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Home My WebLink AboutAgenda - 06-04-2015 - 1ORANGE COUNTY BOARD of COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 4, 2015 Action Agenda Item No. 1 SUBJECT: FY2016 -16 Budget Work Session DEPARTMENT: County Manager and Finance PUBLIC HEARING: (Y /N) No and Administrative Services ATTACHMENT(S): A. North Carolina Association of County INFORMATION CONTACT: Commissioners — FY 2014 -15 Budget Bonnie Hammersley (919) 245 -2300 and Tax Survey Paul Laughton (919) 245 -2152 B. NC Public Schools /DPI -Per Pupil Allocations by County C. Memo from Chapel Hill- Carrboro City Schools D. Memo from Orange County Schools E. School Districts Local Current Expense Fund Balance Policy F. Sportsplex FY2015 -16 Operating Budget Detail PURPOSE: For the Board to have an opportunity to review and discuss the Chapel Hill - Carrboro City Schools, orange County Schools, and Durham Technical Community College FY2016 -16 Budgets, as well as the Sportsplex and County departmental budgets, including any fee schedule change requests and associated non - departmental items. BACKGROUND: The County Manager released the FY2016 -16 recommended budget on May 197 2015. Since that time, the Board would have conducted two public hearings to receive residents' comments regarding the proposed funding plan. Tonight's work session is the first opportunity the Board has had to discuss next year's recommended funding plan. During tonight's work session, the Board plans to discuss the following budget related topics: • Chapel Hill- Carrboro City Schools, orange County Schools, and Durham Technical Community College FY2016 -16 operating Budgets • Sportsplex • Begin discussions with County Departmental budgets, including any fee schedule change requests, and associated non - departmental items 3 County Support of Local Boards of Education The recommended appropriations for Chapel Hill - Carrboro City and orange County Schools increases the current expense funding by $1,038,946 in FY 2015-16. This includes an increase in per pupil funding from $3,571 to $3,662, an $81 increase for each of the 20,040 students in the two school systems. The recommended funding level represents a total appropriation for both school districts of $96.6 million, which is 49.2 percent of General Fund revenues, 1.1 percent above the target of 48.1 percent established by the Board of County Commissioners. This includes funding for current expense, recurring capital, long -range capital, school related debt service and fair funding. With the inclusion of allocations for school nurses for both school districts and Sheriff Department resource officers in the orange County Schools, the total funding allocation for Schools is $97.6 million, or 49.7 percent of General Fund revenues. Based on the State Department of Public Instruction (DPI) projections for FY 2015 -16, both school systems will see a decrease in student enrollments during the next academic year. The Orange County Schools enrollment projections total 7,626, which represents a decrease of 172 students from the March 2014 projections. The Chapel Hill- Carrboro City Schools enrollment projections total 12,203, which represents a decrease of 150 students from the March 2014 projections. Both school systems, however, are continuing to experience a growing number of students in charter schools. Current enrollment in orange County charter schools is 476 students, and current enrollment in Chapel Hill- Carrboro City Schools charter schools is 217 students. The General Assembly requires school systems to pay a per pupil allotment to support charter students within their district. The number of charter students funded as part of the school systems current expense has been maintained at the same level for many years. The recommended budget includes a phase -in of funding for charter school students over a two -year period, with funding for an additional 1 1 0 students in orange County Schools and an additional 50 students in Chapel Hill- Carrboro City Schools in FY 2015-16, with a plan to complete the phase -in in both systems in FY 2016-17. 2015 -16 Enrollment Projections Current Expense Funding for Local School Districts: 0111sd ITtRNEA I EAa - W5FA09 Original Budget $69,376,382 $62,389,900 $66,079,262 $7271477134 $7371867080 CHCCS OCS Total March 2015 Department of Public Instruction ADM Planning #s 127203 77525 197729 Less: out of District 131 89 220 127072 77437 197509 Plus: Budgeted Charter Students 157 354 531 Total Budgeted Students 12,239 7,891 29,949 51.07% 38.93% Current Expense Funding for Local School Districts: 0111sd ITtRNEA I EAa - W5FA09 Original Budget $69,376,382 $62,389,900 $66,079,262 $7271477134 $7371867080 61 Both Boards of Education presented their budget requests to Commissioners in April 2015. In consideration of those requests and other funding needs, this recommended budget includes the following appropriations for the Local School Districts. • Per pupil funding for the County's two local school districts increases to $3,652. This funds the North Carolina Department of Public Instruction (NCDPI) projected 322 decrease in student enrollment between both school districts, and increases funding to an additional 160 charter students. This represents a $1.438 million increase in current expense funding for both school districts combined. Local Current Expense funding supplements State and Federal funds received by each district for the day -to -day operation of schools. Examples of expenses paid from these funds include salaries and benefits for locally paid teachers and utilities. Noah Carolina statutes mandate boards of county commissioners provide local current expense monies to school districts. Counties having more than one school administrative unit, as is the case in Orange County, are required to provide equal per pupil appropriations to each system. The funding level, however, is discretionary and varies from county to county. • Recurring capital for both School districts remains the same as the prior year appropriation of $3 million dollars. Recurring capital pays for facility improvements, equipment, furnishings, and vehicle and bus purchases. State statutes mandate counties to fund recurring capital. However, the amount of money counties allocate to this function is discretionary and varies from county to county. • The long range/pay-as-you go capital expense for the local school districts remains the same as the prior year appropriation of $3.7 million. Long -Range Capital supports school capital projects through the County's Capital Investment Plan (CIP). Capital projects are funded through a combination of State and local bonds, non -bond financing and pay -as- you-go funding sources. Pay -as- you -go funding includes dedicated half -cent sales tax revenues and property tax earmarked under the Board's April 5, 2011 Capital Funding Policy. The Capital Policy also allows School Construction Impact Fees to offset School related debt service. Similar to Local Current Expense funding, the amount of money counties allocate to long -range capital expenditures is discretionary and varies from county to county. Per the April 5, 2011 Commissioner approved County Capital Funding Policy, it is the intent of the Board of County Commissioners to continue a capital funding policy that reflects the implementation of the Board of Commissioners' resolution of November 16, 2444 that the Board "does hereby adopt in principle a policy of allocating a target of 60 percent of capital expenditures for school projects and 40 percent of capital expenditures for county projects over the decade beginning in calendar year 2005" The Policy further states, "However, there will be times when the County will be bound fiscally and unable to achieve full funding. During those times, Commissioners may find it necessary to depart from the Policy." • The recommended budget provides for $15,646,916 in School Related Debt Service, which represents repayment of principal and interest on School related debt, including general obligation bonds and private placement loans. Noah Carolina statutes require counties to pay for school related capital items such as acquisition and construction of facilities. In instances where counties borrow funds to pay for such items, the State mandates counties to repay the debt. The amount of money counties borrow for school related projects is discretionary and varies from county to county. • The recommended budget includes continuing the Fair Funding allocation of $988,000 which represent funds, split equally between the two school districts ($494,000 to each district), to offset costs of safety and health services such as School Resource Officers and School Nurses. The State does not mandate counties to provide funding for these resources. • The recommended budget provides for $746,444 to continue the Commissioners' longstanding commitment to providing school health nurses at each school. This funding level is slightly increased from the FY 2414 -16 levels. • The Sheriff plans to continue providing School Resource Officers to support Orange County Schools. The Orange County Schools contributes $180,000 annually towards these expenses, and the annual net value of this Board of County Commissioners' commitment for FY 2015-16 totals approximately $291,000. Both School Districts requested increases in per pupil funding for FY 2015 -16. Orange County Schools requested an increase of $81 per pupil in order to receive approximately the same current expense funding as received in FY 2014 -15 due to the loss of 172 students, and Chapel Hill- Carrboro requested an increase of $302 per pupil in order to provide them with approximately $3.5 million in additional current expense funding as received in FY 2014 -15. To fully fund the Chapel Hill- Carrboro City Schools request will require additional revenues from a property tax increase or a reduction in County funded services elsewhere. The information below illustrates the property tax rate necessary to generate revenues to address the current expense requested by Chapel Hill- Carrboro City Schools in excess of the current increase recommended; the same per pupil increase would apply to Orange County Schools: Tax Increase 1 ce nt 2 cents 2.87 cents *Based on 24,444 Students Property Tax Revenues Generated $176557660 $373117320 $477517744 Per Pupil Equivalency $82.62 $165.24 $237.11 The required tax rate increase would be 2.87 cents to fully fund the budget request submitted by Chapel Hill- Carrboro City Schools, and would provide Orange County Schools with $1,849,695 more than requested. Additionally, the Chapel Hill- Carrboro City School District has requested the Board of County Commissioners consider an increase in the special district property tax rate to fully fund their X budget request. If approved, the additional revenues required to be generated to fully fund the CHCCS request with an increase in the special district tax would be as follows: Property Tax Per Pupil Tax I ncrease Revenues Generated Equivalency* 1 ce nt $170607189 $86.62 2.74 cents $2,943,768 $237.26 *Based on 12,239 projected students for the Chapel Hill- Carrboro City School District County Support of orange County Campus of Durham Technical Community College The recommended funding for the Orange County Satellite Campus of Durham Technical Community College, located at the Waterstone Development in Hillsborough, provides current expense funding of $621,875, recurring capital of $130,000, and debt service of $296,843. As with local school districts, counties in North Carolina are responsible for supplementing state and federal appropriations to community colleges. For the most part, counties are responsible for day -to -day operating costs such as utilities, security and custodial services. The Counties are not responsible for funding of teaching staff. Details regarding recommended funding levels for local school districts and Durham Technical Community College are located in the Education section of the budget document. During tonight's work session, Commissioners will have the opportunity to dialogue with the Boards of Education about county funding and anticipated State funding for schools next year. Attachments A & B provide additional information of how Orange County compares with other counties within Noah Carolina related to Current Expense funding per pupil, and other educational related funding issues. Attachment C is a Budget Update from Chapel Hill- Carrboro City Schools, Attachment D is a Memo from Orange County Schools, and Attachment E represents the School Districts Local Current Expense Fund Balance Policy. Sportsplex Attachment F provides detail of the Sportsplex FY241 6 -1 6 Operating Budget. County Departments During tonight's work session, Commissioners will have an opportunity to begin discussion with County departments regarding their budgets, including fee schedule change requests and associated non - departmental items. Additional departments will be present at the June 9, 2015 work session. FINANCIAL IMPACT: Included in the Background Section. RECOMMENDATION(S): The Manager recommends that the Board discuss the topics noted and provide direction to staff, as appropriate. Attachment A North Carolina Association of County Commissioners Budget & Tax Survey 2014 -15 8udaet -- General Fund Only General Statistics County Financial Assistance for Local Scheel Systems - 2D14-15 Assessed Valuation Property Tax 1 Cent Levy Equivalent at 10% 2D13 Certified Public School Planning Charter School Planning School Current • Total Debt Service for School Only - ®® NOUN ® Mr-M ® ® ® ®® ® ® NEFREW ® ®® ME"fiff-a-M - 2D14-15 Assessed Valuation Property Tax 1 Cent Levy Equivalent at 10% 2D13 Certified Public School Planning Charter School Planning School Current • Debt Service for SchoolOnly ' ® � '®® 001-M ® ® ®- - 2D14-15 Assessed Valuation Property Tax 1 Cent Levy Equivalent at 10% 2D13 Certified Public School Planning Charter School Planning School Current • Debt Service for School Only ' ®® ® ® ® ® ® ® ® ® ® ®® -- ----- - - - - -- -- ----- - - - - -- Total School Allocation Current ■ Current Exp. ■ Total Capital Debt Service Current Debt Service Per Capita ®® ® ® ® ® ® ® ® ® ® ® ®® ®® ® ® ® ® ® ® ® ® ® ® ®® Total School Allocation Current ■ Current Exp. ■ Total Capital Debt Service Current Debt Service Per Capita ®® ® ® ® ® ® ® ® ® ® ® ®® Total School Allocation Current ■ Current Exp. ■ Total Capital Debt Service Current Debt Service Per Capita ®® ® ® ® ® ® ® ® ® ® ® ®® Attachment B 13 Table 30 - County Appropriations and Supplemental Taxes for Education Year 2014 (School Year 2013 -14) 2014 681 Chapel - Hill /Carrboro City Schools 6214461618 51145 1 2014 280 Dare County Schools 1917961968 31991 2 2014 i l l Asheville City Schools 1515151783 3, 679 3 2014 320 Durham County Schools 11810731439 31569 4 2014 680 Orange County Schools 2515541154 31386 5 2014 190 Chatham County Schools 2515511130 31118 6 2014 880 Transylvania County Schools 918451374 21808 7 2014 950 Watauga County Schools 1210621834 21796 8 2014 650 New Hanover County Schools 64, 740, 640 21559 9 2014 100 Brunswick County Schools 3115541919 21541 10 2014 600 Charlotte - Mecklenburg County Schools 354,244, 548 21488 11 2014 410 Guilford County Schools 1 77,1 30,398 21467 12 2014 270 Currituck County Schools 8,971 ,907 21317 13 2014 491 Mooresville City Schools 1315311543 2, 308 14 2014 160 Carteret County Schools 1818501000 21257 15 2014 920 Wake County Schools 32319661127 21122 16 2014 750 Polk County Schools 417841788 21117 17 2014 340 Forsyth County Schools 11012211384 21071 18 2014 480 Hyde County Schools 111991568 21026 19 2014 690 Pamlico County Schools 215621453 21018 20 2014 730 Person County Schools 910381798 11986 21 2014 900 Union County Schools 7915971759 11940 22 2014 440 Haywood County Schools 1 4,391 ,679 11939 23 2014 1 1 0 Buncombe County Schools 49,01 4,628 11934 24 2014 422 Weldon City Schools 119661574 1 , 909 25 2014 630 Moore County Schools 24,41 4,51 0 11906 26 2014 291 Lexington City Schools 5,644, 046 11866 27 2014 60 Avery County Schools 319731725 11854 28 2014 500 Jackson County Schools 617201774 11830 29 2014 560 Macon County Schools 718421793 11817 30 2014 70 Beaufort County Schools 1214451150 1 ,786 31 2014 700 Pasq uota n k County Schools 1010041858 1 ,772 32 2014 200 Cherokee County Schools 517291338 11733 33 2014 30 AI leg ha ny County Schools 2,468, 742 11723 34 2014 292 Thomasville City Schools 410151790 11722 35 2014 370 Gates County Schools 2,81 8,696 11708 36 2014 830 Scotland County Schools 1011391325 1 ,686 37 2014 130 Cabarrus County Schools 50,380,1 08 11681 38 2014 670 Onslow County Schools 4015291260 11622 39 2014 800 Rowan- Salisbury County Schools 31 ,789,444 11613 40 2014 761 Asheboro City Schools 715621412 11613 41 2014 132 Kannapolis City Schools 8,51 6,088 11611 42 2014 861 Elkin City Schools 119521014 1 ,607 43 2014 580 Martin County Schools 513801044 11599 44 14 Table 30 - County Appropriations and Supplemental Taxes for Education Year 2014 (School Year 2013 -14) 2014 930 Warren County Schools 317751219 11596 45 2014 850 Stokes County Schools 1012111763 1 ,577 46 2014 660 Northampton County Schools 3,1 61 ,538 11573 47 2014 450 Henderson County Schools 2019431846 11558 48 2014 210 Edenton -Chows n County Schools 314211929 11548 49 2014 510 Johnston County Schools 52, 000,000 11545 50 2014 530 Lee County Schools 1513381050 1 ,542 51 2014 390 Granville County Schools 1213851287 11529 52 2014 350 Franklin County Schools 1310941566 11516 53 2014 862 Mount Airy City Schools 215051447 11502 54 2014 181 Hickory City Schools 613971719 11501 55 2014 490 1 redell- Statesville Schools 31 ,230,992 11497 56 2014 710 Pender County Schools 1219421622 11492 57 2014 740 Pitt County Schools 35, 076,287 11492 58 2014 260 Cumberland County Schools 7612201676 11491 59 2014 180 Catawba County Schools 2418211798 11487 60 2014 300 Davie County Schools 913331832 11465 61 2014 550 Lincoln County Schools 1615481422 1 ,457 62 2014 182 Newton - Conover City Schools 414321609 11447 63 2014 50 Ashe County Schools 4,448, 032 11414 64 2014 230 Cleveland County Schools 21 ,056,594 11399 65 2014 980 Wilson County Schools 1711551274 1 ,388 66 2014 460 Hertford County Schools 411731524 11379 67 2014 10 Alamance- Burlington Schools 3019771274 11376 68 2014 360 Gaston County Schools 4217261704 11373 69 2014 640 Nash -Rocky Mount Schools 21 ,907,431 11371 70 2014 821 Clinton City Schools 411391197 11370 71 2014 810 Rutherford County Schools 1112461442 1 ,327 72 2014 250 Craven County Schools 1819511126 1 ,324 73 2014 90 Bladen County Schools 6,1 89,970 11321 74 2014 421 Roanoke Rapids City Schools 3,930, 534 11320 75 2014 520 Jones County Schools 114251292 11297 76 2014 995 Yancey County Schools 219681141 11287 77 2014 720 Perq ui ma ns County Schools 2,200, 000 11242 78 2014 790 Rockingham County Schools 1518341840 1 ,2 1 7 79 2014 620 Montgomery County Schools 419981796 11215 80 2014 590 McDowell County Schools 716531263 11207 81 2014 140 Caldwell County Schools 1415251000 11204 82 2014 860 Su rry County Schools 913951269 11135 83 2014 290 Davidson County Schools 221357 , 717 1 , 1 30 84 2014 840 Sta my County Schools 9,570, 868 11113 85 2014 970 Wilkes County Schools 1018731988 1 , 1 06 86 2014 330 Edgecom be County Schools 6,666, 857 11103 87 2014 910 Vance County Schools 712021440 11102 88 2014 610 Mitchell County Schools 2112216221 110871 89 15 Table 30 - County Appropriations and Supplemental Taxes for Education Year 2014 (School Year 2013 -14) 2014 540 Lenoir County Schools 919001000 11086 90 2014 120 Burke County Schools 1318281400 11085 91 2014 40 Anson County Schools 318321250 11075 92 2014 760 Randolph County Schools 1912551785 11071 93 2014 990 Yadkin County Schools 518001431 11067 94 2014 430 Harnett County Schools 2017671085 11034 95 2014 20 Alexander County Schools 514001000 11030 96 2014 890 Tyrrell County Schools 5371320 11001 97 2014 960 Wayne County Schools 1 9,01 7,994 996 98 2014 80 Bertie County Schools 215031000 962 99 2014 570 Madison County Schools 213681901 945 100 2014 310 Duplin County Schools 910001000 938 101 2014 940 Washington County Schools 115251000 928 102 2014 770 Richmond County Schools 6,924, 932 914 1 03 2014 170 Caswell County Schools 214691413 905 104 2014 150 Camden County Schools 117031000 902 105 2014 220 Clay County Schools 111771191 895 106 2014 820 Sampson County Schools 713581212 866 107 2014 241 Whiteville City Schools 1191 91382 857 108 2014 240 Columbus County Schools 419831019 821 109 2014 420 Halifax County Schools 214811983 774 1 1 0 2014 400 Greene County Schools 211681000 689 i l l 2014 380 Graham County Schools 7471383 632 1 1 2 2014 470 Hoke County Schools 4,469, 874 547 1 1 3 2014 780 Robeson County Schools 1213751000 530 1 1 4 2014 870 Swain County Schools 7881843 397 1 1 5 2014 999 STATE TOTAL 2161817831325 1,755 16 Table 31 - Supplemental Taxes for Education Yeasr 2014 (School Year 2013 -14) LEA Amount PPA Rank Year Chapel - Hill /Carrboro City Schools 21 19331520 1 807 1 2014 Asheville City Schools 715221848 1 784 2 2014 Weldon City Schools 112871163 1 250 3 2014 Mooresville City Schools 510701623 865 4 2014 Cleveland County Schools 1112071024 745 5 2014 Elkin City Schools 8471298 697 6 2014 Asheboro City Schools 3,071 ,461 655 7 2014 Roanoke Rapids City Schools 118891699 635 8 2014 Thomasville City Schools 113211880 567 9 2014 Clinton City Schools 1 ,581 ,052 523 10 2014 Lexington City Schools 115431185 510 1 1 2014 Mount Airy City Schools 8281268 497 12 2014 Randolph County Schools 210821719 1 1 6 13 2014 Nash -Rocky Mount Schools 7251000 45 14 2014 Harnett County Schools 2431385 12 15 2014 Attachment C H 0 0 L S Date: May 21, 2015 To : Tom Forcella, Superintendent From: Todd LoFrese, Assistant Superintendent for Support Services Re: Budget Update On April 28, 20155 the Board's 2015-16 budget request was presented to the Board of orange County Commissioners. The Board requested an additional $3,539,191 (or $302 per pupil) in revenue to fund state mandates, maintain current services, and support priorities in our strategic plan. This week both the North Carolina house of Representatives' state budget proposal and the County Manager's recommended budget were presented. A review of both recommendations was conducted and items of significance and the associated local impact are briefly discussed below. 17 The proposed state budget includes a salary increase for all public school employees. Newer teachers (0 to 4 years of experience) would receive about a 6% increase and all other employees would receive a 2% increase. If enacted, it will require an additional $1.2 million in local dollars to implement this state mandate. This amount is precisely what our local request included. The proposed state budget also establishes required employer matching contributions for state retirement and we anticipate increases in health insurance rates. As proposed, approximately $21 0,000 of additional local dollars will be required. The state budget does restore funding for driver education, and if adopted, would not require additional local dollars to support driver training next year. After nearly 7 years of minimal funding, additional textbook and digital resource funding is part of the state budget (about 50% of 2008 levels). The state budget also maintains teacher assistant funding at 2014 -15 levels, but this would result in a small reduction to our district due to enrollment increases across the state. Transportation funding is also reduced, mostly attributed to lower diesel fuel costs. This week, the County Manager's recommended budget was presented to the County Commissioners, The County Manager's recommended budget included an additional $630,722 ($81 per pupil) for our school district. This however, is approximately $2.9 million less than our request. 18 If both budgets are adopted as presented, the district will be required to make reductions to current positions, services, and programs. Since we must meet state mandates, the cost of providing a well- deserved raise and meeting state retirement /medical benefit matches would require us to reduce our current local budget by nearly $800,000 dollars. Unless we made further reductions, we would not have funding to support any of our strategic plan priorities or expansion recommendations, most of which are essential to help us meet our goals. Finally it is important to recall that over the past 7 years, the district has made millions of dollars in reductions to our local operational plan and has received state reductions of nearly $10 million. We have run out of places to make reductions that do not impact the classroom or positions. An $800,000 reduction equates to 12 teaching position or 25 teacher assistants. In June we will present the Board with a budget update on work session as both the county and state will be further along in the budget process. While we can hope that the final budgets improve, we need to be prepared to make some tough decisions in the coming weeks. We will share additional information and considerations for the board to consider as we reconcile the differences between our request, the local budget, and the state budget. Attachment D 19 �Urange County Schools G00 Ea,st King Street ]FI9 lsllaorough, NC 27278 Pam Jones (9-19) 732-8i 1261 ' 'elephone Interini Superintendent (919) 732-8120 Fax www.orangeXI Inc.us To Orange County Board of Conimissi.oners 'n, -s Intcr'rn. Super`nten,..dcnt Froill 'n,, Jon...e.-s, Orange Counl.y Sch.00l .1 1. RE-0 FY' 201.6 Manager' s'[Zeco.m.:mended'Bud,ge:t Date: May 28, 201.5 Orange, Cou),'Ity Schools thanks, the County Manage'-r- fior recommemdIng t','u.,nd'ng hold's g Orange County Schools harinless for: the fundIng shortfall. that -would result ftom the projected, decreased student enrollment in. FY201.6. Reduced local funding combined with. continuing unftinded e a siifican a t dverse affec on t up the mandates associated with the State budget wo u d h gn educational off er'n,gs: of the District. 'We appreciate your understanding of these circunis tern ces 'I I -.ir in ta'ned, as a high and your e-ffo-ils to once agai,n ensure: educafion 'n Orange County is nla 1 1 priority-,, As Commissioner Dorosin nientioned, at the 'May 1:9 meeting, Orange County- S&hools has requested, the Board of Comimssioners autholl'zc the increase in,monthly compen sate on for the Board of Education. A copy of a letter making th e. request fTom Dr. 'Del. Bums, 'Fernporary Sopen' ate nd,ent at the time of penning, is attached, The action, will equalize th.e conipensation 1 1' '1 br the increasic, shou t 'both Boards of Education 'in the District.., Fund'ng f I- -i - -be approved county Com-in is,sioinens� choose: to! 'take StICII. action, WOUId, be addressed w4l.1-n t. app.ropriation t6r Orange County Schools. 'Your consideration of our re-quests is appreciated,, Cc,-, Orange County Schools Board of Educatioll. Enc: BUMS '1 /30/15 letter with, attach-nients 20 Orange County Sc3 pool9_1 200 East King Stree lY H"llsborough, NC 27278 Dr. Del Burns, (919) 732-8126 Telephone Temporary Superl'Wendent (91-9)73 -2- x.- 20 Fax WWW'Orange.klIne.us January 3 0, 201.5 Ms. Bormie Hammer sley Orange County Manager PO Box 81-81 Hillsborough, NC ;27278 Dear Ms. Harmnersley: In the course of reviewing matters related to the Orange County Board of Education, it has come to my attention that there exists a significant difference between the compensation of Orange -members and that of Chapel HRI-Carrboro C"ty Schools Board of County Board of Education Education members, Attached as information is a document listing all boards of education in North Carolliaa and, their compensation. Also attached is, a copy of G.S. §1. 15C-38 which. 4 mdicates that compensation for members o f a board, of education is fixed by the tax-levyfilg authority for the local school district. I respectfally- request that the Orange . County Board of Con'unissioners fix the compensation for the members of the Orange County Board of Education- such that it is the same as: that for the members of the Chapel Hill-Carrboro City Board of Education. The resultm"g increase, should the B.Pard of Commissioners approve this request, would be paid from the a.pproved county appropriation for Orange County Schools O Please let me know if lolls or 1 1 1 you have quest' wish additional information. Sincerely, Del. Burns, Ed.D. Temporary Superintendent /p Luc CC. Mr. Earl McKee, Board of County Commissioners Chair Dr. Stephen H. Halkiotis, Board of Education. Chair Enc: School Board Compensation Chart, G3. § 1 15C-28 School Board Adamance-Burlington Alexander County Alleghany County Anson County Ache County- Asheboro City Schools Asheville City Avery County Beaufort County Bertie County BIladen County Brunswick County Buncombe County !Burke County Ca-barrus County Caldwell County Camden County Carteret County Caswell County Catawba County '6 itl� 4itbdi ty Cha Chadoffe-Mecklenburg Chatham County Cherokee County Clay County Cleveland County Clinton City Columbus County Craven County Cumberland County Total Current Enrollment Expenditures 22638 $159,709,997.00 #Board Uembers 7 5655 $3.9,060,194..81 7 1587 $18,100,000.00 5 4065 $35,652,261.76 9 3266 $16,371,254.00 5 4449 $35,988,673.00 11 3739 $4.3,266,726.00 5 .223♦ $21,458,360.06 51 7205 $54,6411877.O8. 9 3045 $30,239,038.44 5 5435• $44,981,972.05 9 11607 $90,810,167..06 5 25734 $190,126,233.00 7 14178 $106:,801,0019.00 7 27132 $184,599,250.00 7 13168 $106,178,496.00 7 1905 $13,609,826.00 5 8278 $73,734,988.00 7 31.88 $25P038,297.00 7 17568 $119,842,762.00 7 11427 7 132281 $923,105,896.65 9 7752 $17,824,880.30 5 3,645 $31,080,587.00 7 1358 $11,551,655-25 5 16806 $122,445,859.00. 9 3103 $.22,745,95&.00 6 6889 $57,598, 493-00 5 14655 $103,199,266.00 7 52885 $200 monthly Board Member Board Chair Compensation Compensation (if diffl) ,$100 monthly same $120 Monthly $240 monthly + $40-6F- $40 Special spedal" called mtqIs $20 Committee $20 for committee mtgs ... . . . . .......... $35 meeting same $200 monthly $350 monthily — - — --------- $300 quarterly $375 quarterly $100 monthly $200 monthly $250 monthly $350 monthly $200 monthly $300 monthly $123 meeting $176 meeting $300 monthly $350 monthly $479 monthly $575 monthly 692.76 monthly $790.58 monthly $250 monthly $350 monthly $1-10,25 monthly $137,82 monthly $563 monthly $677 monthly $344, monthly $416 monthly $200-.00 monthly $212.50 monthly $386 monthly $435 monthly $53525 monthly $610.66 monthly $150 monthly $175 monthly .. ... $ 3' s5,40.:b ... .... Oalll� Chair,` $1,313.77 monthly $1,696.66 monthly $90 meeting $95 meeting $1,200 annually $1,400 annually $2,000 biannually $2,500 biannually $150 per mtg (2 $175 per mtg (2 per per month) month) $250 monthly $350 monthly $5-10 monthly $560 monthly $550 monthly $600 monthly Currituck County 4075 $30,810,192.00 5 $1,200 monthly $1,300 monthly Dare County 4819 $44,504.,306.00 7 $350 monthly $450 monthly .......... . . ..... Davidson County 20731 ...... $200 reg mtg/$60 Davie County 6705 $41,661,981.45 6 special $250 meeting Duplin County 9013 $12,053,576.00 6 $2,000 biannually same . .......... .... . ........... Durham Public Schools 32-749 $2.83441,604-00 7 $800 monthly $900 monthly Edenton-Chowan 2427 $23,339,106.00 7 $400 monthly - $500 monthly Edgecombe County, 7461 $57,478,463.00 7 $297.21 monthly $395-14 monthly Elizabeth City/Pasquotank 6168 $50,612,677.00 7 $350 monthly $450 monthly Elkin City 1255 5 $0 $0 Franklin County 8566 $54, 947,804.63 7 $500 monthly $600 monthly $694.75/vice $786. 7/ Gaston County 32583 $215,865,932.00 9 $675.25 monthly chair Gates County 1993 $10,827,064.58 5 $172.93 per mt9 $216.44 per mtg Graham County 1197 Granville County 8964 $63,391,590.00 7 $218 monthly $271 monthly Greene County 3319 $25,985,003.52 5 $400 monthly $450 monthly Guilford County 71292 $562,179,626.00 1.1 $1,000 monthly $1,100 monthly Halifax County 4558 $42,070,316.34 7 $525 monthly $575 monthly Hairneft County 18519 $127,743,814..00 5 $450 monthly $500 monthly, Haywood County 7975 $61,715,266.18 9 $1,500 biannually $1,800 biannually Haywood County 7975 Henderson County 13119 $92,934,711,00 7 $700 quarterly $875 quarterly q Hertford County 3.288 $30,275,433.00 5 $500 monthly $550 monthly Hickory City 4645 Hoke County 7414 $7,036,239.47 5 $400 monthly $450 monthly Hyde County 637 $9j)'11421095.00 5 $42 per meeting $50 per meeting Iredell-Statesville 21429 $137,620,700.00 7 $275.83 monthly same Jackson County Johnston County 3738 30337 $208,426,045M 7 $414.67 monthly $524.67 monthly Jones County 1.250 $14,079,891.06 5 $550 monthly $575 monthly Kannapolis City, 4990 $34,652,735-00 5 $50.0 monthly $600 monthly Lee County .9365 $66,706,573.49 7 $350 monthly $400 monthly Lenoir County 9670 $68,897,311-00 7 $30.0 monthly same ,Lexington- City 3096 $25,500,000.00 9 $20.0 monthly same Lincoln bounty 12206 $87,674,993..00 7 $400 monthly same Macon County 4357 $31,4921124.48 5 $200 monthly $25.0 monthly Madison County 2631 Martin County 4074 $35,137,080'.63 7 $350 monthly $400 monthly McDowell County 6570 .$47,274,07931 9 $400 monthly $450 monthly ... . ......... Mitchell County 2202 $17,864,971 r00 6 $100 monthly same . .......... . Montgomery County 4452 7 $1,200 biannually $2,400! Ujannually Moore County 12334 $94,074,692,00 8 $390 monthly $4615 monthly Mooresville City 5440 $32,487,420r ;00 5 $150 monthly $200 monthly .. ..... . ..... . ........ Mount Airy City 1667 $14,884,627,00 7 $0. Nash-Rocky Mount 17831 .......... ... New Hanover County 24058 $185,072,062.00 7 $900 monthly $1,082 monthly .. . .......... . ... NevAon-Conover City 2856 $22,990,91-7.18 6 $225 quafterly $450 quarterly Northampton County 2724 $28,667,278.00 7 $400 imonthly $450 monthly. Onslow County 23542 $150,4741,232.00 7 $427,50 monthly $475 monthly. rppge' ��(?Ljn ty. 6973 $61992,689..00 7 Mi anth y.:.�...... n $.1 5 MO% ithlY ParnliGo . C - o . unty 1503 $15,530,614.00 7 $100 monthly $125 monthly Ponder County 7967 $54,21.6,775..00 .5 $650 monthly $700 monthly. Perqui'mans County 1805 $16,470,319,84 6 $200 monthly $265 monthly Person County 5.573. $44,348,173..46 5 $5,000 annually: same Pitt, County 2.2996 $160,254,237.94 12 $200 monthly $3510 monthly. Polk County 2482 $21,413,146,92 7 $300 monthly $350 monthly Randol'ph County 19074 $122,770,150 7 $300 monthly $400 monthly Richmond County 7977 $72,313,275.00 7 $325.00 monthly $350.00 monthly Roanoke Rapids City 2971 $23,.269,496..00 9 $200 monthly $250 monthly Robeson County 23998 Rockingham County 14333 $117,5141335.00 13 296.84 mon thly 369 41 monthly . Rowan - Salisbury 20890 7 $20;0 monthly $300 monthly Rowan- Salisbury 20890 Rutherford County 9696 $87,748,664.00 6 $150 monthly same Sampson County 8406 $64,843.636.00 7 $2,750 annually $3,500 annually Scotland County 6815 $57,344,000.00 8 $300 monthly same Stanly County 9522 $68,499,794.00 9 $225 monthly $325 monthly Stakes County 7621 $54,458,113.00 5 $500 monthly $600 monthly. Surry County 8732 $59,407,533,.00 5 $200 monthly same Swain County 1847 $17,283,040w69 5 $350 monthly $400 monthly. PO CO Thomasville City 2693 $22,340,848.00 5 . $100 monthly . . .. . .............. . . . . . .......... ............. . . .... ............... . ..... ......... . same Transylvania County 3774 $30,573469,00 5 $600 quarterly $750 quarterly $200 first mtg, $166 Tyrrell County 568 $3,8.74,83&84 5 $100 meeting subsequent mtg Union County 36755 $208.,587,863.00 9 $200 monthly $252 monthly Vance County 76901 $62,484,000.00 7 $350 monthly $40:0 monthly ............. Wake County 134002 $866,404,798.00 9 191,81 monthly $1,457.15 monthly Warren County 2720 $24,271,594.54 5 $230 monthly $255 monthly Washington County 2198 $21,043,130,00 5 $2001 monthly $300 monthly Watauga County 4508 $35,914,385.00 5 $4,500 annually $5,000 annually- Wayne County 19092 $139,432,046.00 7 $825 monthly $925 monthly Weldon City 1017 $88377,529.36 7 $350 monthly $400 monthly .......... Whiteville City 2613 $2.0,047,660.00 5 $510 month $560. monthly Wilkes County 10131 5 $400 monthly $500 monthly Wilson County 1265 $83,349,596.00 7 $300 monthly $350 monthly $777.85/vice $837.421 Winston - Salem/ o rsyth County Schools 51351 $376,239,432,00 9 $718.25 monthly chair Yadkin County 61'10 $44,891,774.76 7 $175 monthly $2.25 monthly Yancey County 2516 $20,300,000.00! 5 $300 monthly $350 monthly § 115,C-38, Compensation of board rn.embers. T, lie tax -le vyinn authority for a local sthoo;J adm�n:'Mraitive unit may, under the procedUres, of GS, 1.53A- wances paid members of the board of educa-don of that. local 92f fix the coryiipensation and expense allo I school: administrative unt, Fund's for the per dlem, subsisten-ice, and mileage for all mee tin gs of county and cl-ty boards of education . shall be provided from the current expense fund budget of the particular county or city,, Th e. compensation and expense allowances of members of boards of education shall continue at the saris e levels as paid on July 1.1 1975, until changed by or pursuant, to local: act or- pursuant to this Section. (.1,955,, c,, 1,372, art. 5, s, 12; 1,975, c. 569, s.s. 131 1977, c, 80 2,. s� 39..5� 198 1., c. 423, s. 1.) § 153A-92, Compensatioti. (a) Subject to the I'Mitations set -forth in subsection (b) of this section,- the board of commissioners shah fix or approve the sichedule of pay, expense Mlowatwes, and other compensation., ofali county f . o icers and employees, whether Oected or apposri� d may ad-opt position class i ficatio ni plans. f" " t e d, a n .1 , M In exercising. the a uthority granted by subsection (a) of this section., the board of commissioners is subject, to the following limitations: rs may riot reduce the salary, allowances, or other compensation paid (1) The, bioard of commissione .1 to an officer elected by the people for the dutles of hl's elective office if the redUctlon is to take effect during the term of office for which the Incumbent officer has been elected, unless the officer agrees to the red Uction or unless the Local Government Commission pursuant to Chapter 159, Article 10, orders a. re d u c ti i o rit y (2) Dudng the year of a general Oectioni, the board of commissioners may reduce the sala r j ne4l election on�y i aHow<ainces, or other- compensation of an. officer to be elected apt the ge. in accordance w fth ioners shall by res.olu-tion e of ini :1 -this subd'vision!,, The board. of , give in otic tendon to make the reduction no later than 14 days be-fore the last day for filing notice of candidacy- for the office. The reSOIL)tlon shall set firth -the reduced salary, allowances, and other compensation and shalil provide -that the reduction is to taike effect at the time the person elected to the office in the general election takes office,, Once adopted, the resolution may not be altered until the person elected to the office in the general election has taken office. The filing fee for the office shall be determined by reference to the reduced salary. (3) If the board of commissioners reduces the salaries, allowances, or other compensation of employees assigned to an officer elected by the people, and the reduction does not apply alike to! alli county offices and departments.,. the elected . officer involved must approve the reduction. If the elected -1 eet and attempt to -d of commissioners sly 11'eftlSeS tO approve the red ti n, he and the boar h l m i reach agreement. If aigreernie:nt cannot be: rieached,, either the board or the officer may, refe r the dispute -to arbitration by the senior resident: suped-or court judge of the superior court dilsitrict or set of' districts as defined in GS. 7A-41.1 in which the co-unty us located. The judge shall make an award within 30 days after the day the matter is referred to him. The award mi-ay extend for no more than two fiscal years,, iii nC1 Lid" ng the fiscal yea r for wh ich it is, mad e 25 26 -oners Tall fix their own. s. (4) The board of commissi alaries, allowances, and other cornpensation in accordance with &S. 15.3,A-.2.8. (5) The board of commissioners shall fix the salaries, allowances , and other- com,pensation of county empliloyees subject to the North Carolina HUrnan Resources Act according to the procedures set forth in Chapter 126.'The: board may make these employees SUbJect to a county position classifilcation plan only as provi ded 'in Chapter 126. M In countles with a county manager, the manager is responsible for preparing position classification and pay plans for submission to the board of: commissioners and for admilnistering the pay I eneral polides and directives adopted by plan and any position classification plan in accordance with, g, i the board. 11`1 CO Unties without a county manager, the board of commissioners shafl appoint or designate a personnel officer, who shall; then be responsible for administering t he pa n and any position class]'fication. plan in accordance Mt h general pol,'$'61es and directives adopted by the: board, any alth insurance or both for the benefit of al] or, (1d) A county may purchalse life insurance or lie , class of county offi cers and employees as a part of their compensation. A county may provId e. other fringe benefits for county officers, and employees, In providing health insurance to county officers and employees, a county- shall not provide abortion coverage greater than that provided by the State Health Plan for Teachers and State Employees under Article 3B of Chapter 135, of the General Statut 'esm. (1-927, Cm 91, S� 8; 1953, c. 12.27,, ss. 1-3; 1969, c. 358, s. 1; c, 1.017; 1973,,c. 822, s. 1; 1987 (Reg, Sess., 1988), c, 1037i s. 122,, 2013-3660 s, 2(.b,)- 2013-382) s, 91(c).) Attachment E 27 BOCC Approved 1012112008 School Districts Local Current Expense Fund Balance Policy Joint Policy Between Orange County Board of County Commissioners Chapel Hill Carrboro City Schools Board of Education Orange County Schools Board of Education 1. Guidelines The School Budget and Fiscal control Act (SBFCA) establishes accounting, budgetary and fiscal control guidelines for School Systems. The SBFcA is codified in G.S. chapter 115c, Article 31, beginning at G.S. 115c -422. This act parallels the statutes established for Local Government with a few exceptions. 2. Definitions 2.1. Total Fund Balance — The difference between a school system's total assets and its total liabilities at the end of the fiscal year. 2.2. Fund Balance Available for Appropriation — The sum of a school system's assets held in cash and investments minus the sum of the school system's liabilities and encumbrances at the end of the fiscal year as outlined in G.S. 11 5c -425 of the SBFcA. 2.3. Designated Fund Balance — The amount of the available fund balance that has been appropriated for the budget year through budgetary action of the School Board. 2.4. Undesignated Fund Balance - The difference between Fund Balance Available for Appropriation and Designated Fund Balance. 3. Policy 3.1. Fund Balance for cash Flow Purposes — Each school district will make a good faith effort to maintain a level of u ndesig naed fund balance that will ensure sufficient funds are available to address its cash flow needs. The following levels are to be maintained for cash flow purposes only: 3.1.1. chapel Hill carrboro city Schools - The targeted level of u ndesig nated fund balance for cash flow purposes will be at a minimum of 5.5 percent of budgeted expenditures. 3.1.2. orange county Schools — The targeted level of undesignated fund balance for cash flow purposes will be at a minimum of 3 percent of budgeted expenditures. 28 BOCC Approved 1012112008 3.2. Accumulated Fund Balance Above cash Flow Purposes - In the event that either school district accumulates more than the percentage amounts allowed for cash flow purposes, the respective Boards of Education will develop a plan in place for spending the accumulated fund balance surplus for non - recurring purposes. The Board of Education will share that plan with the Board of County commissioners 3.3. Fund Balance Appropriation occurring outside the Normal Annual Budgeting Process — Appropriation of fund balance is a budgetary action that rests with elected bodies of each school system. It is highly desired that fund balance appropriations be limited to non - recurring expenses. Both school districts have historically appropriated fund balance as a part of their normal budgeting process, and this practice will remain until additional revenue is available to eliminate the use of fund balance. The Board of Education should note and explain significant deviations in the normal budgetary appropriation as a part of the budget narrative accompanying the recommended and adopted budgets. If the Board of Education finds it necessary to appropriate fund balance, outside the normal annual budgeting process, the Board of Education shall highlight the appropriation in their next fiscal year's budget request. The County commissioners are not obligated to increase local current expense in order to fund recurring items for which the Board of Education appropriates fund balance outside of the normal budgeting process. 4. Undesignated Fund Balance — U ndesigna ed fund balance may be allowed to accumulate above the cash flow percentages under certain circumstances. School Boards will develop a detailed plan for future use of accumulated fund balance. Boards of Education are to use u ndesig na ed fund balance to address unforeseen events or opportunities. In these instances, it is the responsibility o the Board of commissioners to work with the School Boards to address the extraordinary issues. 5. Extraordinary Emergency Needs —There may arise a time in the future when one or both school district(s) experience(s) an unforeseen extraordinary uninsured event that greatly compromises how the district(s) serve(s) children. In such instances, there may be a need for the school district(s) to use some or all of its fund balance. In such instances, the Board(s) of Education is(are) to take appropriate action to correct the problem, and following necessary budgetary action by the Board of County Commissioners, the County will reimburse the School Board(s) for the necessary expenditures. 5. Policy Review - The School/County collaboration Work Group shall review this policy every 18 months to determine if changes to the policy are necessary. Attachment F Orange County SportsPlex Budget Jul -15 Aug -15 Sep -15 Oct -15 Nov -15 Dec -15 Jan -16 Feb -16 Mar -16 Apr -16 May -16 Jun -16 2015/2016 Budget Revenues Ice Rink Programs 54AS0 103.603 122.440 67.215 71.348 152.944 152.250 84.650 69.500 101.000 51.110 54.545 1_.115355 Aquatics 4L200 41100 33300 29.200 31700 39.700 37.300 36.500 37.500 29.500 44.500 30.500 436.000 Kidsplex 45A54 4L294 31606 27364 27309 26.697 29,035 26A44 34.641 26A44 27.127 3&592 354,010 Membership and Wellness 91951 %145 55355 9& &72 77AS7 %615 55,500 59,500 59.100 55,500 56A00 %500 1.051.525 Other Income 11715 11220 11115 11025 16.115 17.915 22.515 15.515 15315 11115 11415 15.497 153.077 Total Revenues 245.500 256362 256.519 235.676 225.959 323.571 327.203 252.909 246356 255.559 251.552 225.634 3.170.000 Expenses Advertising L000 L100 L500 L000 2.000 2.000 2.000 L500 L500 2.000 L400 L000 15.000 Credit Card Fees 3.000 3.000 3.600 3.234 3.500 3.600 3.600 3.500 3.200 3.100 3.000 3AS2 39.516 IT Costs 2_.650 5.000 3_.950 3.721 2_.665 1300 3.000 3_.000 3.000 3.000 3.000 3.000 37.259 Education, Certif.. Lic. & Dues - 1_.000 640 1_.000 200 1_.000 1_.000 900 1_.000 1_.000 1_.260 1_.000 10.000 Equipment Lease L225 950 1,100 950 950 950 950 950 950 750 750 750 1 L225 Concession and Kidsplex Food 5,133 7.550 7.550 7.550 9,555 10.295 10.550 7A00 7.550 7.660 7.550 &000 99376 General Insurance 4.520 2.260 - - 2300 6.922 3.000 2.000 2.500 3.000 3.000 3.000 31502 Payroll Costs: Admin Payroll 19.600 19.600 19.600 2&000 19.600 20.000 20.000 20.000 20.000 20.000 30.000 20.000 256.400 Operating Wages 46.797 46.656 49,540 71515 49.175 4&221 54.655 51155 49.655 70AS2 60.655 51636 655.775 Payroll Taxes & Benefits 6.960 6.953 7.290 10.650 7.207 7.174 7,556 7,651 7306 9AS3 9A96 7.609 95.693 Health Insurance 14.000 14_.000 14_.000 14_.000 14_.000 14_.000 14.000 14.000 11000 13_.000 16_.000 16_.000 170.000 Insurance Works Comp 1,567 - - - 934 525 1,500 1,500 1,500 - - - 9.026 Landscaping 555 535 535 535 550 550 550 550 550 550 550 550 9,590 Maint & Repairs Bldg 2.000 5.040 1 L260 2.650 3.050 5,150 5.500 5.500 5.500 6.000 5.650 4.700 65.000 Maint & Repairs Equip 6.550 6.925 &500 &540 4.655 5.000 7.000 6.950 7.000 7.000 7.000 4,550 50,000 Office Costs and Supplies 500 500 750 500 L500 650 1.000 L000 L000 750 750 L000 10.200 Operating Supplies 5,191 9,541 &641 5.941 6.791 10.041 9.941 &741 &941 10.441 &941 &696 105,147 Outside Services L500 L500 L000 1.100 L000 L000 1.500 1.500 1.500 1.500 1.500 1.500 17.900 Management Fees 11412 11412 11412 11412 11412 11412 12.412 11412 11412 11412 11412 11412 145.944 Contract Coaches /Trainers 36.500 31597 37.205 47.955 40.175 37.055 32.400 25.100 30.500 3 L000 37.000 31400 420.157 Travel/Transpor-tation/OPT 2.920 3.295 4,131 3.931 4352 3.741 3,552 4,131 3.965 4.076 4,132 3,511 46.037 Utilities: Electric 21000 21000 21500 17.200 15.500 11000 13.000 11000 11000 15.500 15.000 15.000 201.000 Natural Gas 6_.600 6_.600 5_.100 5_.600 5_.600 10_.100 9_.900 9_.100 9_.100 5_.100 7.600 7.600 100.000 Telephone 220 - 220 125 - 625 700 700 700 740 1.137 L726 6,593 Water 5.000 5.500 5.700 5.700 7.000 7.000 7.600 6.900 5.900 5.900 5.900 5.900 74.000 Total Expenses 217350 221.744 234.274 263.163 220.675 227.211 231.366 215.070 215.129 241344 247.253 222.652 2.720.000 Net Contribution 3 L420 64.615 51545 (27,457) 5,254 96.660 95,535 37,540 3 L225 14.515 4.270 5.952 450.000 � [D