P-0290 - Summary of Capital Policy 12-07-1996

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Prior to funds being allocated for specific projects, all debt service, including private • placement financing will be subtracted from the unrestricted funding sources. As an exception, the Orange County Schools are responsiblefor funding directly from their pay-as-you-go capital allocations, that portion of the cost of a new high school in t/ze Orange County School system beyond the $12.5 million bonds approved by voters for tizat school in November 1997 Allocation All sources of unrestricted revenue, less debt service, is then allocated between County and School projects based on 50 percent of the net amount for School projects and 50 percent of the net amount for Country projects. Funding between the two school systems will be allocated based on the 20th day enrollment adjusted each year. For example, the 20th day enrollment as of September 1998 will be the basis of the 1999 -2009 Capital Improvements Plan. These percentages will be rounded to one decimal place. Impact fees will be projected and allocated to each school system, although these fees may be used to pay debt service. When impact fees are used to pay debt service, the equivalent amount of the projected impact fee will be allocated to each school system. For the first three years of the planning period (1997 -98, 1998 -99 and 1999 -2000) • impact fees are dedicated to the cost of the new schools. All funds allocated to capitalprojects are to be accounted for in a Capital Project Fund under a Project Ordinance adopted by the Board of Commissioners. The Project Ordinance will include a detailed break down of each cost category related to the project, as outlined in the Sample Capital Project Ordinance at Attachment 1, which is incorporated by reference into this policy. Whenever County or School project bids exceed budget or come in lower than projected, or any otherfactor affecting the project budget occurs, County departments or the school systems would be expected to present revised capital project ordinances for adoption by the Board of Commissioners. D. Funding Levels It is the intent of the Board of Commissioners to "hold harmless" School projects and County projects as identified by the amount of funding projected in the 1996 -2006 Capital Improvements Plan. To achieve this intention, the following funding options will be used: The difference between the amount of general obligation debt service payments at the peak year of the debt schedule and the actual debt service payment will be earmarked for the Orange County Schools until the time that any shortfall that • would have been realized by that system is made up.