Agenda - 12-12-2006-8b - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: December 12, 2006 Action Age a~ Item No. SUBJECT: Public Hearing on Proposed County and School Capital Projects and Related Debt Issuance Plans DEPARTMENT: Commissioners PUBLIC HEARING: (Y/N) Yes ATTACHMENT(S): 10/11!06 Budget Director Memo INFORMATION CONTACT: Commissioners Moses Carey or Alice Gordon, 919-245-2125 PURPOSE: To conduct a public hearing on matters related to proposed County and school capital projects and related debt issuance plans. BACKGROUND: At the August 31, 2006 work session, the Board reviewed background materials prepared by staff and asked for additional information related to the County's debt capacity and the affordability of a variety of County and school capital projects that are in various stages of planning, development, and construction. At the September 14, 2006 work session, staff presented additional information intended to help the Board regarding various decision points related to debt issuance for these projects, and asked the Board to endorse projects to be included on the County's debt issuance schedule. The conclusion of the staff analysis is that the projects reviewed from the August 31 work session, totaling roughly $67 million, as well as a County Campus and Library project with an estimated cost of $25 million, reviewed at the September 14 work session, can be funded within the County's debt capacity for this and the subsequent three fiscal years. The Board's established debt management policy provides that no more than 15 percent of annual General Fund expenditures shall be allocated for debt service. Using a 7 percent annual General Fund growth assumption, and structuring debt service payments in a manner reviewed with North Carolina focal Government Commission staff, debt to fund all the projects noted could be issued between 2006-07 and 2009-10 while the County remains below its own self-imposed debt ceiling. At the September 14, 2006 work session, the Board considered which projects to endorse for the debt issuance schedule for the next few fiscal years. The endorsed projects worth $92 million in new debt are listed in the October 11, 2006 memorandum (Attachment 1), which shows that they are scheduled for this and the next three fiscal years, through fiscal year 2009- 10. It is the Board's intent to proceed with plans to issue debt for those projects. Then on November 2, 2006, the Board endorsed plans for.an expanded County campus, library building, and parking facilities at a cost of about $23.5 million. This project was one of the projects listed in the October 11 memorandum.