Macon County staff present department‑requested five‑year capital improvement plan; financing depends on grant outcomes and board priorities

County finance staff and consultants presented a department‑requested five‑year capital improvement plan to the Macon County Board of Commissioners on March 11, outlining project requests, identified outside funding and two scenarios that differ based on whether the county secures a state capital grant for a proposed East Franklin elementary school.

Presenter Mitch told the board the county currently has strong credit ratings (Moody’s and S&P double‑A range) and that those ratings, combined with a multi‑year approach to pay‑go funding and targeted transfers, created room to borrow for major projects. “This is maybe more of a kickoff to the process than the end of the process,” Mitch said, framing the items presented as department requests rather than a recommended plan.

Highlights

- Total department requests: roughly $89.8 million gross over five years; identified outside funding of about $12.4 million leaves a net county exposure near $77 million if all projects are funded as requested.

- Largest single request: a proposed new East Franklin Elementary estimated at $36.2 million. Staff noted the county may reapply for a state school capital grant but labeled additional grant funding as “TBD.”

- Funding mix presented: approximately 50% debt financing, about 20% county pay‑as‑you‑go (cash), and roughly 30% grant or outside funding in the scenario where the grant is awarded.

- If the school grant is not awarded, staff showed a higher‑debt scenario (roughly $72 million of new debt in the plan) and estimated an equivalent tax‑rate impact measured in pennies: roughly the equivalent of 3 pennies (with grant) rising to about 5.5–6 pennies (without grant) spread over fiscal years 2028–2029 under the department‑requested timing.

- Staff stressed the board’s financial policies remain in compliance under both scenarios but said affordability would be tighter in early years as the county draws on a planned transfer of reserves (previously approved $20 million transfer to capital), which will be reflected in the next audit.

What the board was asked to do

Staff asked commissioners to provide policy direction on prioritization, timing and whether to pursue additional grant applications. The presentation included an appendix of department requests and asked the board to consider options such as accelerating revenue set‑asides to reduce later tax‑rate pressure.

Next steps

Staff will refine the CIP based on commissioner feedback, model additional scenarios and return with recommended prioritization and affordability analyses as budget work progresses.

Provenance: presentation and Q&A during March 11 meeting; staff provided detailed appendix of department requests.

Sources: capital plan slide deck and presentation to the Macon County Board of Commissioners.