Agenda - 06-13-2017 - 2. Continue Discussion and Prioritization of FY 2017-22 Capital Investment Plan Projects

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The projects listed in the Manager's Recommended FY 2017-22 CIP totaled $274,423,538, with Debt Capacity Ratios (Debt Service to General Fund revenues) ranging from 12.8% in FY 2017- 18 to 17.4% in FY 2021-22. The County has a Debt Management Policy which states, "The County will strive to maintain its annual debt service costs at a level no greater than fifteen percent of general fund revenues, including installment purchase debt". This policy is consistent with the Government Finance Officers Association best practice. At its May 9, 2017 work session, the Board reviewed and discussed County staffs attempt to help remedy exceeding its policy and/or addressing the cash flow shortfall by delaying or removing County Capital projects until they can be funded within the parameters of the adopted policy. Also, consistent with Year 1 of the Manager's Recommended FY 2017-22 CIP, it includes substituting pay-as-you-go funds for school projects to debt financing in Years 2-5. The following are the adjustments made to County Capital projects, as reflected in FY 2017-22 CIP Alternative 1 presented at the May 9, 2017 work session (See Attachment 2): • Parking Lot Improvements - $1,625,000 moved from Year 5 to Year 6 related to OPT/ AMS North and Passmore Center improvements; and removed $300,000 for Efland- Cheeks Community Center as it is included in the construction of a new Efland-Cheeks Community Center in Year 3. • Southern Orange Campus Expansion - changed funding source to $3,269,500 in Medicaid Maximization funds for the Health clinics portion, and $1,555,500 in debt financing. • Information Technology Fiber Connectivity— moved $1,045,675 out of both Years 2 and 3 to Years 6-10. • Information Technology Governance Council Initiatives — removed $500,000 in Years 2 and 4. • EMS Substations — moved $700,000 from Year 3 to Year 5; moved $1,500,000 from Year 4 to Years 6-10, and moved $600,000 from Year 5 to years 6-10. • Orange County Radio/Paging System Upgrades — removed $1,400,000 as there are current funds within this project to cover this expense. • Register of Deeds Automation — removed $400,000 for the software system purchase as there as current funds within the Automation and Enhancement Preservation Fund to cover this expense. • Millhouse Road Park — moved $300,000 from Year 2 to Year 4, and moved $6,400,000 from Year 3 to Year 5. • Northeast District Park — moved $350,000 from Year 3 to Year 5, and moved 7,650,000 from Year 4 to Years 6-10. Tonight's discussion will be focused on additional changes to the CIP as a result of direction the Board gave to staff during their discussion and prioritization of the CIP at its May 9, 2017 work session. The following are the additional adjustments made to County Capital Projects, as reflected in FY 2017-22 Alternative 2 (See Attachment 3): • Orange County Radio/Paging System Upgrades — moved a total of $12,300,000 from Years 2 through 5, to Years 6-10.