Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
Agenda - 12-07-1996 - 1
ORANGE COUNTY HILLSBOROUGH NORTH.CAROLINA X61 �l ce eW,a1i 476:9 MEMORANDUM TO: Orange County Board of Commiss'oners FROM: John Link, County Manager DATE: December 6, 1996 RE: Annual Planning Retreat Materials In preparation for tomorrow's retreat, we have compiled several sets of information that I hope you will find helpful. The first set is related to the 8:30 session on the County's fiscal outlook. The other two sets are related to items carried forward from the Board's December 2 meeting to the retreat for the scheduled 1:00 discussion about school funding . FISCAL OUTLOOK Sally Kost has prepared i >I qv rheas slide � cli t�vrll briefly highlighf''County's fiscal outlook, including revencen �ture,aid d� Winds the will reutew ti 1e tomorrow morning and try to respond to your qu �tc�tis A copy cJf e b yerliead is mcludd in tl ; rket. Attachment 1 -FiscalafikCvetkreads CAPITAL NEEDS A 3 ,fit R f``(� A�fXT FF� ; ' . -r _ 4•. ..., _._.., _. ..... .: .- Yi}< kits- ....__. Commissioner Gordon made several suggestions about the timetable and charge for the Capital Needs Advisory Committee that will be appointed to review County and school capital needs prior to the planned November 1997 bond referendum. I believe her refinements are constructive, and I am conveying them to you for your review and discussion tomorrow. Attachment 2 - Commissioner Gordon's Refinements to Charge to Capital Needs Advisory Committee CAPITAL FUNDDIG POLICY At the October 15 meeting, the Board approved Option 5B (Option 5A with changes) as the structure for funding the new school needs identified in the 1996-2006 Capital Improvements Plan (see item 9A in the attached minutes of the October 15 meeting). Staff was directed to come back to the Board with a written summation of the funding policies embodied in Option 5B. Staff prepared a proposed new capital funding policy that reflected the structure of Option 5B, and cited the changes between the old and new capital funding policies. The Board discussed the revised funding policy at its November 19 and December 2 meetings, and agreed to continue the discussion to tomorrow's retreat. AREA CODE (919) 732.8181 • 968-4501 • 688-7331 • 227-2031 • FAX (919) 644-3004 1 The process to develop and implement a new capital funding policy has been quite lengthy and complex, and was substantially impacted by last Spring's CIP discussions and the Board's decisions in establishing school construction standards. A summary of the important milestones in the capital funding policy development process is included for your information. This summary of steps indicate how the Board of Commissioners has reached a point of closure on the 1996-2006 CIP for schools with the adoption of the 5B financing option on October 15, and the corresponding policy changes now being considered by the Board. To state an obvious point, the introduction of each new CIP cycle brings an additional year(the new 10th year) and new needs into the equation. External elements may affect future decisions on capital funding - for example,the State Department of Public Instruction is changing the formula for calculating student planning allocations. I would recommend the Board focus its discussion prospectively on the new 1997-2007 CIP cycle and the additional challenges that new cycle may bring -rather than respond retrospectively in terms of making changes to the financial formula for the 1996- 2006 CIP. Attachment 3 - October 15 Meeting Minutes Attachment 4 -Summary of Milestones Related to Capital Funding Policy Attachment 5 - October 15 Agenda Abstract w/Spreadsheets -Long Range School Capital Funding Options Attachment 6-December 2 Agenda Abstract-Revised Capital Funding Policy i Fiscal Out Or County 1997=98 December 7, 1996 General 0 Fund Revenue Miscellaneous 4.8% Property Taxes 64.3% From Other Govts 11.4% I Licenses/Permits&Fee 5.1% I Sales Taxes 14.4% I December 7, 1996 Page 1 : Tax Base. an ax Rate Orange County Tax Base Growth Total Assessed Value ° FY 1974 - FY 1998 $7 $Billions Revaluation $6 _ _. Current Yr _.. $5 Estimated j $4 $1 _. $0 v v v v v 14 oo m m oe ao oe oe oe m oo .o .o .o .o .o .o .o .n W A to 91 V q* lO O A to 91 V O V V V V N N W 00 OO 00 M OD Oo OD 00 OD N� O� V 00 �O O �•+ N W A N1 'D O r+ N W V N a, V W *Revaluation Years **1997 and 1998 are estimated. I December 7, 1996 Page 2 --1Growth in the Tax Base 00% 25.00% 23.20% evaluation 20.00% 18.200/,/ 15.00% 10.00% ll 5.00% 7 F7 -1—.5 0-0% 4.10%_4.10% 2.20% 1/ . % 2.70% 4-30% , 0.00% F 7 77 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 199495 1995-96 1996-97 1997-98 � Growth in the Tax Base 30% 25% 212% M AR, AR, 'M 'M 20% 211, 15% ........... 10% 5% 4.1% 2.9% 0% 1996-97 Budgeted 1997-98 No Revaluation 1996-97 Estimated 1997-98 With Revaluation December 7,1996 Page 3 General Fund Revenue from "Current" Property Taxes j $60.00 Millions I $50.00 _ __ _ _ _ $49.32 !$52.30—� $45.70 I $40.00 ba1.o2 1 $31.67 $36.98 $30.00 $27.42 $29.66 $21.49 $24.56 $20.00 n $10.00 I ' I $0.00 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1996.97 is budgeted amount. 1997-98 estimated based on effective tax rate and collection rate of 98%. mpact of Revaluation on the j General Fund Tax Rate Current Rate Estimated New Rate i i 99.75 Cents/Per Between 82 and 85 Cents/Per j $100 Valuation $100 Valuation December 7, 1996 Page 4 �! One Cent on the General Fund a Property Tax Thousands Estimated $700.0 __... -$612-6201000 Re ad $612.0 $600.0 _ \\\\ Estimated\�\ $508.0 \\ 500.0 $a82 a �\ v _ _. _. $463 5 $44 c $ 2 4 �\\\\�\ \\ 3759 \:- y �� \�,A y\V� $400.0 -$358.4-$368.3 $ y\ ��\ y ��y y y $3332 3318 n `�� o $ Gov �\V � yA� A A �\\A�\ vV� �� �� �� yV$300.0 �\ y\V V .. \y- yv� wvy� `�� �� y\v� \� �\ \ \ \ \\\ ° \� \\ \ \� $200.0 wv\y y V ����� �V\� vy�\\ 100.0 -� � �\� �\ . o\\- " . ��\ \\� \�gem $ \ \ \ \ \ \\ $0.0 1988-891989-901990-91 1991-921992-931993-941994-951995-961996-971997-98 1996.97 is estimated. 1997-98 is based on estimated effective tax rate(after revaluation). S ales-fax i December 7,1996 Page 5 i Sales Tax Revenue for the Ui � I I Two One Half Cent and the 1 Cent Taxes Millions $14.0 01/2 Cents 0 1 Cent $12.0 $12.0 - - $9 8 10.4 II$,ll 111 I.4 Dili�I l $10.0 $7.9 $8.1 $8.2 "Ilil �' I'i II III II $8.0 $74 j � gINNI� �I�I�I I�iHp III �I I�h�, I�III� i� I i�I� !�I�II�INL I'llll� i Itl�i� !;;Dill m l I I I� i I I $6.0 $4.0 $2.0 $0.0 88-89 89-90 90-91 91-92 92-93 93-94 94-95 95-96 96-97 97-98 * Budgeted for 1996-97;Preliminary Estimate 1997-98. I ear to Year Change in Sales Tax Revenue 01 Cent M1/2 Cents % 12.2% 10.9% '9%.... 7.1 7. 00 7.2%7.4% o 0 7 9/o /0 1! 43°!Nlil�il o 6.0% 5.5/o % 3.0 1.5/1.9% 2.0° III j, ;l j I I *Estimated 89-90 90-91 91-92 92-93 93-94 94-95 95-96 96-97* 97-98 December 7,1996 Page 6 Sales Tax Revenue by Quarter Thousands $2,000 112 Cent $1,500 Revenue $1,000 �- 1 Cent Revenue $500 $0 87 88 89 90 91 92 93 94 95 96 97 / One Cent Revenue by Quarter 0 Millions $5.00 $ $4.23 4.42 $4.00 __._ Qtr 4 $3.00 Qtr 3 $2.00 Qtr 2 $1.00 ..... $0.87 Qtr 1 $0.00 � 1994-95 1995-96 1996-97 December 7,1996 Page 7 I i Ot�r r Revenue Sources a i i icenses and Permits and Charges for Services Licenses&Permits IDCharges for Service Millions $5.00 $4.21 _ $4.08... $3.77 $4.00 $3.35 $3.37 II $2 3 $288 ' IPIIIIH�II�. y .1. $3.00 1 III! q tiu 2 ` ' $2.00 a9I�I•I iI 1 5�6 $ $1 73 $1.00 $0.00 I. 'JV I i��I iwI�1 W�1�11�Ii1i�l i4,u:N II I i i 1 88-89 89-90 90-91 91-92 92-93 93-94 94-95 95-96 96-97 97-98 1996-97 is budgeted amount. 1997-98 is based on estimated 3%growth. I December 7,1996 Page 8 ntergovernmental Revenue 'I DSS&Child Support 54% 'I Aging/Transportation 4% All Other 7% Health ABC/Beer&Wine 6% 7% Intangibles 24% I � -- Earnings on Investments 0 General Fund Thousands $1,200 $1,000 _ $991 _$962 ...._.__ $829 $800 731 ..........._ 3 477 $400 _ 34 I $200 $0 88-89 89-90 90-91 91-92 92-93 93-94 94-95 95-96 96-97 1996-97 is Budgeted I December 7,1996 Page 9 i � I ndesignated Fund Balance as a %age of Expenditures J 1 12.00% __....... 10.00% 9.48% 9.91% 9 86% 9.80% 10 40% /i, �% AN. /// /„/ /i///i /i // /� / ORION o / , // / r// r r/ i r /i / /, �/ I 8.00% /���/j �/%// // !i%/ �i/�j i/ %ii �iij/� �/%/ / / ji r/j/% �/ %�//% j/�j //r // �/ r/ o % am/ %j/� r//i j// / /��j j�� / 6.00% / // /j// ice//�/ r�/ /� / /�/ i /�/�i/� i�� //i/j � 4.00% / /o I/ o / / /i�j 2.00/o %./ /\ � // / � �%i' r/ rr/ / /i / / r // -��/�/ ��� //%% '� //r//// r%�/ ME 91-92 90-91 91-92 92-93 93-94 94-95 95-96 i i nterest on General Obligation Bonds has been used to help pay Debt Service Thousands $1000.0 $8717 $8oa:a ......... $800.0 ' \ \\ $700.0 � < $400.0 $200.0 \ \\ \< \, $100.0 \ \\ \\\\ I\\\ , $0.0 1995-96 1996-97 1997-98 1998-99 1 December 7,1996 Page 10 � I , Expenditur Chal es a i i School Enrollment (K-12) 0 Chapel Hill-Carrboro and Orange sty'� unty 1974 - 1996 10,000 Chapel 8,000 _. Hill/Carrboro 6,000 . ge County 4,000 2,000 _ I 0 74 76 78 80 82 84 86 88 90 92 94 96 December 7,1996 Page 11 Growth in Student Average Daily J Membership by District For Past 11 600 Years CHCCS o OCS 500 --472 �j 400 - _ j 376. 345 311 302 - - - 300 - � 255 188 i' % % j 200 155 - - /, // sa - - % 113 �� �i� 100 ,97 ss 10 55 54 45 HI/s/ s 13 21 -5 -100 -57 86 87 88 89 90 91 92 93 94 95 96 — otal Growth in Student Average Daily Membership For Past 11 Years 700 640 �CHCCS ROCS 600 _ ...... 500 486 442 .. \\ 409 400 369-- \�� 300 - -255 \ 210 \�v��\ 188 200 �O VA� �\`v\\`� \vv� 79 113 100 A A q\A \ A -21 -5 -100 L 57 86 87 88 89 90 91 92 93 94 95 96 I I December 7, 1996 Page 12 Student Population Planning Allocations 800 700 667 - . 600 500 501 500 FO-O-C—S 400 \�M\\\o\ \�A�� 330 300 OCHCCS \ \\\� � 315 _ 300 \ ��g \\\ \ \\ 200 \VAv 100 \\\\ 0 93-94 94-95 95-96 96-97 97-98* 1997-98 based on current 10th day enrollment and State long range projections. / ' Per Pupil Current Expense Appropriation $1,782 MOM $1,571 �MWMM, �. $1,363 v vv OEM��� $1,310 $1,310 \\� A \ \ $1,175 \� \, IN � $1,057 Me$967 \ MW �y vv yv vvvvv� �v OVA SM ME I 0\11 11 RMIC 'w\ MINOR hi QAV \\ V 10 V 0 ` A AA�V�\vim IN M QA VA\ X 89 90 91 92 93 94 95 96 97 Fiscal Year Ending 19_ *Does not include Chapel Hi Carr ro Speci District Tax or Capital/Debt Funding. December 7, 1996 Page 13 I -- Per Pupil Current Expense Appropriation Percentage Increase j 16% 14% _._ .... ___. ..... _... .... __ 13.4%, 12% 11 0 1096 EMEN ._.9.3/o \\ � \� \- \\ 8 3% \\ \�v '\\\0 \V NON o \\\o \\\\ \ \\ \\\\\ V\ \A\\V AAR \\\\ \\ \\\\ 4 1% \\\ \\ \\\\ 4% � INNER 0% \\ \ \\\ 89 90 91 92 93 94 95 96 97 Fiscal Year Ending 19_: Does not include Chapel Hill/Carrboro Special District Tax or Capital/Debt Funding. i Current Expense 0 Total Appropriation Millions $30.00 $25.00 ..... __.._... $24.60 __ FIVION$21.18\\$20.00 ,y v� �$17 26 \\\$ $15 71 \ V V �\� A 14 86 `V \v X10$15.00 A \ �� \\$13 06 1 1 $10.00 \ \ \ vA V A \v vy\ v v\VA yA�y $5.00 \ \\\ \\\ \\ \\ \ \ \ \\ \\\\ $0.00 90-91 91-92 92-93 93-94 94-95 95-96 96-97 *Does not include Chapel Hill/Carrboro Special District Tax or Capital/Debt Funding. December 7,1996 Page 14 I � ' Current Expense 0 Percentage Increase 20.00% 16.19% 15.00% 14.50% ° / 13.81% j/// j� 10 66% 10.88% � 9.83% 10.00% j 01100 j //%/ / /�/ o/ F%/i j 5 74f j 3 5.00/ Egli ggw 0.00/ ;, . % /i/ 90-91 91-92 92-93 93-94 94-95 95-96 96-97 *Does not include Chapel Hill/Carrboro Special District Tax or Capital/Debt Funding. --Debt Service 0 (Existing Debt) Millions 12 10 f t j � / j 8 �/%a % - - A , ii/r%/;�i ��.j%/°/ /r /% / County� % pSchools j %//� 411/�/i�4 /N 1/3 r////ii j� / i/� /� r ,i '�' %i rUir % r/ /%�i // ///% i/ r j / /j//% j j/ /, j O i December 7, 1996 Page 15 Other Issues J • Impact of Welfare Reform • Opening of new jail expansion - additional staff plus operations • Innovation and Efficiency Committee nnovation and Efficiency Committee • Develop Strategic Automation Plan • Limit Outside Agency Funding • Develop (and refine) organizational incentive programs Use County Operations Evaluation Model • Build a model for program and trend analysis • Will be reporting progress on these initiatives to BOCC I � I December 7,1996 Page 16 i 7fn Summary: 0 • Real Tax Base Growth estimated to be just under 3% • 1%Sales Tax Revenue estimated to be in the 2 to 3% • range • Other Revenue increases will not be significant • School Enrollment will continue to rise(at current per pupil) increase in enrollment will cost by nearly$900,000 • Impact of Welfare Reform-Block Grants • Additional jail operations December 7,1996 Page 17 b, tr) bR v bR o e e0 b 00 N q M O O� 'n M c0 n O h O\ N [� h O M 6 M N J ti N 00 00 4 00 p� O O~ 00 M t� 00 N \O to 'IT r- N \O N ON N a\ C M N �6R 6R - 603. N - y, 60) 64 0 6R M �° O e O\ O\ 6R 00 O b� "O b� O\ M 04 �p w 000 N t% M q N O M N b ~ pM " O h 00 a1 O 00 h O� O N O N N `p n U 00 O 7 r- et �h �O V 00 Q Clf 6NR 6R N r- ~ 64 6N9 64 oo H4 7 tl V, M y N N 00 0O N N p C\- O b p � O a\to a0 d to O Q N N N O 69 64 64 613 69 6R 6R 69 6R 6R} to N b�° Q S° Lam° M b� O� b� \D b� � _ N n M N �$ N oMO O O o0 � 0p OM O Obi �O b y O �O \p 00 tr) -11, ly C 00 W, 0 0\ M 00 ~ M 00 n 00 N M ~ N W) to N 00 f0 � 6 T 6'3 EH 69 1 64, 69 I "I'll 1 64 69 614 N 7 00 e, N e, M LR \D � .--t �° N � O e, O\ b, N bR w. R a M M Cn :N t j O N �O N " N 0 r h C OM1 cz M N h p N try ~ r, h uj Cl h W G to N N Y to N 7 00 l- O� M 00 p. �D M 00 N M to N 00 to W Q N .-t .M-i to N 00 M � 69 69 69 6R 69 69 69 E/4 6R 6R U O O, o N N r, to tM N 0p � ey t of M CD M M 00 00 d � Y1 = a e N h a; 00 -i h O of �„ O en .- V') O 0, t Lti ON N o N M C to N \C 00 C 6R 6o} 6R 64 69 6R 69 6R 6R 614 N to r- N a\ O� e, Ot C\ C'4 N C N N M n ti ' \C ti. O 4 00 \O o N O 0M 0 o N - to - ry r ~ O i h O \ tp � ¢ N •-• --� O � N of a\ � 64 69 69 64 64 I 4 1 6191 69 69 64 �p et to p to to �o �p O N_ to O to N d v) �O en CD 00 W) ON 0 - O � O 0�0 ON Q -- -+ -- a\ V N N O� N 64 6F} 64 69 64 64 69 6R 61 f/4 6� � rr O � r� � � � .� � .�•t 'r•r U O Cti O O r, 0 O O O O O O p„ V V A December 7,1996 Page 18 it 1 U0, 070. F0. U0. `L" 0. 0.t4 a; 0. Wa zci F a°; N r- %n 0000 00 tr) tf) .fir to fn Otl r+ DD 7 O O 0000 Or- W IC � tn O CN 'IT �O S M 00 — r- N CN ON 64 64 64 69 64 64 64 64 V33 Ff} a> M "t q 1N �t O �O t t 00 00 N N V1 M d0• O O O N U �' 69 69 64 64 64 64 64 6J4 en ONO in 9 M M V1 N V W) d� �y 00 %O N %O vi O �D \D en wl� wl M � N M N et N O a\ N b ER 6,111 64 64 6R 6R 64 64 64 F/4 g N N �sp W) O en 000 d QM N %O r- �D N r- M 00 r` S M > O� t- � ONTO N O tn ONO N M \O 61S. 614 ER 64 64 60" 69 ' 69 N �O %-0 M to r` r` O 1Ln oMO t n W 01, O 110 M to N dam' N 00 M b O N 00 h t- M M M DD 00 N in en C U N O Q' 64 f!•T 64 69 64 64 64 4 6 6i} tD p p N N C N N O vi ON © N N 00 �o C\ 00 to 00 rA ; U C N - NQ a' M ��+ V ONO dam• ON O N 7a 00 M ~ ~ tn 6ol 64 64 64 64 64 64 6R GH p N tn M dam•^ O CCi`1 U > r- O M 00 00 00 �, .-� N 64 69 64 64 64 64 6i? 64 44 N 00 N � r` Q\ 00 O t` C\ M M W) MM N M M in , N N 000 O\ N rl 000 CN Ch M O M 00 C t .r •-� M � N � 64 64 6416S 64 64 64 64 614 ON ; O - M \0 M ONO 000 iMA 00 > w � 4 '� N o0 O - a0 00 q• 00 d W) O 00 \: M M kn N �D cl N M U 64 64 64 6R 64 64 6R 64 614 Q Cn A4 0 F > a as w rA `n 19 -et a � U � � � � c December 7, 1996 r4,M v, r 00 a F Page 19 N V1 bR v> e 'b OM 09 N 0� M O � C\ O M M �--� �' lr O rn C � N � h O M �o M N b N N Op O h O� O 00 [\ O 00 M [- 00 N �" � d' t� ON •pp 6M9 69 64 N -rl t-t- 0 6R Cn b� O b� oN e O, �° 00 b� O �O b� � b� Cn 00 b� 0�0 N tn •�' M O� N O M a' N �O "'� O ti h 00 p" °p h O M N M N O O 00 O h N N C� e- 00 O t rt �O d0•^ 000^ N R 6s 6 69 69 000 N N e 0 0 00 0 �h \O N .•-� h ^" � N h N O 00 O� O b p N 4_ t- to 00 C� eT + t N tn N ti v N N N O b 64 6F? 64 b9 69 69 6R 69 61 I to �° N b� en rn \,o to �° en N e M N n en 00 O o 00 en 00 0 O �O �o 06 N co 8 b �_ oo h N ^" h 0 N N en =1 e- ItT C� en O 00 \O t` 't M N 00 O t0 64 60,11 1 69 64 69 69 6q 19 69 I I 619 N L 00 e entk roe° e N 0 b (ON �° N en N M n _ .. �M en - v N , h t N N N 000 r- ON C, ~ h _ 000 h p N \O en 00 N It M to N 00 tn r- 00. el U 64 Ei9 6R 69 69 69 64 6R 69 619 O o 0 0 0 0 0 0 0 0 0 p b� o� bo p � p b� 00 N Cj N 00 e` "t 00 't in b� N M b N 0. � M !F Cn 00 M M 00 v� d 00 !F t M = N n Ch \o ti N h Q\ . h O C� om O "n � O O '- N t,ON t N - M ON ti ¢ N .-i .-i elf W N \0 00 10 fH 69 61 69 6R 69 69 6H 60%1 1 119 N to e� e, N e ON C\ C\ O 8° N rn N O\ N r h N N r N C1 � O ^f c 00 M \O 0o ti O \O C\ \O N h 00 C� Q N ti r+ rr @n 66f 6R f19 6R 69 Gig 6R 6R O h %0 p C14 tn 000 M ON O O N O Q\ Vl 00 64 69 69 6R 69 69 H9 1 1 69 69 4C � •� o, C o, b o, � o� � o, o> o, o> y o> o, " 00 o0 o Qo p, °0 00 00 0o Qo 0o ao cc CU U U CU v� U �aU U oU a, U U _ December 7,1996 o o o, o o, Page 20 W /Y Z �Y F 0. N o of o N � q 7 7 N S2 R � OI IO., `T rl ri o O OI O N N N rl b b 9 a ion t� n N h b � III 00 •~+ n 00 •t•� en fl tl G � < N O � O en t: eYi. 25 M a vNi N d 8 8 a vNi M 1\ d a0 00 .r q 8 N d C O QQ Q ti ovff �p � � °• 0�0 a N d TAI � N q N ° 4 Q !Y 25 h Go v1 v� w .� = Q $ �d•� ,p 00 N q � O .r 00 .r q e A A N a N 8 y ` December 7, 1996 A W » ` ` > I- U° a a I°. Page 21 12f04f1996 12:55 9673823 GORDON PAGE 01 Cr- MEMORANDUM To: ,john Link From: Alice Gordon Subject: Charge to the Capital Needs Advisory Committee and Structure of the Committee Date: December 4, 1996 At our meeting on December 2, 1 made some suggestions concerning how the charge could be modified if the commissioners wished to have the committee report back early in the spring. They are given below. Charge to the Committee Purpose Make recommendations to the Board of Commissioners concerning elements and size of the proposed November 1997 bond referendum for schools and county projects. Include the steps given below. I. Schools A. Review the needs for new schools in the 10 year Capital Improvements Plan (CIP), as identified by the Orange County and Chapel HW-Carrboro City Schools B. Familiarize itself with the current long-range school capital funding plan approved by the Board of Commissioners at the October 15, 1996 meeting C. Confirm the need for,and timing of, new school construction Projects, considering current and projected student populations 11. County Projects A. Review the capital needs recommended by the Manager for the 1997-2007 CIP and follow any priorities identified by the Board of Commissioners B. Identify the need for and the timing of county capital projects, including those for parks and recreation 12/04/1996 12: 55 9673823 GORDON PAGE 02,, Capital Needs Advisory Committee Page 2 Time Schedule Complete its work by the first week of April 1997 Note: It would be better to allow the committee more time, perhaps until sometime in May, if the county staff could revise the CIF work schedule in the budget process_ Financial Guidelines The commissioners may suggest some financial guidelines. Note: The commissioners may or may not wish to suggest that the bond amount be capped at $40 million with no tax increase. One possibility is to allow the committee to present more than one alternative, one of which would be a $40 million bond. Structure of the Committee Membership The committee structure is appropriate for the schools part of the bond referendum, but does not seem adequate for the county projects. If the commissioners identify other priorities, those categories could be represented. Eligibility A. Orange County resident B. Registered to vote and no delinquent county taxes Other Issues A. County commissioners may serve on this committee. B. The chair could be appointed by the commissioners. C. The budget for the committee needs to be established. g 1 -Transfers to Other Funds 16,000 2 (To budget prior year expenditure carry forwards) 3 EQUIPMENT AND VEHICLES PROJECT CAPITAL PROJECT ORDINANCE 4 The following revenue is anticipated to complete this rp oiect: 5 Transfer from County Capital Reserve Fund (1992-93) $ 295,300 6 Transfer from General Fund (1993-94) 391,615 7 Transfer from General Fund (1994-95) 465,229 8 Transfer from General Fund (1995-96) 294,415 9 Transfer from EMS Base 2 Project (1995-96) 10,000 10 Transfer from General Fund (1996-97) 497,964 11 Total Transfers from Other Funds $1,954,523 12 13 Intergovernmental (1992-93) $ 32,935 14 Intergovernmental (1993-94) 4,688 15 Intergovernmental (1994-95) 131,129 16 Intergovernmental (1995-96) 123,750 17 Intergovernmental (1996-97) 88,595 18 Total Intergovernmental $ 381,097 19 20 County Capital Fund Balance (1994-95) 10,000 21 _ Total Revenue $ 2,345,620 22 23 A portion of the funds available for this rp oleo have been expended. 24 The following amendment is anticipated to close these amounts: 25 Transfer from County Capital Reserve (1992-93) $ 239,583 26 Transfer from County Capital Reserve (1993-94) 348,384 27 Transfer.from County Capital Reserve (1994-95) 351,954 28 Intergovernmental (1992-93) 32,935 29 Intergovernmental (1993-94) 4,688 30 Intergovemmental (1994-95) 91,530 31 Total $1,069,074 32 33 The following amount remains appropriated for this rp oiect: 34 Equipment and Vehicles $1,276,546 35 (The project authorized will provide for purchase of County-owned vehicles and major 36 - equipment. The project will be financed with proceeds from the County's portion of the 37 one half cent sales taxes, appropriated fund balance from the County Capital Projects 38 Fund, and grant funds from the North Carolina Department of Transportation.) 39 40 41 M. ORANGE COUNTY INDUSTRIAL FACILITIES AND POLLUTION CONTROL FINANCING 42 AUTHORITY 43 The Board received the filing of the September 25, 1996 proceedings of the Authority and oaths 44 of offices of the Authority members sworn in on that date and enters the proceedings into the minutes of 45 — this meeting by reference. 46 47 VOTE ON THE CONSENT AGENDA: UNANIMOUS 48 49 50 9. ITEMS FOR DECISION -REGULAR AGENDA 51 A. LONG RANGE SCHOOL CAPITAL FUNDING OPTIONS 52 John Link presented for Board discussion revisions to the funding option identified as Option 53 5A as presented to the County Commissioners on September 17, 1996. He noted that these changes in 54 the plan mean that policies for the way money is allocated to the two school systems will need to be 10 1 changed. If the Board approves Option 5A with the changes as outlined in this agenda abstract (now 2 referred to as Option 5B), he will bring back those policy changes for Board approval. 3 With reference to the Board's concern about using the one cent that is earmarked for a 4 capital reserve account for County projects beginning in 1998-99, Commissioner Halkiotis said that his main 5 concern is that some of the County programs will be shortchanged. He will not support an increase in the 6 general fund property tax rate of one cent to replace these funds. He thanked Budget Director Sally Kost 7 for her creativity on this plan and asked that additional work be done to provide adequate funds for other 8 programs in the County. 9 In answer to a question from Commissioner Gordon, Sally Kost said that the $1 million for 10 County projects will come from the $40 million bond funds. 11 John Link said that since June they have been working from the expenditure side as a given 12 and tried to match the revenues with the expenditures. From here forward, they will use a needs task force 13 to look at the needs which will determine the expenditures. Also, the County projects need to be specified 14 with timetables and estimated cost. They also need to look at what the high school task force did several 15 years ago and what the intent was for future high schools. 16 Commissioner Halkiotis said that when talking about this much money, there was a sentiment 17 that East Chapel Hill High would be sized to handle any excess student population from the northern end of 18 the County. It is important to know which areas people are moving into so that planning can be done 19 accordingly. 20 Commissioner Crowther clarified that Chapel Hill -Carrboro City Schools start with zero 21 money and at the end they have a fund balance of $4.4 million. 22 Commissioner Willhoit expressed concern that the one cent reserve for land acquisition is not 23 maintained in the plan. He feels this should be factored into the long-range plan and should be used jointly 24 for recreation and schools. He feels that pressure should be placed on those responsible to identify land 25 for future schools. He indicated that he is not opposed over the long term to using proceeds from the 1 cent 26 tax for other purposes, but that the proceeds for years up to 1998 should be available to take advantage of 27 id acquisition oprortunitiss. 28 Commissioner Gordon made reference to the infrastructure impact statement and asked that 29 Commissioner Halkiotis join her in moving this project forward. 30 John Link asked the Board's direction on using the capital reserve account to acquire land 31 where school and recreation can be jointly located so that could be factored into the equation. He also 32 asked for the go ahead to pursue policy statements for plan 5B. He noted that the Needs Assessment 33 Committee will focus on those issues that relate directly to the referendum and then focus on pay-as-you-go 34 items. 35 A motion was made by Commissioner Willhoit, seconded by Commissioner Crowther to 36 adopt the capital policy as defined in Option 5A presented at the September 17 Board of Commissioners 37 meeting with the changes outlined in the abstract dated October 15 with consideration given to how the $1 38 million can be covered without an increase in the property tax rate. 39 VOTE: UNANIMOUS 40 41 42 B. COMMUNITY SCHOOL FOR PEOPLE UNDER SIX FUNDING REQUEST 43 John Link presented for the Board's consideration of approval a request for funding from the 44 Community School for People Under Six. On April 1, 1996, the Board approved a request from the 45 Community School to construct a 2,150 square feet building addition to the Northside Multipurpose Center 46 located on Caldwell Street in Chapel Hill. Since April, the cost of the expansion project has increased 47 beyond the Community School's budget. The additional cost is the result of parking lot improvements 48 required by the Town of Chapel Hill . John Link talked with Cal Horton who indicated that the Chapel Hill 49 Town Council will consider an allocation for this project at their meeting tomorrow evening. John Link noted 50 that these are permanent improvements that will add to the value of the property owned by the County. 51 Anna Mercer-Mclean, Director of the Community School for People Under Six, said that it will 52 cost an additional $20,300 for the construction work and services required to comply with the Town of 53 Chapel Hill 's conditions of approval for the Zoning Compliance Permit. 54 A motion was made by Commissioner Willhoit, seconded by Commissioner Halkiotis to 55 authorize an appropriation of $15,000 from the Commissioners' contingency to fund the facility 9 �i 1QC`,�i m�rs'Tr u 1 -Transfers to Other Funds 16,000 2 (To budget prior year expenditure cant' forwards) 3 EQUIPMENT AND VEHICLES PROJECT CAPITAL PROJECT ORDINANCE 4 The following revenue is anticipated to complete this ro'ect: 5 Transfer from County Capital Reserve Fund (1992-93) $ 295,300 6 Transfer from General Fund (1993-94) 391,615 7 Transfer from General Fund (1994-95) 465,229 8 Transfer from General Fund (1995-96) 294,415 9 Transfer from EMS Base 2 Project (1995-96) 10,000 10 Transfer from General Fund (1996-97) 497,964 11 Total Transfers from Other Funds $1,954,523 12 13 Intergovernmental (1992-93) $ 32,935 14 Intergovernmental (1993-94) 4,688 15 Intergovernmental (1994-95) 131,129 16 Intergovernmental (1995-96) 123,750 17 Intergovernmental (1996-97) 88,595 18 Total Intergovernmental $ 381,097 19 20 County Capital Fund Balance (1994-95) 10,000 21 Total Revenue $ 2,345,620 22 23 A op rtion of the funds available for this r�oiect have been expended. 24 The following amendment is anticipated to close these amounts: 25 Transfer from County Capital Reserve (1992-93) $ 239,583 26 Transfer from County Capital Reserve (1993-94) 348,384 27 Transfer-from County Capital Reserve (1994-95) 351,954 28 Intergovernmental (1992-93) 32,935 29 Intergovernmental (1993-94) 4,688 30 Intergovernmental (1994-95) 91.530 31 Total $1,069,074 32 33 The following amount remains appropriated for this rp olect: 34 Equipment and Vehicles $1,276,546 35 (The project authorized will provide for purchase of County-owned vehicles and major 36 equipment. The project will be financed with proceeds from the County's portion of the 37 one half cent sales taxes, appropriated fund balance from the County Capital Projects 38 Fund, and grant funds from the North Carolina Department of Transportation.) 39 40 41 M. ORANGE COUNTY INDUSTRIAL FACILITIES AND POLLUTION CONTROL FINANCING 42 AUTHORITY 43 The Board received the filing of the September 25, 1996 proceedings of the Authority and oaths 44 of offices of the Authority members sworn in on that date and enters the proceedings into the minutes of 45 — this meeting by reference. 46 47 VOTE ON THE CONSENT AGENDA: UNANIMOUS 48 49 50 9. ITEMS FOR DECISION - REGULAR AGENDA 51 A. LONG RANGE SCHOOL CAPITAL FUNDING OPTIONS 52 John Link presented for Board discussion revisions to the funding option identified as Option 53 5A as presented to the County Commissioners on September 17, 1996. He noted that these changes in 54 the plan mean that policies for the way money is allocated to the two school systems will need to be SUMMARY OF MILESTONES RELATED TO CAPITAL FUNDING POLICY School Construction Standards 18-Oct-95 School Standards Workshop 15-Nov-95 School Standards Workgroup Meeting 14-Dec-95 School Standards Workgroup Meeting 25-Jan-96 School Standards Public Hearing 28-Feb-96 School Standards Workgroup Meeting 14-May-96 School Construction Standards Report to BOCC 16-May-96 School Construction Standards Approved by BOCC (Work Session) Capital Improvements Plan 15-Dec-95 Kick-off CIP with Superintendents March CIP Requests from two School Boards 1-Apr-96 CIP Presented to BOCC 16-Apr-96 Public Hearing on CIP Discussion of School Capital Needs 1-May-96 CIP Discussion 26-Jun-96 Adoption of Capital Project Ordinances and Budget Long Range Capital Funding 16-May-96 At work session, Board directs Manager to work with school staffs to develop comprehensive school capital funding plan which includes a bond referendum- report to be made in Aug 96 11-Jul-96 School and County staff meetings on funding options 26-Jul-96 12-Aug-96 20-Aug-96 Long Range School Funding Options presented to BOCC 17-Sep-96 Refined option to plan submitted on August 20 presented to BOCC (Option 5A) 14-Oct-96 Joint Meeting of BOCC and School Boards 15-Oct-96 Option 5B presented to, and approved by, BOCC _ 19-Nov-96 Draft Policy Considered by BOCC to implement Option 5B 2-Dec-96 Revised draft policy presented to BOCC . 1 Orange County Board.of County Commissioners Action Agenda Item No q_Q Action Agenda Item Abstract Meeting Date: October 15, 1996 Subject: Long Range School Capital Funding Options Department Public Hearing Yes No—x_ County Manager Budget Office Budget Amendment Needed Yes No_x_ Attachment(s) Information Contact Capital Financing Sally Kost ext. 2151 Spreadsheets Telephone and Extension Number Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 227-2031 Purpose To adopt a plan for financing long range school capital needs. Background At the August 20, 1996 Commissioners meeting, County staff presented a report on long range school capital funding options. The Board reviewed this plan again at their meeting on September 17, and endorsed the plan's conceptual approach, asking for additional staff work on three issues: • The Board of Commissioners asked Staff to explore ways to address the concerns expressed by the Chapel Hill/Carrboro City Schools board members and the superintendent.Their concern was that Option 5A would reduce Capital Improvements Plan funding in the early years of the planning period, although through the nine year planning period, funding would be more than currently available. • In addition to the.concems expressed by the Chapel Hill/Carrboro.City Schools, the Board of Commissioners directed that the annual revenue from the one cent on the tax rate that is currently earmarked for a capital reserve should remain for that purpose. The plan as it was presented at the September 17 Commissioners' meeting, included shifting in fiscal year 1998-99, the earmarking of these funds to County capital projects. 2 • The Board of Commissioners encouraged staff to see if funding for County projects cbdd be "held harmless" without tapping the funds earmarked for a land capital reserve. Option 5B presented here, addresses each of these concerns as will be explained below. Option 5A as presented on September 17, included the following key elements: • All funding currently earmarked for capital projects would continue. Debt service (existing and planned) would be deducted before funds are allocated to the two School systems and to County capital projects. • The equivalent of three cents on the general fund property tax rate would be earmarked for recurring capital for the Schools. These funds would be allocated to each school system based on the State Department of Public Instruction planning allocation (projected student enrollment) which is prepared in April each year. • Orange County citizens would be asked to vote on a $40 million bond referendum in November 1997. This referendum would include $35 million for Schools with the balance used for County projects,, and possibly housing and parks/recreation. The funding plan as presented here is based on the new facility needs as presented by the two school systems during the Capital Improvements Plan process last Spring. The cost for the new facilities was based on the School Construction Standards approved by the Board of Commissioners in May 1996, adjusted for five percent annual inflation until each project is bid. The School systems can decide to construct a school at less than the Level Two standards adopted, therefore freeing up funds for on-going capital projects. A fundamental element of the conceptual plan endorsed by the Commissioners is review of the capital needs identified, by a Commissioner appointed Capital Needs Advisory Committee. As the needs assessment process is conducted, the committee studying school and county capital needs may want to review the projects that have already been identified, to determine if other adjustments should be made in the capital funds distribution formula to ensure that the highest priority capital needs are being addressed. 1 Orange County Boaid.of County Commissioners Action Agenda Item No q_g Action Agenda Item Abstract Meeting Date: October 15, 1996 Subject: Long Range School Capital Funding Options Department Public Hearing Yes No x County Manager — — Budget Office Budget Amendment Needed Yes No_x_ Attachment(s) Information Contact Capital Financing Sally Kost ext. 2151 Spreadsheets Telephone and Extension Number Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 227-2031 . Purpose To adopt a plan for financing long range school capital needs. Background At the August 20, 1996 Commissioners meeting, County staff presented a report on long range school capital funding options. The Board reviewed this plan again at their meeting on September 17, and endorsed the plan's conceptual approach, asking for additional staff work on three issues: • The Board of Commissioners asked Staff to explore ways to address the concerns expressed by the Chapel Hill/Carrboro City Schools board members and the superintendent. Their concern was that Option 5A would reduce Capital Improvements Plan funding in the early years of the planning period, although through the nine year planning period, funding would be more than currently available. • In addition to the concerns expressed by the Chapel Hill/Carrboro City Schools, the Board of Commissioners directed that the annual revenue from the one cent on the tax rate that is currently earmarked for a capital reserve should remain for that purpose. The plan as it was presented at the September 17 Commissioners' meeting, included shifting in fiscal year 1998-99, the earmarking of these funds to County capital projects. 3 In response to the concerh!f xpressed by the Chapel Hill/Carrboro City Schools regarding reduced funding":in-the early years of the capital plan, Staff has made the following adjustments to Option 5A: • In the original plan, the $40 million in bonds were to be sold in two installments of$20 million each. In this latest revision, bonds are assumed to be sold in three installments of$10 million, $20 million, and $10 million. This change reduces debt service payments in the first several years of the plan, thus freeing up funds for on-going projects. The drawback of splitting the bonds into three separate bond sales is the issuance costs, which are approximately $50,000 each sale. However, issuance fees have in the past been paid from interest earnings on bond proceeds sold and not yet expended. Staff proposes to continue this practice. The actual decision on the number and amount of each bond sale is based on cash flow projections usually prepared by project architects. Although the assumptions in this plan seem reasonable to meet the cash flow requirements of the planned projects, staff will need Board flexibility in how and when these bond sales are actually structured and carried out. • The long range funding plan includes bond funds for each school system for renovations/school improvements. The plan includes $3,002,535 for the C;HCCS and,$3,795,953 for the Orarrge-County Schools-. In the plan as presented in September, these funds were projected to be appropriated beginning in 1998-99, with one third of the total amount included in each of the next three years. Since bond proceeds will be available during fiscal year 1997-98, the first year of appropriation of these funds under Option 58 was advanced one year and the funds distributed to be more in line with the currently adopted Capital Improvements Plan. • Although the revised plan addresses the concerns of the Chapel Hill/Carrboro City Schools, without additional modification, the impact on the Orange County Schools would have been that Orange County Schools would receive about $1 million less when compared to the same time frame in the current Capital Improvements Plan. This is due to the adjustments in the bond sale schedule, altering the peak year of debt service by pushing it back one year, and slightly reducing the total peak year amount. Because the difference in the peak year amount and the actual debt service payment is allocated to the Orange County Schools, this change in the debt schedule would have negatively impacted the total allocation for Orange County Schools. To adjust for this impact, an additional $1 million in bond funds from the $5 million in County bond funds is allocated under Option 58 to Orange County Schools. This would result in $36 million in bonds for the Schools and $4 million for County/recreation/parks projects. The $1 million that is allocated to the Orange County Schools could be made up for County 4 , projects in fiscal year 2008*-07, from a portion of the funds that is the difference between the bored peak year and the actual debt service payment in fiscal year 2006-07. The Board of Commissioners also expressed concern about using the one cent that is earmarked for a capital reserve account for County projects beginning in 1998-99. As staff has reviewed the funding options for County projects, the only funding source that could be identified to replace these lost funds for County projects is a one cent increase in the general fund property tax rate. This tax increase would occur in 1998-99. Because the specific purpose of this capital reserve has not been adopted by the Board of Commissioners, the Board may want to consider adopting a policy for the purpose and distribution of these funds. Recommendation The Manager recommends that the Board of Commissioners adopt the capital policy as defined in Option 5A presented at the September 17 Board of Commissioners meeting, with the changes outlined in this abstract. 3 In response to the concemtbxpressed by the Chapel Hill/Carrboro City Schools regarding reduced funding ir)-the early years of the capital plan, Staff has made the following adjustments to Option 5A: • In the original plan, the $40 million in bonds were to be sold in two installments of$20 million each. In this latest revision, bonds are assumed to be sold in three installments of$10 million, $20 million, and $10 million. This change reduces debt service payments in the first several years of the plan, thus freeing up funds for on-going projects. The drawback of splitting the bonds into three separate bond sales is the issuance costs, which are approximately $50,000 each sale. However, issuance fees have in the past been paid from interest earnings on bond proceeds sold and not yet expended. Staff proposes to continue this practice. The actual decision on the number and amount of each bond sale is based on cash flow projections usually prepared by project architects. Although the assumptions in this plan seem reasonable to meet the cash flow requirements of the planned projects, staff will need Board flexibility in how and when these bond sales are actually structured and carried out. • The long range funding plan includes bond funds for each school system for renovations/school improvements. The plan includes $3,002,535 for the CHCCS and $,3;795,953 for the Oran-ge-County Schools-* In the plan. as presented in September, these funds were projected to be appropriated beginning in 1998-99, with one third of the total amount included in each of the next three years. Since bond proceeds will be available during fiscal year 1997-98, the first year of appropriation of these funds under Option 56 was advanced one year and the funds distributed to be more in line with the currently adopted Capital Improvements Plan. • Although the revised plan addresses the concerns of the Chapel Hill/Carrboro City Schools, without additional modification, the impact on the Orange County Schools would have been that Orange County Schools would receive about $1 million less when compared to the same time frame in the current Capital Improvements Plan. This is due to the adjustments in the bond sale schedule, altering the peak year of debt service by pushing it back one year, and slightly reducing the total peak year amount. Because the difference in the peak year amount and the actual debt service payment is allocated to the Orange County Schools, this change in the debt schedule would have negatively impacted the total allocation for Orange County Schools. To adjust for this impact, an additional $1 million in bond funds from the $5 million in County bond funds is allocated under Option 513 to Orange County Schools. This would result in $36 million in bonds for the Schools and $4 million for County/recreation/parks projects. The $1 million that is allocated to the Orange County Schools could be made up for County 5 School Fii g Options O tions Facilities Year Needed CHCCS OCS Total Elem School #8 1999 14,100,000 - 14,100,000 CH High Addition 1999 11,800,000 - 11,800,000 Middle School #4 2000 22,500,000 - 22,500,000 Elem School OCS 1999 - 14,500,000 14,500,000 Total $ 48,400,000 $ 14,500,000 S 62,900,000 Funding Sources State Bond $ 10,995,340 $ 5,980,160 S 16,976,000 Impact Fees 1997-98 1,100,000 344,250 1,444,250 1998-99 1,122,000 351,135 1,473,135 1999-00 1,144,440 358,153 1,502,598 Total Impact Fees $ 3,366,440 S 1,053,543 S 4,419,983 Private Placement (CHCCS Elem School) Fall 1996 5,000,000 - 5,000,000 Fall 1997 9,000,000 - 9,000,000 Total Private Placement $ 14,000,000 $ - $ 14,000,000 County Bond Referendum - CHCCS Middle School 20,735,185 - 20,735,185 OCS Elem School - 7,466,297 7,466,297 Total Revenue New Schools $ 49,097,465 $ 14,500,000 $ 63,597,465 Bond Funds for Renovations 3,002,535 4,795,983 7,798,518 Total Funding For Schools $ 52,100,000 $ 19,295,983 $ 71,395,983 Revised 9/17 October 15, 1996 10/10/96 • p app pp6 6 Q +it O� e'O'f ^M1y N N Q b o0 O DD O\ N •+. .bi O aM10 O: O Q Q h OVO 2, N M1 N `O ^i N O N LP) Q v'1 N p N M1 rn O en N •r Q co n 8 eQn^ e�1 a NN N N to M �. �'f .•r .too{ Q 'af r"� a 8 a co N m at 8 O b a In Lr, oo vi en h h ` r^ a Q 4 h N 00 m rn O en Nt 00 O •� 00 en e'7 N �p en O r oo N a + en O N cn Q .., en en •� en en R Q co In a a b 00 �, Q O ^'1 c0 •� h h �O N O� m N h In O N b ^ 3 M1 CD O r r N N In M1 Ic In — Q c0 co v Cl oo a o N N r OD r �O `C c0 h m C,4 CQ r4 V 00 4N `O vi CN O eai �n 0D0 N o�o QO• In r M1 �O h7 N NO rG n n O� b .M1. ... In C b n b N ' O 00 N b •� c �D %O M1 In O 00 O. v N N rn N In N rn N N w o N o0 O C', t� t' 'IQ' "� r� O M1 v'f N lT I O O OI •r oo r^ !'i r< I O lc I ti Nc r on 0 p .n r- n ..�. .� v r- v� N !'� "1 1.0 en V rn r o0 00 o v N N en eV In N rn I •+i N T a, V. h pppp ^ Gp Ow S O •7 N g N Q "M1"'i 7 N N M L:. w O C u N O Q vi O� ^'i .• vi O en H co '- co t $ oro a Nro O o� a r c "• ON N N 1 •� N N •+� N u S N a ON N a 8 Q In 0o O O A 00 0 C: cc N N O N b a O ey n O ��, � O� O •v'� vM1i e.l �O c�0 N ve''S O vrr''� VQ• � c�0 �D H C N h ObV10 VO'f c k I r f- O% A � _ N G ^ m v v 3 OC L OL y L .�v. Z Y 0 O `./ a � v er; c .. u V at h y V1 c Y u M � h 7 M1 96/01/01 9661 '91 lag01:)0 L1/6 Paslnag £86`56£`TL $ £86'56Z'61 $ 000'OOT`ZS $ 910oPS 103 $mPM3 TMOI Si5 86L`L £86`56L`b S£S`Z00`£ snopsnouaH ao3 spun3 puog 59t=`L65`£9 $ 000`0054b1 $ S9t,`L60`6b $ sloogZIS ekax anuasaH TMO.L L6Z`99t"L L6Z`99b`L - 100403 M219 SJO S8I`S£L'OZ - S8T`S£L`OZ lOO4oS aTPP!W SJJHO ampuasajaH puog A3unoO OQO`000`bi $ $ 000`000'b1 $ 7uama:)Eld aaEArld le)Ol 000'000'6 - 000'000'6 L661 Ilt-4 000'000.9 - 000'000'9 9661ITe3 (100gaS Iua13 S:)JHO) auauraaeld aaeetaa £86`6117`17 $ £bS`£SO`i $ OW99f`£ $ saa3 }:)Edurl le)ol S69'ZO9'1 . 891,89C Ott`tt,1'1 00-6661 9WELt"T 9£1'19£ 000'ZZ1'1 66-8661 O9Z`t"'I OSZ'btl£ 000,001,1 86-L661 saag a0edwl 000`9L6`91 $ 091'086`5 $ OPS'S66`01 $ Puog alels sa)inoS DuTpun3 000'006'Z9 S 000`OOS`b1 $ 000'00t'`8b $ leaO.L 000'009'ti 000'009'bt - 6661 SJO 1004PS U1213 000'009`ZZ - 000'0OS'ZZ OOOZ P#/ 1OOPS aTPPIW 000`008'I 1 - 000,008,11 6661 u0ptpptt 481H HO 000'001'bl - 000`001`tll 6661 8#/ POP&W013 Iu10l SOO SOOHO papaaN nab sat�r�t�83 suotldo 2uiz)uvm,4 IoogDS S . r N P7 ? �t �O (� a0 QI O -• N P1 y N 'O r OO C O N C9 T v'1 eG P� IC N N CI N CI CI CI � 8 V� �^j� �7p► 8 e a n O N n r+� V ,/n1 • N M 7 N_ N •O iy0 Np �{ n Ty{ N N fTp .1 N N_ „ TT yy N a .np N 1 = T N n ro�1 a y a Ian O O� O O ems r a a0 '•. •O N Ilka Ia► a •O r�,1 'O p x .n m a m ae n •o v a 'o » n a o p n •O a_ n N M d �O ri n b M 7 rt M - n� n n N pp - "'r O N •O >0 n 'n n N N N N N N n n N _ n� N N C s T NI N N O T .n i vl a s a a m a 7, � a m o• � ai .n a v� a ^ - � — O � n M n T ► N N "� N n M _ n N N I a � a n � yn.p � � 'O •O � 'O 'r N � � y N r � � T �>0{ O1 O = n m N M NT 8 H N S N d4 a p O •a n � n N n_ n n - - n - - - - I - - N - _ - � � ,� .� I. .oa — O a •O �O a0 .O �f N _ _ _ — — — — N N N � � T � 'O .O .ryi •O n � � n' P ^ N d .p P T 5 x 'O T 'O N S ,On v� O N P m q h T •O O •O f� n � i0 ]O OO a0 O `O. n � � T '.1 N ry 50 ry O z � hI N.; N N O N OO T N 9 §•'O �Np a, H m M T N n Vf n a Off.s CO 9.O • �1 > O rf a0. N �O ,O a m ae •O � .o .e aa (p+ a n y 'J'�T L-m 25' a ,a: �N1 N M I•- i ry -I -' ry N. /"1 F! zn ! 1 Y 3 a = u ? - U . _ 8 T O S N -t O oo ao .n O �p �n n v'f �O O� t� v'f o0 T w"I 00 C, N v1 O� 00 �O = v'1 �O 1� � O� OO v9 �t E 00 C\ N N w T N O1 h e�1 �G O\ C> `d h h ^ r•1 H C4 'o N O\ r O e+1 •.a O e•1 �O O h 7 10 'r a 00 ��4 8 00 10 8 8 Q 'f rn 8 N N e7\ e►1 O 4\ O v1 N S O O y S th 00 O v1 O O V!! Q N rl O ON O _ Q O v1 O w O v'f N1 `O 'f tn N � ? N N n y! (-4 OHO 00 N 7 vl N m � OT 00 00 00 eh O\ 7 h N 0% m N v1 \O N 7 N ... N V1 en oo 00 o a a a Oho ^ r o pQ o � e�1 S G O N h 01 O S tN�1 N N ON 'T 9a\ 000 0c0 7 Q 7 V! 7 \O 00 N= 7 !` N e•'f a0 !T ^ -+ N1 00 o0 C rrl N 00 en fY b N ^ N 6R 8 S 8 0�0 O O 7 o O O Q 00 vhi t�'1 8 GN'` Q Q r+01 O� N S Q \O O [� O v'+ 8 C8 v7 r'f O� h �O 00 'O C f- N O v1 O h QN O O h h O O N '� v'! N h O N - 00 00 �O 7 h O N t•1 a0 M 00 N C' Q1 rn e+'1 a0 In N h en N! 00 8 I N v1 h M n a+ O Q o0 �o O% O. �rr1 y O h oo vi v1 7 �o r 0 v1 x N n o en t- e+t! 'o n .. S C r. C� N o0 a V1 ao 00 T O 00 O o 00 7 P1 h t~1 f"1 h 00 G1 00 h en C _ � N N N � rn C. 6A ^ Y r O\ O O 1411 N S CO O r�1 - O Q1 O O a� N � O O N �O N h N �O e'•1 Q1 h V! N h. h O ^ 4\ O h o0 N O v1 N N O% - N v'1 C\ O 00 T O •'•1 O\ ( V1 N h N Q1 00 00 C 00 O\ DD 1•.\ N P1 h N f'! \0 C•1 h N 'o N 00 I"n a -r 6? ^ cs C,_ C. 7 h 00, � O N N 10 CC n Q .T O � 2 � , � oN h C4 Ir A [� v'1 WN QQ N v\ oQ QQ O 00 S O O Oct Q O Q Q O 00 w) O to I N N V h G7 V ? = \O a a 8 00 8 8 00 h C\ b r O 7 7 O� O ? C/ Sr-, N N v1 O v1 7 00 ^ 00 v'7 00 v'1 t'1 v1 e{ h tel 'O m O h `0 O I- h In C1 00 .O 0H O t.. N O v1 00 Q e+1 h T 7 N h h M N HY 8 8 8 S 8 8 �oO e� 8 8 8 oq C1.. O -' O O O O O �-r C' C\ r•f wl Q� Qom\ h O Vf Q e��' z 1: 4n N 00 N V1 T Q\ ? 0a0 V 00 `d Q 000 O en - v'1 N ^ �. ry .p ,O DD e'7 N L H Q.� 8 8 8 O 8 8 8 8 0 8 S co cc..� O O $ O w 00 O O O N O Off\ S N C 0�0 O 00 `O co O p O O_ m ^ O h O V 8 w h 00 h eT v1 fh� N h N T Q N N C 00 O en N v1 en r O-. cn �O r 7 N �' O\ 00 rte,! O O N e/1 r O\ -. �r er'f N h ^ N ... \O \O 00 Cr1 C� .-r U U O v fq CS. _ i to J C.1 e v V 7 N O x n U n < 7 a ry U v! y tv O w _ (� 11 79- L .. " y Q U O Q u U y U to C L L h 00 0o N v. X 3 r z 52 `� to U erg N N N ems N N N !"1 N N _C 1 O� 1+1 � O N � � 1q� � 1�� � 7' F •'Y T' /al M M ai0 n a'10 S r � � � " � O T 1'Ni �, � _ � � � gas a 3 � "a � •:'�.= � a � � a ^ � � � = � = � � � N h MI Mt il0 a 9, F � -0 T N T 01 a — 01 ^JI a T p a T -0 n n 'E N N N T N N N Q a N m a Q •O 01 n N N -0 �O n n b n �! - Iq N - n n n co N n N 3 � b O N N 4 T f� N `Nf N •NO ? T V 0 ON N i� Vn1 N � h Cp Q n — •O a n 'n n N N N N N N n — f'1 N — n N N T a -{ n N r -0 b n rn �O n O n O •O ^ n n n vi O ~ � iC O T N A i 91 O' a T '�1 N f� •O a ^ N T � 'O •� 33 m ? O� ^ �O r �Q N T — � r •O � N N N N N N 9O 0 � n •O — — O ^ n N A — '� may[ OhhI n O FF � N_ •O -0 N_ -0 T N — $ � N{ N T M � T •A� n m ? T N e t et r, O r oO •Q N n a �N{ N NT ^gyp 8 N 8 M -0 -0 m� E co O T N 'p 1% SO -0 F n N n n II — •� n — N � N — — — N — n O � T p 'J� •G — 'O a0 •O T N — — — — — — N ,y of T O ^ .O •O •O r y N 01 N YJ ]�i of C ssi N T N •O N N N v1 n V n n N r 4 n r m = O b _ •O C p T 'O �O au •O T _ _ _ N) N � ? "S_ �•{ •C a � O � (SFr � � S •On v� S N P � a3 � � � T •O •C N N 9~O O M m N G] N � V1 a M I� np m•m m O m pT� p} T N m � �O '�pQ �!pO 8 8 nn .p. o ooI o 'O' O O M aid N T O� ['� N a a0 �_ !N+ O_t'O f FV N�N T I fn�1�`G i �I OI �� O r• N _' �I A T r �O T O�� O T� 'T �Nf N T NI M 1— ! N —1 N N• N 73 3 3 - s 3 39 Z R ' ORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda Item No. I y ACTION AGENDA ITEM ABSTRACT Meeting Date: December 2, 1996 SUBJECT: Revised Capital Funding Policy for School and County Capital Projects DEPARTMENT: County Manager/Budget PUBLIC HEARING: YES: NO: x BUDGET AMENDMENT: YES: NO: x ATTACHMENT(S): INFORMATION CONTACT: Revised Policy (1) John Link, ext 2300 Sally Kost, ext 2151 Current Capital Policy(2) TELEPHONE NUMBERS: Hillsborough -732-8181 Chapel Hill -968-4501 Durham -688-7331 Mebane -227-2031 PURPOSE To adopt a revised capital funding policy for School and County Capital Projects. BACKGROUND At the November 19 Board meeting,the Commissioners discussed the revised capital funding policy, which outlines the capital policy used in developing the Ten Year Capital Improvements Plan. This policy implements the funding approach as presented in Option 5B of the long range school capital funding plan, approved by the Board of Commissioners at their October 15, 1996 meeting. This option includes a combination of sales tax and property tax revenue for capital projects. The current policy (Attachment 2) provides that 80 percent of the Article 40 one half cent sales tax revenue and 60 percent of the Article 42 one half cent sales tax revenue is dedicated to School projects, with the balance of this revenue dedicated to County projects. The Board of Commissioners asked Staff to make certain revisions to the draft policy presented at the November 19 meeting. These revisions are: 1. Include in the policy,reference to the required uses (as stated in the General Statutes) of the Half Cent Sales Tax Revenue. • This information is included under Al of the policy. 2 2. Provide the information that was shown in Number 10 of the old policy (see Attachment 2). This includes reference to the planning period of the Capital Improvements Plan(ten years) and states the minimum project amounts for School and County projects. (See H on the revised policy at Attachment 1) Staff recommends no change in the minimum project amounts with one exception . County projects remain at a minimum of$30,000 and School projects remain at $50,000. Staff recommends that equipment be excluded from these minimum levels, and that equipment costing $1,000 or more, be considered as part of the Capital Improvements Plan. The intent of this change is to allow automation equipment/systems, vehicles, heating/cooling systems, to be part of the Capital Improvements Plan. The Manager has been in contact with the Superintendents of both school systems concerning the proposed capital funding policy, and will be prepared to respond verbally to the Board's questions. RECOMMENDATION The Manager recommends that the Board adopt the revised capital funding policy. 3 Attachment 1 Summary of Capital Policy (Note changes made to the November 19 draft are shown in bold print) A. Sources of Funds The following sources of funds will be allocated for Capital Projects and Debt Service: 1. All proceeds from the Article 40 and Article 42 one half sales tax The North Carolina General Statutes require that 30 percent of the Article 40 and 60 percent of the Article 42 sales tax revenue be earmarked for school capital projects or debt service on debt issued for school capital projects. 2. Revenue from the property tax as follows: • $800,000 • The equivalent of 2.7 cents on the tax rate based on valuation as of 1995-97. This earmarking will be adjusted each revaluation cycle. • The amount necessary to retire the 1992 School Bonds. (In 1997-98 this amount is $4.7 million.) • The amount of the reduction in the Human Services function of the County budget(equivalent of one half'of-one percent of the budget or $50,000) in 1994-95 for automation projects in Human Services. • Utilities Extension Fund - This amount may vary in that it based on the increase in property tax base as a result of expenditures in the Utilities Extension Capital project. The amount currently planned is $35,000 for 1997-98 and $25,000 for each year thereafter. 3. Impact Fees for each school system. 4. Public School Building Fund 5. Other revenues that are restricted including, payment-in-lieu, grant funds, rental revenue and inmate fees as a result of the new jail addition. B. Debt Service Prior to funds being allocated for specific projects, all debt service, including private placement financing will be subtracted from the unrestricted funding sources. C. Allocation All sources of unrestricted revenue, less debt service is then allocated between County and School projects based on 50 percent of the net amount for School projects and 50 percent of the net amount for County projects. Funding between 4 Attachment 1 the two school systems will be allocated based on the 10`h day enrollment adjusted each year. For example, the 10' day enrollment as of September 1996 will be the basis of the 1997-2007 Capital Improvements Plan. These percentages will be rounded to one decimal place. Impact fees will be projected and allocated to each school system, although these fees may be used to pay debt service. When impact fees are used to pay debt service, the equivalent amount of the projected impact fee will be allocated to each school system. For the first three years of the planning period (1997-98, 1998-99 and 1999-2000) impact fees are dedicated to the cost of the new schools. D. Funding Levels It is the intent of the Board of Commissioners to "hold harmless" School projects and County projects as identified by the amount of funding projected in the 1996- 2006 Capital Improvements Plan. To achieve this intention, the following funding options will be used: • The difference between the amount of general obligation debt service payments at the peak year of the debt schedule and the actual debt service payment will be earmarked for the Orange County Schools until the time that any shortfall that would have been realized by that system is made up. • _ For County projects, beginning in 1998-99 the equivalent of one cent on the general fund property tax rate will be necessary. The Board of Commissioners may at that time consider shifting the one cent capital reserve fund to be dedicated to County projects (see Capital Reserve section below). E. Capital Reserve The capital reserve fund, established by the Board of Commissioners in 1995-96 is equivalent to one cent on the General Fund Property Tax Rate (not adjusted for the 1997 revaluation of property but adjusted for revaluation of real property beyond the 1997 revaluation.) This reserve will accumulate during 1996-97 and 1997-98 with these funds used for site acquisition for schools and or recreation, or the combination of both. The Board of Commissioners will evaluate this reserve fund during 1998-99 to determine if this one cent reserve should continue. F. School/Parks/Recreation It is the intent of the Board of County Commissioners to evaluate each new proposed school in both School Districts for joint use to include park and recreation use. 5 Attachment 1 G. Recurring Capital Recurring capital for each School System will be based on the equivalent of three cents on the General Fund Property Tax Rate (not adjusted for the_1997 revaluation of real property but adjusted each revaluation thereafter.) Funds will be allocated to each school system based on the State Department of Public Instruction planning allocation which is the same method used to allocate current expense appropriation. H. Planning Period During each fiscal year, the Board of Commissioners shall adopt a ten year Capital Improvements Plan. The ten year plan shall include anticipated County capital expenditures costing $30,000 or more excluding equipment and anticipated school capital expenditures costing $50,000 or more, excluding equipment. Equipment, costing $1,000 or more can be considered as part of the Capital Improvements Plan. The first year of the adopted Ten Year_fanik'1 Im. provements Plan shall be L7,COrpnr2ted into the next annual operating budget recommended by the County Manager. 6 Attachment 2 POLICY FOR INTO T POLIC'j HA-"Tu=tL FETING DATE: Sectember 22 , 1987 NL'43ER: P: 0290 EFFECTIVE DATE: Sentember 22 , 1987 R 7IISIONS • POLICY: ORMGE COUNTY CAPITAL POLICIES I. Eighty percent (80%) of the original half-cent sales tax revenue and sixty percent (60%) of the additional half- cent sales tax revenue shall be dedicated to school. capital expenditures. Such expenditures shall be limited to acquisitions of or improvements to land, buildings, and equipment costing $50, 000 or more. Any year in which such revenues exceed such expenditures, the excess shall be transferred to the School Capital Reserve Fund. 2 . Twenty percent (20%) of the original half-cent sales tax revenue and forty percent (40%) of the additional half- cent sales tax revenue shall be dedicated to county capital expenditures. Such expenditures shall be limited to acquisitions of or improvements to land, buildings, end_ emi.i,pment costing $30 . 000 car more. Any year in which such revenues exceed such expenditures, the excess shall be transferred to the County Capital Reserve Fund. 3 . The School Capital Reserve Fund shall be used to accumulate funds for acquisitions of or improvements to land, buildings, and equipment for school purposes costing $50, 000 or more. 4 . The County Reserve Fund shall be used to accumulate funds for acquisitions of or improvements to land, buildings, and equipment for county purposes costing $30, 000 or more. 5 . A vehicle Capital Reserve Fund shall be established and used to accumulate funds for the acquisitions of county vehicles. 6 . Each year, an amount equal to $800, 000 minus the amount required for that year' s debt service on school bonds issued prior to the 1987-88 fiscal year shall be appropriated in the General Fund budget and transferred to the School Capital Reserve Fund. Attachment 2 7 . Debt incurred under the "taro-thirds net debt reduceion" rule shall be limited to instances where the health and safety of Orange County citizens are threatened. 3 . The amount to be appropriated to each school system for recurring capital expenditures shall be $750 , 000 . This appropriation shall be in effect for a period of at least five years and includes funds for roof repairs . 9 . County capital expenditures with a cost of $30, 000 or more anc. useful life of at least five years shall be considered capital projects and accounted for in capital project funds. 10 . During each fiscal year, the Board shall adopt a Five- Year Capital Improvements Program. The Fzve-Year Program shall include anticipated county capital expenditures costing $30, 000 or more and anticipated school capital expenditures costing $50 , 000 or more, as well as available financing sources . The first year of `.he dopted -Year Capital Improvements Program shall ccrporate into the .riext annual operating budget -� er-led *.o the County Manager.