HomeMy WebLinkAboutAgenda - 06-02-2004-5gORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: .June 2, 2004
Action Agen J~da
Item No.
SUBJECT: Application for State Public School Building Capital Funds
DEPARTMENT: Budget PUBLIC HEARING: (Y/N) No
ATTACHMENT (S):
Attachment 1, Application for Public
School Building Capital
Funds
INFORMATION CONTACT:
Donna Dean 245-2151
TELEPHONE NUMBERS:
Hillsborough 732-8181
Chapel Hill 968-4501
Durham 688-7331
Mebane 336-227-2031
PURPOSE: To approve an application to the North Carolina Department of Public Instruction to
release funds from Orange County's Public School Building 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 School, McDougle Elementary, Scroggs Elementary and New Hope
Elementary. More recently, the County has used these funds to pay a portion of the debt
service associated with various school projects that are debt financed.
It is important to note that staff has not requested the BOCC approve an application for PSBCF
since June 18, 2002, This is because the State withheld contributions to this fund during fiscal
year 2002-03 from all but a handful of counties in order to help address its fiscal crisis that year,
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The few counties that received their allocations had dedicated the proceeds from the PSBCF to
offset debt service related to school capital projects.
As of May 13, 2004, Orange County has accumulated $940,516 in the PSBCF account since
the last draw down of funds in June 2002, Given the uncertainty of the State's current and
future fiscal condition, staff recommends that the Board pursue the draw down of these funds
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 2004-05.
The attached application requests that the State release funds in the amount of $802,000 to
offset debt service related to McDougle Elementary School. Staff is working with the Orange
County Schools to apply for funds to offset debt service related to one of its capital projects.
Staff anticipates that the OCS application will be presented to the BOCC for approval before the
end of the current fiscal year.
These funds do not represent additional, unanticipated funds for 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,
The application process requires a formal request for funding to be submitted by both the Board
of County Commissioners and the Board of Education of the school system concerned, The
Chapel Hill-Carrboro Board of Education approved their application at their May 20, 2004
meeting. As indicated above, staff is currently working with OCS to get their application
approved by their Board of Education,
FINANCIAL IMPACT: Consistent with the County's current Capital Funding Policy, these
PSBCF monies are one source of funding for the ten-year capital plan (CIP). The funds have
been included in the GIP 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 Chapel Hill-Carrboro City Schools' share of the 2003-04 debt service payment
related to construction of McDougle Elementary School,
APPLYCwt7ON APProved:
PUBLIC SCHOOL SUEL.DINtx~ CAP{TAL FUND Date:
County:
AddreSS.
branue
Ppst Office fox 8781 Hillsborough NC ?~~8 O
Contact: Donna Dean
title: BudgeLDirector
School Admin Unit: orange Coun ,hoots Phone: qty) 245.2151
Project Tilla: 003-04 Debt Service - Mrl7ouole Elemantarv School
location:
Type of Facility;
G-S. 115C • 546.2(4) "Counties shall use monlas. in the Fund 9or capital pulley projects inciutling the planning,
construction, recanetruction, enlargement, improvement. repair, of renavaticn of public school buildings and for the
purchase oP land for public school buildings; for equipment to irnplemant a local school technology plan that is approved
pursuant to G.S t 15C-t o2.6C; 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 aquipmenL As
used In this secdon, "public school buildings" only Includes facilities for Individual schools that are used for instructional
and related purposes and tloas not iltClude centraii2ad administration, malntonance, or other facilities."
Debi Service payments for private placement loan for construction of
Short Description oP Construction Project; McDougle Elementary School in the Chapel Hiii Carrhon? Coy SCnooffi
District
Project Band Amount
Construction of McDougle Elamertfary School 9.600.000
Estimated Coats: SGste
Purchase of Land
Planning
Construction
Renovation
Enlargement
Repair
School Technology
FY 2003.04 Debt i 046 5
Service Payment ~ `-~~
Tatar 51,046',509
Local Total
"343 ,fj~3~ 1 95 346
5348,836 51,395,345
91d DatesNandors
ConEracts Signad/Datsa
Estimated dale of beginning of construction
Estimated date of completion
Match: The matching funds of on6 dollar of loyal funds for every three dollars of state funds era from
(source): roe tax
5348,636 of the matching }unds have bean expended for/date/description:
Dote P [ ose
7/1 5 /247 0 3 Debt Service
7/15/2003 Debt Service
Reporting We, the Undersigned, agme to submit a 9tatament of state/local amounts expended for this project
requiroments: within 60 days of completion of the project
The County Commiselgners and the Ba9rd of Education do hereby jointly request opproval o} the above project antl
request release of 902 000 from the PUbllc School Building Capital Fund. We certify that the project herein described 16
within the parameters of 116C-546.2(4) and that all o} the match is available and designated as match of this project.
Date ~~
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