Agenda - 10-17-2006-5e - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: October 17, 2006 Action Agenda Item No. ~ - P_.. SUBJECT: Approval of Chapel Hill-Carrboro City Schools Alternative Financed Capital Project Ordinances for School Renovation Projects DEPARTMENT: Budget PUBLIC HEARING: (Y/N) No ATTACHMENT (S): Attachment 1. Chapel Hill-Carrboro City Schools Alternative Financed Renovation Capital Project Ordinances INFORMATION CONTACT: Donna Dean Coffey 245-2151 PURPOSE: To approve Chapel Hill-Carrboro City Schools (CHCCS) alternative financed capital project ordinances for school renovation projects. BACKGROUND: During the 2001 Capital Needs Advisory Committee meetings, CHCCS identified the need for $11.1 million to renovate older school facilities. Commissioners agreed to fund the renovations with alternative financing rather than include the items on the 2001 bond referendum. The County's debt issuance plans, originally approved by the Board in September 2002, have planned for debt financing the renovations. During the planning stages of Carrboro High School, the Chapel Hill-Carrboro Board of Education requested, and the Board of Commissioners approved, a plan that would defer $2.5 million in renovations of older facilities towards construction of the new high school, leaving $8.6 million for renovations. In spring 2006, the County issued $22 million in alternative financing which included $5.1 million for CHCCS renovation projects. At the September 14, 2006 work session, Commissioners approved plans that allowed for $3.5 million in debt issuance this fiscal year to complete renovation work at CHCCS. Attachment 1 of this agenda abstract contains the CHCCS renovation related capital project ordinances, and allows CHCCS to complete the associated renovation work this year. FINANCIAL IMPACT: Alternative financing for CHCCS renovation projects totals $8.6 million. Anticipated debt service associated with CHCCS' portion of the two financing arrangements totals $686,950 in fiscal year 2007-08 or the equivalent of .55 cents on the tax rate. RECOMMENDATION (S): The Manager recommends that the Board of County Commissioners approve the attached Chapel Hill-Carrboro City Schools (CHCCS) alternative financed capital project ordinances for school renovation projects.