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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: November 16, 2010 <br />Action Agenda <br />Item No. 7 - Q <br />SUBJECT: Orange County Schools Board of Education Resolution Regarding the County's <br />Capital Funding Policy and the Use of Lottery Funds <br />DEPARTMENT: Financial Services PUBLIC HEARING: (Y!N) No <br />ATTACHMENT(S): <br />Orange County Schools Board of <br />Education Resolution <br />INFORMATION CONTACT: <br />Frank Clifton, County Manager, 919-245- <br />2306 <br />Clarence Grier, Financial Services <br />Director, 919-245-2453 <br />Patrick Rhodes, Superintendent, Orange <br />County Schools, 919-732-8126 <br />PURPOSE: To consider approving a request from the Orange County Schools Board of <br />Education to dedicate Lottery proceeds to repay debt service and substitute general fund <br />revenues for Fiscal Year 2010-11 approved capital projects in order to expedite the process of <br />requesting lottery proceeds from the State and the contracting of approved capital projects. <br />BACKGROUND: On November 1, 2010, the Orange County Schools Board of Education <br />(Board of Education) approved a resolution requesting that the County modify its Capital <br />Funding Policy by a) applying accumulated lottery funds for debt service payments, provided an <br />equal amount of funding is transferred to the district's FY 2010-11 Gapital Investment Plan, and <br />b) permitting current year withdrawals immediately after the State's quarterly lottery fund <br />deposit. <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 $895,575. The Board of Education requests the County apply for the $895,575 <br />Lottery Fund balance to be used for debt payments and provide an equal funding amount to the <br />district's Capital Investment Plan as additional Pay-as-You-Go funds. Immediate access to <br />Lottery Funds will allow the Board of Education to draw down the Lottery Funds sooner and <br />address capital project needs by providing the ability to start projects quickly. The Board of <br />County Commissioners is reviewing the requested changes in the Capital Funding Policy. <br />On October 5, 2010, the Board of County Commissioners approved the Chapel Hill - Carrboro <br />City Schools Board of Education request to modify the school system's Capital Investment Plan <br />