Agenda - 03-17-1998 - 9d - Laserfiche WebLink

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DRAFT March 18, 1998 Mr. W. Calvin Horton Manager, Town of Chapel Hill 306 North Columbia Street Chapel Hill, NC 27516 Dear Cal: At last evening's meeting, the Orange County Board of Commissioners approved the requests articulated in two recent Town Council resolutions concerning the use of County park bonds. Specifically, the Board approved: 1) the allocation of $145,000 towards a utility building to be constructed at the Northern Community Park that will support the proposed skateboard park and batting cage; and 2) the allocation of $105,000 towards lighting, irrigation, bleachers, and the like at the Southern Community Park. As was discussed during the joint meeting of the County Commissioners and Town Council on February 2, 1998, the disbursement of County funds would occur in a manner similar to the approach the County uses for disbursing funds for school capital projects. Once the bonds are sold and the County receives the funds, disbursements for project expenditures can occur upon the adoption of appropriate capital project ordinances by the County for these two park projects. The County will then disburse the bond funds upon receipt of documented expenditures by the Town. The County Commissioners are considering a proposed debt management policy, with one provision that the County will strive to sell bonds only once in a fiscal year. The Board of Commissioners have not made decisions on the amount and dates of bond sales, as these will be determined based on project descriptions and cash flow estimates that will be generated in the months ahead for projects that will receive funds from each of the approved November 1997 bond orders. At this time, the County does not anticipate selling bonds before early 1999. To assist the County in planning the first and subsequent bond sales, we would like to receive by August 1998 the Town's descriptions of the scope/elements of both of these park projects and your best estimates of their timetables and cash flow requirements (to include the use of the Town's existing funds on hand or available). Beginning in November 1998, the County would need annual updates on project timetables/cash flow needs to help us prepare debt service estimates for the CIP and following fiscal year operating budget. We look forward to working with the Town on developing these much needed recreation facilities for County and Town residents. Please let me know if you have any questions, and feel free to have your staff contact Finance Director Ken Chavious to work out the mechanics of the disbursement process. Sincerely, John M. Link, Jr. County Manager