Agenda - 09-05-2013 - 5a - Laserfiche WebLink

Browse Search

14 1 Commissioner Price suggested that a letter be sent to the governor and other counties 2 be made aware of this effort in hopes that they join. 3 Chair Jacobs suggested the board consider a petition at agenda review. 4 CHCCS Board Member Gregory McElveen suggested that efforts to impact legislation 5 should leverage the link to the business community. He said changes have an impact on the 6 appeal of the state to those considering bringing jobs to here. 7 8 Culbreth Science Winq Debt Financinq Scenarios 9 Chair Jacobs recognized the members of the public wearing yellow t-shirts in support of 10 this science wing. 11 Paul Laughton, with Orange County Finance Administrative Services, reviewed 12 attachments D1 and D2 included in the packets. He said, at the last CIP work session, the 13 Board of County Commissioners requested that staff bring back two scenarios in reference to 14 the science wing addition. CHCCS has included this in the unfunded new school facilities 15 section of their budget. He said that the CHCCS CIP calculates pay as you go funds, lottery 16 funds, and article 46 sales tax funds. He said anything above that will be items that need 17 financing and will be listed as unfunded. 18 Paul Laughton referenced attachment D1 and the 15% annual debt service policy. He 19 said this policy states that the county strives to maintain annual debt services cost at a level no 20 more than 15% of general fund revenues. He reviewed how this amount is formulated and 21 reviewed the numbers from the Total Annual Debt Service, which includes current debt service 22 and stretches through a five year plan. He stressed that this is a planning tool and said that it 23 is re-evaluated each year. He noted the projected growth of 1.5% each year until it goes to 2% 24 in year 5. 25 Paul Laughton said the projects listed on this sheet are those projects currently in the 26 CIP. He said this sheet adds the Science Wing. He noted that the current recommended CIP 27 reflects a $1.2 million dollar debt capacity overage in year 2017-18; however, with the Science 28 Wing inclusion and all else remaining the same, this overage number grows to $1.74 million 29 over debt capacity (15.89%). 30 Paul Laughton referred to the salmon colored sheet- attachment 2D- which lists option 31 2. He said this option puts the science wing in the years the schools have requested. He said 32 this also adds the science wing with 6 classrooms. With these classrooms added, CHCCS 33 says the need for middle school #5 could be delayed for 2 years, until 2016-17. This option 34 creates a debt capacity of 14.23%, which leaves $1.5 million in available debt capacity. He said 35 these scenarios take the district through year 5; however the overage in year 6, for option 1, is 36 $5.1 million and for option 2 the overage is $2 million. 37 Paul Laughton said the district needs to look at how much debt can be taken on and 38 how it looks outside of year 5. Paul Laughton said this debt is consistent with what has been 39 requested with debt proceeds. He said that, realistically, Culbreth would do one time financing 40 the first year, to total $4.9 million; and then middle school #5 would follow that project. He said 41 the middle school is a $39.8 million project. He said all of this depends when the financing is 42 done and the timing will change the debt capacity and the amounts of overage on the 15% debt 43 capacity. 44 Frank Clifton said the state created a new board a year ago that reviews debt separately 45 from the LGC, who authorizes debt. He said projections for the general fund are conservative 46 but not unrealistic. He said some of the lack of growth in the county's general fund budget is a 47 result of state activity and is beyond the control of the county. He said the county could decide 48 to move forward on the science wing, only to be required to defer something else in a couple of 49 years. He said this just needs to be kept in mind when making decisions.