Agenda - 02-07-2008- - Laserfiche WebLink

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anticipates will influence the upcoming budget. It is important to note that much more analysis needs to occur before staff presents the final proposed budget to the Board in mid- May 2008; however, it is worth pointing out that at this point in the planning process, requests for new funding in fiscal year 2008-09 are approximately $18.7 million. Considering that staff projects one cent on the tax rate to generate $1,297,795 for fiscal year 2008-09, the tax rate impact of the requests received thus far totals at least an additional 14.4 cents on the Ad Valorem property tax. As additional items are added to the budget driver list, this amount is likely to increase. As a point of reference, one of the major drivers includes continuation funding requests recently approved by both the Chapel Hill Carrboro and Orange County Schools Boards of Education. In summary, projected costs for both school districts' continuation budgets for next fiscal year total $9 million - $6.6 million for Chapel Hill Carrboro City Schools and $2.4 million for Orange County Schools. The estimated tax rate equivalent to fund the Schools' continuation requests only totals 6.9 cents on the County's 2008-09 fiscal year ad valorem tax rate. Tonight's review is intended to provide the Board with a "big picture" of what lies ahead for budget planning this spring. The Board may be aware of other budget drivers that are not on the list at this time and request that staff add them to the list. 2. 2008-18 County and Schools' Capital Investment Plan (CIP) -Unfunded Needs Tonight's Objective: For the Board to provide direction on how to pay for unfunded County and Schools' capital projects for the period 2008-18. The County's Capital Investment Plan (CIP) is a comprehensive multi-year plan for investing in future County and Schools' capital needs in a strategic, "big picture" manner. The CIP is considered a "living plan", meaning that each year, staff and the Board can reassess needs identified in the previous year's plan to determine if future needs remain the same as those outlined in previously approved plans. If needs and priorities change from year-to-year, the Board can make appropriate revisions to previously adopted/approved plans to accommodate new priorities and projects. The County's draft 2008-18 CIP, as presented to the Board on November 5, 2007, identifies County and Schools' projects whose funding needs will go beyond currently approved revenue sources over the ten-year period. During the January 29, 2008 work session, staff proposed the possibility of meeting unfunded capital needs with price tags of $5 million or more with the issuance of future debt (Attachment 4). In addition to reference materials provided in this agenda abstract, a copy of the proposed 2008-18 Capital Investment Plan can be viewed on the County's website: www.co.orange.nc.us/budget/2008-18CIP- ManagerRecommended.asp. As staff has shared with the Board on a number of occasions, opportunities for the County to issue debt beyond what is currently programmed between now and fiscal year 2009-10 is very limited. However, as shown on Attachment 3 of this agenda abstract, in 2009-10, based on the assumption that the County's annual General Fund budget will increase at a rate of 7 percent each year, staff anticipates that the County's borrowing capacity will open