HomeMy WebLinkAboutAgenda - 04-21-2003-2ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: April 21, 2003
Action Agenda
Item No. 2
SUBJECT• 2003-2013 Capital Investment Plan (CIP) Presentation & Issues Discussion
DEPARTMENT: Budget PUBLIC HEARING: (YIN) No
ATTACHMENT(S):
2003-2013 Recommended ClP
(distributed under separate cover)
INFORMATION CONTACT:
Donna Dean, ext 2151
TELEPHONE NUMBERS:
Hillsborough 732-8181
Chapel Hill 968-4501
Durham 688-7331
Mebane 336-227-2031
PURPOSE: To receive a presentation of and conduct preliminary review and discussion of
the recommended Capital Investment Plan for FY 2003-2013.
BACKGROUND: Each year, the County Manager and staff update the County's ten-year
Capital Investment Plan (CIP). The CIP is a multi-year plan that addresses County and school
needs for long-lived assets. Items typically included in the CIP are construction, refurbishment,
or purchases of buildings; land acquisition or improvement; and major equipment and vehicle
acquisition and financing. This process offers an opportunity to review long-term capital needs
and enables timely acquisition and phased financing of major assets.
During the January 2003 annual planning retreat, the BOCC expressed the desire to have this
year's update provide a comprehensive view of the ten-year capital planning period. To that
end, the recommended CIP includes all .capital needs that have been identified by various
departments, regardless of whether there is sufficient anticipated pay-as-you-go revenue or
designated debt financing to pay for them. A separate "unfunded project" section identifies
those needs. In the interests of comprehensiveness, the CIP also integrates projects that have
been or will be funded fully or in part from $75 million bonds approved by voters in November
2001 and $37.7 million to be funded over the next five years through alternative financing
mechanisms. The timing of bond sales and alternative financing for those projects was
approved by the BOCC on September 3, 2002.
It should also be noted that the school portion of the CIP will be presented later in the budget
process. With the advent of the Schools Adequate Public Facilities Ordinance (SAPFO)
system, school capital planning in this and subsequent years will need to be pushed back
several months from the historical pattern. Actual student membership figures as of November
15 each year are used as the basis for annually updated student projections generated and
analyzed by County, school, and municipal staffs between December and February each year.
Once school building capacities and student projections are certified by representatives of all
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SAPFO partners each February, those projections become the basis for forecasting additional
school facility needs during the subsequent 10 year CIP period. Staff of both school systems
are currently in the process of reviewing their proposed CIPs with their governing boards.
Budget staff plan to present the Board of Education requested CIPs to the BOCC at the May 22
budget work session (immediately following the Manager's presentation of his FY 2003-04
recommended County operating budget).
Budget staff will provide a PowerPoint presentation on significant aspects of the proposed
2003-2013 CIP at the April 21 work session. Budget staff and department heads with identified
capital needs in the CIP will be available to respond to any Commissioner comments or
questions. The Board is not expected to make any decisions on project allocations at this
meeting. Changes to the CIP can be made during several work sessions over the next few
months before the Board formally adopts the plan in late June 2003.
The Manager recommends that the Commissioners formally establish May 6, 2003 as the date
for a public hearing date to receive citizen comments on the County portion of the 2003-2013
CIP.
FINANCIAL IMPACT: There is no direct financial impact from the presentation of the CIP.
However, the Board will make substantial allocation decisions, for both County and school
capital projects, involving millions of dollars later this spring. Board funding decisions for FY
2003-04 will be enacted through capital project ordinances that will be adopted in June 2003.
RECOMMENDATION(S): The Manager recommends that the Board receive the presentation
for information, identify additional information about specific projects that the Board may need
during upcoming budget work sessions, and set a public hearing on the CIP for 7:30pm on
Tuesday, May 6, 2003 at the Southern Human Services Center in Chapel Hill.