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expansion of ECHHS at $11.8 million, and a new OCS elementary school at $14.5 million. Renovation funding of $3.7 million for CHCCS and $3.1 million for OCS was also contemplated. The BOCC adopted Option 5 in concept, but asked staff to adjust the numbers to address concerns that both school systems would "lose" funding over the ten year period compared to funding that was estimated in the then - current 1996 -06 CIP. On September 17, 1996, staff presented Option 5A to the BOCC based on updated 10 year revenue estimates, an earmarking of 3 cents on the property tax rate for school recurring capital, and an allocation of "peak debt service" funds to OCS to help make up their potential 10 year shortfall. The notion was introduced, although not formally adopted, of earmarking at some point in the future the one cent for the school /park reserve to help make up some of the capital funding shortfall the County would experience over the 10 year period. Based on direction from the BOCC to try to address remaining school concerns, particularly about constrained pay -as- you -go funding in the early years of the CIP period, staff returned at the October 15, 1996 meeting with revisions to the funding plan. These changed plans for two bond sales to three and to include certain bond funded projects for FY 1997 -98 (subject to voter approval in November 1997), which had the effect of freeing up more funds in the early years for PAYG projects. The proposed $35 million /$5 million bond split for school /County projects was changed to $36 million /$4 million, with an additional $1 million going to OCS renovations. The Board adopted this plan, which has been referred to since as "Option 513". In December 1996, the Board adopted the Capital Funding Policy that implemented this plan. We have operated under this policy, with only a few minor changes, since then. Without going into much more detail, I will note that the BOCC appointed a Capital Needs Advisory Task Force that met in Spring 1997. Starting with the proposed $40 million bond package considered by the BOCC the previous Fall, the Task Force made its recommendations in May 1997 that the BOCC hold bond referenda in November 1997 totaling between $59.9 and $61.8 million. Debt service on the first $40 million would be covered without a required tax increase, as outlined in Option 5B, with the balance of the anticipated debt to be covered by a tax increase of 3.5 to 4 cents per $100 valuation. The BOCC ultimately approved bond orders totaling $60.6 million for the November 1997 referenda. One last point of interest relates to the development of what ultimately became Cedar Ridge High School. It is apparent from reading background documents of the period that the need for additional high school space in the Orange County system was emerging throughout 1996 and into early 1997. What was presented initially as a proposed addition to Orange High became a proposal for a second high school during the Capital Needs Advisory Task Force process. The Task Force considered several proposals for funding a new $25 million high school. Ultimately, it recommended to the BOCC (based on an OCS- generated idea) that $12.5 million in bonds be provided for a second OCS high school, and "the other half of the costs for a new high school be paid by borrowing funds by private placement, with the payments made from the Orange County Capital Improvement Plan funds" (outlined in Appendix E of the Task Force report). I will be happy to research further any questions the BOCC may have about this subject.