Agenda - 06-21-2016 - 5-a - Minutes

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14 1 Recurring capital for both School districts remains the same as the prior year appropriation of 2 $3 million dollars. Recurring capital pays for facility improvements, equipment, furnishings, and 3 vehicle and bus purchases. State statutes mandate counties to fund recurring capital. However, 4 the amount of money counties allocate to this function is discretionary and varies from county to 5 county. 6 7 Long Range Capital 8 The long range/pay-as-you go capital expense for the local school districts increases by 9 $74,497, to a total appropriation of $3,799,346 million. Long-Range Capital supports school 10 capital projects through the County's Capital Investment Plan (CIP). Capital projects are funded 11 through a combination of State and local bonds, non-bond financing and pay-as-you-go funding 12 sources. Pay-as-you-go funding includes dedicated half-cent sales tax revenues and property 13 tax earmarked under the Board's April 5, 2011 Capital Funding Policy. The Capital Policy also 14 allows School Construction Impact Fees to offset School related debt service. Similar to Local 15 Current Expense funding, the amount of money counties allocate to long-range capital 16 expenditures is discretionary and varies from county to county. 17 18 Per the April 5, 2011 Commissioner approved County Capital Funding Policy, it is the intent of 19 the Board of County Commissioners to continue a capital funding policy that reflects the 20 implementation of the Board of Commissioners' resolution of November 16, 2004 that the 21 Board "does hereby adopt in principle a policy of allocating a target of 60 percent of capital 22 expenditures for school projects and 40 percent of capital expenditures for county projects over 23 the decade beginning in calendar year 2005" The Policy further states, "However, there will be 24 times when the County will be bound fiscally and unable to achieve full funding. During those 25 times, Commissioners may find it necessary to depart from the Policy." 26 27 School Debt Service 28 The recommended budget provides for $15,372,383 in School Related Debt Service, which 29 represents repayment of principal and interest on School related debt, including general 30 obligation bonds and private placement loans. North Carolina statutes require counties to pay 31 for school related capital items such as acquisition and construction of facilities. In instances 32 where counties borrow funds to pay for such items, the State mandates counties to repay the 33 debt. The amount of money counties borrow for school related projects is discretionary and 34 varies from county to county. 35 36 Health and Safety Service Contracts (Replaces Fair Funding) 37 The recommended budget replaces the Fair Funding program with Health and Safety Service 38 Contracts. The Fair Funding program was created in FY 2006-07 to direct County funds to 39 particular purposes and to provide an equal amount of funding to each District for those 40 purposes. Under this new model, the County will contract with each School District to provide 41 and fund School Resource Officers in each middle school and high school, and provide one 42 public health nurse for each school facility. The Districts currently use a variety of funding to pay 43 for these services. This budget will fully fund each District for health and safety services by 44 adding approximately $1.4 million to the existing $1.9 million formerly used in the Fair Funding 45 program. 46 47 State Mandates for Retirement and Health Insurance 48 In addition to the funds recommended for Health and Safety Service Contracts and Charter 49 Students, the recommended budget includes a recommendation to fund State mandated