HomeMy WebLinkAboutORD-2019-033 Application for NC Education Lottery Proceeds for CHCCS and Contingent Approval of BA #1-A Related to CHCCS Capital Project Ordinances
ORD-2019-033
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: September 3, 2019
Action Agenda
Item No. 8-g
SUBJECT: Application for North Carolina Education Lottery Proceeds for Chapel Hill –
Carrboro City Schools (CHCCS) and Contingent Approval of Budget
Amendment #1-A Related to CHCCS Capital Project Ordinances
DEPARTMENT: Finance and Administrative
Services
ATTACHMENT(S): INFORMATION CONTACT:
Attachment 1. CHCCS – Lottery
Proceeds Debt Service
Application
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 2019-20
debt service payments for Chapel Hill – Carrboro City Schools (CHCCS), and to approve
Budget Amendment #1-A (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 Chapel Hill – Carrboro City Schools
(CHCCS) is $263,198. The attached application requests NCDPI to release lottery proceeds in
the amount of $260,000 to cover debt service for projects previously financed for the Chapel Hill
– Carrboro City School system.
Budget Amendment #1-A 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 2019-20 for CHCCS long-
range capital needs and projects, and amends the budgets for the following CHCCS capital
projects:
1
Chapel Hill – Carrboro City Schools ($260,000)
ADA Requirements ($35,000) – Project # 54000 (Funds will be used to make necessary
facility improvements to comply with ADA requirements.)
Revenues for this project:
Current FY
2019-20
FY 2019-20
Amendment
FY 2019-20
Revised
From General Fund (PAYG) $345,616 $35,000 $380,616
Alternative Financing $35,000 $0 $35,000
Total Project Funding $380,616 $35,000 $415,616
Appropriated for this project:
Current FY
2019-20
FY 2019-20
Amendment
FY 2019-20
Revised
ADA Requirement Projects $380,616 $35,000 $415,616
Total Costs $380,616 $35,000 $415,616
Energy Efficiency/Lighting Improvements ($218,581) – Project # 54003 (Funds will be used
towards conversion from pneumatic to digital controls at McDougle Elementary.)
Revenues for this project:
Current FY
2019-20
FY 2019-20
Amendment
FY 2019-20
Revised
From General Fund (PAYG) $535,137 $218,581 $753,718
Alternative Financing $153,693 $0 $153,693
2/3 Net Debt $17,677 $0 $17,677
Total Project Funding $706,507 $218,581 $925,088
Appropriated for this project:
Current FY
2019-20
FY 2019-20
Amendment
FY 2019-20
Revised
Energy Management Projects $706,507 $218,581 $925,088
Total Costs $706,507 $218,581 $925,088
Fire/Safety/Security ($6,419) – Project # 54004 (Funds will be used for security systems and
camera upgrades/expansions.)
Revenues for this project:
Current FY
2019-20
FY 2019-20
Amendment
FY 2019-20
Revised
From General Fund (PAYG) $1,159,000 $6,419 $1,165,419
Lottery Proceeds $80,000 $0 $80,000
Alternative Financing $100,000 $0 $100,000
2/3 Net Debt $250,000 $0 $250,000
Total Project Funding $1,589,000 $6,419 $1,595,419
2
Appropriated for this project:
Current FY
2019-20
FY 2019-20
Amendment
FY 2019-20
Revised
Emergency/Security Systems $1,589,000 $6,419 $1,595,419
Total Costs $1,589,000 $6,419 $1,595,419
Note: The Current FY 2019-20 Budgets represent the cumulative budgeted funds for these projects in
the Chapel Hill-Carrboro City 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 $260,000.
SOCIAL JUSTICE IMPACT: There is no Orange County Social Justice Goal associated with
this item.
ENVIRONMENTAL IMPACT: There are no Orange County Environmental Responsibility Goal
impacts 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 #1-A receiving the Lottery Proceeds and the amended CHCCS Capital
Project Ordinances, contingent on NCDPI’s approval of the application.
3
APPLICATION Approved :
PUBLIC SCHOOL BUILDING CAPITAL FUND
NORTH CAROLINA EDUCATION LOTTERY Date :
County : Orange County Contact Person : Gary Donaldson
LEA : Chapel Hill - Carrboro City Schools Title : Chief Financial Officer
Address : P . O . Box 8181 Hillsborough , NC Phone : ( 919 ) 245 -2453
Project Title : FY 2019 -20 Debt Service ( Limited Obligation Bonds - Series 2011 )
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 the Limited Obligation Bonds -
Series 2011 ( Morris Grove Elementary )
Estimated Costs :
Purchase of Land $
Planning and Design Services
New Construction
Additions / Renovations
Repair
Debt Payment / Bond Payment 260 , 000200
TOTAL $ 2601000600
Estimated Project Beginning Date : 7 / 1 /2019 Est . Project Completion Date : 6/30 /2020
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 , quest release of $ 2601000000 from the Public School
Buildi g Cap al Fund ( Lottery Distribution ) . We certify that the project herein described is within the
pararfieter of G . S . 115C -
ignature/ — ir , ounty Com ssioners ) ( (ate' )
( Signature — Chair , Board of Education ) ( Date)
Form Date : July 01 , 2011