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(Adopted 12/7196) <br /> (Revised 2/3/98) <br /> Orange County Board of Commissioners <br /> Capital Funding Policy <br /> A. Source of Funds <br /> The following sources of funds will be allocated for Capital Projects and Debt Service: <br /> 1. All proceeds form the Article 40 and Article 42 one half sales tax. <br /> The North Carolina General Statutes require that 30 percent of the Article 40 and 60 <br /> percent of the Article 42 sales tax revenue be earmarked for school capital projects or <br /> debt service on debt issued for school capital projects. <br /> 2. Revenue from the property tax as follows: <br /> • $800,000 <br /> • The equivalent of 2.7 cents on the tax rate based on valuation as of 1996-97. <br /> • The amount necessary to retire the 1992 School Bonds. (In 1997-98,this amount is <br /> $4.7 million.) <br /> • The amount of the reduction in the Human Services function of the County budget <br /> (equivalent of one half of one percent of the budget or$50,000)in 1994-95 for <br /> automation projects in Human Services. <br /> • Utilities Extension Fund—This amount may vary in that it is based on the increase <br /> in property tax base as a result of expenditures in the Utilities Extension Capital <br /> project. The amount currently planned is $35,000 for 1997-98 and$25,000 for each <br /> year thereafter. <br /> 3. Impact Fees for each school system. <br /> 4. Public School Building Fund <br /> 5. Other revenues that are restricted including,payment-in-lieu, grant funds,rental revenue <br /> and inmate fees as a result of the new jail addition. <br /> B. Debt Service <br /> Prior to funds being allocated for specific projects, all debt service, including private <br /> placement financing will be subtracted from the unrestricted funding sources. As an <br /> exception,the Orange County Schools are responsible for funding directly from their pay-as- <br /> you-go capital allocations,that portion of the cost of a new high school in the Orange County <br /> School system beyond the$12.5 million bonds approved by voters for that school in <br /> November 1997. <br /> C. Allocation <br /> All sources of unrestricted revenue, less debt service, is then allocated between County and <br /> School projects based on 50 percent of the net amount for School projects and 50 percent of <br /> the net amount for County projects. Funding between the two school systems will be <br />