HomeMy WebLinkAboutAgenda - 06-08-2021; Item 2 - Discussion and Decisions on FY2021-26 Capital Investment Plan 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 8, 2021
Action Agenda
Item No. 2
SUBJECT: Discussion and Decisions on FY2021-26 Capital Investment Plan
DEPARTMENT: County Manager and Finance and Administrative Services
ATTACHMENT(S): INFORMATION CONTACT:
A. FY2021-26 Capital Investment Plan Bonnie Hammersley, (919) 245-2300
Budget Amendment List Travis Myren, (919) 245-2308
(Under Separate Cover- Any Gary Donaldson, (919) 245-2453
Updates to the list will be provided Paul Laughton, (919) 245-2152
prior to the meeting)
PURPOSE: To accept the FY2021-26 Capital Investment Plan and approve the Intent to Adopt
Capital Funding for FY2021-22.
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 2021-26 CIP includes County Projects, School Projects, and Proprietary Projects. The
School Projects include Chapel Hill-Carrboro City Schools (CHCCS), Orange County Schools
(OCS), 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% sales tax growth 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 6, 2021 :
• At the May 13, 2021 Budget Work Session, staff included a revised Schools Capital
Projects Summary reflecting adjustments made in regards to changes to the FY 2021-22
budgeted average daily membership (ADM) percentages, based on changes made from
the time of the original CIP presentation and the FY 2021-22 Manager's Recommended
Operating Budget presentation. The impact of these numbers changed the CHCCS
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percentage from 59.99% to 60.36%, and changed the OCS percentage from 40.01% to
39.64%.
FINANCIAL IMPACT: The Five Year Capital Investment Plan is a long-range financial planning
tool with a financial impact in FY2021-22, 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 Orange County Social Justice Goal impacts
associated with this item.
ENVIRONMENTAL IMPACT: There are no Orange County Environmental Responsibility 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 FY2021-22.