HomeMy WebLinkAboutAgenda - 04-01-2025; 4-d - Presentation of Manager’s Recommended FY 2025-35 Capital Investment Plan (CIP) 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: April 1, 2025
Action Agenda
Item No. 4-d
SUBJECT: Presentation of Manager's Recommended FY 2025-35 Capital Investment Plan
(CIP)
DEPARTMENT: County Manager's Office
ATTACHMENT(S): INFORMATION CONTACT:
Attachment 1. County Manager's CIP Travis Myren, County Manager, (919)
Transmittal Letter 245-2308
Attachment 2. FY 2025-35 Capital Investment Caitlin Fenhagen, Deputy County
Plan Presentation Manager, (919) 245-2303
Kirk Vaughn, Budget Director, (919)
UNDER SEPARATE COVER 245-2153
Attachment 3. Manager Recommended FY
2025-35 Capital Investment
Plan
To Be Provided Prior to or in Conjunction
with the Meetin_g; Will also be Available
Electronically at:
https://www.orangecountync..qov/budget/cip
PURPOSE: To receive the Manager's Recommended FY 2025-35 Capital Investment Plan.
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
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 2025-35 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% in sales tax growth annually over the next ten years. All tax increase
estimates in the CIP are based on the anticipated FY 2025-26 valuation following the 2025
revaluation, not the County's current FY 2024-25 valuation. 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.
2
FINANCIAL IMPACT: There is no immediate financial impact associated with the presentation
of the FY 2025-35 Capital Investment Plan. It is a long-range financial planning tool with a
financial impact in Year 1 (FY 2025-26), if the first year of the CIP is approved by the Board of
County Commissioners with the adoption of the Annual Budget.
ALIGNMENT WITH STRATEGIC PLAN: This item supports many components of the Strategic
Plan. Individual project pages in the Capital Investment Plan will identify the primary objective
related to that planned project.
RECOMMENDATION(S): The Manager recommends the Board receive the presentation of the
Manager's Recommended FY 2025-35 Capital Investment Plan and provide direction to staff in
preparation for detailed discussion at the Board's April 22, 2025, Budget work session.
Attachment 1 3
ORANGE COUNTY
NORTH CAROLINA
April 1, 2025
TO: Board of Orange County Commissioners
FROM: Travis Myren
County Manager
RE: Manager's Recommended FY2025-35 Capital Investment Plan
I am pleased to submit the County Manager's Recommended Capital Investment Plan (CIP) for
FY2025-35. This CIP represents the culmination of several significant and foundational planning
efforts that serve as the County's multiyear blueprint to address critical facility needs and to
advance the goals and priorities of the Board of Commissioners.
Countywide Strategic Plan
The Board's Strategic Plan includes six strategic priorities:
• Environmental Protection and Climate Action
• Healthy Community
• Housing for All
• Multi-modal Transportation
• Public Education/Learning Community
• Diverse and Vibrant Economy
These priorities are reflected throughout the CIP, but the most pronounced examples include
investments in sustainability and clean energy, a new behavioral health crisis diversion facility,
and historic investments in school facilities. Each project page contains a header that indicates
alignment with the Strategic Plan and the Climate Action Plan.
School Long Range Optimization Plan
In November 2024, over 67%of Orange Countyvoters approved a $300 million general obligation
bond to replace and renovate aging school facilities. The need for the bond was expressed in a
study of school facility conditions and educational adequacy.A consulting firm identified the total
Page 1 1
4
cost of addressing all of the school capital needs at this time is over$1 billion.The Board carefully
balanced correcting those facility deficiencies with the financial responsibility that would be
passed on to taxpayers to pay for those projects. Ultimately, the Board chose a combination of a
$300 million general obligation bond coupled with up to $100 million of cash or pay-as-you-go
funding over 10 years.
County Long Range Facility Plan
The FY2025-35 CIP also integrates new County projects as recommended by the County's Long
Range Facility Plan. A consulting firm recommended a total 10-year plan that totaled $130
million. The Board again balanced needs and costs and chose a funding plan totaling $90.1
million. The CIP recommends projects totaling $89.1 million in County costs.
County • Projects
Recommended 1 '
Year of Construction Project County Cost
FY2027-28 Cedar Grove Conditioned $2,635,200
Storage
FY2027-28 Emergency Services $33,571,484
Headquarters
FY2028-29 510 Meadowlands Admin. $3,641,385
FY2028-29 Justice System Space Needs $16,914,576
FY2029-30 Recreation Facility $21,630,703
FY2030-31 Deconstruct Old Recreation $1,095,784
Facility
FY2031-32 Southern Human Services $9,628,672
TOTAL $89,117,804
The Justice System Space Needs project was not specifically included in the County's Long-Range
Facilities Plan. Since that Plan was finalized,justice system stakeholders asked County leadership
to work together to take a more comprehensive view of criminal justice system operations and
to create a facilities plan that more seamlessly integrates those operations. In response to this
request, a Workgroup that includes criminal justice system stakeholders has been reviewing
existing facility needs and analyzing options that include a more comprehensive view of the
system and how it interacts with facilities. This Workgroup may recommend a different set of
projects or different sequence of improvements.
FY2025-35 Capital Investment Plan Cost and Financing Overview
The recommended FY2025-35 CIP represents a decrease of approximately $2 million compared
to the FY2024-34 Approved CIP. The first year of the Recommended CIP, FY2025-26, totals $76.4
million in capital investments. Of this amount, $38.5 million is recommended for County capital
projects, $3.7 million is recommended for proprietary fund spending including Solid Waste, and
Sportsplex, and $34.1 million is recommended for capital improvements to school facilities.
Page 12
5
Financing Sources
The principal funding source for the Capital Invest Plan is County funded debt. The 10-year plan
includes$621.6 million County funded debt. Other significant sources of funds include additional
pay-as-you-go funds for schools and Lottery and Article 46 sales tax proceeds($191.4 million over
10 years) which are also dedicated to fund school capital needs. The Plan also includes
approximately$23 million in pay-as-you-go or cash funding for County Projects to support design
and architectural services and smaller projects with short useful lives.
Recommended Year 1 (FY2025-26) Projects
Education Capital Improvements
The FY2025-35 CIP is the first to follow the School Capital Funding Policy the Board adopted in
early 2025. That policy defines capital spending categories and assigns funding sources to those
categories. The policy also specifies that Major Projects and High Priority Needs projects are
budgeted by project. At the same meeting, the Board adopted the Major Project Planning Policy
Addendum which priorities,guidelines, and principles under which new facilities will be designed.
The FY2025-26 Recommended CIP finances High Priority Needs projects as defined by the School
Long Range Optimalization Study and provides cash funding to begin planning and design for
major projects such as replacement school facilities and significant renovations.
• High Priority Needs-$6.3 million
The CIP includes an annual allocation to address high priority facility needs. High Priority
Needs include instances where a failure would impact the facility's ability to remain open,the
health of major systems, the efficiency and usefulness of the facility, as well as life cycle
replacements of major components with one to three years of remaining useful life.
High Priority Needs are funded using annual debt financing and lottery proceeds. For FY2025-
26,the debt financed allocation is $4.5 million and lottery proceeds of$1.8 million. The Plan
assumes that the amount of debt financing increases by 2% each year.
• Planning Funds for Major Projects
The primary intent of the bond funds is to fund Major Projects such as facility replacements
and significant renovations as identified by the school districts and consistent with the
principles of the School Long Range Optimization Plan. The $300 million in general obligation
bond proceeds are allocated between the districts at $174.7 million to Chapel Hill-Carrboro
City Schools and $125.3 million to Orange County Schools.
In addition to the bond funds, the Board expressed support for allocating $100 million for
planning, design, and project management over the next 10 years.This work is planned using
Pay-Go (or cash). The FY2025-26 CIP recommends beginning with a $6.4 million allocation in
Pay-Go funding. This equates to a tax rate impact of 1.98 cents per$100 of property value.
Page 13
6
After the Major Projects are completed, the supplemental pay-go will provide additional
annual funding for High Priority Needs and increase the county's annual maintenance funding
for the school district portfolio.
County Assets
The FY2025-35 CIP is continuing to recommend repair and critical maintenance of County
facilities and infrastructure. Many of the County maintenance and repair projects throughout the
10-year plan were recommended through a Facility Condition Assessment. As a precursor to the
Facility Master Plan, the County retained a consultant to perform a detailed Facilities Condition
Assessment of each County-owned facility. This Assessment identified and prioritized the
replacement of heating and cooling equipment, building fagades and windows, electrical
systems, and roofing and created a 10-year replacement schedule for each category based on
existing conditions, age, and expected useful life. These investments are intended to improve
resiliency, extend the life of facilities, and improve service delivery to residents.
• Animal Services Shelter Improvements -$818,720
The most recent inspection of the Animal Services Shelter by the Department of Agriculture
and Consumer Services, Animal Welfare Section recommended a series of improvements.
This project recommends implementing those recommendations and making other
improvements to the facility at a projected cost of$818,720.The project will replace the dog-
hold doors, relocate feeding areas, improve air quality and visibility, install guillotine doors to
allow co-housing, add doors between rooms for improved cleaning, tint glass, improve
signage, and replace exterior doors.
• Behavioral Health Crisis Diversion Facility Construction - $22.6 million
The Board of Commissioners has prioritized access to behavioral health services as part of the
Countywide Strategic Plan. One of the Plan's objectives is to, "Improve harm reduction,
prevention, and support services for adults and children experiencing behavioral health
issues, substance use disorder, and intellectual or developmental disability." The County is
currently working with an architect to design the facility and will acquire the site this spring.
The FY2025-26 CIP is recommending that the Board authorize construction funding in the
amount of$22.6 million.
The facility is intended to divert individuals experiencing a behavioral health crisis from
hospital emergency departments and the County's Detention Center. The facility will offer
two primary services. First, it will offer Behavioral Health Urgent Care services for assessment,
stabilization, treatment, and aftercare planning for patients age 4 and older. The facility will
also house Facility Based Crisis services for adults for longer term treatment. In addition to
patients arriving through Emergency Medical Services and law enforcement, the facility will
also accommodate walk-in patients, provide criminal justice stakeholders with clinical
assessments, and offer the most appropriate care for justice-involved individuals in the least
restrictive setting possible.
Page 14
7
• Board of Elections Storage - $381,000
This project was originally budgeted in FY2024-25 to construct secure storage in the back of
the Board of Elections office building. However,the original budget was not sufficient to start
the project. Based on new cost estimates, the budget needs to increase by $381,000 to fully
fund the project.
The new storage space would replace the existing temporary storage containers and allow
for appropriate temperature-controlled storage of voting equipment. The project would add
secure storage space and a ramp for loading and unloading voting equipment. The location
of this expansion is outside of the floodplain which will keep the equipment safe from floods.
• Climate Change Mitigation Project - $267,750
The Climate Change Mitigation Project was established in FY2019-20 to fund initiatives to
combat climate change. The initial program funding was tied to the amount of property tax
generated by one quarter (%) cent on the property tax rate. The Board of County
Commissioners subsequently revised the allocation to 50% for a county administered
competitive grant program and 50%for school-related projects. In the FY2024-25 Budget,the
school allotment was redirected to Emergency Housing Assistance since the School Districts
will soon have access to bond funding. As a result, the tax rate equivalent amount dropped
to roughly one eighth (1/8) of a cent.
The 2025 Revaluation increased the County's total tax base by 39%, so the one eighth of a
cent would generate $404,703. The CIP recommends removing the link between the amount
of grant funding and a portion of the tax rate. Rather,the CIP recommends using the FY2024-
25 amount and increasing it by 2% annually moving forward. As a result, the grant program
increases from $262,500 in FY2024-25 to $267,750 in FY2025-26.The additional revenue will
be retained in the operating budget provides flexibility to fund ongoing sustainability related
expenses.
• Electric Vehicle & Infrastructure Study- $100,000
The Climate Action Plan includes a climate action goal of transitioning the County's fleet to
electric by 2035.The CIP recommends$100,000 to develop a comprehensive implementation
strategy for this transition. The strategy document will include a thorough fleet evaluation to
right-size the vehicle fleet, an implementation strategy for short-term, mid-term, and long-
term purchasing options, identify any barriers to fleet conversion, create an EV charging
infrastructure needs analysis, and identify repair and maintenance requirements. The study
will also discuss the Green House Gas emission reductions associated with the conversion to
electric vehicles.
• Electrical Upgrades - $175,787
This project is used to update electrical systems including distribution panels, interior lighting,
exterior lighting,transformers, and other related electrical items. As a standard practice, each
replacement will follow Leadership in Energy and Environmental Design (LEED) standards by
Page 1 5
8
using the most current energy-efficient materials including Energy-Star rated products and
LED lighting. Recommended Year 1 funding will upgrade a distribution panel at Emergency
Services Substation 1, renovate the electrical system and add exterior lighting at the Orange
County Fuel Station, and add lighting at The Robert & Pearl Seymour Center. This project also
allocates $50,000 for LED upgrades planned for the Richard E. Whitted Complex in the first
year.
• Evidence Storage Building- $3,708,500
The Orange County Sheriff's Office is currently storing evidence in the vacant jail located at
125 Court Street. However, the existing storage space does not meet the current needs of
the Sheriff's Office, and the formerjail is proposed to be deconstructed as part of the County's
Facility Plan. The CIP recommends $3,708,500 for FY2025-26 to construct a new Evidence
Storage building, which may be situated at the Northern Campus on US 70 West in
Hillsborough. This new facility will provide a centralized space to accommodate evidence and
other storage needs. It will also include at least two offices for staff members who manage
and control evidence for the Sheriff's Office.
• Facades - $1,365,800
The Facades Project includes the replacement of exterior doors, windows, and other exterior
improvements. As standard practice, each replacement will be done with the most energy-
efficient materials available at the time of the replacement. Replacements are based on the
current condition and useful life. The most significant investment recommended for FY2025-
26 ($1,347,450) is to replace all exterior windows, doors, and retaining walls at the Whitted
Building. The majority of this project is intended to improve energy efficiency due to the age
of the building.
• Facility Accessibility, Safety and Security Improvements - $25,000
This project funds a variety of facility safety and security improvements throughout the
County. Funding for FY2025-26 will focus on accessibility improvements Countywide.
• Fire Alarm and Fire Suppression System Replacements - $511,740
This project replaces fire alarm systems, fire suppression systems, fire door repairs and
replacements, and emergency exit lighting. Replacements are based on the current condition
and useful life of each system. For FY2025-26, funding is requested to upgrade the fire alarm
system at Animal Services and the Whitted Building as well as to replace fire doors in other
county facilities.
• Heating, Ventilation, and Cooling (HVAC) Projects - $427,224
This project is a combination of Heating, Ventilation, and Air Conditioning System
replacements and the controls used to regulate and manage those systems. The
replacements and repairs are prioritized based on the current age, maintenance history, and
facilities served.
Page 1 6
9
The largest component of this project request ($373,824) is to upgrade and replace portions
of HVAC system that serves the Justice Center. Each replacement is evaluated to use the most
energy-efficient systems including potential conversion to geothermal systems.
• Interior Finish Replacements - $152,000
The Interior Finish Replacement Project is used to replace facility finishes including carpet,
tiles,flooring, and interior replacement needs.The FY2025-26 CIP recommends enclosing the
administrative check-in area at the DSS Building (Hillsborough Commons) and installing
window coverings in the Great Hall of the Seymour Center. These replacements focus on the
use of recycled materials, sustainable materials, and low to no volatile organic compound
products.
• Lake Orange Dam Rehabilitation - $970,000
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 in the Eno River Water Management Plan.
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 FY2025-26 CIP recommends $970,000 to accommodate cost escalation on
previously funded phases based on an updated engineering estimate. Staff will continue to
seek federal and/or private infrastructure grants to reduce the cost of this project.
• Parking Lot Improvements - $191,029
This project is a combination of parking lot repairs, resealing, and repaving across multiple
county facilities. This includes evaluating each parking lot for safety and sufficiency as well as
the addition of green spaces. The FY2025-26 funding would resurface the parking lot at the
Board of Elections and the parking lot and driveway at the Emergency Services Facility on
Meadowlands Drive. Repavement, repairs, and other improvements are guided by a Parking
Lot Assessment study.
• Piedmont Food Processing Center- $120,000
The FY2024-25 CIP included funding to replace the heating, ventilating, and cooling
equipment at the Piedmont Food Processing Center(PFPC). For FY2025-26,this project would
fund system controls for that equipment to manage the system better. This project would be
funded using Article 46 sales tax proceeds.
• Plumbing Repairs - $8,900
The Plumbing Repair project is a combination of major plumbing repairs across multiple
County facilities and includes backflow preventers, hot water heaters, sinks, toilets, water
fountains, and other plumbing-related items. In FY2025-26, funding is recommended to
replace the water fountains at the Gateway Center where Tax Administration and the
Register of Deeds are located. Each replacement is focused on water-saving devices such as
Page 1 7
10
aerators and dual handles as well as the capabiIityto refill water bottles to encourage the use
of reusable containers.
• 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.
• Roofing- $221,710
The roofing project is used to maintain and replace roofing on County facilities. These
replacements and repairs are prioritized based on a Roof Asset Management Plan. The
funding recommended in FY2025-26 replaces roofing at the County Fuel Station and Efland
Cheeks Community Center and also provides $55,000 for the annual roof inspection and
repair program.
• Electric Vehicle Charging Station for County Fleet - $362,448
The Climate Action Plan recommends that the County transition its vehicle fleet to an electric
platform. The FY2025-26 funding of$362,488 includes $276,488 to install 16 electric vehicle
charging stations for nine county departments and $86,000 to complete staff EV chargers
originally budgeted in FY2024-25. The current plan is to install level II charging stations for
Asset Management Services (2), Cooperative Extension (1), Department of Environment, Ag,
Parks, and Recreation (2), Department of Social Services (2), Department of Health (2),
Housing Department (2), Planning Department (3), Tax Administration (1), and
Transportation (1).
The installation schedule for future years is guided by the vehicle replacement schedule to
ensure all electric vehicles have access to charging stations.
• Vehicle Replacements -$3,567,530
The FY2025-26 request for vehicle replacements is consistent with the spending level
approved in FY2024-25. Funding of $3,567,530 is recommended to replace 23 vehicles. The
Sheriff's Office is also recommended to receive a lump sum of just under$600,000 to replace
vehicles as the Sheriff determines. The Sheriff's allocation is included in the$3.5 million total.
Sixteen of the replacements, or approximately 70%, are scheduled to be replaced with
Electric Vehicles (EV).
Department
Asset Management Services 2 EV Pickups
Cooperative Extension 1 EV Passenger Van
DEAPR 1 EV Pickup
1 EV SUV
1 Heavy Duty Pickup
Page 18
11
Social Servies 2 EV Sedans
Emergency Services 2 Heavy Duty Pickups
1 SUV
3 Ambulances
Planning and Inspections 3 EV SUV's
Health Department 2 EV Pickups
Housing Department 2 EV Vans
Tax Administration 1 EV SUV
Transportation 1 EV Passenger Van
TOTAL 23 Replacements
Public Safety
The FY2025-35 Recommended CIP includes investments that will support the County's public
safety functions to modernize information technology systems and continue to reliably and
efficiently respond to emergencies. Vehicles for the Sheriff's Office and Emergency Services are
included in the Vehicle Replacement project.
• Communication System Improvements -$300,000
The radio replacement initiative began in 2004 with over $5 million invested to guarantee a
reliable and up-to-date radio system for first responders. This project replaces and upgrades
portable radios used by Emergency Services,the Sheriff's Office, and the Health Department,
ensuring compliance with the state-mandated upgrade to Time Division Multiple Access
(TDMA) standards.
The CIP recommends $300,000 in FY2025-26 to replace 15 portable and 15 mobile radios for
the Sheriff's Office. These radios require replacement due to their age or condition. Future
radio replacements will be included in the Emergency Services Renewal & Replacement
project to maintain operational sustainability.
• Emergency Services Renewal and Replacement - $598,955
The Emergency Services Renewal and Replacement Fund is used to replace mission critical
Emergency Medical Services (EMS) equipment such as stair chairs, public alert and warning
equipment, Lucas CPR devices, EMS treatment bags, electrocardiograms (EKG's), and
personal protective equipment. The department has developed a long-range recurring
replacement schedule to forecast specific future needs which is represented in subsequent
years of the CIP. The FY2025-26 recommendation also includes the replacement of 13
portable radios (800 mHz) and batteries, consistent with the transfer from an independent
CIP project to an integrated part of the department's operational responsibilities.
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
information technology infrastructure, employ new technologies to better meet the needs of
Page 1 9
12
County residents, protect and secure critical data and systems, and improve internal operating
efficiencies.
• Information Technology Governance Council Initiatives - $145,000
The Information Technology Governance Council project is one of the methods through which
new technology is funded for County departments.The Recommended CIP includes$145,000
to fund three projects:
• An update to the County's website to comply with the 2024 update to the Americans
with Disabilities Act (ADA) final rules. The deadline for completing this work is April
24, 2026.
• A multilingual Chat Bot using Short Message Service (SMS) to be used on Website
Chat, Facebook Chat, Twitter Chat, and WhatsApp Chat.
• A contract management module for the County's financial system to better track
contract end dates and certificates of insurance and automate the contract
management process.
Future years in the CIP indicate a funding level of $250,000. This would represent the
maximum amount of investment in any given year. The actual amount will be driven by the
projects that are recommended each year. As applications transition from the traditional on-
premises model to cloud base, subscription services, fewer new applications will qualify for
CIP funding.
• Information Technology Infrastructure -$988,000
The FY2025-26 CIP recommends $988,000 in Information Technology infrastructure
investments. This project would fund $530,000 in infrastructure components related to
server upgrades, data storage, network improvements, wireless expansion and
replacements, and cybersecurity improvements/prevention/mitigation. Of this total funding
in Year 1, $438,000 will be used to replace an estimated 219 laptops that are over six years
old and $20,000 will be used for Audio Visual upgrades in County conference rooms.
Parks, Open Space, and Trail Development
The Board has historically funded projects for parks, open space,farmland preservation, and trail
development. These projects are 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 Recreation 2030 Master Plan, Lands Legacy Action Plans as well as the
individual park plans. The FY2025-26 CIP recommends funding for the following projects:
• 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 several 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
Page 1 10
13
Neuse River Basin Association secured approval of an alternative implementation approach
that would be less expensive while still protecting water quality. Specific efforts include a mix
of storm water controls or wetlands improvements, conservation acquisitions and practices,
and other methods.
The FY2025-26 project continues the effort to reduce total nitrogen levels in Falls Lake
Reservoir. This project began in FY2022 and will be an annual effort until Phase II of the Falls
Lake rules are promulgated. Efforts continue by the Upper Neuse River Basin Association
jurisdictions to revisit the nutrient modeling. Changing the model may also change the
mandated nutrient reductions, but at this time, the reductions as noted above remain in
place.
• Parks and Recreation Facility Renovations and Repairs - $210,000
The FY2025-26 funding request addresses annual and ongoing safety, lighting, park
infrastructure, signage, preventive maintenance and tree/landscape improvements in the
County's seven parks. Using this project, the department continues a transition from fossil
fuel powered equipment to electric to reduce GHG emissions as recommended in the Climate
Action Plan. This project provides ongoing funding for park needs and initiatives identified in
the 2030 Parks & Recreation Master Plan. Funding is assigned based on a biennial schedule
of repairs and renovations planned for in advance. Each year, the list of scheduled projects is
reviewed and prioritized.
Long Range Proiects
The FY2024-34 Plan includes several projects that are not captured in Year 1.
• Affordable Housing
The FY2025-35 CIP contains a total of $15 million in staggered funding over the 10-year
planning horizon. Consistent with an objective contained in the Strategic Plan,this is intended
to provide a predictable source of subsidy for affordable housing developers.
• Additional Community Center Space Needs
The FY2025-35 CIP projects an expansion of the Community Center in the Rogers Eubanks
neighborhood with design scheduled to begin in FY2027-28. With a total cost of nearly $2.9
million, the project anticipates a funding partnership with the Towns of Chapel Hill and
Carrboro consistent with the original cost sharing agreement.
• Emergency Radio System Build Out
Emergency Services has continued to evaluate the most effective and efficient approach to
improving emergency radio coverage using the most current technology. A new concept for
tower construction has been established, and an implementation plan is proposed to be
funded at $32 million starting in FY2027-28. The County's share of this project is expected to
Page 1 11
14
be$24 million after partnership funding from the Towns based on the number of public safety
radios utilized by each jurisdiction.
• Justice System Space Needs
The County has engaged with current occupants of the Justice Center/Courthouse on the
space needs of the stakeholders. Some funding is reserved in the plan for this purpose ($16.9
million), but the desire expressed by the stakeholders would consolidate all court related
functions into a single facility. The scope and cost of that option would well exceed the
existing reservation.
• Emergency Services Substations
The Plan includes two Emergency Services Substations. The first is budgeted in FY2026-27 at
$3.6 million as a cooperative project with the Town of Chapel Hill. The second is budgeted
beginning in FY2029-30 with a combined design and construction budget of$4.4 million. The
concept for this substation is to serve as a hub to be both an EMS station and a facility to
house community risk reduction services such as community paramedicine, post overdose
response, and mobile crisis.
• Lake Orange Dam— Phase 2
Phase 2 of the Lake Orange Dam project is scheduled to begin in FY2029-30 at a total
budgeted cost of approximately $3.8 million. This phase will address the complete
replacement of the existing emergency spillway weir and existing concrete spillway channel.
• Parks Projects
The Plan currently includes several large park projects in future years. The expansion of
Soccer.com is projected to begin in FY2027-28 at a total cost of approximately$4 million, and
the development of Millhouse Road Park is anticipated to begin in FY2029-30 at a total cost
of over $3.4 million.
Long Range Financial Projections
Debt Modeling
Although the Board only appropriates funding for projects in the first year of the Plan, the CIP is
a long-range planning tool that projects future needs and the financial capacity required to meet
those needs. This is done using a debt modeling tool that projects future debt service
requirements and monitors compliance with the County's ability to pay debt service. The ability
to pay is expressed as a percentage of general fund revenue that is consumed by debt service
each year.
• Debt Service Projected Tax Rate Impact
Projected debt service ultimately requires a tax rate equivalent to pay the annual
installments on borrowing. The Recommended ten-year CIP includes the full $300 million
in tax supported debt associated with the school bond and approximately $90 million in
County facilities. Implementation of this plan will very likely require increases to the tax
Page 1 12
15
rate to fund growing debt service. The table below illustrates an incremental approach to
funding the Plan based on the recommended project sequencing and timing.
2026-27 1.78
2027-28 1.77
2028-29 2.91
2029-30 1.59
2030-31 0.19
2031-32
2032-33 1.04
2033-34 0.73
2034-35
Total 10.01
Other tax rate approaches could be used. For example, the Board could choose an up-
front increase that generates the revenue necessary to fund the growth in debt service
through FY2034-35. That increase would be 7.68 cents if implemented in FY2026-27.
Alternatively, the Board could choose an incremental tranche-based approach where
fewer but larger increments are used. For example, a 4-cent increase in FY2026-27, an
additional 4 cents in FY2029-30, and a final 1.40 cents in FY2032-33 would also finance
the growth in debt service.
• Debt Capacity Target
County policy has established a debt service capacity target of 15% of general fund
revenues. Based on prior borrowing approved by the Board, this target is achieved in
FY2025-26 at 11.19%. However, as money is borrowed for new school and County
projects, the debt to general fund revenue ratio exceeds 15% starting in FY2028-29 and
may reach as high as 19.13% in FY2033-34 based on the incremental tax increase
approach detailed above.
Fiscal Year DS to GIF Revenue %
2026-27 12.86%
2027-28 14.05%
2028-29 16.44%
2029-30 17.77%
2030-31 17.86%
2031-32 17.75%
2032-33 18.63%
2033-34 19.13%
2034-35 18.13%
Page 113
16
Both the projected tax rate impact and the debt to general fund revenue ratio are subject
to change. Both are sensitive to factors such as tax base growth and project timing. As the
tax base grows, each one cent on the tax rate generates more revenue. In addition, if
project implementation lags the projected implementation date, the taxes required to
pay for that debt would also be postponed.
Gratitude and Appreciation
The FY2025-35 Recommended CIP is the culmination of long-term planning, creative thinking,
and problem solving by numerous County staff. The County's Budget Office, led by Kirk Vaughn
and supported by Christy Dodson, provided exemplary support, advice, and attention to detail.
In addition to the work of the Budget Office, this document includes valuable contributions from
Alan Dorman, Director of Asset Management Services, Angel Barnes, Capital Projects Manager,
and Gary Donaldson, Chief Financial Officer. This year's planning process was further enhanced
by the input of the County's Sustainability Manager, Amy Eckberg, and the Strategic Planning
Manager, Kelly Guadalupe.They were integral in advising on aligning the Plan with Climate Action
Plan and Countywide Strategic Plan objectives.
We look forward to working with you over the next several weeks to improve upon the Manager's
Recommended Capital Investment Plan. Please contact me if you have any questions.
Page 1 14
17
ORANGE COUNTY
NORTH CAROLINA
Introduction of the Capital Investment
Plan for FY2025-35
Board of Commissioners Business Meeting
April 1 , 2025
18
Purpose
• Purpose of the Capital Investment Plan
— Board Approves Year 1 of the Plan as the FY2025-26 Capital Budget
— Ten Year Planning Horizon (FY2025-35)
• Imposes Planning Discipline
• No Surprises
— Debt Service Requirements
• Amount of Funds Required in the Operating Budget
• Measures Debt Capacity — Debt Service Compared to Expected General Fund Revenue
• Predicts Potential Tax Increases Required to Pay Debt Service
i
ORANGE COUNTY
2 NORTH CAROLINA
19
FY2025-35 Recommended Capital Investment Plan
• Plan Alignment
— Countywide Strategic Plan — Priorities — Responsive Projects
• Environmental Protection and Climate Action • Climate Action Plan Projects
• Healthy Community • Behavioral Health Crisis Diversion
• Housing for All • Affordable Housing
• Multi-modal Transportation • Mountains to Sea Trail
• Public Education/Learning Community • School Pay-go for Planning and Design
• Diverse and Vibrant Economy • Mebane Water Line Partnership
i
ORANGE COUNTY
3 NORTH CAROLINA
20
FY2025-35 Recommended Capital Investment Plan
• Education Projects — 10 Year Plan
— School Capital Funding Policy
• Adopted January 21 st by BOCC
• School submissions align with Board project-based allocation
• $300 million School Bond
— Allocated by specific project over 6-year window.
— Each District starting design on elementary school in FY2025-26
— Staff adjusted sequencing of district submissions to ensure both were receiving funds at equal rates
• $100 million Pay-As-You-Go (not borrowed)
— Two-year phase in of Pay-Go
» FY2025-26 $6.4 million
» FY 2026-27 $10 million
— Additional Funding to be added in years 6-10 to achieve $100 M over 10 years.
— Provides Flexibility & No interest
— Reduces Impact of Borrowing on Debt Service to General Fund Revenue Measure
— Enduring Source of Maintenance Funds After Bond is Exhausted ORANGE COUNTY
4 I•TORTH ( AROLI1%4A
21
FY2025-35 Recommended Capital Investment Plan
• Education Projects — FY 2025-26
— Major Projects - $12.4 million
• Design of Carrboro Elementary
• OCS Elementary School Design
• Project Management Funds
— High Priority Needs —Allocated to specific projects in both districts - $6.3 M
— Other Capital Uses — Allocated by Category - $6.4 M
— Last Tranche of Supplemental Deferred Maintenance
7 JEE:dw,
Previously Authorized $26,631,000 $24,369,000
FY2025-26 $9,000,000
TOTAL $35,631,000 $24,369,000
ORANGE COUNTY
5 NORTH CAROLINA
22
FY2025-35 Recommended Capital Investment Plan
• Plan Alignment
— County Long Range Facilities Plan County Long Range Plan Projects
$89.1 million in Total Project Costs Recommended
• Seven Major Projects Year of Construction Project County Cost
FY2027-28 Cedar Grove Conditioned Storage $2,635,200
FY2027-28 Emergency Services Headquarters $33,571,484
Refinements FY2028-29 510 Meadowlands Admin Facility $3,641,385
• Justice System Space Needs FY2028-29 Justice System Space Needs $16,914,576
• Emergency Services Headquarters Sub-Station FY2029-30 Recreation Facility $21,630,703
• Southern Human Services Medicaid FY2031-32 Deconstruct Old Recreation Facility $1,095,784
Maximization Revenue FY2031-32 Southern Human Services $9,628,672
TOTAL $89,117,804
i
ORANGE COUNTY
6 NORTH CAROLINA
23
FY2025-35 Recommended Capital Investment Plan
• Plan Alignment Projects '
Year(s) of
Construction Project County Cost
FY 2025-26 Electric Vehicle & Infrastructure $100,000
— Climate Action Plan study
• Five Major Projects FY2025-26-FY2034-35 EV Charging for County Vehicles $4,155,060
— Sustainable Building Policy FY2026-27-FY2034-35 Public EV Charging Stations $250,000
• Directs County departments when FY2026-27-FY2033-34 Solar Photovoltaic Installations $1,800,326
designing, constructing, and operating
County buildings in a manner aligned FY2030-31-FY2034-35 Community Resilience Hubs $1,060,000
with stated Climate Action Plan goals TOTAL $7,365,386
— Other Sustainability Related Investments
• Community Climate Change Mitigation Grant Program - $2,931,788 over Ten Years
• Premium Associated with Purchasing Sixteen (16) Electric Vehicles
ORANGE COUNTY
7 NORTH CAROLINA
24
FY2025-35 Recommended Capital Investment Plan
• Year 1 - Other Major County Projects
— Behavioral Health Crisis Diversion Facility
• $22.7 million Construction in FY2025-26
• $1.8 million Revenue Applied from Cardinal Innovations One Time Transition Funds
— Evidence Storage Building
• $3.7 million County Cost
• Move Evidence from old Jail to new Detention Center location
i
ORANGE COUNTY
8 NORTH CAROLINA
25
FY2025-35 Recommended Capital Investment Plan
• Capital Investment Plan by the Numbers
— Total Recommended FY2025-26 Capital Expenditures - $76.4 million
• County Capital $38.5 million
• Proprietary Funds $3.7 million
• School Capital $34.1 million
— Total Ten Year Plan — $895.8 million
• Decrease of $2 M from FY 2024-34 CIP
i
ORANGE COUNTY
9 NORTH CAROLINA
26
FY2025-35 Recommended Capital Investment Plan
FY2025-35 Recommended Expenditures by Year
180,000,000
$161,975,514 $164,454,928
160,000,000
$148,073,840
140,000,000
120,000,000
100,000,000
■School Bond Projects
$85,154,859 School Capital
80,000,000 $76,379,922
- $68,778,385 $65,467,782 ■Proprietary Funds
- County Capital
60,000,000
$47,829,387
$42,109,162
40,000,000 $35,579,104
20,000,000
0
FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35
t
ORANGE COUNTY
10 NORTH C -ROLII\TA
27
FY2025-35 Recommended Capital Investment Plan
Debt Service Schedule through 2025-35
$90,000,000
$80,000,000 $ $80,632,745
$78,636,345
75,417,770
899
$70,000,000 $64,838,447 $67,291,643 $68,862,
$60,000,000 $57,182,019
$50,000,000 $45,884,4
$39,920,629
$40,000,000
$32,460,117 Borrow on
$30,000,000 first Bond
Projects
$20,000,000
$10,000,000
FY2025-26 FY2026-27 FY2027-28 FY2028-29 FY2029-30 FY2030-31 FY2031-32 FY2032-33 FY2033-34 FY2034-35
ORANGE COUNTY
11 NORTH CAROLINA
28
FY2025-35 Recommended Capital Investment Plan
Annual Debt Service Payments on Existing and Proposed CIP Debt
$90,000,000
'an non non
$70,000,000
$60,000,000
$50,000,000
$40,000,000
13U,000,000
$20,000,000
$10,000,000
(O fl- O M O N M V (n (0 I-- 00 O O N Cl)
N N N N co M co M co () co co (M CM V V V 7
O O O O O O O O O O O O O O O O O O
N N N N N N N N N N N N N N N N N N
■Existing Debt Service ■Proposed CIP Debt Service
i
ORANGE COUNTY
12 NORTH CAROLINA
29
FY2025-35 Recommended Capital Investment Plan
Distribution of Debt Service
$90,000,000
$80,632,745 $78,636,345
$80,000,000 $75,417,770
$
$70,000,000 $64,838,447 67,291,643 $68,862,899
$60,000,000 $57,182,019
?50,000,000 $45,884,443
$39,920,629
$40,000,000
$32,460,117
$30,000,000
$20,000,000
$10,000,000
FY2025-26 FY2026-27 FY2027-28 FY2028-29 FY2029-30 FY2030-31 FY2031-32 FY2032-33 FY2033-34 FY2034-35
■School Debt Service ■County Debt Service ■DTCC TOTAL
ORANGE COUNTY
13 NORTH CAROLINA
30
FY2025-35 Recommended Capital Investment Plan
Debt Service to General Fund Revenue Policy Compliance FY2025-35
22%
20%
19.13%
18.63%
18.13
18% 17.76% 17.86% 17.749,c
16.43%
16%
14.04%
14%
12.86%
12%
11.19%
10%
FY2025-26 FY2026-27 FY2027-28 FY2028-29 FY2029-30 FY2030-31 FY2031-32 FY2032-33 FY2033-34 FY 2034-35
--*--Policy Target tProjected
i�
ORANGE COUNTY
14 NORTH CAROLINA
31
FY2025-35 Recommended Capital Investment Plan
Funding the Plan
• Pay-Go —1 .98 cent tax increase in FY 26, estimated 1 .09 cent in FY 27.
• Debt — No tax increase required in FY 26.
• County has options for how to fund future debt increases:
727026
7 1.78 7.68 4.00
2028 1.77
2029 2.91
2030 1.59 4.00
2031 0.19
2032
2033 1.04 1.40
2034 0.73
Tota 1 10.01 7.68 9.40
ORANGE COUNTY
15 NORTH CAROLINA
32
FY2025-35 Recommended Capital Investment Plan
• Significant Long-Range Projects
— Affordable Housing
• Three Five (5) million installments throughout FY2025-35
— Community Center Space Needs
• Rogers Road Expansion - $2.9 million in FY2027-FY2029
• Chapel Hill and Carrboro Contributions - $1.7 million
• County Share - $1.2 million
— Emergency Radio System Buildout
• Four New Towers + Equipment Enhancements on Five Existing - $32 million in FY2026-28
• Town Public Safety Agencies - $8 million
• County Share - $24 million
i
ORANGE COUNTY
16 NORTH CAROLINA
33
FY2025-35 Recommended Capital Investment Plan
• Significant Long-Range Projects
— Justice System Space Needs
• Work Group Request for Consolidated Facility
• Cost Will Vastly Exceed Current Amount of$16.9 million Budgeted in FY2028-29
— Emergency Services Substations
• Joint Project with Chapel Hill FY2026-27 - $3.6 million in FY2026-27
• Hub Station in Southern Orange County - $4.4 million in FY2029-30
— Lake Orange Phase 2
• Replace Emergency Spillway and Spillway Channel - $3.8 million in FY2029-30
— Parks
• Soccer.com Expansion - $4 million in FY2027-28
• Millhouse Road Park Development - $3.4 million in FY2029-30
i
ORANGE COUNTY
17 NORTH CAROLINA
34
FY2025-35 Recommended Capital Investment Plan
• Schedule for Consideration
— Introduction of the Capital Investment Plan April 1
— Work Session on Capital Investment Plan April 22
— Further Consideration through Budget Work Sessions May-June
— Approval of the Operating and Capital Budget June 17
i
ORANGE COUNTY
18 NORTH CAROLINA