AG 2002 02 25 (Recessed) - Laserfiche WebLink

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continue to be a regional economic rebound that will provide the gain expected in FY02 in FY03. That is a $2,300,000 revenue expectation above FY02 in FY03. 3. We will budget the expected revenues from the sale of two county properties in FY03. The sale of the old fair grounds ($3 million) and the current school administrative complex on highway 29 ($1,250,000) will be expected to occur during FY03. Efforts to sell both properties will begin once the County' Commission agrees to this element being part of the FY03 budget. 4. There must be significant weight put on the fact that state government MAY retain approximately $3,900,000 in reimbursement revenues due the county in FY03. Maybe the state will pay the county those revenues, but we must assume contingency action to address another failure of the state to honor prior commitments. It appears it has become the state's economic failsafe to ignore its commitments to cities and counties. 5. During FY03 you must address the local option ~/~ cent sales tax that is proposed to replace the state reimbursements currently being held by the governor. Although we will not receive any revenues from the proposed transfer of the existing lA cent state sales tax to local government, that action is vital to the county's economic health long-term If we sell further debt (COPS) in FY03 and beyond, the rating agencies will want an answer to the question. [] Expenditure Priorities (ASSUMING THERE WILL BE NO INCREASE IN THE CURRENT COUNTY TAX RATE OF $.56 IN FY03 TO ADD TO REVENUES) 1. Education: A> RCCC - no capital expense allocation for FY03 B> Schools - (Cabarrus County and Kannapolis) (Assuming no merger - a little levity during tough times) (1). Under current expense allow for student growth at the current ADM rate Estimated at 1000 new students x $1186.78 = $1,186,780 new expense (2). Allow for CPI adjustment of 1.6% in the ADM rate BUT hold allocation until the state actually pays the reimbursements scheduled for 09/28/02 This would amount to roughly $459,000 in new expense. (3). Keep capital outlay at $1,500,000 but hold allocation until state pays the remaining reimbursements due the county in 10/05/02. (4). Keep new school start-up funding at $150,000 (each) but hold allocation until the state actually pays reimbursements scheduled for 04/30/03. The impact of delayed education funding allocations is roughly $2,410,000 depending on school populations and is far less than the state reimbursements scheduled for FY03. C> Financing new school construction: (1). Defer financing on two elementary schools for Cabarrus County Schools and the middle school for Kannapolis until January/February 03. This will move one debt service payment from FY03 to FY04. (2). Proceed with the gyms (5) at $2,500,000, the school administrative complex at $4,000,000 and $20,000,000 financing of the EXPO project (increase to give cash-flow flexibility for architect fees and land purchaSes for new school projects deferred until January/February 03).