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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: October 8, 2024 <br /> Action Agenda <br /> Item No. 2 <br /> SUBJECT: School Capital Funding Policy Discussion <br /> DEPARTMENT: County Manager <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> A. Draft School Capital Funding Policy Kirk Vaughn, (919) 245-2153 <br /> B. June 4, 2024 Board Item — <br /> Establishing a Framework for <br /> School Bond Projects and Capital <br /> Funding <br /> C. Current Capital Funding Policy <br /> D. 2008 School Capital Funding Policy <br /> PURPOSE: To review and provide feedback on a draft School Capital Funding Policy prepared <br /> by staff. <br /> BACKGROUND: Over the past year, County staff and elected officials have reviewed significant <br /> portions of County's school capital policies and practice in advance of the upcoming November <br /> 5, 2024 Bond Referendum. At the May 7, 2024 Business meeting, the Board received a <br /> presentation from staff on the statutes and policies that drive school capital funding and County <br /> oversight. At the June 4, 2024 Business meeting, the Board adopted a financial framework for the <br /> upcoming bond referendum (Attachment B). The attached draft policy (Attachment A) attempts to <br /> codify both discussions and provide direction to County and school staff. Current and prior school <br /> funding policies (Attachments C and D) are also provided to provide context to this new proposed <br /> policy. <br /> The first section of the policy details the funding framework, explicitly detailing the sources of <br /> funding and the new categories of usage as approved on June 4t" and how these funds shall be <br /> allocated to each district. The second section details the methods that the County will use to <br /> direct and oversee the spending of capital funds. These include project-based allocation, <br /> allocation in stages, amendment to budgets and emergencies. These financial controls can be <br /> used independently or in coordination with other joint agreements between the County and the <br /> two school districts. These include school construction standards policy and a joint project <br /> management resource managed by the County. <br /> Staff requests that the Board provide feedback on the proposed policy. Next steps are to await <br /> the vote on the referendum on November 5t", and then request feedback from both districts. The <br /> finalized draft policy will be presented again to the Board before the presentation of the Manager's <br /> Recommended Capital Investment Plan in April 2025. <br /> FINANCIAL IMPACT: There is no immediate financial impact of this discussion. <br />