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10 <br /> Attachment C May 7, 2024 <br /> Orange County Board of Commissioners <br /> Capital Funding Policy <br /> Preamble <br /> This capital funding policy is the product of extensive analysis and deliberation. The intent <br /> of this policy is to reflect greater priority than there has been historically on providing funding <br /> for County projects, with particular emphasis directed at enhanced upkeep of existing <br /> County facilities. This policy continues the County's principle and historical practice of <br /> funding all School and County related debt service obligations before allocating any other <br /> School or County capital funds for other purposes. <br /> Long Range Capital Investment Plan <br /> During each fiscal year, the County Manager shall present to the Board the ten-year County <br /> and School capital needs and funding plans in the form of a Capital Investment Plan. The <br /> Board of County Commissioners will adopt a ten-year Capital Investment Plan (CIP) as part <br /> of the annual operating budget in June. <br /> County and School recurring capital needs will be identified and reviewed during each <br /> annual operating budget cycle, and recurring capital appropriations will be approved by the <br /> Board of Commissioners as an element of each annual Orange County Budget Ordinance. <br /> Sources of Funds <br /> The County will allocate the following sources of funds for County and School debt service <br /> and long-range and recurring capital: <br /> • All proceeds from the Article 40 and Article 42 half-cent sales taxes. <br /> (The North Carolina General Statutes require that 30 percent of the Article 40 <br /> (NCGS§105-487(a)) and 60 percent of the Article 42 (NCGS§105-502(a)) sales tax <br /> revenue be earmarked for public school capital outlay as defined in NCGS§105-426(f) <br /> or to retire any indebtedness incurred by the county for these purposes) <br /> • Property tax revenue as needed and approved by the Board. <br /> • The County will budget NC Education Lottery proceeds as the revenues are distributed <br /> by the State each quarter, once the revenues are identified for an individual school capital <br /> project and requested by each district. <br /> Debt Service <br /> All County and School related debt service obligations would be funded prior to allocation of <br /> programmed funding for any other capital purposes. <br /> NC Education Lottery Proceeds <br /> Each school district will have the option to dedicate its share of the annual NC Education <br /> Lottery monies to address school facility renovation needs or as additional revenue to the <br /> districts pay-as-you-go funding to address school facility renovation needs. Annually either <br /> district can request that the County dedicate Lottery proceeds to repay debt service and the <br /> county will substitute pay-as-you-go-funding to expedite approved capital projects in the <br /> school's capital improvement plan. The County will then file separate school applications <br />