HomeMy WebLinkAboutORD-2017-018 Ordinance approving Budget Amendment #1-A for Fiscal Year 2017-18 1
0RD-201 7-01 s
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: September 5, 2017
Action Agenda
Item No. 8-j
SUBJECT: Application for North Carolina Education Lottery Proceeds for Chapel Hill —
Carrboro City Schools (CHCCS) and Contingent Approval of Budget
Amendment #1-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 2017-18
debt service payments for Chapel Hill — Carrboro City Schools (CHCCS), and to approve
Budget Amendment #1-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 $196,852. The attached application requests NCDPI to release lottery proceeds in
the amount of $196,500 to cover debt service for projects previously financed for the Chapel Hill
— Carrboro City School system.
Budget Amendment #1-A provides for the receipt of the Lottery Proceeds, contingent on
NCDPI's approval of the application, and substitutes the amount of Lottery Proceeds approved
for debt service as additional Pay-As-You-Go (PAYGO) funds for FY 2017-18 for CHCCS long-
range capital needs and projects, and amends the budgets for the following CHCCS capital
projects:
2
Chapel Hill — Carrboro City Schools ($'196,500):
Abatement Projects ($'160,000) — Project # 54001 (Funds will be used to go towards funding
the Phillips Middle School abatement project)
Revenues for this project:
Current FY FY 2017-18 FY 2017-18
2017-18 Amendment Revised
From General Fund (PAYG) $530,080 $160,000 $690,080
Total Project Funding $530,080 $160,000 $690,080
Appropriated for this project:
Current FY FY 2017-18 FY 2017-18
2017-18 Amendment Revised
Abatement $530,080 $160,000 $690,080
Total Costs $530,080 $160,000 $690,080
Mechanical Systems ($36,500) — Project # 54006 (Funds will be applied to supplement the
McDougle Campus chiller replacement project)
Revenues for this project:
Current FY FY 2017-18 FY 2017-18
2017-18 Amendment Revised
Alternative Financing $264,088 $0 $264,088
Lottery Proceeds $959,247 $0 $959,247
Two-Thirds Debt Financing $177,715 $0 $177,715
From General Fund (PAYG) $2,101,344 $36,500 $2,1 37,844
Total Project Funding $3,502,394 $36,500 $3,538,894
Appropriated for this project:
Current FY FY 2017-18 FY 2017-18
2017-18 Amendment Revised
Mechanical Systems $3,502,394 $36,500 $3,538,894
Total Costs $3,502,394 $36,500 $3,538,894
Note: The Current FY 2017-18 Budgets represent the cumulative budgeted funds for abatement
projects and mechanical systems in the Chapel Hill-Carrboro City Schools district since 2009, which is
the last time completed abatement and mechanical system projects were closed out. Staff plans to
bring recommendations to the Board of County Commissioners in fall 2017 for closing out completed
school and county capital projects.
FINANCIAL IMPACT: The total Lottery Proceeds requested from the NCDPI for Chapel Hill-
Carrboro City Schools is $196,500.
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 #1-A receiving the Lottery Proceeds and the amended CHCCS Capital
Project Ordinances, contingent on NCDPI's approval of the application.
Attachment ' 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,2017-18 Debt Service (Installment Financing 2014)
Location:
Type of Facility:
North Carolina General Statutes, Chapter 180, 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. 1150-546.2. 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 2014 Installment Financing
issued January 2014 (Culbreth Middle School Science Wing)
Estimated Costs:
Purchase of Land $
Planning and Design Services
New Construction
Additions 1 Renovations
Repair
Debt Payment/Bond Payment 196,500.00
TOTAL $ 196,500.00
Estimated Project Beginning Date: 7/1/2017 Est. Project Completion Date: 6/30/2018
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$ 196,500.00 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