1 FY2008 Recommended Capital Budget & FY Capital Improvement Plan June 19, 2007 Board of County Commissioners

2 Presentation Outline  FY2008 Capital Budget Recommendation Summary  Project Prioritization Criteria  Recommended Capital Projects by Category  Capital Project Funding  Next Steps

3 Recommendation Summary by Category Recommended for FY08 Funding Not Recommended For FY08 Funding Government Facilities$ 26,426,000$ 239,753,000 Court Facilities13,865,00034,952,000 Law Enforcement Facilities6,686,0005,025,000 Storm Water80,667,0000 Park & Recreation52,262,000208,125,000 Library Facilities4,259,00045,021,000 Historic Landmarks08,608,000 CPCC46,500,00035,250,000 CMS 616,709,0000 Totals$ 847,374,000$ 577,084,000 Note: Numbers rounded to the nearest $1,000.

4 Recommendation Summary  Recommendation is based on projects requiring funding in FY2008  FY2009 or later projects will be considered in that year  An education facilities bond referendum is recommended for Fall 2007  Funding sources for proposed projects include: Bond referendum Pay-As-You-Go capital funds Certificates of Participation (COPs) 2/3 non-voted bonds, and Storm water fees

5 Project Prioritization Criteria 1. Project Urgency in Order to Continue County Services 2. Risk Mitigation and Service Delivery 3. Submitting Agency Project Planning and Cost Estimating Reliability 4. Contributes to Achievement of 2015 Vision 5. Strategic Impact Issue Alignment

6 Project Cost Escalation  All project costs include cost escalation except where noted.  Submitting agencies were provided with the following cost escalation guidelines: Note: Storm Water used no escalation because 65% of budget is state and federal grants. CPCC used no escalation in years 1 & 2 and 4% for years Year 1-2Year 3-5Year 6-10 FY FY FY %8%4%

7 Recommended Projects by Category

8 Legend  Strategy Rationale Proposed funding source  Projects √ = Recommended — = Deferred X = Not Recommended  Note – Numbers rounded to nearest 1,000

9 Government Facilities - $26,426,000  Strategy 1)Make highest and best use of the County’s land at the Board’s directive. 2)Promote economic development. 3)Fund through Paygo.  Projects √ Human Resources Relocation √ Brooklyn Village Infrastructure √ New Second Ward Park Phase I √ Freedom Mall Renovation Phase I (Planning & Design) √ MWSBE Relocation to Freedom Mall √ Watkins Center New Parking √ County Facilities Master Plan Note: √ = Recommended; — = Deferred; X = Not Recommended.

10 Government Facilities (cont.)  Projects ─ Southeast Health Clinic Relocation ─ Tax Collection and YFS Relocation to Freedom Mall ─Jail Diversion & Crisis Stabilization Center - Phase 1 ─ Former Southeast Health Clinic Renovation ─ Youth & Family Services the County & Courts Office Building ─ Medic Headquarters Facility ─ Freedom Mall Renovation Phase 2 (Hal Marshall Relocation) Note: √ = Recommended; — = Deferred; X = Not Recommended.

11 Court Facilities - $13,865,000  Strategy 1)Utilize space in existing court facilities now that the new Courthouse is open. 2)Fund through Paygo.  Projects √ Public Defender & Guardian Ad Litem Relocation ─ Court Support Agencies Expansion (Juvenile Justice & Victim Assistance) ─ Community Corrections Relocation ─ District Attorney Expansion at Historic Courthouse Phase II Note: √ = Recommended; — = Deferred; X = Not Recommended.

12 Law Enforcement Facilities - $6,686,000  Strategy 1)Postpone consideration of major jail expansion for one year to complete Sheriff Facilities Master Plan. 2)Fund through Paygo.  Projects √ Annex at Jail North √ McDowell Parking Deck (Electrical) ─ Sheriff’s Office Expansion Note: √ = Recommended; — = Deferred; X = Not Recommended.

13 Storm Water - $80,667,000  Strategy 1)Leverage state and federal funds to address flood mitigation, stream stability and water quality of major streams and creeks. 2)Fee funded.  Projects √ Flood Mitigation & Water Quality Improvements Note: √ = Recommended; — = Deferred; X = Not Recommended.

14 Park and Recreation - $52,262,000  Strategy 1)Postpone consideration of major Park & Recreation capital projects until new Master Plan is complete. 2)Fund only critical projects in FY )Fund through a land bond referendum, 2/3 bonds & PAYGO.  Projects √ Park Land/Watershed/Nature Preserve Acquisition √ Little Sugar Creek Greenway Construction ─ New Development (First Ward Neighborhood Park, Greenway Construction, Evergreen Nature Preserve, District Park Development) ─ Facility Improvements (McDowell Campground Restrooms, Greenville & Sugar Creek Rec. Centers) Note: √ = Recommended; — = Deferred; X = Not Recommended.

15 Library Facilities - $4,259,000  Strategy 1)Fund only critical projects in FY )Fund through COPs.  Projects √ Beatties Ford Road Reconfiguration √ Land Acquisition for Future Southwest Regional Library ─New Construction - Highland Creek Branch Library ─New Construction - Ballantyne Branch Library ─New South West Regional Library Construction ─ Reconfiguration Projects at Plaza Midwood, Independence, Mint Hill, & North County Note: √ = Recommended; — = Deferred; X = Not Recommended.

16 Historic Landmarks - $0  Strategy 1)HLC has a revolving fund and proceeds from projects currently being sold will help build up the fund balance. 2)Fund requested projects through the revolving fund and not through the capital budget.  Projects X Main Streets in Pineville, Huntersville, Matthews, and Davidson X Arthur Grier House X Thrift P&N Railroad Station, Monroe Road Pure Oil Station X Torrence Lytle School X Li’l Diner Note: √ = Recommended; — = Deferred; X = Not Recommended.

17 CPCC - $46,500,000  Strategy 1)Fund only critical capital projects and defer others. CPCC should submit reserve projects in the FY09 capital reserve process. 2)Fund through a CPCC bond referendum ($25.0M), COPs ($21.0M) & PAYGO ($500,000).  Projects √ Campus Parking Deck √ Van Every Building Replacement √ Technology Infrastructure ─ Land Acquisition for Future CPCC Campus ─ GED and Adult High School Center, Citizens Center Renovation, Advanced Technology Center Renovation X Renovations & Capital Upfits of Existing Facilities Note: √ = Recommended; — = Deferred; X = Not Recommended.

18 CMS - $616,709,000  Strategy 1)Based recommendation on the Board of Education’s approved CIP request. 2)Include land acquisition costs associated with projects. 3)Fund through a CMS bond referendum.  Recommend funding entire CMS Request - 54 Projects totaling $616,708,598 in escalated dollars, including $30M for land acquisition.  See CMS Tab for details.

19 CMS Request Details Type of Project Number of Projects Cost (Unescalated) Percent of Total Cost Growth21$ 332,718, % Renovations29$ 162,317, % Mandates/Initiatives6$ 15,688, % Land Acquisition1$ 30,000, % Cost EscalationN/A$ 75,983, % Type of School Number of New Schools Number of New Classrooms per New School Total Number of New Classrooms Elementary Middle High Pre-K22550

20 Funding Summary

21 Five Key Funding Strategies 1.Meet legal mandates for facilities. 2.Emphasize health and safety considerations for employee and customer safety. 3.Ensure critical space needs of County departments are met. 4.Land needs for specific projects should be included in the project costs. 5.Projects not proposing the use of FY08 funding were deferred to the FY09 capital budget year.

22 Capital Funding Summary Project CategoryPAYGOCOPsReferendum*2/3 BondsFees Gov't Facilities$ 26,425,885 Court Facilities13,865,000 Law Enforcement Facilities6,686,000 Storm Water $ 80,667,320 Park & Recreation6,271,584 $ 33,990,000$ 12,000,000 Library Facilities $ 2,608,7821,650,000 Historic Landmarks Central-Piedmont Community College500,00021,000,00025,000,000 Charlotte- Mecklenburg Schools 616,708,598 Totals$ 53,748,469$ 23,608,782$ 677,348,598$ 12,000,000$ 80,667,320 * There are 3 different bond referendums being recommended: CMS, CPCC & Land. Red = CMS, Blue = CPCC, Green = Land.

23 A Look Ahead – Potential FY09 Projects  Government Facilities Freedom Mall Renovation Phase II $67,000,000 Medic Headquarters Facility $57,000,000  Law Enforcement Jail Expansion$150,000,000  Public Library New Construction, Reconfiguration Projects$50,000,000  Park & Recreation Land Acquisition, Park Development &$200,000,000 Facility Improvements  Central Piedmont Community College New Facilities$35,000,000  Potential FY09 Costs $559,000,000

24 Board Options  Accept County Manager’s Recommendation or Add/Delete Projects  Change Funding Source for Projects  Consequences to every choice Deferred capital needs Impact on future debt service costs

25 Next Steps  Adopt a Capital Budget Number of Projects Funding Sources  Recognize need for Board discussion in a workshop setting Set up Capital Budget Workshops in July Board Meeting is July 10 th  August 2 nd : Deadline for: Deciding to have referendum Set an amount (can still be reduced, but not increased after this date)  September 5 th : Last day bond order can be adopted for referendum

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27 Thank You  Citizens’ Capital Budget Advisory Committee  Finance Department  Real Estate Services  Departmental Staff  Strategic Organizational Improvement Staff