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Home My WebLink AboutORD-2019-021 Application for NC Education Lottery Proceeds for OCS and Contingent Approval of BA #9-B Related to OCS Capital Project Ordinances 1 ORD-2019-021 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 21, 2019 Action Agenda Item No. 8-g SUBJECT: Application for North Carolina Education Lottery Proceeds for Orange County Schools (OCS) and Contingent Approval of Budget Amendment #9-B Related to OCS Capital Project Ordinances DEPARTMENT: Finance and Administrative Services ATTACHMENT(S): INFORMATION CONTACT: Attachment 1. OCS — Lottery Proceeds Paul Laughton, (919) 245-2152 Debt Service Application 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 2018-19 debt service payments for Orange County Schools (OCS), and to approve Budget Amendment #9-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 $628,336. The attached application requests NCDPI to release lottery proceeds in the amount of $532,643 to cover debt service for projects previously financed for the Orange County School system. Budget Amendment #9-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 2018-19 for OCS long- range capital needs and projects, and amends the budgets for the following OCS capital projects: 2 Orange County Schools ($532,643): Classroom/Building Improvements ($241,862) — Project # 51025 (Funds will be used for exterior resurfacing work at Cameron Park Elementary and drainage improvements at Pathways Elementary.) Revenues for this project: Current FY FY 2018-19 FY 2018-19 2018-19 Amendment Revised Alternative Financing $743,600 $0 $1,133,852 2/3 Net Debt Bonds $289,500 $0 $225,000 QSC Bonds $2,946,819 $0 $2,946,819 From General Fund (Addt'I PAYG) $777,669 $241,862 $1,019,531 Total Project Funding $4,757,588 $241,862 $4,999,450 Appropriated for this project: Current FY FY 2018-19 FY 2018-19 2018-19 Amendment Revised Construction $4,757,588 $241,862 $4,999,450 Total Costs $4,757,488 $241,862 $4,999,450 School Safety/Security ($127,489) — Project # 51034 (Funds will be used for school safety initiatives within the district.) Revenues for this project: Current FY FY 2018-19 FY 2018-19 2018-19 Amendment Revised From General Fund PAYG $572,137 $127,489 $699,626 2/3 Net Debt Bonds $428,073 $0 $428,073 Total Project Funding $1,000,210 $127,489 $1,127,699 Appropriated for this project: Current FY FY 2018-19 FY 2018-19 2018-19 Amendment Revised Safety/Security Safety/Security Projects $1,000,210 $127,489 $1,127,699 Total Costs $1,000,210 $127,489 $1,127,699 Technology Plan ($163,292) — Project # 51011 (Funds will be used for technology upgrades within the district.) Revenues for this project: Current FY FY 2018-19 FY 2018-19 2018-19 Amendment Revised From General Fund PAYG $3,733,299 $163,292 $3,896,591 From Other Projects $244,099 $0 $244,099 Total Project Funding $3,977,398 $163,292 $4,140,690 Appropriated for this project: Current FY FY 2018-19 FY 2018-19 2018-19 Amendment Revised Technology Plan $3,977,398 $163,292 $4,140,690 Total Costs $3,977,398 $163,292 $4,140,690 3 Note: The Current FY 2018-19 Budgets represent 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 Orange County Schools is $532,643. 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 #9-B receiving the Lottery Proceeds and the amended OCS 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 Contact Person : Gary Donaldson LEA : Orange County Schools Title : Chief Financial Officer Address : P . O . Box 8181 , Hillsborough , NC Phone : ( 919 ) 245 -2453 Project Title : FY 2018 - 19 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 532 , 643 . 00 TOTAL $ 532 , 643 . 00 Estimated Project Beginning Date : 7/ 1 /2018 Est . Project Completion Date : 6 /30/2019 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 , andIreest release of 532 , 643500 from the Public School Building Caand ( Lottery istri utio ) . We certify that the project herein described is within the parameter S . 115C - 546 ( Sign ture air. n C issioners ) \� ( Date) J CA W� / v / ( Signature — Chair , Board of Education ) ( Date ) Form Date : July 01 , 2011