Agenda - 03-15-2006-2 - Laserfiche WebLink

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School, Staff will explain at this work session a variety of approaches the Board may wish to consider to generate the necessary additional infrastructure funding, including: 1) reallocation of unobligated capital project allocations from 2005-06 and preceding years (pursuant to the table on page 1 of the Budget Director's memo that was previously distributed for the February 16 BOCC work session); 2) earmarking of 2006-07 pay-as-you-go County capital funds; 3) debt financing by inclusion in the next planned alternative financing in late 2006 (the County would "front" the money and reimburse itself from alternative financing proceeds, after they have been issued); or 4) some combination of the above approaches The Board's guidance on the preferred approach(es) would help staff in crafting the appropriate capital project ordinances to implement the necessary capital appropriations at a subsequent Board meeting. The BOCC need not take specific action at this March 15 work session to appropriate the funds. Phasing In of 60-40 Capital Funding Policy Impacts The 2005-06 approved budget did not include full funding for the so-called 60-40 capital funding policy governing capital revenue allocation between school and County capital projects. Full funding of the policy adopted in May 2005 will require earmarking of the proceeds from an additional cent on the ad valorem tax rate for school recurring capital and an additional cent on the tax rate for County long-range capital, totaling approximately $2.4 million, Given the magnitude of potential impacts from the budget driver list the Board has previously discussed, the BOCC may wish to direct the Manager and staff to develop and present operating and capital budgets that would phase in the additional funding over a two or three year period, County Facility Needs Improvements In March 2005, staff presented a report to the BOCC that identified nearly $18 million in pending needs for repairs and maintenance to all existing County facilities (e.g. roofing, HVAC, flooring, parking lots, etc). These accumulated needs were actively considered by the Board in establishing the aforementioned 60-40 funding policy last year. With the additional capital funding provided by the Board for 2005-06, staff have been able to complete or set in motion a wide range of facility improvement projects that have begun to make a dent in the repair and maintenance backlog. Furthermore, it is timely for staff to report on some of the specific measures that have already been implemented in consonance with the energy conservation initiatives undertaken with the valuable leadership of Commissioner Halkiotis in recent months, FINANCIAL IMPACT: As noted in the attached background documents and in the staff presentations at this work session, RECOMMENDATION(S): The Manager recommends that the Board receive and discuss the information about potential budget and CIP drivers, and provide appropriate direction to the Manager and staff regarding the Board's priorities for funding in the 2006-07 operating budget and 2006-16 CIP.