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13 <br /> Financing the Capital Investment Plan <br /> The Recommended Capital Investment Plan for FY2022-23 totals $40.6 million in expenditures. <br /> Of that amount, $32 million is recommended to be financed by County funded debt. Other <br /> significant sources of funds include additional pay-as-you-go (from Lottery Proceeds) and Article <br /> 46 sales tax proceeds. Both of these sources are dedicated to fund school capital needs and <br /> contribute approximately $3.7 million to the resources used to support the CIP. The Plan also <br /> includes approximately $2.6 million in pay-as-you-go or cash funding to support design and <br /> architectural services and smaller projects with short useful lives. <br /> Debt Capacity Target <br /> County policy establishes a debt service capacity target of fifteen percent (15%) of general fund <br /> revenues. Based on prior borrowing approved by the Board, this policy has and is expected to <br /> be exceeded in future years. As the Board considers the CIP, staff will provide updates and <br /> recommend necessary adjustments so that the Board is comfortable with the current and <br /> planned debt over the course of the FY2022-32 CIP. <br /> Horizon Projects <br /> In addition to the investment contained in the Recommended FY2022-32 CIP, the Board may be <br /> asked to address other needs through the capital budgeting process. The projects that are <br /> currently under discussion include: <br /> • Additional School Capital Needs <br /> The County is working in collaboration with the school districts on a Capital Needs Task Force <br /> to update and prioritize school capital improvements. Although the FY2022-32 CIP includes <br /> a $130 million general obligation bond, the capital needs will exceed that amount, so <br /> alternative funding strategies will need to be explored. <br /> • Crisis Diversion Facility <br /> The Behavioral Health Task Force is recommending the establishment of a crisis diversion <br /> facility to address the need for growing behavioral health interventions. The Task Force is <br /> currently working to develop partnerships, a capital cost estimate, and funding model. <br /> • Affordable Housing <br /> During the time horizon of the CIP, the Greene Tract will likely become available to site an <br /> affordable housing project. Although a land contribution is contemplated, additional subsidy <br /> may be required depending on the type of development that is desired. The Chapel Hill- <br /> Carrboro Chamber of Commerce has also proposed strategies through the Big Bold Ideas <br /> initiative to develop more affordable housing in the community. Many of those strategies <br /> rely on some amount of public sector support. <br /> • Community Center Space Needs <br /> The County is currently investigating the feasibility of expanding the Community Center in <br /> the Rogers Eubanks neighborhood. An architect has been retained to identify space needs <br /> and create a cost estimate to address those needs. The Efland Community Center has also <br /> Page 1 11 <br />