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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: October 5, 2010 <br />Action Agenda <br />Item No. ~ - (~ <br />SUBJECT: Chapel Hill-Carrboro Ci Schools Capital Investment Plan and Funding <br />DEPARTMENT: Financial Services PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): <br />Attachment 1: Chapel Hill -Carrboro <br />Board Resolution <br />Attachment 2: Chapel Hill -Carrboro <br />Listing of Approved Capital <br />Projects <br />INFORMATION CONTACT: <br />Frank Clifton, 919-245-2306 <br />Clarence Grier, 919-245-2453 <br />Neil Pedersen, Superintendent, Chapel <br />Hill-Carrboro City Schools, 919-967-8211 <br />PURPOSE: To approve a new capital investment plan and funding mechanism for the Chapel <br />Hill -Carrboro City Schools for the fiscal year ending June 30, 2011. <br />BACKGROUND: On August 12, 2010, the Chapel Hill -Carrboro City Schools Board of <br />Education (Board of Education) approved a resolution modifying the school system's Capital <br />Investment Plan for FY 2010-11 and requested that the County apply for Lottery Funds to <br />support those amendments. For fiscal year 2010-11, the Board of Education approved the 10 <br />year Capital Investment Plan. However, the Board of Education's FY 2010-11 Lottery allocation <br />has been reduced by $422,000 due to State budget reductions. <br />Orange County's Capital Funding Policy requires Lottery Funds to be budgeted a year in <br />arrears. This funding policy has provided the district with a balance in Lottery Funds of <br />approximately $1.7 million. In December of last year, the Board of Education adopted a <br />resolution requesting that the County change the process used to budget Lottery Funds. The <br />Board of Education's resolution requested access to Lottery Funds once the State makes the <br />quarterly deposit. Additionally, the Board of Education requests the County apply for the $1.7 <br />million Lottery Fund balance to be used for debt payments and then provide an equal funding <br />amount to the district's CIP as additional Pay-As-You-Go funds. Immediate access to lottery <br />funds will allow the Board of Education to draw down the Lottery Funds sooner, address capital <br />project needs by providing the ability to start projects quickly, and replace the FY2010-11 capital <br />funding reductions at the State and County level. This change in policy will be reviewed on an <br />annual basis by the Board of County Commissioners and Board of Education as the Lottery <br />Funds are allocated to the school district by the State. <br />