HomeMy WebLinkAboutAgenda 04-05-22; 4-c - Presentation of Manager’s Recommended FY 2022-32 Capital Investment Plan (CIP) 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: April 5, 2022
Action Agenda
Item No. 4-c
SUBJECT: Presentation of Manager's Recommended FY 2022-32 Capital Investment Plan
(CIP)
DEPARTMENT: County Manager and Finance and
Administrative Services
ATTACHMENT(S): INFORMATION CONTACT:
Attachment 1. County Manager's CIP Bonnie Hammersley, County Manager,
Transmittal Letter (919) 245-2300
Travis Myren, Deputy County Manager,
UNDER SEPARATE COVER (919) 245-2308
Attachment 2. FY 2022-32 Capital Gary Donaldson, Chief Financial Officer
Investment Plan (919) 245-2453
Presentation Rebecca Crawford, Deputy Finance
Attachment 3. Manager Recommended Director, (919) 245-2152
FY 2022-32 Capital Kirk Vaughn, Budget and Management
Investment Plan Analyst, (919) 245-2153
Attachments 2 & 3 To Be Provided Prior
to or in Coniunction with the Meeting;
Will also be Available Electronically at:
http://www.co.orange.nc.us/Archive.aspx?
AMID=60
PURPOSE: To present the Manager's Recommended FY 2022-32 Capital Investment Plan to
the Board of County Commissioners.
BACKGROUND: Each year, the County produces a Capital Investment Plan (CIP) that
establishes a budget planning guide related to capital needs for the County and Schools. The
CIP has been enhanced to provide specific project funding in years 6-10 as well. The 10-Year
CIP 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 2022-32 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 and 4% in sales tax growth annually over the next ten years. The CIP will
rely substantially on debt financing to fund the projects and these required debt amounts are
fully integrated in the County's Long-Term Debt Model.
FINANCIAL IMPACT: There is no immediate financial impact associated with the presentation
of the FY 2022-32 Capital Investment Plan. It is a long-range financial planning tool with a
financial impact in Year 1 (FY 2022-32), 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 this item.
ENVIRONMENTAL IMPACT: There are no Orange County Environmental Responsibility Goal
impacts associated with this item.
RECOMMENDATION(S): The Manager recommends the Board receive the presentation of the
Manager's Recommended FY 2022-32 Capital Investment Plan and provide direction to staff in
preparation of the April 12, 2022 Budget work session.
3
Attachment 1
ORANGE COUNTY
NORTH CAROLINA
April 5, 2022
TO: Board of Orange County Commissioners
FROM: Bonnie Hammersley
County Manager
Travis Myren
Deputy County Manager
RE: Manager's Recommended FY 2022-32 Capital Investment Plan
We are pleased to submit the County Manager's Recommended Capital Investment Plan (CIP)for
FY 2022-32 for your consideration. This CIP reflects the hope of a return to a new normal for the
County and its residents. It continues to invest in County and School facilities and infrastructure,
but it also introduces new concepts and new technologies to improve resiliency and the County's
path forward.
The most important structural change in this year's Capital Investment Plan is that it extends the
enumerated capital project horizon to ten years. Prior Capital Investment Plans specifically
identified projects in years one through five but grouped longer range projects together in years
six through ten. Although this method provided flexibility, it also confounded efforts to model
the impact of those longer term projects since they could not be tied to a specific year of
expenditure. The new format provides the ability to model the financial impact of investments
over the complete ten year planning horizon.
Although the Board only appropriates funding for projects in the first year of the Plan,the County
employs a debt modeling tool to project debt service requirements and monitor compliance with
the County's debt to revenue policy over the full ten year planning horizon. Projected debt
service ultimately manifests in a tax rate equivalent to pay the annual installments on borrowing.
The debt service to revenue policy measures the County's ability to pay these annual installments
relative to the amount of revenue forecasted. This metric is also used by credit rating agencies
to assign a credit rating when the County issues new debt. The County's current debt policy
target is fifteen percent (15%) of general fund revenues. Based on the County's thoughtful
4
approach to debt financing and comparably resilient economy,the County has been assigned the
highest credit rating(AAA) by three rating agencies for the past eight(8)years. This rating secures
the lowest possible interest rates and, therefore, the lowest cost of borrowing in the bond
market.
The FY2022-32 CIP also places a renewed focus on identifying the operating budget impact of
capital investments. In addition to the new debt service that is generated by the capital budget,
new infrastructure often comes with staffing, operating, and maintenance costs that impact the
operating budget. The FY2022-32 CIP is more carefully tracking and reporting those costs so that
decisions are fully informed. This CIP also includes $2.6 million in pay-as-you-go or cash funded
investments in the first year of the plan for design and architectural services as well as small
capital items with short useful lives to conform to best practices. The long range debt model
assumes a continuation of cash financing in future plan years.
The first year of the Recommended CIP totals $40.6 million in capital investments. Of this
amount, $10.9 million is recommended for County capital projects, $1.3 million is recommended
for proprietary fund spending including Solid Waste, and Sportsplex, and $28.5 million is
recommended for capital improvements to educational facilities.
The recommended FY 2022-23 CIP represents a decrease of approximately $10.3 million
compared to the FY2021-22 Approved CIP. This decrease is attributable to the 203 S. Greensboro
project moving into the current year and the completion of the final 2016 general obligation bond
draw for school facilities.
The balance of this memorandum describes projects supported by the General Fund that are
recommended in the first year of the FY2022-32 CIP as well as any significant changes that are
recommended for consideration in future years.
Education Capital Improvements
The FY2022-23 Recommended CIP includes a total of$28.5 million to finance a variety of school
capital improvements and to expand the facility on the Orange County Campus of Durham
Technical Community College.
• Annual School Facility Repair and Improvement Projects - $10.8 million
The CIP includes annual allocations for school repair and improvement projects in each year
of the plan. For FY2022-23, the annual allocation is $10.8 million. This annual allocation is
used to fund a variety of smaller scale capital improvements in schools ranging from
accessibility and classroom improvements to technology and sustainability projects. This
allocation is financed by a mix of sources including debt financing, additional pay-as-you-go
(from lottery proceeds), and Article 46 sales tax proceeds. The Plan assumes that the amount
of debt financing increases by 2%each year while the amount of Article 46 proceeds increases
by 4% annually.
Page 1 2
5
• Additional Supplemental Deferred Maintenance in 2024-$30 million
The Supplemental Deferred Maintenance Program was started in FY2020-21 to address
deferred maintenance and life and safety improvements in school facilities. The program was
designed to finance $30 million in school projects over three years on a schedule and
sequence determined by the Districts.
The total $30 million was divided between the Districts based on the average daily
membership in the FY2020-21 fiscal year. As a result, Chapel Hill-Carrboro City Schools was
allocated 60.14% or $18,042,000 of the $30 million total while Orange County Schools was
allocated 39.86% or$11,958,000 of the total amount.
To date, the Districts have drawn down approximately $613,000 of the $30 million originally
designated due to the demands of the COVID-19 response. In prior CIP's, the County
appropriated $9.5 million based on requests from the School Districts. The FY2022-23
Recommended CIP appropriates the balance of the original $30 million or $20.5 million over
the next two fiscal years to offer complete flexibility in how and when those funds are used.
An additional $30 million is planned for FY2023-24 assuming that the original funds will be
exhausted, committed, or planned during FY2022-23. In response to requests from both
Districts, $3.0 million of the new $30 million is planned for FY 2022-23 for preliminary
planning, which includes project management and professional services. The remaining $27
million is planned for construction in FY 2023-24. Consistent with practice, the new $30
million will be divided between the Districts based on the FY 2022-23 average daily
membership. The following table shows how the original funding source was allocated and
how the Districts have requested to use the balance of the original funds and the new $30
million:
K-12 Supplemental Deferred
FY 2024-21 FY 2021.22 FY 2022.23 FY 2023.24 Total
Maintenance Funding
Initial Allocation $ 5,950,000 $ 3,600,400 $ 14,253,000 $ 6,197,400 $ 30,000,000
Proposed Additional Allocation 1 $ 3,040,000 $ 27,400,404 $ 30,000,000
Total $ 5,950,000 $ 3,600,000 $ 11,253,000 $ 33,197,000 $ 60,000,000
• Planning for a General Obligation Bond
The County is working with each school district on a Capital Needs Task Force to further define
and prioritize capital needs in the future. The FY2022-32 CIP includes a placeholder for $130
million in general obligation bond proceeds with the first tranche planned in 2027.
The combination of the additional $30 million in supplemental deferred maintenance and the
$130 million bond would generate a cumulative tax impact of an additional 2.37 cents over
the ten year period. Since the actual capital needs will exceed this amount, the County will
need to explore other financing strategies to address the remaining needs.
Page 1 3
6
• Orange County Campus — Durham Technical Community College — Existing Facility
Expansion - $11 million
Durham Technical Community College has revised its approach to expanding the Orange
County Campus. The prior strategy featured a new, stand-alone building for allied health
instruction. Since that time, Durham County has included this facility as part of a bond
referendum to be located on the Durham Campus.
The new concept would fund a 13,000 - 18,000 square foot addition to the existing building
on the Orange County Campus.This addition will be used to expand space for the Emergency
Medical Services program, Health and Wellness, Skilled Trades, Back to Work and Small
Business Center, student study areas, and student support offices.
Durham Tech requested $500,000 for preliminary planning, which includes project
management and professional services in FY 2022-23. The remaining$10.5 million is planned
for construction and furnishings in FY 2023-24. This request has been integrated into the
Recommended CIP.
Climate Change Mitigation Project- $550,150
The Climate Change Mitigation Project was established in FY2019-20 to fund initiatives to combat
climate change. The Board of County Commissioners subsequently revised the allocation to 50%
for county-initiated projects and 50% for school-related projects. At that time, the Board of
County Commissioners dedicated a quarter-cent increase on the Ad Valorem property tax to fund
this project. In FY2022-23, the quarter-cent tax is expected to generate approximately$550,150
that will be awarded through a competitive grant process.
Climate Change Mitigation funds are transferred from the General Fund into this multi-year
capital fund each year so that funds that are unspent at the end of the fiscal year are preserved
in the fund rather than being absorbed into the County's unassigned fund balance.
Public Safety
The FY2022-23 Recommended CIP includes investments that will support the County's public
safety functions to continue to reliably and efficiently respond to emergencies and to effectively
communicate with one another. Vehicles for the Sheriff's Office and Emergency Services are
included in the Vehicle Replacement project.
• Emergency Medical Services(EMS)Substation Communication Improvements and Planning
- $410,000
Emergency Medical Services Substations serve as satellite locations for ambulance units.
These substations are strategically located to meet the highest response needs in the least
amount of time. Where possible, these facilities are collocated with fire departments to
achieve efficiencies from sharing kitchen, training, and other common areas. The operating
costs of the co-located facilities are also shared.
Page 14
7
The FY2022-23 CIP recommends $300,000 to perform shared professional services with the
Town of Chapel Hill Fire Department. The exact location of the shared facility is being
determined based on call volume and service demand.
The FY 2022-23 Recommended CIP also includes $110,000 for improved paging and antenna
systems to be added to the Waterstone substation that is shared with the Orange Rural Fire
Department and the new stand-alone station located in Efland.
• Communication System Improvements-$210,000
New technology is mandating the phased implementation of Time Division Multiple Access
functionality to improve the overall capacity of the State's emergency responder radio
system. This technology allows multiple users to share the same frequency by assigning them
time slots. Funding is included through FY2025-26 for these radio upgrades. The cost of each
radio is escalated by a 5% inflationary factor based on recent history.
• Emergency Responder Radio and Paging System -$440,195
The County's emergency responders use a State operated and managed radio system for
emergency communications. This system lacks reliable coverage in certain areas of the
County but also has difficulty penetrating the interior of large critical facilities. The initial cost
estimate for a substantially expanded system was over $45 million. The Radio Work Group
which is composed of representatives from law enforcement,the fire service, and Emergency
Medical Services has prioritized investments in the system and has identified new technology
to greatly improve building penetration. The County will continue to engage with system
engineers to qualify sites, obtain additional information, and narrow the scope to create a
refined cost estimate for the larger system wide project.
For FY2022-2023,funding of$62,695 is recommended to replace and upgrade existing paging
equipment which is at end-of-life. This upgrade will maintain the ability to alert emergency
responders and provide a foundation for future paging improvements. In addition, $30,000
is being recommended to perform an engineered assessment of the Eno Mountain tower site
which is a necessary to determine whether additional equipment can be added to that tower
to improve coverage.
To improve building penetration, $47,500 is recommended to test schools and other critical
facilities (total of 30) to assess the need for internal bi-directional antenna (BDA) systems.
These BDA system are an essential component to achieving interior coverage which will
reduce the number of towers that would have been be necessary to achieve countywide radio
coverage in future years. Based on the results of this study, $300,000 is recommended to
initiate the installation of BDA systems within schools and other critical facilities.
County Facility and Infrastructure Projects
The FY2022-23 CIP is continuing to recommend repair and improvements to County facilities and
infrastructure. These investments are intended to improve resiliency, extend the life of facilities,
and improve service delivery to residents.
Page 15
8
• Court Street Annex- $160,000
The County is obligated to provide space for Juvenile Justice and Adult Probation. The Court
Street Annex houses these functions. The FY2022-23 CIP recommends the replacement of
the main electrical distribution panel and electrical circuits to meet modern building code
standards. Future execution of this project will take into account the potential movement of
the Detention Center and the subsequent disposition and/or master planning for this
downtown site.
• Facility Accessibility, Safety and Security Improvements- $1,240,435
This project funds a variety of facility improvements throughout the County. For FY2022-23
this project funds security camera upgrades for Central Recreation and Dickson House; fire
alarm upgrades at Southern Human Services, Seymour Senior Center, Passmore Senior
Center, Government Service Annex (Board of Elections), Gateway Center, Emergency
Services,and Dickson House; and elevator upgrades at the Justice Facility and Whitted Human
Services Facility.
• Emergency Generator Projects- $240,000
The FY2022-2023 CIP recommends $105,000 to add an Automatic Transfer Switch (ATS) to
the generator system at the Orange County Public Transportation Office when there are
power outages. Currently the system has a manual switch and does not meet the existing
electrical standards. Additional funding of $135,000 is recommended to relocate the
generator at the old detention center to the Asset Management Services Maintenance
Facility for continuity of operations.
• Heating,Ventilation, and Cooling (HVAC) Projects - $109,000
This project is a combination of Heating, Ventilation and Air Conditioning System
replacements including the controls used to manage those systems. The replacements and
repairs are prioritized based on the current age, maintenance history, and facilities served. A
total of $109,000 is recommended in FY 2022-23 to perform professional services in
anticipation of replacements at the Passmore Center and the Mural Courtroom and to
provide component parts to maintain existing systems.
• Justice Facility Improvements - $225,000
The Orange Countyjudiciary has requested audio and visual upgrades to three courtrooms in
the Justice Facility. The Administrative Office of the Courts is funding the upgrade of two
other courtrooms. This recommendation would fund improvements to the Mural Court
Room and Court Rooms 3 and 4 to continue to conduct effective hybrid court sessions that
minimize travel and travel time.
• Orange County Transportation Services Motor Pool Equipment—$61,502
Orange County Transportation Services operates a motor pool that provides routine
maintenance services for most County vehicles. The FY2022-23 CIP recommends funding for
Page 1 6
9
a rotary lift to assist fleet services with the repair of county vehicles and a replacement forklift
for the county maintenance shop to receive and move large materials. Both purchases will be
funded 50% by the County and 50% by grant funding through Transportation Services.
• Parking Lot Improvements-$15,000
The Parking Lot Improvements Project is used to repaint lines in existing parking lots and to
fill cracks in the asphalt to extend the life of the parking lot.
• Phillip Nick Waters Building Remediation Phase 2 - $550,000
The Phillip Nick Waters Building serves as the administrative offices for Orange County
Emergency Services and also houses the Emergency Operations Center. This facility has
experienced moisture inside the wall cavities which has resulted in additional investigation,
troubleshooting, and repair work to mitigate the damages. An additional $550,000 is
recommended in FY 2022-23 to perform final HVAC and building repairs to ensure proper
measures are in place to rectify and prevent future moisture intrusion.
• Piedmont Food Processing Center Improvements - $242,000
Part of the County's economic development strategy is to facilitate the use of locally grown
food and to support the growth of small businesses. The Piedmont Food Processing Center
provides a low cost food production environment to reduce the barriers of entering the food
production market. Orange County owns the facility that houses the Piedmont Food and
Agriculture Processing Program. Funding of$242,000 is recommended in FY2022-23 to design
and replace the existing Heating,Ventilation, and Air Conditioning Units.These replacements
are funded using Article 46 Economic Development Sales Tax proceeds.
• Roofing and Facade Projects - $671,500
The goal of the Roofing and Fagade project is to repair known points of failure and to
proactively identify measures to protect County facilities.These replacements and repairs are
prioritized based on a Roof Asset Management Plan. The FY2022-23 CIP recommends the
replacement of the roof on both wings of the Whitted facility and the continuation of$55,000
annually for an annual inspection and repair program.
• Sustainability Projects-$50,000
The Capital Investment Plan includes an annual recommendation of $50,000 per year to
design and implement sustainability and renewable energy projects on County property. A
portion of funding ($10,000) is set aside to provide a local match for sustainability grant
programs. The balance of funds ($40,000) is recommended for lighting upgrades and to
facilitate the further electrification of the County's vehicle fleet.
• Whitted Site and Stormwater Improvements- $345,000
The FY2019-20 CIP approved funding for site and storm water management improvements in
the rear area of the Whitted Campus, including Whitted buildings A and B, and the Central
Recreation Building.The scope includes site drainage improvements, building waterproofing,
Page 17
10
and site grading changes. The project has been let for bid two times and has been value
engineered to only include the core project scope. Both bids were over the amount currently
authorized. Based on that information, the FY2022-23 CIP recommends adding $345,000 to
the existing project budget in order to complete the project.
Information Technology
Significant information technology and communication improvements are financed through the
Capital Investment Plan. These projects maintain and expand the capabilities of the County's
current information technology infrastructure, employ new technologies to better meet the
needs of County residents, protect and secure critical data and systems, and improve internal
operating efficiencies.
• Information Technology Infrastructure Initiatives - $1,281,556
The FY2022-23 CIP recommends$1,281,556 in Information Technology related infrastructure
investments such as security improvements, server upgrades, desktop and laptop
replacements, data storage, and network improvements. Of the total funding recommended
in FY2022-23, $681,556 will be used to replace an estimated 187 laptops that are over six (6)
years old, and replace an estimated 232 desktops, that are over seven (7) years old.
Recognizing the need for operational flexibility and the continuation of hybrid work
opportunities, fifty percent (50%) of the desktops will be replaced with laptops.
• Register of Deeds Automation - $80,000
The Register of Deeds Automation project is funded using automation fees that are
specifically designated by State Statute to improve technology capabilities in the Register of
Deeds Office. Each year, the County budgets $80,000 which is allowed to accumulate over
time to make significant technology investments.
Parks, Open Space, and Trail Development
The Board has consistently funded projects for parks, open space, farmland preservation, and
trail development intended to preserve natural areas of the County and promote nature activities
for County residents. Funding recommendations in this category are generally guided by the
Parks and Open Space Master Plan, as well as the individual master plans that have been adopted
and periodically updated for each park property. The FY2022-23 CIP recommends funding for
the following projects:
• Blackwood Farm Park—$310,000
Blackwood Farm Park is a 152 acre regional park between Chapel Hill and Hillsborough on NC
Highway 86 and New Hope Church Road. A variety of improvements are currently underway
to install turn lanes and improve the entryway and parking lot areas. The current phase of
development will also add a new picnic shelter, restrooms, amphitheater, disc golf course,
and repair and renovate the farmstead.
The FY2022-23 CIP recommends $200,000 to remediate the Homestead. The CIP also
recommends$110,000 to begin the design process for Phase 3 construction. Phase 3 includes
Page 18
11
the remaining park facilities, primarily the New Hope Church Road overlook and picnic area
facilities and amenities, with associated equipment and operational needs.
• Conservation Easements- $1 million
The Conservation Easement component of the Lands Legacy program was initially funded in
July 2002. Funding of$1 million is programmed every other year to provide matching funds
for State and federal grants to acquire conservation easements to conserve prime or
threatened farmland, sensitive natural areas, or important water quality buffer lands that
support both Board goals and Lands Legacy priorities.
This program allows the land to remain in private ownership and is not publicly-accessible
except upon landowner consent. Over 2,500 acres of prime farmland and natural areas have
been conserved by easement to date, with millions of dollars in state and federal grants
leveraged. The project revenue assumes that matching funds of approximately 50% would
continue to be leveraged.
• Lands Legacy Program - $500,000
The Lands Legacy Program was originally established in 2000 to conserve and protect the
County's most critical natural and cultural resources, including prime and threatened
farmland, future parklands, natural areas, wildlife habitat and prime forests, watershed
stream buffers, and historic archaeological sites.
An annual appropriations approach is recommended to continue in FY2022-23 and in future
years to provide ongoing support to the program.
• Little River Park-$125,000
Little River Park is a cooperative park project, funded fifty percent (50%) each by Orange and
Durham counties. The FY 2022-23 CIP recommends total funding of$125,000 to replace the
playground following an inspection that recommended replacing the structure. Consistent
with the Interlocal Agreement, Orange County's share of the playground replacement is
$62,500.
• Implementation of Neuse River Rules for Nutrient Management- $175,000
The State-mandated Falls Lake Nutrient Management Rules call for each jurisdiction in the
upper Neuse River Basin to reduce total nitrogen levels by 77% and total phosphorus levels
by 40% over a period of years to improve water quality. Compliance with these rules would
be costly to each of the local governments located in the basin. However, the Upper Neuse
River Basin Association has successfully proposed an implementation approach that would
be less expensive and includes a mix of storm water control or wetlands creation
improvements, conservation acquisitions and practices, and other methods. The FY2022-23
CIP recommends that $175,000 be allocated on an ongoing basis for the design and
implementation of one or more of these measures in Orange County.
Page 19
12
• Parks and Recreation Facility Renovations and Repairs - $180,000
Funding of$180,000 is recommended in FY 2022-23 for ongoing safety, lighting/energy, park
infrastructure, signage, preventive maintenance, and landscape improvements to the
County's seven parks. Each year, park and recreation equipment and facilities need
renovation, safety improvements, repair, replacement, and upgrades. This project provides
for a scheduled and prioritized funding source for these needs identified in the 2030 Parks &
Recreation Master Plan process.
Lake Orange Dam Rehabilitation -$280,000
Lake Orange is a Class II public water supply reservoir owned by Orange County. The lake's
primary uses are to serve as a public water supply and to maintain minimum flows in the Eno
River as defined within the Eno River Water Management Plan.
The Lake Orange dam was classified by North Carolina Division of Environmental Quality(NCDEQ)
as a "High Hazard" dam in August 2011. This designation means that failure of the dam could
result in severe property damage and/or possible loss of life downstream. In 2018, NCDEQ and
a private engineering firm conducted inspections of the dam that identified deficiencies in this
54 year old structure.
The County retained professional services in early 2022 to review and prioritize repairs of the
dam, intake tower, erosion control barrier, emergency spillway, and concrete spillway channel.
The FY2022-23 CIP recommends structural point repairs within and along the existing concrete
spillway channel and a full perimeter survey of the Lake Orange shoreline, for a total amount of
$280,000. Future fiscal year funding will be recommended to replace the existing intake tower
and the existing concrete spillway channel. This project currently represents the full cost of these
repairs, but the County will seek federal infrastructure grants to reduce the County's costs.
Vehicle Replacements-$1.4 million
The Capital Investment Plan is also used to procure replacement vehicles used by County
Departments. A total of $1,420,671 is recommended in FY 2022-23 to replace several public
safety related vehicles, a remount of an Animal Control vehicle, one (1) new ambulance, three
(3) administrative vehicles for Emergency Services, three (3) AMS facility maintenance vehicles,
one (1) DEAPR vehicle, one (1) DSS vehicle and three (3) health vehicles. Funding for Sheriff
vehicle replacements was sized to be able to replace fifteen (15)vehicles each year until FY 2027-
28, to decrease the average age of the fleet. $1.3 million of this total is county funded and the
additional $106,631 will be grant funded.
The Vehicle Replacement project also includes an additional Emergency Management Pickup
Truck funded by a Homeland Security Grant and the Town of Hillsborough-funded fire marshal
vehicle ($106,631 in total), which was not able to be purchased in FY 2021-22. The terms of the
contract with Hillsborough provide $9,000 each year to collect in this project to eventually
purchase a replacement Fire Marshal vehicle when needed.
Page 1 10
13
Financing the Capital Investment Plan
The Recommended Capital Investment Plan for FY2022-23 totals $40.6 million in expenditures.
Of that amount, $32 million is recommended to be financed by County funded debt. Other
significant sources of funds include additional pay-as-you-go (from Lottery Proceeds) and Article
46 sales tax proceeds. Both of these sources are dedicated to fund school capital needs and
contribute approximately $3.7 million to the resources used to support the CIP. The Plan also
includes approximately $2.6 million in pay-as-you-go or cash funding to support design and
architectural services and smaller projects with short useful lives.
Debt Capacity Target
County policy establishes a debt service capacity target of fifteen percent (15%) of general fund
revenues. Based on prior borrowing approved by the Board, this policy has and is expected to
be exceeded in future years. As the Board considers the CIP, staff will provide updates and
recommend necessary adjustments so that the Board is comfortable with the current and
planned debt over the course of the FY2022-32 CIP.
Horizon Projects
In addition to the investment contained in the Recommended FY2022-32 CIP, the Board may be
asked to address other needs through the capital budgeting process. The projects that are
currently under discussion include:
• Additional School Capital Needs
The County is working in collaboration with the school districts on a Capital Needs Task Force
to update and prioritize school capital improvements. Although the FY2022-32 CIP includes
a $130 million general obligation bond, the capital needs will exceed that amount, so
alternative funding strategies will need to be explored.
• Crisis Diversion Facility
The Behavioral Health Task Force is recommending the establishment of a crisis diversion
facility to address the need for growing behavioral health interventions. The Task Force is
currently working to develop partnerships, a capital cost estimate, and funding model.
• Affordable Housing
During the time horizon of the CIP, the Greene Tract will likely become available to site an
affordable housing project. Although a land contribution is contemplated, additional subsidy
may be required depending on the type of development that is desired. The Chapel Hill-
Carrboro Chamber of Commerce has also proposed strategies through the Big Bold Ideas
initiative to develop more affordable housing in the community. Many of those strategies
rely on some amount of public sector support.
• Community Center Space Needs
The County is currently investigating the feasibility of expanding the Community Center in
the Rogers Eubanks neighborhood. An architect has been retained to identify space needs
and create a cost estimate to address those needs. The Efland Community Center has also
Page 1 11
14
expressed a desire for more space, but the current site will not support an expansion. As a
result, a different approach would need to be considered to increase that space.
• County Recreation Center
The County's existing Central Recreation Center in Hillsborough will require substantial
renovations and potential expansion if it is sized to meet the increasing demand for
affordable County recreation programs.
• Emergency Radio System Build Out
Emergency Services has continued to convene a Radio System work group to evaluate the
most effective and efficient approach to improving emergency radio coverage using the most
current technology. The build out of the new concept will cost less than the original project
scope that included the construction of 17 towers, but it will still require some tower
construction yet to be determined.
• Master Facility Plan Recommendations
The County has retained a consultant to review County space needs and to align those needs
with facility strategies. For example, the County has institutionalized a hybrid work model
for some positions. This model will impact the amount and type of space needed for staff.
The County also owns existing properties that may be surplus to County needs. For example,
the County will have an opportunity to make decisions on the disposition of the downtown
Hillsborough detention center, the site of the former Environment and Agricultural Center,
and the former Public Defender building.
Gratitude and Appreciation
The FY2022-23 Recommended CIP is the culmination of long term planning, creative thinking,
and problem solving by numerous County staff. We thank them for their valuable contributions.
The County's Finance and Administrative Services team, most notably Chief Financial Officer,
Gary Donaldson, Deputy Finance Director, Rebecca Crawford, and Budget Analyst, Kirk Vaughn,
provided exemplary support,advice, and attention to detail. In particular, Mr.Vaughn's analytical
skills,technical capabilities, and strategic thinking have driven the ability for our team to enhance
and improve the capital planning process for the County.
We look forward to working with you over the next several weeks to improve upon the Manager's
Recommended Capital Investment Plan. Please contact us if you have any questions.
Page 1 12