ORD-2011-004 Capital Projects Budget Ordinance Amendments – Budget Amendment #6-A

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Commissioner Jacobs made. reference to the rose sheet and asked about the statement, "it is our intent to issue the remaining $2.7 million for parks and open space when financing is sought for Elementary School #11." Michael Talbert said that this was part of the motion when the County Commissioners approved the $2.8 million, which was sold in April 2009, knowing that they had authorized $20 million in 2001 bonds. Up until that point, in December 2008, the County had sold $14.5 million that was dedicated to parks and open space. When the County decided to issue $33 million in new debt there were some technicalities in the size of the bond issue to keep it qualified and get a preferred interest rate. Therefore, the County Commissioners decided to only issue slightly less than $30 million instead of $33 million. When this was done, there was a downsizing from $5.5 million to $2..8 million. The $2.7 million will be additional proceeds over and above the $1.86 million. Frank Clifton said that there are a lot of accounting and budgeting transactions that were going on simultaneously with two different departments. Now these two departments are combined — Finance and Budget — and this should never happen again. Commissioner Foushee arrived at 8:27 PM. Commissioner McKee said that he is concerned that the original bond funds were put before the voters and approved and in 2008 the unissued bond money lapsed. With that lapse it was no longer possible to issue'the remaining amount of the bonds for any of these programs. Rather than going back to the voters, the money was obtained through alternative financing. He does not think that there is anything wrong with doing that, but it is circumventing the original intent. He said that he knows that the reallocation of monies from one fund to another to make up for shortfalls'is a standard practice, but he thinks that the funds should be returned to the original designated -rise as quickly as possible to account for that return. Clarence Grier said that dhe of the things that staff recognized was that a lot of the communication in the past that should have been provided to the Board of County Commissioners was not provided. He assured the County Commissioners that he would always communicate with them. " VOTE: UNANIMOUS d. Closing of County Capital Projects The Board considered closing seven completed County Capital Projects and closing prior years' activities in six active County Capital Projects. The details for closing these projects are shown in the schedules on page 3 of the agenda materials. Michael Talbert summarized this item. BACKGROUND: The Comprehensive Annual Financial Report for June 30, 2010 has 86 capital projects with activity in the County Capital Projects Fund. Over the past eight years, few if any capital projects were closed even though many have been completed for several years. On October 26, 2010, the Board was presented the second draft of a revised Five Year Capital Investment Plan. The format was discussed and changes were requested to improve that format and provide the Board with information that is necessary to make Capital Funding decisions. One component of the Capital Investment Plan is to review active Capital Projects and close projects as completed. As of June 30, 2010, there are seven completed County Capital Projects that can be closed. Attached is a detail schedule of the completed projects with the total project budgets of $9,688,609 to be closed, if approved by the Board. Revenues exceed expenditures by $6,300 and these funds will be closed to County Capital Projects Fund Balance.