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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: August 30, 2007 <br />Action Agenda <br />Item No. 6 <br />SUBJECT: County Capital Funding Policy and 2008-18 Capital Plan Revenues <br />DEPARTMENT: County Manager, Budget, PUBLIC HEARING: (Y/N) No <br />ATTACHMENTS: INFORMATION CONTACTS: <br />County Capital Funding Policy (adopted Laura Blackmon, (919) 245-2300 <br />April 24, 2007) Donna Coffey, (919) 245-2151 <br />PURPOSE: To discuss the County Capital Funding Policy and how various elements of the <br />policy affect future capital plan revenues. <br />BACKGROUND: <br />On April 24, 2007, the Board approved the County's current Capital Funding Policy (see <br />attachment 1 of this agenda abstract). Examples of areas outlined or addressed by the policy <br />include: <br />~: NC Education Lottery Proceeds -Per the April 24, 2007 adopted County Capital <br />Funding Policy beginning in FY 2007-08, the County planned to budget Lottery proceeds <br />"in arrears" -meaning that funds would be budgeted in the year after the State distributes <br />them. For example, lottery proceeds distributed to the County during 2007-08 FY would <br />be budgeted in FY 2008-09. In addition, beginning in fiscal year 2008-09, each school <br />district will have the option to dedicate its share of Lottery monies as either additional <br />pay-as-you-go funding to address facility renovation needs or to repay debt service for <br />debt issued after fiscal year 2006-07 to address school facility renovation needs. <br />However, during the 2007-08 budget planning process, Commissioners agreed to <br />deviate somewhat from that policy and allow School Boards to allocate 50% of <br />anticipated 2007-08 Lottery proceeds for projects for completion within the .fiscal year. <br />Staff is not aware of a final decision regarding how each district plans to use their share <br />of future lottery funds -whether they plan to use them to offset future debt service or as <br />annual pay-as-you-go revenue for projects. <br />-~ Dedicated Ad Valorem Property Tax for Debt Service - In accordance with County <br />Capital Funding Policy adopted by BOCC on April 24, 2007, property tax revenues are <br />dedicated to repay debt service on 1988, 1992, 1997, and 2001. voter approved bonds as <br />well as alternative financing programmed on the debt issuance schedule approved by the <br />Board on May 5, 2004 and any subsequent updates to that schedule as the Board has <br />approved. <br />-~ Dedicated Ad Valorem Revenues for Recurring Capital - In the County's Capital <br />Funding Policy adopted April 24, 2007 Commissioners declared their intent to dedicate <br />