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HomeMy WebLinkAboutAgenda - 04-16-2001-3ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: April 1 fi, 2001 Action Agenda Item No. 3 SUBJECT: Interim Ca ital Investment Plan CIP DEPARTMENT: Budget PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: John Link, extension 2300 Donna Dean, 245-2151 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 33G-227-2031 PURPOSE: To review a proposal far an interim Capital Investment Plan (CIP) for the upcoming 2001-02 fiscal year that includes County and School pay-as-you-go projects. BACKGROUND: Over the past year, the Board has appointed several task forces to address various County capital needs including public building needs (such as justice facilities, senior centers, libraries), parks and playing fields, and open space. It is anticipated that many of the forthcoming task force recommendations would require fiscal resources to address capital needs. In addition, both school systems have identified needs for facilities that would require funding beyond the current pay-as-you-go revenues. The Board has charged a Capital Needs Advisory Task Force (CNATF) with reviewing the identified County and school capital needs and developing recommendations regarding the projects that would be likely candidates for the anticipated November 2001 bond referendum. During June 2001, the Board will decide the final bond package that would go to the voters in November. It is quite likely that the amount of money needed to fund priority capital needs can not be addressed solely through the November 2001 bond. The amount of pay-as-you-go funding available in future years is also limited. In light of the many unknowns at this time, staff recommends that the Board postpone developing aten-year plan until the outstanding issues are resolved. This would ensure that the County's CIP provides along-range plan that best utilizes our limited resources, whether funded through bonds, pay-as-you-go funding, or other debt mechanisms, to fund priority capital needs for both the County and the Schools. Staff asks that the Board adopt an interim capital plan far one-year (fiscal year 2001-02) that allocates only the pay-as-you-go funds. Once the amount of the November 2001 bond referendum is finalized, staff would formulate aten-year CIP over the upcoming summer months and present it to the Board in the fall. 2 FINANCIAL IMPACT: In accordance with the County's current Capital Funding Policy, there are several sources of non-restricted pay-as-you-go funding for county and school debt service repayment and capital projects. These non-restricted pay-as-you-go sources include proceeds from both one-half cent sales taxes and dedicated property taxes. The Board's policy provides that all debt service is paid from the non-restricted pay-as-you-go sources, and the remaining amount be allocated on an equal (50/50) share between the County and schools. In addition to the non-restricted funding sources, the County and schools each have particular revenues that are available for project funding. For the schools, these revenues include impact fees and State Public School Building Funds. For the County, these revenues include the equivalent to 2/3 ofi one cent on the General Fund property tax rate, various grants, Subdivision Payment-in-Lieu funds, and other dedicated revenues. The chart below provides a brief outline of the net projected revenues (restricted revenues less debt service and non-restricted funds) for the upcoming 2001-02 fiscal year. Other (Grants, FY 2001-02 (projections made Alternative by Budget Office during fall Pay-As You- Bond Financing, 2000) Go Funds Funds Fees) Total Schools 2546 500 750 000 0 3 296 500 Oran a Count Government 2 265 964 0 82 592 2 348 556 Total Funding 4,$12,464 750,000 82,592 5,645,056 RECOMMENDATION (S): The Manager recommends that the Board ofi County Commissioners approve the proposal for an interim Capital Investment Plan (GIP) and ask staff to present a one-year spending plan (during an upcoming budget work session) fior fiscal year 2001-02 that includes County and School pay-as-you-go projects.