Agenda - 05-15-2007-4h - Laserfiche WebLink

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all of the funds ($1,065,593 plus April and May allocations anticipated to be $350,000 based on the average quarterly deposits this fiscal year) to Orange County. Given the history of the State holding these funds in prior years along with uncertainty of the State's current and future fiscal condition, staff recommends that the Board pursue the draw down of these funds as quickly as possible to ensure that the County receives its reimbursement prior to the end of our fiscal year on June 30, 2007. The attached applications request that the State release all available funds for Orange County to offset debt service related to Carrboro High.School, Rashkis Elementary School and Cedar Ridge High School. Staff anticipates both Boards of Education to approve their respective. applications at one of their May 2007 meetings. NC Education Lottery Funds In August 2005, the NC General Assembly approved the NC Education Lottery. Based on recommendations from the NC Association of County Commissioners last spring, the Board approved a funding plan for the current fiscal year that anticipated the receipt of $2.4 million in NC Education Lottery Funds. For the current fiscal year, Commissioners dedicated the Lottery proceeds to offset school related debt service. (Future years Lottery proceeds will be budgeted in accordance with the County Capital Funding Policy adopted by the Board of County Commissioners on Apri124, 2007. Throughout the fiscal year, staff has updated the Board on the anticipated actual amount of Lottery funds that we estimate receiving by fiscal year-end. Recent estimates from the NC Department of Public Instruction anticipate that the County will receive $2,059,532, which is $340,468 short of the original approved budget of $2.4 million. The State allocates Lottery proceeds to each school district based on their average daily student membership, meaning that of the $2,059,532, the amount anticipated for Chapel Hill Carrboro City Schools totals $1,279,413 and $780,119 for Orange County Schools. The attached applications request that the State release funds to offset debt service for Gravelly Hill Middle and Scroggs Elementary Schools. As outlined above in the Public School Building Capital Fund, staff anticipates both Boards of Education to approve their respective applications at one of their May 2007 meetings. FINANCIAL IMPACT: As approved in the County's Annual Operating Budget for fiscal year 2006-07, Public School Building Fund and NC Education Lottery monies are sources of monies to repay School related debt payments; therefore these funds do not represent additional, unanticipated funds for the County. It is important to note, however, that anticipated receipts from the NC Education Lottery fall $340,468 short of the approved budget. Staff will analyze the impact of this shortfall as year-end projections for all expenditures and revenues are fine- tuned. RECOMMENDATION (S): The Manager recommends that the Board of County Commissioners approve, and authorize the Chair to sign, the applications for Public School Building Capital Funds and NC Education Lottery proceeds, for the Chapel Hill-Carrboro-City and Orange County Schools' share of debt service payment related to construction of Rashkis Elementary, Scroggs Elementary, Carrboro High, Cedar Ridge High and Gravelly Middle schools.