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Home My WebLink AboutORD-2018-015 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 SUBJECT:Application for North Carolina Education Lottery Proceeds for Orange County Schools (OCS) and ContingentApproval of Budget Amendment #8-B Related to OCSCapital Project Ordinances DEPARTMENT:Finance and Administrative Services ATTACHMENT(S):INFORMATION CONTACT: Attachment 1. OCS –Lottery Proceeds Debt Service Application Paul Laughton,(919) 245-2152 Gary Donaldson, (919) 245-2453 PURPOSE: To approve anapplication to the North Carolina Department of Public Instruction (NCDPI) to release proceedsfrom the NC Education Lottery account related to FY 2017-18 debtservice 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 todebt service payments, and permitting current year withdrawalsof lottery proceedsimmediately 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 proceedsfor Orange County Schools (OCS) is $640,604.The attached application requestsNCDPIto release lottery proceedsin the amount of $541,188to cover debt service for projects previously financed for the Orange CountySchool system. Budget Amendment #8-B provides for the receipt of the Lottery Proceeds, contingent on NCDPI’sapproval of the application, and substitutes the amount of Lottery Proceedsapproved for debt serviceas additional Pay-As-You-Go (PAYGO) funds for FY 2017-18 for OCSlong- range capital needs and projects, and amends the budgets for thefollowing OCScapital projects: 1 Orange CountySchools ($541,188): Food Services($7,100)– Project # 51033 (Funds will beused to replace food service equipmentat A.L. Stanback Middle School and Pathways Elementary). Revenues for this project: 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 Appropriated for this project: 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 beused to restructure the main entrance at Efland-Cheeks Global Elementary). Revenues for this project: 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 Appropriated for this project: 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 beused for technology upgrades throughout the district). Revenues for this project: 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 Appropriated for this project: 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 2 Vehicle Replacements ($45,000)– Project # 51032 (Funds will beused to replace a dump truck for maintenance services). Revenues for this project: 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 Appropriated for this project: 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 Budgetsrepresentsthe cumulative budgeted funds for these projectsin the Orange CountySchools district since 2009, which is the last time completed projects fundswere closed out. Staff plans to bring recommendations to the Board of County Commissioners in a future BOCC meetingfor closing out completed school and county capital projects. FINANCIAL IMPACT:The total Lottery Proceedsrequested from the NCDPIfor Chapel Hill– Carrboro CitySchools 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 Boardapprove, and authorize the Chair to sign, the application for North Carolina Education Lottery Proceeds; and approve Budget Amendment #8-B receiving the Lottery Proceedsand the amended OCSCapital Project Ordinances, contingent on NCDPI’s approval of the application. 3 Attachment 1 APPLICATION Approved: PUBLIC SCHOOL BUILDING CAPITAL FUND NORTH CAROLINA EDUCATION LOTTERY Date. County: Orange County Contact Person LEA: Orange County Schools Title: Address: P.Q. Box 8181, Hillsborough, NC Phone: Gary Donaldson Chief Financial Officer (919) 245 -2453 Project Title: FY 2417 -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 HIII Middle School) Estimated Costs: Purchase of Land $ Planning and Design Services New Construction Additions / Renovations Repair Debt Payment ! Bond Payment 541,188.00 TOTAL Estimated Project Beginning Date: 7/1117 $ 541,188.00 Est. Project Completion Date: 6130118 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 $ 541,188M from the Public School Building Capital Fund (Lottery Distribution). We certify that the project herein described is within the parameters of G. S- 1150 -546. (Signature --- Chair, County Commissioners) (Signature Chair, Board of Education Form rate: July 01, 2011 - -._... - (Date) - -.. (Date) C!