Agenda - 11-15-2011 - 8a - Laserfiche WebLink

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2 The County Manager proposed and the Board of County Commissioners approved in the FY 2011 -12 General Fund Operating Budget and in the 2011 - 2016 Capital Investment Plan (CIP) a combined amount of $1,163,196 of funding for Elementary School #11. This funding was comprised of $500,000 of funds from the CIP to fund abatement and deconstruction costs of the existing building on the property. An additional $663,196 of the County's General Fund Balance was reserved to fund any excess deconstruction costs of the existing building on the property. The County CIP also includes full funding of Elementary School #11 in FY 2012 -13 when a majority of the construction for the new school will be completed. The current project schedule plans for the school to open in the August 2013. The total estimated cost of the project would be $21.4 million. CHCCS will utilize a maximum of $2.1 million dollars of its fund balance to fund the construction costs incurred prior to the County receiving the financing for the project. The respective Boards of both CHCCS and the County will consider reimbursement provisions to reimburse any construction costs incurred before receiving the funding for the project. The County would cover any interim cost in excess of the CHCCS fund balance reserved for the project if financing for Elementary School #11 is delayed (See Attached Funding and Cash flows). The construction and funding timeline for Elementary School #11 is as follows: • Deconstruction — October 2011 through March 2012 Financing of the project — April and May 2012 • Construction - April 2012 through July 2013 Opening - August 2013 Although the official SAPFO student enrollment numbers will not be received until November 15, 2011, and may not be over the SAPFO limit, the County plans to issue the financing to construct the school no later than April or May of 2012. Interest rates are currently favorable to proceed with the financing and funding of the school. The amount of the financing is expected to be approximately $20,575,000. The debt service will be approximately $1,745,000 per year beginning in FY 2012 -13. The debt service would equate to 1.13 cents on the current tax rate. Additionally, CHCCS anticipates requesting an estimated increase in its special district tax rate of approximately 2 to 3 cents to fund the additional operating cost of Elementary School #11 in the FY 2013 -14 operating budget. FINANCIAL IMPACT: There is currently no financial impact of approving the project. Costs will be incurred as the project moves forward with the construction of the school as discussed in the Background section of the abstract. RECOMMENDATION (S): The Manager recommends that the Board review and discuss information related to the construction and funding of CHCCS Elementary School #11 and authorize staff to proceed with next steps. A capital project ordinance for the project will be provided to the Board as a future budget amendment item.