New School Information

The new school has a budget of $67,048,593. 

•  $50,000,000 Needs Based Public School Capital Fund Grant
  • Needs Based Public School Capital Fund Grant which is funded with revenue from the NC Education Lottery - because it is a grant, Pamlico County will not have to pay this money back.
• $12,000,000 State Inflation Allowance
  • Pamlico County Schools received the state inflation allowance as part of the new school construction funding package, which was influenced by increased costs due to inflation. This allowance is linked to the Needs-Based Public School Capital Fund, a competitive grant program supported by the NC Education Lottery. The allowance was meant to cover rising expenses and help make the project feasible despite inflationary pressures, ensuring the school could still be completed within the adjusted budget​.
• $1,300,000 Sales Tax Rebate
  • In North Carolina, public schools can receive a sales tax rebate on certain purchases. Schools pay sales tax at the time of purchase, but they are eligible to apply for a refund from the state on qualifying expenditures. This rebate helps reduce overall costs, as the refunded amount can be used to support the school’s budget for supplies, construction, and other needs. The rebate applies to items necessary for school operations, but certain restrictions may apply depending on the type of purchase.
• $3,748,593 Pamlico County Commissioners
  • Pamlico County Commissioners agreed to take out a loan to serve as the required match for the Needs-Based Public School Capital Fund grant, which supports the construction of the new school. The match required by the state for the Needs-Based Public School Capital Fund depends on the county's economic tier. For lower-income Tier 1 counties, like Pamlico, the state requires a lower match, typically around 5% of the total project cost. For Tier 2 counties, the match is usually higher, around 15%, and for Tier 3 counties, it can be 25% or more. This matching requirement ensures local investment while making the grant more accessible to economically disadvantaged areas.

Pamlico County Middle School has certainly been a topic of discussion since it flooded in 2011 during Hurricane Irene and again in 2018 during Hurricane Florence.  In the aftermath of both hurricanes, district administrators, board members, and members of the community have all lamented the fact that we needed to get away from that campus and into a new building that is not in the flood zone.  It was not until the recent development of the Needs-Based Public School Capital Fund that building a new school even seemed like a remote possibility.  School construction is extremely expensive and is something that is ordinarily not even realistic for small rural school districts without some sort of outside intervention from a governmental body.  When the opportunity came to apply for this grant, district leaders considered our needs and how we might best position ourselves to be selected.  School consolidation is something the grant managers consider to be favorable when selecting recipients.  This actually presented an opportunity for our county to replace two buildings that were both built in the 1950’s with a unified modern campus that is designed for the next 70 years. 

The project includes a "Guaranteed Maximum Price" (GMP) clause, which sets a financial limit on the construction costs. This ensures the contractor is responsible for covering any costs beyond the agreed-upon budget, protecting Pamlico County Schools from overruns. Additionally, regular project reviews, strict oversight, and contingency planning help manage expenses. The GMP, along with tight budget controls, acts as a safeguard to avoid unnecessary costs and keep the project on track financially.

The Guaranteed Maximum Price (GMP) clause is common in construction contracts, especially for large public projects. It sets a financial limit that the contractor cannot exceed, unless there are changes in the project scope. This type of contract helps protect owners, like school districts, from cost overruns and provides budget predictability. The contractor is responsible for any additional costs beyond the agreed-upon price, incentivizing them to manage expenses efficiently while maintaining quality.