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At the Board of Education meeting of August 14, 2007, staff was directed to prepare a revised 2007-08 capital outlay budget for presentation at the Board meeting scheduled for August 30, 2007. The attached spreadsheet reflects the revised 2007-08 capital outlay budget in columns (C) – (H) and, for information/reference purposes, the original 2007-08 capital outlay budget is reflected in columns (I) – (N).
The revenues/sources in the original 2007-08 capital outlay budget were based on the budget request approved by the Board of Education and submitted to the Board of County Commissioners for funding consideration. The revenues/sources in the revised 2007-08 capital outlay budget are based on the budget approved locally by the Commissioners and the budget approved at the state level by the legislature.
The revised 2007-08 capital outlay budget document reflects total revenues/sources of $37,050,373. Of that amount, $10,980,234 are county appropriation dollars; $4,708,235 are Public School Building Capital Funds (PSBCF); $14,158,922 are state lottery distributions; $2,472,982 are red light camera monies; and $4,730,000 are anticipated May 2008 bond funds.
COUNTY APPROPRIATION:
- County Appropriation – FY07 = $800,000
These are carryover funds from fiscal year 2006-07 that are earmarked for completing the Modular Village @ Eastern Guilford High School (EGHS).
- County Appropriation – FY07 (+pending reclassification of FY07 Lottery Funds) = $1,074,780
The capital expenditures eligible for funding from PSBCF dollars and lottery distributions are defined by state statutes. These expenditures are essentially bricks and mortar construction of public school buildings and equipment which is an integral part of the buildings (i.e., excludes administrative and maintenance facilities, mobile/modular classrooms, and movable equipment). During the exercise of assigning revenue sources to expenditure line-items in the 2007-08 capital outlay budget, we determined that we had $1,074,780 more state lottery funds available from 2006-07 than we had eligible state lottery expenditures budgeted in 2007-08; therefore, we are recommending that $1,074,780 in 2006-07 expenditures be reclassified from county appropriation to lottery funds – thus freeing up $1,074,780 in 2006-07 county appropriation dollars to carry forward to 2007-08 and use to fund the $1,074,780 in 2007-08 capital outlay expenditures that are not eligible for funding from either PSBCF dollars or state lottery distributions.
The 2006-07 expenditures to be reclassified from county appropriation to lottery funds are:
$ 184,460.10 roof on old Science Building @ Dudley HS
$ 9,524.13 VCT (Vinyl Composition Tile) floor covering @ Alamance ES
$ 19,435.77 carpet @ Erwin ES
$ 1,705.36 carpet @ Falkener ES
$ 1,402.06 carpet @ Hampton ES
$ 12,078.26 carpet @ High Point Central HS
$ 13,538.72 carpet @ Hunter ES
$ 1,596.62 carpet @ Jesse Wharton ES
$ 192,050.00 bleachers @ High Point Central HS
$ 119,993.75 bleachers @ Southwest HS
$ 7,055.00 paving @ Brooks Global
$ 67,454.64 paving @ Southern ES
$ 89,532.01 resurface parking lot @ Summerfield ES
$ 20,507.50 paving @ Eastern MS
$ 334,446.08 track @ Smith HS
$1,074,780.00
- County Appropriation – FY08 = $7,000,000
The Board of Education requested $10M in county appropriation dollars for capital outlay. The Board of County Commissioners funded $7M.
- County Appropriation – FY08 – Supplemental Capital Funding – Medicaid Swap Proposal = $2,105,454
In fiscal year 2007-08, the State will “assume” 25% of county Medicaid costs beginning 10/1/07 and we must “forego” a portion of our PSBCF dollars in order to fund this Medicaid Relief initiative. However, the county must, in turn, allocate to us for school construction an amount from their Medicaid Relief funds equal to our reduction in or loss of PSBCF dollars. Based on information available on the North Carolina Association of County Commissioners website, the amount by which our 2007-08 PSBCF dollars is to be reduced and, thus, the amount of Medicaid Relief funds that the county must “swap” with us is $2,105,454.
PUBLIC SCHOOL BUILDING CAPITAL FUNDS (PSBCF):
- PSBCF – FY07 = $2,573,937
These are carryover funds from fiscal year 2006-07 (see attached PSBCF RECAP FY04 THRU FY07 for carryover calculation).
- PSBCF – FY08 (reduced by Medicaid Swap Proposal)= $2,134,298
$ 4,239,752 projected 2007-08 PSBCF allocation per NCDPI
$ 2,105,454 LESS: Medicaid Swap Proposal amount cited above
=$ 2,134,298
LOTTERY DISTRIBUTIONS:
- Lottery Distribution – FY07 – (- pending reclassification of FY07 County Appropriation Funds) = $5,528,176
These are carryover funds from fiscal year 2006-07 calculated as follows:
$ 8,124,742.00 lottery revenue
+$ 130,728.75 PLUS: interest earned on tax revenue and disbursing balance
=$ 8,255,470.75
- $ 1,652,515.00 LESS; project approved for middle school structural enhancement issues
=$ 6,602,955.75
- $ 1,074,780.00 LESS: pending reclassification of funds
=$ 5,528,175.75
[$3M of the $5,528,175.75 has been budgeted by the Board of County Commissioners to offset the cost of debt service for the 2003 bond]
- Lottery Distribution – FY08 = $8,630,746
FY08 estimated lottery distributions per NCDPI website as of August 23, 2007.
[$3M of the $8,630,746 has been budgeted by the Board of County Commissioners to offset the cost of debt service for the 2003 bond and the balance of the $8,630,746 has been budgeted or held in abeyance by the Board of County Commissioners for the final county commission funding decision for EGHS and the remaining 2003 bond projects]
RED LIGHT CAMERA MONEY:
- Red Light Camera Money = $2,472,982
$ 995,524.91 received from the City of Greensboro
+$1,477,457.53 PLUS: money due from the City of High Point
=$2,472,982.44
MAY 2008 BOND FUNDS:
- May 2008 Bond Funds = $4,730,000
The Board of Education requested approval from the Board of County Commissioners to place a bond referendum for school construction/renovation on the November 2007 ballot. The request was denied. While no formal action has been taken by the Commissioners with respect to setting the date for the requested referendum, the anticipated date is May 2008 to coincide with scheduled county-wide elections.
The following items are included in the listing of proposed 2007 bond projects adopted by the Board of Education on June 12, 2007:
$ 435,000 replace 2 boilers @ Jamestown ES
$ 800,000 replace air handlers and add dehumidification system @ Southeast MS
$ 405,000 install air conditioning in the large gym @ Smith HS
$1,135,000 replace air handlers @ Andrews HS
$ 370,000 system wide improvements to running track @ High Point Central HS
$ 475,000 system wide improvements to running track @ Dudley HS
$ 370,000 system wide improvements to running track @ Grimsley HS
$ 370,000 system wide improvements to running track @ Northwest HS
$ 370,000 system wide improvements to running track @ Ragsdale HS
$4,730,000
RECOMMENDATION: The administration recommends the board:
- (a) approve the 2007-08 regular capital outlay budget in the amount of $32,320,373 as reflected on the attached spreadsheet ($37,050,373 total per attached spreadsheet less $4,730,000 in May 2008 bond funds);
- (b) approve reclassification of $1,074,780 in 2006-07 capital outlay expenditures from county appropriation to lottery funds as outlined above;
- (c) approve application for the release of $1,074,780 in 2006-07 lottery dollars for the reclassified expenditures referenced in item (b);
- (d) approve applications for the release of $4,708,235 in 2006-07 and 2007-08 Public School Building Capital Funds for the projects identified as having PSBCF dollars in column (E) of the attached spreadsheet;
- (e) approve applications for the release of $2,528,176 in 2006-07 lottery dollars for the projects identified as having lottery dollars in column (F) of the attached spreadsheet [excludes the $3M on row 14 that has been budgeted by the Board of County Commissioners to offset the cost of debt service for the 2003 bond]; and
- (f) authorize appropriate staff member(s) to appear before the Board of County Commissioners and request their approval of the applications for the release of PSBCF dollars and lottery funds for the projects outlined in items (c), (d) and (e) above.
Attachment #1 - PSBCF Recap, FY04-FY07
Attachment #2 - Summary
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