By Susan Dickson
Staff Writer
The Orange County Board of Commissioners voted unanimously on Tuesday to establish a capital reserve fund for future county projects, but hesitated on closing out capital projects that have had limited activity in order to use those funds for other projects.
The reserve fund would allow the county to allocate funding for individual projects when needed. The county already has a capital reserve fund for schools projects.
Commissioners said they needed more information on some of the active capital projects before reallocating their funding. They did vote 6-1 to close out projects that have either been completed or never had any activity. Commissioner Alice Gordon cast the dissenting vote, saying she would like more information about all of the projects before closing them.
Remaining funding for closed projects – about $245,000 for 26 projects – will be transferred to the county capital project fund and reallocated. Projects have to be officially closed in order to reallocate funding, and in the past the county has rarely closed completed projects.
Board members chose to delay closing out projects that have had limited activity. Capital projects include those established to construct or acquire a capital asset as well as those acting as a reserve to fund other projects.
“Before we reallocate these funds to another capital project, I would like to have the opportunity to visit what these activities were and why they were funded so that we can put things into a context,†Commissioner Barry Jacobs said.
The projects board members delayed closing involve the historic courthouse, the Dickson House, parks operations, animal services deconstruction, the Cates property, the New Hope Creek Preserve, emergency power, solid-waste collection centers, parking lot repairs, capital repairs reserve, facilities-art reserve and the library task force. About $740,000 remains allocated for these projects.
County Manager Frank Clifton said the county is paying interest on bond funds allocated for certain projects and the county would be better served to reallocate those funds to pay down debt on other projects.
“It just doesn’t make financial sense,†he said. “The reality of it is, we’ve got several bond funds like that … but at the same time, we’re drawing down the general fund, taxing the public or using general-fund revenues to pay the tax and interest.â€
County finance director Clarence Grier said the county should have been reviewing projects and reallocating funding every year.
“This is the cumulative effect of that process not happening,†he said.
County staff said they would return to the board with more information regarding limited activity projects.