HomeMy WebLinkAboutAgenda - 11-16-2010 - 7aORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: November 16, 2010
Action Agenda
Item No. 7 - Q
SUBJECT: Orange County Schools Board of Education Resolution Regarding the County's
Capital Funding Policy and the Use of Lottery Funds
DEPARTMENT: Financial Services PUBLIC HEARING: (Y!N) No
ATTACHMENT(S):
Orange County Schools Board of
Education Resolution
INFORMATION CONTACT:
Frank Clifton, County Manager, 919-245-
2306
Clarence Grier, Financial Services
Director, 919-245-2453
Patrick Rhodes, Superintendent, Orange
County Schools, 919-732-8126
PURPOSE: To consider approving a request from the Orange County Schools Board of
Education to dedicate Lottery proceeds to repay debt service and substitute general fund
revenues for Fiscal Year 2010-11 approved capital projects in order to expedite the process of
requesting lottery proceeds from the State and the contracting of approved capital projects.
BACKGROUND: On November 1, 2010, the Orange County Schools Board of Education
(Board of Education) approved a resolution requesting that the County modify its Capital
Funding Policy by a) applying accumulated lottery funds for debt service payments, provided an
equal amount of funding is transferred to the district's FY 2010-11 Gapital Investment Plan, and
b) permitting current year withdrawals immediately after the State's quarterly lottery fund
deposit.
Orange County's Capital Funding Policy requires Lottery Funds to be budgeted a year in
arrears. This funding policy has provided the district with a balance in Lottery Funds of
approximately $895,575. The Board of Education requests the County apply for the $895,575
Lottery Fund balance to be used for debt payments and provide an equal funding amount to the
district's Capital Investment Plan as additional Pay-as-You-Go funds. Immediate access to
Lottery Funds will allow the Board of Education to draw down the Lottery Funds sooner and
address capital project needs by providing the ability to start projects quickly. The Board of
County Commissioners is reviewing the requested changes in the Capital Funding Policy.
On October 5, 2010, the Board of County Commissioners approved the Chapel Hill - Carrboro
City Schools Board of Education request to modify the school system's Capital Investment Plan
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for FY 2010-11 and the process to apply for available lottery proceeds to be used for debt
service substituting general fund revenues for FY 2010-11 approved capital projects.
FINANCIAL IMPACT: There is not a financial impact to the County. The financial impact is
limited to the district level. Both Boards of Education will have immediate access to their
allocated Lottery Funds to address their capital needs and projects.
RECOMMENDATION(S): The Manager recommends the Board approve the request from the
Orange County Schools Board of Education to dedicate Lottery proceeds to pay debt service
and substitute general fund revenues for FY 2010-11 approved capital projects.
Orange County Board of Education
Resolution to Amend the Orange County Capital Improvement Plan Funding
. Policy
WHEREAS, The Orange County Government is considering an amendment to its capital improvement
plan funding policy for the 2010-2011 fiscal year;
BE 1T, THEREFORE, RESOLVED, the Orange County Board of Education requests the County to
modify its Capital Funding Policy by (a) applying to use accumulated lottery funds for debt service
payments provided an equal amount of funding is transferred to the district's 2010-2011 CIP and (b)
permitting current year withdrawals immediately after the state's quarterly lottery fund deposit.
This the 1~ day of November, 2010.
~A `
r/ ~
Tony McKnight, Chair
Orange County Board of Education
' l~~
G. Patrick Rhodes
Secretary to the Board of Education
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