HomeMy WebLinkAboutAgenda - 06-08-2023; 2 - Discussion and Decisions on FY 2023-33 Capital Investment Plan 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 8, 2023
Action Agenda
Item No. 2
SUBJECT: Discussion and Decisions on FY 2023-33 Capital Investment Plan
DEPARTMENT: County Manager
ATTACHMENT(S): INFORMATION CONTACT:
A. FY2023-33 Capital Investment Plan Bonnie Hammersley, (919) 245-2300
Budget Amendment List Travis Myren, (919) 245-2308
Also available electronically at: Kirk Vaughn, (919) 245-2153
https://www.orangecountync.go v/budget/
amendments
PURPOSE: To discuss the FY 2023-33 Capital Investment Plan, accept the Ten Year Capital
Investment Plan, and approve the Intent to Adopt Capital Funding for FY 2023-24.
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 10-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 2023-33 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 and 4% sales tax growth over the next ten 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 4, 2023:
• As a part of the annual budget process, adjustments are made to the allocation of school
funding based on changes to the FY 2023-24 budgeted average daily membership (ADM)
percentages. At the time of the Capital Improvement Plan presentation, only FY 2022-23
ADM information was available. The impact of these numbers changed the CHCCS
percentage from 58.78% to 58.44%, and changed the OCS percentage from 41.22% to
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41.56%. This adjustment is accounted for prior to the Board amendment to adjust the
Article 46 capital allocation policy.
FINANCIAL IMPACT: The Ten Year Capital Investment Plan is a long-range financial planning
tool with a financial impact in FY 2023-24, 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 Ten Year Capital
Investment Plan and approve the Intent to Adopt Capital Funding for FY 2023-24.
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FY 2023-24 Proposed Capital Amendments to the Recommended Budget
Amendment# ..nsor CIP BudgDepartment
CIP-001 Bedford 114 School Capital Change Policy for allocation of Article 46 proceeds to $0 $0
school district by excluding Charter Students in
formula.This provides CHCCS an additional$75,549
in funding for technology capital expenses,and
reduces OCS's funding by the same amount.