Agenda - 06-21-2011 - 8a - Laserfiche WebLink

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2 CURRENT SITUTATION: The economic conditions in North Carolina continue to improve, but revenue growth remains lackluster. Orange County property tax values are growing at an annual rate of 1 % - 1.5% and sales tax revenues have recovered from the lows experienced in 2008, and are again growing at an annual rate of 3.5%. The State Budget has been approved, but the ultimate impact of the budget cuts has not yet been realized. The CIP has been prepared anticipating slow economic growth and recognizing the impact of the great recession on local, state and federal budgets. Projects in the CIP include: County Facilities, Water & Sewer Utilities, Parks & Open Space, Solid Waste and Schools. Several recommended- projects have been moved further out in the five year plan, in both recognition of the County's relative high debt service and the impact of a slowly recovering economy. The Board will have to consider all of the available financing options for capital projects, including a possible General Obligation Bond referendum for Public Improvements. The FY2011-16 CIP provides a realistic look into the next five years. The plan anticipates minimal growth in County revs-Hues to fund capital projects. As of June 30, 2011, the County's General Fund debt service as a percent of the General Fund Budget is at 15.31 %., still above the Board's Debt Management Policy goal of 15%. The CIP, as presented, will reduce the General Fund's debt service as a percent of the General Fund to below 14% by June 30, 2012. On June 14, 2011 the Board reviewed the Capital Investment Plan as presented on May 17, 2011. The Board deleted $152,000 for building improvements at 112 N. Churton St from the plan and added $75,000 for the Loan Pool Reserve Project back to the Plan. Attachment 1 is a list of the projects approved by the Board at the work session on June 14, 2011. The new total for the County Capital Projects Funds is $2,780,000 which includes debt financing of $1,216,000 for FY 2011-12. The following three projects are planned to be financed: 1. Information Technology $500,000 2. South-west Branch Library 436,000 3. Southern Human Services Center 280,000 Total $1,216,000 FINANCIAL IMPACT: The County Capital Project Fund appropriation of $2,780,000 is included in the FY2011-12 County Budget Ordinance, and debt financing for $1,216,000 for projects outlined in the Background above is included. RECOMMENDATION(S): The Manager recommends that the Board approve the FY2011-16 Orange County Capital Investment Plan. The Approved CIP will be included in the Approved FY2011-12 Annual Operating Budget.