Chatham County commissioners approve 5-year capital plan

Posted Monday, January 7, 2008

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Pittsboro, NC - At its meeting on Jan. 7, the Chatham County Board of Commissioners approved the county's 2009-2013 Capital Improvement Plan (CIP), which funds a wide range of county and school facility needs. The CIP provides a funding plan for all facilities and equipment expected to cost at least $50,000.

The plan funds all of the eligible school projects identified by the Chatham County School System, including some new projects added this year as well as increased costs of projects previously in the plan. School facilities added this year include a new elementary school, expansion of Northwood High and expansion of North Chatham's cafeteria.

The new CIP also funds upgrading the county's water distribution lines and expanding and renovating the county's water treatment plant, which will include a new filtration system requested by the state. "The vast majority of the facility projects included in the plan have resulted from rapid population growth in the county over the past 15 years as well as from state mandates, said George Lucier, chairman of the Chatham County Board of Commissioners.

"While several of the projects have been in our capital improvement plan for a while, such as the new middle and high schools, several will cost substantially more than had been estimated when first proposed," Lucier added. "This means that we had to provide additional funds in the new CIP for these projects."

One example of a county-funded facility with increased construction costs is the new Judicial Building. "Because we expect major growth in court system space needs due to population growth in the county, the project's planners suggested that this facility include shell space for future expansion. It is cheaper to provide this expansion space now than to provide it later," Lucier said.

Other factors that impacted the increased cost of this facility are higher costs of materials and labor, state requirements for court
facilities and requirements for the building to meet new environmental standards. The net result is that a facility originally estimated at $7.5 million in 2005 is now expected to cost $23.9 million, Lucier said. Other facility budgets that had to be increased include the new middle school, which will cost $26.1 million, up from the original estimate of $18.6 million.

New facility projects added to the 2009-2013 Capital Improvement Plan include:

* A new elementary school in the northeast ($28.1 million);
* Replacement of gymnasiums at Bonlee, Bennett and Silk Hope schools ($6 million);
* The expansion of Northwood High School ($5.5 million); and
* Water system distribution line upgrades ($21 million).

The CIP is funded through various county revenue sources, including property taxes and county fees, which are used to leverage borrowed funds for the projects.

The new projects and expanded costs listed above required the county to come up with an additional $84.5 million in funding. "This represents about seven cents on the tax rate to fund these projects, based on long-term loan rates for public projects, according to Lucier.

However, the Board of Commissioners will explore strategies to obtain grants and looks at ways to reduce county expenses, with the goal of lessening the overall impact on property taxes, Lucier said. As part of the budget process, the county staff will use the approved CIP to develop a proposed county budget that would be adopted in June.

Overall, the total estimated costs for all projects in the Capital Improvement Plan for 2009-13 is just over $270 million. Construction of the facilities will begin at various points during the five-year period based on a schedule.

"We sometimes must make adjustments in the CIP, such as project schedules, based on availability of funding or pressing needs," said Renee Paschal, assistant county manager.

"Some federal or state grant funds that have been available to help pay for facilities, such as water system upgrades, have either have been substantially reduced and are harder to get," said Paschal. "This means that the burden usually falls more on county government to find its own funding."

Click here view the complete 2009-2013 Capital Improvement Plan.