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44 <br /> 1 Slide #8 <br /> Major Projects — Pay-Go Phase-in <br /> Staff can rework Pay-Go Phase-in to further delay tax increases. Though would <br /> need direction from 'Board in how to adjust overall plan. Four possible adjustment <br /> frameworks: <br /> t. Reduce Pay-Go in early years, reallocate funds for additional Pay-Go in <br /> backend to maintain $100 M over 10 years. <br /> Impact: Less funding available to Major Projects, increased funding for later High Priority <br /> Needs. <br /> 2. Reduce Pay-Go in early years, do not reallocate funds to future years. <br /> - Impact: Less funding available to Major Projects. <br /> 3. Delay district projects by a year, requiring later pay-go introduction. <br /> -- Impact: Increased Major Project costs due to inflation, less time to complete projects. <br /> 4. Reduce Pay-Go allocation across ten-year plan. No longer target $10 Mlyear. <br /> - Impact: Less funding available total. Worse debt metrics. <br /> ORANGE COUNTY <br /> 8 NCMI'f 1 C:AROLTNA <br /> 2 <br /> 3 Chair Bedford said she thought that they would be approving projects separately and <br /> 4 considering how each one is going. <br /> 5 Kirk Vaughn said a school CIP is similar to the county's CIP, where it is a plan, but only <br /> 6 year one is approved at a time. <br /> 7 Commissioner Fowler said she thought the county needed to see the entire budget <br /> 8 before determining how to approach pay-go. She said she would like to keep as much of the <br /> 9 pay-go as possible and if they were forced to choose, she would choose #1. She said it <br /> 10 depends on the total bill and what that would mean. <br /> 11 Commissioner Carter said she preferred to look at option 1, with option 3 possibly in <br /> 12 tandem. She said there are federal cuts coming to major programs that will impact them <br /> 13 operationally and those will not be known for some time. She said that Medicaid will be <br /> 14 significantly cut so she would like to be flexible on pay-go because that may be hard for them. <br /> 15 Chair Bedford said she was thinking of a form of option 1, where pay-go is reduced in <br /> 16 the first year and borrowed. <br /> 17 Kirk Vaughn said that is option 1. He said that bond funds would fill in where the pay-go <br /> 18 was reduced. He said it would cut bond funds from a later project. <br /> 19 Commissioner Greene said she hoped they could keep all of the pay-go. She said she <br /> 20 did not support options 3 and 4. She said option 1 is her first alternative. <br /> 21 Chair Bedford said she agreed with Commissioner Greene. <br /> 22 Commissioner McKee said he is more inclined to option 2, because of concerns about <br /> 23 costs of schools. He said that options 1 and 2 were his preference. <br /> 24 Chair Bedford said that they will discuss project management in the schools in the fall. <br /> 25 She said they will have to make decisions as a Board about how to move forward. She said they <br /> 26 have agreed that the construction manager at risk has more value than the others and they may <br /> 27 need to explain that to the schools. <br /> 28 Kirk Vaughn said the current structure has the school having the contract with the <br /> 29 construction manager. <br />