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Attachment 2 4 <br /> April 5, 2011 <br /> Orange County Board of Commissioners <br /> Capital Funding Policy <br /> Preamble <br /> This capital funding policy is the product of extensive analysis and deliberation. The intent <br /> of this policy is to reflect greater priority than there has been historically on providing <br /> funding for County projects, with particular emphasis directed at enhanced upkeep of <br /> existing County facilities. The policy reflects the implementation of the Board of <br /> Commissioners' resolution of November 16, 2004 that the Board "does hereby adopt in <br /> principle a policy of allocating a target of 60 percent of capital expenditures for school <br /> projects and 40 percent of capital expenditures for county projects over the decade <br /> beginning in calendar year 2005". This policy continues the County's principle and <br /> historical practice of funding all School and County related debt service obligations before <br /> allocating any other School or County capital funds for other purposes. <br /> Long Range Capital Investment Plan <br /> During January of each fiscal year, the County Manager shall present, to the Board, five- <br /> year County and School capital needs and funding plans in the form of a Capital <br /> Investment Plan. Each year, the Board of Commissioners shall conduct a public hearing <br /> on the Manager's Recommended CIP during March and subsequently adopt a five-year <br /> Capital Investment Plan (CIP) as part of the annual operating budget in June. <br /> County and School recurring capital needs will be identified and reviewed during <br /> each annual operating budget cycle, and recurring capital appropriations will be <br /> approved by the Board of Commissioners as an element of each annual Orange <br /> County Budget Ordinance. <br /> The five-year plan for long-range capital funding shall include anticipated County and <br /> School capital expenditures costing $100,000 or more. <br /> Sources of Funds <br /> The County will allocate the following sources of funds for County and School debt service <br /> and long-range and recurring capital: <br /> • All proceeds from the Article 40 and Article 42 half-cent sales taxes. <br /> (The North Carolina General Statutes require that 30 percent of the Article 40 <br /> (NCGS§105-487(a)) and 60 percent of the Article 42 (NCGS§105-502(a)) sales tax <br /> revenue be earmarked for public school capital outlay as defined in NCGS§105-426(1) <br /> or to retire any indebtedness incurred by the county for these purposes) <br /> • School Construction Impact Fees for each school system. <br /> • Property tax revenue as needed and approved by the Board. <br /> • The County will budget NC Education Lottery proceeds as the revenues are distributed <br /> by the State each quarter, once the revenues are identified for an individual school <br /> capital project and requested by each district. <br />