Minutes 05-11-2010 - Laserfiche WebLink

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VOTE: UNANIMOUS 4. Review and Close completed and active County Capital Projects. Michael Talbert said as of June 30, 2009, the Comprehensive Annual Financial Report for Orange County had 84 active capital projects in the County Capital Project Fund. Over the past eight years, few if any capital projects were closed even though many have been completed for several years. The purpose of a Capital Project Ordinance is to fund the acquisition or construction of a capital asset. A Capital Asset is defined by Governmental Accounting, Auditing, and Financial Reporting (GAAFR) as: land, improvements to land, easements, work of art, and historical treasures, infrastructure and all other tangible or intangible assets that are used in the operations and that have initial useful lives extending beyond a single reporting period. As stated in North Carolina General Statute 159-13.2 (c) Project Ordinances, "A project ordinance shall clearly identify the project and authorize its undertaking, identify the revenues that will finance the project, and make the appropriations necessary to complete the project." Michael Talbert said that Orange County has established two types of projects in the County Capital Projects Fund. The first type of project has been established in whole or in part to construct or acquire a capital asset. The second type of project has been established to act as a reserve to fund other projects. Both types of projects have rarely been closed even after the scope of the original project is complete. He said that Attachment 2 lists twenty-six County Capital projects that are still active even though they have either been substantially completed or never had any activity. Closing these projects would provide $245,560 in capital resources that can be used for other capital priorities. Attachment 3 lists twelve active County Capital Projects with available balances, that have had limited activity over the past few years and could be closed as of June 30, 2010. This action would provide $737,868 in capital resources that can be used for other capital priorities. Attachment 3 also lists three active projects that are not yet complete and will remain active for their identified purposes. The available funds identified with these three projects of $825,000 were volunteered by the Department of Environment, Agriculture, Parks and Recreation (DEAPR) to assist balancing the County's annual budget without further reductions in programs. Michael Talbert said the closing of 38 projects and transferring $825,000 from existing projects to the Capital Projects Fund Balance will make $1,808,428 available for future County Capital Needs. He said the Manager's recommendation is for the Board to approve the closing of 38 projects and the transfer of $825,000 from existing projects to the Capital Projects Fund Balance as listed on Attachments 2 and 3. ATTACHMENT 2