Orange County NC Website
ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: April 10, 2007 <br />Action Agenda <br />Item No. (O - {:J <br />SUBJECT: County Capital Funding Policy Amendments <br />DEPARTMENT: Budget PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): <br />INFORMATION CONTACT: <br />Donna Coffey, (919) 245-2151 <br />PURPOSE: To amend the County's Capital Funding Policy to include use of the anticipated NC <br />Education .Lottery proceeds, intent for funding for recurring capital and presentation of future <br />Capital Investment Plans. <br />BACKGROUND: Over the last few months, staff has provided to the Board a number of items <br />of interest that may potentially affect the development of the upcoming 2007-17 County Capital <br />Investment (CIP) plan, the 2007-08 Annual Operating Budget, or future years' budgets. <br />Examples of recent updates include discussions related to the anticipated decrease in projected <br />revenues from the North Carolina Education Lottery along with the General Assembly's interest <br />in providing local property tax assistance to taxpayers throughout the State. Both of those items <br />would have negative impacts on the County's budget. <br />Lottery Proceeds <br />At the most recent work session on March 20, 2007, the County Manager led the Board through <br />the County's current capital funding formula and outlined how staff determines annual pay-as- <br />you-go revenues for the County and each school district. Absent from the current policy are the <br />County's anticipated receipt of future NC Education Lottery proceeds. <br />Staff has advised the Board, on a number of occasions this year, that it is imminent that the <br />County's share of lottery proceeds will fall short of the original budgeted amount of $2.4 million <br />because the State over estimated ticket sales. Based on the most recent projections from the <br />State, the County can expect to receive about $2 million this fiscal year -around $400,000 short <br />of budget. It is important to note that with receipts of only two quarters so far this year, the State <br />could possibly adjust its year-end projections again before June 30, 2007. <br />Given the County's experience with lottery proceeds this year, staff has recommended that. the <br />Board consider budgeting future proceeds "in arrears" -meaning funds would be budgeted in <br />the year after the State distributes them. For example, lottery proceeds distributed to the <br />County during the upcoming 2007-08 fiscal year would be budgeted the following fiscal year, <br />2008-09. <br />