Orange County NC Website
Browse       Search
2 <br />A Capital Asset is defined by Governmental Accounting, Auditing, and Financial Reporting <br />(GAAFR) as: land, improvements to land, easements, work of art, and historical treasures, <br />infrastructure and all other tangible or intangible assets that are used in the operations and that <br />have initial useful lives extending beyond a single reporting period. <br />As stated in General Statute 159 -13.2 (c) Project Ordinances, "A project ordinance shall clearly <br />identify the project and authorize its undertaking, identify the revenues that will finance the <br />project, and make the appropriations necessary to complete the project." <br />CURRENT SITUTATION: Orange County has established two types of projects in the County <br />Capital Projects Fund. The first type of project has been established in whole or in part to <br />construct or acquire a capital asset. The second type of project has been established to act as <br />a reserve to fund other projects. Both types of projects have rarely been closed even after the <br />scope of the original project is complete. <br />On May 18, 2010 the BOCC closed twenty -six County Capital projects that were substantially <br />completed or never had any activity. Closing these projects provide $245,560 in capital <br />resources that can be used for other capital priorities. <br />Attachment 1 lists twelve active County Capital Projects with available balances that have had <br />limited activity over the past few years and could be closed as of June 30, 2010. This action <br />would provide $760,527 in capital resources that can be used for other capital priorities. <br />Attachment 1 also lists three active projects that were set up as reserves. The available funds <br />identified with these three projects total $111,755. The intent is to close these projects and <br />move the funds to the newly established County Capital Reserve Fund for future County needs. <br />Attachment 1 also lists three active projects that are not yet complete and will remain active for <br />their identified purposes. The available funds identified with these three projects of $825,000 <br />were volunteered by the Department of Environment, Agriculture, Parks and Recreation <br />(DEAPR) to assist balancing the County's annual budget without further reductions in programs <br />FINANCIAL IMPACT: The closing of 15 projects and transferring $825,000 from existing <br />projects to the Capital Projects Fund Balance will make $1,697,282 available for future County <br />Capital Needs. When combined with the action taken by the BOCC on May 18 to close 26 <br />completed projects, a total of $1,942,842 will be available to meet County Capital needs. <br />RECOMMENDATION(S): The Manager recommends the Board approve the closing of 15 <br />projects with total available funds of $872,282, the transfer of $825,000 from existing projects to <br />the Capital Projects Fund Balance as listed on Attachment 1 and approve the amendments to <br />the four Capital Projects Ordinances, Attachments 3 -6. <br />