High School Funding Issues
The original budget plan for the 3rd high school totaled $50,615,000, and was comprised of the proceeds from the issuance of debt in the amount of $39,615,000 and cash funding to be contributed by the County and Schools in the amount of $11,000,000. During deliberations on the FY 2007 budget in the spring of 2006, it became apparent that additional funding would be required to fund the project based on new cost estimates associated with summer 2006 bid date. The adopted budget provided for $65,000,000, with the Board of Supervisors also identifying an additional $2,500,000 for the purchase of the Lunceford tract, for a total project cost of $67,500,000.
School staff has provided an updated budget for the new high school following the award of the construction contract (see attachment 1b).
The following are issues for discussion:
1. Only a portion of the costs of the land acquisition are shown. An addition to the budget in the amount of $929,671 is required to reflect the cost of acquiring the Lunceford site.
2. Costs for easements and roadway improvements are still to be determined.
3. The budget provides $1,500,000 for a fueling facility.
4. Funds for the services of an outside construction management firm are not included.
5. The budget contains a contingency of 4% or $2,138,000.
6. The budget provides for an allocation of $3,350,000 (8% of building-related costs) for furniture, fixtures and equipment.
There are additional funds from the anticipated interest earnings from the investment of the bond proceeds that can be identified to provide additional project funding. In addition, there are also balances in a number of School Capital Project accounts. It is recommended, however, that the overall project budget be first determined and then additional funding can be identified and appropriated.