Agenda Attachment D - FY2019-2024 Manager Recommended Capital Investment Plan

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renovation, safety improvements, repair, replacement and upgrades. This project provides for a scheduled and prioritized funding source for these needs identified in the 2030 Parks & Recreation Master Plan process. Vehicle Replacements - $965,550 The Capital Investment Plan is also used to procure replacement vehicles. The highest priority vehicles include those used in public safety functions. The FY19-20 CIP requests $965,550 to replace Sheriff’s Office vehicles, an Animal Control vehicle, Ambulance remounts, and an administrative vehicle for Emergency Services. Financing the Capital Investment Plan The Recommended Capital Investment Plan for FY2019-20 totals $47.4 million in expenditures. Of that amount, $37 million is recommended to be financed by County funded debt. Other significant sources of funds include Lottery Proceeds and Article 46 sales tax proceeds. Both of these sources are dedicated to fund school capital needs and are estimated to contribute approximately $3.3 million to the resources used to support the CIP. Debt Capacity Target and Next Steps County policy establishes a debt service capacity target of fifteen percent (15%) of general fund revenues. As the voter approved general obligation bonds have been issued for school projects and affordable housing, this policy is expected to be exceeded in future years. Additional pressure on this policy will occur in future years due to emergency spending on remediation projects and the increased cost of the Northern County Campus. As the Board considers the CIP, staff will provide updates and recommend necessary adjustments so that the Board is comfortable with the current and planned debt over the course of the FY2019-24 CIP. As the CIP evolves in the future, it anticipates funding for three large projects. The first is a replacement for the emergency responder radio system. The total cost of this project could exceed $40 million. This project is currently in the Plan for FY2020-21 and is offset by contributions from all of the public safety agencies in the County. The second major project is a new academic building requested by Durham Technical Community College. Current cost estimates suggest a total project cost of over $26 million. The final significant project consideration is whether the County proposes additional general obligation school bonds. The CIP includes the final allocation of the 2016 bonds in FY2021-22. The Plan does not currently include additional school bond funding. Thanks and Appreciation I would like to thank Deputy County Manager, Travis Myren, for leading the development of the CIP and for working with each of the department directors to create a capital plan that addresses the Board’s priorities. I would also like to thank the County’s Finance and Administrative Services team most notably Chief Financial Officer, Gary Donaldson, Deputy Finance Director, Paul Laughton, and Budget Analyst, Chaz Offenburg. Their sharp financial acumen, attention to detail, and impressive work ethic shaped and produced the document we are introducing today for the Board’s consideration. 16