Agenda - 06-04-2015 - 1 - Laserfiche WebLink

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general obligation bonds and private placement loans. Noah Carolina statutes require counties to pay for school related capital items such as acquisition and construction of facilities. In instances where counties borrow funds to pay for such items, the State mandates counties to repay the debt. The amount of money counties borrow for school related projects is discretionary and varies from county to county. • The recommended budget includes continuing the Fair Funding allocation of $988,000 which represent funds, split equally between the two school districts ($494,000 to each district), to offset costs of safety and health services such as School Resource Officers and School Nurses. The State does not mandate counties to provide funding for these resources. • The recommended budget provides for $746,444 to continue the Commissioners' longstanding commitment to providing school health nurses at each school. This funding level is slightly increased from the FY 2414 -16 levels. • The Sheriff plans to continue providing School Resource Officers to support Orange County Schools. The Orange County Schools contributes $180,000 annually towards these expenses, and the annual net value of this Board of County Commissioners' commitment for FY 2015-16 totals approximately $291,000. Both School Districts requested increases in per pupil funding for FY 2015 -16. Orange County Schools requested an increase of $81 per pupil in order to receive approximately the same current expense funding as received in FY 2014 -15 due to the loss of 172 students, and Chapel Hill- Carrboro requested an increase of $302 per pupil in order to provide them with approximately $3.5 million in additional current expense funding as received in FY 2014 -15. To fully fund the Chapel Hill- Carrboro City Schools request will require additional revenues from a property tax increase or a reduction in County funded services elsewhere. The information below illustrates the property tax rate necessary to generate revenues to address the current expense requested by Chapel Hill- Carrboro City Schools in excess of the current increase recommended; the same per pupil increase would apply to Orange County Schools: Tax Increase 1 ce nt 2 cents 2.87 cents *Based on 24,444 Students Property Tax Revenues Generated $176557660 $373117320 $477517744 Per Pupil Equivalency $82.62 $165.24 $237.11 The required tax rate increase would be 2.87 cents to fully fund the budget request submitted by Chapel Hill- Carrboro City Schools, and would provide Orange County Schools with $1,849,695 more than requested. Additionally, the Chapel Hill- Carrboro City School District has requested the Board of County Commissioners consider an increase in the special district property tax rate to fully fund their