Agenda - 08-20-1996 - X-A - Laserfiche WebLink

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Appendix 1.Summary School 4 Capital Projects-Board Policy g ' ,Y Summary - School Capital Projects Board Policy The following is a summary of the Board of County Commissioner policy for calculating the funding level for School Capital Projects, including the amount for debt service. A. Source of Funds for School Capital Projects 1. 80 percent of the first one half cent sales tax (statewide collections) is earmarked for School capital. For 1996-97 this amount is estimated to be $2.8 million. (State Statute requires that 30 percent of funds from this source be used for school capital projects/debt service.) 2. 60 percent of the second half cent sales tax (statewide collections). For 1996-97 this amount is estimated to be $2.1 million. (This is the level required by State Statute to be used for school capital projects/debt service.) 3. Property taxes equivalent to two cents on the General Fund property tax rate. For 1996- 97 this amount is estimated to be$981,000. 4. Impact Fee Revenue. The Chapel Hill-Carrboro $1,500 impact fee on each new residential dwelling constructed in the district is estimated to generate $855,000 for 1996- 97. The $750 impact fee in the Orange County District is expected to generate $337,500 for the 1996-97 fiscal year. 5. State Public School Building Funds - In 1987 The General Assembly increased the corporate income tax from six percent to seven percent. One half of this increase, less $2.5 million, is used to help fund school capital improvements. The funds are allocated to counties based on student enrollment. For Orange County, the amount anticipated to be available during 1996-97 is$515,290. 6. The equivalent of one cent on the General Fund Property Tax Rate is set aside in a School Capital Projects Reserve Fund. This policy was established in 1995-96. The amount anticipated for 1996-97 is around$490,000. 7. A total of $800,000 in General Fund Property Tax Revenue is earmarked to pay for the debt service on the 1977 School Bonds with the remaining balance being used to fund school capital projects. In 1996-97 the debt service payment on the 1977 School Bond is $513,000; therefore, $287,000 is available for School projects. This debt will be retired in 1998-99. 8. The Debt Service on the General Obligation Bonds authorized by the voters in 1992 will be$4.85 million. This is paid from Property Tax Revenue. B. Adjustments From the revenue sources listed in "A"above, the following adjustments are made: