Orange County NC Website
• <br />B. Debt Service: <br />Prior to funds being allocated for specific projects, all debt service, including private <br />placement financing will be subtracted from the unrestricted funding sources. <br />C. Allocation <br />All sources of unrestricted revenue, less debt service is then allocated between County and <br />School projects based on 50 percent of the net amount for School projects and 50 percent <br />of the net amount for County projects. Funding between the two school systems will be <br />allocated based on the 10th day enrollment adjusted each year. For example, the 10th day <br />enrollment as of September 1996 will be the basis of the 1997 -2007 Capital <br />Improvements Plan. These percentages will be rounded to one decimal place. <br />Impact fees will be projected and allocated to each school system, although these fees may <br />be used to pay debt service. When impact fees are used to pay debt service, the equivalent <br />amount of the projected impact fee will be allocated to each school system. For the first <br />three years of the planning period (1997 -98, 1998 -99 and 1999 -2000) impact fees are <br />dedicated to the cost of the new schools. <br />D. Funding Levels <br />It is the intent of the Board of Commissioners to "hold harmless" School projects and <br />County projects as identified by the amount of funding projected in the 1996 -2006 Capital <br />Improvements Plan. To achieve this intention, the following funding options will be used: <br />The difference between the amount of general obligation debt service payments at the <br />peak year of the debt schedule and the actual debt service payment will be earmarked for <br />the Orange County Schools until the time that any shortfall that would have been realized <br />by that system is made up. <br />For County projects, beginning in 1998 -99 the equivalent of one cent on the general fund <br />property tax rate will be necessary. The Board of Commissioners in adopting this policy <br />instructed staff to identify other funding options rather than a tax increase to make up this <br />shortfall. The Board of Commissioners may consider shifting the one cent capital reserve <br />fund to be dedicated to County projects (see Capital Reserve section below). <br />• <br />