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Six months after Mecklenburg County commissioners agreed to limit their borrowing, the board will soon decide which planned projects they can afford to build.
At stake are dozens of construction projects that have been in the works for years, the majority of which were approved by voters through bond referendums.
This much is clear: the county won't be able to build everything as quickly as some might like.
For example, commissioners say they'll borrow no more than $150 million next year, less than half of the new debt taken on two years ago. Nearly all of next year's allocation could be tied up by helping to pay for a new jail and covering up to $52 million in school construction bonds made available through the federal stimulus package.
Still, some commissioners say it's too early to know exactly how they'll allocate the available money among new or renovated schools, parks, libraries, a jail and other county projects. They'll start that debate in October.
The challenge, they say, is figuring out a way to stay within their limits while not getting too far behind on needed or much-desired facilities.
“There will be some tough choices,” said Commissioner Dan Murrey. “ It's going to be a matter of pushing out the timeline a lot farther than we had previously planned.”
Commissioners agreed this spring to cap their construction borrowing until at least 2014, one of several steps taken to help get county debt levels under control.
The limited-debt plan calls for borrowing no more than $150 million during the 2010-11 budget year, and a maximum of $253 million in each of the next three years. County staff has said exceeding those limits could put the county out of compliance with its debt policy. It could also lead to a downgrade from bond rating agencies.
Besides the bonds, the county will use cash from its pay-as-you-go fund to cover other projects.
The county has about $1 billion in construction projects it has approved but not funded.
The county staff will offer some recommendations next month on how to spread the money.
One of the needs became clearer last week after commissioners decided to move ahead with plans for a new $220-$240 million jail.
Some county leaders want parts of the detention center to open as soon as 2014, and said they'll likely need $180 million over the next two years to help stay on that schedule.
It's possible commissioners may try to slow the project, and commit less money in those early years.
Murrey, one of two commissioners to vote against proceeding with the jail project last Tuesday, said he wanted the board to hold off on voting on the jail until it could consider the other construction needs across the county.
Besides the jail, the next category of projects sure to generate much discussions are those for Charlotte-Mecklenburg Schools.
CMS generally receives the largest share of bond money in any given year.
Commissioners say providing adequate money for the district is important, but borrowing cutbacks mean CMS will have to delay many of its projects. Dumont Clarke said at last week's commissioners meeting that paying for the jail will mean the county can't build school projects as quickly as they'd originally planned.
Commissioner Bill James said he believes CMS must redo its capital plan for the next decade, but said he's irritated that it hasn't happened yet.
He said he thinks commissioners ought to know the impact of what less money will mean for the school system and other agencies that receive construction money before finalizing the debt plan.
Chairman Jennifer Roberts said she hopes to bring leaders from CMS, Central Piedmont Community College, parks and the library system together this month to hear their needs.
Roberts said she knows she and her colleagues will have a lot to juggle.
“I know a lot of people are going to be unhappy,” Roberts said. “…(But) this is the time to focus on it and hopefully we'll get to work something out that the public will appreciate as meeting the most pressing needs first.”
