Minutes - 06-18-2001 - Laserfiche WebLink

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APPROVED 12/3/2001 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS BUDGET WORK SESSION JUNE 18, 2001 The Orange County Board of Commissioners met for a budget work session on Monday, June 18, 2001 at 6:00 p.m. at the Southern Human Services Center in Chapel Hill, North Carolina. COUNTY COMMISSIONERS PRESENT: Chair Stephen H. Halkiotis and Commissioners Margaret W. Brown, Moses Carey, Jr., Alice M. Gordan, and Barry Jacobs COUNTY STAFF PRESENT: County Manager John M. Link, Jr., Assistant County Manager Rod Visser and Clerk to the Board Beverly A. Blythe {All other staff members will be identified appropriately below) 1. CHAIR REVIEW OF SCHEDULE AND TOPICS Chair Halkiotis read the agenda. 2. FOLLOW-UP DISCUSSION OF CAPITAL FUNDING ISSUES John Link made reference to the memorandum from him to the Board and a chart, both of which were distributed this evening. He said that the attached table shows one possible scenario for compiling a $75 million bond package for November 2001 and accomplishing a variety of other County and school capital needs through alternative financing, pay-as-you-go, certificates of participation, installment purchase, impact fee revenues, fund balance, etc. This does take into account some assumptions, which are listed below: 1) For the next four years, we would assume an overall 6.5°!° interest rate. During these four years, we are anticipating the annual growth of the general fund expenditures to be around 8.75°~. Debt service will not exceed 15% of the annual general fund expenditures. 2) The impact fee revenue will be increased far both school systems, effective July 15t 3} Within the schools' CIPs, the increase in revenue will not be budgeted for any particular project. The Chapel Hill-Carrboro school district tax revenue can be used for both capital and current expense purposes. 4} There will be a bond referendum every four to five years, sa this proposal will carry us through the year 2004-2005. He made reference to the chart and summarized the information about the needs, which were presented to the Capital Needs Advisory Task force. The functions are listed as well as the amount requested. The chart then lists potential funding options. Commissioner Gordon asked for a chart showing the debt service and the percentage of general fund expenditures for each year, out to ten years. John Link made reference to page two and said that the Orange Enterprises expansion will be paid from pay-as-you-go and other capital funds. The remainder of the items on this page deals with parkland and open space. Regarding the Chapel Hill-Carrboro school system, it is recommended far elementary schools #9 and #10 a fixed amount in bonds of $13,250,000 for each school. There is also a recommended increase in impact fees. Under high school expansion, it is recommended that the funding be addressed through a dedicated increase in district tax. Regarding renovation of older schools and facilities, $4.6 million is recommended to come from bonds. The other $2.4 million will come from the district tax or local revenues within the school system. This is a total of $31,100,000 in bonds and $11.6 million in other district resources. Under the Orange County school system, it is recommended that $18,500,000 in bands be appropriated far pursuing a new middle school. For the central office expansion that addresses the administrative requirement, it is recommended that certificates of participation be used in this case. In expanding the elementary school capacity at Hillsborough Elementary far students, it is recommended