Orange County NC Website
0 Summary of Capital Policy <br />(Note changes made to the November 19 draft are shown in bold print) <br />Sources of Funds <br />The following sources of funds will be allocated for Capital Projects and Debt Service: <br />All proceeds from the Article 40 and Article 42 one half sales tax <br />The North Carolina General Statutes require that 30 percent of the Article 40 and 60 <br />percent of the Article 42 sales tax revenue be earmarked for school capital projects or <br />debt service on debt issued for school capital projects. <br />Revenue from the property tax as follows: <br />$800,000 <br />The equivalent of 2.7 cents on the tax rate based on valuation as of 1996 -97. This <br />earmarking will be adjusted each revaluation cycle. <br />The amount necessary to retire the 1992 School Bonds. (In 1997 -98 this amount <br />is $4.7 million.) <br />The amount of the reduction in the Human Services function of the County budget <br />(equivalent of one half of one percent of the budget or $50,000) in 1994 -95 <br />for automation projects in Human Services. <br />Utilities Extension Fund - This amount may vary in that it based on the increase in <br />property tax base as a result of expenditures in the Utilities Extension Capital <br />project. The amount currently planned is $35,000 for 1997 -98 and $25,000 <br />for each year thereafter. <br />Impact Fees for each school system. <br />Public School Building Fund <br />Other revenues that are restricted including, payment -in -lieu, grant funds, rental revenue <br />and inmate fees as a result of the new jail addition. <br />Debt Service <br />Prior to funds being allocated for specific projects, all debt service, including private placement <br />financing will be subtracted from the unrestricted funding sources. <br />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 of <br />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 Improvements <br />40 Plan. These percentages will be rounded to one decimal place. <br />