Agenda Item 1a - CHCCS FY19-29 Capital Investment Plan

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FUNDED PLAN Major facility improvement projects in FY 2019-20 include continued removal of asbestos floor tile at Phillips Middle School as well as identification and correction of lower level water infiltration problem, repair and restoration of Smith Middle School's 6 tennis courts, window sealing at the oldest schools, establish a new playground at FP Graham Elementary School, correct poor baseboard conditions throughout McDougle Elementary School, begin replacement of HVAC units at Seawell Elementary School PODS, replacement of heat pumps at Culbreth Middle School, new HVAC unit in Carrboro Elementary School's auditorium, and replace the 23 year old chiller at East Chapel Hill High School. The CIP Contingency line has a current balance of$1,695,473 accumulated over the past few years. This year's plan does not add to the contingency in FY 2019-20 but rather directs all available funds to specific projects. It is recommended that the current contingency be maintained to address facility emergencies that may arise. Chapel Hill High School's renovation project, funded from proceeds of the 2016 School Bond referendum, is included in the Funded Plan. The high school project will continue through 2020-21. UNFUNDED PLAN The major component of the Unfunded Plan is the scheduled funds needed to renovate and expand the 7 remaining older schools identified in the 2013 Facilities Assessment. This assessment identified building code corrections, facility upgrades, and expansions to bring these schools as close as possible to the County's new school construction standards. As future plans are developed to address funding requirements, each school's assessment will need updating to reflect work that has been completed over the past 5 years and current construction costs to finish the projects. This year's SAPFO report has not been published. Of major concern is elementary school capacity and whether projection formulas will be adjusted to reflect State mandated reductions in class size. It is possible that SAPFO will indicate the need for additional elementary school classrooms. GENERAL FUND BALANCE DISCUSSION Over the past few years, the district's General Fund Balance has been monitored and allowed to accumulate above target levels. Initially, these funds were intended to supplement 2016 Bond funds and complete the Lincoln Center Campus redevelopment. However, construction cost escalation made it impossible to implement both the Chapel Hill High School and Lincoln Center plans. Current available General Fund Balance and Cell Tower revenues total $7.1 million. Of this amount, $2.3 million has been reserved for use at Chapel Hill High School project to construct the CTE building. While the renovation project's sales tax refunds and municipal reimbursements are expected to pay most of the cost of the CTE Building, General Fund Balance will be necessary to meet cash flow requirements and therefore must be reserved.