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(Adopted 12/7/96) <br />(Revised 2/.3/98) <br />Orange County Board of Commissioners <br />Capital Funding Policy <br />A Sources of Funds <br />The following sources of fiords will be allocated for Capital Projects and Debt Service: <br />1 All proceeds fi~om the Article 40 and Article 42 one half sales tax <br />The North Carolina General Stahites require that 30 percent of the Article 40 and 60 <br />percent of the Article 42 sales tax revenue be earmarked for school capital projects or <br />debt service on debt issued for school capital projects <br />2. Revenue from the property tax as follows: <br />• $800,000 <br />• The equivalent of 2.7 cents on the tax rate based on valuation as of 1996-97. <br />This earmarking will be adjusted each revaluation cycle. <br />• The amount necessary to retire the 1992 School Bonds. (In 1997-98 this amount <br />is $4.7 million.) <br />• The amount of the reduction in the Human Services function of the County <br />budget (equivalent of one half of one percent of the budget or $50,000) in 1994- <br />95 for automation projects in Human Services. <br />• Utilities Extension Fund -This amount nay vary in that it based on the increase <br />in property tax base as a result of expenditures in the Utilities Extension Capital <br />project, The amount currently planned is $35,000 for 1997-98 and $25,000 for <br />each year thereafter. <br />Impact Fees for each school system. <br />Public School Building Fund <br />Other revenues that are restricted including, payment-in-lieu, grant funds, rental revenue <br />and inmate fees as a result of the new jail addition.. <br />B Debt Service <br />Prior to finds being allocated for specific projects, all debt service, including private placement <br />financing will be subtracted fiom the uruestricted funding sources. As an exception, the Orange <br />County Schools are responsible for finding directly from their pay-as-you-go capital allocations, <br />that portion of the cost of a new high school in the Orange Cotnty School system beyond the <br />$12.5 million bonds approved by voters for that school in November 1997, <br />C. Allocation <br />All sources of w~resticted revenue, less debt service, is then allocated between County and <br />School projects based on 50 percent of the net amowrt for School projects and 50 percent of the <br />net amount for County projects. Funding between the two school systems will be allocated <br />based on the 20°i day enrollment adjusted each year. For example, the 20°' day enrollment as of <br />