HomeMy WebLinkAboutAgenda - 06-21-2011 - 8aORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 21, 2011
Action Agenda
Item No. 8 ~ q
SUBJECT: Approve the FY2011-16 Orange County Capital Investment Plan
DEPARTMENT: Financial Services PUBLIC HEARING: (Y/N) No
ATTACHMENT(S):
Attachment 1: County Capital
Recommended Projects
Attachment 2: Manager's Recommended
FY2011-16 Capital
Investment Plan
(Previously Provided
Under Separate Cover -
5/17/11)
INFORMATION CONTACT:
Clarence Grier, (919) 245-2453
Michael Talbert, (919) 245 2153
PURPOSE: To approve the FY2011-16 Orange County Capital Investment Plan.
BACKGROUND: For over 20 years, the County has produced a Capital Improvement Plan
(CIP) 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 continued to evolve over the years to also include the Capital Funding Policy and Debt
Management Policy. The FY2008-18 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 $oard 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,
but the ultimate impact of the budget cuts has not yet been realized.
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 FY2011-16 CIP provides a realistic look into the next five years. The plan anticipates
minimal growth in County revs-Hues 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 Board's 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.
On June 14, 2011 the Board reviewed the Capital Investment Plan as presented on May 17,
2011. The Board deleted $152,000 for building improvements at 112 N. Churton St from the
plan and added $75,000 for the Loan Pool Reserve Project back to the Plan. Attachment 1 is a
list of the projects approved by the Board at the work session on June 14, 2011. The new total
for the County Capital Projects Funds is $2,780,000 which includes debt financing of
$1,216,000 for FY 2011-12. The following three projects are planned to be financed:
1. Information Technology $500,000
2. South-west Branch Library 436,000
3. Southern Human Services Center 280,000
Total
$1,216,000
FINANCIAL IMPACT: The County Capital Project Fund appropriation of $2,780,000 is included
in the FY2011-12 County Budget Ordinance, and debt financing for $1,216,000 for projects
outlined in the Background above is included.
RECOMMENDATION(S): The Manager recommends that the Board approve the FY2011-16
Orange County Capital Investment Plan. The Approved CIP will be included in the Approved
FY2011-12 Annual Operating Budget.
County Capital Recommended Projects
Capital Investment Plan FY 201-1-12
Attachment 1
The following County Capital projects are recommended for fiscal year 2011-12. The Board wil! consider
approval of the Five Year 2011-16 Capital Investment Plan separately.
Funding Sources Recommended
Funding
FY 2011-12
Transfer from General Fund $ 256,106
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 $ 1,216,000
Contribution from Durham & Chapel H-ill $ ~ 12,500
Total Fundin Sources $ 2,780,000
Projects Recommended
Projects
FY 2011-12
Information Technolo $ 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 Library $ 650,000
Southern Human Services Center $ 280,000
129 Kin Street - Buildin Improvements $ 145,000
Lake Orange Ca ital Maintenance $ 112,000
New Hope Preserve /Hollow Rock Access Area $ 25,000
Loan Pool Reserve $ 75,000
Total Pro'ects $ 2,780,000