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HomeMy WebLinkAboutAgenda - 04-07-20; 6-c - Presentation of Manager’s Recommended FY 2020-25 Capital Investment Plan (CIP) 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: April 7, 2020 Action Agenda Item No. 6-c SUBJECT: Presentation of Manager's Recommended FY 2020-25 Capital Investment Plan (CIP) DEPARTMENT: County Manager and Finance and Administrative Services ATTACHMENT(S): INFORMATION CONTACT: Bonnie Hammersley, County Manager, UNDER SEPARATE COVER (919) 245-2300 Attachment 1. County Manager's CIP Travis Myren, Deputy County Manager, Transmittal Letter (919) 245-2308 Attachment 2. FY 2020-25 Capital Gary Donaldson, Financial Services, Investment Plan (919) 245-2453 Presentation Paul Laughton, Financial Services, Attachment 3. Manager Recommended (919) 245-2152 FY 2020-25 Capital Investment Plan All Attachments To Be Provided Prior to or in Coniunction with the Meetin_g and also Available Electronically at: http://www.co.orange.nc.us/Archive.as px?AMID=57 PURPOSE: To receive the Manager's Recommended FY 2020-25 Capital Investment Plan (CIP). BACKGROUND: Each year, the County produces 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 2020-25 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. 2 The CIP has been prepared anticipating moderate economic growth of approximately 2% in property tax growth over the next five years, and 4% sales tax growth in Years 2-5. Sales Tax proceeds for Year 1 (FY 2020-21) are estimated to decline by 4.5% due to the current coronavirus pandemic. Many of the projects in the CIP will rely on debt financing to fund the projects. FINANCIAL IMPACT: There is no immediate financial impact associated with the presentation of the FY 2020-25 Capital Investment Plan. It is a long-range financial planning tool with a financial impact in FY 2020-25, if the first year of the CIP is approved by the Board of County Commissioners with the adoption of the Annual Budget. SOCIAL JUSTICE IMPACT: There is no Orange County Social Justice Goal impact associated with this item. ENVIRONMENTAL IMPACT: There is no Orange County Environmental Responsibility Goal impact associated with this item. RECOMMENDATION(S): The Manager recommends the Board receive the presentation of the Manager's Recommended FY 2020-25 Capital Investment Plan and provide direction to staff in preparation for discussion at the April 14, 2020 Budget work session.