Commissioners Approve Three-Story Courthouse Addition, Shift ARPA Spending to Emergency Services

Alamance County commissioners approved a plan on Aug. 19 to build a three-story addition to the JB Allen courthouse complex and directed staff to move forward with a financing strategy that combines existing revenue-replacement funds, capital reserves and installment financing.

County staff presented two conceptual design options: a two-story addition estimated at $28 million and a three-story design estimated at $37 million. Staff said $10 million in revenue-replacement funds already are set aside for courthouse expansion and recommended financing the balance. Early financing estimates presented to the board suggested a 20-year term and an approximate tax-rate impact in the second budget year if financing were required; finance staff estimated a rough tax impact of about 1.09¢ for the larger option if some capital reserves are not used.

After extended debate about future needs, timing and cost, a commissioner moved (and later amended) to proceed with the three-story addition, apply $10,000,000 of revenue-replacement funds, apply $5,000,000 in capital reserves to reduce financing needs, and finance the remaining balance over a 20-year term. The motion passed on a voice vote, 4-1, with one commissioner recorded as opposed.

Separately, county staff briefed the board on options to obligate the roughly $9.4 million in unobligated American Rescue Plan Act (ARPA) funds before the Treasury deadline. Staff presented three choices: (1) purchase/commit to the Behavioral Health center (needs additional non-ARPA funding and a later purchase date), (2) buy ready-to-purchase emergency-services infrastructure including mobile-radio replacement and generators, and (3) supplant prior eligible purchases (remounts, ambulances and EMS operating costs) to free up general-fund capacity. The board voted to adopt Option 3, the supplanting/reimbursement route, which staff said is the fastest way to obligate the remaining ARPA funds and will free county general funds for other capital needs.

Commissioners also discussed project delivery methods for an emergency services renovation and the merits of a construction-manager-at-risk approach for high-technical projects; no final selection on delivery method occurred at this meeting.

The courthouse decision directs staff to pursue design and financing steps; staff said the financing plan would be further developed with bids and architect estimates before the county incurs long-term debt or seeks to levy any tax increases.