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

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Chapel Hill -Carrboro City Schools Lincoln Center, Merritt Mill Road Chapel Hill, NC 27516 Telephone: (919) 967-8211 Fax: (919) 933-4560 Neil Pedersen, Superintendent Stephen A. Scroggs, Assistant Superintendent for Support Services To: Pam Jones, Director of Purchasing From: Stephen A. Scroggs, Assistant Superintendent Re: Sales Tax Refund for Carrboro High School Date: January 3, ?008 The budget for Carrboro High School includes $500,000 of anticipated sales tax refunds. School systems do not qualify for sales tax refunds associated with construction projects. Therefore, in order to recoup the sales tax, ownership of the site and payment of the construction bills was transferred from the Chapel Hill-Carrboro City Schools to Orange County. This legal transaction is used by school districts in order retain the large sums of money associated with sales tax. While the Carrboro High School budget included 5500,000 of anticipated sales tax refunds, Ken Chavious informed us last Fall that more than 5900,000 was refunded to the County as part of the high school project. The County and School District should be commended for another successful collaboration that benefits all the citizens of Orange County. The school system is requesting approval to appropriate the approximately S400,000 of additional sales tax refunds. These funds will be used for Carrboro High School needs that were deferred during construction. The project's extensive offsite work resulted in more cost than initially planned. Increased intersection improvements associated with the traffic light and paving the entire Rock Haven Road are examples of large unanticipated expenses. These additional costs eliminated all contingency funds and required that some areas of need be cut. In addition, the school district applied 42 million dollars to the project from Pay As You Go funds and allocated another $_500,000 from undesignated fund balance to help complete the project. Projects that require attention and would be addressed with the 5400,000 include the following: • Additional furniture that was reduced due to a lack of a senior class • Performing Arts equipment and supplies, to start a drama program • Spectator stands for the competition field • Additional textbooks for the senior class Thanks for you help in this matter. Please let me know if you need any additional information.