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HomeMy WebLinkAboutAgenda - 06-23-2004-5hORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 23, 2004 Action Agen Item No. SUBJECT: Application for State Public School Building Capital Funds DEPARTMENT: Budget PUBLIC HEARING: (Y/N) No ATTACHMENT (S): Attachment 1. Application for Public School Building Capital Funds INFORMATION CONTACT: Donna Dean 245-2151 TELEPHONE NUMBERS: Hillsborough Chapel Hill Durham Mebane 732-8181 968-4501 688-7331 336-227-2031 PURPOSE: To approve an application to the North Carolina Department of Public Instruction to release funds from Orange County's Public School Building Fund account, BACKGROUND: In 1987, the General Assembly established the Public School Building Capital Fund (PSBCF) to assist county governments in meeting their public school needs. The State uses a portion of its corporate income tax receipts (including interest earned) to fund the PSBCF). Monies from the funds are allocated to counties on a per average daily membership (ADM) basis according to the Department of Public Instruction's certified ADM for the current fiscal year, Counties can use these funds to offset costs in three major areas: New school construction projects (including the purchase of land) and repairing/renovating older facilities; Implementation of local school technology projects; • Repayment of debt service. Since the creation of this fund, Orange County has used its allocations to cover a portion of the renovation casts at Ephesus Elementary, Chapel Hill High, Stanford Middle, and Hillsborough Elementary. In addition, these funds have offset a portion of the construction costs at East Chapel Hill High School, McDougle Elementary, Scroggs Elementary and New Hope Elementary. More recently, the County has used these funds to pay a portion of the debt service associated with various school projects that are debt financed. It is important to note that staff has not requested the BOCG approve an application for PSBCF since June 18, 2002.. This is because the State withheld contributions to this fund during fiscal year 2002-03 from all but a handful of Counties in order to offset its fiscal crisis that year, The z few counties that received their allocations had dedicated the proceeds from the PSBCF to offset debt service related to school capital projects. Given the uncertainty of the State's current and future fiscal condition, staff recommends that the Board pursue the draw dawn of these funds as quickly as possible to eliminate any possibility that these funds might be sequestered, The Governor's budget for the upcoming year does include a proposal to withhold these funds again this year, The attached application requests that the State release funds, for $138,516 to offset debt service related to A.L., Stanback Middle School. These funds do not represent additional, unanticipated funds for the Capital Investment Plan, They have already been programmed as a revenue source into the allocations of pay-as-you-go funds to the two school systems under the County's present ten-year capital plan. The application process requires formal request for funding for bath the Board of County Commissioners and the Board of Education of the School system concerned, The Orange County Schools Board of Education is scheduled to approve their application at its .)une 7, 2004 meeting. FINANCIAL IMPACT: Consistent with the County's current Capital Funding Policy, these PSBCF monies are one source of funding for the ten-year capital plan (CIP), The funds have been included in the GIP revenue estimates and there is no additional financial impact anticipated. RECOMMENDATION (S): The Manager recommends that the Board of County Commissioners approve, and authorize the Chair to sign, the application far Public School Building Capital Funds for Orange County Schools share of the 2003-04 debt service payment related to construction of A,L, Stanback Middle Schooh APPLICATION Approved: PUBLIC SCHOOL BU ILDING CAPITAL FUND Date: County: Orange Contact: Donna Dean Address: Post Office Box 8181 Hillsborough NC 27278 Title: Budget Director School Admin Unit: Orange County Schools Phone: (9191245-2151 Project Title: 2003-04 Debt Service - A.L. Stanback Location: Type of Facility G,S. 115C - 546,2(b) "Counties shall use monies in the Fund for capital outlay projects including the planning, construction, reconstruction, enlargement, improvement, repair, or renovation of public school buildings and for the purchase of land for public school buildings; for equipment to implement a local school technology plan that is approved pursuant to G.S. 115C-102,6C; or for both. Monies used to implement a local school technology plan shall be transferred to the State School Technology Fund and allocated by that Fund to the local school administrative unit for equipment. As used in this section, "public school buildings" only includes facilities for individual schools that are used for instructional and related purposes and does not include centralized administration, maintenance, or other facilities," Short Description of Construction Project: 1992 voter approved bonds funded the following projects for the Orange County School District: Project Bond Amount Construction of AL Stanback Middle School 11,2D0,000 Estimated Costs: State Local Total Purchase of Land Planning Construction Renovation Enlargement Repair School Technology FY 2003-04 Debt 630 115 210 038 840153 Service Payment Total $630,115 $210,038 $840,153 Bid DatesNendors Contracts Signed/Dates Estimated date of beginning of construction Estimated date of completion Match: The matching funds of one dollar of local funds for every three dollars of state funds are from (source): orooertv tax $210,038 of the matching funds have been expended forldateldescription: Date Purpose 8/1/2003 Debt Service 2/1/2004 Debt Service Reporting We, the undersigned, agree to submit a statement of state/local amounts expended for this project requirements: within 60 days of 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 13,8,516 from the Public School Building Capital Fund. We certify that the project herein described is within the parameters of 115C-546.2(b) and that all of the match is available and designated as match of this project, m mis sioners Signature -Chair, County Co Date p ~ ~ ~{~ ~ J / Sicnatu -Chair; Board of Education Date