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Home My WebLink AboutAgenda - 04-06-2017 - 1 - Discussion of Manager's Recommended FY 2017-22 Capital Investment Plan (CIP) 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: April 6, 2017 Action Agenda Item No. 1 SUBJECT: Discussion of Manager's Recommended FY 2017-22 Capital Investment Plan (CIP) DEPARTMENT: County Manager and Finance and Administrative Services ATTACHMENT(S): INFORMATION CONTACT: Bonnie Hammersley, (919) 245- Previously Provided Under Separate 2300 Cover—Also Available Online: Travis Myren, (919) 245-2308 Manager Recommended FY2017-22 Gary Donaldson, (919) 245-2453 County Capital Investment Plan Paul Laughton, (919) 245-2152 http://www.orangecountync.gov/departme nts/finance and administrative services.p PURPOSE: To discuss the Manager's Recommended FY 2017-22 Capital Investment Plan. BACKGROUND: Each year, the County produces a Capital Investment Plan (CIP) that establishes a budget planning guide related to capital needs for the County as well as Schools. The current CIP consists of a 5-year plan that is evaluated annually to include year-to-year changes in priorities, needs, and available resources. Approval of the CIP commits the County to the first year funding only of the capital projects; all other years are used as a planning tool and serves as a financial plan. Capital Investment Plan — Overview The FY 2017-22 CIP includes County Projects, School Projects, and Proprietary Projects. The School Projects include Chapel Hill Carrboro City Schools, Orange County Schools, and Durham Technical Community College — Orange County Campus projects. The Proprietary Projects include Water and Sewer, Solid Waste Enterprise Fund, and Sportsplex projects. The CIP has been prepared anticipating slow to moderate economic growth of approximately 1% in property tax growth and 4% in sales tax growth annually over the next five years. Many of the projects in the CIP will rely on debt financing to fund the projects. Tonight's discussion will be focused on County and Proprietary CIP projects. Discussion of the Schools CIP projects is scheduled for the April 25, 2017 Joint County/School Boards Meeting. CIP document page #'s are provided after each project, with funding recommended for FY 2 2017-18 within the following categories (consistent with the Manager's CIP presentation on April 4, 2017): Continuation Funding (FY 2017-18): • Detention Facility - $622,114 (page 30) • Environment and Agriculture Center - $3A million (page 31) • Solid Waste - $990,268 (pages 88, 91, and 94 ) • Sportsplex - $465,000 (pages 101, 102, 103, and 106) Policy Priorities (FY 2017-18): • Community Centers - $75,000 (page 73) • Economic Development (Water and Sewer) - $2.3 million (pages 80-82) • EMS Substation Co-location - $845,000 (pages 53-54) • Facility Accessibility and Security - $30,000 (page 32) • Rural Broadband - $500,000 (page 47) Parks, Open Space, and Trail Development (FY 2017-18): • Blackwood Farm Park - $100,000 (page 58) • Fairview Park Improvements - $50,000 (page 72) • Hollow Rock Nature Park (New Hope Preserve) - $10,000 (page 67) • Park Facilities Renovations and Repairs - $191,000 (page 76) • Soccer.com Soccer Center (Phase II) - $300,000 (page 63) Information Technology and Communications (FY 2017-18): • BOCC Technology Initiatives - $50,000 (page 50) • Information Technology Infrastructure - $700,000 (page 50) • Fiber Connections - $1.2 million (page 48) • IT Governance Council Initiatives - $510,000 (page 49) • Communication Systems Improvements(Sheriff replacement radios)- $920,000 (page 51) • Public Safety Communication Upgrades - $1A million (page 52) • Register of Deeds Automation - $400,000 (page 56) Critical Infrastructure Improvements (FY 2017-18): • Facility Enhancements (Government Services Annex, Lower Link Center Upfit, Old Courthouse Square — Building/Grounds) - $450,000 (pages 34, 37, and 39) • HVAC Projects - $122,000 (page 36) • Southern Human Services Campus Expansion - $4.0 million (page 45) • Roofing and Building Façade Projects - $102,444 (page 42) Discussion will also be directed to recommended Future Capital Projects in Years 2-5 of the CIP (FY 2018-19 through FY 2021-22); discussion and review of the Debt Service and Debt Capacity — General Fund (page 175), the Water and Sewer Debt Service requirements paid with Article 46 Quarter Cent Sales Tax proceeds (page 176), and Debt Service requirements for Solid Waste (page 177) and Sportsplex (page 178). FINANCIAL IMPACT: There is no immediate financial impact associated with discussion of the FY 2017-22 Capital Investment Plan. It is a long-range financial planning tool with a financial 3 impact in FY 2017-18, if the first year of the CIP is approved by the Board of County Commissioners with the adoption of the Annual Budget. The Board of County Commissioners will have an opportunity to review the 5-year CIP financial impact and prioritize long term projects at the May 25, 2017 Budget work session. SOCIAL JUSTICE IMPACT: There is no Orange County Social Justice Goal Impact associated with discussion of this item. RECOMMENDATION(S): The Manager recommends the Board review and discuss the Manager's Recommended FY 2017-22 Capital Investment Plan and provide direction to staff.