Agenda - 05-07-2013 - 5a - Laserfiche WebLink

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10 1 - Based on current SAPFO projections, the district's elementary schools reach 2 104.9% Level of Service (LOS) in the 10thyear (FY 22-23) of the plan. Funding 3 is included in Years 9 and 10, to prepare for possible opening in FY 23-24. 4 - Cedar Ridge HS Auxiliary Gym $3,328,750 in FY 14-15 5 - Cedar Ridge HS Classroom Addition $12,282,960 in FY 15-16 6 7 Appendices 8 Debt Service and Debt Capacity: 9 - General Fund — remains under the 15% debt capacity until FY 2017-18, when it 10 would reach 15.65% 11 - Water and Sewer Projects (Article 46 Sales Tax proceeds) —current projected 12 revenue earmarked for debt service is adequate to cover debt service payments 13 over the 5-Year CIP 14 County Capital Project balances 15 Capital Funding, Debt Management, and Fund Balance Management Policies 16 17 Document Availability 18 Clerk to Board of Commissioners 19 County Financial Services Office 20 Orange County Website 21 - www.orangecountync.gov 22 23 Chair Jacobs asked for clarification of the 15% debt capacity and how it affects 24 borrowing. 25 Clarence Grier said Orange County has a policy that the debt capacity should not 26 exceed 15% of the general fund budget. He said every year there is a forecasting process that 27 is based on current debt service and what is known will be issued in future years. 28 Frank Clifton said it is not just a County policy, but is also a guideline followed by the 29 Local Government Committee (LGC), who approves all of the debt. He said one limiting factor 30 has been a lack of growth in revenue. He said that the revenue projections tend to be 31 conservative because there is very little control over any revenue other than property tax. 32 Commissioner Dorosin questioned whether it would be better to take on more during 33 this time when the borrowing rates are at record lows. 34 Frank Clifton said this is not a decision for Orange County but also the LGC. He said 35 that in the State of NC, no municipality can settle debt on its own and it must be reviewed and 36 approved by the LGC. He said the State also created a new board several years ago where all 37 policies and debt other than jails and schools must pass through. He clarified that this is all with 38 regard to general fund debt. He said that local sales tax projects do not affect that 15%. He 39 said that bonded debt increases the tax rate and the general fund budget. 40 Paul Laughton said that much of the newer debt for this fiscal year will be funded with 41 the Article 46 sales tax. He said that there is currently a 1.4 million dollar surplus in debt 42 proceeds versus money paid out. 43 He said that there are two work sessions scheduled; one on April 11, and another on 44 May 9, for discussion of the CIP. 45 Chair Jacobs said Northern Human Services Center is on the work session agenda on 46 May 14th and the Whitted facility is schedule for a town meeting on April 4th. He noted that the 47 middle school number 5 does not count the cost of land because land has been set aside at 48 Twin Creeks. He said that the last bond was in 2001 for 70 million dollars and this was 49 designated for: parks, Lands Legacy, Affordable Housing, Morris Grove Elementary, Carrboro 50 High, Gravelly Hill and Twin Creeks. 51 Frank Clifton referred to the last page listing active projects, and said many of these 52 have been in the works for years and the Board has made a concerted effort to bring these