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Home My WebLink AboutAgenda - 11-16-2004 - 6bORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: November 16, 2004 Action Agen a Item No. - SUBJECT: School/County Capital Funding DEPARTMENT: Commissioners/Manager PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Proposed Resolution Chart -Long Range Capital Funding Since 1988 Table -Recap of Long Range Capital Funding Since 1988 Table -Voter Approved Bond Issues Since 1988 Table -Alternative Financing INFORMATION CONTACT: Barry Jacobs, ext 2125 Rod Visser, ext 2300 TELEPHONE NUMBERS: Hillsborough Chapel Hill Durham Mebane 732-8181 968-4501 688-7331 336-227-2031 PURPOSE: To consider a draft resolution governing the expenditure of capital funds an Orange County government and public school facilities. BACKGROUND: At the October 25, 2004 work session of the Orange County Board of Commissioners, the Chair introduced a draft resolution that proposed increased attention to and capital funding commitment to the growing list of County government facilities in need of construction, expansion, or enhancement. The resolution specifically proposed that for the decade beginning in 2005, that the County implement a policy of targeting 60 percent of capital expenditures for school projects and 40 percent for County projects. School impact fees and Public School Building Capital Funds (distributed by the State to counties on behalf of school systems based on a portion of State corporate income taxes collected) are not included in this policy and would accordingly be available to bath school systems in addition to the 60 percent school share of capital funding proceeds. The Board did not act on the resolution at that meeting, but directed staff to bring it back for discussion and consideration at the November 16, 2004 regular meeting. Staff have compiled a number of attachments that document the allocation of capital funding over the past fifteen years or so by the major capital revenue categories. Staff plan to provide a more detailed PowerPoint presentation at the November 16 meeting regarding both historical capital allocations and many (but not necessarily all) of the anticipated major school and County capital project needs, both funded and unfunded. Since the introduction of the proposed resolution, some concerns have been voiced regarding the policy implications for needed new school facilities. It is important to note that in any case, the Board of Commissioners remains firmly committed, as a signatory to the Schools Adequate Public Facilities Ordinance memoranda of understanding, to the timely funding and construction of new school facilities that are needed based on SAPFO-related student membership projections. Furthermore, the County's historical practice of engaging Capital Needs Advisory Task Forces to review and make recommendations to the BOCC regarding projects for inclusion in the four bond referenda since 1988 provides reasonable assurance that bath school and County major capital projects will receive appropriate consideration in the development of the County's next bond package. FINANCIAL IMPACT: The Board's consideration of the proposed target for school and County capital funding will shape the County's next ten-year Capital Investment Plan, Whatever decisions the Board makes in this regard will be incorporated by staff into needed revisions to the County's Capital Funding Policy, as discussed and endorsed by the Board at the October 25, 2004, At this point, staff would anticipate bringing the revised Capital Funding Policy back for Board consideration by Spring 2005, in conjunction with development of the 2005-15 CIP. RECOMMENDATION(S): The Manager recommends that the Board consider adopting in principle the attached resolution, or a modified version thereof, sending it to the two Boards of Education for review and comment, and considering it further thereafter for formal adoption. 3 A RESOLUTION GOVERNING THE EXPENDITURE OF CAPITAL FUNDS ON ORANGE COUNTY GOVERNMENT AND PUBLIC SCHOOL STRUCTURES WHEREAS, the Orange County Board of Commissioners has adopted a Schools Adequate Public Facilities Ordinance that makes predictable the development of school facilities for the next decade; and, WIiEREAS, the County dedicated 77 percent of its capital expenditures for school purposes over the 15-year period from 1988 through 200.3; and, WHEREAS, during that same period necessary capita] expenditures for County projects were deferred, delayed, or curtailed due to lack of sufficient funds; and WHEREAS, there is a large backlog of building construction necessary to meet the needs of a growing county that require a determined effort to bring to bear additional capital resources in a timely manner. NOW, THEREFORE, BE IT RESOLVED that the Orange County Board of Commissioners does hereby adopt a policy of allocating a target of 60 percent of capital expenditures for school projects and 40 percent of capital expenditures for county projects over the decade beginning in calendar year 2005. This the 25th day of October, 2004. L~ _ . ~ ~ d' O (.~.. O ~ N C „ .~ ~ ~ V ~ ~ d. ~ 0 ~ ~ ~ ^ i.. J ~ ~ `'- o0 O ~ ~. ~ ca V a c c~ 0 O N N o -~ Z~ ~' o ~o `, o ~ N ~ i C ~ (II j m_ E v O ,tq ~L "' ~ p) c ~ ~~ ems'- N O ~ O ~ N `, ~a ~ ~ ~ ~ ~ O ~ ~ ~~ ~~ ~~ n. m~ 't7 N ~a o ~ Q i a U C ~. d c ~ N a " o ~ •n L 0 V ~ ~ ~ ,o ~ E 0 a.+ ~ ~ ._' d' °- n N ati~ 0 t v N .,.. v a~ .~ 0 a O O L V 0 N r V d O C1. d C Rf o. >, 0 V c ~ 0 ~ ~ L 0 U o o °~ o ~ U +L-~ c~ o a`~i o m "- H~ ~ ,> N (0 ~ ~` ~~ N ~ U ~ ~ `+- t6 `- 0 S w ~ .~ c ~ O ~ N ~ d' ~ ~ ~ ~ ~ a U_ ~ ~ Q ~ O O ~ .~ ~~ ~~ ~, X ~- Q. ~o U ~- c -o o m ~ U u ~ o ~ C~ ~ ~ ~ o ~° } ~ ~ ~ Q ~ ~ ~- ~ U ~ ~ .-. a r- E ~_ nnv 5 Recap of Long Range Capital Funding 1988 Through Fiscal Year 2003-04 ('I scneels l D T t bt County ; o a e Issued CHCCS OCS i. Bond Referenda $ Amount % of Total S Amount % of Total "S Amount °/ of Total 1a 1968 Bond Referendum Ixl 529.000.000 :513 000,000 44.8% 59,000,000 31.0°/ 67,000,000 '. 24.1% 1b 1992 Bond Referendum 552,000,000 1536 000,000 69.2% 516,000,000 30.8°/ '. '.50 ' -0.0% 1c. 19978ond Referendum 556.000.000 524,000,000 '. 42.9% 523,000,000 41.1°/ 59,000,000 16.1° 1d. 2001 Bond Referendum 575.000.000 527,600,000 36.8% 519,400,000 25.9°/ '. 528,000,000 '37.3° Total Bonds 5212,000,000 5100,600,000 47.5% 567,400,000 31.8% Total School '. Related Total Coupty Bonds $168,000,000 79.2% Related Bonds 544,000,000 20.8° 2. Alternative Financing Alternative Financing Issued 853,084.097 523,600,000 `. 44.5% 514,615,000 27.5% 514,869,097 28.0% Between 1988 and November 2004 Total School Total County '. Related Related Alternative Alternative Filiancing '538,215,000 72.0% Financing $14,869,097 38.0% Total Debt Financing for Long Range School and County Capital 8265,084,097 8206,215,000 77.8% :. 558,869,097 22,2% Pro ects Total Debt Financing for Long '. Range School Capital Projects by ' 5206,215,000 5124,200,000 46,9% $82,015,000 30,9% District 3. Pav-As•You-Go-Funding 3a Budgeted Pay-AS-You-Go Funding (Excluding Public School Building Funds and School 564,732,297 ! $38,110,387 58.9% 526 621,910 41.1% Construction Impact Fees) 1988 Through Fiscal Year 2003.04 3b. Budgeted Pay-AS-You-Go Funding (Public School Building Funds and School Construction 510,565,970 $10,565,970 100.0% 59 0.0% Impact Fees) 1988 Through Fiscal Year 2003-04 Total PayAsNowGo Funding 1968 575,298,267 548,676,357 84.6% : $26,621,910 35.4% Through Fiscal Year 2003-04 - Grand Total Long Range Capital Funding 1988 Through Fiscal Year 5340,382,364 5254,891,357 .74.9% 585,491,007 .25.1 2003-04 I'I As of November 12. 2004 1PI The 1988 bontl included 57 million far water resources; the County tlid not issue These bonds and Therefore. the S7 million is not rellecletl on This chatl 11/~ 6 Orange County Voter Approved Bond Issues Since 1988 1988 Bond Referendum Chapel Hill-Carrboro City Schools Chapel Hill High 24 new classrooms & extensive renovations to accommodate ninth graders $6,400,000 Phillips Middle 4 new classrooms, renovations of science & support areas $2,000,000 Culbreth Middle 5 new classrooms $600,000 Seawell Elementary 9 new classrooms & multipurpose building $2,500,000 Carrboro Elementary 7 new classrooms library & support areas $1,500,000 ,Orange County Schools New Hope Elementary Total Chapel Hill-Carrboro City Schools Construction of New Hope Elementary $5,900,000 Cameron Park 3 new classrooms, libra & su ort areas $1,300,000 (:antral Flamanfarv 5 new classrooms & bathrooms $480,000 A.L. Stanback Middle (now Renovate `L buildings yru4,uuu Hillsborough Elementary School Total Orange County Schools Orange County Local Government Southern Human Services Construction of new human services center in Chapel $3,000,000 Center Hill area Government Services Center Construction of new Government Services Center $2,300,000 located in Hillsborou h Public Works Facilit Construction of new Public Works $1,100,000 911 Center Addition to Emer enc Mana ement/911 Center $300,000 Animal Shelter Expansion Addition to Animal Shelter located off of Airport Road in $300,000 Cha el Hill Total Orange County Local Govemment Water Resources I'I Land purchase for new reservoir ~~~ Bonds were not sold Total 1988 Bond Referendun $13,000,000 i $9, 000, 000 I $7, 000, 000 $1, 000, 000 1992 Bond Referendum Chapel Hill-Carrboro City Schools McDou le Middle Construction of new middle school $14,000,000 East Cha el Hill Hi h Construction of new hi h school $22,000,000 Total Chapel Hill-Carrboro City Schools $36,000,000 Orange County Schools A.L. Stanback Middle Construction of new middle school $14,000,000 Technolo Im rovements to District's technolo com onents $2,000,000 Total Orange County Schools $16,000,000 Total 1992 Bond Referendum $52,000,000 „~,~ 7 1997 Bond Referendum Chapel Hill-Carrboro City Schools Smith Middle School Construction of new middle school East Chapel Hill High Addition Addition to East Chapel Hill High to increase capacity to 1,500 students Estes Hills Elementary Major renovations Glenwood Elementary Major renovations Chapel Hill High Addition of an auditorium Phillips Middle Addition/upgrades of restrooms Ephesus Elementary Addition/upgrades of restrooms Seawell Elementary Replace heating system Orange County Schools Pathways Elementary Total Chapel Hill-Carrboro City Schools Construction of new elementary school Park renovations electrical service at all p roofinc systems at four $24,000,000 ~ _ Energy Management Install energy management systems at all schools $500 000 Total Orange County Schools $23,000,000 Orange County Local Government Affordable Housing Funds to leverage federal, state, private and other local $1,800,000 funds for land acquisition, housing development and home ownership Fflanrl Rawar Rvctam Fxnansion of sewer system located in Efland $1.200.000 Recreation Facilities Purchase Park Land $3,000,000 Develop park facilities including Chapel Hill Southern $3,000,000 Community School Park ($1 M); Northern Chapel Hill Park ($1 M); Efland-Cheeks Community School Park ($.5 M) Other park facilities ($.5 M) Total Orange County Locaf Government $9,000,000 Total 1997 Bond Referendum $56,000,000 „~1 S 2001 Bond Referendum Hill County Schools school Schools middle school 31 Orange County Schools range Gounty Local Government Affordable Housing Funds to leverage federal, state, private and other local funds for land acquisition, housing development and Facilities Cheeks Smith Orange County Local Government 1988 $29,000,000 1 gg2 $52,000,000 1gg7 $56,000,000 2001 $75,000,000 Total Voter A roved Bond Issues Since 1988 $212,000,000 Vntnr Annrnvarl Rnnd Issues Sins 19A8 $ Amount $27, 600, 000 $19, 400, 000 $28, 000, 000 2) Voter Approved Bond Issues Since 1988 by Entity $ Amount % of Total Cha el Hill Carrboro Cii Schools $100,600,000 47.5% Oran e Count Schools $67,400,000 31.8% Sub-Total $168,000,000 79.2% Oran e Count Local Government(~1 $44,000,000 20.8% Total Alternative Financin B Entit $212,000,000 100.0% $4,000,000 at The 1988 bond included 51 million far water resources; the County did not issue These bonds and therefore. the 51 million is not reflected on this chart t vrvo~ l9 Alternative Financing 1. Alternative tlOanCing Issuea rsetween -iyaa ana rvuvenwe~ wv4 Chapel Hill-Carrboro City Schools McDouele Elementary Construction Issued: 1995 $23, 600, 000 I Drange County Schools Cedar Ridge High School Construction Issued: 2000 $13,865,000 (OCS share) Orange Hioh School Renovations Issued: 2002 i'i $950,000 $14, 615, 000 I Orange Counfy Local Government Jail/Courthouse Expansion Issued: 1996 $2,000,000 Skills Development Purchase & Issued: 1996 $650,000 Renovation Skills Development Purchase & Issued: 1996 $550,000 Renovation Skills Development Purchase & Issued: 1998 $780,000 Renovation 129 West King Street (Purchasing & Issued: 2000 $338,000 Central Services Buildino) Purchase 7 Mile Creek Purchase Issued: 2uu0 ~43V,r4/ Two-Thirds Net Debt Reduction Bonds for Whitted and Northern Human Issued: 2000 $2,875,000 Services Center Renovations 112/118 North Churton Street (Clerk of Issued: 2002 $445,000 Courts) Purchase Conservation Easements Issued: 2002 t'i $1,000,000 Orange County Campus of Durham Technical Community College Land Issued: 2002 i'i $1,000,000 Purchase Orange Enterprises Renovations Issued: 2002 i'i $525,000 Two-Thirds Net Debt Reduction Bonds Issued: 2002 t'I $4,200,000 for County Facilities Total Orange County Local Government $14,869,097 Total Alternative Financing Issued Between 1988 and November 2004 $53,084, i..~.. nnnn I,.... ~..........£ T..,.. Tt,t.li.- A~nV noF.t Cin~nrinn fAorli iriinn Rnnrlc /fnr Cni Inhi fa Oil i4iPC1 anti CeNifratf:c of Participation (COPs) izi In accordance with October 25, 2004 Debt Issuance Schedule 17/12/ ~~ Alternative Financing 2. Committed Alternative Financing Programmed Into County's Current Debt Issuance Schedule (Planned for Issuance Between November 2004 and June 2008) IZi Hill-Carrboro City Schools Planned FY mge County Schools additional alternative financing committed/programmed into County's current debt lance schedule range County Local Government Conservation Easements FY 2004-05 FY 2006-07 Satellite Campus of Planned Issuance: FY 2004-05 12,800,000 $4,700,000 $4,300,000 $4,300,000 $26,100,000 $0 $0 $1,250,000 $750,000 $2,150,000 $3,000,000 $4,000,000 $4,500,000 $6,300,000 $21,95Q,Q00 Total Committed Alternative Financing Programmed Into County's Current Debt Issuance Schedule (Planned for Issuance Between November 2004 and June 2008) (2) $48,050,000 ,..,.. noon ~ ................F T..... Th{..A.. n~..4 fl..L.t Cin nnninn Onrlnrfinn Clnnrlc (for Cn~tnty faril itiacl anti r~PrflfCatPC of Participation (COPS) izi In accordance with October 25, 2004 Debt Issuance Schedule AltornativP Finanrinn Issued and Committed $ Amount -- Issued Between 1988 and November 2004 $53,084,097 Committed and Programmed into County's Current Debt Issuance Schedule (Planned for Issuance Between $48,050,000 November 2004 and June 2008 (2) Total Alternative Financing Issued and Committed $101,134,097 DlfnrnativP Finanrinn Rv Fntity !~ Amnllnt °/ of Total Cha el Hill Carrboro Cit Schools $49,700,000 49.1% Oran e Count Schools $14,615,000 14.5% Sub-Total $64,315,000 63.6% Oran e Count Local Government $36,819,097 36.4% Total Alternative Financin B Entit $101,134,097 100.0%