Agenda - 04-24-2007-4i - Laserfiche WebLink

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Adopted 04/24/2007 4 Orange County Board of Commissioners Proposed, Capital Funding Policy Preamble This capital funding policy is the product of extensive analysis and deliberation. The intent of this policy is 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 funding all School and County related debt service obligations before allocating any other School or County capital funds for other purposes. Long Range Capital Investment Plan During October of each fiscal year, the County Manager shall present, to the Board, ten- year County and School capital needs and funding plans in the form of a Capital Investment Plan. Each year, the Board of Commissioners shall conduct a public hearing on the Manager's Recommended CIP during November and subsequently adopt a ten- year Capital Investment Plan (CIP). The first year of the adopted ten-year Capital Investment Plan shall become the basis for the annual capital budget and 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. The ten-year plan for long-range capital funding shall include: • Anticipated County capital expenditures costing $25,000 or more (excluding equipment) • Anticipated school capital expenditures costing $50,000 or more (excluding equipment) • Equipment costing $5,000 or more 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(a)) and 60 percent of the Article 42 (NCGS§105-502(a)) sales tax