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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: February 5, 2008 <br />Action Agenda <br />Item No. ,5 - G <br />SUBJECT: 2008-2018 Capital Investment Plan (CIP) Public Hearing <br />DEPARTMENT: Budget Office PUBLIC HEARING: (Y/N) Yes <br />ATTACHMENT(S): INFORMATION CONTACT: <br />Donna Coffey, (919) 245-2151 <br />PURPOSE: To conduct a second public hearing to receive citizen comments regarding the <br />County. Manager's Recommended 2008-2018 Capital Investment Plan (CIP) for County and <br />school projects. <br />BACKGROUND: The Board of County Commissioners received the proposed 2008-18 County <br />and Schools Capital Investment Plan (CIP) (http://www.co.orange.nc.us/budget/2008-18CIP- <br />ManagerRecommended.asp) on November 5, 2007 and since then has had several <br />opportunities to exchange ideas with staff and the public about the proposal. <br />As presented to the Board, the plan includes funded as well as unfunded capital needs for the <br />County, Chapel Hill Carrboro City Schools and Orange County Schools. <br />Definition of Funded and Unfunded Capital Needs <br />It is important to clarify the differences between funded and unfunded capital needs. <br />. Funded capital needs include projects whose costs fall within current and future <br />revenues available to the County. <br />o For purposes of the 2008-18 CIP, funding sources include pay-as-you-go <br />funding and unspent 1997 and 2001 voter approved bonds funds. Pay-as- <br />you-go funding consists of the net proceeds of dedicated sales and property <br />tax CIP revenues after School and County debt service obligations have <br />been satisfied plus project related grants and fees. <br />4 Unfunded capital needs include projects whose costs fall beyond current and <br />projected revenues available to the County. In order to complete the projects that <br />are currently considered unfunded, the County would have to either acquire new <br />debt through voter approved bonds and alternative third party financing or have <br />access to a new local government authorized revenue. <br />It is important to note that while projects fall into the unfunded category, it does not <br />mean that the County does not plan to complete the project. It does mean that in order to <br />complete individual project plans, Commissioners and project partners, such as School <br />Boards, must engage in further discussion regarding infrastructure/facility needs, capital <br />funding and annual operating costs.