AG 2012 01 17 - Laserfiche WebLink

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RELATIONSHIP AMONG THE OPERATING BUDGET, CAPITAL BUDGET AND THE FIVE YEAR FINANCIAL PLAN The Cabarrus County capital budget is a financial plan for capital projects, outlining expenditures and resources for a particular fiscal year. The Capital Improvement Program (CIP) is a long range plait of proposed capital improvement projects including project costs and funding sources. The CIP is updated annually based on needs identified during the preparation of the capital budget. The Five Year Financial Plan is a forecast of revenues and expenditures spanning a five year period beginning with the proposed annual budget for the upcoming fiscal year. By using a five year planning window, the County ensures that commitments, obligations and anticipated needs are met in a fiscally sound manner. The five year plan encompasses both operating and capital budgets The annual operating budget must provide funding to adequately meet the anticipated needs, obligations and commitments of the County. In addition, the operating budget must provide financing, staffing, operational and maintenance cost funding for new facilities built or acquired as pail of the CIP. County policy acknowledges "pay as you god' financing as a significant financing source. However, each project is examined in depth to determine the most appropriate financing vehicle. Among considerations are; flexibility to meet project nods, timing, tax or rate payer equity, and lowest interest cost. The County aggressively seeks donations of funds, property, services and materials to supplement the resources provided by traditional financing methods. This policy reduces debt service costs, but still provides for the planned renewals, replacements and renovations required by a growing County. A review of FY 2007 planned capital projects and available revenue sources reveals that $17,135,714 spending from the General Fund will be required to implement these projects. The most significant item of spending is $6.5 million needed to fund a $9.3 million construction shortfall experienced by both school systems in the $98 millions bond package. Without the construction shortfall funding, General Fund spending is projected to vary froth $45 million to $9.9 million in each of the subsequent years covered by the CIP and the Five Year Plan. The largest increase in future operating budgets, the CIP, and the Five Year Plan will be in debt service to fund school construction and the new Sheriff's Office and Detention Center. Some of this will be offset by the retirement of existing debt. Additional facilities, such as the Board of Elections office and the proposed EMS station, will impact operational costs, particularly in the areas of maintenance and utilities costs. The addition /expansion of parks and recreational facilities will also impact these areas. 59 �• Attachment number 1 F -3 Page 132