Minutes 03-12-2013 - Laserfiche WebLink

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• Note: School construction is guided by the Schools Adequate Public Facilities Ordinance (SAPFO) projections of capacity and need. • Chapel Hill-Carrboro City Schools - Middle School #5 in FY 17-18 $39,850,680 total - Carrboro HS Additions in FY 20-21 $19,743,948 - Elementary #12 in FY 21-22 $35,476,053 total School Projects (Years 2-5) — cont. • Orange County Schools - No new schools to open in 10 year period, as per SAPFO - Based on current SAPFO projections, the district's elementary schools reach 104.9% Level of Service (LOS) in the 10thyear (FY 22-23) of the plan. Funding is included in Years 9 and 10, to prepare for possible opening in FY 23-24. - Cedar Ridge HS Auxiliary Gym $3,328,750 in FY 14-15 - Cedar Ridge HS Classroom Addition $12,282,960 in FY 15-16 Appendices • Debt Service and Debt Capacity: - General Fund — remains under the 15% debt capacity until FY 2017-18, when it would reach 15.65% - Water and Sewer Projects (Article 46 Sales Tax proceeds) — current projected revenue earmarked for debt service is adequate to cover debt service payments over the 5-Year CIP • County Capital Project balances • Capital Funding, Debt Management, and Fund Balance Management Policies Document Availability • Clerk to Board of Commissioners • County Financial Services Office • Orange County Website - www.orangecountVnc.gov Chair Jacobs asked for clarification of the 15% debt capacity and how it affects borrowing. Clarence Grier said Orange County has a policy that the debt capacity should not exceed 15% of the general fund budget. He said every year there is a forecasting process that is based on current debt service and what is known will be issued in future years. Frank Clifton said it is not just a County policy, but is also a guideline followed by the Local Government Committee (LGC), who approves all of the debt. He said one limiting factor has been a lack of growth in revenue. He said that the revenue projections tend to be conservative because there is very little control over any revenue other than property tax. Commissioner Dorosin questioned whether it would be better to take on more during this time when the borrowing rates are at record lows. Frank Clifton said this is not a decision for Orange County but also the LGC. He said that in the State of NC, no municipality can settle debt on its own and it must be reviewed and approved by the LGC. He said the State also created a new board several years ago where all policies and debt other than jails and schools must pass through. He clarified that this is all with regard to general fund debt. He said that local sales tax projects do not affect that 15%. He said that bonded debt increases the tax rate and the general fund budget.