1 FY2008 Capital Budget Workshop July 10, 2007 Board of County Commissioners

2 Overview for Today  Goals for Workshop  Process to Get to Goal  Things to Consider  Scenario Implications

3 Goals for Workshop  Decide capital projects to be initiated in FY2008  Determine funding amounts and sources for FY2008 capital projects Decide if you want a referendum Adopt a FY2008 Capital Budget as part of the public meeting  At minimum, need to set a maximum amount for bonds to put before voters

4 Process to Get to Goal  Presentation Process Information to help decision-making  Discussion  Capital straw voting (if needed)

5 Things to Consider  In FY2007, Board adopted an annual capital budgeting process  Determine FY2008 capital budget knowing that there will be future referendums  Discussion isn’t just around FY2008 dollar amounts, but also the debt management guidelines we use to balance needs with affordability

6 Overview of Proposed Financing Scenario 1 - $718 MScenario 2 - $587 M COPs Library Facilities $ 2,610,000 CPCC 21,000,000 23,610,000 Bonds - Referendum Land 35,640,000 CPCC 30,000,000 Schools 617,000, ,000, ,640, ,640,000 Two-Thirds Bonds Park & Recreation 12,000,000 Total Debt Financing $ 718,250,000 $ 587,250,000

7 Estimated Impact on Debt Statistics Scenario 1 - $718 millionPolicy TargetsFY07FY08FY09FY10FY11FY12 Debt as a % of Assessed Value3.3% - 4.0%2.34%2.49%2.60%2.56%2.34%2.09% Debt Per Capita$3,500 - $3,600 $ 2,418 $ 2,578 $ 2,692 $ 2,650 $ 2,425 $ 2,167 Debt Service as a % of Operating Budget14% - 16%17.3%17.6%18.9%19.8%18.3%18.4% Scenario 2 - $587 millionPolicy TargetsFY07FY08FY09FY10FY11FY12 Debt as a % of Assessed Value3.3% - 4.0%2.34%2.46%2.53%2.40%2.20%1.94% Debt Per Capita$3,500 - $3,600 $ 2,418 $ 2,544 $ 2,617 $ 2,487 $ 2,262 $ 2,010 Debt Service as a % of Operating Budget14% - 16%17.3%17.6%18.7%19.4%18.0%17.7% Assumptions: Assessed valuation projected to increase 3% annually. Population projected to increase 3% annually. Operating budget projected to increase 5% annually.

8 Proposed Bond Sales Scenario 1 - $718 millionFY08*FY09**FY10***FY11FY12 Schools $ 247,100,000 $ 286,165,000 $ 177,000,000 $ 54,000,000 $ 12,000,000 Other CIP 108,110,000 59,000,000 45,500,000 5,000,000 - Total $ 355,210,000 $ 345,165,000 $ 222,500,000 $ 59,000,000 $ 12,000,000 Scenario 2 - $587 millionFY08*FY09**FY10***FY11FY12 Schools $ 217,100,000 $ 255,165,000 $ 100,000,000 $ 74,000,000 $ - Other CIP 108,110,000 59,000,000 45,500,000 5,000,000 - Total $ 325,210,000 $ 314,165,000 $ 145,500,000 $ 79,000,000 $ - * FY08 Sales includes authorized & unissued of $190.2 million (Schools: $124.1 million / Other: $66.1 million) ** FY09 Sale includes authorized & unissued of $61.2 million (Schools: $35.2 million / Other: $26 million) *** FY10 Sale includes authorized & unissued of $23.5 million (Other: $23.5 million)

9 Estimated Debt Service &Tax Rate Impact Scenario 1 - $718 millionFY09FY10FY11FY12 Total Debt Service (estimated) $ 275,268,221 $ 303,352,558 $ 313,852,222 $ 311,009,102 Other revenue sources (estimated)(54,624,808)(56,371,343)(58,215,771)(60,162,453) Net Estimated Debt Service Funded by Property Tax $ 220,643,413 $ 246,981,215 $ 255,636,451 $ 250,846,649 Portion of Property Tax Rate Needed to Support Debt Service (cents) Scenario 2 - $587 millionFY09FY10FY11FY12 Total Debt Service (estimated) $ 272,268,221 $ 297,327,558 $ 300,279,722 $ 299,781,602 Other revenue sources (estimated)(54,624,808)(56,371,343)(58,215,771)(60,162,453) Net Estimated Debt Service Funded by Property Tax $ 217,643,413 $ 240,956,215 $ 242,063,951 $ 239,619,149 Portion of Property Tax Rate Needed to Support Debt Service (cents) Difference (cents) Total difference over 4 years = 3.41 cents.

10 Capital Budget Spreadsheet  Tool to think through options  Use as a guide to making decisions similar to the Operating Budget Straw Vote Worksheet (if needed)