HomeMy WebLinkAboutAgenda - 06-06-2024; 2 - Discussion and Decisions on FY 2024-34 Capital Investment Plan 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 6, 2024
Action Agenda
Item No. 2
SUBJECT: Discussion and Decisions on FY 2024-34 Capital Investment Plan
DEPARTMENT: County Manager
ATTACHMENT(S): INFORMATION CONTACT:
A. FY2024-34 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.oran.gecountync...qov/budget/
amendments
PURPOSE: To discuss the FY 2024-34 Capital Investment Plan, accept the Ten Year Capital
Investment Plan, and approve the Intent to Adopt Capital Funding for FY 2024-25.
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 2024-34 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 2, 2024:
• As a part of the annual budget process, adjustments are made to the allocation of school
funding based on changes to the FY 2024-25 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 58.44% to 58.40% and changed the OCS percentage from 41.56% to
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41.60%. The Article 46 funding has also been adjusted, which excluded Charter Students
from the calculation. CHCCS's percentage changed from 61.19% to 61.45% and OCS's
percentage changed from 38.81% to 38.55°/x.
FINANCIAL IMPACT: The Ten Year Capital Investment Plan is a long-range financial planning
tool with a financial impact in FY 2024-25, 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 2024-25.
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FY 2024-25 Proposed Capital Amendments to the Recommended Budget
CIP-001 (tied to Portie-Ascott and Bedford 55 Sustainability -$262,500 -$262,500
OP-009) Reduce Funding for Climate Grant Program
CIP-091 Staff Amendment 52 AMS Update Year 2(FY2025-26)revenue source transfer
from Cardinal Reserve from 1,400,000 to 1,823,121
and subsequently reduce the debt financing amount by
423,121
CIP-092 Staff Amendment 65 AMS Reduce Year 3(FY2026-27) Facility Accessibility,
Safety and Security Improvements by$6,000 for
Blackwood Farm Park-Security Cameras due to
immediate need
CIP-093 Staff Amendment 55 Sustainability Reduce Climate Change Mitigation Project in Year 1 -$51,169 -$51,169
(FY2024-25)to$525,000. This difference is reflected
in the Operating Budget for County Manager-
Sustainability Division to support County wide Climate
Action Plan projects
CIP-094 Staff Amendment 134 Planning& Update Mebane Water Line Expansion Year 1 (FY2024
Inspections 25)revenue source from Article 46 Tax Proceeds to
Debt Financing-Article 46