Agenda - 09-27-2004-1 - Laserfiche WebLink

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Orange County Board of Education Dr_ Shirley Canaway Superintendent Board Members: Keith Cook, Chair Brenda Stephens, Vice Chair Randy Copeland Susan Halkiotis Libbie Hough Delores Simpson Dana Thompson 200 East King Street Hillsborough, NC 27278 Telephone: 919 -732 -8126 FAR: 919- 732 -8120 3 UN)y i r May 14, 2004 Mr. John Link, County Manager Orange County Board of County Commissioners P.O. Box 8181 Hillsborough, NC 27278 Dear Mr. Link and County Commissioners: As we have worked through the budget process this year, we have poured through every document, every budget code, and every funding source to ensure that we are being fiscally responsible in our decisions and in our budget requests. When we saw that our capital improvement funds for 2004- 2005 would fall short of our needs by over half a million dollars, we looked at previous capital project budgets for any leftover funds. If revenue projects are as expected, we will this year be able to fund our 2004 -2005 capital requests. We will have little money left to reallocate, and anticipated revenue projections will fall far short of meeting our 2004 -2014 CIP needs. The reason for this is inherent in the Orange County Board of Commissioners Capital Funding Policy Debt Service specifications. The policy directs that: Prior to funds being allocated for specific projects, all debt service, including private placement financing will be subtracted from the unrestricted funding sources. As an exception, the Orange County Schools are responsible for funding directly,fr'om their pay -as- ,you -go capital allocations, that portion of the cost of 'a new high school in the Orange County School system beyond the $12..5 million bonds approved by voters,for that school in November' 1997, I realize that this was an agreed -upon arrangement with the Orange County Board of Education, however, at this point this arrangement is making it almost impossible for the district to maintain its facilities, to ensure health and safety and to complete other projects necessary to provide school environments that support ever increasing academic demands, According to the policy, before any money is allocated to the school systems, the Board of County Commissioners subtracts all bonded debt as well as non bonded debt for the Chapel Hill - Carrboro Schools debt payments for Scroggs Elementary School and McDougle Elementary School. Then, from what is left, the Board of County Commissioners allocates the designated portion to the two school systems. When we are required to subtract the non bonded debt for Cedar Ridge High School from our portion, it cripples our improvement possibilities.. This practice means that all tax payers in the entire county are responsible for paying for the two Chapel Hill schools while only those who live in the Orange County Schools Providing educational oppornmities for successful futures "