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3 <br /> Long Range School Capital Funding Options <br /> Report to Orange County Board of Commissioners <br /> August 20, 1996 <br /> Background <br /> One of the actions identified as part of the Board of Commissioners' Ten-Point Plan, <br /> approved by the Board last Spring, was for County staff to work with the School <br /> Systems' staff to develop long range capital funding options and to report these options to <br /> the Board by August, 1996. <br /> County and School staff have met over the past two months to discuss various funding <br /> options. The options presented in this report are those identified by County staff. The <br /> comments of the School staff are included in the appropriate section of the report. <br /> The Schools have identified the need for the following new facilities: <br /> Chapel Hill/Carrboro City Schools Elementary School (#8) $14,100,000 <br /> Chapel Hill/Carrboro City Schools East CH High Addition $11,800,000 <br /> Chapel Hill/Carrboro City Schools Middle School (#4) $22,500,000 <br /> Orange County Schools Elementary School $14,500,000 <br /> Total $62,900,000 <br /> This report includes several options to fund these facilities, including one option, which <br /> tests many of the assumptions of the present capital policy for funding both School and <br /> County projects. One option, which includes a$40 million bond referendum in Fall 1997, <br /> is the primary focus of this report. <br /> In developing these financing options for new school facilities, the following assumptions <br /> were made: <br /> • The Chapel Hill/Carrboro City Schools Elementary School #8 will be funded by <br /> borrowing funds through private placement financing with funds drawn down in Fall <br /> 1996 and Winter 1997. The Fall 1996 schedule will provide funds for architectural <br /> fees and planning costs as requested by the Chapel Hill/Carrboro City Schools. This <br /> timetable will also provide funding for the first phase of construction. <br /> • The State Bond Referendum in November 1996 will pass. This bond authority will <br /> provide $10,995,840 for the Chapel Hill/Carrboro City Schools and $5,980,160 for <br /> the Orange County Schools. The State bond referendum is a major component of <br /> Option 5 in this report. It is this State-wide bond that allows a funding plan for new <br /> school construction to be proposed that would not increase the general fund property <br /> tax rate. <br />