HomeMy WebLinkAboutAgenda - 05-01-2018 8-e - Application for North Carolina Education Lottery Proceeds for OCS and Contingent Approval of BA #8-B Related to OCS CPOsORD- 2018 -015
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: May 1, 2018
Action Agenda
Item No. 8 -e
1
SUBJECT: Application for North Carolina Education Lottery Proceeds for Orange County
Schools (OCS) and Contingent Approval of Budget Amendment #8 -B Related
to OCS Capital Proiect Ordinances
DEPARTMENT: Finance and Administrative Services
ATTACHMENT(S):
Attachment 1. OCS — Lottery Proceeds
Debt Service Application
INFORMATION CONTACT:
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 Orange County Schools (OCS), and to approve Budget Amendment
#8 -B (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
$640,604. The attached application requests NCDPI to release lottery proceeds in the amount
of $541,188 to cover debt service for projects previously financed for the Orange County School
system.
Budget Amendment #8 -B 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 OCS long -
range capital needs and projects, and amends the budgets for the following OCS capital
projects:
PIA
Orange County Schools ($541,188):
Food Services ($7,100) - Project # 51033 (Funds will be used to replace food service
equipment at A.L. Stanback Middle School and Pathways Elementary).
Revenues for this nroiect:
ADDroDriated for this Droiect:
Current FY
2017 -18
FY 2017 -18
Amendment
FY 2017 -18
Revised
From General Fund PAYG
$275,294
$7,100
$282,394
2/3 Net Debt Bonds
$198,450
$0
$198,450
Alternative Financing
$290,000
$0
$290,000
Total Project Funding
$763,744
$7,100
$770,844
ADDroDriated for this Droiect:
School Safety /Security ($311,318) - Project # 51034 (Funds will be used to restructure the
main entrance at Efland- Cheeks Global Elementary).
Revenues for this Droiect:
Current FY
2017 -18
FY 2017 -18
Amendment
FY 2017 -18
Revised
General Renovations/Equipment
$763,744
$7,100
$770,844
Total Costs
$763,744
$7,100
$770,844
School Safety /Security ($311,318) - Project # 51034 (Funds will be used to restructure the
main entrance at Efland- Cheeks Global Elementary).
Revenues for this Droiect:
Annronriated for this nroiect:
Current FY
2017 -18
FY 2017 -18
Amendment
FY 2017 -18
Revised
From General Fund PAYG
$260,819
$311,318
$572,137
2/3 Net Debt Bonds
$428,073
$0
$428,073
Total Project Funding
$688,892
$311,318
$1,000,210
Annronriated for this nroiect:
Technology Plan ($177,770) - Project # 51011 (Funds will be used for technology upgrades
throughout the district).
Revenues for this Droiect:
Current FY
2017 -18
FY 2017 -18
Amendment
FY 2017 -18
Revised
Safety/Security Improvements
$688,892
$311,318
$1,000,210
Total Costs
$688,892
$311,318
$1,000,210
Technology Plan ($177,770) - Project # 51011 (Funds will be used for technology upgrades
throughout the district).
Revenues for this Droiect:
ADDroDriated for this Droiect:
Current FY
2017 -18
FY 2017 -18
Amendment
FY 2017 -18
Revised
From General Fund PAYG
$3,555,529
$177,770
$3,733,299
From Other Projects
$244,099
$0
$244,099
Total Project Funding
$3,799,628
$177,770
$3,977,398
ADDroDriated for this Droiect:
Current FY
2017 -18
FY 2017 -18
Amendment
FY 2017 -18
Revised
Technology Upgrades
$3,799,628
$177,770
$3,977,398
Total Costs
$3,799,628
$177,770
$3,977,398
K
Vehicle Replacements ($45,000) — Project # 51032 (Funds will be used to replace a dump
truck for maintenance services).
Revenues for this oroiect:
ADDrogriated for this Droiect:
Current FY
2017 -18
FY 2017 -18
Amendment
FY 2017 -18
Revised
From General Fund PAYG)
$175,000
$45,000
$220,000
Total Project Funding
$175,000
$45,000
$220,000
ADDrogriated for this Droiect:
Note: The Current FY 2017 -18 Budgets represents the cumulative budgeted funds for these projects in
the Orange County 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 $541,188.
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 #8 -B receiving the Lottery Proceeds and the amended OCS Capital Project
Ordinances, contingent on NCDPI's approval of the application.
Current FY
2017 -18
FY 2017 -18
Amendment
FY 2017 -18
Revised
Vehicles
$175,000
$45,000
$220,000
Total Costs
$175,000
$45,000
$220,000
Note: The Current FY 2017 -18 Budgets represents the cumulative budgeted funds for these projects in
the Orange County 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 $541,188.
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 #8 -B receiving the Lottery Proceeds and the amended OCS Capital Project
Ordinances, contingent on NCDPI's approval of the application.
APPLICATION
4 •
County: Orange County
LEA: Orange County Schools
Address: P.O. Box 8181, Hillsborough, NC
Approved:
Date:
Contact Person: Gary Donaldson
Title: Chief Financial Officer
Phone: (919) 245 -2453
Project Title: FY 2017 -18 Debt Service (2001 Bonds - issued in 2005 - Series 2011 Refunding
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 associated with 2001 Bonds - issued in 2005 -
Series 2011 Refunding - issued in November 2011 (Gravelly Hill Middle School)
Estimated Costs:
Purchase of Land
Planning and Design Services
New Construction
Additions / Renovations
Repair
Debt Payment / Bond Payment
TOTAL
Estimated Project Beginning Date: 7/1/17
$
541,188.00
$ 541,188.00
Est. Project Completion Date: 6/30/18
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 $ 541,188.00 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)
Form Date: July 01, 2011
(Date)
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