Orange County NC Website
7 <br /> 1. Use the Chapel Hill/Carrboro City Schools District Tax for Capital Financing <br /> or Debt Service. One cent on the District Tax (after revaluation) will generate <br /> around$400,000 in 1997-98. <br /> 2. Increase property taxes. <br /> 3. Reallocate funds between the County and the Schools. Although an option, the <br /> impact on planned County projects and equipment/fleet replacement schedules <br /> would be severe. <br /> Orange County Schools <br /> 4. To reduce the fiscal impact on Orange County Schools, one option is to <br /> dedicate funds after the debt service payment "peak year." The peak year of <br /> existing and new general obligation debt payments is 1998-1999, when debt <br /> service is about $11.2 million. Each year after this peak year, the total debt <br /> service payment falls by about $340,000 per year. If these* funds were <br /> earmarked for Orange County Schools, over the nine year planning period, an <br /> additional $7.1 million would be added to help offset the $13.5 million <br /> reduction. <br /> Currently Approved Proposed Difference <br /> for 1997-2006 and Years 97-06 <br /> Recurring Capital <br /> Orange County $29,952,410 $23,510,963 ($6,441,447) <br /> Schools <br /> 5. To further reduce the funding shortfall when compared to the current funding <br /> for the Orange County Schools of the Option 5, the Schools could modify the <br /> budget for the facility. The proposed $40 million bond includes $14.5 million <br /> for a new elementary school. If the scope of the elementary school project is <br /> modified and the budget is reduced, these savings could be used for Orange <br /> County Schools capital projects. <br /> Also note that the revenues estimates used in developing these funding options are <br /> conservative. It is likely that actual sales tax revenue and impact fees received will <br /> provide additional funding for capital projects. <br /> Needs Assessment <br /> As was the process for the 1988 and 1992 bond referenda, a citizen's committee to study <br /> the needs of the Schools and the County is likely. In addition to studying the actual <br /> facility needs, careful attention needs to be given to the Countywide recreation and parks <br /> issue and the issue of affordable housing. Based on the outcomes of this needs <br /> assessment, the funding options and plans as shown in this report could be substantially <br /> altered. <br />