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Home My WebLink AboutORD-2017-002 Ordinance approving Budget Amendment #5-A for Fiscal Year 2016-17 1 ORD-2017-002 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: February 7, 2017 Action Agenda Item No. 6-g SUBJECT: Application for North Carolina Education Lottery Proceeds for Chapel Hill — Carrboro City Schools (CHCCS) and Contingent Approval of Budget Amendment#5-A Related to CHCCS Capital Project Ordinances DEPARTMENT: Finance and Administrative Services ATTACHMENT(S): INFORMATION CONTACT: Attachment 1. CHCCS — Lottery Paul Laughton, (919) 245-2152 Proceeds Debt Service Gary Donaldson, (919) 245-2453 Application PURPOSE: To approve an application to the North Carolina Department of Public Instruction (NCDPI) to release proceeds from the NC Education Lottery account related to FY 2016-17 debt service payments for Chapel Hill — Carrboro City Schools (CHCCS), and to approve Budget Amendment #5-A (amended School Capital Project Ordinances), contingent on the NCDPI's approval of the application. BACKGROUND: Both County School Systems have previously presented approved resolutions from their respective Boards requesting that the County modify its Capital Funding Policy by applying accumulated lottery funds to debt service payments, and permitting current year withdrawals of lottery proceeds immediately after the State's quarterly lottery fund allocations. This policy expedites both the application process and the receipt of funds for both school systems. Currently, the accumulated available lottery proceeds for Chapel Hill — Carrboro City Schools (CHCCS) is $197,813. The attached application requests NCDPI to release lottery proceeds in the amount of $197,000 to cover debt service for projects previously financed for the Chapel Hill — Carrboro City School system. CHCCS plans to use the funds at Carrboro High School. Budget Amendment #5-A provides for the receipt of the Lottery Proceeds, contingent on NCDPI's approval of the application, and substitutes the amount of Lottery Proceeds approved for debt service as additional Pay-As-You-Go (PAYGO) funds for FY 2016-17 for CHCCS long- range capital needs and projects, and amends the budgets for the following CHCCS capital projects: 2 Chapel Hill — Carrboro City Schools ($197,000): Mechanical Systems ($197,000) — Project# 54006 Revenues for this project: Current FY FY 2016-17 FY 2016-17 2016-17 Amendment Revised Alternative Financing $264,088 $0 $264,088 Lottery Proceeds $959,247 $0 $959,247 From General Fund (PAYG) $1,819,246 $197,000 $2,016,246 Total Project Funding $3,042,581 $197,000 $3,239,581 Appropriated for this project: Current FY FY 2016-17 FY 2016-17 2016-17 Amendment Revised Equipment $3,042,581 $197,000 $3,239,581 Total Costs $3,042,581 $197,000 $3,239,581 FINANCIAL IMPACT: The total Lottery Proceeds requested from the NCDPI for Chapel Hill- Carrboro City Schools is $197,000. SOCIAL JUSTICE IMPACT: There is no Orange County Social Justice Goal associated with this item. RECOMMENDATION(S): The Manager recommends that the Board approve, and authorize the Chair to sign, the application for North Carolina Education Lottery Proceeds; and approve Budget Amendment #5-A receiving the Lottery Proceeds and the amended CHCCS Capital Project Ordinances, contingent on NCDPI's approval of the application. Attachment 1 3 APPLICATION Approved: PUBLIC SCHOOL BUILDING CAPITAL FUND NORTH CAROLINA EDUCATION LOTTERY Date: County: Orange County Contact Person: Gary Donaldson LEA: Chapel Hill-Carrboro City Schools Title: Chief Financial Officer Address: P.O. Box 8181, Hillsborough, NC Phone: (919)245-2453 Project Title: FY 2016-17 Debt Service (2015 Modification Agreement to Fall 2006 Private Placement) Location: Type of Facility: North Carolina General Statutes, Chapter 18C, provides that a portion of the proceeds of the North Carolina State Lottery Fund be transferred to the Public School Building Capital Fund in accordance with G.S. 115C-546.2. Further, G.S. 115C-546.2(d) has been amended to include the following: (3) No county shall have to provide matching funds... (4)A county may use monies in this Fund to pay for school construction projects in local school administrative units and to retire indebtedness incurred for school construction projects. (5) A county may not use monies in this Fund to pay for school technology needs. As used in this section, "Public School Buildings" shall include only facilities for individual schools that are used for instructional and related purposes, and does not include central administration, maintenance, or other facilities. Applications must be submitted within one year following the date of final payment to the Contractor or Vendor. Short description of Construction Project: Debt Service associated with the 2015 Modification Agreement issued September 2015 from the original Fall 2006 Private Placement for CHCCS (Carrboro High Schocxy Estimated Costs: Purchase of Land $ Planning and Design Services New Construction Additions/ Renovations Repair Debt Payment/Bond Payment 197,000.00 TOTAL $ 197,000.00 Estimated Project Beginning Date: July 2016 Est. Project Completion Date: June 2017 We, the undersigned, agree to submit a statement of state monies expended for this project within 60 days following completion of the project. The County Commissioners and the Board of Education do hereby jointly request approval of the above project, and request release of$ 197,000.00 from the Public School Building Capital Fund (Lottery Distribution). We certify that the project herein described is within the parameters of G.S. 115C-546. (Signature—Chair, County Commissioners) (Date) (Signature—Chair, Board of Education) (Date) Form Date: July 01,2011