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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: April 7, 2026 <br /> Action Agenda <br /> Item No. 8-j <br /> SUBJECT: Application for North Carolina Education Lottery Proceeds for Chapel Hill- <br /> Carrboro City Schools (CHCCS) to Draw Down Funds from the North Carolina <br /> Department of Public Instruction <br /> DEPARTMENT: Finance and Administrative <br /> Services <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Attachment 1. CHCCS — Lottery Gary Donaldson, (919) 245-2453 <br /> Proceeds Debt Service <br /> Application <br /> PURPOSE: To approve an application to the North Carolina Department of Public Instruction <br /> (NCDPI) to release proceeds from the NC Education Lottery account related to FY 2025-26 debt <br /> service payments for Chapel Hill-Carrboro City Schools (CHCCS). <br /> BACKGROUND: Both County School Systems have previously presented approved resolutions <br /> from their respective Boards requesting that the County modify its Capital Funding Policy by <br /> applying accumulated lottery funds to debt service payments, and permitting current year <br /> withdrawals of lottery proceeds immediately after the State's quarterly lottery fund allocations. <br /> This policy expedites both the application process and the receipt of funds for both school <br /> systems. <br /> Currently, the accumulated available lottery proceeds for CHCCS are $734,293.30. The attached <br /> application requests NCDPI to release lottery proceeds in the amount of $734,293.30 to cover <br /> debt service for projects previously financed for the Chapel Hill-Carrboro City Schools system. <br /> The Lottery Proceeds receipt is contingent on NCDPI's approval of the application and substitutes <br /> the amount of Lottery Proceeds approved for debt service as additional Pay-As-You-Go (PAYGO) <br /> funds for FY 2025-26. These additional PAYGO funds were budgeted as part of the FY 2025-26 <br /> (Year 1) Capital Investment Fund approved by the Board of County Commissioners. <br /> FINANCIAL IMPACT: The total Lottery Proceeds requested from the NCDPI for Chapel Hill- <br /> Carrboro City Schools is $734,293.30. <br /> ALIGNMENT WITH STRATEGIC PLAN: This item supports: <br /> • GOAL 5: PUBLIC EDUCATION/LEARNING COMMUNITY <br /> OBJECTIVE 4. Improve learning environments by investing in facilities over a 10-year <br /> period that address repair, renovation, and educational adequacy needs. <br />