HomeMy WebLinkAbout012621pra revisedHARNETT COUNTYPresented by:Lisa McFadden, Budget DirectorRenee Paschal, Budget ConsultantRecommended 2022-2028Capital Improvements Program strong roots •new growth January 2021Harnett County Capital Improvement Plan FY 2022-2028
OVERVIEW•Review legal framework for CIP•Review of CIP Process for FY 2022-2028•Proposed CIP Process Going Forward•Funding Strategy•Reader’s Guide•Action Summary•Projects•Next Steps, including Board prioritizationHarnett County Capital Improvement Plan FY 2022-28
CIP PrioritizationIf enough time at the end of the presentation, the board will be asked to prioritize all projects, using the following scale:•Imperative (must do): correct danger to public health & safety, meet legal obligation, alleviate immediate service/facility deficiency, prevent irreparable damage (Rank #1)•Essential (should do): rehabilitate/replace obsolete facility, stimulate economic growth, reduce future operating costs, leverage grants (Rank #2)•Important (could do): provides new or expanded service, promotes intergovernmental cooperation, reduces energy use, enhances cultural or natural resources (Rank #3)•Don’t do (Rank #4)
LEGAL FRAMEWORK OF CAPITAL BUDGETING•Not legally required•If done, statutes charge County Manager with preparation•Governing board must:•Adopt project ordinances, if used •Establish Capital Reserve funds, if used•A CIP plan is not a budget and does not authorize spendingHarnett County Capital Improvement Plan FY 2022-28
Harnett County Capital Improvement Plan FY 2022-28How do CIP projects get “budgeted”•Having a project in the CIP does not mean you can start spending $•Projects must be budgeted before funds can be spent How?•Some jurisdictions turn Year 1 of the plan into a budget•Through the operating budget—these should be projects that don’t run past the end of the fiscal year they are budgeted in•Through a separate project ordinance—especially if project will exceed 1 year in length•Ordinance must be balanced, i.e., revenues = expenses
IF NOT LEGALLY REQUIRED, WHY DO IT?•Gets everything listed in one place•Helps link to jurisdiction goals & long-range plans•Helps prioritize important projects•Helps see cumulative impacts of debt and other resource needsHarnett County Capital Improvement Plan FY 2022-28
IF NOT LEGALLY REQUIRED, WHY DO IT?•Helps see finance issues as a whole (can we afford this in light of other commitments, what can we fund and when?)•Helps see timing issues (what makes sense to do first, second, etc.?)•Offers time to consider many options for how best to develop facilities (much overlap)•Reveals relationships between capital projects that may be overlooked otherwise•Ready for “opportunities” – grants, partnerships, collaborations in futureHarnett County Capital Improvement Plan FY 2022-28
REVIEW PROCESS•Included General and Solid Waste Fund County Departments •CIP projects include all components of capital $100,000 and greater•Process held separately from operating budget in the fall•Departments received training and detailed instructions on how to complete forms•Departments provided:•Thorough written justification of the project•A reliable cost estimate•A project budget with requested funding in today’s dollars•Estimates of impact on operating budgetHarnett County Capital Improvement Plan FY 2022-28
REVIEW PROCESS•Projects are based on today’s dollars and inflated uniformly: •Non-construction: 3%•Construction: 6%•Projects vetted by internal concept team•Projects were reviewed by management team and determined to be recommended or future•A funding source was identified for recommended projects•The goal is to fund projects up front•Unsure of whether this goal can be met until operating budget developed•Somewhat comfortable that FY 2022 projects can be funded•Future projects included those where:•No funding source was available•The scope needed greater definition•The cost estimate needed refinementHarnett County Capital Improvement Plan FY 2022-28
FUTURE PROCESS•Financial models for fleet leasing program•Focus on project management—tracking of key activities for greater project accountability•Incorporating utilities into the CIP processHarnett County Capital Improvement Plan FY 2022-28
FUNDING STRATEGY•Maximize grants and other (non-tax) funding sources•DOT for airport projects•PARTF for park projects•911 funds for CAD/dispatch software replacement•GREAT for broadband project•Reserve debt capacity for essential projects; where possible, use retiring debt to fund new projects•Estimate operating costs to develop an overall financial modelHarnett County Capital Improvement Plan FY 2022-28
FUNDING STRATEGY•Attempt to pre-fund pay-go projects (as operating budget allows) through capital reserve contribution•Example: $2,579,194 for Emergency VIPER radio replacement (Year 4)•Fund $515,839/year, beginning in FY 2021•Current balance in capital reserve used to offset budget impact of prefunding in early years•Continue appropriations to special revenue funds for Parks, Sheriff, and FleetHarnett County Capital Improvement Plan FY 2022-28
FUNDING SUMMARY (p. 12 & 13)Harnett County Capital Improvement Plan FY 2022-28
OPERATING IMPACTS (p.14)Harnett County Capital Improvement Plan FY 2022-28
READERS GUIDE (p.6)Harnett County Capital Improvement Plan FY 2022-28
ACTION SUMMARY (p.7 & 8)Harnett County Capital Improvement Plan FY 2022-28
HARNETT COUNTY SCHOOLS REQUESTS—BOE PRIORITYCategory/ProjectsApril 2020 Estimated Cost How CIP AddressesCurrent ProjectsErwin Elementary School $27,500,000 Included as a funded projectNorthwest Harnett Elementary School $38,100,000 Included as a funded projectTier 1 Projects (Immediate to 1 year)Johnsonville Elementary School (New Cafeteria, New Classrooms, Renovate Gym) $11,300,000Phase 1 included as a funded project; Phase 2 included as a future projectSouth Harnett Elementary School Cafeteria Renovations $380,000Not included; school system is using other county funds to complete this project in FY 2021South Harnett/Lillington Middle School (1100 seats, not incl. land) $50,000,000 Included as a future projectSouth Harnett/Lillington or Highland High School $90,000,000 Included as a future projectHighland Elementary School Addition (300 seats with cafe expansion) $7,471,000 Included as a future projectOverhills Elementary School Addition (300 seats with cafe expansion) $7,471,000 Included as a future projectTier 2 Projects (2 to 4 years)Lafayette Elementary School Gym Renovations/New Cafeteria $5,000,000 Included as a future projectNorth Harnett Primary Renovations TBD Not submitted as CIP requestWayne Ave. Elementary Renovations TBD Not submitted as CIP requestHarnett County Capital Improvement Plan FY 2022-28
HARNETT COUNTY SCHOOLS REQUESTS—BOE PRIORITYCategory/ProjectsApril 2020 Estimated Cost How CIP AddressesTier 3 Projects (5 to 9 years)Buies Creek Elementary School Replacement $28,000,000 Included as a future projectWestern Harnett-area Elementary School $31,300,000 Not submitted as CIP requestNorthern Harnett-area Elementary School $31,300,000 Not submitted as CIP requestSTAR Academy Renovations/Replacement TBD Included as a future projectTier 4 Projects (10 to 15 years)Western Harnett-area Middle School $50,000,000 Not submitted as CIP request—beyond CIP timeframeNorthwestern Harnett-area Middle School (land procured) $50,000,000 Not submitted as CIP request—beyond CIP timeframeHCHS/THS/WHHS Renovations TBD Not submitted as CIP request—beyond CIP timeframeOther School Renovations (school-by-school basis) TBD Not submitted as CIP request—beyond CIP timeframeTier 5 (prioritize as resources become available)Harnett County Early College @ Benhaven $3,000,000A portion of this project is included in the Benhaven project, including parking and renovating the gym and attached classroomsNew School Transportation Facility $6,415,522 Included as a future projectNew Custodial/Storage Facility TBD Not submitted as a CIP requestGentry Educator Development Center TBD Not submitted as a CIP requestHarnett County Capital Improvement Plan FY 2022-28
Harnett County Capital Improvement Plan FY 2022-28•Purpose for including completed projects is to “close the loop”•Projects that had spending in the previous fiscal year are included•Gives final accounting for budget (we are hoping to improve accountability in the future by reporting on whether time targets also met)COMPLETED PROJECTS
PARKS & RECREATION -- BOONE TRAIL SCHOOL (FORMER) DEMOLITION (p. 15)Harnett County Capital Improvement Plan FY 2022-28
Harnett County Capital Improvement Plan FY 2022-28
PARKS & RECREATION -- NEILLS CREEK AND WESTERN HARNETT FACILITIES LIGHTING (p. 67)•$411,000 in FY 2020 (on budget)•Completed December 2019•Funded from GO bond proceeds •Provide field lighting for Western Harnett Middle School field and Harnett Central Tennis Court•Increased costs for electricity; increased revenue for field rentalHarnett County Capital Improvement Plan FY 2022-28
Harnett County Capital Improvement Plan FY 2022-28•Project approved in 2021-2027 CIP or by other action•Little discretion to change or remove the project•Main construction or purchase contracts have been executed•Able to postpone expenses for future phasesAPPROVED CONTRACTS-LET PROJECTS
HARNETT COUNTY SHERIFF -- 911 DISPATCHING SOFTWARE REPLACEMENT (p. 17)•$441,603 in FY 2021•Partial 911 funding•Existing software has not been upgraded in 20 years and will not support state’s new IP network, receive videos, or work with AVLs to support dispatch of closest vehicles•Software go-live date has been postponed to early 2021•No increased operating costsHarnett County Capital Improvement Plan FY 2022-28
Harnett County Capital Improvement Plan FY 2022-28
BROADBAND EXPANSION INITIATIVE (p. 25)•Partner with Cloudwyze for expansion of broadband in underserved and unserved areas of the county•$2M in FY 2021, funded from General Fund Fund Balance; $2M requested from GREAT grant, but not approved this year•Broadband initiative has been the Harnett Board of Commissioner’s top legislative priority since 2014•Contract has been executed with Cloudwyze; will reapply for GREAT grantHarnett County Capital Improvement Plan FY 2022-28
EMERGENCY RADIO SYSTEM --NORTHWEST HARNETT RADIO TOWER REPLACEMENT (p. 35)•$830,337 over FY 20 and 21 (projected under budget)•Funded from Radio Project Capital Reserve (leftover VIPER)•Construct a new tower at 1979 Oakridge River Road, Fuquay-Varina•Remove existing tower at 130 Oakridge Road, Fuquay-Varina and restore land•Tower designed and bid. Projected completion revised to March 1, 2021•Lease on existing land being terminated August 31, 2021•Decreased costs because no longer leasing landHarnett County Capital Improvement Plan FY 2022-28
HARNETT COUNTY RESOURCE CENTER & LIBRARY AND DSS ADDITION (P. 40)•Construct a 57,000 sf government resource center and library located at 455 McKinney Parkway, Lillington•Construct a 10,000 sf addition to DSS •Site improvements and offsite turning lane•Project bid August 2019•$26.3M budget: $20.9M installment debt, $3.8M bond premium, $1.3M General Fund; $287K interest•Temporary certificate of occupancy issued December 31, 2020; final CO expected first week in February; US 401 turning lane projected to be done by May 2021•Increased operating costs from annual debt service, expanded library services, and facility cleaning and maintenance•Decreased costs from moving county offices from rental spaceHarnett County Capital Improvement Plan FY 2022-28
Harnett County Capital Improvement Plan FY 2022-28
Harnett County Capital Improvement Plan FY 2022-28
HARNETT COUNTY SHERIFF -- RECORDS SOFTWARE REPLACEMENT (p. 54)•$139,632 in FY 2021 (projected to be on budget)•Funded from Asset Forfeiture funds•Existing software hasn’t been upgraded in 20 years•Software went live on November 3, 2020•No increased operating costsHarnett County Capital Improvement Plan FY 2022-28
HARNETT COUNTY SCHOOLS -- ERWIN ELEMENTARY SCHOOL REPLACEMENT (p. 44)•Construct 102,500 sf school located at 405 Denim Drive, Erwin and demolish former Erwin school•New school replaces Erwin and Gentry•Gentry to be converted into a staff development center, major renovations not expected (and not requested through CIP)•$31M, funded from general obligation bonds and bond premium•The new school projected to be substantially complete by November 1, 2021•School projected to open in early 2022Harnett County Capital Improvement Plan FY 2022-28
PARKS & RECREATION -- CAPE FEAR SHINER PARK DEVELOPMENT (PHASE 1) (P. 62)•$808,004 over FY 2020 and 2021 (under budget)•$400,000 from PARTF grant; remainder from Parks Capital Reserve•Develop Phase 1 of the Cape Fear Shiner Park, located at 350 Alexander Drive, Lillington•2 multiuse fields, 2 baseball/softball fields, 3.5 miles of walking trails, water access, observation deck, and park infrastructure•Develop Phase 2 as funding allows: picnic shelter, playground, and restroom—currently working on design for restroom—future, not funded•Park opened end of October 2020•Increased operating costs for park staff and maintenanceHarnett County Capital Improvement Plan FY 2022-28
PARKS & RECREATION -- PATRIOTS PARK DEVELOPMENT PHASE 1 (p. 69)•Phase 1 cost estimated at $411K•Over CIP document amount because about $7K in expenses omitted from estimates•Over last year’s budget because of bad soils and moving staff to complete Cape Fear Shiner by grant deadline (savings in that project)•Funded from Parks Capital Reserve•7 acre-site, co-located with Convenience Center on Ponderosa Road•Includes 2 multi-use fields for open play and 2,500-foot walking trail•Project is nearly complete•Increased operating costs for parks staff and maintenanceHarnett County Capital Improvement Plan FY 2022-28
PARKS & RECREATION -- PATRIOTS PARK DEVELOPMENT PHASE 2 (p. 71)•Phase 2 cost estimated at $96K•Funded from Parks Capital Reserve•Includes picnic shelter and playground•Projected completion is February 2021•No additional operating costsHarnett County Capital Improvement Plan FY 2022-28
PUBLIC LIBRARY -- RADIO FREQUENCY IDENTIFICATION (RFID) INSTALLATION (p. 74)•$99,872 in FY 2021 for new library•Radio frequency identification (RFID) technology allows library materials to be tagged for self checkout, better inventory and theft control, and better utilization of library staff•This project received a 75% grant from state library technology funds; county contribution is $24,968 from Capital Reserve (which saved $18,427 in equipment for new library)•Action frees library staff to meet increased need for programming and information•Increased costs for software maintenance and tags for materialsHarnett County Capital Improvement Plan FY 2022-28
TAX OFFICE -- TAX REAPPRAISAL (p. 77)•State law requires counties to set aside funds for revaluation•County contracted with Vincent Valuations in June 2019 to conduct revaluation at a cost of $2,070,000•$690,000 contribution to reappraisal fund made in FY 2020, FY 2021 and FY 2022•Funding from general fund•Reappraised values effective FY 2023Harnett County Capital Improvement Plan FY 2022-28
Harnett County Capital Improvement Plan FY 2022-28•Approved in 2021-2027 CIP or by other action•No construction or purchase contracts have been executed (design contracts may have been executed)•Manager is recommending these projects•Commissioners have discretion to change, delay, or delete the projects realizing that some planning costs may have been incurredAPPROVED NO-CONTRACTS PROJECTS
BOARD OF ELECTIONS VOTING EQUIPMENT REPLACEMENT (p. 23)•Replace equipment purchased in 2006, nearing end of useful life•$334K in FY 2022, funded from capital reserve (based on most expensive option)•State Board of Elections has recently certified three vendors•Five-step process to select equipment:1. Board of Elections must view equipment demo2. BOE makes preliminary recommendation to BOC3. BOE tests equipment in at least one precinct4. BOE seeks State Board approval5. BOE makes final recommendation to BOC•Increased cost for maintenance offset by existing maintenanceHarnett County Capital Improvement Plan FY 2022-28
EMERGENCY (VIPER) RADIO REPLACEMENT (p. 28)•Replace VIPER radios before state-required upgrade and as support ends•$2.75M in FY 2025•$2.5M from Capital Reserve, $252K from Radio Project Capital Reserve•County built infrastructure and connected to NC Highway Patrol VIPER system in 2013; Motorola support for radios ends in 2023•State is requiring upgrade of radios to accept TDMA programming by July 1, 2025 (estimated cost of $300K)•County owns 298 mobile and 288 portable radios that will need replacement •Initially, county purchased radios for all entities, such as the towns and fire departments, but county funding is not recommended for replacements (+$3M to project)•Contributions to Capital Reserve over five years ($498,720/year) will allow this expense to be absorbed gradually rather than all at once•Emergency Management has applied for a grant, which could cover up to $457K of our expenseHarnett County Capital Improvement Plan FY 2022-28
EMERGENCY MEDICAL SERVICES -- EMERGENCY TRANSPORT REMOUNTS (p. 32)•$477,430 beginning in FY 2020•Funded from Capital Reserve•5 units included in CIP; 2 funded in FY 2020; 2 approved for FY 2021 and 1 requested for FY 2025•A remount extends the useful life of an ambulance by replacing the chassis and renovating the box•Includes contingency because scope can vary from vehicle to vehicle•Remounts projected based on vehicle remount policy:•Remount at 5 years and no more than twice afterwards, up to a maximum of 15 years•Saves approximately $115K per vehicle by remounting instead of replacing•The purchase of convalescent vans approved last year has reduced the need for remounts of emergency ambulancesHarnett County Capital Improvement Plan FY 2022-28
EMERGENCY MEDICAL SERVICES -- EMERGENCY TRANSPORT REPLACEMENTS (p. 34)•$2.3M over five years, beginning in FY 2022•Funded from Capital Reserve•Substantially more than last year because number of units that needed replacing v. remounts was not projected accurately –overall $600K increase •10 units included in CIP•Replacements projected based on current mileage, usage and vehicle replacement policy:•Replace at 15 years•Replace earlier if last remount reaches 200,000 miles for gasoline engines; 225,000 for diesel enginesHarnett County Capital Improvement Plan FY 2022-28
FLEET MANAGEMENT & REPLACEMENT SYSTEM (p. 38)•$950K over five years, beginning in FY 2019•Funded by transfer from general fund•Replace the county’s non-emergency vehicles based on standard criteria that minimize maintenance costs and maximize resale revenue•The funding requested in the CIP will allow most vehicles to be replaced once•Thereafter, future replacements will be funded by “leasing” vehicles to departments•Currently developing financial model to determine if leasing rates sufficientHarnett County Capital Improvement Plan FY 2022-28
HARNETT COUNTY SHERIFF – CAPITAL RESERVE (p. 51)•Annual contribution of $450,000, beginning in FY 2016•Primarily used to fund cars and other capital•Current balance is $200,966•Recommended to be used for several of Sheriff’s CIP requestsHarnett County Capital Improvement Plan FY 2022-28
HARNETT COUNTY SHERIFF -- DETENTION CENTER SECURITY INTERCOM REPLACEMENT (p. 52)•$130,612 in FY 2021; scheduled for early 2021•Funded from Sheriff Capital Reserve—reserve has a current balance $200,966•Equipment is 11 years old, no longer made by manufacturer and replacement parts are hard to find•No increased costs (same vendor)Harnett County Capital Improvement Plan FY 2022-28
HARNETT COUNTY SHERIFF -- DETENTION CENTER VIDEO SURVEILLANCE SYSTEM UPGRADE (p. 53)•$64,641 in FY 2020 approved to replace failed DVRs•$247,030 in FY 2022 to replace remainder of the system•Funded from Sheriff Capital Reserve—reserve has a current balance of $200,966•Equipment is 11 years old, no longer made by manufacturer and replacement parts are hard to find•No increased costs (same vendor)Harnett County Capital Improvement Plan FY 2022-28
HARNETT COUNTY SCHOOLS -- NEW NORTHWEST HARNETT ELEMENTARY SCHOOL (p. 49)•Construct a 120,000 sf school on Rollins Road, Fuquay-Varina to alleviate overcrowding at Lafayette Elementary•$37.8M, funded from general obligation bonds, Harnett Regional Water, and lottery proceeds (land purchase)•The project is projected to be bid in mid-March, with sale of bonds in May•Projected to open middle of 2022-23 school yearHarnett County Capital Improvement Plan FY 2022-28
HARNETT REGIONAL JETPORT (HRJ) --AIRFIELD LIGHTING REHABILITATION (p. 55)•$2.2M over two years, beginning in FY 2021; includes AWOS relocation•Design and construction administration 100% funded by NCDOT DOA, who has prioritized project•Construction 90% by Airport Improvement grant funds; 10% match funded from Airport Capital Reserve•Lighting was installed without conduit, causing shorts and open circuits•Properly functioning lighting system necessary to ensure flight safety•Bid in December 2020, which reduces our costs by $42K; DOT has not yet released fundsHarnett County Capital Improvement Plan FY 2022-28
HARNETT REGIONAL JETPORT (HRJ) -- APRON EXPANSION (p. 57)•$3.7M over three years, beginning in FY 2020, with construction starting in FY 2023•Funded 90% by NC DOT DOA; 10% match funded from Airport Capital Reserve and general capital reserve•Project expands size of apron to 144,000 sf expansion and strengthens existing pavement; provides parking for 9 additional planes and better passenger loading and unloading•Project design has been completed and permitted•Construction is currently on hold due to NCDOT/DOA programmatic changes, which effects project funding (update: DOT may release funds in FY 2022)Harnett County Capital Improvement Plan FY 2022-28
Harnett County Capital Improvement Plan FY 2022-28
PARKS & RECREATION – CAPITAL RESERVE (p. 64)•$200,000 annually from the general fund, beginning with FY 2018•Provides a reliable source of funding the Parks and Recreation Department can leverage for smaller projects within the county’s parks•Often in-house labor and equipment are used to reduce costs and maximize return from these funds•Funding supports/could support Cape Fear Shiner, Patriots, Anderson Creek, Shawtown, NW Harnett, Boone Trail, water access sites and BenhavenHarnett County Capital Improvement Plan FY 2022-28
PARKS & RECREATION -- GREENWAY TRAIL CONSTRUCTION CAPITAL RESERVE (p. 65)•County currently deficient 26 miles of greenway; projected deficient 36 miles by 2030•Public input in the 2015 Comp Plan and 2017 Parks and Rec Master Plan showed greenway development one of top priorities•Greenways provide health and environmental benefits•Bicycle, Pedestrian, and Greenway Plan launched in May 2020•CIP recommends $100K for 5 years and $250K annually thereafter•Does not include operating costs to maintain greenways constructed•Greenway plan complete and was presented to Commissioners on January 19Harnett County Capital Improvement Plan FY 2022-28
SOCIAL SERVICES & COMMONS AREA ROOF REPLACEMENT (p. 76)•$299,800 in FY 2022 •Funded from Capital Reserve•Health roof leaked, causing serious damage•Replacement of Health Department section is complete•Work will include 20-year warrantyHarnett County Capital Improvement Plan FY 2022-28
SOLID WASTE -- BULLDOZER REPLACEMENT (p. 79)•Replace 2005 dozer with 11,000 equipment hours that is constantly breaking down•Dozer is critical for landfill operations and is subjected to rough conditions•$409K, from Solid Waste Capital Reserve•D6 Caterpillar Dozer was ordered in July 2020 and delivered in November 2020•Decreased costs because new dozer will need far less maintenanceHarnett County Capital Improvement Plan FY 2022-28
Harnett County Capital Improvement Plan FY 2022-28•Approved in 2021-2027 CIP or by other action•A portion of the construction or purchase contracts have been executed (design contracts may have been executed), but not all main contracts have been executed•Manager is recommending these projects•Commissioners have discretion to change, delay, or delete the projects realizing that some planning and purchase/construction cost may have been incurredAPPROVED NO-CONTRACTS (PART)
BENHAVEN (FORMER) SCHOOL RENOVATION (p. 20)•Stabilize former Benhaven Elementary School, prepare for early college, and ready campus for future renovations•Future uses planned:•Use gym for Early College•House Library services, Parks & Recreation programming, satellite space for other county offices & community uses”•Community supports preserving and revitalizing campus•$1.3M for current and planned work; $802K GO bonds, $152K Capital Reserve; $501K HRW, and $58K general fundHarnett County Capital Improvement Plan FY 2022-28
BENHAVEN (FORMER) SCHOOL RENOVATION (p. 20)•Major work to date: •Early College/gym and attached classrooms: demo cafeteria building for parking, replace flooring, interior and exterior painting, ceiling installation, replace water line, replace windows and doors•Other buildings: replace roof on 2-story, repair roof on media center, HVAC repairs•FY 22: replace media center roof and run sewer•FY 24: replace windows in 2-story•Future phase: finish early college and renovate other buildings for county and community use•Increased costs for building maintenance and electricityHarnett County Capital Improvement Plan FY 2022-28
CENTRAL CAROLINA COMMUNITY COLLEGE (CCCC) -- PARKING LOT RESURFACING (p. 27)•Finish parking lot resurfacing project, at main campus by resurfacing approximately 10,000 square yards in four parking lots•Eliminated from 2019 scope of work because of budget constraints•Necessary to prevent complete deterioration of pavement•$160,338 in FY 2022, funded from capital reserveHarnett County Capital Improvement Plan FY 2022-28
Harnett County Capital Improvement Plan FY 2022-28•Projects not approved in a previous CIP (may have been a future project)•Manager is recommending these projects•Commissioners have complete discretion about timing and whether to fund or notNEW PROJECTS
EMERGENCY MEDICAL SERVICES (EMS) --CARDIAC MONITORS REPLACEMENT (p. 30)•Replace all EMS cardiac monitors at the end of their 10-year useful life in FY 2027•Monitors cannot be upgraded to new technology•$610,855 funded from capital reserve•Replacing all monitors at one time prevents different models in the field, which can lead to staff confusion and errors in care.Harnett County Capital Improvement Plan FY 2022-28
EMERGENCY MEDICAL SERVICES (EMS) --CONVALESCENT TRANSPORT UNIT REPLACEMENT (p. 31)•Replace convalescent transport units every three years•Replacing one unit per year, beginning FY 2023, and replacing stretchers beginning in FY 2026•$674,182 over FY 2023 to FY 2028•Cost savings of approximately $260K per replacement van over a 15-year periodHarnett County Capital Improvement Plan FY 2022-28
EMERGENCY SERVICES -- OLD JAIL DEMOLITION AND RELOCATION OF BUILDING SYSTEMS (p. 37)•$432K in FY 2021, funded from Capital Reserve•Electrical, mechanical and plumbing systems are shared with the former jail•Water infiltration and mold are an issue•Project will also require temporary relocation of Emergency Management, DMV and NC HP offices for three months•Design complete; bid to be awarded in FY 2021, with three month-construction scheduleHarnett County Capital Improvement Plan FY 2022-28
EMERGENCY SERVICES -- OLD JAIL DEMOLITION AND RELOCATION OF BUILDING SYSTEMS (p. 37)Harnett County Capital Improvement Plan FY 2022-28
HARNETT COUNTY SCHOOLS -- CAMERA UPGRADES (p. 42)•Upgrade security cameras to digital technology at seven schools•$318K in FY 2022•CIP recommended funding from lottery proceeds, but those may not be available; timeframe and funding may have to be adjusted •Existing cameras are obsolete, and replacements are not available•Security cameras have been upgraded at 19 schools •Board of Education Tier 1 ProjectHarnett County Capital Improvement Plan FY 2022-28
HARNETT COUNTY SCHOOLS -- ELECTRONIC DOOR LOCKS (p. 43)•Replaces locks on 58 doors at 17 schools•$394K in FY 2022•CIP recommended funding from lottery proceeds, but those may not be available; timeframe and funding may have to be adjusted •New locks will be electronic and can be controlled remotely•Electronic door locks enhance security during emergency situations•Board of Education Tier 1 ProjectHarnett County Capital Improvement Plan FY 2022-28
HARNETT COUNTY SCHOOLS -- JOHNSONVILLE ELEMENTARY SCHOOL PHASE 1 EXPANSION & RENOVATION (p. 46)•Demolish and replace the cafeteria with a 9,500 sf building•Demolish the old CTE classroom building and renovate 9,000 sf gym•$5.1M, funded leftover Benhaven GO bond proceeds•Construction is expected to begin during upcoming summer break•Phase 2 is a future project and includes construction of 27,500 sf classroom building to replace demolished buildingHarnett County Capital Improvement Plan FY 2022-28
HARNETT COUNTY SCHOOLS -- MAINTENANCE FUND (p. 47)•CIP recommends $1.4M annual contribution beginning in FY 2022 for replacement of HVAC systems and roofs•Would have provided a reliable source of funding for maintenance projects that matched needs projected by school maintenance staff •Elimination of lottery proceeds will cause a $1M+ shortfall, so amount needs to be adjusted to $400K per yearHarnett County Capital Improvement Plan FY 2022-28
HARNETT REGIONAL JETPORT (HRJ) -- MASTER PLAN UPDATE (p. 59)•Last plan update was 2005•Plan will include an up-to-date Airport Layout Plan (ALP)•ALP is required to receive Airport Improvement Program grant funds•$414,357, funded from grants and 10% local match from Airport Capital Reserve •Work will be phased over three years, beginning in FY 2021•Approval of work authorization is on the BOC agenda for January 19Harnett County Capital Improvement Plan FY 2022-28
INFORMATION TECHNOLOGY -- FIBER EXTENSION (p. 60)•Construct a one-mile fiber connection across the Cape Fear River from 310 W. Duncan Street to 250 Alexander Drive•Provides a redundant loop for the county’s core data network and phone system•$231K in FY 2028, funded from capital reserveHarnett County Capital Improvement Plan FY 2022-28
PARKS & RECREATION -- BENHAVEN COMMUNITY PARK REDEVELOPMENT (p. 61)•Rehabilitate existing ball fields and playground and construct a picnic shelter at former Benhaven School (related to overall project to repurpose former school)•Project will address recreation needs and safety concerns•$139K in FY 2021, funded from Parks Capital ReserveHarnett County Capital Improvement Plan FY 2022-28
PARKS & RECREATION -- PATRIOTS PARK DEVELOPMENT PHASE 2 (p. 71)•Construct a picnic shelter and playground, which were requested by the community•$96K, funded from Parks Capital Reserve•Expected completion in February 2021Harnett County Capital Improvement Plan FY 2022-28
PARKS & RECREATION – SHAWTOWN COMMUNITY PARK DEVELOPMENT (p. 72)•Develop next set of planned improvements at former Shawtown School, including walking trail, fitness stations, playground, picnic shelter and community garden•Partner with Cooperative Extension to develop the community garden•Renovation of north classroom completed in 2019 for community meeting space, Boys & Girls Club, ReEntry Family Services, Sheriff PAL program, and Work Readiness Training Center; work also included outdoor basketball court and parking lot•$130K in FY 2021, funded from Parks Capital Reserve•No other funding source identified to move ahead with full development•Incremental development will occur using funds from Park Capital ReserveHarnett County Capital Improvement Plan FY 2022-28
SOLID WASTE --NORTHWEST CONVENIENCE CENTER RELOCATION (p. 80)•Relocate the Northwest Convenience Center to 1971 Oakridge River Road, Fuquay-Varina, same property as new tower•Provide a larger and safer site to serve the growing population in the area•$494,254 in FY 2022, funded from Solid Waste Capital ReserveHarnett County Capital Improvement Plan FY 2022-28
Harnett County Capital Improvement Plan FY 2022-28Projects are designated as future for any of the following reasons:•No reliable cost estimate has been obtained•The scope is not well defined or could be further refined•Funds have not been identified to cover the cost and these projects are not funded in the recommended CIPFUTURE PROJECTS
ANIMAL SERVICES -- ANIMAL SHELTER REPLACEMENT (p. 82)•Existing facility was built more than 25 years ago and is operating at maximum capacity•Current facility has inadequate space and layout for the treatment and testing of animals, food preparation, laundry and dishes, and adoption visitation•Current site is owned by HRW who will need the land to expand the NW Wastewater Treatment Plant in 5 to 6 years•A feasibility study is needed to determine the new location, building needs, and costHarnett County Capital Improvement Plan FY 2022-28
CENTRAL CAROLINA COMMUNITY COLLEGE (CCCC) -- DRAINAGE SYSTEM REPAIR (p. 82)•Current drainage system is more than 40 years old•College maintenance staff have determined the storm water management system is failing, and the drainage lines are undersized and need to be replaced•County engineer reviewed the problem and local contractor provided an estimate without a detailed scope•A feasibility study that would include future expansion of the campus and a reliable cost estimate is recommendedHarnett County Capital Improvement Plan FY 2022-28
COURTHOUSE SHELL-SPACE UPFIT (p. 83)•When courthouse constructed, 12,150 sf of “shell space” was built on 3rdfloor for future courtroom•Needs of all court offices have not yet been identified and prioritized•When county is ready to move forward with build-out of space, a feasibility study should be done to determine needs and estimated cost•A feasibility study is planned in FY 2021Harnett County Capital Improvement Plan FY 2022-28
FLEET MAINTENANCE FACILITY IMPROVEMENT OR REPLACEMENT (p. 83)•Existing garage is too small and doesn’t meet service demands•Options for addressing include:•Expanding the facility by constructing additional bays•Replace aging equipment only•Replacing the existing facility with a new garage, possibly in partnership with Harnett County Schools, which also has garage needsHarnett County Capital Improvement Plan FY 2022-28
HARNETT COUNTY SCHOOLS – BUIES CREEK ELEMENTARY SCHOOL REPLACEMENT (p. 84)•The main part of the 36,750 sf facility was built in 1948•The school has 242 students, above its rated capacity of 233•Student population is projected to exceed the rated capacity over the next seven years•Existing site is 5.9 acres and is landlocked•Classified as Tier 3 project by Board of Education•No cost estimate has been obtained •Harnett County would need to issue debt to fund this project•County and school system need to discuss future bond issuances and how they would be funded; future joint meeting plannedHarnett County Capital Improvement Plan FY 2022-28
HARNETT COUNTY SCHOOLS – HIGHLAND ELEMENTARY SCHOOL EXPANSION (p. 84)•The current school is 96,212 sf and is severely overcrowded•Rated capacity is 670 students, and the student population is 1,107 with additional growth expected•Expansion will include 40,000 square feet of classroom space and 2,000 square feet of cafeteria space•Classified as Tier 1 project by Board of Education•Cost estimated at $16.6M•Harnett County would need to issue debt to fund this project •County and school system need to discuss future bond issuances and how they would be funded; future joint meeting plannedHarnett County Capital Improvement Plan FY 2022-28
HARNETT COUNTY SCHOOLS – JOHNSONVILLE ELEMENTARY SCHOOL PHASE 2 EXPANSION & RENOVATION (p. 85)•Phase 2 will construct a 27,500 sf building addition to replace the CTE classroom space that was demolished in Phase 1•Classified as Tier 1 project by Board of Education•Cost estimated at $10M•Harnett County will need to issue debt to fund this project •County and school system need to discuss future bond issuances and how they would be funded; future joint meeting plannedHarnett County Capital Improvement Plan FY 2022-28
HARNETT COUNTY SCHOOLS – LAFAYETTE ELEMENTARY SCHOOL RENOVATION (p. 85)•The 74,152 sf school was originally built in 1948 and was added onto in 1957•After a portion of students move to NW Harnett Elementary School, the Board of Education would like to renovate the school, possibly for additional uses•Exact nature of the renovations has not been determined•Classified as Tier 2 project by Board of Education•No cost estimate has been obtainedHarnett County Capital Improvement Plan FY 2022-28
HARNETT COUNTY SCHOOLS –MAINTENANCE PROJECTS (p. 85)•When cost estimates have been obtained, consider funding:•Overhills High tennis court resurfacing•South Harnett windows replacementHarnett County Capital Improvement Plan FY 2022-28
HARNETT COUNTY SCHOOLS – NEW SOUTH HARNETT LILLINGTON MIDDLE SCHOOL (p. 86)•Construct a new 174,000 sf school to accommodate 1,200 students•Alleviate existing and projected overcrowding at Harnett Central and Overhills middle schools•Classified as Tier 1 project by Board of Education•Preliminary cost estimated at $55M based on similar schools in the region•A detailed cost estimate is needed for funding to be considered •Harnett County will need to issue debt to fund this project•County and school system need to discuss future bond issuances and how they would be funded; future joint meeting plannedHarnett County Capital Improvement Plan FY 2022-28
HARNETT COUNTY SCHOOLS – NEW SOUTH HARNETT LILLINGTON/HIGHLAND HIGH SCHOOL (p. 86)•Construct a new 305,250-square-foot high school to accommodate 1,850 students•Alleviate existing and projected overcrowding at Overhills and Harnett Central high schools•Classified as Tier 1 project by Board of Education•Preliminary cost estimated at $95M based on similar schools in the region•A detailed cost study is needed for funding to be considered •Harnett County will need to issue debt to fund this project•County and school system need to discuss future bond issuances and how they would be funded; future joint meeting plannedHarnett County Capital Improvement Plan FY 2022-28
HARNETT COUNTY SCHOOLS – OVERHILLS ELEMENTARY SCHOOL EXPANSION (p. 86)•Overhills Elementary, which is currently 103,473 square feet, is overcrowded•Rated capacity is 720 students, and the student population is 876 and is projected to grow•Expansion would include 19,500 square feet of classroom space and will replace mobile units•Classified as Tier 1 project by Board of Education•Cost estimated at $6.8M•Harnett County will need to issue debt to fund this project •County and school system need to discuss future bond issuances and how they would be funded; future joint meeting plannedHarnett County Capital Improvement Plan FY 2022-28
HARNETT COUNTY SCHOOLS – STAR ACADEMY FACILITY IMPROVEMENTS (p. 87)•Located next door to Board of Education Administration building•The original building was constructed in 1925 and has numerous problems•The Board of Education would also like to use the gym to host large meetings•Project would address replacing windows and air conditioning the gym•Classified as Tier 1 project by Board of Education•No cost estimate has been obtainedHarnett County Capital Improvement Plan FY 2022-28
HARNETT COUNTY SCHOOLS – TRANSPORTATION MAINTENANCE FACILITY REPLACEMENT (p. 87)•Existing facility is too small to service district busses and other vehicles•Facility has six bus bays and 12 are needed•Replacement of the existing facility is requested•Existing site will not accommodate expanded facility•Detailed cost estimate and funding source neededHarnett County Capital Improvement Plan FY 2022-28
HARNETT COUNTY SHERIFF --DETENTION CENTER HOUSING UNIT ADDITION (p. 87)•Last year, Sheriff has proposed constructing an 8,750 sf, 55-bed addition•The county currently houses outside inmates and receives between $250,000 and $1M annually in revenue•By 2030, it is projected that county inmates will consume all available beds and no revenue will be generated•A study last year showed that this project would cost the county between $2M and $7.1M in debt service and operating costs (after revenue deducted) over the next 10 years•Project would also consume debt service needed for schools•Recommendation is to monitor local inmates and construct an addition when needed to house local inmates; study showed building for outside inmates is not cost effectiveHarnett County Capital Improvement Plan FY 2022-28
HARNETT COUNTY SHERIFF – EVIDENCE STORAGE & CRIME SCENE PROCESSING BAY (p. 88)•Sheriff proposed constructing an 1,800 sf building to relocate the crime scene processing bay•The move creates additional space to expand evidence storage space•A reliable cost estimate for site work will need to be obtainedHarnett County Capital Improvement Plan FY 2022-28
HARNETT COUNTY SHERIFF – GENERATOR PURCHASE AND INSTALLATION (p. 89)•The existing 400 KW generator only fully runs the 911 center; it operates life and safety equipment for the Sheriff’s Office and Detention center, but does not run the HVAC system•1,000 KW generator proposed by Sheriff’s Office would replace existing generator; a cost estimate was not available before recommended CIP done•Obtaining a proposal for adding a second generator and retaining existing generator is recommended; more cost effective and provides redundancy•911 funding may also be an option and should be exploredHarnett County Capital Improvement Plan FY 2022-28
HARNETT REGIONAL JETPORT (HRJ) – NEW TERMINAL CONSTRUCTION (p. 90)•Construct a 6,969-square-foot terminal to replace 2,200-square-foot terminal and serve as “Gateway to Harnett”•Last cost estimate was October 2019•Costs increased over previous estimate (+824,851)•DOT/DOA has prioritized airfield lighting rehabilitation (+148,611)•DOT/DOA lowered amount it was willing to commit (+293,971)•Seeking additional state funding for this project is recommended•State has released funds for utility designHarnett County Capital Improvement Plan FY 2022-28
HVAC CONTROL UPGRADES AND STANDARDIZATION IN MULIPLE LOCATIONS (p. 90)•Existing controls vary by type and use outdated software•Standardizing controls would allow for better centralized management, a more secure software platform and more efficient system operation•Admin Building chiller replacement and construction of Harnett Resource Center and library include a control system that can be evaluated as a standard for county buildings on the main Lillington campusHarnett County Capital Improvement Plan FY 2022-28
PARKS & RECREATION --ANDERSON CREEK PARK DEVELOPMENT (FUTURE PHASES) (p. 91)•Develop remaining 800 acres as large, regional passive park; features may include equestrian, walking and mountain bike trails; additional parking and playground; picnic shelter•County has developed 200 acres already•No funding source identified to move ahead with full development•Incremental development will occur using funds from Park Capital ReserveHarnett County Capital Improvement Plan FY 2022-28
PARKS & RECREATION -- BOONE TRAIL PARK DEVELOPMENT (p. 92)•Develop park on 13.5-acre site of former school•Initial concept plan with community input included renovated entrance, memorial walkway, amphitheater, basketball court, picnic shelter and walking trail•Community Center and Library already developed•Community has expressed interest in fundraising•No other funding source identified to move ahead with full development•Incremental development will occur using funds from Park Capital ReserveHarnett County Capital Improvement Plan FY 2022-28
PARKS & RECREATION – CAPE FEAR SHINER PARK DEVELOPMENT PHASE 2 (p. 92)•Phase 2 will include a playground, picnic shelter, and restroom facility.•Design and a reliable cost estimate is needed for the sewer/septic system and restroom facility•Incremental development will occur using funds from Park Capital ReserveHarnett County Capital Improvement Plan FY 2022-28
PARKS & RECREATION -- NEILLS CREEK PARK RESTROOM, CONCESSION & MAINTENANCE BUILDING (p. 93)•Construct a new restroom, concession, and maintenance storage building•Athletic fields built in 2018; tennis courts relocated in 2019•Park use has increased, creating need for restroom facilities•Design and a reliable cost estimate is needed for the sewer system and restroom facility•Incremental development would occur using funds from Park Capital Reserve and •$235K is also available from general obligation bonds (saved from lighting project)Harnett County Capital Improvement Plan FY 2022-28
PARKS & RECREATION -- NEILLS CREEK PARK ROADWAY CONSTRUCTION (p. 93)•A new driveway would allow access to the park without going through the campus of Harnett Central High School, allowing the park to be used during school hours•DOT would require construction of two turning lanes•A feasibility study, cost estimate, and funding source are neededHarnett County Capital Improvement Plan FY 2022-28
PARKS & RECREATION -- NORTHWEST HARNETT PARK DEVELOPMENT (p. 94)•Develop park to be co-located with new northwest convenience center and tower site•Desire for park noted during public input for conditional use permit•Park would feature two ball fields, picnic shelter, playground, walking trail, and fitness stations•No funding source identified to move ahead with full development•Incremental development will occur using funds from Park Capital ReserveHarnett County Capital Improvement Plan FY 2022-28
PUBLIC LIBRARY -- MOBILE OUTREACH VEHICLE (p. 94) •A mobile library could provide library services to currently underserved areas•The 2018-2023 Library Master Plan determined:•The county is still largely rural with 81% of residents living outside an incorporated town; the unincorporated area is growing faster than the rest of the county•Currently, 18% of residents live below the poverty line•It is reasonable to assume that accessing library services is challenging for a segment of the county’s population; we know that accessing the Internet is a problem in many areas of the county•The Library Director proposes putting together a team to do extensive research on the vehicle’s features before moving ahead with purchaseHarnett County Capital Improvement Plan FY 2022-28
PUBLIC LIBRARY -- WESTERN HARNETT SERVICE EXPANSION (p. 95)•The county is still largely rural with 81% of residents living outside an incorporated town; the unincorporated area is growing faster than the rest of the county•The 2018-2023 Library Master Plan found that approximately 48,000 residents lack adequate library services•Options for addressing this need include renovating an existing building or constructing a new building•A scope and reliable cost estimate, as well as projections for staff and other operating costs, are needed before moving ahead with the projectHarnett County Capital Improvement Plan FY 2022-28
Harnett County Capital Improvement Plan FY 2022-28Next steps:•What additional information is needed before approval?•Board prioritizationQUESTIONS, DISCUSSION, & NEXT STEPS
CIP PrioritizationIf enough time at the end of the presentation, the board will be asked to prioritize all projects, using the following scale:•Imperative (must do): correct danger to public health & safety, meet legal obligation, alleviate immediate service/facility deficiency, prevent irreparable damage (Rank #1)•Essential (should do): rehabilitate/replace obsolete facility, stimulate economic growth, reduce future operating costs, leverage grants (Rank #2)•Important (could do): provides new or expanded service, promotes intergovernmental cooperation, reduces energy use, enhances cultural or natural resources (Rank #3)•Don’t do (Rank #4)
Harnett County Capital Improvement Plan FY 2022-28Lisa McFaddenBudget Directorlmcfadden@harnett.org Renee PaschalBudget Consultant rpaschal@harnett.org
FISCAL POLICYThe “Roadmap” to Our County’s Future
History•Originally Adopted: May 7, 2012•Approved Amendments as of November 7, 2016•Approved Amendments as of February 17, 2020•Proposed amendments are in red
PurposeHarnett County government exists to meet the needs of residents through the services the County is mandated to provide or has elected to provide. In order to meet these needs, the County must maintain its financial integrity. In addition, the County must continually prepare to provide services for a growing population. The County's Fiscal Policy is intended to maintain and improve the County's financial condition and preserve its ability to meet future needs. This policy will be reviewed at least annually, and changes will be presented to the Board of Commissioners for approval.
PurposeAn effective policy:•Contributes to the County's ability to insulate itself from fiscal crisis,•Enhances short-term and long-term credit worthiness and helps the County achieve the highest credit and bond ratings possible,•Promotes long-term financial stability by establishing a clear and consistent framework for budget and financial decisions,•Directs attention to the total financial picture of the County, rather than single-issue areas,•Links long-term financial planning with day-to-day operations, and•Provides the County Staff, the County Board of Commissioners and the County citizens a framework for measuring the fiscal impact of government services against established fiscal parameters.
Six Key Policy Areas1.Capital Improvement Plan (CIP)2.Debt3.Fund Balance or Reserves4.Budget Development5.Education6.Cash Management/Investment
Capital Improvement Plan (CIP)1.It is the responsibility of the County Board of Commissioners to provide for the capital equipment and facilities necessary to deliver county services to the residents of the County, as well as provide necessary capital equipment and facilities for the Harnett County Public Schools and the Central Carolina Community College system.2.North Carolina statutes charge the County Manager with preparation of the recommended capital budget. It shall be his/her responsibility or that of his/her designee to coordinate the CIP process; receive requests from County departments, Harnett County Public Schools, and Central Carolina Community College; and propose a recommended CIP to the Board of Commissioners.3.The Board of Commissioners is responsible for adopting a CIP annually and may amend it as needed. 4.All capital projects must be proposed through the County’s CIP process. 5.The CIP includes all approved capital projects, including new construction, renovations, vehicles and heavy equipment, new software and other technology, and all other purchases and improvements that meet the threshold for definition as a capital project, currently $100,000 and above.
Capital Improvement Plan (CIP)6.The County will develop a CIP of at least seven years and review and update the plan annually. The Hamett County Public Schools and the Community College System are strongly encouraged to submit their needs through this process, along with a prioritization of their requests. 7.After projects are approved in the CIP and before the project can begin, the project must be authorized through one of two means:A.Capital project ordinances: Aseparate capital budget ordinance shall be submitted to the Board of Commissioners for approval for all capital projects that are projected to span more than one fiscal year;B.All other capital projects will be budgeted in the operating budget.8.All capital projects will be assigned a project code by the Finance Officer for tracking and reporting purposes.9.The CIP will prioritize the maintenance of existing facilities and equipment, and otherwise protect the county’s past capital investments. A maintenance and replacement schedule will be developed and followed as funding allows.
Capital Improvement Plan (CIP)10.County departments will provide a written justification and identify the estimated project costs, potential funding sources, and impacts on the operating budget for each proposed capital project and include this information in their requests. The County Manager or his/her designee will review, modify as appropriate, and include this information in the recommended CIP.11.The County will pursue the most cost-effective strategies for financing the CIP, consistent with prudent financial management.
Debt1.The County will confine long-term borrowing to critical capital projects that cannot be financed from current revenues, unless financing results in a net financial benefit to the county.2.The County will take a balanced approach to capital funding by utilizing capital reserves and pay-as-you-go funding where possible.Pay-as-you-go funding will come from budgeted appropriations and funds set aside in capital reserves.3.The county’s capital funding strategy should result in the least financial impact on current and future taxpayers. 4.When the County finances capital projects by issuing bonds or entering into capital leases, it will repay the debt within a period not to exceed the expected useful life of the project. Target debt ratios will be annually calculated and included in the review of financial trends.5.Net debt as a percentage of estimated market value of taxable property shall not exceed 2.5%. Net debt is defined as any and all debt that is tax-supported.
Debt6.Debt Service expenditures as a percent of total governmental fund expenditures should not exceed 15%. Should this ratio exceed 15%, staff must request an exception from the Board of Commissioners stating the justification and expected duration of the policy exception. Exceptions shall be reviewed and approved annually by the Board of Commissioners until compliance is achieved.7.The County will retire tax anticipation debt, if any, annually and will retire bond anticipation debt within six months after completion of the project.8.Outstanding tax-supported debt principal shall be no less than 50.0% repaid in 10 years.
Debt9.Enterprise Debt Policies:A.The Enterprise Fund is responsible for setting rates and charges at such a level which maintains the "self-supporting" nature of the fund.B.The County will target a minimum amount of equity funding of 10% of the Enterprise Fund capital improvement plan on a five-year rolling average.C.The Enterprise Fund will comply with all applicable bond covenants.D.The Enterprise Fund will maintain a debt service coverage ratio as defined by the General Indenture of the Enterprise System Revenue Bonds. These minimum requirements are summarized to be:1)1.20x debt service coverage on Parity Indebtedness (Revenues for this measure may include 20% of the balance in the Surplus Account at the end of the preceding Fiscal Year)2)1.00x debt service coverage of Parity Indebtedness, General Obligation Indebtedness, Subordinate Indebtedness, Other Indebtedness, and any amount due to the Qualified Reserve Fund or Qualified Reserve Fund Substitute.
Reserves Policies1.The County will maintain a minimum Unassigned Fund Balance, as defined by the Governmental Accounting Standards Board, at the close of each fiscal year equal to 15% of General Fund Expenditures with a targeted Unassigned Fund Balance equal to 20% of General Fund Expenditures.2.In the event that funds are available over and beyond the 20% targeted amount, those funds may be transferred to a capital reserve fund, a capital projects fund, to pay-down debt or to fund other one-time uses. Such transfers or uses shall be approved by the Board of County Commissioners in conjunction with a staff recommendation based upon a fund balance analysis to be completed within six months of the close of each fiscal year taking into consideration the prior year's financial statements, current year-to-date budget performance, current property tax valuations and the County's most recently adopted capital improvement plan.
Reserves Policies3.The County Board may, from time-to-time, utilize fund balances that will reduce Unassigned Fund Balance below the 15% minimum for the purposes of a declared fiscal emergency or other such purpose as to protect or enhance the long-term fiscal security of the County. In such circumstances, the Board will adopt a plan to restore the Unassigned Fund Balance to the target level within 36 months. If restoration cannot be accomplished within such time period without severe hardship to the County, then the Board will establish a different but appropriate time period.4.Enterprise Reserve Policies: The County has adopted a comprehensive strategy for the long-term stability and financial health of each Enterprise Fund that provides for annual increases in fund reserves to an established goal of 50% of operating and maintenance expenses.
Budget Development1.The County will manage its annual budget to meet its legal and debt obligations, ensure adequate funding of current service levels, meet the priorities of the Board of Commissioners, maintain the County’s financial condition, and keep property tax increases to a minimum.The County shall operate under an annual balanced budget ordinance whereby the sum of net revenues and appropriated fund balances equals the expenditure appropriations. 2.The Budget Process will comply with the North Carolina Local Government Budget and Fiscal Control Act.3.North Carolina statutes charge the County Manager with preparation of the recommended operating budget.It shall be his/her responsibility or that of his/her designee to coordinate the budget process; receive requests from County departments, Harnett County Public Schools, and Central Carolina Community College; and propose a recommended budget to the Board of Commissioners.4.The Board of Commissioners is responsible for adopting an annual operating budget and may amend it as needed.
Budget Development5.Use of one-time revenues: One-time revenues should not support ongoing personnel and operating costs. Use of one-time revenues is appropriate for capital outlay, CIP projects, debt retirement, contribution to capital reserve, and other non-recurring expenses. Proceeds from the sale of surplus capital items will go into the County’s general capital reserve, unless proceeds are otherwise restricted.6.The County will pursue an aggressive policy to collect current and delinquent property taxes, utility fees, licenses, permits and other revenues due to the County. The County will not waive any revenues due to the County unless those revenues were collected unlawfully.7.The Finance Officer will generate reports that show actual revenues and expenditures compared to the budget and will present this to the County Board on a monthly basis.8.Budget amendments will be brought to the County Board for consideration as needed.
Budget Development9.New or increased services: The County should ensure adequate funding of current services before funding new or enhanced services.10.Mid-year appropriations: All agencies supported by the county must function within the resources made available to them through the annual budget. The county will consider requests for new or expanded programs during the course of the regular budget process. Only in extreme circumstances will such requests be considered outside of the budget process.11.Funding-of Outside Agencies: From time to time, the County may elect to provide services through nonprofit agencies if those services meet the standard for public purpose as defined by the NC Constitution and the services can be achieved more cost effectively through the nonprofit. In order to receive county funding, nonprofits must abide by the county’s budget process and deadlines and provide the information requested during budget process.
Budget Development12.Grants: The County will pursue federal, state, and private grants to enhance services to County residents. However, the County will strictly limit its financial support of grant-funded programs to avoid commitments that continue beyond funding availability. The County will not continue programs after grants have expired, except as expressly approved by the Board of Commissioners as part of the annual budget process. The grant approval process will proceed as follows:A.If a grant does not require any county match, either cash or in-kind, and the funder does not expect the county to continue to fund a position or a program after the grant, then the proposal can be reviewed and approved by staff. However, the County Manager may choose to present a grant proposal to the Board for approval, if he/she feels that it is appropriate.B.If the grant requires a county match, either cash or in-kind, or the funder expects the county to continue to fund a position or program after the grant is complete, then the grant application must be submitted to the Board of Commissioners for approval. C.For grants that require Board of Commissioner approval, but approval cannot be obtained before the grant deadline, the Manager’s Office can authorize the application with prior notice to the Chair and Vice Chair and report to the Board of Commissioners at their next meeting. If the Board of Commissioners does not approve the grant proposal, the funder will be notified that the county chooses to withdraw the application. D.Departments shall be responsible for timely completion and filing of reports required by the grantor. Missing of report deadlines shall be grounds for denying approval of future grant applications.
Budget Development•Proposed Addition: Reduction in State and Federal Funding:•It will be the general policy of this Board that it will not absorb any reduction in State and Federal funds; however, the Board, in its discretion, may amend the budget ordinance to appropriate additional funds to compensate for the reduction in State and Federal funds so long as the ordinance, as amended, satisfies the requirements of G.S. 159-8 and 159-13. If the Board does not appropriate additional funds, the agency shall reduce personnel or program expenditures to stay within the authorized County appropriation.•The policy is extended to any agency that is funded by the County and receives State or Federal funds. This shall remain in effect until otherwise changed or amended by the Board of Commissioners. The County Manager is hereby directed to distribute this policy to each of the agencies that may be involved.
Budget Development13.New positions: New positions for existing programs and services should be added when there is no other viable option. Alternatives, such as contracting, technology, and reassignment of duties should be fully explored and documented before new positions are funded.14.Level of budgeting: In order to tie costs to specific services, departments shall submit budgets for each of their divisionsor program areas. Department heads are authorized to request transfers of operating funds between theirbudgeted divisions without prior approval. Transfers to and from personnel and capital outlay must be approved by the Budget Officer. Transfers made from salary and wage accounts shall not result in the increase of salary obligations. Transfers into capital outlay lines shall not result in the purchase of additional capital items not previously approved by the Board of Commissioners. The County shall adopt budgets at the department level. Commissioners reserve the right to review and/or adopt budgets at a greater level of detail.
Budget Development15.Justification for funding: Departments and agencies requesting funding from the county should justify their requests in terms of maintaining or increasing service levels. Departments should measure their performance in key service areas and periodically compare their performance to other jurisdictions to discover efficiencies and develop best management practices.16.Contingency funds: Departments shall not include contingency funds in their respective budgets. The county shall include a general contingency fund in its annual budget. The amount of the contingency fund shall not exceed one percent of the annual budget. 17.Budget Officer: The County Manager serves as the budget officer. He/she is authorized to perform the following functions or delegate them:
Budget DevelopmentA.Transfer funds within a department without limitation.B.Transfer amounts of up to $5,000 between departments of the same fund with a memorandum report of such transfers at the next regular meeting of the Board of Commissioners. C.Transfer amounts of up to $50,000 from contingency to any department with a memorandum report of such transfers at the next regular meeting of the Board of Commissioners. Greater amounts can be made available upon agreement of the Board of Commissioners.D.Employ temporary help from time to time to meet circumstances.E.Execute contracts provided that funds for the contract have been approved as part of the annual budget and the contract does not exceed the funds appropriated, the contract’s term does not exceed three years, all applicable state laws and county policies regarding purchasing are followed, and the contract does not exceed $100,000.
Budget DevelopmentF.Executeon behalf of the Board of Commissioners any other contract, change order, purchase order or other instrument incurring any obligation which is specifically approved by the Board of Commissioners.G.Authorize payment in an amount not to exceed $5,000 in settlement of any liability claims against the County or against any of its officers or employees.
Budget Development18.Enterprise Funds:A.The County maintains Enterprise Funds (primarily water and wastewater and solid waste) that are self-sustainingfor both operational and capital purposes. The Enterprise Funds will adhere to the County Fiscal Policy with any exceptions noted in the policy. B.Any improvements required to meet new regulatory requirements or to meet changes in the service demands will be included in either the capital improvement plan or the annual budget request, depending on the cost of the improvement.C.Service rates:1)Service rates will be reviewed annually as part of the budget process.2)Service rates will be adjusted as needed to provide adequate funding for the proper operation, maintenance, and expansion of the system.3)Service rates will be adjusted as necessary to meet bond covenants, debt service obligations, and the Adopted Fiscal Policy.
Education Funding Policies1.It is the intent of the County to appropriate funding to the Board of Education to assure that the necessary resources are provided for current expense and to meet the low-wealth funding requirements.2.The County will provide current expense funding based upon the most recent known 2nd month average daily membership (ADM) times the most recent known Three-Year Average of Appropriations as determined by the NC Department of Public Instruction.3.The County will provide funds for Capital and Capital Maintenance. The source of An amount equivalent to 65% of the prior year’s funding will be a portion of the lottery proceedsand will be disbursed based upon the adopted budget ordinance. 4.The County will detail the amounts to be budgeted under this policy as part of the annual budget ordinance.
Cash Management/Investment1.It is the intent of the County that public funds will be invested in interest bearing accountsto the extent possible to reduce the dependence upon property tax revenues. Funds will be invested with the chief objectives of safety of principal, liquidity, and yield, in that order. All deposits and investments of County funds will be in accordance with N.C.G.S. 159.2.Up to one-half (50%) of the appropriations to Non-County Agencies and to non debt-supported capital outlays for County Departments can be encumbered prior to December 31. Any additional authorization shall require the County Manager's written approval upon justification. The balance of these appropriations may be encumbered after January 1, upon a finding by the County Manager that there is a reasonable expectation that the County' s Budgeted Revenues will be realized.3.The County will use a Central Depository to maximize the availability and mobility of cash for all funds that can be legally and practically combined.4.Cash Flows will be forecasted and investments will be made to mature when funds are projected to be needed to meet cash flow requirements.
Cash Management/Investment5.Liquidity: No less than 20% of funds availablefor investment will be maintained in liquid investments at any point in time.6.Maturity: All investments will mature in no more than thirty-six (36) months from their purchase date.7.Custody: All investments will be purchased "payment-verses-delivery" and if certificated will be held by the Finance Officer in the name of the County. All non-certificated investments will be held in book-entry form in the name of the County with the County's third party Custodian (Safekeeping Agent).8.Authorized Investments: The County may deposit County Funds into: Any Board approved Official Depository, if such funds are secured in accordance with NCGS-159 (31). The County may invest County Funds in: the North Carolina Capital Management Trust, US Treasury Securities, US Agency Securities specifically authorized in GS-159 and rated no lower than "AAA", and Commercial Paper meeting the requirements of NCGS-159 plus having a national bond rating.
Cash Management/Investment9.10% of the County's investment funds may be invested in a specific company's commercial paper and no more than 25% of the County's investment funds may be invested in commercial paper. No more than 25% of the County's investments may be invested in any one US Agency' s Securities.10.Allocation: Investment income will be allocated to each participating fund or account based on a fair and equitable formula determined by the Finance Director.
Summary of Key RatiosRatio TargetTax Supported Debt to Assessed Value:<2.5%Tax Supported Debt Service vs. Expenditures:<15.0%Tax Supported 10- Year Payout Ratio:>50.0%General Fund Unassigned Fund Balance as a Percent of Operating Budget: >15.0%Enterprise Fund Pay-go Capital (5-year Rolling Average):>10.0%Enterprise Fund Parity Debt Service Coverage (with 20% of SurplusAccount)>1.20xEnterprise Fund Debt Service Coverage on all Indebtedness:>1.00xEnterprise Fund Reserves as a Percent of Operating and Maintenance:>50%
Questions?
‐ 20,000 40,000 60,000 80,000 100,000 120,0002010 2011 2012 2013 2014 2015 2016 2017 2018 2019Chart 1: Historical Population Growthin Unincorprated Area and MunicipalitiesMunicipalUnincorporatedSource: NC Demographer
‐ 5,000 10,000 15,000 20,000 25,000BuckhornStewarts CreekLillingtonHectors CreekDukeNeills CreekUpper Little RiverGroveBlack RiverJohnsonvilleAverasboroBarbecueAnderson CreekChart 2: Estimated 2017 Population by TownshipSource: Amerian Communities Survey
020,00040,00060,00080,000100,000120,000140,000160,000180,000200,0002000200120022003200420052006200720082009201020112012201320142015201620172018201920202021202220232024202520262027202820292030203120322033203420352036203720382039Chart 3: Historic and Projected Population Growth by Age65+ Adults18‐64 Adults5‐17 Children0‐4 ChildrenSource: NC Demographer
01002003004005006007008002006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019Chart 4: Annual Number of Foreclosures in HarnettCountyNC Administrative Office of the Courts
6.16.40246810121416Jan‐12Jul‐12Jan‐13Jul‐13Jan‐14Jul‐14Jan‐15Jul‐15Jan‐16Jul‐16Jan‐17Jul‐17Jan‐18Jul‐18Jan‐19Jul‐19Jan‐20Jul‐20Percent UnemploymentChart 5: Harnett County Unemployment RateHarnett CountyState AverageUnited StatesSource: NC Employment Security CommissionSource: NC Employment Security CommissionSource: NC Employment Security CommissionSource: NC Employment Security Commission
0500,0001,000,0001,500,0002,000,0002,500,0003,000,0003,500,0004,000,0004,500,0005,000,000FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021Chart 6: Article 39 Collections for First Five Months
‐ 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021Chart 7: Register of Deeds Excise Tax by QuarterJuly‐SeptOct‐DecJan‐MarApr‐JuneSource: NC DOR Conveyance Tax Returns
‐ 200,000 400,000 600,000 800,000 1,000,000 1,200,000FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021Chart 8: Building Inspections Revenue by QuarterJuly‐SeptOct‐DecJan‐MarApr‐JuneSource: Development Services/Accounting Software
22%0%5%10%15%20%25%30%2011 2012 2013 2014 20152016 2017 2018 2019 2020Chart 9: General Fund Types Unassigned Fund Balance as Percent of Budgeted ExpendituresHarnett County CAFRsGoal is 20%
23.53%26.77%0.00%5.00%10.00%15.00%20.00%25.00%30.00%FY 2015 FY 2016 FY 2017 FY 2018 FY 2019Chart 9A: Available Fund Balance as Percent of Budgeted Expenditures Compared to Population GroupHarnett CountyPopulation Group AverageNC Treasurer/Harnett Finance Officer
500 550 600 650 700 750 800 850 900 950 1,000 1,050 1,1002010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Chart 10: Revenues Per Capita in Constant DollarsWarning trend: Revenues per capita are declining. Trend does not apply, but HAS in the past.Source: Harnett County CAFRs
500.00 600.00 700.00 800.00 900.00 1,000.00 1,100.002010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Chart 11: Expenditures Per Capita in Constant DollarsSource: Harnett County CAFRs
0%2%4%6%8%10%12%14%16%18%2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Chart 12: Debt Service as a Percentage of General Fund ExpendituresLGC and Financial Policy MaxSource: Harnett County CAFRs
‐ 50.00 100.00 150.00 200.00 250.00 300.002010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Chart 13: Sales Tax Per Capita in Constant DollarsWarning trend: Revenues per capita are declining. Trend does not apply.Source: Harnett County CAFRs
‐ 50.00 100.00 150.00 200.00 250.002010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Chart 14: Restricted Intergovernmental Revenue Per Capita in Constant DollarsWarning trend: Revenues per capita are declining. Trend DOES APPLY.Source: Harnett County CAFRs
200.00 250.00 300.00 350.00 400.00 450.00 500.00 550.002010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Chart 15: Property Tax Per Capita in Constant DollarsWarning trend: Revenues per capita are declining. Trend DOESapply.Source: Harnett County CAFRs
$0$100$200$300$400$500$600$700$800PropertyTaxesOther Taxes Sales Tax Sales &ServicesIntergovernmentalDebtProceedsOther Misc.Harnett County$495 69 239 435 150 0 45Avg. for Pop. Group$763 61 222 131 168 176 50Per Capita RevenueChart 16: FY 2019 Per Capita Revenue ComparisonFor Counties 100,000+ PopulationData Source: NC State Treasurer
$0$100$200$300$400$500$600$700$800PropertyTaxesOther Taxes Sales Tax Sales &ServicesIntergovernmentalDebtProceedsOther Misc.Harnett County$495 $69 $239 $135 $150 $0 $45Avg. for Pop. Group$763 $61 $222 $97 $168 $176 $50Per Capita RevenueChart 17: FY 2019 Per Capita Revenue Comparison For Counties 100,000+ PopulationWithout UtilitiesData Source: NC State Treasurer
96.00%96.50%97.00%97.50%98.00%98.50%99.00%99.50%100.00%FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020Chart 18: Property Tax Collection PercentageHarnettState Average for PopulationGroupSource: Harnett County CAFRs
.0000.2000.4000.6000.80001.00001.2000Effective Tax RateChart 19: Comparison of Effective Tax Rates‐Surrounding County‐State Average‐Harnett CountySource: NC Department Of RevenueMooreWakeChathamStateAverageHarnettJohnstonLeeCumberlandSampson
80%85%90%95%100%105%110%2014 2015 2016 2017 2018 2019 2020Assessed Value Per PersonChart 20: Harnett County's Historic Sales Assessment RatioWarning Trend:Ratio is above 1.00. Trend does NOT apply.Source: NC Department of Revenue
$0$10,000$20,000$30,000$40,000$50,000$60,000$70,0002009Actual2010Actual2011Actual2012Actual2013Actual2014Actual2015Actual2016Actual2017Actual2018Actual2019Actual2020ActualAssessed Value Per PersonChart 21: Assessed Value Per CapitaSource: Harnett County CAFRWarning Trend:Per capita assessed value is declining. Trend does not apply.According to 2019‐2020 data from the NC Department of Revenue, Harnett ranks 95th out of 100 counties in assessedvalue per capita.
0.00%10.00%20.00%30.00%40.00%50.00%60.00%70.00%80.00%90.00%100.00%Residential Commercial Industrial OtherChart 22: 2020 Real Tax Base Comparison: Harnett v. Benchmarks & State Average ChathamHarnettJohnstonLeeMooreStateSource: NC Department of Revenue
$35,484$0$10,000$20,000$30,000$40,000$50,000$60,0002004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20142015 2016 2017 2018 2019Chart 23: Per Capita IncomeNorth Carolina AverageHarnettSource: U.S. Department of CommerceBureau of Economic Analysis Warning Trend: Per capita income is declining. Trend does NOT apply.According to this survey, Harnett County's per capita income ranks 84th out of 100 counties. At $55,619, Harnett ranks 27th in Median Household income. The state's median income is $57,388. (Source: US Census Small Area Income & Povery Estimates Program).$47,766