Agenda - 11-19-2013 - 6a - Laserfiche WebLink

Browse Search

4 1 2 Page 19- Future Debt Capacity— He said this shows the County's additional debt 3 capacity beyond the 2018 fiscal year, for years 2019-2023. This page looks at the available 4 debt capacity if the County were to fund the CIP. He said that there will be an additional $120 5 million debt capacity that could be issued while still maintaining compliance with policies and 6 debt affordability. 7 8 Page 20 —Future Debt Affordability—This shows that the cash flow is there. 9 10 Page 21 - Potential Impacts on Future Debt Capacity— He said credit is a large factor, 11 and maintaining good credit insures the lowest cost of capital. 12 13 Page 23 - Observations— He said the County has managed its finances well and has 14 excellent policies. He said the question is where the additional resources will come from to help 15 pay for new debt service. 16 17 Clarence Grier said staff goes through this exercise each time a credit package is 18 created and debt is issued. He noted projects in the current capital plan include the Culbreth 19 Middle School science wing addition, as well as a couple of other school projects. 20 21 Chair Jacobs introduced Michael Talbert as the Interim County Manager. 22 23 Robert High noted that the debt affordability chart does not include operational increases 24 in the plan. This is noted throughout the book and will be a drain on growth increases. 25 Commissioner Price asked what happens in years 2026-28 where the numbers appear 26 to fluctuate. She reference page 11 and noted that the total in column f goes up. 27 Ted Cole said this is tied to the existing debt. He said the annual payments are going 28 down from one year to the next. He said there is a year in 2027 where the debt structure 29 causes the number to go up. He said all of the debt matures at different years, and that is why 30 this number dips and wanes. 31 Chair Jacobs referred to page 13, and he noted that this includes 4 out of 5 years not 32 approved by the County Commissioners. 33 Clarence Grier said the County approves the structure every year, but as the current CIP 34 stands the County has $76 million over the next 5 years. 35 Chair Jacobs said the Board had talked about aligning the three CIPs so each would use 36 the same language and the same projections. He said this has been identified as a source of 37 confusion in the last budget year. 38 Chair Brownstein said this is especially true with the unfunded categories. She said 39 there needs to be a consensus as to where to put large ticket items that are not funded. She 40 said each entity has a different definition for these. 41 Commissioner Gordon asked how this is reflected on page 13. 42 Clarence Grier said the unfunded projects are not listed in this document. He said there 43 needs to be discussion in the future about what is unfunded and how these items will be funded. 44 He said he provided a sheet that gives the funding over the last 25 years and included 45 the long term capital. He said the average of this for both school districts over the last 5 years 46 has been roughly $5 million. He said that any project unfunded over that amount would be 47 considered unfunded. He said the Board and school boards need to find a happy medium. 48 Chair Coffey said that OCS considers any item that cannot be paid for with pay as you 49 go funds to be an unfunded item. She said pay as you go money is maintenance money, and 50 all big ticket items are unfunded.