HomeMy WebLinkAboutAgenda - 04-15-2025; 8-d - Application for North Carolina Education Lottery Proceeds for Orange County Schools (OCS) to Drawdown Funds from the North Carolina Department of Public Instruction 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: April 15, 2025
Action Agenda
Item No. 8-d
SUBJECT: Application for North Carolina Education Lottery Proceeds for Orange County
Schools (OCS) to Drawdown Funds from the North Carolina Department of
Public Instruction
DEPARTMENT: Finance and Administrative
Services
ATTACHMENT(S): INFORMATION CONTACT:
Attachment 1. OCS — Lottery Proceeds Gary Donaldson, (919) 245-2453
Debt Service 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 2024-25 debt
service payments for Orange County Schools (OCS).
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.
The attached application requests NCDPI to release lottery proceeds in the amount of
$543,862.88 to cover debt service for projects previously financed for the Orange County
School 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 2024-25. These additional PAYGO funds were budgeted as part of
the FY 2024-25 (Year 1) Capital Investment Fund approved by the Board of County
Commissioners.
FINANCIAL IMPACT: The total Lottery Proceeds requested from the NCDPI for Orange
County Schools is $543,862.88.
ALIGNMENT WITH STRATEGIC PLAN: This item supports:
0 GOAL 5: PUBLIC EDUCATION/LEARNING COMMUNITY
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OBJECTIVE 2. Improve school readiness and educational outcomes by providing
access, training, tools, technology, and other resources needed to thrive.
OBJECTIVE 4. Improve learning environments by investing in facilities over a 10-year
period that address repair, renovation, and educational adequacy needs.
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: Orange County-680 Title: Chief Financial Officer
Address: P.O. Box 8181 Hillsborough, NC Phone: 919-245-2453
Project Title: FY 2024-25 Debt Service (2017B Bonds- issued in May 2017 and Series 2020 GO Bond
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 2017E and Series 2020 General Obliqation Bonds)
Estimated Costs:
Purchase of Land $
Planning and Design Services
New Construction
Additions/ Renovations
Repair
Debt Payment/ Bond Payment 543,862.88
TOTAL $ 543,862.88
Estimated Project Beginning Date: 7/1/2024 Est. Project Completion Date: 6/30/2025
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$ 543,862.88 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