2001 NS County Mgr - Smith Middle School Use and Lease Agreement

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1 `b from the Town of Carrboro. The estimated project cost is $450,000, which would translate into $225,000 each from Carrboro and Orange County. The Board has decided in concept to pursue a first phase of this project with $75,000 provided by the Town of Carrboro and with a $75,000 match from the County. Before this money is appropriated, however, the County should receive and approve a written proposal concerning this project and its associated costs. Long -Term / Reserve Fund Recommendations As of December 1, 1999, the School /Parks Reserve Fund balance is $2.38 million, with $2.24 million in revenue to the fund and $0.14 million in accrued interest. The fund has received one - cent on the tax base each year in revenue, which translates into an estimated $682,000 in FY 99 -00. In June, the Board changed the future funding allocation from one cent to 1/3 cent on the tax base per year, with 2/3 cent going to county capital facilities needs. A. It is recommended that the School /Parks Reserve not be used for the current needs, and instead be designated for longer -term land acquisition needs, with the following parameters: 1. The creation of the Parks Council is currently deferred pending discussion of the Joint Master Recreation and Parks Work Group report. 2. The interest accumulated in the Reserve Fund should be available for possible use to address facility development needs not addressed through bonds or other means. There is currently an estimated $147,000 in interest accrued to this fund. However, County funding assistance for facility development should be contingent the Board of Commissioners having a say in the development of the site and that value engineering is pursued for the project. 3. The existing $2.24 million in the fund (minus the interest above) should be retained for future land acquisition. Bond funds and other sources should be used for facility development. 4. In the interest of maintaining maximum flexibility for the Board of Commissioners, the school /recreation nexus need not always be readily apparent at the time of acquisition. 5. The Committee recommended that future one -cent allocations to this fund be split and re- allocated as follows: a. 50% to County capital facility needs (this will amount to approximately $341,000 in FY 99 -00) b. b. 50% retained for land acquisition in the reserve fund (also $341,000 in FY 99 -00) Note: In June, the board changed the future funding allocation from one cent to 1/3 cent on the tax base per year, with 2/3 cent going to county capital facilities needs.