The Board heard staff presentations on three issues today: Capital Planning and Process; Revising the 1 percent Arts Policy for all public buildings; creating a debt service fund; and how to fund non-profits that provide services less expensively than the County can provide them.
Capital Planning
The Board discussed at a retreat in October 2010, a better approach to making decisions about how to prioritize the list of proposed public buildings. The Board gave tentative approval to a process that would take many factors into account to help the Board decide what to build and what not to build. There also is a new proposal brought to the Board by IBM. Mecklenburg County was selected by IBM to be part of a pilot program involving three communities nationwide. IBM donated a team of top executives to study the issue of Capital Planning in Mecklenburg County. IBM will present its final recommendations to the Board at its next meeting. But the bottom line is that IBM thinks all entities should be included in the decision process as well as the public. That means the City of Charlotte, the County towns, the Library, CMS, CPCC – all those entities should include their capital projects on a master list. IBM sees a better return on investment and a better result for the community if all entities are included. Staff recommends having a one-year list and a five-year plan for buildings and parks.
Debt Diet II
Finance Director Dena Diorio briefed the Board on the current status of the County’s debt and presented ways to deal with the debt we already have. The Board had an extended conversation about taking control of the current debt and making sure the County is prepared to handle future debt more prudently. Diorio led the Board in a discussion about creation of a Debt Service Fund.
- Dedicated revenues go into the fund
- No appropriation of fund balance for debt service
- Funded at 22 cents on the tax rate
- Annual amount available for capital expenditures is known
- Debt issuance is managed based on available capacity
- Capacity is the difference between the debt service budget and 20% of the operating budget
- Continue to reduce outstanding debt
- Accumulate fund balance equal to 2 years other revenue
- Excess fund balance diverts to pay-as-you-go
Funding Outside Agencies
In FY08, the County allocated more than $9 million for funding of non-profits in Mecklenburg County. The amount declined to $3.3 million in FY11. The Manager recommends that selection of non-profits for funding should focus on those agencies that serve the community in areas that reflect the Critical Success Factors he proposed:
- Workforce Development
- High School Graduation
- Prevention
- Sustainability/Environmental Quality
The Board may seek to add other critical community needs to this list. Staff suggests the following process for selecting non-profits:
- Develop Request for Proposals (February)
- Seek Proposals
- RFP Panel Review Assessment
- Manager’s Recommendation
- Board Adoption
The Board received a great deal of information during the conference. Staff will lead them in making specific decisions in the months leading up to the FY12 budget season. Manager Jones says we all have to remember that the County is on a new strategic path for the future and that in terms of funding decisions, the County cannot be all things to all people.
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