Agenda - 10-25-2004-3 - Laserfiche WebLink

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z accordance with the September 3 approved plan, staff procured alternative financing of $3.475 million in December 2002 and issued bonds totaling $19.175 million in April 2003. In May 2004, the Board endorsed a revised debt issuance schedule (Attachment 2 of this abstract) that outlined a plan to issue $130.425 million in bonds and alternative financing over asix-year period from fiscal year 2002-03 through 2007-08. The BOCC-endorsed May 2004 debt issuance schedule included a number of modifications from, and additions ta, the debt issuance schedule approved by the BOCC in September 2002. For example, the May 2004 schedule reflected the Commissioners' formal decision to reallocate $12.8 million in bond funds originally planned for Chapel Hill-Carrboro Schools' Elementary School #10 to be used towards the construction of CHCCS High School #3 instead. Subsequently, funding for Elementary #10 was reflected on the debt issuance schedule to come from alternative financing. Also included on the May 2004 schedule was the issuance of two-thirds net debt reduction bonds totaling $4.2 million in the current fiscal year. The use of this debt instrument was made possible because the County did not issue any new debt for FY 2003-04. Attachment 8 of this abstract outlines possible projects that could be funded with proceeds from those bonds (in June 2004, the Board adopted several capital project ordinances appropriating a portion of these bonds for several high priority projects -these are highlighted in yellow on the attachment). In keeping with the debt issuance schedule, Orange County completed the sale of $19,740,000 bonds and $4,200,000 in 2/3 net debt reduction bonds in July 20Q4. Since last May, County staff has worked internally and with the County's bond partners to update cash flow needs for all debt funded projects. Attachment 1 of this abstract reflects the most recent proposed revisions to the County's debt issuance schedule. Points of particular note include: Timetables for issuing debt for three major school construction projects -Chapel Hill- Carrboro City Schools Elementary #10 and High School #3 along with Orange County Schools Middle School #3 -remain unchanged from the May 2004 BOCC endorsed schedule. • The new schedule reflects a slower than originally anticipated timetable and cash flow need for two Town of Chapel Hill projects (Homestead Aquatics Center and Southern Community Park) and for the County's Affordable Housing program. • No changes have been suggested at this point to address requests from both school systems for additional funding for anticipated budget shortfalls for OCS Middle School #3 and CHCCS High School #3, The BOCC may wish to consider further adjustments to the debt issuance schedule following receipt and analysis of the November 15 actual student membership numbers. The process of certifying actual student membership and updating 10-year student projections as of November 15 each year is a cornerstone, under the Schools Adequate Public Facilities Ordinance machinery, of the County's Capital Investment Plan, The timing of the need for certain new schools, particularly for CHCCS Elementary #10, may be affected by the upcoming updates to student membership projections. This October 25 work session offers the Board an opportunity to review, in detail, the specific projects and dollar amounts proposed for issuing debt over the next few years. The Budget Director plans tb make a brief PowerPoint presentation, review the attachments accompanying this abstract, and respond to any Board question about possible changes to the project timelines.