Orange County NC Website
Browse       Search
ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: May 16, 2006 <br />Action Agenda <br />Item No. 5 - ~ <br />SUBJECT: Application for State Public School Building Capital Funds <br />DEPARTMENT: Budget PUBLIC HEARING: (Y/N) No <br />ATTACHMENT (S): <br />Application for Public School Building <br />Capital Funds <br />INFORMATION CONTACT: <br />Donna Dean Coffey, Budget Director <br />245-2151 <br />PURPOSE: To approve an application to the North Carolina Department of Public Instruction to <br />release funds from Orange County's Public School Building Capital Fund account. <br />BACKGROUND: In 1987, the North Carolina General Assembly established the Public School <br />Building capital Fund (PSBCF) to assist county governments in meeting their public school <br />capital needs. The State uses a portion of its corporate income tax receipts (including interest <br />earned) to fund the PSBCF. Monies from the fund are allocated to counties on a per average <br />daily membership (ADM) basis. Counties can use these funds to offset capital costs in three <br />major areas: <br />New school construction projects (including the purchase of land) and <br />repairing/renovating older facilities; <br />Implementation of local school technology projects; <br />Repayment of school related debt service. <br />Since the creation of this fund by the State, Orange County has used its allocation to cover a <br />portion of the renovation costs at Ephesus Elementary, Chapel Hill High, Stanford Middle and <br />Hillsborough Elementary schools, More recently, the County has used these funds to pay a <br />portion of the debt service associated with various school projects that are debt financed. <br />As of April 27, 2006, $1,014,973 has accumulated in Orange County's PSBFC account since <br />the last draw dawn of funds in June 2005, It is important to note that this amount does not <br />include additional monies anticipated from April and May interest earnings and May's quarterly <br />distribution of corporate income taxes. Staff plans to request that the State reimburse all of the <br />funds ($1,014,973 plus April and May allocations) to Orange County. <br />Given the history of the State holding these funds in prior years along with uncertainty of the <br />State's current and future fiscal condition, staff recommends that the Board pursue the draw <br />down of these funds as quickly as possible to ensure that the County receives its <br />reimbursement prior to the end of our fiscal year on June 30, 2006. <br />The attached applications request that the State release all available funds for Orange County <br />to offset debt service related to McDougle and Scruggs Elementary Schools. The Chapel Hill- <br />