Agenda - 03-06-2014 - 6a - Laserfiche WebLink

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11 1 though, if the Towns don't go along, the County could not come up with $7-8 million 2 without cutting something back. Those discussions have not yet occurred, however. 3 4 In response to a comment by Chair Jacobs, Paul Laughton confirmed that today's 5 agenda item is just for 2014-15 projects because that's what the Board concentrates on 6 approving funding for next year's CIP. The remainder of the CIP is for long range 7 forecasting and planning that you evaluate every year. He will bring to the Board's 8 attention any deviations from planned funding in the out years when they present the 9 CIP on March 11. 10 11 Rod Visser tested the assumption that this session is an opportunity for Commissioners 12 to give the Manager and staff a "heads up" now regarding any changes in the CIP they 13 would like to see, but that does not forestall their bringing up other changes that occur to 14 them six weeks from now in March. 15 16 Michael Talbert said he saw two issues on their list of possible budget goals that have 17 potentially large capital impacts: education and Rogers Road sewer. 18 19 Commissioner Price asked about the confidence level staff has in projections of lottery 20 proceeds. 21 22 Paul Laughton said that they provide to the schools the estimates that they receive from 23 the State. He noted that the State used to provide counties with $176 million in annual 24 lottery proceeds but that number is now down to $100 million. Orange County is only 25 getting about $1.3 million in lottery funds now. At peak, he believed the County received 26 about $2.3 million in lottery funds. 27 Commissioners and Manager indicated that they were satisfied that they had met the 28 objective set out for the CIP portion of the agenda. 29 30 D. Bond Referendum - Debt Capacity, Property Tax Impact, Bond 31 Rating (Clarence Grier— Presenter& Rod Visser) 32 33 Rod Visser explained that the objective for this segment is for the Board to review 34 possible Bond Referendum timelines, amount of a referendum, and the Board practice 35 of utilizing bond task forces, and provide direction to staff. 36 37 Clarence Grier reviewed possible options/funding/debt service for a possible $100 38 million bond referendum, to be held at the Board's discretion. Key figures are included 39 in the spreadsheet on page 13, Attachment 1-c, of the Board's retreat agenda packet. 40 41 Clarence Grier said they have been discussing a $100 million bond to be paid back in 20 42 years, as required by the Local Government Commission (LGC). Debt service on $100 43 million would be approximately $6.7 million, or 4.18 cents on the current tax rate. He 44 reviewed current outstanding County debt and bond ratings (Fitch —AAA; Standard & 45 Poors —AAA; Moody's —AA1 with a positive outlook). 46 47 The assumptions built into the spreadsheet include $100m in staggered issues every 48 two years of$40 million in 2015-16, then $30 million two years later, then the final $30 49 million two years after that. Bond approval date is assumed as November 2015 — if not 50 done in November 2014, there is no primary in May 2015 so must wait until November 51 general election for a bond referendum vote. He reviewed the spreadsheet for current 52 debt and potential new County jail debt service. He pointed out that in this scenario, 53 maximum outstanding debt would come in FY2020-21 with a tax rate effect of about 3.8 54 cents. To stay within County policy limiting debt service expenditures to15% of the 55 General Fund, expenditures in that fiscal year would have to increase to about $221.3