Agenda - 02-16-2006-4 - Laserfiche WebLink

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io While there may be unspent funds available in County capital projects that the Board could redirect towards helping offset some of the costs of the Efland Sewer project, I would also like to offer some observations to consider with regard to pay-as-you-go funding for County projects: • In March 2005, staff presented a County Facility Needs assessment that outlined needs totaling nearly $18 million for repairs and improvements for all County facilities. • With the adoption of the updated Capital Funding Policy last spring, the Board indicated its desire to focus attention to reinvesting capital resources towards repairing, preserving and maintaining County facilities that had been unfunded for several years. • For the current fiscal year, funding targeted for County projects was reduced by $1.2 million.. To that end, projects that the Manager recommended and Board ultimately approved for funding for during the September 13, 2005 work session were ones that were deemed the some of the County's highest priorities, • Several opportunities and situations have arisen since the Board's approval of capital funding allocations in September that will require additional funding, Qne example of such a project is the purchase of the "Tweeter Building". At the time that the Board approved the CIP, Commissioners had not approved the purchase of this property, Qne of the elements of the property negotiation and financing included the County paying the owner $50,000 to $100,000 "upfront" and the owner financing the remaining debt of $1,685,000.. While the final negotiations are ongoing, staff had planned to propose that we redirect some particn of the equipment and vehicle pay-as-you-go funds (total of $267,000) towards the "upfront" payment for "Tweeter", Qther examples of un/under funded projects that may need resources before the end of the current fiscal year include relocation of the Highway 57 solid waste convenience center, completion of the CNG fueling station, and laptops for inspection field personnel. It is important to note that there has not been sufficient time for me to work with every affected department head to determine the status of each project ar its most recent timetable, Option 2. Include In the Alternative Financing Plans Scheduled for Issuance in April 2006 At the Board's retreat in January, I reviewed the debt issuance plans and capacity between now and fiscal year 2007-08. In calculating the County's debt service capacity, I projected a $22,0 million alternative financing issuance this spring. The plan included, among other projects, issuing $2 million far Conservation Easements, Additional funding for the Efland water and sewer project was also identified as an emerging funding consideration; however due to the uncertainty of the exact amount of funding needed as well as the project's timeline, no dollar amount was identified for completion of that project, Since that time, as indicated in other materials shared with the Board, many of these uncertainties have become clearer. I have talked with department heads regarding actual cash flow needs of the projects planned for the upcoming alternative financing plans between now and fiscal year 2008, Based on those conversations, the project with the mast flexible schedule during this period is Conservation Easements. Therefore, an option for funding the project shortfall at this time includes redirecting $1..5 million from Conservation Easements to Efland water and sewer construction, With this option, the $2 million funding for Conservation Easements would be included in alternative financing issues in fiscal years 2005-06 ($500,000), 2006-07 ($600,000) and 2007- 08 ($900,000). David Stancil and I have worked together to outline a plan that meets the grant