of budgeted general fund operating expenditures that fiscal year. 15.To the extent that undesignated fund balance exceeds the budgeted goals the County could consider drawing upon the balance fund major equipment purchases or one time expenses on apay-as-you-go-basis. Investment of Capital Funds • 16. Investment of capital funds will be performed in accordance with the North Carolina General Statutes (159-30). Funds will be invested in instruments that will provide the liquidity required to meet the cash flow needs of each project funded. 17. Investment earnings on capital funds, after subtracting required or potential arbitrage, will be used for project costs and/or debt service. Bond Ratings 18. The County will maintain good communications with bond rating agencies about its financial condition and will follow a policy of full disclosure on every financial report and offering statement. 19. The County will strive to maintain bond ratings at or better than Aal (Moody's) and AA+ (Standard & Poor's). • 15 Arbitrage Rebate and Secondary Market Disclosure Requirements • 20. The County will comply with all arbitrage rebate requirements as established by the Internal Revenue Service and all secondary market disclosure requirements established by the Securities and Exchange Commission. 21. Arbitrage will be calculated at the end of each fiscal year and interest earned on investment of bond or installment purchase proceeds will be reserved to any penalties due. Enterprise Funds 22. For any Enterprise Fund that is supporting debt, an annual rate study will be performed to ensure that fees or rates are sufficient to meet the debt service requirements. Capital Reserve Funds 23. The County will create and maintain capital reserve funds as appropriate, such as for school and county projects. 24. The Capital Reserves will be funded from unallocated '/2 cent sales tax revenues and/or any other revenue source that the County Commissioners may choose. • 25. Funds accumulated in the Capital Reserve Funds will be used on a pay-as- you-go basis to finance renovations and repairs to existing buildings and the purchase of major equipment. The Board may also choose to fund other pay- as-you-go initiatives from Reserve Funds. 10-Year Capital Investment Plan (CIP) 26. The County will adopt a ten year CIP annually. 27. This Debt Management Policy will be incorporated into the CIP. 28. The County will strive to include plans for debt issuance within the CIP. • Draft • ORANGE COUNTY BOARD OF COMMISSIONERS DEBT MANAGEMENT POLICY The County has long recognized the importance of proper long-range planning in order to meet capital improvement needs as they arise without experiencing dramatic impacts on operational cost and debt service. The following policy statements will provide guidance on the issuance of dept to help insure that the County maintains a sound debt position and that its credit quality is protected. In conjunction with the County's Capital Policies, these policy statements rationalize the decision making process, identify objectives for staff to implement, and demonstrate a commitment long term financial planning objectives. In addition, this debt management policy will allow for an appropriate balance between the established debt parameters and providing flexibility to respond to unforeseen circumstances and new opportunities. POLICY STATEMENTS Purpose and Type of Debt 1. Incurrence of debt or long-term borrowing will only be used for the purpose of providing financing for capital projects to include, but not limited to: . a. Construction of new School and County facilities b. Renovation and repair of existing School and County facilities c. Acquisition of real property (land and/or buildings) d. Construction or expansion of Sanitary Sewer Systems e. Providing funds for Affordable Housing Projects f. Construction, acquisition and development of Parks g. .Purchase of major equipment Debt issuance will not be used to finance current operations or normal maintenance. 2. The types of debt instruments to be used by the County include: a. General Obligation Bonds b. Bond Anticipation Notes c. Installment Purchase Agreements (private placement) d. Special Obligation Bonds (landfill only) e. Certificates of Participation, when feasible f. Revenue Bonds 3. All debt issued, including installment purchase methods, will be repaid within a period not to exceed the expected useful life of the improvements or equipment financed by the debt. 16 • 4. The County will not issue tax or revenue anticipation notes. Drag Purpose and Type of Debt (continued) 5. The County will not issue bond anticipation notes with maturities in excess of one year. 6. The County will strive to maximize the use of pay-as-you-go financing for capital improvements. Issuance of Debt 17 7. The County will strive to issue bonds no more frequently than once in any fiscal year. The scheduling of bond sales and installment purchase decisions and the amount of bonds be sold and installment financing to be sought will be determined each year by the County Commissioners. These decisions will be based upon the identified cash flow requirements for each project financed, market conditions, and other relevant factors. These factors will be ascertained from the school systems and County departments. If cash needs for bond projects are insignificant in any given year, the Board may choose not to issue bonds. Instead, the Board may fund up front project costs and reimburse these costs when bonds are sold. In these situations the Board will adopt Reimbursement Resolutions prior to the expenditure of • project funds. 8. The County will seek level or declining debt repayment schedules and will avoid issuing debt that provides for balloon principal payments reserved at the end of the term of the issue. 9. The County will avoid over-reliance on variable rate debt. Variable rate debt will only be considered when market conditions favor this type of issuance. When variable rate debt is considered, careful analysis will be performed and techniques applied that will ensure that the County's sound debt position will be maintained. At no time will variable rate debt exceed 20% of the County's total outstanding debt. 10. The County is required by Statute to issue general obligation debt through a competitive process. The competitive process will also be used for other debt issuance unless time factors, interest rates or other factors make it more favorable to the County to use a negotiated process. 11. In the planning process for debt issuance the County will assess the need to maintain it's "Bank Qualification" if installment purchase financing is being considered. U Draft • Level of Debt 12. The County will maintain its net bonded debt at a level not to exceed three percent of the assessed valuation of taxable property within the County. 13. The County will strive to maintain its annual debt service costs at a level no greater than fifteen percent of general fund revenues, including installment purchase debt. This is a recommended "best practice" from the Government Finance Officers Association,...,. ; Undesignated Fund Balance 14. The County will strive to maintain an undesignated balance in the general fund of between 15% and 20% percent of budgeted general fund operating expenditures each fiscal year. The amount of undesignated fund balance maintained during each fiscal year should not fall below 8% percent of budgeted general fund operating expenditures as recommended by the North Carolina Local Government Commission. 15. To the extent that general fund undesignated fund balance exceeds 20% percent the balances may be utilized to fund capital expenditures or pay down outstanding County debt. • Investment of Capital Funds 16. Investment of capital funds will be performed in accordance with the North Carolina General Statutes (159-30). Funds will be invested in instruments that will provide the liquidity required to meet the cash flow needs of each project funded. 17. Investment earnings on capital funds, after subtracting required or potential arbitrage, will be used for project costs and/or debt service. Bond Ratings 18. The County will maintain good communications with bond rating agencies about its financial condition and will follow a policy of full disclosure on every financial report and offering statement. 19. The County will strive to maintain bond ratings at or better than AAA (Fitch), Aa2 (Moody's Investor Services) and AA+ (Standard & Poor's). • 18 Draft ~ 9 Arbitrage Rebate and Secondary Market Disclosure Requirements • 20. The County will comply with all arbitrage rebate requirements as established by the Internal Revenue Service and all secondary market disclosure requirements established by the Securities and Exchange Commission. 21. Arbitrage will be calculated at the end of each fiscal year and interest earned on investment of bond or installment purchase proceeds will be reserved to any penalties due. Enterprise Funds 22. For any Enterprise Fund that is supporting debt, an annual rate study will be performed to ensure that fees or rates are sufficient to meet the debt service requirements. Capital Reserve Funds 23. The County will create and maintain capital reserve funds as appropriate, such as for school and county projects. 24. The Capital Reserves will be funded from property tax revenues, sales tax revenues and/or any other revenue source that the County Commissioners • may choose. 25. Funds accumulated in the Capital Reserve Funds will be used on a pay-as- you-go basis to finance renovations and repairs to existing buildings and the purchase of major equipment. The Board may also choose to fund other pay- as-you-go initiatives from Reserve Funds. 5-Year Capital Investment Plan (CIP) 26. The County will review and adopt a five-year CIP annually. 27. This Debt Management Policy will be incorporated into the CIP. 28. The County will strive to include plans for debt issuance within the CIP. Rescission This policy supersedes any policy in place prior to this date. Approved , 2010. • • • Orange County Capital Investment Plan Fiscal Years 2010-16 Current Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Total Appropriations County Capital Projects 1,700,000 1,493,125 1,500,000 1,750,000 2,000,000 2,000,000 10,443,125 Solid Waste Projects 53,536 2,153,978 982,813 300,000 3,490,327 Schools Capital Projects Chapel Hill Carrboro City Schools 2,534,911 2,550,876 2,567,002 2,591,431 2,616,227 2,649,785 15,510,232 Orange County Schools 1,563,850 1,573,786 1,583,821 1,599,024 1,614,455 1,635,338 9,570,274 Tofa/ 5,852,297 7,771,765 5,650,823 6,923,268 6,530,682 6,285,123 39,013,958 Revenues/Funding Source General Fund -County Capital 300,000 750,000 1,500,000 1,750,000 2,000,000 2,000.,000 8,300,000 General Fund -Schools Capital 3,040,117 3,066,018 3,092,179 2,681,811 2,722,038 2,776,479 17,378,642 County Capital Fund Balance 500,000 743,125 1,243,125 Solid Waste Fund Balance 53,536 2,153,978 982,813 300,000 3,490,327 Schools Capital Reserves Lottery Proceeds 1,058,644 1,058,644 1,058,644 1,508,644 1,508,644 1,508,644 7,701,864 Transfer from Visitors Bureau Fund _ 200,000 200,000 Financing: Debt Financing -Equipment 700,000 700,000 Debt Financing -County Capital Debt Financing -Schools Capital - Total 5,852,297 7,771,765 5,650,823 6,923,268 6,530,682 6,285,123 39,013,958 • N O County Capital Projects Summary Fiscal Years 2010-16 Current Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Projects 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Total Appropriation Technology 500,000 500,000 700,000 700,000 700,000 700,000 3,800,000 800 MHz Radios 700,000 700,000 Loan Pool Reserve 200,000 200,000 Buckhorn Economic Development Dist 200,000 200,000 Dental Equipment Clinics 100,000 100,000 HVAC Replacements - 871,625 51,975 923,600 RoofRep/acements - 121,500 192,500 80,500 275,000 669,500 Transfer to County Capital Reserve 800,000 857,500 1,167,525 1,025,000 3,850,025 Total Projects Costs 1,700,000 1,493,125 1,500,000 1,750,000 2,000,000 2,000,000 10,443,125 General Fund Related Operating Costs Personnel Services 125,000 128,125 131,328 131,328 134,611 650,393 Operations ~ 50,000 52,500 55,000 57,500 57,500 272,500 New Debt Service 900,000 900,000 900,000 900,000 900,000 4,500,000 Total Operating Costs 1,075,000 1,080,625 1,086,328 1,088,828 1,092,111 5,422,893 Total 1,700,000 2,568,125 2,580,625 2,836,328 3,088,828 3,092,111 15,866,018 Revenues/Funding Source General Fund 300,000 1,825,000 2,580,625 2,836,328 3,088,828 3,092,111 13,722,893 County Capita! Fund Balance 500, 000 743,125 1,243,125 Transfer from Visitors Bureau Fund 200,000 200,000 Debt Financing -Equipment 700,000 700,000 Total 1,700,000 2,568,125 2,580,625 2,836,328 3,088,828 3,092,111 15,866,018 N • • • j , • • • County Capital Operating Impact Summary Fiscal Years 2010-16 Current Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Related Operating Costs 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Total Personnel Services Twin Creeks Park phase l/ 124,500 128,235 132,082 136,045 520,862 Operations Twin Creeks Park phase 11 37,000 37,000 37,500 37,500 149,000 Debt Service Twin Creeks Park phase 11 385,000 385,000 385,000 385,000 1,540,000 800 MHz Radios 160,000 160,000 160,000 160,000 160,000 800,000 Total - 160,000 706,500 710,235 714,582 718,545 3,009,862 Revenues/Funding Source General Fund 160,000 706,500 710,235 714,582 718,545 3,009,862 Total - 160,000 706,500 710,235 714,582 718,545 3,009,862 N N Solid Waste Projects Summary Fiscal Years 2010-16 Current Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Projects 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Total Appropriation Municipal Solid Waste Landfill Closure 53,536 2,153,978 2,207,514 Relocate Recycling & TransferArea 982,813 982,813 Organics Processing Facility 300,000 300,000 Total Projects Costs Solid Waste Related Operating Costs Personnel Services Operations Debt Service Total Operating Costs Total Revenues/Funding Source Sold Waste Fund Balance Total 53,536 2,153,978 982,813 300,000 0 3,490,327 53,536 2,153,978 0 982,813 300,000 0 3,490,327 53,536 2,153,978 982,813 300,000 3,490,327 53,536 2,153,978 0 982,813 300,000 0 3,490,327 N • • • W • • Schools Capital Projects Summary Fiscal Years 2010-16 • Current Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Projects by School System 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Total Chapel Hill Carrboro City Schools ADA Abatement Projects Athletic Facilities Classroom/Building Improvements Doors/Hardware/Canopies Electrical Systems Energy Efficiency/Lighting Improvements Fire/Safety/Security Systems Indoor Air Quality Improvements Mechanical Systems Mobil Classrooms/Rental Space Pa ving: ParkingLots/Drive ways/Walkways Roofing Projects Window Replacements Technology (Unfunded) Orange County Schools Cameron Park Elementary Central Elementary Efland Cheeks Elementary Grady Brown Elementary Hillsborough Elementary New Hope Elementary Pathways Elementary School A L Stanback Middle C W Stanford Middle Orange High 25,000 75,000 75,000 60,000 75,000 75,000 385,000 33,000 70,000 290,000 50,000 75,000 75,000 593,000 295,000 160,000 125,000 150,000 100,000 300,000 1,130,000 248,222 249,973 415,000 913,195 75,000 50,000 125,000 250,000 125,000 75,000 75,000 80,000 50,000 50,000 455,000 50,000 50,000 65,000 50,000 53,179 150,000 318,179 125,000 40,000 50,000 215,000 435,000 324,440 197,582 957,022 180,000 100,000 103,000 106,000 110,000 113,000 712,000 370,000 200,000 420,000 990,000 310,000 1,096,123 1,400,143 1,600,000 825,000 5,231,266 275,000 250,000 525,000 1,831,000 2,041,097 2,068,143 2,099,180 2,134,440 2,170,582 12,344,442 (1,507,311) (1,531,317) (1,569,284) (1,606,928) (1,652,653) (1,691,379) (9,558,872) 2,534,911 2,550,876 2,567,002 2,591,431 2,616,227 2,649,785 15,510,232 35,000 655,000 200,000 45,000 165,000 150,000 1,250,000 481,500 55,000 336,000 165,000 170,000 1,207,500 481,500 481,500 171,000 6,000 20,000 350,000 547,000 387,000 150,000 220,000 150,000 907,000 100,000 100,000 20,000 20,000 30,000 270,000 30,000 12,000 42,000 100,000 640,000 300,000 30,000 312,000 150,000 1,532,000 4,315,000 612,000 490,000 225,000 375,000 6,017,000 420,000 310,000 580,000 34,000 5,000 8,000 1,357,000 N -P Schools Capital Projects Summary Fiscal Years 2010-16 Current Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Projects by School System 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Total Partnership Academy Alternative School 5,000 100,000 105,000 Gravelly Hill Middle School 17,500 12,000 3,000 15,500 48,000 Cedar Ridge High School 125,000 415,000 30,000 10,185,000 2,405,000 14,010,000 27,170,000 Transportation Department 77,000 187,000 107,000 77,000 375,000 823,000 District 1,466,000 1,082,500 1,119,900 1,115,000 1,072,500 985,000 6,840,900 (Unfunded) (6,612,650) (2,644,714) (1,634,079) (10,537,976) (2,830,545) (14,767,662) (39,027,626) Total 1,563,850 1,573,786 1,583,821 1,599,024 1,614,455 1,635,338 9,570,274 Revenues/Funding Source General Fund (Pay-As-You-Go) Lottery Proceeds (7) Debt Financing 4,098,761 4,124,662 4,150,823 4,190,455 4,230,682 4,285,123 25,080,506 2,590,117 2,616,018 2,642,178 2,681,811 2,722,038 2,776,479 16,028,642 1,508,644 1,508,644 1,508,644 1,508,644 1,508,644 1,508,644 9,051,864 4,098,761 4,124,662 4,150,822 4,190,455 4,230,682 4,285,123 25,080,506 * The article 46 one quarter cent sales tax, if approved, could add $977,500 of additional revenues for Schools Capital (1) For fiscal 2010-11 the State reduced lottery proceeds from 40% of net proceeds to $25.8% in order to reallocate funds to the State Budget for classroom teachers and university scholarships. The CIP assumption is that this amount will remain constant for the next five fiscal years. N • • ~ • 26 • • ORANGE COUNTY SCHOOLS CAPITAL INVESTMENT PLAN 2010-2020 Orange County Schools Capital Investment Plan 2009-2019 27 Project Title Year 1 2010-11 Year 2 2011 12 Year 3 201 Z-13 Year 4 2013-14 Year 5 2014-15 Year 6 2015-16 Year 7 2016-17 Year 8 2017-18 Year 9 2018-19 Year 10 2019-20 PROJECT TOTAL Cameron Park Elementa School Asphalt resurfacing (lower play area and front arkin lot) $100,000 $100,000 Facili aintin $10,000 $10,000 Chilled water i e insulation $15,000 $15,000 Streetsca a renovation $185,000 $185,000 Lower layground shelter $15,000 $15,000 Door replacement (Gym and hallways) $20,000 $20,000 As halt resurfacin bus arkin lot $40,000 $40,000 Bathroom renovations $120,000 $120,000 Chiller re lacement $160,000 $160,000 Roof re lacement lower level $250,000 $250,000 Electronic securi door locks $35,000 ~ $35,000 GREEN buildin enhancements $150,000 $150,000 $300,000 Central Elementa School Media Center window re lacement $30,000 $30,000 Electronic securi door locks $35,000 $35,000 Asphalt resurfacing (track and front parking lot ex ansion $150,000 $150,000 Draina a im rovements $10,000 $10,000 Casework replacement (K-1 classrooms) $100,000 $100,000 eplace the in classroom bathrooms $25,000 $25,000 eplace all mini-blinds $25,000 $25,000 Air handler re lacement $65,000 $65,000 Roof re lacement (Section G $30,000 $30,000 Repairceiling overhang (Media Center) $10,000 $10,000 HVAC duct cleaning $26,500 $26,500 Cover walkwa to 5th rode win $35,000 $35,000 Enclose breezewa $275,000 $275,000 Re lace g m sound s stem $6,000 $6,000 Bathroom renovations $120,000 $120,000 GREEN buildin enhancements $150,000 $150,000 $300,000 Orange County Schools Capital Investment Plan 2009-2019 28 Project Title Year 1 2010-11 Year 2 2011 12 Year 3 2012-13 Year 4 2013-14 Year 5 2014-15 Year 6 2015-16 Year 7 2016-17 Year 8 2017-18 Year 9 2018-19 Year 10 2019-20 PROJECT TOTAL d Cheeks Elementa School Casework replacement (K-1 classrooms) $100,000 $100,000 HVAC far kitchen $30,000 $30,000 Electronic securi door locks $15,000 $15,000 HVAC duct cleanin $26,500 $26,500 Re air front draina e s stem $10,000 $10,000 Bathroom renovations $150,000 $150,000 GREEN buildin enhancements $150,000 $150,000 $300,000 Main entrance enhancement $150,000 $150,000 Grad A. Brown Elementary School Re lace sinklcabinets $6,000 $6,000 Install bounda fence on lay round $20,000 $20,000 Walkway (between GABES and CRHS) $16;000 $16,000 Bathroom renovations $120,000 $120,000 Electronic securi door locks $35,000 $35,000 GREEN buildin enhancements $150,000 $150,000 $300,000 Main entrance enhancement $150,000 $150,000 Window re lacement $200,000 $200,000 Hillsborou h Elementary School Roof re lacement Section 6A) $200,000 $200,000 Re lace exterior doors (100 buildin $25,000 $25,000 HVAC chilled water line insulation $10,000 $10,000 nvironmental controls $150,000 $150,000 lectronic securi door locks $35,000 $35,000 Asbestos removal (gym hot water pipes) $22,000 $22,000 G m bathroom renovations $95,000 $95,000 Window re lacement ( m $70,000 $70,000 GREEN building enhancements ~ $150,000 $150,000 $300,000 New Ho a Elementa School Concrete re airs $30,000 $30,000 Ceilin renovation $20,000 $20,000 Li htin u grades $20,000 $20,000 GREEN buildin enhancements $150,000 $150,000 $300,000 Car et removal $100,000 $100,000 $200,000 1/29/2010 Orange County Schools Capital Investment Plan 2009-2019 29 Project Title Year 1 2010-11 Year 2 2011 12 Year 3 2012-13 Year 4 2013-14 Year 5 2014-15 Year 6 2015-16 Year 7 2016-17 Year 8 2017-18 Year 9 2018-19 Year 10 2019-20 PROJECT TOTAL wa s Elementa School Perimeter fencing $30,000 $30,000 H draulic lift $12,000 $12,000 GREEN building enhancements $150,000 $150,000 $300,000 A.L. Stanback Middle School Girls softball field construction $140,000 $140,000 HVAC chilled water line insulation $40,000 $40,000 Science lab renovations $300,000 $300,000 Gym bleachers motorization $25,000 $25,000 Track resurfacing $45,000 $45,000 Football field irri ation system $30,000 $30,000 Erosion control $15,000 $15,000 H draulic lift $12,000 $12,000 G m floor reconditioning $5,000 $5,000 Classroom renovations (6th grade wing) $300,000 $300,000 $600,000 GREEN buildin enhancements $150,000 $150,000 $300,000 Cafeteria renovation $200,000 $200,000 C.W. Stanford Middle School Air handler re lacement $600,000 $600,000 Parking lot and driveway resurfacin $40,000 $40,000 Roof re lacement Sections 36 & 1A) $300,000 $300,000 oof re lacement Sections 3A $225,000 $225,000 oaf re lacement (Sections 1B & 1C $375,000 $375,000 Replace exterior doors (100,200 bldg. & cafeteria) $250,000 $250,000 440M Regulation track $400,000 $400,000 Science lab renovations $200,000 $200,000 Re lace intercom s stem $65,000 $65,000 Hydraulic lift $12,000 $12,000 G m floor reconditionin $5,000 $5,000 GREEN building enhancements $150,000 $150,000 $300,000 Auditorium construction $3,800,000 $3,800,000 1/29/2010 Orange County Schools Capital Investment Plan 2009-2019 30 Project Title Year 1 2010-11 Year 2 2011 12 Year 3 2012-13 Year 4 2013-14 Year 5 2014-15 Year 6 2015-16 Year 7 2016-17 Year 8 .2017-18 Year 9 2018-19 Year 10 2019-20 PROJECT TOTAL vell Hill Middle School Additional securi cameras $16,000 $16,000 Fla oles athletic fields $3,000 $3,000 H draulic lift $12,000 $12,000 Concession stand $15,000 $15,000 Locker room benches $1,500 $1,500 Ticket booth $500 $500 Cedar Rid a Hi h School Install hallway security gates $50,000 $50,000 Lantlsca ing and erosion control $15,000 $15,000 Security lighting (student parking lot and stadium entrance $15,000 $15,000 Locker room paintin $3,000 $3,000 H draulic lift $12,000 $12,000 Dust removal s stem (Wood Shop) $15,000 $15,000 Auxilia ~ mnasium $10,175,000 . $10,175,000 Soccer and lacrosse field $200,000 $200,000 Field house $2,200,000 $2,200,000 Rubberized track surface $60,000 $60,000 Tennis courts refurbishment $10,000 $10,000 G m floor reconditioning $5,000 $5,000 Classroom win addition $13,860,000 $13,860,000 Additional chiller 2 each) $400,000 $400,000 GREEN builtlin enhancements $150,000 $150,000 $300,000 1/29/2010 Orange County Schools Capital Investment Plan 2009-2019 31 Project Title Year 1 2010-11 Year 2 2011 12 Year 3 2012-13 Year 4 2013-14 Year 5 2014-15 Year 6 2015-16 Year 7 2016-17 Year 8 2017-18 Year 9 2018-19 Year 10 2019-20 PROJECT TOTAL n e High School GREEN buildin enhancements $150,000 $150,000 $300,000 Chemical stockroom renovation $75,000 $75,000 Concrete re airs and sidewalk extensions $30,000 $30,000 Electrical u races $30,000 $30,000 Replace fencin at FB ractice field $20,000 $20,000 Resurface all arkin areas and roads $300,000 $300,000 Replace fencing near FB stadium entrance $10,000 $10,000 Patio renovation $100,000 $100,000 Securi li hting Cam us-wide $30,000 $30,000 Lobb renovation $160,000 $160,000 Renovate third-wing basement $10,000 $10,000 Roof re lacement Sections E, I, & G $250,000 $250,000 Re lace lama ed ceilin tiles $25,000 $25,000 Re lace cafeteria doors $12,000 $12,000 H draulic lift $12,000 $12,000 Soccer field ress box $20,000 $20,000 Re lace lockers in Field House $10,000 ~ $10,000 Softball field irrigation s stem $5,000 $5,000 Wrestling mat replacement $8,000 $8,000 Gym floor recontlitionin $5,000 $5,000 Replace concession stand HVAC units $2,000 $2,000 Ex and practice field band $50,000 $50,000 Renovate athletic office spaces $20,000 $20,000 e lace PAs stem Main m $20,000 $20,000 leacher Renovation and Motorization $100,000 Partnership Academy Alternative School School mar uee $5,000 $5,000 GREEN building enhancements $100,000 $100,000 $200,000 1/29/2010 Orange County Schools Capital Investment Plan 2009-2019 32 Project Title Year 1 2010-11 Year 2 2011- 12 Year 3 2012-13 Year 4 2013-14 Year 5 2014-15 Year 6 2015-16 Year 7 2016-17 ,Year 8 2017-18 Year 9 2018-19 Year 10 2019-20 PROJECT TOTAL s ortation De artment Bus securi cameras $90,000 $90,000 Re lace erimeter fencin $20,000 $20,000 Regradellevel bus arkin lot $30,000 $30,000 Renovate shop $225,000 $225,000 Newactivi buses 4each $77,000 $77,000 $77,000 $77,000 $308,000 GREEN building enhancements $150,000 $150,000 $300,000 District Asbestosabatemente ui ment $1,000 $1,000 Turf maintenance a ui ment $25,000 $25,000 Duct cleanin $80,000 $80,000 Dry-write board re lacement $10,000 $10,000 Fire extin uishers $8,000 $8,000 Emer enc li hts $10,000 $10,000 Weed control s stem $40,000 $40,000 25kw enerators 4 each) $27,000 $27,000 $27,000 $27,000 $108,000 Pla round a ui ment replacement $100,000 $100,000 Directional signs $10,000 $10,000 $10,000 $30,000 Door locks $23,700 $23,700 ADA re uirements $100,000 $100,000 $100,000 $100,000 $100,000 $500,000 Confined space detector $5,500 $5,500 Sound level monitor $1,200 $1,200 IAQ monitor $4,000 $4,000 old monitor $6,000 $6,000 VAC com uters $10,000 $10,000 ToolslEqui ment. $15,000 $15,000 $30,000 Emer enc mobile stora a unit $10,000 $10,000 Hydraulic lift $13,000 $13,000 Custodial equipment $25,000 $25,000 $25,000 $75,000 Vehicle Safety Partitions (10 each $5,000 $5,000 1/29/2010 Oranga County Schools Capital Investment Plan 2009-2019 33 Project Title Year 1 2010-11 Year 2 2011 12 Year 3 2012-13 Year 4 2013-14 Year 5 2014-15 Year 6 2015-16 Year 7 2016-17 Year 8 2017-18 Year 9 2018-19 Year 10 2019-20 PROJECT TOTAL rict, continued Walkie Talkies $3,000 $3,000 Vehicle Re lacement $30,000 $30,000 Vehicle Re lacement $27,000 $27,000 Vehicle Re lacement $25,000 $25,000 Re-ke Central Office building $7,500 $7,500 Emer enc electrical hookup for Central Office $3,000 $3,000 Technology u rades $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 $8,000,000 $0 Annual grade-level furniture replacement (district-wide $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $1;500,000 Science infrastructure u rades $250,000 $250,000 TOTAL EXPENDITURES $8,176,500 $4,218,500 $3,217,900 $12,137,000 $4,445,000 $16,403,000 $1,735,000 $1,462,000 $1,810,000 $1,710,000 $55,214,900 Pa -As-You-Go Funds $1,822,549 $1,991,394 $1,945,846 $1,973,960 $1,996,974 $2,154,563 $2,174,484 $2,232,225 $2,200,704 $2,250,051 $20,742,750 Lotte Proceeds $839,000 $839,000 $839,000 $839,000 $839,000 $839,000 $839,000 $839,000 $839,000 $839,000 $8,390,000 TOTAL CIP FUNDING $2,661549 $2,830,394. $2 784 846 $2 812,960 $2,835,974 $2,993 563 $3,013,484 $3,071 225 $3,039 704 $3,089 051 $29,132,750 TOTAL UNFUNDED PROJECTS $5,514,951 $1,388,106 $433,054 $9,324,040 $1,609,026 $13,409,437 $1,278,484 $1,609,225 $1,229,704 $1,379,051 $26,182,150 CJ 1/29/2010 CHAPEL HILL - CRRRBORO CITY SCHOOLS CAPITAL INVESTMENTS PLAN 2010 -2020 Prior Year 1 Year 2 FUNDED PROJECTS of 3 Year3 Year4 Years Year6 Year? YearB Year9 Year 10 en,~_,e ~n,e_,s ~m s_~R 9MR-17 9017-18 2018-19 2019-20 TEN YEAR PROJECT TOTAL TOTAL PROJEGTTITLE Teb~\'J c`""-" - '" -- - - -- - - ADA Requirements 398,450 25,000 75,000 75,000 60,000 75,000 75,000 75,000 75,000 100,000 100,000 735,000 1,133,450 AbatementProJects Estes Hills: Floor Tile Replacement 575,000 33,000 70,000 25,000 50,000 75,000 75,000 100,000 100,000 100,000 100,000 695,000 33,000 1,270,000 33,000 Phillips: Remove Asbestos Floor The CHHS: Remove asbestos Floor Tile 265,000 325,000 265,000 325,000 265,000 325,000 Athletic Facilities 2,422,387 - 2,422,387 Scroggs: Athletic Field 150,000 150,000 150,000 Culbreth: Gym BleacherslVUood Floor 100,000 100,000 100,000 Phillips: Gym BleacherslWood Floor 100,000 100,000 100,000 CHHS: Gym Bleachers -Wood Floor 295,000 295,000 295,000 CHHS: StadiumlSoccer Field Lighting 160,000 125,000 285,000 265,000 CHHS: Athletic Fields 150,000 150,000 150,000 ECHHS: Athletic FleldslTrack 150,000 150,000 150,000 ClassroomlBuilding Improvements 1,045,000 - 1,045,000 Carcboro Elementary Classroom CaseworkJBathrooms 75,000 220,000 295,000 285,000 Estes Hilis: Classroom CasewarklBathrooms 50,000 100,000 150,000 150,000 Ephesus: Old Wing BathroomslClassroom Casework 50,000 75,000 125,000 125,000 FG Graham: Intermediate Bld Casework/Bathrooms 100,000 175,000 275,000 275,000 Seawell: PODS Casework/Bathrooms 80,000 125,000 205,000 205,000 CHHS: Bathroom Fixtures and Hardware 150,000 50,000 200,000 200,000 Culbreth: Locker Room Bathrooms 24,000 24,000 24,000 Philips: Staff 8athroomslLower Level Rooms 48,222 50,973 99,195 99,195 Phillips: Science Classrooms Casework 120,000 120,000 120,000 DoorslHardware/Canopies 599,154 35,000 50,000 125,000 75,000 285,000 884,154 McDEIm: Canopy at Klsa and Go 145,000 145,000 145,000 Seawell: Ex and canopies 125,000 125,000 125,000 FPG: Canopy at Klss and Go 75,000 75,000 T5,000 Ephesus: Canopy at Kiss and Go 75,000 75,000 75,000 Scrogs: Canopy at Mobile Units 40,000 40,000 40,000 Electrical Systems 395,000 - 395,000 All Schools: Increase Electrical Distribution 125,000 75,000 75,000 80,000 50,000 50,000 100,000 150,000 150,000 50,000 905,000 905,000 Energy Efflclency/LlghUng Improvemnets 251,316 - 251,316 CHHS: Lighting Upgrades/Efficiency 50,000 50,000 50,000 FPG: Lighting Upgrades/Efficiency 185,000 185,000 185,000 Ephesus: Lighting Upgrades/Efflciency 150,000 150,000 150,000 Culbreth: Lighting UpgradeslEfBciency Phillips: Lighting Upgrades/EfBclency 175,000 175,000 175,000 175,000 175,000 176,000 FlrelSafetylSecuritySystems Ephesus:lntercom S stem Lincoln Center: Fire System/lnterwm 1,791,559 25,000 40,000 53,179 150,000 100,000 150,000 453,179 25,000 40,000 2,244,738 25,000 40,000 FPG: Intercom ~ 30,000 30,000 00 CHHS: Security Cameras-C and D Buildings 20,000 20,000 20,000 FUNDED PROJECTS op 3 of 3 Prior Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 6 Year 9 Year 10 TEN YEAR PROJECT PROJECT TITLE Year(sl 2010-11 9ott_~2 oni~_~s ~nw_~e on,~_,c n,c , -- - -- - - -- - - <vir-io Lu io-io LV7y-LU IVIAL IUTAL Technology: Total of Listed Categories Networklnfrastructure Enfe dseSothvare 15,327,502 1,831,000 650,500 180,000 2,041,097 734,298 198,000 2,068,143 747,821 198,000 2,099,180 756,434 202,950 2,134,440 766,985 208,024 2,170,582 777,800 213,224 2,207,628 788,885 218,555 2,245,600 800,249 224,019 2,284,521 811,895 229,619 2,324,415 823,833 235,360 21,406,606 7,658,701 2,107,751 36,734,108 7,868,701 2,!07,76! Instructional Computers 8 Technology 915, 500 1, 020, 549 1, 034,072 1,049, 590 1, 067, 220 1, 085,291 1,103, 814 1,122, 800 1,142, 261 1,162, 208 10, 703, 303 10,703,303 AdministrativeComputers 55,000 57,750 57,750 59,194 60,674 62,190 63,745 65,339 66,972 68,647 617,261 817,261 NetworkPrinfers 20,000 20,500 20,500 21,013 21,538 22,076 22,628 23,194 23,774 24,368 219,590 2!9,590 Community Access Technology 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 100,000 !00,000 Sub-Total 4,042,222 4,082,193 4,136,286 4,198,359 4,268,880 4,341,164 4,415,255 4,491,199 4,569,041 4,648,829 43,193,428 TOTAL EXPENDITURES -10 YEAR CIP 4,042,222 4,082,193 4,136,286 4,198,359 4,268,680 4,341,164 4,415,255 4,491,199 4,569,041 4,648,829 43,193,428 NEW SCHOOLS and FACILITIES Carrboro High School: Cultural Arts Addition 4,107,595 -approval of QSCB loan expected In April 2010 CHAPEL HILL - CARRBORO CITY SCHOOLS CAPITAL INVESTMENTS PLAN 2010 - 2020 2010.20 CIP FUNDING Prior Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Ye 8 Y 9 Y ar ear ear 10 TEN YEAR PROJECT Year(s) 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 TOTAL TOTAL CIP FUNDING SOURCES: Long Range Pay-As-You-Go Funds -Projects 2,664,709 2,704,680 2,758,773 2,820,846 2,891,367 2,963,651 3,037,742 3,113,686 3,191,526 3,271,316 29,418,298 29,418,298 Loftery Proceeds 1,377,513 1,377,513 1,377,513 1,377,513 1,377,513 1,377,513 1,377,513 1,377,513 1,377,513 1,377,513 12,397,617 12,397,617 TOTAL CIP FUNDING 4,042,222 4,082,193 4,136,286 4,198,359 4,268,880 4,341,164 4,415,255 4,491,199 4,569,041 4,648,629 43,193,428 W • • • ~ CHAPEL HILL ~ORO CITY SCHOOLS • CAPITAL INVESTMENTS PLAN 2010 - 2020 UNFUNDED NEW SCHOOLS and FACILITIES oa 1 of 1 UNFUNDED -New Schools and Faciiftles Prior Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Vaarrsl 9n~n_~~ 9M 1_19 9M 7_w 9M1 ae once ~e PROJECTS: Culbreth Mlddle School: Science Labs McDougle Middle School: Auditorium Mlddle School #5 Carrboro Hlgh Sehool: Classroom Additions Auxlliarv Gvm. Wresllina Rm TOTAL UNFUNDED PROJECTS Notes: Opening Dales are based on November 2009 SAPFO enrollment and projections. Carrboro High School Cultural Arts Addition is included with the Funded projects. • Year 7 Year 8 Year 9 Year 10 TEN YEAR PROJECT OPENS: 2012-13 974,000 5,159,602 18,451,022 2,980,578 26,591,202 27,585,202 2015-16 79,101 452,634 2,146,627 348,832 3,027,194 3,027,194 2015-18 111,872 639,012 3,041,914 468,260 4,260,858 4,260,858 2016-17 1,223,773 7,002,702 28,444,749 5,019,180 41,690,404 41,690,404 2019-20 150,000 3,200,267 13,373,941 2,571,095 19,295,303 19,295,303 974,000 5,159,602 18,451,022 2,980,5711 1,414,546 8,094,346 33,633,290 5,988,272 3,200,287 13,373,841 2,571,095 94,864,961 95,838,961 W • • • County Capital Projects Fiscal Years 2010-16 Project Name ABC Project Starting Date 10/1/2010 Functional Service Area Public Safety Completion Date 8/31/2012 Department Sheriff Current Prior Years Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Project Budget Funding 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Total Appropriation Land/Building 10,000,000 10,000,000 Construction/Repairs/Renovations Equipment/Furnishings Total Project Budget - 10,000,000 - - - - 10,000,000 General Fund Related Operating Costs Personnel Services Operations New Debt Service Total Operating Costs Revenues/Funding Source 125, 000 128,125 131, 328 131, 328 134, 611 650, 393 50,000 52,500 55,000 57,500 57,500 272,500 900,000 900,000 900,000 900,000 900,000 4,500,000 1,075,000 1,080,625 1,086,328 1,088,828 1,092,111 5,422.893 General Fund 1,000,000 County Capital Reserve 1,000,000 Debt Financing 8,000,000 Total 10,000,000 1,075, 000 1, 080,625 1, 086,328 1,088, 828 1, 092,111 6,422,893 328 8, 000, 000 111 15,422,893 Project Description/Justification Project description and justification. Project description and justification Project description and justification. Project description and justification Project description and justification. Project description and justification Project description and justification. Project description and justification Project description and justification. Project description and justification Project description and justification. Project description and justification Project description and justification. Project description and justification Project description and justification. Project description and justification Project description and justification Project description and justification. Project description and justification Project description and justification. Project description and justification Project w Active County Capital Projects 30~Jun-10 Estimated Revenues Revenue Expenditures Available Percent Completion Project Budget 6/30/2010 Shortfall 6/30/2010 Funds Complete Date Emergency Management Center 325,500 142,215 183,285 142,215 - 100% 6/30/2010 Jail Expansion 1,375,000 978,935 396,065 148,468 830,467 N/A Justice Facility 12,116,112 12,116,112 - 12,277,328 (161,216) 100% 6/30/2010 New Courthouse 357,961 308,000 49,961 218,979 89,021 Northern Human Services Ctr 714,545 714,546 (1) 370,085 344,461 SeniorCtrCentralOrange 6,460,533 6,460,533 - 6,177,344 283,189 Over 40 Projects are still active as of 6/30/10 Total County Capital Projects 21, 349,651 20, 720, 341 • 629,310 19, 334, 419 1, 385, 923 w 00 • • Library Older School County Capital Reserve Fund Facilities Facilities Undesignated Total Revenues Board Designated Sale of Fixed Assets Library Facilities 60% Transfer from County Capital Projects Library Facilities Undesignated Total Revenues County Capital Reserve Fund Balance July 1, 2009 Fund Balance June 30, 2010 Capital Reserve Funds Balances 30-Jun-10 164,670 50,000 50, 000 150,000 150,000 214,670 150,000 364,670 0 214,670 150,000 364,670 164,670 0 School Capital Reserve Fund Revenues Undesignated Investment Earnings 19 19 Board Designated Sale of Fixed Assets Older School Facilities 40% Total Revenues School Capital Reserve Fund Balance July 1, 2009 Fund Balance June 30, 2010 109, 780 109, 780 109,780 19 109,799 0 1, 882 1,882 109, 780 1,901 111,681 • w c~ County Debt Service and Debt Capacity Fiscal Years 2010-16 Current Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Debt Service 2010-11 2011-12 2012-13 44 2014-15 2015-16 Total Annual Debt Service 28,632,445 26,060,464 23,668,072 23,119,283 22,139,814 21,103,221 General Fund Budget 175,313,920 Annual Growth Projections 1.00% 1.00% 1.50% 1.50% 2.00% Projected General Fund Budget 177,067,059 178,837,730 181,520,296 184,243,100 187,927,962 Annual Debf Service as a % of General Fund 16.33% 14.72% 13.23% 12.74% 12.02% 11.23% Debt Service Policy 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% Future Debt Service Capacity -1.33% 0.28% 1.77% 2.26% 2.98% 3.77% Projected Debt Financing County Renovations & Equipment 2040-2011 - $2,300,000 506,000 496,800 487,600 478,400 469,200 Qualified School Construction Bonds 2010-2011 - $4,000,000 270,000 270,000. 270,000 270,000 270,000 Schools Facilities 2011 - 2012 - $30,000,000 2,730,000 2,730,000 2,730,000 2,730,000 New Debt Service 776,000 3,496,800 3,487,600 3,478,400 3,469,200 Projected Annual Debt Service 28,632,445 26,836,464 27,164,872 26,606,883 25,618,214 24,572,421 Projected Annual Debt Service As A Percent of the General Fund Budget Available Annual Debt Service Capacity Based on the 15% Debt Service Policy 16.33% 15.16% 15.19% 14.66% 13.90% 13.08% (2,335,357) (276,405) (339,213) 621,161 2,018,251 3,616,773 '' $1,000,000 of annual debt service = $ 11,000,000 of debt issued at current interest rates for 15 years • • ~ . •