HomeMy WebLinkAboutAgenda - 12-11-2001-6aORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: December 11, 2091
Action Agen a
Item No. -
SUBJECT: Planning for Bantl Sales antl Alternative Capital Financing
DEPARTMENT: County Manager/BUtlgeU PUBLIC HEARING: (V/N) No
ERCD
ATTACHMENT(S):
Table 1-Potential Bontl Schetlule
Table 2-Potential Alternative Financing
Table 3-Potential Schetlule (COmbinetl)
Highlights of Proposed Timetables
Draft Policy Statement - Usa of County
Funtls for Parks/Open Space Protects
11126/01 CH Town Council Agenda Item
OraB - 2001 Bond Funtla Application Fonn
INFORMATION CONTACT:
Rod Viaaer, ext 2300; Donna Dean, exl
2151; Dave S[ancil, ex12690
TELEPHONE NUMBERS:
Hillsborough ]02-8181
Chapel Hill 8684601
Durham 6884331
Mebane 00622]-2031
PURPOSE: To receive a Brief presentation about factors to be considered in the timing of
incurring debt through sale of bonds approvetl by Orange County voters in November 2001 and
through other al[emative financing mechanisms.
BACKGROUND: During the bond education process leading up to the November B, 2001
bontl referentla, the Boartl of Commissioners intlicatetl [heir Intention to consider how the sale
of the bonds might be spread over a pedotl of several years to soften the impacts Of higher tax
rates that woultl be needed to help pay far the debt. Upon passage of iha bonda, iha Board
asketl the Manager and staff to suggest aframework - balancing community neetls with the
County's current antl future fiscal environments -that woultl outline some of the factors [o be
wnsitleretl in timing the sale of those bcntls, antl in using alternative fnancing for certain.
capital projects that were not slated to be addressed with band funds.
Proponents of all four motor bontl categories-schools, parks/open space, senior centers, and
affoNable housing-are understandably eager to proceed with many projects [hat will be
fundetl in full or in pen from November 2001 bontl proceeds. However, the BOCC has noted
that because of competing demands In annual operating budgets far County general fund
resources, bond protects would need [c be phased over a number of years to address the
highest prioritiesfrst. Slag have compiled lantl will brieFly present at this meeting)several
tables cf figures and lists of factors that the Boartl may wish [o consitler as [hey tliscuss with
bond padners (municipalities, schools, non-profs agencies) how and when bond and allenative
funtling projects can proceetl.
Two other documents are presen[etl with this agenda item far Yha BoeM's dlacussicn:
1. A tlrafl policy statement on the "Use of County Funds for Joint Parks and Open Space
Projects". This tlocument was prepared atthe BoaN's request and circulatetl to municipal
governing boaNa in September 2001 for feetlback: The Chapel Hill Town Council
wnsidered [he dmtt policy statement e[ [heir November 26, 2001 meeting and decided that
members Kevin Foy end Bill Strom shoultl work to present the Town's suggested
refnements to the policy statement through the Intergovernmental Parks Work Group
process. The Board may wish to tliscuss how this policy statement should be fnelizetl fo
guitle the process for bond sales in the coming years. Two specific points of discussion that
shoultl be atltlressed are: a) the venue for deliberetiona by means of which the eoertl will
communicate to bontl partners about fiscally feasible timelines for proceeding with various
projects; antl b) whether the policy statemerrc ultimately enacted by the BOCC should be
made retroactively applicable to untlistributetl 199] bontl proceetls.
2. A sample application form that would be submitted to the County Commissioners by any
bontl partner desiring to formally submits request that 2001 bontl funtls be schetluletl for
sale tp help fnance a particular protect.
FINANCIAL IMPACT: Potential financial impacts, especially annual and cumulative tax rate
impacts as laitl out in the accompanying tables, will be atltlressed by staff during the
presentation
RECOMMENDATIDNjS): Tha Manager recommentls that the Board receive the preaentetion,
end provitle appropriate direction to [he Manager end staff.
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12/ON01 a
Highlights of Proposed 7lmatables
November 2001 Bonds and Alternative Financing
• Totals $111.] million in both bond and altamative financing antl consitlers
various interest rotes antl timing of each sale. Since the [lining of each of these
proposetl schedules is such that the peak years do not coincitle, the tax rate
impact for fiscal year 2008-09 is projected to be between 6.45 antl ].1 cents.
The 'information outlined below offers details about each of the proposed
timetables.
o November 20m Bontla ($]$ Million)
• Table 1 outlines a potential achetlule for the Boertl to consitler es we make
plans for issuing the recently approved $]5 million bond funds.
In attar for the Counh to be fiscally pmdent in times of uncertainty, staff
• recemmentls [hat we pursue selling the bonds in four inatallmanta overa 4-
'/a year periotl.
• As proposetl, [he County woultl issue the foal installment of bontls in
January 2006. At that lime, stall protects annual deht service payments
would range from about $5.8 million to $8.3 million (tlependent on various
interest rates) and equate m between 4] and 5.1 cents on the tax rata.
o Altemellve Flnandng ($36.] Million)
• Table 2 outlines a potential timetable b issue $36 ]million In elternafive
financing over a 5-year periotl to address the non-bantl funtletl projects,
• Aa proposetl, the foal year of the altamative financing fimetable woultl be
July 200]. At that time, staff estimates annual tlebt service payments
woultl range fmm about $2] millionto $34 million in fiscal year 2008-99.
The estimatetl fax rate impact of the altamative financing proposal ranges
fmm about 2.1 and 2.4 cents in fscal year 200809.
• Throughout the bond education campaign, we stressetl to our voters the[ we
would place great emphaeis on balancing the timing of our projects withfinancial
wnsitlarations of Orange County c¢izena.
• Tha proposed schedules outline a plan that allows Commissioners b balance the
"knowns" (the projacte idantifiad during the bond education campaign) with the
'unknowns' (economic uncedainty)
The proposals attempt to meet the most pressing capital needs in the near suture
while we pay close attention to the tax rate impacia and fiscal environment antl
challenges. The attached tables outline, by fiscal year, the projected annual
debt service antl the estimatetl tax rate impact.
• Thie mul[Fyear plan will allow all of out bondpartners tp see how each identified
project, regaNlesa of Its funding souroa, fts into our bigger picture [hat takes us
from aduel wnstmction of a proteQ to operating the facilities once they are
constructed
Stall paid close attention to three major areas:
o Cons4ucting facilities appmvetl by the voters in [he $]6 mllllon bond
referendum
o Atltlressinq other facility needs identifietl last spring but not included on the
recant November 2001 bond
o Considering the County's cunent fscal environment and minimizing our
impact on taxpayers
Meeting the Neetls
o Schools
• Enable bath school tlisVids to meet their highest priorky projects in the
immediate future (Elementary #9 antl health antl indoor air quality at
Hillsborough Elemen+ary antl Chapel Hill High)
• Allows adequate planning time far both CHCCS Elementary #10 antl OC5
Mitltlle School #3 (with constmction being cpmpletetl spring/summer 2008
antl doors opening in fiscal year 2006-W )
• AI[emativa financing. phased in over a period of time, allows for
renovations of current school facilities antl otters funtls far CHCCS to
begin planning for Hlgh School #3
o Senior Centers
• Allows County to stay on target to have the Chapel Hill Senior Center (to
ba located at Soulhem Human Services Center ske) opening summer
2006 (as the lease on the Galleria expires on June 30.2006)
• Since a eke hea not been chosen for the NoMernlCen[ral Orenge Center,
funtling for it would came in Me lader part of the timetable
o Parks, Recreation antl Open Space
• Allows time for County antl Towns to came together end collaborate on
timetables Mat balance bath the citleens' neetls antl the amount of tlebt
we can afford each year
o Community College Salellile Campus
• With the proposetl July 2002 altemaWe financing timetable, there are
funtls to purchase lantl antl begin planning a new facility
Funtling for actual wnstmc[ion of the facility could begin as early as July
• zgga
o Farmland Conservation Eassmenb
• Some funding woultl be available as eady as July 2002
• Alternative financing plan offers a total of $3 million (phased in over the
flue year plan) -
c ANOrtlable Housing
• Provides funtling in the first three band sales
Fiscal Outluek
As we begin looking to the budget planning process, we are aware that we will face
some expenditure increases that will affect our tax rete-
• Known Elements
o '199] Bonds - In July, we issued the second inatellment of 199] bonds
(total of $1].4 millon). The projected tax rate Impact of the related debt
service for next year is somewhere between 1 ]5 to 2 cents,
0 2001 Bonds-Ghoultl the Commissioners move fom+aN with,the proposed
timelines (Tables 1 and 2), we will have some tax rata increase -between
one-half antl tw•o-[hiMS of a cent.
• Unknown Elements
o Opening of New Facildies
• Orange County Schools -full-year cast of operating Cetlar Ridge
High School
• Chapel Hill-Carrboro City Schools -preliminary start-up msts for
Elementary School #9
• Little River Park, McGowan Creek Park antl Mapleview Soccer
Fieltl-cost o(opemfions antl malntenence
o Anticipated increases In Metlicaitl will continue to affect the public
assistance butlget
o General operating expenses for County tlepertments
DRAFT Policy St¢tement
Use of County Funds For
Joint Parks and Open Space Px'ojects
September ]0, 2001
Rationale
b'rnm 19982000, &ue dAfemnt reports have pointed out tkc good fax
significant collaboration among the Towns and the County for certain parks
nod re eaaen initiatives, pointing out ewnomies of senlq the avoidance of
dupliaatipn aP services, and the apportmuties and IimitaHans of ennh
jurisdi~winn in terms aP available rosources (financial and otherwise). In eeoh
q the Oounty has been identified es the jurisdiction boat able to take the
lead in ~adlabnrativa imciatives fax paeke and open apace.
The Orange County Board of Commieeicnera took eeveral steps in 1999 and
2000 w facilitate the ability to collaborate on joint parka mtl open apace
projects. On December i, 1999, the board of Cemmiesipners adopted criteria
and guidelines to help guide deasion-making for joint psnks projects. In
Apeil, 2000, [he Board created the Lands Legacy program as a framework £nr
the aequieition of land fax parka, open space and resource prsservnGpn. In
Mny, 2000, the Board (along with the Chapel Hill Town COnnCIl, Cnrrboro
Board n[ Aldevmen and Hillsborough Boned of Oommissionera) appointed an
InverCovernmental Parka (IP) Woxk ('xxoup to foster coordination. And in
February of this year, the Board agreed to consider the potential for v parks
cad open space bondtbr November 2001.
In the spring of thin year, the Towns oP Chnpcl ]]ill, Cnrrboro and
Hillsborough naked that a umber of Town Parks end open space pmjcrLa
(totaling 518.9 million) be funded by the County ae parp o4 a plamad
November 2001 bond referendum.
The following policy statement is offered to clarify and reiterate the pmrese
and the wntext for County finvnrwl nvrtivipatinn in joint pazke projects with
the Towne, mmaismnt with the adopted Derember i 99Y Joint Parks Criteria,
the Om~ober 00, 2000 dolor Capitol Funding Gm Perks report, and [be
wncepte ofjoiat planning.
Proposed Policy Objectives
1. If a jurisdiction wishes to introduce a candidate project Far potential
County Ponding, she proposal should Yollow the following procees:
• A written request should be submitted [o the Board o£ Commissioners;
• The request, along with staff comments, shall be pv~esented aL a Hoard
of Commissioners meeting as a report;
• The request will be referred W the InterGovenuvehtal Parks (8) Work
Group for a recommendation. The IP Work Group will be used as the
unding board" Far potential joint park= projects, especially those
pmpoaed Foe County fmmClnl participatiom
• L° [he proposed project would be ro-located with a sohool, a
mendation from the Schools and Land Use Council shall also be
sphcited;
• The Hoard of Commisaianece will khan review vhe rewmmead¢Elon(s)
and make a derision on "wnditioml approval" oS the joint project
(using adopted criteria sod this policy statement);
2. Any proposed project £ar County funding must be coaisteaL with the
Hoaz~d's adapted criteria .and guidelines of December Z, iB99(amended
May 3. 2000), w}dch epecifiee eligibility of projects, looetlo~l criteeis and
matcliln6 iLnd expectations. (The adapted criteria ere provided as
Attachiuent 1).
3. H a project receives conditional approval from the Beard of Commiasimere
(see item 1 above), a Joint Parka Statement of Intent wN be signed by the
County and the juisdiction in 9ueeGon. The Joint Statement of Intent
eriRvs the jurisdictien'e agreement to comprehensively involve the
County is the park planning and wnstruction process. Disbursement of
funds will not occur until the appropriate steps in the Joint Stvtemevt of
intent have been met. The Hoard of Commissioners will be
mmprehensively involved in approval of the pork project, as follows:
• Joint approval of Concept Plen Committee ayppintments;
• Joivt approval oP the himing of consultants;
• Jointapproval of the concept plvn (imluding park pass);
Joint approval oI the timetable £or projec[ activities end mastructien
• (nr en- like step);
• .Joint approval of the pmjecL Bite pleas end conatrvction phasing
(please see objective 5 below);
h. fox purposes oP the November 2001 band, projects that are included for
1Lndmg is the 20111 bond will ba wnsidered to have received "conditional
approval' ae described above. If the bond is successful, flee Joint Parks
6tatemeut of Imeuv pnu:ess dasm~ibed in objective #3 above shall be
pursued to extent possible.
5. The Joint Statement of Intent may include n provision for consulfntian as
procured by the County to oversee any and all elements of the park design
and conatructiou proorss, for all joint facilities in which Oounty funds are
used.
G As per the Ocmbar 30, 2A00 meeting diacuaien, which noted the County's
potential role ae the provider of capitol funding for ]Dint parks projuets,
the Towne will be ezpected to take the lend in pxovidiag for opcrntipn and
aintenance o£joint parks facilities, whenever that is appropriate. The
Jninv 6vatemenv oY Inteut wi0 codirm this areangemen[, gffix Lo
construction.
7. The Joint Yorks and Open Space Statement of Intent will also include
provieians that guareatee:
a) That the project facility will be oven to use by all County reaideuts iu
coedance with the Open facilities Policy adapted by all junsdietions
in 2000; and
L) That the County reeervee the right of approval for the leasing out of
the facility' o any part thereof for exclusive operation by any
orgawzatione; and
c) That echeduliag will not permit the use of the prepontlarancc of the
facility to be m napohzed by private groups ar essaciatians, without
the Oounty's appxovaL
WiEh this podicy s[atamenE, eha Board of Commission rea(jirma ifs in[emst
and rommiamen[ ro working collaboratively wif/a fhe 'POwnd of Carrbma,
Chaped Hill, Hillsborough and Mebane an parks and open space projects, as
dam naarated by she seeps takan in eha lust nun yevrs to snnbte aaaperaLLoe
parks and open space Dentures.
Howeoeq in inking an the signifiunnt firwardul ree~pmuibtldtSee~ regursted by
the Towns (orparks and oven space projects, t1u Boats hoe reaponaibzit6ee Eo
re that the best interests of tilt County citizens are mat en the evpereditare
of funda~ for such projects, and nmat therefam be mrnprehensioeiy inuaDOed en
theprojects whloh it funda~.
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AGENDA p19aQ)
13
MEMORANDUM
]'U: Towm Cawcil Membe[s
FROM: Mayor Rosemary Waldacf
SUBJECT: Cwsidemdon of Oravge COOVry IhaR Policy Stecemmt on Oac of COwty Fords for Joint
Parke end Open Spacc ROjecLa
DATE: November 2fi, 2001
You will recall that several weeks ago, we me¢v~ a draft policy amtemmt Rom the Orwge County Beard
of Commissioners entitled "Use of Cowry Fords for Join[ Parks and Open Space Rvjsts." We ref d
dis w dre MmmBer and the Parka wd Recrcatim Commiasiov far wmment. Since moy the chmr of the
Grernways Commission has also requcehd that we m[er it to 0e Greenways Commission fa comment,
and [hope the COwdl will do so.
Same Council Mttvbtts soil I had wwzms that »me dmnils of the policy ae pcopoeW mighl lead to
waeement ab nvtuxessary deWY w Providiv8 these voter-approved re rcatiomt facilities.
Comkil Mmiber Bateman, Mayor pro lam PavSO, wd I had w ivformel meeti~ with Cammisaiwers
Iwobs mid Carey b diewea mie.
At that rdemsaioq those presort a8reed that the (ollowiug atcp woWd be reasonable:
Establish x sMrt-term work gong M refine the proposed policy so as to protect Cowry pmrogatives a'
Develop a review process thaz ie emootE and does not cause unneeessmy delay. I have diecpssed Wis wiN
Mayor Nelson. Heil in accord and willrewmmmd 0is pronessrohie bond.
My suggesROn is that the short-term work group include: One elected o6reid form cachjwisdictioq the
mwagere and the parka aril recreation dhcctors. Ideallg [fie work goup will wnsider advisory board
comments and arzive et a wveenam policyrecommrnJaiivn that ew be reviewed by all elemed homds.
I slues[ that the Cowtil adopt We azW;hedresvlution
ATT.4CIiM1IENTS
L Sept®b¢ 13, 2001 Letts from Onmge County Cornmievoners Chairman Stce Halkio0s to Mayor
Rosemary WaNor{ wish "Use ofCOOVry Fords for Ioivt Parka and Open Space Projeck" (p. 3).
2. September 24, 2001 Letler from Mayor Rosemary W eldorL W Chairmen Steve HeMiofie (p. 9).
A RESOLUTION ESTABLISHEVC A R'ORK GROUP TO REFINE THE PROPOSED COUNTY
POLICY FOR JOINT PARKS AND OPEN SPACE PROJECTS (2001-11-56/R-22)
GENOAM , ~........mxgs...vrvrn2a-9:1aPVhe%RCOpm%30SpoeA
WHEREAS, the Orange County Hosrd of Commissiovva bas submitted a draft policy statemrnt rntitled, 14
'Uce nfCnwty FUnda for lGint Parlor and Open Space Pmjec6"; and
WHEREAS, the Chapel Hill Toav Couvoil previously refmrd Ibis mpoa to the Taw¢ Menegar end Paks
and Remeation Commission for cvmmrnq a¢d
WHEREAS, Cawul Members Gam Chepe13611 end Commissioners from thm~ge Couvry have mn to
discuss the daA policy statement; and
WHEREAS, the Cowell Mo¢bers and Commissioners agrcetl b tha feasibility of estahlishing a
short-term arod gwp to refine the proposed policy so as b protect Cawty prerogatives and [o develop a
renew process that is smooN mddocs not cause urmaeseary delay, wd
WHERE.45, We Mayor ofCarrbmo bas ageai with the feasibility ofthis work group option;
NOW, THEREPOAE, BE 1T RESOLVED tba[ the Comcil of the Tovm of Chapel Hilt hereby requests
that a sbort-term work group be esablishedto refine the proposed County polity for Joint Parks and Open
Space.
BE IT PIIRTHER RESOLVED that this work goys consist of one elected otGcial fiom eachjuaisdictiov
s¢d the mwegers and parks and recreanon dicec[ors; and that the work gaup coroider advisory board
comments wd srtive a[ a consauvs policy recommendation that cm be reviewed by all elected boazde.
HE IT FURTHER RESOLV®thet the Co¢¢rilsak [he Managv to forward a wpY of thu resol¢tio¢ and
the aceompwyi¢g materials to the Omngc Cowty Beard of Commissioners end w the Cm+bom Board of
ALlamm.
BE IT FURTk3ER RESOLVED thaz a copy of the draft policy statement be provided m the creenways
Commission for ca¢wenc
ilds the 26~ day afNovember, 2001,
Application Form
2001 Orange County
Bond Funds
7. Organization Information
Name:
Mailing Address:
Contact Person (name/title):
Phone / Fax! E-Mail:
2. Type of Project"
Check one: School Facilities
Parks, Recreation and Open Space
Affordable Housing
Senior Centers
Brief Description of Project:
-Please see applicable criteria and policies for Ccunfy bond funds
• For school hacili[ie; see AppentlixA
• Forparks, recreatlon antl open space hcildles, see Appentllx B
• ForalfoMeble housing, see AppentlixC
• Fror seniorcenfers, see Appentlix ll
3. Financial Information
Total Project Budget:
Available Matching Funtls?:
Total County Bond Funds Requested:
Timetable for Project:
(begin/end tlate. Date Bond Funds Needed:
Please attach cashflow schedule (Schedule should reflect use of
matching funds orior to County Bond Funtls )
Certification of Adherence to
County Policy or Process for Bond Funtls
On behalf of my organization, I have read and agree to adhere to the
provisions of the appropriate policy or process as shown in the
Appendices to this document
Name:
Title:
Date:
To be signed by Chief Elected Official or Executive Officer of
Organization Requesting Funds