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2 <br />water and sewer infrastructure to Twin Creeks would total $$23.3 million. This was in <br />accordance with the County's September 14, 2006 debt issuance plans. Commissioners further <br />agreed to allow CHCCS Board of Education the flexibility to choose from where the $1 million <br />additional required funding would come. On March 8, 2007. The CHCCS Board of Education <br />held a special meeting to agree on how it would fund the $1 million additional funding required. <br />The Board chose to appropriate $500,000 from its-fund balance and $500,000 from the district's <br />anticipated fiscal year 2008-09 pay as you go revenues. Attachment 2 of this agenda abstract <br />offers a historical snapshot of the CHCCS fund balance. <br />Attachment 3 details CHCCS Elementary School Membership Projections. <br />FINANCIAL IMPACT: On September 14, 2006, the Board approved debt issuance plans for <br />individual County and School projects totaling $96.2 million ($92.2 million in non-enterprise fund <br />debt plus $4 million in enterprise fund debt). In addition to completion of Carrboro High School <br />and a number of County related projects, those plans included $22.1 million for Elementary #10 <br />plus $1.2 million for the County's share of water and sewer infrastructure to the Twin Creeks <br />school/park campus. <br />The anticipated debt service associated with the issuance of $23.3 million in debt totals <br />$602,617 for the upcoming 2007-08 fiscal year (interest only) and $1,152,807 in the following <br />fiscal year 2008-09 (principal and interest). Assumptions used in calculating these amounts <br />included a 20-year fixed principal loan at 6 percent annual interest rate. Based on staff <br />analysis, the anticipated tax rate impact in fiscal year 2007-08 equals $.52 cents per $100 <br />valuation followed by $.90 cents per $100 valuation in the following fiscal year. <br />Historically, CHCCS has requested increases in the special district tax to fund opening of new <br />schools. According to budget information presented by CHCCS staff at the Board of <br />Education's Annual Planning Conference in mid-February 2007, new operational costs <br />associated programming of Elementary #10 totals $237,000 (approximately 1/3 of a penny on <br />the district tax rate) for fiscal year 2007-08. At this point, the district has not projected annual <br />operational costs associated with opening of Elementary #10. <br />Budget staff will bring corresponding a capital project ordinance reflect Board of Commissioner <br />March 13, 2007 action to Commissioners for approval at an April 2007 meeting. <br />RECOMMENDATION(S): The Manager recommends that the Board of County <br />Commissioners: <br />1. Approve County funding of funding of CHCCS Elementary #10 including water and <br />sewer infrastructure for Twin Creeks at $23.3 million; <br />2. Approve the CHCCS Board of Education plan for funding, from the district's revenue <br />stream, the additional $1 million required to complete construction of Elementary #10 <br />3. Request the CHCCS Board of Education engage County staff including Jeff Thompson <br />in active value engineering of Elementary #10 <br />