Agenda - 03-01-2007-1 - Laserfiche WebLink

Browse Search

oti27i2oo~ Option 2. Commissioners approve funding for Elementary #10 at requested $24.3 million ($1 million above the amount presently included in the County's current debt issuance plans for Elementary #10 and Twin Creeks Infrastructure) and approve a project funding plan whereby Chapel Hill Carrboro City Schools uses other funding source(s) to cover the project cost overruns. ~'~ t2> Pros/Advantages Cons/Disadvanta es • Anticipated school opening date remains • Timing constraints do not allow opportunities to at August 2008 (although not a explore alternative construction options such as uarantee) Construction Mana er at Risk • Complies with SAPFO Level of Service • Little or no understanding of project cost prior to (LOS) for Elementary rade levels awardin contract • Allows for K through Grade 3 class size .Requires little fiscal discipline on behalf of school reductions (from 1:23 to 1:21 students district and County er class for both school districts • Applies School Construction Standards principles including sustainable design • Displays little political will for cost control features • Allows County to stay within its debt • Blame of tax rate increase goes to Commissioners limitation and not Board of Education • Tax burden of $1 million increase in project budget shared by those residents • Limits opportunities for County to be involved with within the School's Special District and project and costs not to residents outside of the District • To school supporters, presents appearance of fully funding education if • Negates negotiations with bidders project funded at CHCCS requested level • Widens the funding inequity between CHCCS and OCS • Increasing taxes seen as a burden by many - particularly the senior population who have no children in the schools stem • Presents appearance of fully funding education if project funded at CHCCS requested level • Sets an expectation for fully funding future projects; keeping in mind that SAPFO projections (with K-3 class size at 1:21) identify the need for Elementary #11 to come on-line in school ear 2010-11 • Historically, CHCCS has requested increases in the special district tax to fund opening of new schools. According to budget information presented by CHGCS staff at the Board of Education's Annual Planning Conference in mid-February 2007, new operational costs associated with opening Carrboro High totals $1.9 million (approximately 2.43 cents on the district tax rate) and programming of Elementary #10 totals $237,000 (approximately 1/3 of a penny on the district tax rate) for fiscal year 2007-08. c2> (1) Examples of options that Commissioners might consider in funding the project overruns include one-time increase in special district tax, use of the district's pay-as-you-go capital funding stream and/or use of the district's fund balance or some combination of these revenues. (2) One-cent on the CHCCS special district tax anticipated to generate $793,000 for fiscal year 2007-08. Current year CHCCS special district tax rate equals 18.85 cents per $100 valuation.