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Mecklenburg County administrators this week are expected to roll out their recommendations on how to spend money on construction projects during the next four years.
County commissioners agreed several months ago to limit the amount of money borrowed for projects like schools, libraries, parks and a new jail to help protect its coveted triple-A bond rating. But the board hasn't yet decided how to split that pool of money.
The county has about $1.1 billion worth of projects that have been approved, but for which no money has been borrowed.
Current revenue estimates show the county could afford to spend a little more than $1 billion on construction during the next four years, with more than 95 percent of it coming from bonds that will be repaid in later years. Borrowing more than that could potentially put the county out of compliance with its debt policy.
Staff will offer their ideas on how to spend the available money at a Tuesday workshop. A board vote could come as soon as next month.
The decision will help shape how quickly the county moves ahead with dozens of projects that voters have approved in past bond packages, as well as other new facilities or renovations pitched in recent years. Many of the projects already have been delayed by a year or two.
And with many agencies starting to rethinking their long-range construction needs, the board vote also could influence when they seek money for additional projects in the future.
As expected, the 2010-11 budget year could be the most challenging of the next four. The county plans to borrow only $150 million in bonds that year.
But about $220 million has been requested, including money to start work on a new jail as well as projects for Charlotte-Mecklenburg Schools, Central Piedmont Community College and the county park system, according to a spreadsheet given to commissioners last month.
The library also has requested money, but those facilities and about five other projects will be funded through the county's pay-as-you-go fund.
Finance Director Dena Diorio said the county will be able to give all the agencies some money next year, though she's not sure if they'll get everything they've asked for.
Commissioners Chair Jennifer Roberts said there may be some breathing room because less money may be needed initially for the jail. County staff previously said they may need $80 million to start building the detention center next year. But Roberts said she heard recently the county may now need only $50 million in the first year, which could free up money to pay to begin other projects.
Looking beyond next year, the county appears to have more flexibility. Commissioners agreed to borrow no more than $253 million in each of the 2011-12 through 2013-14 budget years, and the agency requests so far come in below that target.
Among the unknowns, however, is when county park officials hope to pay for the $250 million in projects approved by voters last year. All of that money doesn't show up in the spreadsheet given to commissioners.
In addition, it's possible agencies will ask for money to start additional projects. CMS, CPCC and the library system all are updating their 10-year construction plans.
A 2007 plan from CMS called for $2.4 billion in projects in the next decade. Guy Chamberlain, an associate superintendent, doesn't believe there will be any substantial revisions to the plan, though he said the number of new schools needed may change because enrollment growth has tempered.
Commissioner Bill James has long said he wished CMS had updated the plan before commissioners vote on how to spread the bond money over the next few years.
Meanwhile, CPCC's current 10-year-plan calls for $607 million worth of projects. Executive president Kathy Drumm said she doesn't anticipate the school taking any projects off the list, and said the upcoming decision by commissioners will help the college better understand when it can start work on those facilities.
Tuesday's commissioners meeting is set for 3 p.m. in room 267 of the government center, 600 E. Fourth St.
