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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: September 14, 2006 <br />Action Agenda <br />Item No. 1 <br />SUBJECT: <br />DEPARTMENT <br />ital and Debt Related Matters <br />Manager/Budget <br />PUBLIC HEARING: (YIN) No <br />ATTACHMENT(S): <br />Soccer Field Development Status <br />Capital and Debt Capacity Notebook <br />INFORMATION CONTACT: <br />Rod Visser, 919-245-2308 <br />Donna Dean Coffey, 919-245-2151 <br />PURPOSE: To review information prepared by staff regarding the debt and tax rate impacts of <br />various County and school capital projects, and to provide direction to staff regarding debt <br />issuance plans to address these capital projects. <br />BACKGROUND: At the August 31, 2006 work session, the Board reviewed background <br />materials prepared by staff and asked for additional information related to the County's debt <br />capacity and the affordability of a variety of County and school capital projects that are in <br />various stages of planning, development, and constnaction. Specifically, Commissioners <br />provided direction and requested additional information at that meeting (or in subsequent <br />communication) about the paints listed below: <br />o An assumption of 9% annual growth in the General Fund is too high. Focus debt <br />capacity calculations on a 7% annual growth assumption. Consider an 8% growth <br />assumption option as well. <br />o Some preference was expressed not to exceed the current BOCC policy limiting debt <br />service payments to 15% of General Fund expenditures. However, staff will solicit <br />information from additional jurisdictions about established debt capacity ceilings, any <br />examples of exceeding those, and circumstances involved (if applicable). <br />o Show individual annual tax rate increases that accompanied the annual expenditure <br />increases in the General Fund since 1989 that have produced average annual growth of <br />8.25%. <br />o Provide rough estimates of operational, maintenance, and staffing cost increases <br />associated with the specific projects listed at the August 31 work session for possible <br />additional debt issuance. Provide an estimate of the tax rate impacts of those anticipated <br />budgetary increases. <br />o Show a 10-year planning horizon for additional debt capacity, reflecting band/alternative <br />financing/pay-as-you-go projects, and plugging in cost estimates for other anticipated <br />unfunded projects. <br />o Provide an update on the overall status of soccer field development. <br />