Agenda - 02-03-1998 - 9a - Laserfiche WebLink

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3 (Adopted 12/7/96) Orange County Board of Commissioners Capital Funding Policy A. Sources of Funds The following sources of funds will be allocated for Capital Projects and Debt Service: �I 1. All proceeds from the Article 40 and Article 42 one half sales tax The North Carolina General Statutes require that 30 percent of the Article 40 and 60 percent of the Article 42 sales tax revenue be earmarked for school capital projects or debt service on debt issued for school capital projects. 2. Revenue from the property tax as follows: • $800,000 • The equivalent of 2.7 cents on the tax rate based on valuation as of 1996-97. This earmarking will be adjusted each revaluation cycle. • The amount necessary to retire the 1992 School Bonds. (In 1997-98 this amount is $4.7 million.) • The amount of the reduction in the Human Services function of the County budget(equivalent of one half of one percent of the budget or$50,000) in 1994- 95 for automation projects in Human Services. • Utilities Extension Fund-This amount may vary in that it based on the increase in property tax base as a result of expenditures in the Utilities Extension Capital project. The amount currently planned is $35,000 for 1997-98 and $25,000 for each year thereafter. 3. Impact Fees for each school system. 4. Public School Building Fund 5. Other revenues that are restricted including, payment-in-lieu, grant funds, rental revenue and inmate fees as a result of the new jail addition. B. Debt Service Prior to funds being allocated for specific projects, all debt service, including private placement financing will be subtracted from the unrestricted funding sources. As an exception, the Orange County Schools are responsible for funding directly from their pay-as-you-go capital allocations, that portion of the cost of a new high school in the Orange County School system beyond the $12.5 million bonds approved by voters for that school in November 1997. C. Allocation All sources of unrestricted revenue, less debt service, is then allocated between County and School projects based on 50 percent of the net amount for School projects and 50 percent of the net amount for County projects. Funding between the two school systems will be allocated based on the 20`h day enrollment adjusted each year. For example, the 2e day enrollment as of September 1998 will be the basis of the 1999-2009 Capital Improvements Plan. These percentages will be rounded to one decimal place.