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Financial advisers present $524M CIP roadmap; county projects strong reserves and AAA ratings
Summary
Davenport & Company and County Finance Director Chad McClam briefed the board on long‑range capital planning and mid‑year finances: AAA ratings, strong fund balance (~60% currently), a living CIP of roughly $524M in planned projects over five years, and projected FY25–26 revenues above budget.
Davenport & Company and county finance staff presented a financial briefing and draft capital improvement program (CIP) Jan. 20 that outlined the county’s fiscal position and near‑term capital projects.
Davenport adviser Kyle Locks reviewed the county’s AAA credit ratings, a trend of revenues exceeding expenditures over recent years, and a strong fund balance that the county has used strategically for capital planning and to preserve favorable borrowing terms. Locks said the county’s fund balance percentage is “way above” the board’s policy minimum (20%) and that the CIP serves as a living planning document to align capacity and affordability for upcoming borrowing needs. He and county staff emphasized that the fund balance was intentionally robust to support large projects and preserve ratings while allowing some cash to be applied to projects to reduce borrowing costs.
Finance Director Chad McClam reported that the FY25–26 budget of roughly $412.5 million is tracking positively: ad valorem and sales‑tax revenues have come in stronger than conservative budget estimates (sales tax up ~8.3% year‑over‑year in recent distributions) and the county now projects to add approximately $10 million to fund balance by year‑end rather than use the previously budgeted drawdown. McClam said fund balance is projected around 56% at year end, providing flexibility for planned projects and for front‑funding some work while awaiting bond sales.
Advisers and staff reviewed a planning scenario that layered school referendum borrowings and county facility projects over the next five years. Davenport used a planning interest rate of about 5% and concluded the county has capacity under adopted debt policies to absorb the projected program while preserving affordability and credit metrics if the board follows a methodical CIP and debt schedule. Commissioners discussed timing, affordability and the importance of keeping reserves at levels that allow the county to react to opportunities and shocks.
What’s next: Staff will continue to refine the CIP and propose an adoption timeline during the budget process; Davenport recommended adopting a living CIP at budget adoption and updating it annually.
