HomeMy WebLinkAboutAgenda - 03-12-2008-21
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: March 12, 2008
Action Agenda
Item No. 2
SUBJECT: Discussion Regarding the Proposed 2008-18 Capital Investment Plan (CIP}
DEPARTMENT: County Manager,
Budget, Purchasing
PUBLIC HEARING: {YIN) No
ATTACHMENT{S):
Attachment 1. Gounty-Owned Properties
Attachment 2. Tentative Proposed Debt
Issuance Plans to Meet Unfunded County
and Schools' Capital Needs
INFORMATION CONTACT:
Laura Blackmon, 919-245-2300
Donna Goffey, 919-245-2151
Pam Jones, 919-245-2152
PURPOSE: To discuss and provide feedback to staff regarding the County's proposed 2008-18
Capital Investment Plan to include County-owned properties and tentative proposed debt
issuance plans.
BACKGROUND: Over the last few months, the Board has had a number of discussions
regarding the proposed ten-year capital plan for County and School facilities. During tonight's
work session, staff recommends that the Board discuss two items: (1 }County owned property
and possible disposal options for some properties; and (2} tentative proposed debt issuance
plans to meet unfunded County and Schools' capital needs.
1. County Owned Property and Possible Disposal Options for Some Properties
Attachment 1 of this agenda abstract is an inventory of currently owned county property.
C?ver the last few months, the Board has expressed interest in the Gounty divesting itself
of some of its holdings -especially in light of new facilities coming an-line in the near
future. During tonight's work session, staff would find it helpful for the Board to dialogue
and provide feedback regarding ideas and direction for staff to pursue.
2. Tentative Proposed Debt Issuance Plans To Meet Unfunded County And Schools'
Capital Needs
At the March 6 regular Commissioners meeting, the Board approved along-range plan to
satisfy space needs for Human Services agencies. That plan included:
~ Lease/purchase the space previously occupied by Wal-Mart at the Hillsborough
Commons shopping center for use by DSS immediately;
/ Purchase the shopping center no later than February 2012 for relocation of human
services departments currently located at the Whitted Building in Hillsborough
/ Relocate Human Services Departments from the Whitted Human Services Center to
Hillsborough Commons
/ Add approximately 15,000 square feet to the SHSC to accommodate growth of the
Health Department, including the Dental Clinic and other departments that currently
occupy the facility
/ Determine options for future uses of the Whitted Center
That night, the Board directed staff to develop a plan that demonstrates how the
purchase and up fit of the Hillsborough Gommons would factor into the County's overall
future debt plans. Attachment 2 of this agenda abstract, Tentative Proposed Debt
Issuance Plans to Meet Unfunded Gounty and Schools' Capital Needs, offers a tentative
debt-funding plan that would allow the County to fund, with debt, the major Gounty and
Schools' projects that fall beyond the currently available pay-as-you-go funding stream.
In summary, the plan proposes seeking voter approval far General Obligation Bands in
2008 and 2013 plus issuing alternative financing in 2012 to complete the Hillsborough
Gommons plans approved by the Board on March 6, 2008. As outlined, the plans,
totaling $314 million, would meet currently identified County and Schools' capital facility
needs into the year 2017.
During tonight's discussion, staff seeks the Board's feedback regarding the tentative
proposed plan and possible options to mitigate the tax rate impact of the debt.
FINANCIAL IMPACT: As mentioned previously, the tentative debt issuance plan proposes that
the Gounty use General Obligation Bands and alternative financing to fund $314 million in
County and Schools' projects. In September 2006, the Board agreed far staff to assume an
annual increase in the County's General Fund of 7 percent. The current Debt Management
Policy allows annual debt service payments to be na more than 15 percent of the total General
Fund budget. According to Board approved assumptions and current staff calculations, the
proposed amounts will allow the County to remain within the Board's approved Debt
Management Policy.
RECOMNIENDATION(S}; The Manager recommends that the Board discuss the County's
proposed 2008-18 Capital Investment Plan including County-owned properties and tentative
proposed debt issuance plans and provide feedback to staff.