HomeMy WebLinkAboutAgenda - 06-07-2005-5jjORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 7, 2005
Action Agen Jcda
Item No. -~
SUBJECT: Application for State Public School Building Capital Funds
DEPARTMENT: Budget
PUBLIC HEARING: (Y/N) No
ATTACHMENT (S):
Application far Public School Building
Capital Funds
INFORMATION CONTACT:
Donna Dean 245-2151
Durham 688-7331
Mebane 336-227-2031
TELEPHONE NUMBERS:
Hillsborough 732-8181
Chapel Hill 968-4501
PURPOSE: To approve an application to the North Carolina Department of Public Instruction to
release funds from Orange County's Public School Building Capital 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 costs 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, McDougle Elementary, Scroggs Elementary and New Hope Elementary. Mare
recently, the County has used these funds to pay a portion of the debt service associated with
various school projects that are debt financed.
As of May 31, 2005, Orange County had $540,406 accumulated in the PSBCF account since
the last draw down of funds in June 2004. Given the uncertainty of the State's current and
future fiscal condition, staff recommends that the Board pursue the draw down of these funds
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as quickly as possible to reduce the likelihood that these funds might be sequestered, The
Governor's budget for the upcoming year does include a proposal to withhold these funds again
in 2005-06,
The attached application requests that the State release all available funds for Orange County
to offset debt service related to Stanback Middle School. The Orange County Board of
Education must also approve this application, which is docketed for action at the Board of
Education's June 6, 2005 meeting,
These funds do not represent additional, unanticipated funds far 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,
FINANCIAL IMPACT: Consistent with the County's current Capital Funding Policy, these
PSBCF monies are one source of funding far the ten-year Capital Investment Plan (CIP). The
funds have been included in the CIP 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 for Public School Building Capital
Funds for the Orange County Schools' share of the remaining 2004-05 debt service payment
related to construction of Stanback Middle School,
APPLICATION Approved:
PUBLIC SCHOOL BUILDING 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: (919) 245-2151
Project Title: 2004-05 Debt Service - A.L. Stanback
t.ocation:
Type of Facility:
G.S. 115C - 546,.2(6) "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•102.8C; 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,"
1992 voter approved bonds funded the following projects for the Orange
Short Description of Construction Project: County School District:
Project Bond Amount
Construction of A.L. Stanback Middle School 11,200,000
Estimated Costs: State local Total
Purchase of Land
Planning
Construction
Renovation
Enlargement
Repair
School Technology
FY 2004-05 Debt 1 212 143 $404.048 1 616 191
Service Payment
Total $1,212;143 $404,048 $1,616,191
Bid DatesNendors
Contracts SignedlDates
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): property tax
$404,048 of the matching funds have been expended for/dateldescription:
Date Purpose
12/01/2004 Debt Service
06/01/2005 Debl Service
Reporting We, the undersigned, agree to submit a statement of statellocal 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 i 212 143 from the Public School Building Capital Fund, We certify that the project herein described is
within the parameters of 115C-546,2(6) and that alt of the match is available and designated as match of this project.
Signature -Chair, County Commissioners Date
Signature -Chair, Board of Education Date