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HomeMy WebLinkAboutAgenda - 06-15-2017 - 2. Accept the FY 2017-22 CIP and Approve the Intent to Adopt Capital Funding for FY2017-18 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 15, 2017 Action Agenda Item No. 2 SUBJECT: FY2017-22 Capital Investment Plan - Accept the Five Year Capital Investment Plan and Approve the Intent to Adopt Capital Funding for FY2017-18 DEPARTMENT: County Manager and Finance and Administrative Services ATTACHMENT(S): INFORMATION CONTACT: Attachment 1. Revisions to Capital Bonnie Hammersley, (919) 245-2300 Investment Plan Projects Travis Myren, (919) 245-2308 Gary Donaldson, (919) 245-2453 Paul Laughton, (919) 245-2152 PURPOSE: FY2017-22 Capital Investment Plan - Accept the Five Year Capital Investment Plan and Approve the Intent to Adopt Capital Funding for FY2017-18. BACKGROUND: For over 20 years, the County has produced 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`)/0 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. Attachment 1 includes revisions to the following Capital Projects since the presentation of the Manager's Recommended Capital Investment Plan on April 4, 2017: County Capital Projects: • Parking Lot Improvements • Southern Orange Campus Expansion • Information Technology Fiber Connectivity • Information Technologies Governance Council Initiatives • EMS Substations • Orange County Radio/Paging System Upgrades • Register of Deeds Automation • Blackwood Farm Park • Mil!house Road Park • Northeast District Park • Detention Center (change to Project Description only) • Environment and Agriculture Center (change to Project Description only) • Orange County Southern Branch Library (change to name of project as well as to Project Description) School Projects: • Durham Technical Community College (Orange County Campus) • As mentioned in the June 13, 2017 Budget Work Session abstract, adjustments have been made to the School Capital Projects in regards to the FY 2017-18 budgeted ADM percentages, as well as budgeted Article 46 Sales Tax proceeds, to be consistent with the FY 2017-18 Manager's Recommended Operating Budget. Water and Sewer Projects: • Buckhorn EDD — Efland Sewer to Mebane, Phase 2 Extension FINANCIAL IMPACT: The Five Year Capital Investment Plan is a long-range financial planning tool with a financial impact in FY2017-22, if the first year of the CIP is approved by the Board of County Commissioners with the adoption of the Annual Operating Budget. SOCIAL JUSTICE IMPACT: There are no Social Justice Goal impacts associated with this item. RECOMMENDATION(S): The Manager recommends that the Board accept the Five Year Capital Investment Plan and Approve the Intent to Adopt Capital Funding for FY2017-18.