Minutes 05-23-2013 - Laserfiche WebLink

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March debt capacity scenario, the debt service exceeded 15%, and the excess spending on debt service was more than $1.2 million. In year 5 for the May scenario, the debt service was 13.8% and there remained over$2.3 million of available debt service capacity, a swing of more than $3.6 million in the positive direction compared to the Manager's original recommended budget. It appears that the proposed changes in the CIP projects made by the BOCC to date have been moving the county debt service and debt capacity scenarios in the right direction. That certainly appears true for years 1-5, the years for which the BOCC review of CIP projects is focused. Manager's original recommended FY 2013-18 CIP (page 102) Chart shows the figures for years 1 through 5 as given on page 102, and adds year 6 Projected FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 annual debt service Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 as a percent of Gen. Fund Budget 14.33% 13.84% 13.52% 14.51% 15.65% 17.46% Available annual $1.217 M $2.149 M $2.792 M $0.929 M ($1.262 M) ($4.8 M) debt service capacity * Source: County staff, May 8, 2013 Attachment D1 - May 23 work session (revised page 102) Chart shows the figures for years 1 through 6 as given on revised page 102. Projected FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 annual debt service Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 as a percent of Gen. Fund Budget 13.77% 13.69% 13.50% 14.08% 13.80% 15.58% Available annual $2.278 M $2.471 M $2.864 M $1.785 M $2.373 M ($1.168 M) debt service capacity Clarence Grier said that in year six the County will be over debt capacity and will either have to change the policy or move things around. Commissioner Dorosin suggested raising the debt limit policy to 20%. Clarence Grier said this would be frowned upon by the Local Government Commission. Moving up higher than 15% affects the bond rating. Chair Jacobs said there are other options such as the fund balance or the money set aside for retiree insurance. The County could be slightly less aggressive and have more flexibility. Chair Jacobs asked about moving the Cedar Ridge gym from year two to year one.