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2 <br />CURRENT SITUTATION: The economic conditions in North Carolina continue to improve but <br />revenue-,growth remains lackluster. Orange County Property Tax values are growing at an <br />annual rate of 1 % - 1.5% and Sales Tax revenues have recovered from the lows experienced <br />in 2008 ;and are again growing at an annual rate of 3.5%. The_ State Budget has been approved <br />by both" the House and Senate and is awaiting the Governors signature. <br />The CIP has been prepared anticipating slow economic growth and recognizing the impact of <br />the great recession on local, state and federal budgets. Projects in the CIP include: County <br />Facilities, Water & Sewer Utilities, Parks & Open Space, Solid Waste and Schools. Several <br />recommended projects have been moved further out in the five. year plan, in both recognition of <br />the County's relative high debt service, and the impact of a slowly recovering economy. The <br />Board will have to consider all of the available financing options for capital projects, including a <br />possible General Obligation Bond referendum for Public Improvements. <br />The 20011/16 CIP- provides a realistic look into the next five years. The anticipated minimal <br />.growth in County revenues is matched to fund capital projects. As of June 30, 2011, the <br />County's General Fund debt service as a percent of the General Fund Budget is at 15.31 %, still <br />above the Boards Debt Management Policy goal of 15%. The CIP as presented will reduce the <br />General Fund's Debt Service, as a percent of the General Fund, to below 14% by June 30, <br />2012. <br />Attachment 1 list projects recommended to be funded in the fiscal 2011-12 Annual Operating <br />Budget. All projects were included in the Managers Recommended CIP which the Board <br />reviewed on April 7, 2011. During to process of completing and balancing the Annual Operating <br />Budget, revenue sources originally dedicated to the CIP were redirected to the Annual <br />Operating Budget. Therefore, the CIP includes debt financing of $1,368,000 for Fiscal 2011-12. <br />The four projects, that will utilize debt financing for funding are below: <br />1. Information Technology $500 000 <br />2. Southwest Branch Library 436,000 <br />3. Southern Human Services Center ~ 280,000 <br />4. 112 N. Churton -Building Improvements 152,000 <br />Total <br />$1,368,000 <br />Attached are replacement pages 1 and 53 that update the Schools Capital Projects Summary <br />information. The State Budget, approved by both the House and Senate, includes $100 million <br />dollars of Lottery Proceeds. These funds will be distributed on the basis of Average Daily <br />Membership (ADM). Also, pay-as-you-go capital. funding has been updated to reflect the <br />amounts recommended in the 2011-12 Annual Budget <br />