HomeMy WebLinkAboutORD-2017-005 Ordinance approving Budget Amendment #6-A for Fiscal Year 2016-17 1
ORD-2017-005
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: February 21, 2017
Action Agenda
Item No. 6-e
SUBJECT: Application for North Carolina Education Lottery Proceeds for Orange County
Schools (OCS) and Contingent Approval of Budget Amendment# 6-A Related
to OCS Capital Project Ordinances
DEPARTMENT: Finance and Administrative Services
ATTACHMENT(S): INFORMATION CONTACT:
Attachment 1. OCS — Lottery Proceeds Paul Laughton, (919) 245-2152
Debt Service Application Gary Donaldson, (919) 245-2453
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 Orange County Schools (OCS), and to approve Budget Amendment
#6-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 Orange County Schools (OCS) is
$636,010. The attached application requests NCDPI to release lottery proceeds in the amount
of $636,010 to cover debt service for projects previously financed for the Orange County School
system.
Budget Amendment #6-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 OCS long-
range capital needs and projects, and amends the budgets for the following OCS capital
projects:
2
Orange County Schools ($636,010):
Technology Plan ($528,216) — Project # 51011 (Funds will be used for technology upgrades district-
wide)
Revenues for this project:
Current FY FY 2016-17 FY 2016-17
2016-17 Amendment Revised
From Other Projects $244,099 $0 $244,099
From General Fund (PAYG) $3,027,313 $528,216 $3,555,529
Total Project Funding $3,271,412 $528,216 $3,799,628
Appropriated for this project:
Current FY FY 2016-17 FY 2016-17
2016-17 Amendment Revised
Technology Plan $3,271,412 $528,216 $3,799,628
Total Costs $3,271,412 $528,216 $3,799,628
Food Services ($107,794) — Project #51033 (Funds will be used for replacement and upgrades to food
service equipment at several elementary schools)
Revenues for this project:
Current FY FY 2016-17 FY 2016-17
2016-17 Amendment Revised
Alternative Financing $145,000 $0 $145,000
From General Fund (PAYG) $193,500 $107,794 $301,294
Total Project Funding $338,500 $107,794 $446,294
Appropriated for this project:
Current FY FY 2016-17 FY 2016-17
2016-17 Amendment Revised
General Renovations $338,500 $107,794 $446,294
Total Costs $338,500 $107,794 $446,294
FINANCIAL IMPACT: The total Lottery Proceeds requested from the NCDPI for Orange
County Schools is $636,010.
SOCIAL JUSTICE IMPACT: There is no Orange County Social Justice Goal associated with
this item.
RECOMMENDATION(S): The Manager recommends that the Board of approve, and authorize
the Chair to sign, the application for North Carolina Education Lottery Proceeds; and approve
Budget Amendment #6-A receiving the Lottery Proceeds and the amended OCS 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: Orange County Schools Title: Chief Financial Officer
Address: P.O. Box 8181, Hillsborough, NC Phone: (919)245-2453
Project Title: FY 2016-17 Debt Service for Orange County Schools
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 related to Orange County Schools' Installment
Financing 2016, COPS Refunding 2015, and Refunding - Series 2015 issuances
Estimated Costs:
Purchase of Land $
Planning and Design Services
New Construction
Additions/ Renovations
Repair
Debt Payment/Bond Payment 636,010.00
TOTAL $ 636,010.00
Estimated Project Beginning Date: 7/1/2016 Est. Project Completion Date: 6/30/2017
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$ 636,010.00 from the Public School
Building Capital Fund (Lottery Distribution). We certify that the project herein described is within the
parameters of G.S. 1150-546.
(Signature—Chair, County Commissioners) (Date)
(Signature—Chair, Board of Education) (Date)
Form Date: July 01,2011