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- :,,~: l.lE1:3~ri ~~i s ,.. .~ ~ u ~r Commissioner Willhoit moved, seconded by Commissioner Walker, to appointment three interim trustees for the proposed Damascus Fire District in order that work might proceed on a proposed budget pending the outcome of the referendum; the trustees. proposed are: Marvin Poythress, Wade Davis, __. and Pascal Trahanis. Vote: Ayes, 5; noes ,0. E.11. CHAPEL HILL-CARRBORO SCHOOLS' SHORTFALL Commissioner Willhoit moved, seconded by Commissioner.Walker, that this Board write a letter to the Chapel Hill-Carrboro Superintendent of Schools and . to the Chair of the Chapel Hill-Carrboro Board of Education which explains the County's understanding of the situation with regard to the shortfall. Commissioner Willhoit enumerated his understanding of.the shortfall: 1-'a 6% error was made in estimating the re-evaluated tax`base of the Chapel Hill-Carrboro School District; 2--the error was discovered by the new County Manager; . 3--the School Administration had not discovered the shortfall in revenue, therefore, its ability to meet budget obligations was not impaired; 4--the revenue shortfall should not have to be made up from the school contigency fund since there was sufficient underspending in various object codes and there were additional revenues; 5--the school budget does not have to be cut since the shortfall is an appropriate use of the unappropriated fund balance; 6--the unappropriated fund balance was estimated at $350,p00 prior ___ to this Fiscal Year while latest estimates indicate an unappro- priated fund balance of $600,ODD; 7--the revenue shortfall is projected to be about $72,000 which should be partially offset by about $56,000 budgeted for salary increases effective October 1, 1981, which were not implemented until January 1, 1982; 8--the unappropriated fund balance, contrary to statements indicating otherwise, is very close to a month's payroll for the schools based _ on 43% coming monthly from local sources and about 46% monthly from the State direct to the chools; 9--the schools had estimated $100,000 investment income and if so, based on a return of about 15% it means their invested funds amount to about two thirds of a million dollars; 10--and according to an article in the Chapel Hill Newspaper .on March 2, 1982, there was a windfall of about $122,000 in unexpected revenues for that school district ($6D,000 above the $100,000 expected an the interest on the fund balance; $10,000 in payments in lieu of taxes; $45,000 in indirect cost recovery from the Federal Government; and, income on rental of property $7,200). 4 Commissioner Willhoit said, pending validation of the figures cited, this . revenue shortfall will not cause the School Board to default on obligations and teachers and programs will not have to be cut. Vote: Ayes, 5; noes, 0. E. 11. JORDAN RESERVOIR ALLOCATION Commissioner Willhoit. said the deadline for making allocation requests from the Jordan Reservoir is June 29, 1982, and he suggested that staff con- tact water providers/users in the County to ascertain the feasibility of the