Agenda 03-15-22; 8-a - Minutes - Laserfiche WebLink

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36 1 Commissioner Bedford asked if this shows how much they could tax if they needed. 2 Gary Donaldson said it's one measure but looking at what impact on operating budget 3 would be is going to be the deciding factor. He said that regarding her question on the CIP, to 4 understand what is being funded in years 6-10, they need to know on the county side when they 5 would plan for issuances. 6 Commissioner Bedford asked how changing debt from year 3 to year 4 never changes 7 the results. 8 Bonnie Hammersley said it is because it is already in the model as existing debt. 9 Commissioner Bedford said that she understands now. 10 Commissioner Richards said she appreciates the model. She said she is not clear on 11 where ARPA funding is considered. 12 Gary Donaldson said all that money is in a separate fund outside of the general fund, per 13 guidance from the UNC School of Government. 14 Commissioner Richards asked how to forecast for that money when it runs out. 15 Bonnie Hammersley said the reason it is not in the model is because it is not in the 16 general fund, which is the best way to handle this money according to the experts. She said that 17 because it is one time money, it cannot be historically looked at or tracked for in the future. She 18 said that she will make recommendations for the money and commissioners will either agree or 19 make a budget amendment. She said the hope is that by 2024, the demand for the services 20 funded by ARPA will have decreased and will not be needed at the same level. She said that 21 she will bring forward recommendations on where the demands are from departments. 22 Commissioner Richards asked if demand is already outspending the budget. 23 Bonnie Hammersley said her budget meetings will be in March. She said that spending 24 and demand are currently doing fine and on schedule. 25 Commissioner Richards said there is a housing need, so why would the money not be 26 invested in a way that could impact housing long term. 27 Bonnie Hammersley said there is a 3-year plan for the money and most of the money 28 that's factored in, is going to housing. 29 Travis Myren said one of the things the model can do is plan to use property tax revenue 30 to continue ARPA-funded projects into the future if they are still wanted and needed when the 31 money runs out. 32 Commissioner Hamilton said the total debt is a percentage of assessed value and would 33 be interested in knowing what percentage would be if also at 3% approved target. 34 Bonnie Hammersley said it is unusual for a county to get close to its percentage of 35 assessed value. She said that the assessed value is $22 Billion, and the county is about 36 midway to 3%. 37 Gary Donaldson said that the model is dynamic and flexible and that looking at 3% will 38 provide large numbers. He said the rating agencies look at debt service to budget. He said that 39 is the metric they look at more so rather than the total debt. 40 Bonnie Hammersley said there is an expectation from rating agencies that the county 41 would increase taxes to cover those costs. 42 Commissioner Greene said during budget season she wants to talk about how to 43 transition ARPA money and budget for those programs other ways. 44 Commissioner Bedford said it has been both CARES and ARPA money that has been 45 used for housing and other programs. 46 Bonnie Hammersley said all the CARES money has been spent. 47 Gary Donaldson noted that it all had to be spent by 12/31/21. 48 8. Consent Agenda 49 50 • Removal of Any Items from Consent Agenda 51 • Approval of Remaining Consent Agenda