Agenda 06-09-20; Item 2 - Discussion and Decisions of FY2020-21 Capital Investment Plan

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1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 9, 2020 Action Agenda Item No. 2 SUBJECT: Discussion and Decisions of FY2020-25 Capital Investment Plan DEPARTMENT: County Manager and Finance and Administrative Services ATTACHMENT(S): INFORMATION CONTACT: A. FY2020-25 Capital Investment Plan Bonnie Hammersley, (919) 245-2300 Budget Amendment List Travis Myren, (919) 245-2308 (Any Updates to the list will be Gary Donaldson, (919) 245-2453 provided prior to the meeting) Paul Laughton, (919) 245-2152 PURPOSE: FY2020-25 Capital Investment Plan - Accept the Five Year Capital Investment Plan and Approve the Intent to Adopt Capital Funding for FY2020-21 . BACKGROUND: For over 20 years, the County has produced a Capital Investment Plan (CIP) that establishes a budget planning guide related to capital needs for the County as well as Schools. The current CIP consists of a 5-year plan that is evaluated annually to include year-to- year changes in priorities, needs, and available resources. Approval of the CIP commits the County to the first year funding only of the capital projects; all other years are used as a planning tool and serves as a financial plan. Capital Investment Plan — Overview The FY 2020-25 CIP includes County Projects, School Projects, and Proprietary Projects. The School Projects include Chapel Hill-Carrboro City Schools, Orange County Schools, and Durham Technical Community College — Orange County Campus projects. The Proprietary Projects include Water and Sewer, Solid Waste Enterprise Fund, and Sportsplex projects. The CIP has been prepared anticipating moderate economic growth of approximately 2% in property tax growth over the next five years, and 4% sales tax growth in Years 2-5. Sales Tax proceeds for Year 1 (FY 2020-21) are estimated to decline by 4.5% due to the current coronavirus pandemic. Many of the projects in the CIP will rely on debt financing to fund the projects. The items below include revisions made to the following Capital Projects since the presentation of the Manager's Recommended Capital Investment Plan on April 2, 2019: • At the May 14, 2020 Budget Work Session, staff included a revised Schools Capital Projects Summary reflecting adjustments made in regards to changes to the FY 2020-21 budgeted ADM percentages, based on changes made from the time of the original CIP presentation and the FY 2020-21 Manager's Recommended Operating Budget presentation. The impact of these numbers changed the CHCCS % from 60.14% to 59.99%, and changed the OCS % from 39.86% to 40.01%.