ORD-2007-008 - Ordinance approving Budget Amendment #11 for FY 2006-07

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2 camera, and audio equipment at the County's senior centers. This budget amendment provides for the receipt of these additional funds. (See Attachment 1, column #2) School Capital Projects 3. Historically, in accordarice with NC General Statute 164-4(c), school districts have been able to receive refunds for the sales taxes that they have paid. During the 2005 legislative session, the NC General Assembly amended the Statute and deleted local school administrative units (LEAs) from those governmental entities eligible to receive sales tax refunds. Pursuant to the amendment, school districts can no longer claim sales tax refunds after fiscal year 2005-06. As a result of the legislative action, both Orange County Schools and Chapel Hill Carrboro City Schools stood to lose hundreds of thousands of dollars per year from school capital project sales tax reimbursements. For example, the Orange County Schools' Gravelly Hill Middle School construction capital project anticipated receiving $300,000 in sales tax refunds, and the Chapel Hill Carrboro City Schools' Carrboro High School construction capital project was relying on $450,000 in sales tax refunds. After the General Assembly approved the amendment, the Local Government Commission (LGC) issued a memorandum that clarified how, under certain conditions, a county could assume responsibility for the construction of school facilities and the purchase of supplies and materials, and thereby be eligible for sales tax reimbursements. On December 13, 2005, the Board of County Commissioners approved interlocal agreements that adhered to the LGC's guidelines between the County and both the Orange County and Chapel Hill Carrboro City Schools. To properly budget the receipt of the sales tax refunds, it is necessary to amend the Gravelly Hill Middle School and Carrboro High School Capital Project Ordinances to reflect the refunds as County revenues passed on to each school district. The attached capital project ordinances reflect the change. It is important to note that there was a delay between the time the General Assembly amended the Statute and the enactment of the interlocal agreement between the County. The delay resulted in sales tax refunds that will be about $141,500 less than anticipated. County staff will work with Orange County Schools staff to identify how to make up the shortfall and will report to the Board later this spring. (See attached Gravelly Hill Middle School and Carrboro High School Capital Projecf Ordinances) 4. On March 13, 2007 Commissioners approved a funding plan for Chapel Hill Carrboro Elementary School #10. The attached capital project ordinance reflects the project budget approved by the Board. (See attached Elementary #10 School Capital Project Ordinance) SportsPlex Enterprise Fund 5. It was the intent of the Board of County Commissioners to approve a $2,403,000 budget for current fiscal year funding for the SportsPlex Enterprise Fund. However, in preparing the budget ordinance, staff inadvertently omitted the SportsPlex Enterprise Fund section of the actual budget ordinance that the Board approved on June 27, 2006. This amendment corrects the ordinance and budgets for the revenues and expenditures associated with the fiscal year 2006-07 SportsPlex Enterprise Fund annual operating budget. Revenues for the Enterprise Fund consist of activity related fees charged to users as well as the $700,000 transfer from the County's General Fund (the transfer from the County's General Fund was