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HomeMy WebLinkAboutAgenda - 02-20-2018 8-c - Application for NC Education Lottery Proceeds for CHCCS and Contingent Approval of BA # 6-A Related to CHCCS Capital Project Ordinances ORD-2018-009 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: February 20, 2018 Action Agenda Item No. 8-c SUBJECT: Application for North Carolina Education Lottery Proceeds for Chapel Hill – Carrboro City Schools (CHCCS) and Contingent Approval of Budget Amendment # 6-A Related to CHCCS Capital Project Ordinances DEPARTMENT: Finance and Administrative Services ATTACHMENT(S): INFORMATION CONTACT: Attachment 1. CHCCS – Lottery Proceeds Debt Service Application Paul Laughton, (919) 245-2152 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 2017-18 debt service payments for Chapel Hill – Carrboro City Schools (CHCCS), 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 Chapel Hill – Carrboro City Schools (CHCCS) is $198,147. The attached application requests NCDPI to release lottery proceeds in the amount of $198,000 to cover debt service for projects previously financed for the Chapel Hill – Carrboro City 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 2017-18 for CHCCS long- range capital needs and projects, and amends the budgets for the following CHCCS capital projects: 1 Chapel Hill – Carrboro City Schools ($198,000): Classroom/Building Improvements ($198,000) – Project # 53025 (Funds will be used to purchase and install new playground equipment at McDougle Elementary School). Revenues for this project: Current FY 2017-18 FY 2017-18 Amendment FY 2017-18 Revised From General Fund (PAYG) $1,959,607 $198,000 $2,157,607 Total Project Funding $1,959,607 $198,000 $2,157,607 Appropriated for this project: Current FY 2017-18 FY 2017-18 Amendment FY 2017-18 Revised Construction/Improvements $1,959,607 $198,000 $2,157,607 Total Costs $1,959,607 $198,000 $2,157,607 Note: The Current FY 2017-18 Budget represents the cumulative budgeted funds for classroom/building improvements in the Chapel Hill-Carrboro City Schools district since 2009, which is the last time completed projects funds were closed out. Staff plans to bring recommendations to the Board of County Commissioners in a future BOCC meeting 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 $198,000. 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 #6-A receiving the Lottery Proceeds and the amended CHCCS Capital Project Ordinances, contingent on NCDPI’s approval of the application. 2 3