HomeMy WebLinkAboutAgenda 04-16-24; 8-g - Application for North Carolina Education Lottery Proceeds for Chapel Hill-Carrboro City Schools (CHCCS) to Drawdown Funds from the North Carolina Department of Public Instruction 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: April 16, 2024
Action Agenda
Item No. 8-g
SUBJECT: Application for North Carolina Education Lottery Proceeds for Chapel Hill-
Carrboro City Schools (CHCCS) to Drawdown Funds from the North Carolina
Department of Public Instruction
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 2023-24 debt
service payments for Chapel Hill-Carrboro City Schools (CHCCS).
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 CHCCS is $985,000. The attached
application requests NCDPI to release lottery proceeds in the amount of $985,000 to cover debt
service for projects previously financed for the Chapel Hill-Carrboro City Schools system.
The Lottery Proceeds receipt is 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 2023-24. These additional PAYGO funds were budgeted as part of
the FY 2023-24 (Year 1) Capital Investment Fund approved by the Board of County
Commissioners.
FINANCIAL IMPACT: The total Lottery Proceeds requested from the NCDPI for Chapel Hill-
Carrboro City Schools is $985,000.
SOCIAL JUSTICE IMPACT: There is no Orange County Social Justice Goal associated with
this item.
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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.
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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-681 Title: Chief Financial Officer
Address: P.O. Box 8181 Hillsborough, NC Phone: 919-245-2453
Project Title: FY 2023-24 Debt Service (2012 Bonds and Series 2018 General Obligation Bonds.
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 and Series 2018 General Obligation Bonds.
Estimated Costs:
Purchase of Land $
Planning and Design Services
New Construction
Additions/ Renovations
Repair
Debt Payment/Bond Payment 985,000.00
TOTAL $ 985,000.00
Estimated Project Beginning Date: 7/1/2023 Est. Project Completion Date: 6/30/2024
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$ 985,000.00 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