Attachment A


Appropriation #2007001                                                                                                           $ 265,538.00

The Circuit Court Clerk’s Office currently has $175,538.00 in funding available through the Commonwealth of Virginia’s Technology Trust Fund and anticipates an additional $90,000 in FY07.  These funds will be used to purchase equipment in the Clerk’s Office and to begin the next phase of back-file conversion for deeds and wills.


Appropriation #2007002                                                                                                         $3,688,000.00

The current adopted School CIP budget for FY07 totals $13.375 million.  This amount for FY07 and the amounts planned for the remaining eight years of the CIP plan were based on an agreement between local government and the schools that would maintain an agreed upon level of debt service.  The targeted debt service level was intended to keep the County’s total debt service at a level comparable to other AAA rated localities and at a level acceptable to the bond rating agencies.


Both the School Division and Local Government, as you have previously been informed, are experiencing an unprecedented escalation in construction costs.  Based on actual bids across the State, the Virginia Department of Education has reported a 24% increase in school construction costs over the last 18 months.  Based on bids received for the Cale renovation and the Monticello auditorium, Albemarle is experiencing a 30%+ increase over the cost projections made last year. 


In an effort to retain our targeted debt service levels the School Division has proposed a restructuring of their projects by delaying approximately $6 million in projects planned for FY06, FY07, and FY08.  These delays will also require a substantial restructuring in the out years of the CIP and will be reviewed this fall in preparing our next capital budget.


In the short term this plan will retain our targeted debt service levels, however, it will require an increase of $3.688 million in debt to be issued in FY07 with an equal reduction in FY08 debt.  The actual debt to be issued for FY08 will be an issue for review this fall as we prepare the next capital budget which will include an update of available revenues and updated project costs for all projects.


This appropriation will authorize the issuance of an additional $3.688 million in Virginia Public School Authority (VPSA) debt in FY07 and the reallocation of $2.3 million in existing FY07 School CIP funds.  Debt service will not increase until FY08.  In addition, we have recently been advised by VPSA that several previous issues have been refinanced and we will see an approximate $800,000 decrease in FY07 debt service.  Official notice of the exact amount should be received in the near future.


A schedule of projects being delayed with this restructuring are detailed in Attachment B.


Attachment B

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