HomeMy WebLinkAboutAgenda - 06-14-2011 - 1ORANGE COUNTY
• BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 14, 2011
Action Agenda
Item No. 1
SUBJECT: Accept and Approve the Five Year Capital Investment Plan and Adopt the
capital project budget of $2,857,000 for the FY 2011/12 County Capital
Projects Fund.
DEPARTMENT: Financial Services PUBLIC HEARING: (Y/N) No
ATTACHMENT(S): INFORMATION CONTACT:
Attachment 1: Recommended Projects Clarence Grier, (919) 245-2453
CIP FY 2011-12 Michael Talbert, (919) 245-2153
Attachment 2: CIP Replacement Pages 1
& 53
PURPOSE: To accept and approve the 2011-16 Orange County Five Year Capital Investment
Plan and Adopt the capital project budget of $2,857,000 for FY 2011-12 County Capital
. Projects Fund.
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 into 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.
The BOCC has approved format changes to the County's CIP that make the plan a
comprehensive county-wide plan. Outlined below are format changes approved by the Board:
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 March.
3. Combining County Capital, Proprietary Funds, 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.
2
CURRENT SITUTATION: The economic conditions in North Carolina continue to improve but
revenue-,growth remains lackluster. Orange County Property Tax values are growing at an
annual rate of 1 % - 1.5% and Sales Tax revenues have recovered from the lows experienced
in 2008 ;and are again growing at an annual rate of 3.5%. The_ State Budget has been approved
by both" the House and Senate and is awaiting the Governors signature.
The CIP has been prepared anticipating slow economic growth and recognizing the impact of
the great recession on local, state and federal budgets. Projects in the CIP include: County
Facilities, Water & Sewer Utilities, Parks & Open Space, Solid Waste and Schools. Several
recommended projects have been moved further out in the five. year plan, in both recognition of
the County's relative high debt service, and the impact of a slowly recovering economy. The
Board will have to consider all of the available financing options for capital projects, including a
possible General Obligation Bond referendum for Public Improvements.
The 20011/16 CIP- provides a realistic look into the next five years. The anticipated minimal
.growth in County revenues is matched to fund capital projects. As of June 30, 2011, the
County's General Fund debt service as a percent of the General Fund Budget is at 15.31 %, still
above the Boards Debt Management Policy goal of 15%. The CIP as presented will reduce the
General Fund's Debt Service, as a percent of the General Fund, to below 14% by June 30,
2012.
Attachment 1 list projects recommended to be funded in the fiscal 2011-12 Annual Operating
Budget. All projects were included in the Managers Recommended CIP which the Board
reviewed on April 7, 2011. During to process of completing and balancing the Annual Operating
Budget, revenue sources originally dedicated to the CIP were redirected to the Annual
Operating Budget. Therefore, the CIP includes debt financing of $1,368,000 for Fiscal 2011-12.
The four projects, that will utilize debt financing for funding are below:
1. Information Technology $500 000
2. Southwest Branch Library 436,000
3. Southern Human Services Center ~ 280,000
4. 112 N. Churton -Building Improvements 152,000
Total
$1,368,000
Attached are replacement pages 1 and 53 that update the Schools Capital Projects Summary
information. The State Budget, approved by both the House and Senate, includes $100 million
dollars of Lottery Proceeds. These funds will be distributed on the basis of Average Daily
Membership (ADM). Also, pay-as-you-go capital. funding has been updated to reflect the
amounts recommended in the 2011-12 Annual Budget
3
FINANCIAL IMPACT: A capital project budget of $2,857,000 for FY 2011-12 for the County
Capital Projects Fund and the debt financing for $1,368,000 projects outlined in the
• background.
RECOMMENDATION(S): The Manager recommends that the Board accept and approve the
2011-16 Orange County Five Year Capital Investment Plan and adopt the capital project budget
of $2,857,000 for FY 2011-12 County Capital Projects Fund.
•
•
County Capital Recommended Projects
Capital Investment Plan FY 2011-12
•
Attachment 1
The following County Capital projects an: recommended for fiscal year 2011-12. The Board will consider
approval of the Five Year 2011-16 Capital Investment Plan separately.
Funding Sources Recommended
Funding
FY 2011-12
Transfer from General Fund $ 181,106
Transfer from County Capital Projects ~ $ 278,325
Transfer from County Capital Reserve $ 284,894
County Capital Fund Balance $ 137,500
Register of Deeds Fees $ 150,000
Available Project Balances $ 444,675
Debt Financing County Capital $ 1,368,000
Contribution from Durham & Chapel Hill $ 12,500
Total Fundin Sources $ 2,857,000
Projects
' Recommended
Projects
FY 2011-12
Information Technolog $ 500,000
Affordable Housing $ 170,000
Register of Deeds Automation $ 150,000
Roofing Projects ~ $ 55,000
HVAC Geothermal -Link Government Services Center $ 618,000
Southwest Branch Libra $ 650,000
Southern Human Services Center $ 280,000
112 N. Churton -Buildin Im rovements $ 152,000
129 King Street -Buildin Im rovements $ 145,000
Lake Orange Capital Maintenance $ 112,000
New Ho a Preserve /Hollow Rock Access Area $ 25,000
Total Pro'ects $ 2,857,000
•
Attachment 2
Please replace pages 1 & 53 in your
blue Capital Investment Plan notebook
C,
• RECOMMENDED Orange Coun~pital Investment Plan
Fiscal Years 2011-16
Current Year 1 Year 2 Year 3 Year 4 Year 5 Five Year 6
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Year to
2010-11 2011-12 2012-13 2013-14. 2014-15 2015-16 Total Year 10
County Capital Projects
Proprietary Capital Projects (1)
Water & Sewer Utilities
Solid Waste
Sportsplex
Schools Capital Projects
Chapel Hill Carrboro City Schools
Orange County Schools
Total
Revenues/Funding Source
Available Project Balances
Transfer from Capital Reserve .
Transfer from General Fund -County
Transfer from General Fund -Schools
Transfer from other Capital Projects
County Capital Fund Balance
Solid Waste Fund Balance
Sportsplex Fund Balance
Recycling - 3R Fee
Lottery Proceeds
Register of Deeds Fees
Grants & Contributions
Financing:
Debt Financing -County Capital
Debt Financing - W & S Utilities
Debt Financing -Solid Waste
Debt Financing -Sportsplex
Debt Financing -Schools Capital
Total
1,700,000 ~ 2,745,000 4,417,000 1,595,000 .4,508,000 24,487,000 37,752,000 ~ 46,450,000
259,900 5,164,101 3,854,300 340,000 4,400,000 2,000,000 15,758,401 175,000
2,365,732 1,931,001 1,943,605 4,630,704 2,846,120 13,717,162 .7,902,771
373,000 435,000 1,267,000 515,000 250,000 2,840,000
6,956,647 2,923,539 23,562,653 2,472,129 2,496,972 2,522,188 33,977,481 63,016,940
10,144,500 1,527,703 1,543,023 1,558,573 11,749,357 1,590,377 17,969,033 45,339,885
1,700,000
3,319,196
259,900
1,669,000
444,675
284,894
181,106
2,628,969
637,026
137,500
439,662
373,000
125,000
1,322,273
150,000
1,360,900
484,559
1,258,742 1,205,000 1,191,000 1,050,000
2,668,402 2,708,428 2,749,056 2,790,292
654,888 187,155
435,000 267,000
850,857 579,721
1,322,273 1,322,273
75,000 75,000
40,000
3,816,014 2,031,002
515,000 250,000
534,576 609,266
1,322,273 1,322,273
80,000 80,000
25,000 450,000
1,368,000 3,032,000 655,000 3,212,000 22,907,000
3,345,000 3,421,000 4,400,000 2,000,000
1,801,070 385,256 1,176,730 280,114 205,852
- - 1,000,000 - -
12,112,951 500,000 21,115,000 - 10,175,000 -
4,885,848 7,450,000
13,545,147 13,951,458
637,026
7,128,721 4,159,119
1,840,000
2,699,420 3,743,652
6,611,365 6,611,367
460,000
1,875,900 750,000
31,174,000 38,250,000
13,166,000 175,000
1,000,000
31,790,000 87,794,000
19,061,047 ~ 15,099,075 35,742,977 9,176,307 28,300,033 33,695,685 122,014,077 ~ 162,884,596
(1) Orange County has established three Proprietary Funds used to account for services provided to customers. All three Funds are established as enterprise funds and
fees are imposed on customers to pay for the full cost of providing the services. The Water & Sewer Utilities Fund accounts for revenues and expenses related to the
provision of sewer service. The Solid Waste Fund accounts for the revenues and expenses related to the provision of solid waste disposal and recycling activities. The
Sportsplex Fund accounts for the revenues and expenses related to the services provided at the Triangle Sportsplex. All three funds are included as supplemental
information and are not funded by the General Fund.
• • .
RECOMMENDED Schools Capital Projects Summary
Fiscal Years 2010-16
Current Year 1 Year 2 Year 3 Year 4 Year 5 Five Year 6
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Year to
Projects by School System 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Total Year 10
Chapel Hill Carrboro City Schools -
Long Range Capital
Pay-As-You-Go Funds 1,496,647 1,607,615 1,631,729 1,656,205 1,681,048 1,706,264 8,282,861 8,531,320
Lottery Proceeds 830,000 815,924 815,924 815,924 815,924 815,924 4,079,620 4,079,620
QSCB 4,630,000
Elementary# 71 500,000 21,115,000 21,615,000 50,406,000
Total 6,956,647 2,923,539 23,562,653 2,472,129 2,496,972 2,522,188 33,977,481 63,016,940
Orange County Schools
Long Range Capital
Pay-As-You-Go Funds 993,569 1,021,354 1,036,674 1,052,224 1,068,008 1,084,028 5,262,288 5,420,140
Lottery Proceeds 879,608 506,349 506,349 506,349 506,349 506,349 2,531,745 2,531,745
OSCB 8,71,323
CRHSAuxiliaryGym 10,175,000 10,175,000 37,388,000
Total 10,144,500 1,527,703 1,543,023 1,558,573 11,749,357 1,590,377 17,969,033 45,339,885
Total all Schools 17,101,147 4,451,242 25,105,676 4,030,702 14,246,329 4,112,565 51.946.514 108.356.825
Revenues/Funding Source
General Fund (Pay-As-You-Go) 2,590,117 2,628,969 2,668,403 2,708,429 2,749,056 2,790,292 13,545,149 13,951,460
Lottery Proceeds (1) 1,709,608 1,322,273 1,322,273 1,322,273 1,322,273 1,322,273 6,611,365 6,611,365
Debt Financing 12,901,323 500,000 21,115,000 10,175,000 31,790,000 87,794,000
17,201,048 4,451,242 25,105,676 4,030,702 14,246,329 4,112,565 51,946,514 108,356,825
"The article 46 one quarter cent sales tax, if approved, and 50% goes to Schools, could add $1,250,000 of additional revenues for Schools Capital
(1) $100 million dollars of Lottery Proceeds are included the State's proposed 2011/12 budget. The funds will be distributed on the basis of each school
systems Average Daily Membership. The CIP assumes that this amount will remain constant for the next five fiscal years.
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