Agenda - 01-30-2007-1 - Laserfiche WebLink

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3 To: Orange County Board of Commissioners Laura Blackmon, County Manager From: Donna Coffey, Budget Director Date: January 26, 2007 Subject: County Capital Funding Policy - Lottery Proceeds The intent of this memo is to outline the factors that staff and the county attorney . have considered with regard to the disposition of Lottery proceeds. Background Orange County's ten-year Capital Investment Plan (CIP) serves as a planning tool and provides a mechanism to forecast long-range future School and County capital needs. Annually, staff and the Board of County Commissioners (the "Board") consider many factors as they update the CIP, including funding availability, newly identified Board priorities, and student membership projections. It is important to note that while the Board formally adopts a long-range plan each year, the CIP is a "living document" that can be amended when necessary. Each year, staff and the Board re-assess previously identified capital needs and priorities to determine if future needs remain the same as those outlined in previously approved capital plans. If the needs and priorities of the County have changed, then the Board may revise the previously adopted CIP. The County's current capital funding policy, adopted by the Board in May 2005, identifies the following CIP funding sources: • Article 40 and Article 42 half cent sales taxes • Dedicated ad valorem property taxes o Equivalent to the amount to repay annual debt service for 1988, 1992, 1997 and 2001 voter approved bonds) o Equivalent of four cents on the annual ad valorem property tax to fund recurring capital expenditures for schools [three cents] and county [1 cent]) • School Construction Impacts Fees for each school system • Public School Building Capital funds (annual allocations funded by a portion of corporate income taxes collected by the State of NC) • Debt financing such as general obligation bonds and alternative financing