Agenda - 03-20-2007- - Laserfiche WebLink

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M+e c h me 4 1 ITI-TRAM UPDATED 062305 *RANGE COUNTY BOARD OF COMMISSIONERS PROPOSED CAPITAL FUNDING POLICY Preamble This capital funding policy is the product of extensive analysis and deliberation. It is intended to reflect greater priority than there has been historically on providing funding for County projects, with particular emphasis directed at enhanced upkeep of existing County facilities. The policy reflects the implementation of the Board of Commissioners' resolution of November 16, 2004 that the Board "does hereby adopt in principle a policy of allocating a target of 60 percent of capital expenditures for school projects and 40 percent of capital expenditures for county projects over the decade beginning in calendar year 2005': This policy continues the County's principle and historical practice of ensuring that all School and County related debt service obligations are funded before any other School or County capital funds are allocated for other purposes. Planning Period During each fiscal year, the Board of Commissioners shall adopt a ten year Capital Investment Plan (CIP). The ten -year plan for long -range capital funding shall include anticipated County capital expenditures costing $25,000 or more (excluding equipment) and anticipated school capital expenditures costing $50,000 or more (excluding equipment). Equipment costing $5,000 or more can be considered as part of the Capital Investment Plan, but may also be considered for funding through recurring capital appropriations. The first year of the adopted ten -year Capital Investment Plan shall be incorporated into the next annual operating budget recommended by the County Manager. County and School recurring capital needs will be identified and reviewed during each annual operating budget cycle, and recurring capital appropriations will be approved by the Board of Commissioners as an element of each annual Orange County Budget Ordinance. Sources of Funds The County will allocate the following sources of funds for County and School debt service and long -range and recurring capital: • All proceeds from the Article 40 and Article 42 half -cent sales taxes. (The North Carolina General Statutes require that 30 percent of the Article 40 (NCGS§ 105 - 487(x)) and 60 percent of the Article 42 (NCGS§ 105- 502(a)) sales tax revenue be earmarked for public school capital outlay as defined in NCGS §105 - 426(1) or to retire any indebtedness incurred by the county for these purposes) • School Construction Impact Fees for each school system. • Public School Building Capital Fund annual allocations from the State of North Carolina. • The equivalent of the revenue estimated to be produced each fiscal year from 4 cents on the countywide ad valorem tax rate. (This 4 cent rate may, but need not, be adjusted with each quadrennial revaluation to a "revenue neutral' earmarking)