Agenda - 11-19-1996 - 9b - Laserfiche WebLink

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t ' ORANGE COUNTY BOARD OF COMMISSIONERS _ Action Agenda Item No. 94 ACTION AGENDA ITEM ABSTRACT Meeting Date: November 19, 1996 SUBJECT: Long Range School Capital Funding DEPARTMENT: Manager/Budget PUBLIC HEARING: YES: NO: x BUDGET AMENDMENT: YES: NO: x ATTACHMENT(S): INFORMATION CONTACT: Revised Capital Funding Policy Rod Visser, ext 2300 Previous Capital Funding Policy Sally Kost, ext 2151 TELEPHONE NUMBERS: Hillsborough -732-8181 Chapel Hill -968-4501 Durham -688-7331 Mebane -227-2031 PURPOSE:. To adopt a revised capital funding policy for school and County capital projects; to endorse a conceptual framework for the formation and activities of a Citizens Capital Needs Advisory Committee. BACKGROUND: School Capital Funding Policy Since early Summer 1996,the Budget Director has been working with staff of the two school systems to develop options for funding the long-term capital needs of both school systems. In August 1996, the Budget Director presented an initial report citing several possible approaches. Following Board comments and direction, and several refinements to the capital funding plan by the Budget Director, the Board of Commissioners at the October 15, 1996 meeting approved the funding approach represented in Option 5B. This option,which is summarized at Attachment 1, includes a combination of sales tax and property tax revenues for capital projects. The current policy (Attachment 2) provides that 80 percent of the Article 40 one half cent sales tax revenue and 60 percent of the Article 42 one half cent sales tax revenue is dedicated to School projects, with the balance of this revenue dedicated to County projects. Under current practice, pay-as-you-go funds are allocated between the County and the Schools, with funds to pay debt service on 1977 and 1988 school bonds then subtracted from the annual pay- as-you-go allocations to the schools. Also under current practice, any payments for private placement financing are subtracted from a school system's allocation(i.e. from Chapel Hill-Carrboro for McDougle Elementary).