HomeMy WebLinkAboutAgenda - 04-14-20; Item 1 Discussion of Manager’s Recommended FY 2020-25 Capital Investment Plan
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: April 14, 2020
Action Agenda
Item No. 1
SUBJECT: Discussion of Manager’s Recommended FY 2020-25 Capital Investment Plan
(CIP)
DEPARTMENT: County Manager and Finance and Administrative Services
ATTACHMENT(S): INFORMATION CONTACT:
Attachment A. Overall CIP Summary,
County CIP Projects Summary, and
Proprietary CIP Projects Summary
Previously Provided Under Separate
Cover – Also Available Online:
Manager Recommended FY2020-25
County Capital Investment Plan
http://www.orangecountync.gov/714/Count
y-Budgets
Bonnie Hammersley, (919) 245-2300
Travis Myren, (919) 245-2308
Gary Donaldson, (919) 245-2453
Paul Laughton, (919) 245-2152
PURPOSE: To discuss the Manager’s Recommended FY 2020-25 Capital Investment Plan.
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.
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.
Tonight’s discussion will focus on County and Proprietary CIP projects. Note: Page numbers
are referenced below as they appear in the CIP document. See Attachment A for the Overall
CIP Summary (page 19), County CIP Projects Summary (page 20), and the Proprietary CIP
Summaries (page 23). Discussion of the Schools CIP projects is scheduled for the April 23,
2020 Work Session. Durham Technical Community College – Orange County Campus new
academic building project will also be discussed at the April 23, 2020 meeting.
Discussion will also be directed tonight to recommended Future Capital Projects in Years 2-5 of
the CIP (FY 2021-22 through FY 2024-25); discussion and review of the Debt Service and Debt
Capacity – General Fund (page 190), the Water and Sewer Debt Service requirements paid
with Article 46 Quarter Cent Sales Tax proceeds (page 191), and Debt Service requirements for
Solid Waste (page 192) and Sportsplex (page 193).
FINANCIAL IMPACT: There is no immediate financial impact associated with discussion 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 are no Orange County Social Justice Goal Impacts associated with discussion of this
item.
ENVIRONMENTAL IMPACT: There are no Orange County Environmental Responsibility Goal
impacts associated with discussion of this item.
RECOMMENDATION(S): The Manager recommends the Board review and discuss the
Manager’s Recommended FY 2020-25 Capital Investment Plan and provide direction to staff.