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Home My WebLink AboutORD-2018-009 Application for NC Education Lottery Proceeds for CHCCS and Budget Amendment 5-AORD-2018-009 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): Attachment 1. CHCCS — Lottery Proceeds Debt Service Application ILI •- 1 -1 • K •k 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: 2 ,•- rougame-no, as •; 111 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: Appropriated 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: 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. 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. APPLICATION Approved: PUBLIC SCHOOL BUILDING CAPITAL FUND NORTH CAROLINA EDUCATION LOTTERY Date: County: Orange County LEA: Chapel Hill- Carrboro City Schools Address: P.O. Box 8181 Hillsborough, NC Project Title: Location: Type of Facility � C," s.'7 c.y Contact Person: Gary Donaldson Title: Chief Financial Officer Phone: (919) 245 -2453 FY 2017 -18 Debt Service (Installment Financing 2014) 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 2014 Installment Financing issued January 2014 (Culbreth Middle School Science Vying) Estimated Costs: Purchase of Land $ Planning and Design Services _- ._..._ New Construction Additions / Renovations Repair Debt Payment / Bond Payment 198,000.00 TOTAL $ 198,000.00 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 $ 198,000.00 from the Public School Building Capital Fund (Lottery Distribution). We certify that the project herein described is within the parameters of G.S. 115 546 Signature — Chair, Cou ers) 0 (Signature — Chair, Board of Education) Form Date: July 01, 2011 ate) (Date)