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b. School Fundina John Link said that they are focusing tonight on the expenditure side of the budget and not the revenue side. He said that most of the projects were discussed, anticipated, and approved by the voters of Orange County in previous bond votes. The blue sheet, item #1, includes construction of Carrboro High School, Gravelly Hill Middle School, and the two senior centers at a cast of $29 million. To pay the debt on this amount of money will cost $2.2 million, which is almost two cents on the tax rate. Item #2 includes alternative financing issued during 2005-06 such as Animal Services Facility, CHCCS renovations, conservation easements, County equipment and vehicles, Meadowlands Annex, OCS Gravelly Hill Middle School {construction overruns and County share of water and sewer), Seymour Senior Center, and Sportsplex. The total for schools and County is $24.8 million, and the debt impact is $2 million. Item #3 is the anticipated alternative financing in fiscal year 2006-07. This includes cast overruns for Carrboro High School, CHCCS Elementary #10, CHCCS renovations, Justice Facility construction and new Courthouse renovations, and Orange County Satellite campus of Durham Technical Community College (Orange County share of construction). The total of this is $38.5 million and the impact this coming year is $738,940. The actual impact in terms of payments for all three items is $3.7 million. This is on line 1 on the yellow sheet, which is the Net Increase in Debt Service for County and School Projects. Commissioner Gordon asked about the anticipated alternative financing and if this was the total amount for Elementary #10. Donna Dean-Coffey said that this amount was included in the 2001 bond referendum. There have been no discussions about the total casts since the bids have come in. Commissioner Gordon said that a decision needs to be made soon. She said that it would need to be funded this year. John Link said that Elementary #10 could not be funded this year because the County is close to its debt ceiling. It may be possible to pursue a timetable whereby the school system can begin the project. Finance Director Ken Chavious said that the issuance of debt depends on the construction and the cash flow schedule, and it can be split over fiscal year periods. Commissioner Carey said that he recalls that the items already on the debt issuance schedule get the County pretty close to the cap. Donna Dean-Coffey said that in 2008-2009 it goes down slightly and in 2009-2010 it goes down further. Rod Visser showed a chart of debt service. The projection calls for opening of Elementary #10 in 2007, but realistically it will be 2008-2009. Chair Jacobs said that the budget drivers include money for planning Elementary #10. Commissioner Gordon made reference to the April 10t" agenda, item 10-a, which was the SAPFO Technical Advisory Committee Report, and that the projected overcapacity at the elementary level in CHCCS during 2007-08 may lead to suspension of the issuance of CAPS until Elementary #10 opens. She said that if it is not funded, then the SAPFO will kick in and certificates to build will not be issued until the school opens. She thinks that, besides the planning, the Board should think about haw to address this. She asked to flag this for discussion. Commissioner Carey said that if this bumps the County up against the debt limit, there is no room to add anything. He thinks that the $12.8 million should be enough to get started. Chair Jacobs said that the $12.8 million was the agreed cost for an elementary school, which is why they are reviewing construction standards because construction costs have jumped up almost 50°~.