HomeMy WebLinkAboutAgenda - 05-16-2006-5lORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: May 16, 2006
Action Agenda
Item No. 5 - ~
SUBJECT: Application for State Public School Building Capital Funds
DEPARTMENT: Budget PUBLIC HEARING: (Y/N) No
ATTACHMENT (S):
Application for Public School Building
Capital Funds
INFORMATION CONTACT:
Donna Dean Coffey, Budget Director
245-2151
PURPOSE: To approve an application to the North Carolina Department of Public Instruction to
release funds from Orange County's Public School Building Capital Fund account.
BACKGROUND: In 1987, the North Carolina General Assembly established the Public School
Building capital Fund (PSBCF) to assist county governments in meeting their public school
capital needs. The State uses a portion of its corporate income tax receipts (including interest
earned) to fund the PSBCF. Monies from the fund are allocated to counties on a per average
daily membership (ADM) basis. Counties can use these funds to offset capital costs in three
major areas:
New school construction projects (including the purchase of land) and
repairing/renovating older facilities;
Implementation of local school technology projects;
Repayment of school related debt service.
Since the creation of this fund by the State, Orange County has used its allocation to cover a
portion of the renovation costs at Ephesus Elementary, Chapel Hill High, Stanford Middle and
Hillsborough Elementary schools, More recently, the County has used these funds to pay a
portion of the debt service associated with various school projects that are debt financed.
As of April 27, 2006, $1,014,973 has accumulated in Orange County's PSBFC account since
the last draw dawn of funds in June 2005, It is important to note that this amount does not
include additional monies anticipated from April and May interest earnings and May's quarterly
distribution of corporate income taxes. Staff plans to request that the State reimburse all of the
funds ($1,014,973 plus April and May allocations) to Orange County.
Given the history of the State holding these funds in prior years along with uncertainty of the
State's current and future fiscal condition, staff recommends that the Board pursue the draw
down of these funds as quickly as possible to ensure that the County receives its
reimbursement prior to the end of our fiscal year on June 30, 2006.
The attached applications request that the State release all available funds for Orange County
to offset debt service related to McDougle and Scruggs Elementary Schools. The Chapel Hill-
Carrboro City Schools Board of Education must also approve this application, which is docketed
for action at the Board of Education's May 18, 2006 meeting.
These funds do not represent additional, unanticipated funds for the Capital Investment Plan
(CIP). Staff has programmed these funds as a revenue source into the pay-as-you-go funding
allocations to the two school systems under the Countyy's present ten-year capital plan.
FINANCIAL IMPACT: Consistent with the County's current Capital Funding Policy, these
PSBCF monies are one source of funding for the ten-year Capital Investment Plan (CIP). Staff
has included the funds in the CIP revenue estimates and there is no additional financial impact
anticipated. During the previous two fiscal years, Orange County's action to draw down all
available PSBCF monies by the end of the fiscal year has protected the funds from any
sequestering by the State and has enhanced the County's comparative year end fund balance
position.
RECOMMENDATION(S): The Manager recommends that the Board of County Commissioners
approve, and authorize the Chair to sign, the application for Public School Building Capital
Funds, for the Chapel Hill-Carrboro-City Schools' share of the remaining debt service payment
related to construction of McDougle and Scruggs Elementary Schools.
APPLICATION Approved:
PUBLIC SCHOOL BUILDING CAPITAL FUND Date:
County: Orange Contact: Donna Dean
Address: Post Office Box 8781 Hillsborough NC 27278 Title: Budget Director
School Admin Unit: Chaoel Hill-Carrboro City Schools Phone: (919) 245-2151
Project Title: 2005-06 Debt Service - McDougle Elementary
Location:
Type of Facility
G,S, 115C - 546.2(b) "Counties shall use monies in the Fund for capital outlay projects including the planning,
construction, reconstruction, enlargement, improvement, repair, or renovation of public school buildings and for the
purchase of land for public school buildings; for equipment to implement a local school technology plan that is approved
pursuant to G,S. 115C•102,6C; or for both. Monies used to implement a Iocai school technology plan shall be transferred
to the State School Technology Fund and allocated by that Fund to the Iocai school administrative unit for equipment. As
used in this section, "public school buildings" only includes facilities for individual schools that are used for instructional
and related purposes and does not include centralized administration, maintenance, or other facilities."
2005 private placement financing funded the following projects for the
Short Description of Construction Project: Chapel Hili Carrboro City School District:
Project Debt Amount
Construction of McDougle Elementary School 7,064,230
Estimated Costs: State Local Total
Purchase of Land
Planning
Construction
Renovation
Enlargement
Repair
SchooiTechnology
FY 2005.06 Debt $666.822 $222 274 $689.096
Service Payment
Total $666,822 $222,274 $889,096
Bid DatesNendors
Contracts Signed/Dates
Estimated date of beginning of construction
Estimated date of completion
Match: The matching funds of one dollar of local funds for every three dollars of state funds are from
(source): oropertv tax
$222,274 of the matching funds have been expended for/date/description:
Date Purpose
07/15/2006 Debt Service
01/15/2006 Debt Service
Reporting We, the undersigned, agree to submit a statement of statellocal amounts expended for this project
requirements: within 60 days of 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 $666.822 from the Public School Building Capital Fund. We certify that the project herein described is
within the parameters of 115C-546.2(b) and that all of the match is available and designated as match of this project,
Signature -Chair, County Commissioners
Date
Signature -Chair, Board of Education Date
APPLICATION Approved:
PUBLIC SCHOOL BUILDING CAPITAL FUND Date:
County: Orange Contact: Donna Dean
Address: Post Office Box 8181 Hiilsborou h NC 27278 Title: Budget Director
School Admin Unit: Chapel Hill-Carrboro Citv Schools Phone: {0191 245-2151
Project Title: 2005-06 Debt Service - Scroggs Elementary
Location:
Type of Facility:
G.S. 115C - 546.2(b) "Counties shall use monies in the Fund for capital outlay projects including the planning,
construction, reconstruction, enlargement, improvement, repair, or renovation of public school buildings and for the
purchase of land for public school buildings; for equipment to implement a local school technology plan that is approved
pursuant to G.S. 115C-102,6G; or for both, Monies used to implement a local school technology plan shall be transferred
to the State School Technology Fund and allocated by that Fund to the local school administrative unit for equipment. As
used in this section, "public school buildings" only includes facllities for individual schools that are used for instructional
and related purposes and does not include centralized administration, maintenance, or other facilities,"
Short Description of Construction Project: 2005 private placement fnancing funded the following projects for the
Chapel Hiil-Carrboro City School District:
Project Debt Amount
Construction of Scroggs Elementary School 14,000,000
Estimated Costs:
Purchase of Land
Planning
Construction
Renovation
Enlargement
Repair
School Technology
FY 2005.06 Debt
Service Payment
Total
State Local Total
998 598 $332.866 1 331 463
$998,598 $332,866 $1,331,463
Bid DatesNendors
Contracts Signed/Dates
Estimated date of beginning of construction
Estimated date of completion
Match: The matching funds of one dollar of local funds for every three dollars of state funds are from
(source): property tax
$332,866 of the matching funds have been expended for/date/description:
Date Pur ose
12/01/2005 Debt Service
02/01/2006 Debt Service
Reporting We, the undersigned, agree to submit a statement of state/local amounts expended for this project
requirements: within 60 days of 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 998 598 from the Public School Building Capital Fund. We certify that the project herein described is
within the parameters of 115C-546,2(b) and that all of the match is available and designated as match of this project.
Signature -Chair, County Commissioners Date
Signature -Chair, Board of Education Date