HomeMy WebLinkAboutMinutes 04-22-2025-Budget Work Session 1
APPROVED 6117/25
MINUTES
ORANGE COUNTY
BOARD OF COMMISSIONERS
BUDGET WORK SESSION - CIP
April 22, 2025
7:00 p.m.
The Orange County Board of Commissioners met for a Budget Work Session on the CIP on
Tuesday, April 22, 2025, at 7:00 p.m. at the Whitted Human Services Center in Hillsborough,
NC.
COUNTY COMMISSIONERS PRESENT: Chair Jamezetta Bedford and Commissioners Marilyn
Carter, Amy Fowler, Sally Greene, and Earl McKee
COUNTY COMMISSIONERS ABSENT: Vice-Chair Jean Hamilton and Commissioner Phyllis
Portie-Ascott
COUNTY ATTORNEYS PRESENT: John Roberts
COUNTY STAFF PRESENT: County Manager Travis Myren, Deputy County Manager Caitlin
Fenhagen, and Clerk to the Board Laura Jensen. (All other staff members will be identified
appropriately below)
Chair Bedford called the meeting to order at 7:00 p.m. All commissioners were present
except Vice-Chair Hamilton and Commissioner Portie-Ascott.
1. Discussion of Manager's Recommended FY 2025-35 Capital Investment Plan (CIP)
The Board discussed 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 (10) 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 (page 40 in the CIP document provides a
bar chart of the ten-year funding plan).
The meeting discussion will focus on the specific projects in the County and Proprietary CIP.
Note: Page numbers are referenced below as they appear in the CIP document. See
Attachment A for the Overall CIP Summary (page 36), County CIP Projects Summary (page 48),
the Proprietary CIP Summaries (page 119), and School CIP Summary (page 131).
2
Given voter approval of the Bond in November 2024, there will also be a discussion of the
funding structure and new organization of the School CIP. Discussion of specific Schools CIP
projects is scheduled for the May 15, 2025 Budget Work Session.
Discussion at this meeting will also be directed to the Debt Service and Debt Capacity —
General Fund (page 171), the Water and Sewer Debt Service requirements paid with Article 46
Quarter Cent Sales Tax proceeds (page 172), and Debt Service requirements for Solid Waste
(page 173) and Sportsplex (page 174).
Travis Myren made the following presentation:
Slide #1
i
ORANGE COUNTY
NORTH CAROLINA
ORANGE COUNTY
CAPITAL INVESTMENT PLAN
FY2025-35
Board of Commissioners'Work Session
April22, 2025
1
Slide #2
3
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
ORANGE COUNTY
2 NOR-1-VI CAROLINA
Slide #3
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 Facility
• Housing for All Affordable Housing Funding
• Multi-modal Transportation Mountains to Sea Trail
• Public Education/Learning Community School Pay-go for Planning and Design
• Diverse and Vibrant Economy PFPC HVAC Controls
ORANGE COUNTY
s R x cA A
Slide #4
4
FY2025-35 Recommended Capital Investment Plan
• Total Recommended FY2025-26 Capital Expenditures -$76.3 million
— County Capital $38.5 million
— Proprietary Funds $3.7 million
— School Capital $34.1 million
ORANGE COUNTY
4 NORTH C A-ROLINA
5
Slide#5
FY2025-35 Recommended Capital Investment Plan
• Animal Services - $818,720 Environmental Protection and Climate Action
(p 52) County Long Range Facilities Plan
— Department of Agriculture Recommendations
• Replace dog-hold enclosures-$404,460 j --
Y.. T
• Resurface epoxy floor-$110,000 additional project
cost to fund actual bid amount _
• $514,460 Total Dept.of Ag.Recommendations
— Other Improvements
• Add doors between rooms for improved cleaning
• Tint glass
• Improve signage
• Replace exterior doors
• $304,260 Total for Other Improvements
ORANGE COUNTY
$ NORTH CAROLINA
Travis Myren said the Department of Agriculture recommendations listed in slide #7 are
required to maintain accreditation for the Animal Services department.
Slide #6
FY2025-35 Recommended Capital Investment Plan
• Behavioral Health Crisis Diversion Healthy Community
County Long Range Facilities Plan
Facility
(p. 53) ,rr.- ram_- - --r-_�v
�,,,,���• per
J - an••dA -- ____-_
c i•
— $22.7 million Construction in FY2025-26
— $1,823,121 Revenue Applied from Cardinal
Innovations One Time Transition Funds c=>
— Staff amendment to reduce the construction
budget by$285,000, consistent with Board
action on the CMAR contract �l '' _ �
• $179,928—Gllbane pre-construction services +
• $35,000—Payment in lieu of taxes to Town of
Fllllsborough to eventually connect stubbed out road
• $70,072—Closing costs and permitting —
s
Commissioner Carter asked if there was any cost sharing in the infrastructure
improvements for the behavioral health crisis diversion facility.
6
Travis Myren said there is no cost sharing, but the storm water retention facilities will be
sized to accommodate both the county's development and future development. He said it must
be done by the county, because the county is developing their parcel first.
Commissioner Carter asked if it was part of closing costs.
Travis Myren said it is part of site costs.
Chair Bedford asked if there is a realtor commission cost.
Travis Myren said no.
Chair Bedford asked about the other closing and permitting costs.
Travis Myren said the permitting fees are to the Town of Hillsborough and to the State of
North Carolina.
Alan Dorman, Asset Management Services Director, said some of those costs include
contingency.
Slide #7
FY2025-35 Recommended Capital Investment Plan
• Behavioral Health Crisis Diversion Facility Timeline
COMPLETE Board approves purchase and sale agreement and Construction Manager at Risk(CMAR)contract
Spring 2025 Final site plan submitted to Town of Hillsborough staff for approval
Summer 2025 Final construction documents prepared
Fall 2025 Permitting completed
Winter 2025 CMAR issues final Guaranteed Maximum Price(GMP)
Winter 2025 Board considers acceptance of final GMP
• Contract includes four(4)Board prior Board approvals at different stages of the project
Winter 2025 Construction begins
Early 2027 Owner acceptance of facility
ORANGE COUNTY
7 NORTH CAROLINA
Slide #8
FY2025-35 Recommended Capital Investment Plan
mate Actin
Mission Support
Contai
Storage
• Board of Elections Storage - -A 4,
$381,000 (p. 54)
— $296,000 approved in FY2024-25 to "• n
create climate-controlled storage for
voting equipment 44` CD
0
Cn
— Additional funds of$381,000 needed " a
due to new cost estimates
• Construction costs and small scale of project
are contributing factors
r
nNINUL
Commissioner Greene asked about the increased cost for the project.
Chair Bedford asked if storage should be in a different location.
Angel Barnes, Capital Projects Manager, said the small square footage resulted in a
higher cost estimate and there are historic district requirements that must be included.
Travis Myren said they can look at alternatives, but he is confident that the Board of
Elections will strongly prefer to be collocated with their staff.
Chair Bedford said it is also a security issue for elections.
Commissioner Carter noted that the property is out of the flood plain and way out of the
500-year zone.
Chair Bedford asked if the basement at Elections had been elevated.
Alan Dorman said it is waterproof and there is nothing of value located on the lower
level.
Commissioner McKee asked if there is space that is climate controlled that could be
used instead.
Travis Myren said this is new construction and it is an expansion of an existing facility.
He also said that the Board of Elections would insist that the voting equipment be co-located
with staff.
Commissioner McKee said the voting equipment is currently in storage units and he
does not see that being any more secure there 100 feet away than it would be in an existing
climate-controlled building and entry controlled. He said he is not sure how many square feet
are needed for the machines.
Alan Dorman said it would be an increase of 1,200 square feet.
Commissioner McKee said it would be the Board of Commissioners' decision as to
where they are located and even if the Board of Elections does not agree, he does not see that
they need to spend funds to create existing space that can be used.
Travis Myren said yes.
8
9
Slide #9
FY2025-35 Recommended Capital Investment Plan
Environmental Protection and Climate Action
• Climate Change Mitigation $267,750 All Climate Action Plan Focus Areas
(p 56) Green Infrastructure Workforce Development Program
— Climate mitigation grants to non-profit and V
public agencies through a formal competitive
grant process
— Originally tied to cent of property tax rate '
— Manager recommends disconnecting future
funding available for grants from tax rate
— Future years assume 2% annual growth in
amount available for grants
Orange County students planting native plants to control stormwater erosion and
runoff in a Carrboro neighborhood.
ORANGE COUNTY
NORTH C:AROLINA
9
Commissioner Greene said she had sent an email earlier in the day and discussed the
history of the grants. She said she hoped that the county would get back to budgeting $400,000
for the grant program.
Commissioner McKee noted that the county participates in other climate change
mitigation strategies. He said he supported the County Manager's recommendation.
Commissioner Greene said the community grant program allows the county to spread
money into the community to address climate change.
Commissioner McKee said he has concerns about raising property taxes to cover debt
and the impact on residents.
10
Slide #10
FY2025-35 Recommended Capital Investment Plan
• Climate Change Mitigation Project Status
FY2023-24r
Supplemental weatherization to Habitat for Humanity $55,000 In progress Shade for Schools Trees for the Triangle $50,000 In progress
home repair projects
Green infrastructure and Green Infrastructure Workforce Urban Sustainability $5g,700 In progress
pprenticeship program for Urban Sustainability $69,156 Completed Development Program Solutions
range County Schools Solutions Rooftop Solar on St.Joseph's Solar Equity $50,000 In progress
Hillsborough United CME Church
Rooftop solar Church of Christ $10,000 Completed
Electrical Panel for Solar Project EMPOWERment $19,800 In progress
Rooftop solar Binkley Baptist Church $49,036 Completed Prairie Restoration and
Rooftop solar on Peach Reforestation Projects Eno River Association $22,600 In progress
panments EMPOWERment $61,623 In progress
Food Forest Jubilee Healing Farm $12,000 In progress
Installation of gardens,terrace Club Nova $37,227 In progress
and greenhouse Rooftop Solar on Habitat Homes Habitat for Humanity $50,000 In progress
LED light campus changeover CHCCS $94,014 Completed
54-panel solar panel pedestal
ith battery storage and EV Orange County Schools $188,029 In progress
harging stations
�1
ORANGE COUNTY
NORTH CAROLINA
10
Chair Bedford said she wanted to discuss community resilience hubs. She said right now
there are just schools being used but if people need to be housed for a longer period and
schools need to start back would they need to house people in a different place. She asked if
the $212,000 is intended to buy generators.
Amy Eckberg, Sustainability Projects Manager, said there was some funding allocated to
establish some resilience centers, and they are looking at having them serve as areas that can
provide refuge during storms when the power is out. She said ideally, they would run off of solar
power. She said that the value of these centers was evident during Helene. She said they are
looking at the Senior Centers for the hubs. She said she was excited to announce that they just
received a grant for solar installation on the Cedar Grove Community Center for almost
$200,000 from the State Office of Energy.
Chair Bedford said that is wonderful. She asked if it would come back and if some of the
$212,000 could be used for some of the RENA expansion to create one of these hubs.
Amy Eckberg said yes.
Alan Dorman said all community centers and senior centers have whole building
generators.
Chair Bedford asked if the funds are needed then.
Amy Eckberg said the funds would also be used for solar and battery backup storage
along with other resilience features.
11
Slide #11
FY2025-35 Recommended Capital Investment Plan
Environmental Protection and Climate Action
Transportation Goals
• Electric Vehicle & Infrastructure IL
Study - $100,000 (p. 59) 0
— Climate Action Plan includes a goal to
transition the County's fleet to electric by 2035
— Study will help develop a comprehensive
implementation strategy for this transition f
• Analyze the size of the fleet to right size
• Review purchasing options oRw�c'` Y
• Identify barriers to Fleet conversion
• Create an EV charging infrastructure implementation
plan—right number of chargers in the right places
Commissioner Carter asked how the planning listed in slide #11 connects to future EV
projects.
Travis Myren said those future projects would be guided by this study.
Commissioner McKee asked if there is anyone on staff who could perform this study.
Travis Myren said he could not think of anyone on staff with the technical expertise.
Commissioner McKee said locating charging stations would be based on vehicle
numbers in the area and the space they would need.
Travis Myren said there is a need for market knowledge and staff is at capacity so there
is not a person available to do this work without taking from another project.
Commissioner McKee said some of the worst decisions he has made over the last 15
years have involved studies and consultants. He said he understands that he may be walking
past dollars to find pennies but at some point, they are going to have to start looking at pennies.
Chair Bedford said locating EV charging stations is a small part of the study. She said
reviewing purchasing options to compare strategies and figuring out what sets them up for the
most value is an additional part of this study.
Commissioner McKee said he would like a presentation for the current fleet of EVs and
gasoline vehicles, so they can compare apples to apples. He said he would like to see cost of
running the vehicles per mile and repair costs.
Chair Bedford said climate change should also be included. She said they have
reviewed elements of it, but they have not had a full presentation. She said it might be that they
ask the consultant to do that.
Travis Myren said that type of analysis is part of the scope for the consultant.
Commissioner McKee said he understands the trend is toward electric and he has no
issue with that, but he wants to make sure they follow their fiduciary duty to the public.
Amy Eckberg said the county is still able to take advantage of direct pay rebates and
that is 30%. She said they can get a huge chunk of money back for any electric vehicle
purchases and those funds could be re-invested. She said staff does not have the capacity to
figure out what their electrical capacity is and that is something that they need to study.
12
Chair Bedford said that this would be taken as a petition to include that in the study.
Slide #12
FY2025-35 Recommended Capital Investment Plan
Environmental Protection and Climate Action
Built Environment and Energy Goals
• Electrical Upgrades $175,787 (p. 60)
— Robert& Pearl Seymour Center-$107,437
• Add additional lighting and reworklinstall outlets
— Fuel Station- $14,850
• Full electrical system renovation
— Emergency Services Station 1 -$3,500
• Update distribution panel
— Energy Efficiency LED Upgrades - $50,000
ORANGE COUNTY
NORTH CAROLINA
12
Chair Bedford said that in year 4, costs go up dramatically for electrical upgrades. She
said there was also an upgrade for the Justice Center in the future, which does not seem to be
necessary given discussions about other Justice Center improvements.
Travis Myren said that any upgrades would be timed with other projects.
Chair Bedford said there is $1.1 million in year six for a full electrical redo at the West
Campus and for the Passmore Center in year seven. She asked what a full electrical redo
includes.
Angel Barnes said a full electrical redo looks at lighting fixtures, breaker panels,
transformers, and automatic or manual switches. She said equipment wears out over time and
this would look at anything from the transformer over.
Chair Bedford said it is like a schedule for replacing roofs. She asked why that is not
needed for residential.
Angel Barnes said it is recommended for commercial buildings.
Commissioner McKee asked if it is recommended maintenance.
Angel Barnes said yes.
Commissioner McKee asked if it is recommended from a safety perspective or safety
audit.
Angel Barnes said not from a safety audit.
Commissioner McKee asked if they moved it back and verified that there are no safety
issues if there is a requirement to hold to the recommendation. He said he did not believe it
would be necessary.
Chair Bedford said they pay about $55,000 every year for the inspection of roofs and
asked if it is possible that they can adjust and get the electric inspected.
Alan Dorman said if it were a safety issue they would have a different approach but that
it is not at this time.
13
Commissioner McKee said he wants to make sure they are safe, but this is a private
industry standard that was developed by people that sell this material.
Commissioner Carter asked if there are insurance implications.
Travis Myren said this is in the context of a 10-year plan. He said that as projects get
closer, they can look to see if anything can be pushed out farther. He said a 10-year plan is
meant to capture expected costs so the county can plan.
Chair Bedford said if it can be moved two years, that could save $2-$3 million dollars
and those could be saved for other emergency needs and it would make a difference in debt
service, as well.
Commissioner Fowler asked what the recommended frequency is for full electrical
redoes.
Angel Barnes said she would look into it.
Commissioner McKee said you do not want to wait for things to get bad or for buildings
to collapse because the county delayed necessary improvements. He said that he does not
want to continue the mindset of everything is fine and we can keep doing as they have been
doing.
Commissioner Carter asked if there are any operational savings from the upgrades.
Travis Myren said they are representing a general decline in the rate of increase based
on the energy efficiency.
Chair Bedford said that would have to do with LED lights but not necessary the
transformers and wires.
Commissioner Fowler said the lifespan is 20-30 years and she would like to know where
they are in that.
Chair Bedford said it would be good to have an inspection.
Alan Dorman said West Campus was built in 2009 and he said they built a lot of
buildings between 2007-2009.
Commissioner Fowler said it looks like we are using the 20-year rather than the 20-30-
year plan.
Slide #13
14
FY2025-35 Recommended Capital Investment Plan
Mission Support �■
• Evidence Storage Building- $3,708,500
(p. 63)
— Current evidence storage is in the former
detention center facility
— New building to be located at the Northern
Campus on US 70 West
— Includes office space for staff members who
manage the evidence
— Size and scope of new facility under review as
part of the Justice System Space Needs Work
Group1
ORANGE COUNTY
is NORTH CAROLINA
Travis Myren said that if the Sheriff's Office is moved to the Link Building, there will also
be capacity for "warm" evidence storage. He said that it would decrease the size of the
evidence storage building listed in slide #13 and reduce the cost to about $2.4 million. He said
the smaller storage building would still be needed for"cold" storage.
Chair Bedford asked what the timeline is for deciding on the Link Building and amending
the budget.
Travis Myren said that staff will work with the Sheriff's Office to make a final
determination and then they will bring that back to the Board as a budget amendment.
Slide #14
15
FY2025-35 Recommended Capital Investment Plan
Environmental Protection and Climate Action
Built Environment and Energy Goals
Facades $1,365,800 (p. 64)
— Exterior doors, windows, sidewalks,
retaining walls, loading docks -
i
• Richard E Whitted Complex(Buildings A&B)
— Replacement of Exterior Windows- "
$1,045,000
— Replacement of Exterior Doors&Retaining
Walls-$302,450 �`
,y ryIOMWM4Y4nMiM®MiE.
• Gateway Center-Awning over entrance door 11��
-$15,000 j
• Eno Mountain Equipment Storage-
SidewalklConcrete Repairs$3,350 1
ORANGE COUNTY
14 NORTH CAROLINA
Chair Bedford asked when the last time the windows in the Whitted Building were
updated.
Alan Dorman said some were more recent, but many were from 2004.
16
Slide #15
FY2025-35 Recommended Capital Investment Plan
Mission Support
• Facility Accessibility, Safety, and Fire Alarm and Fire Suppression System
Security Improvements - $25,000 Replacements - $511,740 (p. 68)
(p. 66)
— Whitted Human Services
— Facility Wide Accessibility Improvements Fire Alarm System Upgrades-$305,745
• Emergency Exit Lighting -$7,920
— Future years include elevator and security _ Animal Services
system upgrades. • Fire Alarm System Upgrades-$173,075
— Fire door replacements Countywide -
$25,000
• New building code requires annual inspections
leading to more replacements
�1
ORANGE COUNTY
6 NORTH CAROLINA
Slide #16
FY2025-35 Recommended Capital Investment Plan
Lovirowll eillat P oteutioo ai)o l.,ilmale Acbu(i
Resifier,f communifv Goals
• Heating, Ventilation, and Cooling (HVAC)
Projects - $427,224 (p. 74)
Component Replacement -$50,000
• Proactively maintain system components to extend the life of the
systems
— Justice Facility Air and Heat-$373,824
• Phased replacement of 30 of the water source heat pumps
across the Justice Facility
• Remainder of the heat pumps are scheduled for replacement in
FY2026-27
Eno Mountain Communication Equipment Storage-
$3,400
— Stores fire/EMS paging repeaters,Sheriff's Office VHF
repeater,and microwave link equipment that connects to the
Emergency Services Headquarters
Commissioner McKee asked the age of the heat pumps.
Alan Dorman said they were done around 2007.
Commissioner McKee asked if there are issues with the heat pumps or if this one a
schedule.
17
Alan Dorman said he would not say there are problems, but that they do not want to be
too conservative on replacing heat pumps.
Chair Bedford said they have lasted almost 20 years.
Commissioner Carter asked about the generator projects in the CIP. She asked for a list
of all buildings with backup generators.
Slide #17
FY2025-35 Recommended Capital Investment Plan
Environmental Protection and Climate Action
Built Environment and Energy Goals
Interior Finish Replacements - $152,000
(p. 76)
— Seymour Center Great Hall window coverings-
$61,000
— Enclose administrative check-in area at
Hillsborough Commons (DSS)-$91,000 X
ORANGE COUNTY
NORTH CAROLINA
17
Alan Dorman said the enclosure at Hillsborough Commons was to preserve client
confidentiality.
Commissioner Greene asked for more information about the improvements to the
Seymour Center.
Travis Myren said the Seymour Center could be deferred, but the Hillsborough
Commons was a priority.
Alan Dorman said the Seymour Center project would increase energy efficiency.
18
Slide #18
FY2025-35 Recommended Capital Investment Plan
Environmental Protection and Climate Action
Built Environment and Energy Goals
• Lake Orange — Dam Rehabilitation -
$970,000 (p. 79)
— Accommodate cost increases of Intake Tower
project originally authorized in prior years based on
an updated engineering estimate
— Future years will replace existing emergency
spillway and concrete spillway channel
— Staff will continue to seek federal and private
infrastructure grants to reduce the cost
ORANGE COUNTY
NORTH CAROLINA
18
Commissioner McKee asked if federal grants could offset the cost of dam rehabilitation.
Travis Myren said yes.
Slide #19
FY2025-35 Recommended Capital Investment Plan
Built Environment and Energy Goals
Resilient Community Goals
• Parking Lot Improvements - $191,029
— Repave Board of Elections Parking-
$124,242
— Repave Emergency Services Parking Lot
and Driveway -$36,787
— Other Repair, Patching, Striping, Sealing -
$30,000
— Review to reduce unnecessary parking and
create more green spaces ORANGE COUNTY
NORTH CAROLINA
19
Commissioner Carter asked if the Elections parking lot is in the flood plain.
Travis Myren said yes, a portion of it.
19
Slide #20
FY2025-35 Recommended Capital Investment Plan
Environmental Protection and Climate Action
Green Community Goals
• Piedmont Food Processing Center-
— FY2024-25 Budget included replacement of
the HVAC system at PFPC
— FY2025-26 project adds system controls for
better system management and controlAll him
MR
— Funded from Article 46 Sales Tax Proceeds.
ORANGE COUNTY
20 NORTH CAROLINA
Commissioner Carter asked if the PFPC was included in an emergency preparedness
plan.
Travis Myren said he did not think so, but he would look into it.
Commissioner McKee asked if all the participants in the facility are private enterprises.
Travis Myren said yes.
Commissioner McKee said that probably would affect their participation in an emergency
preparedness plan.
Chair Bedford said PFPC met with Emergency Services, and they do have large
capacity refrigerators and commercial kitchens.
20
Slide #21
FY2025-35 Recommended Capital Investment Plan
Environmental Protection and Climate Action Mission Support
Resource Conservation Goals
• Plumbing Repairs - $8,900 (p. 84) Register of Deeds Automation - $80,000
(p. 87)
- Gateway Center water fountains
• Including bottle filling functionality - Multiyear account to finance technology
improvements in Register of Deeds Office
- Collection of funds is mandated under
General Statute
ORANGE COUNTY
21 NORTH CAROLINA
Chair Bedford said in year four, septic will be done at the Cedar Grove Community
Center. She said there was a study on the septic when she first was on the Board, and it is
something that needs to be looked at each year.
Slide #22
FY2025-35 Recommended Capital Investment Plan
; tom
Environmental Protection and Climate Action
Built Environment and Energy Goals
• Roofing - $221,710 (p. 89)
- Annual inspections and repair program - i
$55,000
- Roof Replacements& Repairs
• Efland Cheeks Community Center-$145,410
• Eno Mountain Comm Tower-$2,500
• Fuel Station-$18,800
ORANGE COUNTY
N(IR-1-ti CAROLINA
zz
Chair Bedford asked about a future project for the Rogers Road Community Center. She
said the project seems to have grown.
21
Travis Myren said that to accommodate all of the programming needs, the project would
need to be two stories. He said that the Board could review the scope of the project. He said all
of the needs were addressed by the current occupants and the Board can take a closer look. He
said that the impervious surface does not allow them to build out, so they have to build up and
then they have to add elevators, and it certainly affects the costs.
Chair Bedford asked for this to be brought back at a future work session.
Slide #23
FY2025-35 Recommended Capital Investment Plan
Environmental Protection and Climate Action County Fleet EV Stations
• Electric Vehicle Charging Stations
for County Vehicles - $362,448
(p. 94) i
— 16 Charging Stations based on current
and planned EV assignments -$276,488
• Asset Management Services(2) Y '
• Eno River Parking Deck(4)
• Hillsborough Commons(2) !
• Bonnie B Davis Center(3)
• Transportation Services(1)
• Whitted Building (4)
— Additional Funds needed to complete
staff EV charges approved in FY2024-25
- $86,000
23
Chair Bedford asked about the solar photovoltaic systems in a future year project. She
asked if they are already put in at new builds.
Travis Myren said yes.
Chair Bedford asked if they are in the EMS substations.
Travis Myren said that the county looks at feasibility for solar on all new buildings. He
said that he saw 1,000% tariff on solar panels, so it depends on costs right now on if any of it is
affordable.
Alan Dorman said they are working on a feasibility study now to see where they can get
the most solar energy per dollar.
Commissioner Fowler asked if the EV study would be done before the charging stations.
Alan Dorman said that the study would be done before implementation of any charging
stations.
Chair Bedford asked if an expansion of Southern Human Services Center is necessary.
She said it does not seem crowded when she visits.
Travis Myren said that project renovates the current space and also looks at expansion.
He said the exam rooms need to be upgraded. He said they could review the expansion
aspect.
Chair Bedford said she would like to see figures for the cost with and without the
expansion.
Commissioner Fowler asked if Medicaid funding would be lost if they are not spent in a
certain timeframe.
22
Travis Myren said they roll from year to year.
Chair Bedford said the focus of those funds are limited.
Commissioner Carter asked if the EV study could be presented to the Board.
Travis Myren said yes.
Slide #24
FY2025-35 Recommended Vehicle Replacements
Eovuowneotai Protection and Climate Acticr
Transnorlation Goals
• Vehicle Replacements - $3,567,530 total (p. 95)
— Public Safety Priorities
• Emergency Services $2,053,304
- Ambulances(3)-$1,744,539
- Administrative Vehicles(3)-$308,765
• Hillsborough Fire Marshall (reimbursed) $9,000
• Sheriff's Office vehicles $598,271
• Total Public Safety $2,660,575
�1
ORANGE COUNTY
24 NORTH CAROLINA
Chair Bedford asked if all of the ambulances are new vehicles or replacements.
Travis Myren said all are replacements.
Commissioner McKee asked what administrative vehicles are and why are they so
expensive.
Travis Myren said they are primarily SUVs and trucks that must be outfitted with light
bars and equipment.
23
Slide #25
FY2025-35 Recommended Vehicle Replacements
Liiviroiimental Protection and Climate Action
Transportation Goals
— Administrative Vehicles Electric Vehicles in County Fleet
• AMS Service Vehicles (2) $119,950 with FY26
Current• Cooperative Extension Van $71,906 Recommended
• DEAPR Vehicle Replacements (2) $89,635 Total county Fleet 373 373
• DEAPR Truck Replacement $54,066 Less Public Safety 211 211
• DSS Vehicle Replacement (2) $80,319 Total Non-Public Safety 162 162
• Health Vehicle Replacement (2) $72,400 Total FV•s 22 38
• Housing Replacements (2) $141,306 ev i of County Fleet 14% 23%
• Planning Replacements (3) $121,979
Strategic Plan performance measure to replace at least
• Tax Admin Vehicle Replacement (1) $39,160 8 non-public safety vehicles per year with electric
J(1)
• Taxes,Tags, Registration $72,338 FY2025-26 CIP recommends a total of 16 electric
vehicles
• Total Administrative $906,956
ORANGE COUNTY
zs NORTH CAROLINA
Slide #26
FY2025-35 Recommended Emergency Services Projects
Healthy Community
Mission Support
• Communication System Improvements —
$300,000 (p. 97)
— Multiyear plan to upgrade radios for Time
Division Multiple Access(TDMA) compliance
• Emergency Services
• Sheriff's Office
• Health Department
— FY2025-26 authorization would replace 15
portable and 15 mobile radios for the Sheriff's
Office
�1
ORANGE COUNTY
26 NORTH CAROLINA
24
Slide#27
FY2025-35 Recommended Emergency Services Projects
Mission Support
• Emergency Services Replacement and
Renewal — $598,955 (p. 99)
oil
— Replacement of Emergency Medical Services
Equipment
• Long range replacement schedules for mission critical
EMS equipment
— EKG monitors '
Radios
— Automated External Defibrillators(AED)
- a ks
— Radios
— Power Air Purifying Respirator(PAPR)
ORANGE COUNTY
N4DR- I C:AROLINA
27
Slide #28
FY2025-35 Recommended Information Technology Projects
Mission Support
• Laptop and Desktop Replacements - $438,000 (p. 103)
— Desktop/Laptop replacement schedule implemented in FY 2021-22
— 219 Laptops are over five (5)years old
Impact of Laptop Replacement Schedule Impact of Desktop Replacement Schedule
1400 Soo -
1200
400
l000
800 300
600 200
400
200 100
0 0
FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29
0 0-4 Yrs. 5-6Yrs. ■7-9Yrs. 010+Yrs. 0 0-4 Yrs. 5-7Yrs. 08-10Yrs. 011+Yrs.
25
Slide #29
FY2025-35 Recommended Information Technology Projects
Mission Support
• Information Technology Infrastructure - $988,000 (p. 103)
— Install Standardized AN in Conf. Rooms $20,000
— Wireless Expansion & Replacements $20,000
— Cyber Security Initiatives $120,000
— Server and Network Upgrades $390,000
— Laptop/Desktop Replacement Schedule $438,000 from prior slide
— Project Total $988,000
ORANGE COUNTY
29 NORTH CAROLINA
Slide #30
FY2025-35 Recommended Information Technology Projects
Mission Support
• Information Technology Governance Council Initiatives - $145,000 (p. 104)
— New technology for Departments- Up to$250,000 per year
• Update the County's website to comply with the 2024 update to the Americans with Disabilities Act(ADA)final rules
— Deadline for completing this work is April 24,2026
• Multilingual chat bot on County website
• Contract management module for the County's financial system
— Better track contract end dates and certificates of insurance
— Automates the financial processes related to contract management
— Operating costs of software maintenance included by year
ORANGE COUNTY
30 NORTH CAROLINA
26
Slide#31
CIP ParkPr jectLnr.M— Long Range Parks Plan
No projects recommended in FY2025-26
FY2026-27 Hollow Rock-$224,000
50%funded by Durham County
.L FY2027-28 Blackwood Farm Park-
!r . $100,000
FY2027-29 Soccencom Phase II-$3.96
• million
• FY2028-29 Little River Park II-$100,000
• 50%funded by Durham County
FY2029-30 Mountains to Sea-$693,000
• ® FY2030-32 Fairview Park Improvements-
$1.9 million
-@ e • °-"" FY2030-32 Upper Eno Nature Preserve-
• $438,000
b
FY2032-34 Millhouse Road-$3.45 million
50%funded by Town of Chapel Hill
FY2034-35 Northeast Dist.Park Planning-
$277,265
Proiects Outside of Ten-Year Planning Horizon
�E o•� � 9
Prm,kN=M � Cedar Grove Park II Planning ORANGE COUNTY
Bingham Park Planning
==.s— Twin Creeks Park Planning NORTH CAROLINA
Commissioner Carter asked about conservation easements listed in the CIP. She
recalled that there was about $4 million that was unspent. She asked how that gets applied.
Travis Myren said that would show as "prior approved funding."
Kirk Vaughn said the balance of all county and school capital projects are listed in the
CIP as an appendix.
Chair Bedford said that on page 167, between conservation easements and lands
legacy, they are expecting to spend funds that will bring the balance down.
David Stancil, DEAPR Director, said there are about $400,000 worth of projects that will
be coming back to the Board that have been previously authorized but not finalized. He said that
there is also about $300,000 of projects that have been approved but have not closed yet.
Chair Bedford asked if that $700,000 total.
David Stancil said yes and that he is always conscious of what is pending and
encumbered.
Chair Bedford said about $3.4 million between the two that are holding space in 10-year
plan but not yet borrowed.
Travis Myren said yes, it is included in the debt model, and they would borrow when
those expenditures would occur.
27
Slide#32
FY2025-35 Recommended Parks, Open Space, and Trail Development Projects
Environmental Protection and Climate Action
Grer'n com',,,,;r,if
• Neuse River Rules for Nutrient Management - $175,000 (p. 114)
— Alternative Implementation Agreement for Falls Lake nutrient management
— Each jurisdiction agrees to budget and implement projects to reduce nitrogen levels in reservoir
— Gravely Hills Middle School Stormwater Wetland Retrofit
d
fS r•
Slide #33
FY2025-35 Recommended Parks, Open Space, and Trail Development Projects
Healthy Community
n Commur ' Goal
• Park and Recreation Facility Renovations, Repairs, and Safety Improvements -
$210,000 (p. 116)
— Annual request for ongoing capital improvements
• Tree repair and management
• Replacement soccer equipment I`
• EV Tools for park maintenance (ex� Saws)
• Cedar Grove basketball court resurfacing
• River Park garden repair
• Little River playground natural surface
• Preventative maintenance
• Fairview Park access improvements
— Connection to Homemont Drive and accessibility improvements
around Fairview CommunQy Center �°+s
ORANGE COUNTY
a3 NORTH CAROLINA
Chair Bedford asked about Fairview Park projects on page 108 of the CIP. She asked if
Phase II will be on the landfill part of the park.
David Stancil said yes and that has been reflected in the CIP. He said that once the
landfill issues are mitigated and the land is usable, this will be where the park is placed.
28
Chair Bedford said she does not think that $3 million will cover mitigation needs because
it had a lot of really bad chemicals listed. She asked if the $1.9 million into year 11 because she
does not think it will be workable. She said that she has been waiting on the state for six years.
David Stancil said that the state has the consultant's mitigation findings and has
identified a consultant to create a mitigation plan. He said that things have taken much longer
than expected. He said it is all paid by the state. He said that he hopes by 2026 the plan is
ready for the public. He said it will go through a 45-day public hearing and public comment
process.
Chair Bedford said the Board has tried to prioritize making improvements in
neighborhoods that have not had parks. She said that they may need to rethink Millhouse Park.
She said that parks are becoming more of wants instead of needs. She asked if they sold it if
they can make it deed restricted. She said the former mayor of Chapel Hill, Pam Hemminger,
had really pushed to make this a joint project and at this point, she is unsure if the Town of
Chapel Hill has the funds for it. She said that Alderwoman Haven-O'Donnell is pushing that it
could be an economic development project if it had been sold to a private developer for athletic
use.
Commissioner Greene said she would like more information and discussion on the
Millhouse Park project and perhaps not put it in the CIP at all.
Chair Bedford said she would like to have a budget work session on that.
Commissioner Greene said she does not think she is even ready to have a work session
on it because she may just recommend that it not be in the CIP until they have much more
information.
Travis Myren said it will be added to the rolling calendar to have the discussion, and it
will not be before June 17th.
Chair Bedford said there are funds that are not being spent on the Mountains to Sea
Trail and asked if they can be used for something different.
David Stancil said the $693,000 is for the very last section of the trail and in year three or
four. He said the existing funds are going to be spent on a project he alluded to just earlier,
trailheads, park trails, and a very expensive highway crossing. He said a lot of the money will
get used.
Commissioner Fowler asked if the trailhead on Hwy 54 is where Bingham Park might be.
David Stancil said no and that they envision that Bingham Park would be along the
route. He said the approved master plan for Parks and Recreation, is that the Mountains to Sea
Trail would connect to Bingham Park.
Chair Bedford said in relation to Soccer.com, she thinks that three fields for $5.4 million
is high.
David Stancil said the improvements in years seven through nine are improvements to
existing infrastructure. He said the first part in years three and four are for the new expansion.
Chair Bedford asked if it would be legal to use occupancy tax to fund some of this.
Travis Myren indicated that it could be used.
Travis Myren said the next slides are related to enterprise funds and do not impact the
county's general fund.
29
Slide #34
d Solid Waste
m Facilities
Y A. Eubanks Road
District Center
f+Ecas reo
B. Ferguson
Neighborhood Center
a C. Bradshaw Quarry
• S 70 Neighborhood Center
N
` a D. High Rock
Neighborhood Center
�a
E. Walnut Grove District
Center
69
d
54
ORANGE COUNTY
Slide #35
FY2025-35 Recommended Solid Waste Projects
Environmental Arotectior '1 Climate Action
Operational Support
• Solid Waste Operations Building-$286,000 (p.
120)
- Replacement of Crew and Vehicle Maintenance '
Buildings which are 25+years old
-- FY2025-26 includes professional services for building _—
design and site work --_ -- -- - -
- Construction in FY2027-28
�1
ORANGE COUNTY
as NORTH CAROLINA
30
Slide #36
FY2025-35 Recommended Solid Waste Projects
i 'I E10R°GF
b I
I I
EXKiNC
GiYE
I
, I
.a...,o a �a �. �,��• I ��...,. I : ,_�� „ E.4_ � �
• W
.•,..- mrmms
E]fLOOR FLAN-OPTION I •MAINTENANCE BUILDING ADDITION
ORANGE COUNTY LANDFILL FLOOR PLAN SD-1
XSXE EUE 3RD 1-EL NU NE MIS
~ANEW CREW BUILDING
OMNGE COUNTY LANDFILL ,� "'"""' �'
ORANGE COUNTY
36 N012TI—I CARIi
Slide #37
FY2025-35 Recommended Solid Waste Projects
Environmental Protection and Climate Action
Transportation Goals
• Solid Waste Vehicle and Equipment Replacements-$2,988,294 (p. 121)
• New AC Machine -$6,000 IS Replace Front Loader#1963 - $455,681
• Replace Wheel Loader#460 -$284,586 IS Replace Skidsteer#730 -$60,243
• Replace Hook Truck#1768 - $297,024 IS Replace Ford F250#852 - $49,694
• Replace 315 D Excavator#433 -$296,604 Replace Mower#229 -$7,290
• Replace Cat 32 Excavator#462 -$337,979 Replace Mower#226 -$8,500
• Replace Ford Pickup#853 -$87,565
• Replace Wheel Loader#7154 - $202,967
• Replace Automated Curbside Truck
1966 - $447,081
• Replace Automated Curbside Truck
#1967 -$447,081
ORANGE COUNTY
37 NORTH C—:AR4i
31
Slide #38
FY2025-35 Recommended Sportsplex Projects
Healthy Community
• Sportsplex Projects - $470,000
— Backflow Preventer and HVAC Replacements-$150,000 (p.125)
— Ice Rink Rental Skate Replacements- $35,000 (p.127)
— Design of New Family Change Area and Roof Structure over Artificial Turf Field
- $120,000 (p. 129)
— Pool Vacuum and Plaster Replacement-$165,000 (p. 130)
ORANGE COUNTY
38 NOR-rH CAROLINA
Commissioner McKee asked if the ice surface issues at the Sportsplex were addressed.
He said some hockey players had contacted him a year or two ago.
Andrew Stock of the Sportsplex said those issues were addressed and they can manage
it better now.
Slide #39
FY2O25-35 Recommended Capital Investment Plan
• Timing for County Long-Range Facility Plan Projects
County Long Range Facility Plan Projects
County Long Range Facilities Plan Recommended in FY2025-35
• Following O'Brien Atkins Recommendations Year of Construction Protect County Cost
• Up to$90.1 million FY2027-28 Cedar Grove Conditioned $2,635,200
• Seven Major Projects Storage
FY2027-28 Emergency Services $33,571,484
Cedar Grove Conditioned Storage Headquarters
• Need to move storage out of EAC for FY2028-29 510 meadowlands Admin. $3,641,385
potential reuse of EAC FY2029-29 Justice system space Needs $16,914,576
FY2029-30 Recreation Facility $21,530,703
FY2030-31 Deconstruct Old Recreation Facility $1,095,784
FY2031-32 Southern Human Services $9,628,672
TOTAL $89,117,804
39 ORANGE
COOUNA Y
32
Chair Bedford asked if the county did not build a new recreation facility, what would the
needed repairs be.
Alan Dorman said $7.5 million would still be needed for repairs.
Chair Bedford asked what kind of programming takes place at the current gym. She
said it is used for basketball in the evenings.
David Stancil said it is used all day for preschool, afterschool, classes throughout the
day, and at night there is basketball and volleyball, rentals from the community, and summer
camps.
Chair Bedford said that if one of the school systems builds an elementary school or
middle school, there would be an option for their gym to be built with an outside door and
separate bathrooms and offices. She said that kind of facility would only be available after 6
p.m. She said it is expensive, but it was ranked high. She asked if the $7.5 million in repairs
would only help the county limp along with the existing facility without improvements.
Alan Dorman the facility is in need of improvements and the figure includes renovations
and they have also put off several large CIP projects. He said they can do it for less, but it would
be far from idea.
Chair Bedford asked where the new gym would be located.
Travis Myren said there is space by the motor pool and also where it is currently located.
He said the opportunity cost would be that they cannot expand programming and serve more
children.
David Stancil said the current facility is maxed out.
Commissioner Fowler asked if the new one is built, would the existing facility be
demolished.
Chair Bedford said yes. She said there were options for other projects to be adjusted.
She said she thought there should be contingency for escalating costs of capital projects. She
asked if there was a capital reserve fund.
Travis Myren said there is less than $60,000 in that fund.
Chair Bedford asked if there should be a contingency fund that could be tracked so staff
could see what specific expenditures were higher than expected. She asked if that is allowed.
Travis Myren said the expenditure needs to be connected to a capital project. He said
each project carries a contingency of about 8% of the cost of construction.
Kirk Vaughn said the CIP is a plan. He said once funds are borrowed, it needs to be tied
to a project. He said placeholders for future years do not result in borrowing until much later.
He said it could be a project basis or tied to a contingency project as part of the plan.
Commissioner Fowler confirmed that 8% contingency is included.
Travis Myren said yes.
Chair Bedford said the expenses increase each year and they have not been very
accurate on the operating side.
Kirk Vaughn said it has been an extraordinary period of expenditure and inflation. He
said that it has operating impacts and those are reflected on page 47.
Travis Myren said they cannot borrow for operating costs.
Chair Bedford said it has an impact on whether they should do the project. She said that
she learned that $23 million is county pay-go and she asked if there is a history of pay-go. She
said if they are framing $6.4 million causing a tax increase, it really is all of the projects together.
She said she did not know that they were doing prior year pay-go.
Kirk Vaughn said not every CIP cost is "borrowable." He said the $23 million in pay-go is
over 10 years. He said there is a summary of the county capital on page 49, which is an
incremental increase over time.
Travis Myren said that if it were not for the school projects there would not be a tax
increase.
33
Chair Bedford said there is an option that they could use debt for that and there is
flexibility.
Slide #40
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 FY2027-28
• Town Public Safety Agencies-$8 million
• County Share-$24 million
40 ON ONGR'rH COOUNA Y
Chair Bedford asked if the Link Building project is three years out.
Travis Myren said it is four years out and they will bring back a recommendation on the
timing of it all.
Commissioner Fowler asked if the Chapel Hill and Carrboro contributions to the Rogers
Road Community Center are in addition to the $2.9 million.
Travis Myren said no, and that the county's portion is $1.2 million.
Chair Bedford said it is not confirmed that they want to participate.
Travis Myren said they would need an inter-local agreement and that it would need to be
negotiated.
Commissioner Fowler said that the county is including the share for the expansion.
Chair Bedford said the revenue is offsetting.
Travis Myren said they are assuming the projects will be cost shared on the same basis
as the original community center project.
Commissioner Greene said it looks like Article 46 is being used. She asked if half of
Article 46 is still being reserved for the schools.
Travis Myren said yes.
Chair Bedford said $500,000 debt rolled off this year for sewer. She asked if that is built
into Article 46 budget.
Travis Myren said there is an Article 46 model and if the debt service is decreasing, that
is getting consumed by the incentives that the county approves. He said that the thought is that
Article 46 pays for the incentive projects.
Commissioner Carter said there is no water and sewer infrastructure included in the CIP
after that $500,000 rolls off.
Travis Myren said they do not have anything firm enough to be put into a plan at this
point.
34
35
Slide #41
FY2025-35 Recommended Capital Investment Plan
• Significant Long-Range Projects
— Justice System Space Needs Work Group Update Based on April 9 Meeting
• Justice Stakeholders
— All functions under one roof
— Secure and modem courtrooms
— Short Term Plan Under Development
• Concept is to move Sheriff to renovated Link Building
— Current Justice System Space Needs budget can accommodate
— $16.9 million in Justice System Space Needs project
— $13.5 million estimate to renovate Link Building
• Backfill Sheriff's Office with District Attorney and Public Defender and perhaps others
— Longterm plan
• New Courtrooms, Parking, Remodel existing spaces
• Add Adult Probation, Juvenile Justice _
• $90+million cannot be accommodated in current 10-year plan
a1 ORANGE
COUNTY
NOR`FHCA
Slide #42
FY2025-35 Recommended Capital Investment Plan
• Significant Long-Range Projects
— Emergency Services Substations
• $3.6 million in FY2025-26 for colocation with Town of Chapel Hill—Site feasibility study underway
• $4.4 million in FY 2029-30 for Emergency Services Hub
— EMS substation plus Community Paramedicine,Post overdose Response Team,and Mobile Crisis Team
— Lake Orange Dam—Phase 2
• $3.8 million in FY2029-30 to replace emergency spillway and spillway channel
Parks Projects
• Soccer.com expansion in FY2027-28-$4 million
• Millhouse Road park development in FY2029-30-$3.4 million total cost
— Additional School Capital Needs
• Total School Capital Needs-$1 billion
• Continued Planning and Vigilance
ORANGE COUNTY
42 NORTH CAROLINA
36
Slide #43
FY2025-35 Recommended Capital Investment Plan
FY2025-35 Recommended Expenditures by Year
1e0,00o.000
$161,975,514 $164,454,928
160,a00,000
$148,073,840
140,000,000
120,000ADD
1w,w0,000 ■School Bond Projects
$85,154,959 ■School Capital
Ba,0u0,0a0 $76,379,922
$68,778,385 ■Proprietary Funds
$65,467,782
■County Capital
60,D00,000 $47,829,387
$42,109,162
40,000,000 $35,579,104
20,000,000
D
FY 2D25-26 FY 202E-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
43 ORoR l-�ECOUNATY
Chair Bedford discussed the three tranches and if expenditure speed impact the tax
needs.
Kirk Vaughn said that there is a slide that covers that in detail coming up.
Slide #44
FY2025-35 Recommended Capital Investment Plan
Debt Service Schedule through 2025-35
$90,000,000
$80,632,7a5 576.636,345
580,000,00E
$70,0,EOD 967,291,643 S68,862,899
$64,a38,44]
$6D.00o,000 557,182,a19
$s0,a00,o00 $45,ae4,4
539,920,629
$4DO ,D00
$32,460,117 Borrow on
$30,000,000 first Bond
Projects
520,000,00E
$10.aao,000
5
FY2025-26 FY2026-27 FV027-28 FY2028-29 FY2029-30 FY2030-31 FYZ031-32 FY2032-33 FY2033-34 FY2634-33
ORANGE COUNTY
44 NowrH CAROLINA
37
Slide#45
FY2025-35 Recommended Capital Investment Plan
Annual Debt Service Payments on Existing and Proposed CIP Debt
seo,000.oao
s2n,o9o,om
96o,a9o,ovo
sw.coo.ow
$-0 W.000
¢10,d6p,600
sm.o9o.oao
81ga9opm
b
•Er i Mug N bt Service •Props CIPCebtS.—
45 ORAN GE�COUNTY
NIDSlide #46
FY2025-35 Recommended Capital Investment Plan
Debt Service to General Fund Revenue Policy Compliance FY2025-35
2x%
o%
19-13%
18.63%
iB.13%
le% 17.76% 17_efi%
1b.43%
16%
19.09
ld%
u,96%
12%
ID%
FY2025�26 F12n26.27 FY2c27.28 FY2028.29 FY20293D FY203a FY20333 FY203z33 PY203334 FY2014-35
y�Pd ky T9r8H —Pr J—d
�1
ORANGE COUNTY
46 NORTH CAROLINA
Commissioner Carter asked what the statutory requirements are for debt.
Travis Myren said there are no legal, statutory requirements, but it is considered a best
practice according to government finance professional organizations. He said it also considers
the comfort level of rating agencies. He said there is a law about the percentage of assessed
valuation that can be dedicated.
38
Chair Bedford said they are nowhere close to that limit.
Travis Myren said they are not close at all.
Slide #47
FY2025-35 Recommended Capital Investment Plan
Funding the Plan
• Pay-Go—1.98 cent tax increase in FY2025-26
• Debt—No tax increase required in FY2025-26
• County has options for how to fund future debt service increases in the future
Fiscal Year Incremental Tax Upfront Tax Tranche
2026
2027 1.78 7.68 4.0
2028 1.77
2029 2.91
2030 1.59 4.0
2031 0.19
2032
2033 1.04 1.4
2034 0.73 _
Total 10.01 7.68 9. o
ORANGE COUNTY
47 NOR'I'1-I CAROI.INA
The Board indicated that they were interested in an incremental tax strategy as listed in
slide #47.
Slide #48
FY2025-35 Recommended Capital Investment Plan
• Schedule for Consideration
— 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
ORANGE COUNTY
48 NOR-rH CAROLINA
39
Slide #49
Questions?
ORANGE COUNTY
N4DR-r I CAMOLINA
Kirk Vaughn made the following presentation:
Slide #1
ORANGE COUNTY
NORTH CAROLINA
School Capital Investment Plan
FY 2025-35
April 22, 2025
Board of Commissioners Work Session
40
Slide#2
What has changed from prior School CIPs
• Adoption of the School Capital Funding Policy (Page 177) & Major Project
Planning Addendum (Page 181).
- School CIP has been reorganized into three sections (Major Projects, High Priority Needs, Other
Capital Uses)
• Inclusion of Major Project plans by both school districts, with county staff
assisted sequencing.
Phasing in of Pay-Go funds to assist Major Project funding - $6.4 M in FY 26, full
$10MinFY27
• Project-based allocations for High Priority Needs Projects.
• Questions about specific projects can be directed to School Staff at May 15th
Education Budget Work session
�1
z ORAN HE COUNTY
NTOSlide #3
Major Projects — Projects and Sequencing
• CHCCS — Pages 132-134
- FY 26 Carrboro Elementary, FY 27 Estes Hills Elementary and FY 31 Frank Porter Graham
Elementary replacements
• OCS — Pages 151-153
- Tentative plan of FY26 Elementary School Replacement, FY 30 Major Renovation
Elementary School, FY 31 Major Renovation Middle School
- District currently in public review of three options that differ from plan presented to the county.
• County used the following rules to sequence these plans
- Bonds must be borrowed within 7 years of referendum. May ask for 3-year extension with
LGC.
- Once borrowed, funds must be drawn down for actual expenses within 3 years.
- Funds are allocated between the districts fairly and within the tax impact as presented to the
public.
ORANGE COUNTY
3 NORTH CAROLINA
41
Slide #4
Major Projects — Projects and Sequencing
• Every year, the Bond funds will be able to fund less impactful investments. Staff
wanted formula to quantify that loss in value. — Net Present Value Formula
• If you divide the NPV by the total funding provided to that district, you get an
estimate how much each district loses from being allocated in future years.
Net Present Value/Total Funding
Original Tranche Model 90.78%
CHCCS Sequencing 90.70%
OCS Sequencing 90.71%
• Both bond plans lose about the same value from being allocated in future years
and are within our original tanche model.
• The $300 M Bond plan spread out over 7 years is worth the same as if we
funded $272 M in projects all in FY 2025-26.
4 OP,ANG CA OLINA COUNTY
TTOR'FHChair Bedford asked what interest rate is assumed.
Kirk Vaughn said 3%.
Slide #5
Major Projects — Projects and Sequencing
Bond Funding By District
$60.000.000
$70,000,000 $69.13 M
$60.000.000
$51.28 M $62.68 M
S50,000,000 $47.70
$40,000,000 35.84 M
$80,000.000 $28.50 M
S20.000.000
$10,000.000 $6.0 M.
0.42 M$3.68 M
g ■ $.77 M
FY 202a Fv 2027 F 2o2a FY 2029 FY 2030 FY 2031 FY 2032
■CHCCS Funding ■OCS Funding
*Planning Funds for 005 Elementary Replacement
using Bond Funds, not Pay-Go ORANGE COUNTY
5 NowrH CAROLINA
42
43
Slide #6
Major Projects — Project Costs and Funding Source
• Major Projects are funded using a combination of Pay-Go and Bond Funds.
CHCCS Projects Bond Funds Pay-Go Funds Total Funds OCS Projects Bond Funds Pay-Go Funds Total Funds
Carrboro Elementary $ 47,700,000 $ 5,300,000 $ 53,000,000 Elementary Replacement $ 57,283,000 $ 2,817,000 $ 60,100,000
iEstes Hills Elementary$ 51,547,000 $11,283,000 $ 62,830,000 Major Elementary Renovation $ 27,000,000 $ 3,000,000 $ 30,000,000
Frank Porter Graham $ 63,901,300 $ 6,240,000 $ 70,141,300 Major Middle School Renovation $ 37,340,000 $ 7,660,000 $ 45,000,000
Contingency+HPN $ 11,551,700 $31,050,999 $ 42,602,699 Contingency+HPN $ 3,677,000 $22,649,001 $ 26,326,001
Total $174,700,000 $53,873,999 $228,573,999 Total $125,300,000 $36,126,001 $161,426,001
• Pay-Go funds provide four major uses to support the Bond Program:
- Absorb soft costs like Design, Project Management
Project Management included in separate$1 M/year project not allocated to either district pending ILA
negotiations.
- Extend project budgets above what the Bond could support on its own.
- Improve County debt metrics once county debt exceeds 15% of GF revenues
- Once bond projects are done, support the districts'High Priority Needs
�1
s ORAoR GE COUNrH ATY
Slide #7
Major Projects — Pay-Go Phase-in
To spread out tax burden, the Manager's Recommended CIP splits Pay-Go
introduction into two steps. $6.4 M in FY 26, and an additional $3.6 M in FY 27,
to reach $10 M target.
- To maintain$100 M over 10-year commitment,the $3.6 M shortage in year 1 is added
incrementally into the later years of the plan. Reaches $11.2 M in year 10.
• $6.4 M is tied to specific project activities listed below.
Amount Usage Convert to Bond Proceeds?
Design funds for Carrboro Elementary
$5.3 M (pg,132) Yes.Can borrow design with construction in FY 27.
Not directly.Would need to be tied to specific
Project Management Set Aside(pg. projects to be borrowed.Would increase project
$1.0 M 164) budgets.
Preliminary site selection and design forPossibly.Only if construction on project occurs by FY
$100 K OCS Elementary School(pg.151) 27.
�1
ORANGE COUNTY
7 NORTH C:AROLINA
44
Slide #8
Major Projects — Pay-Go Phase-in
Staff can rework Pay-Go Phase-in to further delay tax increases. Though would
need direction from Board in how to adjust overall plan. Four possible adjustment
frameworks:
1. Reduce Pay-Go in early years, reallocate funds for additional Pay-Go in
backend to maintain $100 M over 10 years.
Impact: Less funding available to Major Projects, increased funding for later High Priority
Needs.
2. Reduce Pay-Go in early years, do not reallocate funds to future years.
Impact: Less funding available to Major Projects.
3. Delay district projects by a year, requiring later pay-go introduction.
Impact: Increased Major Project costs due to inflation, less time to complete projects.
4. Reduce Pay-Go allocation across ten-year plan. No longer target $10 M/year.
Impact: Less funding available total.Worse debt metrics. ORANGE COUNTY
8 NORTH CAROLINA
Chair Bedford said she thought that they would be approving projects separately and
considering how each one is going.
Kirk Vaughn said a school CIP is similar to the county's CIP, where it is a plan, but only
year one is approved at a time.
Commissioner Fowler said she thought the county needed to see the entire budget
before determining how to approach pay-go. She said she would like to keep as much of the
pay-go as possible and if they were forced to choose, she would choose #1. She said it
depends on the total bill and what that would mean.
Commissioner Carter said she preferred to look at option 1, with option 3 possibly in
tandem. She said there are federal cuts coming to major programs that will impact them
operationally and those will not be known for some time. She said that Medicaid will be
significantly cut so she would like to be flexible on pay-go because that may be hard for them.
Chair Bedford said she was thinking of a form of option 1, where pay-go is reduced in
the first year and borrowed.
Kirk Vaughn said that is option 1. He said that bond funds would fill in where the pay-go
was reduced. He said it would cut bond funds from a later project.
Commissioner Greene said she hoped they could keep all of the pay-go. She said she
did not support options 3 and 4. She said option 1 is her first alternative.
Chair Bedford said she agreed with Commissioner Greene.
Commissioner McKee said he is more inclined to option 2, because of concerns about
costs of schools. He said that options 1 and 2 were his preference.
Chair Bedford said that they will discuss project management in the schools in the fall.
She said they will have to make decisions as a Board about how to move forward. She said they
have agreed that the construction manager at risk has more value than the others and they may
need to explain that to the schools.
Kirk Vaughn said the current structure has the school having the contract with the
construction manager.
45
Commissioner Carter said having the construction manager at risk will mitigate some of
the costs. She asked if the county is still pursuing a program manager to manage all projects in
both school systems.
Travis Myren said those funds could be used for program management. He said this
needs to be negotiated with the districts. He said that a county staff person can be brought on
rather than a consultant and they can use the pay-go funds to fund salaries.
Commissioner McKee said projects will get more and more expensive and the county
will need to lock bids down to keep from escalating.
Chair Bedford said they spoke a bit about this at the Durham Tech meeting, and they
have a person working with them on resourcing and timing.
Commissioner McKee said it will be key to not let costs get away from us.
Chair Bedford said they may not get a third school, depending on expenditures.
Commissioner McKee said the funds will not go as far as hoped.
Slide #9
Major Projects — CIP Pages and Presentation
Each of the districts three Major Projects are listed as separate project pages.
The remaining funds are listed in a remainder project (Page 135,154), with a detail
sheet that districts have provided to identify usages:
ftErnnl � Yeul YYrl YMe3 Yv Ype5 Yvfi Y[+r) Yerj Yv9 YSRYIR
C+nporo fkmenl+ Repl+[emml Xlaod a.101(IGa S !)nU 04
fsl[a Xrllt Ekmemary Replacemrn Xlml $ 6.383.00 $ 56,55).OW
nR pprter Gunam 9arrgye XnpRl Reels[.•-
MCDo�le fkmenury nIIMa - W1]
Mc[brgle MMGk Sebol Ml[I..� W31 i6459J
[ndpN Xal Xr nXnOd $ 6.tIW,OW
Morns G(w[Ekm[nury -
RatNnCkmerrtary 5 3.81.]1i
Mary XrOgp CMmpmdry acMal - 5 3.ID5.WG
xv YrR ENmem+ry 5[Mal .rwl Reearr:,i. S 9:?C:
F p[iut Ekm[nlary nl IMdrrt Eurmrn5l W 31 :R 83]
o[vawme ,nmeer :.ux,eea
PFrldpt Mltltlk Xnwl snJaumlwPrm7llV:i 5 I,]+fi,IOa
PInIL aMAtlk XFcol MIiM+mIlW 5to 3 9 Id+5.9a5
OntrFt Wife S 16).353 5 <.369.LW
Remainder funds will be split into specific project pages for any projects in year 1
of a future CIP. � —
ORANGE COUNTY
9 NOWIM CAROL INA
46
Slide #10
High Priority Needs — CIP Pages and Presentation
CHCCS Pages 137-144 OCS Pages 156 - 160
$4,235,042 $2,091,178
• High Priority Needs projects funded by existing annual debt funding and lottery
proceeds funds.
• Project based allocation - Individual Project Pages for all projects with FY 2025-
26 funding, identifying the specific project and the Woolpert definition. Summary
Project for all remaining years 2 - 10 funding.
New Hope Elementary-Roof Replacement
Project Category S,h- I Eu—ianal Sa MleArea: Education
Department: Orange County Schools Strategic Allgnment: public Education/teaming Community Objective
Project Number. OCSHPI Dim
ate Action Plan: N/A
$1,397.610 in FY 2025-26 and$594,690 in FY 202&27 is budgeted to complete a roof replacement at New Hope Elementary School.This project is identified as level 2-Essential in the Woolpert
framework as adopted by the Board of County Commissioners,
10 ORANGE
CA COUNTY
Slide #11
Other Capital Uses — CIP Pages and Presentation
CHCCS Pages 145 -148 OCS Pages 161 — 163
$3,826,002 $2,555,118
• Other Capital Uses projects funded by existing Article 46 and Recurring Capital
funds. Both tax supported Pay-Go sources.
• Purpose or Function based allocation — Project Pages based on type of
expense, regardless of location.
• Allocated to both districts' Technology replacements, Rental expenses and
Recurring Capital allocations.
ORANGE COUNTY
11 NORTH CAROLINA
47
Slide #12
Supplemental Deferred Maintenance
CHCCS - Page 149
$9,000,000
Last tranche of $60 M, allocated between districts based on ADM at point of
allocation.
Funds predated current School Funding Policy, so allocated in one purpose or
function project code.
District provided detailed usages and alignment to Woolpert priorities on Page
150.
12 ORAN GE ACOUNATY
Commissioner Carter asked what the last tranche of$60 million was for.
Chair Bedford said that was for maintenance needs at the schools.
Slide #13
Questions?
ORANGE COUNTY
NORTH CAROLINA
Commissioner Fowler asked if staff could model how delaying pay-go as in option 3 on
slide 8 would impact the tax rate.
Travis Myren said they could provide that.
48
Kirk Vaughn said he could model different scenarios for the Board.
Chair Bedford said that in a previous meeting, she asked about spending speed and the
three tranches and was told that it does not make a difference.
Kirk Vaughn said the way they paid for those projects happening more quickly is it took
out from 29 and 30 so it was split out to remain neutral. He said if they take the first-year
projects and slide them back, we could not slide the savings, and it would not really change the
incremental tax rate.
Adjournment
A motion was made by Commissioner Greene, seconded by Commissioner Fowler, to
adjourn the meeting at 9:27 p.m.
VOTE: UNANIMOUS
Jamezetta Bedford, Chair
Recorded by Laura Jensen, Clerk to the Board
Submitted for approval by Laura Jensen, Clerk to the Board