Agenda - 12-01-1998 - 10b - Laserfiche WebLink

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Technical Report 17 example, of Orange County's outstanding general obligation bonds and Private Placement funds in FY 1998 -99, $89,209,285 have been issued for public schools. Total debt service payments on these bonds, including principal and interest, will amount to $9,317,087 in FY 1998 -99. Of that amount, $6,448,785 is to be paid using property tax revenues. The remainder is paid from sales tax proceeds [see discussion of "Sales Tax Revenues" below]. The amounts of concern in impact fee calculation are not one -time payments. Rather, the amounts of concerns are annual payments. This means that there will be a payment in one year, in two years, in three years, etc. Thus, the time -price differential issue becomes one of how to deal with a stream of payments over a number of years in the future, resulting in a need to cut off the analysis at some point. Title VI, Chapter 460, of the 1987 Session Laws establishes a cut off point by requiring Orange County to "estimate the total cost of improvements ... that will be needed ... during a reasonable planning period not to exceed 20 years." For purposes of this analysis, the cut off point is ten years, including the five -year period used by Orange County in its annual Capital Improvements Plan [CIP] for financial planning purposes as well as the ten -year period used by both school districts for long -range school planning purposes. Finally, it is also the period of time within which the new school facilities listed below will be needed. Fiscal Year* School Tyne School Board FY 1998 -99 Elementary Chapel Hill - Carrboro FY 1998 -99 Elementary Orange County FY 1999 -00 High School Orange County FY 2000 -01 High School Addition Chapel Hill - Carrboro FY 2000 -01 * Middle School Chapel Hill - Carrboro FY 2005 -06 High School Addition Orange County * The identified need for this school is in FY 2000 -01. Based on the school capital needs above, the task then becomes the provision of fair and reasonable consideration for annual payments toward capital improvements costs over a period of ten years. Revenue projections during the capital improvement planning period are shown on Table 9. Debt service is divided into the principal, interest, and service charges related to the bonds, and the principal and interest for the Private Placement funds. In addition to debt service payments, property tax revenues are also used for payments for recurring capital needs and to a newly created School Capital Projects Reserve Fund. In the FY 1996 -97 budget, $1,624,500 was appropriated to the two school districts for recurring capital, including vehicle replacement, equipment and furnishings, and site development and building renovations. Of these items, all but vehicle replacement [$175,000 in 1996 and 23.33% of the total] would be considered as school building capital needs eligible for impact fee funding. Total appropriations are $1,245,450 [Total minus 23.33% for vehicle replacement].