HomeMy WebLinkAboutAgenda - 06-12-2018 Item 2 - Discussion and Decisions of FY2018-19 Capital Investment Plan
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 12, 2018
Action Agenda
Item No. 2
SUBJECT: Discussion and Decisions of FY2018-19 Capital Investment Plan
DEPARTMENT: County Manager and Finance and Administrative Services
ATTACHMENT(S):
A. Revisions to Capital Investment Plan
Projects
B. FY2018-23 Capital Investment Plan
Budget Amendment List
(To be provided at the meeting)
INFORMATION CONTACT:
Bonnie Hammersley, (919) 245-2300
Travis Myren, (919) 245-2308
Gary Donaldson, (919) 245-2453
Paul Laughton, (919) 245-2152
PURPOSE: FY2018-23 Capital Investment Plan - Accept the Five Year Capital Investment Plan
and Approve the Intent to Adopt Capital Funding for FY2018-19.
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 2018-23 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 moderate economic growth of approximately 2% 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 A includes revisions to the following Capital Projects since the presentation of the
Manager’s Recommended Capital Investment Plan on April 3, 2018:
County Projects:
• On April 3, 2018, the Board of County Commissioners approved the acquisition of
approximately 21 acres located within the Hillsborough Highway 70/Cornelius Street
corridor, known as the “Hwy 70 Site Assembly” for the development of an Orange County
Northern Campus site to include the Detention Center, Environment and Agriculture
Center, and the Parks Operations Base. At the April 3, 2018 CIP presentation, these
three projects were presented as separate projects. See Attachment A for a Revised
Summary which combines these three projects into an Orange County Northern Campus
project.
School Projects:
• Adjustments have been made to the School Capital Projects in regards to the FY 2018-
19 budgeted ADM percentages, based on changes made from the time of the CIP
presentation and the FY 2018-19 Manager’s Recommended Operating Budget
presentation. The changes were due to updated Charter student #’s, as well as updated
Out of District #’s. The impact of these #’s changed the CHCCS % from 60.70% to
60.73%, and changed the OCS % from 39.30% to 39.27%. The monetary impact of
these changes over Years 1-5 results in CHCCS receiving approximately $16,500 in
additional funding and OCS receiving approximately $16,500 in reduced funding.
• The CIP presented on April 3, 2018 included issuing CHCCS’s full bond approval amount
of $72,108,000 in FY 2017-18, but at their June 5, 2018 meeting, the BOCC approved
issuing $69,400,000 in FY 2017-18, with the remaining amount of $2,708,000 to be
issued in FY 2021-22.
FINANCIAL IMPACT: The Five Year Capital Investment Plan is a long-range financial planning
tool with a financial impact in FY2018-23, 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 FY2018-19.