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HomeMy WebLinkAboutAgenda - 11-13-2007-3ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: November 13, 2007 Action Agenda Item No. :~ SUBJECT• Discussion of Recommended 2008-18 County Capital Investment Plan DEPARTMENT: Budget Office ~ PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: Donna Coffey, Budget Director PURPOSE: To offer the Board an opportunity to exchange ideas about and provide direction to staff on the Recommended 2008-18 County Capital Investment Plan (CIP) prior to the November 15, 2007 public hearing and planned December 3, 2007 adoption of the long range plan. BACKGROUND: .Each year, Orange County invests considerable financial resources in acquiring, constructing, maintaining, operating and paying debt for School, County and Town capital facilities that meet a variety of past, current and future community needs. Given the significant investment that Commissioners devote to these expenses, it is critical to have solid planning tools in place that provide the foundation for making sound informed decisions for the future. The CIP as A Planning Tool The proposed 2008-18 CIP identifies aten-year span of funded and unfunded County and School needs necessary to continue delivery of services to our community. It is a financial plan that adheres to the County Capital Funding and Debt Management Policies. ~k Comprehensive Financial Plan -Planning for future investments should be strategic and encompass a "big picture" approach meaning that in addition to initial capital outlays to acquire, construct or develop the project itself, consideration must be given to the full financial impact of the project including the on-going costs that occur after construction/development is complete. On-going costs, including staffing, annual operating and maintenance as well as repayment of debt, will affect future County annual operating budgets and tax rates. In years where there are a number of projects coming on-line at one time, these costs can be substantial. Over the last few .years, the County has seen fiscal constraints mount. While the County's tax base remains stable, community demands for services continue to grow. In addition, the State financial support has diminished in spite of increased mandates that cost local governments and their residents. This is even more reason for being strategic in decisions about timing and affordability -when to undertake projects, when those projects actually come on-line and what the financial and tax rate impact will be. The layout of the CIP is designed to offer a comprehensive picture of the impact of each individual project, and to serve as a planning and informational tool that will assist the Board in making informed future decisions. ..~ Reserve Funds -The plan allocates a portion of projected available pay-as-you-go funding to specific County projects that have clearly defined plans, and it reserves some pay-as-you-go monies for those County projects that are not as clearly defined at this time. For example, the plan sets aside reserve monies. for the anticipated implementation of the Library Services Task Force Report since it is likely that the Report will include recommendations for capital facilities; however, the Board has not yet received the report and therefore not had an opportunity to take action on it. Reserving the funds demonstrates the Board's commitment to the need for future Library services and it also allows Commissioners time to consider the full impact of ,the Report with the assurance that funding is in place to implement the outcome of their decisions. "Living Plans" -All of these reasons reinforce the need for having comprehensive multi- year planning tools such as long-range capital plans and financial forecasts in place. However, it is also important to remember that long-range financial plans, including the CIP, are "living plans". This means that each year, staff and the Board can reassess previously identified needs to determine if future needs remain the same as those outlined in past approved plans, or if needs and priorities have changed, the appropriate revisions to previously adopted/approved plans can be made. Next Steps -~k November 15, 2007 -Public Hearing to receive comments regarding the 2008-18 Recommended CIP and Commissioners provide further direction to staff regarding the final 2008-18 CIP. ~:~ Late November 2007 -Staff incorporates direction provided by the Board during tonight's work session as well as Board direction that may follow the, public hearing scheduled for November 15, 2007 into~the 2008-18 CIP. December 3, 2007 Regular Meeting -Board of County Commissioners recognizes School and County capital needs by adapting the proposed ten-year plan at its December 3 regular meeting. ~k January 2008 Work Session -Board and staff discuss future CIP related revenue and policy considerations including future use of Local Revenue Options and unfunded County and school projects. March 18, 2008 Regular Meeting - In accordance with August 30, 2007 Board approved timeline, Commissioners adopt Schools and County 2008-09 Capital Budget and corresponding capital project ordinances that authorize capital expenditures for the upcoming fiscal year. o Capital Budget -the first year of the multi-year Capital Investment Plan -ak October 14, 2008 -Staff presents updated 2009-19 Capital Investment Plan FINANCIAL IMPACT: The table below summarizes identified capital funding needs for the County, Chapel Hill Carrboro City Schools and.Orange County Schools. 2008-18 Identified County and School Capital Needs Summary of Funded and Unfunded Needs Dollar amounts are shown in millions of dollars Funded Unfunded Total Orange County Local Government $146.6 $74.4 $221.0 Chapel Hill Carrboro Cit Schools $39.7 $233.3 $273.0 Orange County Schools $29.6 $0.0 $29.6 Total 2008-18 County and School Capital Needs $215.9 $307.7 $523.6 RECOMMENDATION(S): The Manager recommends that the Board exchange ideas about and provide direction to staff on the Recommended 2008-18 County Capital Investment Plan (CIP) prior to the November 15, 2007 public hearing and planned December 3, 2007 adoption of the long range plan.