HomeMy WebLinkAboutAgenda - 05-02-2023; 8-f - Application for NC Education Lottery Proceeds for CHCCS and Contingent Approval of Budget Amendment #8-B Related to CHCCS Capital Project Ordinances 1
ORD-2023-021
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: May 2, 2023
Action Agenda
Item No. 8-f
SUBJECT: Application for North Carolina Education Lottery Proceeds for Chapel Hill
Carrboro City Schools (CHCCS) and Contingent Approval of Budget
Amendment #8-B Related to CHCCS Capital Project Ordinances
DEPARTMENT: Finance and Administrative Services
ATTACHMENT(S): INFORMATION CONTACT:
Attachment 1. CHCCS — Lottery Gary Donaldson, (919) 245-2453
Proceeds Debt Service Kirk Vaughn, (919) 245-2153
Application
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 2022-23 debt
service payments for Chapel Hill Carrboro City Schools (CHCCS), and to approve Budget
Amendment #8-B, 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 $824,304. The attached application requests NCDPI to release lottery proceeds in
the amount of $824,304 to cover debt service for projects previously financed for the CHCCS
system.
Budget Amendment #8-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 2022-23 for CHCCS long-
range capital needs and projects. These additional PAYGO funds were budgeted as part of the
FY 2022-23 (Year 1) Capital Investment Fund approved by the Board of County Commissioners
and are allocated to the following projects:
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Chapel Hill Carrboro City Schools ($824,304):
Plumbing ($10,800) — Project #53051
Trail Design ($150,000) — Project #53051
Northside Elementary School Building Material ($663,504) — Project #53051
FINANCIAL IMPACT: The total Lottery Proceeds requested from the NCDPI for Chapel Hill
Carrboro City Schools is $824,304.
SOCIAL JUSTICE IMPACT: There is no Orange County Social Justice Goal impact 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 #8-B receiving the Lottery Proceeds, contingent on NCDPI's approval of the
application.
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APPLICATION Approved:
PUBLIC SCHOOL BUILDING CAPITAL FUND
NORTH CAROLINA EDUCATION LOTTERY Date:
County: Orange Contact Person: Gary Donaldson
LEA: Chapel Hill-Carrboro City Title: Chief Financial Officer
Address: P.O. Box 8181 Hillsborough, NC Phone: 919-245-2453
Project Title: FY 2022-23 Debt Service (2012 Bonds- issued in April 2012)
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 Limited Obligation Bonds-
Series 2012 (Northside Elementary School)and other improvements
Estimated Costs:
Purchase of Land $
Planning and Design Services
New Construction
Additions/ Renovations
Repair
Debt Payment/Bond Payment 824,304.00
TOTAL $ 824,304.00
Estimated Project Beginning Date: 7/1/2022 Est. Project Completion Date: 6/30/2023
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$ 824,304.00 from the Public School
Building Capital Fund (Lottery Distribution). We certify that the project herein described is within the
parameters of G.S. 115C-546.
(Signature—Chair, County Commissioners) (Date)
(Signature—Chair, Board of Education) (Date)
Form Date: July 01,2011