Agenda - 03-21-2017 - 6-b - Revisions to Schools FY 2016-17 CIP and Approval of Property Acquisition

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Attachment 3 7 A EL HILL- • • 1111 A ORO 01 ry 001 CITY SCHOOLS Date: March 13, 2017 To: Paul Laughton, Deputy Director, Orange County Finance and Administrative Services From: Todd LoFrese,Assistant Superintendent Re: Chapel Hill-Carrboro City Schools' Bond Project Budgets The district received the request for more information related to the Chapel Hill-Carrboro City Schools' bond project budgets. The district has made adjustments to our project budgets due to bond distribution changes and market forces. The district conducted our facility study and developed recommendations over the course of three years (2011-2013). Since that time,the anticipated distribution of bond funds has changed as outlined below: 2011 to 2013 Initial plans - $125 million at 61%ADM = $76.25 million to CHCCS 2015 Bond Amount Finalized - $120 million at 61%ADM = $73.2 million to CHCCS 2016 Final Distribution - $120 million at 60%ADM = $72 million to CHCCS In 2014 our plan was to distribute $76M between the Lincoln Center Campus ($2lmillion) and Chapel Hill High School ($55 million). In 2015,when anticipated bond proceeds dropped to $73.2 million,we researched construction costs and found they had increased significantly. In fact, since our initial project estimates were released in late 2013, construction costs have risen on average 5% annually (a 15% increase over 2013-2016). The actual bond distribution allocates $72 million for Chapel Hill-Carrboro City Schools. Current plans for our anticipated share of bond proceeds are to allocate $25 million to the Lincoln Center Campus and $47 million to Chapel Hill High School. The Lincoln Center Campus portion is based on construction estimates calculated in Nov 2016. To summarize, over the course of past 4 plus years,the anticipated bond proceeds decreased by over $4 million and construction estimates for the Lincoln Center Campus increased by$4 million. We have adjusted our project budgets accordingly. I will be in attendance at the March 21 meeting if there are additional questions.