HomeMy WebLinkAboutAgenda 06-11-2019 - Item 2 - Discussion and Decisions of FY2019-20 Capital Investment Plan
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 11, 2019
Action Agenda
Item No. 2
SUBJECT: Discussion and Decisions of FY2019-20 Capital Investment Plan
DEPARTMENT: County Manager and Finance and Administrative Services
ATTACHMENT(S):
A. FY2019-24 Capital Investment Plan
Budget Amendment List
(Updated 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: FY2019-24 Capital Investment Plan - Accept the Five Year Capital Investment Plan
and Approve the Intent to Adopt Capital Funding for FY2019-20.
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 2019-24 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.
The items below include revisions made to the following Capital Projects since the presentation
of the Manager’s Recommended Capital Investment Plan on April 2, 2019:
• At the May 23, 2019 Budget Work Session, staff included a revised Schools Capital
Projects Summary reflecting adjustments made in regards to an increased amount of
Article 46 Sales Tax funding, as well as changes to the FY 2019-20 budgeted ADM
percentages, based on changes made from the time of the original CIP presentation and
the FY 2019-20 Manager’s Recommended Operating Budget presentation. The impact
of these #’s changed the CHCCS % from 60.73% to 60.14%, and changed the OCS %
from 39.27% to 39.86%.
• The Solid Waste Capital Projects had a change in funding sources as included in the FY
2019-20 Manager’s Recommended Operating Budget. The PAYGO funding has
increased by $453,172 and the Debt Financing has decreased by $453,172 in FY 2019-
20. All else remains the same.
FINANCIAL IMPACT: The Five Year Capital Investment Plan is a long-range financial planning
tool with a financial impact in FY2019-20, 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 FY2019-20.