FY2025-FY2030 Adopted Capital Improvement Program

FY2025 Adopted Budget Capital Improvement Program

Overview

The Debt Affordability model assumes the County’s annual population growth rate of 2.70%, an assessed valuation growth rate between 5.7% and 8.9%, annual revenue growth in General Fund revenues between 3.7% and 7.8%, and an interest rate of 5.00% on new debt. CIP policies require the County to attempt to budget as pay-go for capital improvements an amount equal to 7% of General Fund operating revenues. General Fund, impact fee, and recordation pay-go are considered in total in meeting this goal. The FY 2025-2030 CIP does not have pay-go funding allocated to meet this goal for the 6-year period or any of the years individually. With the adoption of the FY 2025 General Fund operating budget, $52.9 million is allocated to the Capital Budget which includes $21.3M for the dedicated reserve for future years for school construction. The $52.9 million represents 5.7% of General Fund operating revenue. Approximately $282.8 million is projected for the remaining five years of the CIP which includes the dedicated reserve for future years for school construction) Since 1993, Impact Fees have provided additional revenue to address public school construction needs. Impact fees to aid library construction were added in 2001. These fees are levied upon newly constructed housing units throughout the County and are applied directly toward the funding of school and library projects and the debt service on impact fee bonds. Impact fee revenue is projected based on the following: for a single family home the school impact fee will be $20,608 and the library impact fee will be $843. Approximately 11.5% of the current school impact fees collected are committed to the payment of Impact Fee Bond debt service but will decrease to approximately 4.8% by FY2030. Over the FY 2025-2030 period, school impact fees are projected to generate $119.1 million. During this same period library impact fees are estimated to generate $5.9 million. Over the six year program after taking into account previously unallocated funds from prior years, approximately $45.8 million in pay-go is allocated for new or expanded school capital projects and $7.6 million in pay-go is allocated for new or expanded library capital projects. **Note: Although presented here in a consolidated format, school impact fees are collected and allocated per school level and cannot be co-mingled.As of 2000, a percentage of the proceeds from Recordation taxes have been dedicated to Parks and Recreation capital projects. For the FY 2025-2030 CIP time frame the percentage rate is set to change from 12.5% to 10.71% as of October 1, 2020 but has no effect on projected revenue. It is estimated to generate $29.6 million in revenue. Of this, approximately $12.8 million will be used to pay debt service and $8.5 million will be held in reserve per our special revenue fund balance guideline. The FY 2025-2030 CIP allocates $20.9 million of direct funding and $15.8 of bonds to fund acquisition and development of recreational and open space land (after taking into account previously unallocated funds from prior years) In late FY 2007, an additional percentage of the proceeds from Recordation taxes were dedicated for pay-go and debt service to support school construction. For the FY 2025 2030 CIP time frame the percentage rate is set to change from 16.67% to 14.29% as of October 1, 2020 but has no effect on projected revenue. Over the six-year program, approximately $28.4 million from Recordation Tax proceeds will be used to pay debt service on recordation bonds issued for school construction. In addition after taking into account previously unallocated funds from prior years, $9.5 million in pay-go and $6.0 million in bonds are allocated to fund school construction.

School Impact Fee

0% 20% 40% 60% 80% 100%

106,974,941

9,058,881 3,019,628 Revnue

Available Reserve Debt Service

Parks Recordation

0% 20% 40% 60% 80% 100%

8,523,900 8,308,078

12,785,847

Revenue

Available Reserve Debt Service

School Recordation

0% 20% 40% 60% 80% 100%

9,480,224 1,597,190

28,440,673

Revenue

Available Reserve Debt Service

28