ORD-2004-100 - Capital Project Ordinance - Chapel Hill-Carrboro City Schools High School #3

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(~J MEMORANDUM TO: Neil Pedersen, Superintendent, CHCCS FROM: John Link, County Manager DATE: June 3, 2004 RE: Appropriation of Funds for Third High School Site In response to your June 2 memo on this subject, let me offer two scenarios for your consideration regarding the appropriation of additional funds for land acquisition for the third high school. The first scenario that I think would be acceptable to the County Commissioners would be the redirection to high school land acquisition of a portion of 2004-OS pay-as-you-go funds from some of the projects mentioned in the CHCCS proposed 2004-14 CIP. I understand the view expressed in your memo yesterday that such an approach would lead to significant constraints on capital improvements that could be made next year, especially since a substantial portion of 2004-OS capital funds are already committed to mobile classrooms. That said, the attached table outlines an approach that County staff could pursue with your staff to use 2004-OS pay-as-you-go funds for the additional cost of the Glover property. The second scenario that I think would be consistent with the provisions of the interlocal agreement regarding the third high school would involve the appropriation of accumulated school impact fees. The base project budget of $27.8 million included planned appropriations of $6.1 million in impact fees that had already been received through fiscal year 2002-03. Of that amount, $2,038,700 has already been appropriated through the High School #3 Capital Project Ordinance to address land acquisition and professional design fees. That leaves a balance of over $4 million in previously accumulated impact. fees that is available "in the bank" and ready to be appropriated. We view these impact fees as apay-as-you-go revenue source. An appropriation of $1,142,000 of these funds that are already on hand will also not adversely affect the County's operational cash flow. The use of accumulated impact fees now could be made up to the project budget later through your suggested designation of a portion of CHCCS's designated 2006-07 and 2007-08 pay-as-you-go funds. Under either of these scenarios, I am prepared to recommend to the Board of County Commissioners that they adopt at their June 23 meeting an updated capital project ordinance for High School #3 that would appropriate the additional funds you have cited as needed to complete the acquisition of the Glover property. Please let me know how your Board prefers to proceed. cc: Orange County Board of Commissioners Rod Visser, Assistant County Manager Donna Dean, Budget Director Ken Chavious, Finance Director Geof Gledhill, County Attorney