Agenda - 04-08-2008-3 - Laserfiche WebLink

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Carrboro City Schools, the district has requested to use $400,000 of the unanticipated revenue to cover the additional items for Carrboro High including: ~k Additional furniture ~. Performing Arts equipment and supplies to start a drama program -~k Spectator stands for the competition field ~~ Additional textbooks for the senior class Background on Sales Tax Reimbursements to Schools Prior to 2005, NC General Statute 164.4(c) allowed local school districts, along with other governmental entities, to claim and receive refunds for local sales taxes they paid when making purchases throughout the year. During the 2005 legislative session, the NC General Assembly amended the Statute by eliminating local school districts from the entities eligible to receive sales tax reimbursements. The result of the legislative action was that the State decided to retain, within its coffers, the monies it had historically reimbursed to local school districts with the ultimate outcome being a substantial revenue loss for local school districts across the state. Recognizing that this action would have a significant negative impact on revenue available for capital projects for both Orange County and Chapel Hill Carrboro City Schools, the Boards of Education and County Commissioners directed staffs and attorneys to explore options that local officials might pursue to circumvent the situation caused by State legislative action. Using a November 28, 2005 memorandum from the focal Government Commission (Attachment 2) which clarified how, under certain conditions, a county may assume responsibility for the construction of school facilities and the purchase of supplies and materials, Orange County bond counsel drafted an interlocal agreement to resolve the sales tax reimbursement issue. On December 13, 2005, the Board of County Commissioners approved interlocal agreements with both school systems, and each district approved their respective agreement in January 2006. The interlocal agreement provides for: 1. Conveyance of property by the School Board to the County; 2. Immediate leasing of conveyed property back to the School Board, so that the property can continue to be used for school purposes; 3. School Board to undertake the contemplated projects as the County's agent, including entering into design and construction contracts; 4. County to administer the payment of funds to contractors; and 5. Re-conveyance of property back to the School Board once the project is complete. Future Policy Considerations In addition to the County's School Construction Standards, the Board of County Commissioners has the following policies and interlocal agreements in place to govern school and county capital planning, funding, and spending: Interlocal Agreement Concerning Capital Projects for Public Schools, adopted December 13, 2005 (Attachment 3) (as outlined above) Policy on Planning and Funding School Capital Projects, adopted November 21, 2000 (Attachment 4)