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5 <br /> • Additional Supplemental Deferred Maintenance in 2024-$30 million <br /> The Supplemental Deferred Maintenance Program was started in FY2020-21 to address <br /> deferred maintenance and life and safety improvements in school facilities. The program was <br /> designed to finance $30 million in school projects over three years on a schedule and <br /> sequence determined by the Districts. <br /> The total $30 million was divided between the Districts based on the average daily <br /> membership in the FY2020-21 fiscal year. As a result, Chapel Hill-Carrboro City Schools was <br /> allocated 60.14% or $18,042,000 of the $30 million total while Orange County Schools was <br /> allocated 39.86% or$11,958,000 of the total amount. <br /> To date, the Districts have drawn down approximately $613,000 of the $30 million originally <br /> designated due to the demands of the COVID-19 response. In prior CIP's, the County <br /> appropriated $9.5 million based on requests from the School Districts. The FY2022-23 <br /> Recommended CIP appropriates the balance of the original $30 million or $20.5 million over <br /> the next two fiscal years to offer complete flexibility in how and when those funds are used. <br /> An additional $30 million is planned for FY2023-24 assuming that the original funds will be <br /> exhausted, committed, or planned during FY2022-23. In response to requests from both <br /> Districts, $3.0 million of the new $30 million is planned for FY 2022-23 for preliminary <br /> planning, which includes project management and professional services. The remaining $27 <br /> million is planned for construction in FY 2023-24. Consistent with practice, the new $30 <br /> million will be divided between the Districts based on the FY 2022-23 average daily <br /> membership. The following table shows how the original funding source was allocated and <br /> how the Districts have requested to use the balance of the original funds and the new $30 <br /> million: <br /> K-12 Supplemental Deferred <br /> FY 2024-21 FY 2021.22 FY 2022.23 FY 2023.24 Total <br /> Maintenance Funding <br /> Initial Allocation $ 5,950,000 $ 3,600,400 $ 14,253,000 $ 6,197,400 $ 30,000,000 <br /> Proposed Additional Allocation 1 $ 3,040,000 $ 27,400,404 $ 30,000,000 <br /> Total $ 5,950,000 $ 3,600,000 $ 11,253,000 $ 33,197,000 $ 60,000,000 <br /> • Planning for a General Obligation Bond <br /> The County is working with each school district on a Capital Needs Task Force to further define <br /> and prioritize capital needs in the future. The FY2022-32 CIP includes a placeholder for $130 <br /> million in general obligation bond proceeds with the first tranche planned in 2027. <br /> The combination of the additional $30 million in supplemental deferred maintenance and the <br /> $130 million bond would generate a cumulative tax impact of an additional 2.37 cents over <br /> the ten year period. Since the actual capital needs will exceed this amount, the County will <br /> need to explore other financing strategies to address the remaining needs. <br /> Page 1 3 <br />