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HomeMy WebLinkAboutAgenda 05-12-22; 2 - FY 2022-23 Budget Work Session with Chapel Hill-Carrboro City Schools and Orange County Schools 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 12, 2022 Action Agenda Item No. 2 SUBJECT: FY 2022-23 Budget Work Session with Chapel Hill-Carrboro City Schools and Orange County Schools DEPARTMENT: County Manager and Finance and Administrative Services ATTACHMENT(S): INFORMATION CONTACT: Bonnie Hammersley, (919) 245-2300 A. NC Public Schools/DPI-Per Pupil Travis Myren, (919) 245-2308 Allocations by County Rebecca Crawford, (919) 245-2152 B. Historical Per Pupil Appropriation Gary Donaldson, (919) 245-2453 C. Historical CHCCS District Tax D. School Districts Local Current Expense Fund Balance Policy E. Schools Capital Projects Summary (Revised) PURPOSE: To review and discuss the Chapel Hill-Carrboro City Schools and Orange County Schools FY 2022-23 Operating and Capital Investment Plan Budgets. BACKGROUND: The County Manager presented the FY 2022-23 Recommended Budget on May 3, 2022. Since that time, the Board has conducted one public hearing to receive residents' comments regarding the proposed funding plan. This discussion is the first opportunity the Board has had to discuss next year's recommended funding plan related to Education funding. Total K- 12 Education funding as included in the FY 2022-23 Manager Recommended Budget is $120,324,620, or 47.1 percent of General Fund revenues. This includes funding for current expense, school related debt service, and school health and safety service contracts. Total Funding for Local School Districts: 2018-19 2019-20 2020-21 2021-22 2022-23* Original Budget $109,141,519 $113,480,859 $113,939,715 $116,721,030 $120,324,620 *Recommended Budget Student Enrollment Projections: Based on North Carolina Department of Public Instruction (DPI) projections, the Chapel Hill- Carrboro City School District enrollment for fiscal year 2022-23 totals 11,442, for an overall decrease of 909 budgeted students when compared to FY 2021-22. 2 Based on DPI projections, the Orange County Schools district enrollment for fiscal year 2022-23 totals 8,023, for an overall decrease of 87 budgeted students when compared to FY 2021-22. March March March March CHCCS 2021 DPI 2022 DPI Difference OCs 2021 DPI 2022 DPI Difference #s #s #s #s DPI Enrollment 12,448 11,466 -982 DPI Enrollment 7,299 7,182 -117 Less: Out-of-District 253 229 -24 Less: Out-of-District 108 110 2 Subtotal 12,195 11,237 -958 Subtotal 7,191 7,072 -119 Plus: Current Charter 156 205 49 Plus: Current Charter 919 951 32 Students Students Total Budgeted 12,351 11,442 -909 Total Budgeted 8,110 8,023 -87 Students Students %Distribution By District 60.36% 58.78% -1.58% % Distribution By 39.64% 41.22% 1.58% District The North Carolina General Assembly requires school systems to pay a per pupil allotment to support charter students within their districts. School Districts Budget Requests Both School Districts requested increases in per pupil funding for FY 2022-23 as detailed in the tables below. FY 2021-22 FY 2022-23 FY 2022-23 Total Total OCS Approved Continuation Expansion FY 2022-23 FY 2022-23 Increase Increase Increase Request ADM 8,110 8,023 8,023 8,023 8,023 Current Expense $35,416,370 $1,100,000 $4,319,500 $5,419,500 $40,835,870 Per Pupil Equivalent $4,367 $137 $538 $675 $5,090 FY 2021-22 FY 2022-23 FY 2022-23 Total Total CHCCS Approved Continuation Expansion FY 2022-23 FY 2022-23 Increase Increase Increase Request ADM 12,351 11,442 11,442 11,442 11,442 Current Expense $53,936,817 $2,370,000 $5,795,000 $8,165,000 $62,101,817 Per Pupil Equivalent $4,367 $207 $506 $714 $5,428 Current Expense The recommended appropriations for Chapel Hill-Carrboro City and Orange County Schools increases the current expense funding by $4,225,596 in FY 2022-23 as detailed in the tables below. This includes per pupil funding to increase to $4,808 for each of the 19,465 students in the two school systems. 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. North Carolina statutes mandate boards of county commissioners to 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. 3 FY 2021-22 Total Total FY 2022-23 OCs Approved FY 2022-23 Recommend Difference Request ADM 8,110 8,023 8,023 0 Current Expense $35,416,370 $40,835,870 $38,570,900 $2,264,970 Per Pupil Equivalent $4,367 $5,090 $4,808 $282 FY 2021-22 Total Total FY 2022-23 CHCCS Approved FY 2022-23 Recommend Difference Request ADM 12,351 11,442 11,442 0 Current Expense $53,936,817 $62,101,817 $55,007,882 $7,093,935 Per Pupil Equivalent $4,367 1 $5,428 $4,808 $620 Recurring Capital Recurring capital for both School districts remains the same as the prior year appropriation of $3 million dollars. The budget for FY 2022-23 includes $1,763,400 for Chapel Hill-Carrboro City Schools and $1,236,600 for Orange County Schools. For FY 2022-23, a mix of debt financing (see page 95 of the Capital Investment Plan (CIP)) and pay-as-you-go funding (see page 132 of the Operating Budget) is recommended for Recurring Capital. 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. Note: These amounts have been revised (represented by yellow highlighting on Attachment 2-E) from the Original Recommended Capital Investment Plan to reflect the revised average daily membership (ADM) percentage, as included in the FY 2022-23 Manager Recommended Operating Budget. Long Range Capital The County plans and programs long-range school capital funding through the County's Capital Investment Plan (CIP). The recommended CIP budget for FY 2022-23 includes $2,502,680 for Chapel Hill-Carrboro City Schools and $1,755,026 for Orange County Schools, as detailed on Attachment 2-E, which is an updated version of page 95 of the CIP using the most recent ADM for each district. This combines to a total of$4,257,706, which represents an increase of$83,484 from FY 2021-22. A 2% annual growth rate is included throughout the years of the CIP related to Long Range Capital. For FY 2022-23, as was the case in FY 2021-22, debt financing will be utilized, instead of pay-as-you-go funds for Long Range Capital projects. 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. School Debt Service The recommended budget provides for $21,807,353 in School Related Debt Service, which represents repayment of principal and interest on School related debt, including general obligation bonds and private placement loans. This is a decrease of $1,930,893 from FY 2021-22. North 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. 4 Health and Safety Service Contracts The recommended budget includes $3,738,485 for the Health and Safety Service Contracts for both school districts to cover the costs of School Resource Officers in every middle and high school, and a School Health Nurse in every elementary, middle, and high school in both school systems. This represents a 3% increase over the FY 2021-22 funding amount. Capital Investment Plan The FY 2022-23 Manager Recommended Capital Investment Plan includes funding of $18,088,811 in FY 2022-23, and a 10-Year total of $101,939,541, for Chapel Hill-Carrboro City Schools. Funding of $9,925,349 in FY 2022-23, and a 10-Year total of $64,380,719, is included for Orange County Schools. The new split of funding per school system is detailed on Attachment 2-E. Supplemental Deferred Maintenance Program The FY 2020-21 CIP introduced a supplemental funding program for deferred maintenance and life and safety improvements in schools. The program would involve an expenditure of$30 million over a three year period to expedite each School District's backlog of deferred maintenance projects in anticipation of a potential general obligation bond referendum in future years. The total amount was divided between the Districts on the basis of average daily membership in FY 2020-21. As a result, Chapel Hill-Carrboro City Schools was allocated 59.99% or$17,997,000 of the $30 million total while Orange County Schools was allocated 40.01% or $12,003,000 of the total amount. The FY 2022-23 CIP recommends a second round of $30 million over two years for additional school funding. These funds are split between the Districts on the basis of the average daily membership in FY 2022-23. As a result, Chapel Hill-Carrboro City Schools will be allocated 58.78% or $17,634,000 of the $30 million total while Orange County Schools will be allocated 41.22% or $12,366,000 of the total amount. These funds are split so that 10% or $3 million can be spent in FY 2022-23 for planning and professional services, so that the remaining 90% or $27 million can be "shovel ready" immediately in FY 2023-24. The two rounds of funding can be combined by the schools to complete larger projects as detailed in the tables below. CHCCS FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 Total Original FY 2020-21 Allocation $ 1,800,000 $ 10,000,000 $ 6,197,000 $ 17,997,000 Recommended FY 2022-23 $ 1,763,400 $ 15,870,600 $ 17,634,000 Allocation Total Funding $ 1,800,000 $ - $ 11,763,400 $ 22,067,600 $ 35,631,000 5 Oc5 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 Total Original Allocation $ 4,150,000 $ 3,600,000 $ 4,253,000 $ 12,003,000 Recommended Additional Allocation $ 1,236,600 $ 11,129,400 $ 12,366,000 Total Funding $ 4,150,000 $ 3,600,000 $ 5,489,600 $ 11,129,400 $ 24,369,000 The expenditures to date for CHCCS and OCS from the FY 2020-21 Allocation are $849,308 and $320,400 respectively. Board members have the opportunity to discuss County funding and anticipated State funding for schools next year with Chapel Hill-Carrboro City Schools and Orange County Schools. Attachment 2-A provides additional information of how Orange County compares with other counties within North Carolina related to Current Expense funding per pupil and other educational related funding issues. Attachment 2-B provides a history of the Per Pupil Appropriation. Attachment 2-C provides a history of the Chapel Hill-Carrboro City Schools District Tax. Attachment 2-D represents the School Districts Local Current Expense Fund Balance Policy. Attachment 2-E presents the revised Capital Investment Plan Schools Projects Summary to reflect the revised ADM%, as included in the FY 2022-23 Manager's Recommended Operating Budget. FINANCIAL IMPACT: Information on the financial impact is included in the above Background section. SOCIAL JUSTICE IMPACT: There are no Orange County Social Justice Goal impacts associated with this item. ENVIRONMENTAL IMPACT: There are no Orange County Environmental Responsibility Goal impacts associated with discussion of this item. RECOMMENDATION(S): The Manager recommends that the Board discuss the topics noted and provide direction to staff, as appropriate. 6 Table 30 - County Appropriations and Supplemental Taxes for Education Year 2021 2021 999 STATE TOTAL 3,424,502,495 2,331 0 2021 681 Chapel-Hill/Carrboro City Schools 78,595,078 6,749 1 2021 111 Asheville City Schools 22,324,157 5,417 2 2021 680 Orange County Schools 35,942,503 5,130 3 2021 320 Durham County Schools 151,278,656 4,9101 4 2021 280 Dare County Schools 23,230,449 4,643 5 2021 190 Chatham County Schools 36,253,921 4,253 6 2021 880 Transylvania County Schools 12,752,827 4,000 7 2021 600 Charlotte-Mecklenburg County Schools 522,632,548 3,799 8 2021 650 New Hanover County Schools 83,374,975 3,431 9 2021 100 Brunswick County Schools 41,039,549 3,431 10 2021 480 Hyde County Schools 1,700,000 3,414 11 2021 920 Wake County Schools 526,003,342 3,355 12 2021 422 Weldon City Schools 2,202,222 3,352 13 2021 491 Mooresville City Schools 19,407,185 3,303 14 2021 110 Buncombe County Schools 69,761,937 3,200 15 2021 410 Guilford County Schools 209,610,398 3,156 16 2021 950 Watauga County Schools 13,864,099 3,128 17 2021 690 Pamlico County Schools 3,457,872 3,025 18 2021 160 Carteret County Schools 23,274,410 3,014 19 2021 930 Warren County Schools 4,964,331 2,937 20 2021 660 Northampton County Schools 3,500,000 2,859 21 2021 270 Currituck County Schools 11,478,196 2,791 22 2021 350 Franklin County Schools 21,192,936 2,765 23 2021 60 Avery County Schools 4,770,000 2,696 24 2021 340 Forsyth County Schools 134,708,592 2,678 25 2021 750 Polk County Schools 5,429,441 2,649 26 2021 70 Beaufort County Schools 14,587,140 2,489 27 2021 900 Union County Schools 98,566,814 2,4821 28 2021 730 Person County Schools 10,442,896 2,4781 29 2021 200 Cherokee County Schools 6,909,596 2,454 30 2021 850 Stokes County Schools 13,056,771 2,435 31 2021 700 Pasquotank County Schools 11,364,000 2,430 32 2021 500 Jackson County Schools 8,267,941 2,360 33 2021 440 Haywood County Schools 15,727,003 2,347 34 2021 580 Martin County Schools 6,000,000 2,303 35 2021 292 Thomasville City Schools 4,791,312 2,292 36 2021 450 Henderson County Schools 28,928,000 2,263 37 2021 630 Moore County Schools 27,714,377 2,2561 38 2021 980 Wilson County Schools 22,461,930 2,2281 39 2021 370 Gates County Schools 3,119,575 2,205 40 2021 130 Cabarrus County Schools 71,322,993 2,191 41 2021 670 Onslow County Schools 55,898,128 2,166 42 2021 761 Asheboro City Schools 9,496,072 2,162 43 2021 710 Pender County Schools 20,220,842 2,157 44 2021 132 Kannapolis City Schools 11,227,539 2,136 45 2021 291 Lexington City Schools 6,284,511 2,1341 46 7 2021 300 Davie County Schools 11,840,402 2,075 47 2021 560 Macon County Schools 8,786,447 2,069 48 2021 530 Lee County Schools 18,912,278 2,065 49 2021 800 Rowan-Salisbury County Schools 36,414,914 2,038 50 2021 510 Johnston County Schools 72,000,000 2,016 51 2021 490 Iredell-Statesville Schools 40,068,018 2,006 52 2021 10 Alamance-Burlington Schools 42,003,142 1,982 53 2021 390 Granville County Schools 13,248,310 1,977 54 2021 30 Alleghany County Schools 2,521,101 1,956 55 2021 210 Edenton-Chowan County Schools 3,500,000 1,936 56 2021 50 Ashe County Schools 5,323,080 1,924 57 2021 830 Scotland County Schools 10,044,895 1,924 58 2021 181 Hickory City Schools 7,162,474 1,915 59 2021 821 Clinton City Schools 5,460,542 1,914 60 2021 720 Perquimans County Schools 2,900,000 1,851 61 2021 740 Pitt County Schools 41,497,811 1,847 62 2021 861 Elkin City Schools 2,229,028 1,838 63 2021 182 Newton-Conover City Schools 5,081,350 1,833 64 2021 180 Catawba County Schools 27,817,698 1,831 65 2021 810 Rutherford County Schools 13,187,976 1,798 66 2021 230 Cleveland County Schools 24,387,081 1,784 67 2021 995 Yancey County Schools 3,375,751 1,784 68 2021 90 Bladen County Schools 6,831,521 1,768 69 2021 250 Craven County Schools 22,021,335 1,765 70 2021 421 Roanoke Rapids City Schools 4,404,436 1,732 71 2021 360 Gaston County Schools 49,811,704 1,725 72 2021 862 Mount Airy City Schools 2,815,018 1,715 73 2021 260 Cumberland County Schools 80,711,700 1,709 74 2021 520 Jones County Schools 1,627,789 1,708 75 2021 460 Hertford County Schools 4,290,818 1,688 76 2021 80 Bertie County Schools 3,027,671 1,685 77 2021 940 Washington County Schools 1,739,398 1,681 78 2021 590 McDowell County Schools 9,243,000 1,655 79 2021 640 Nash-Rocky Mount Schools 23,096,054 1,655 80 2021 620 Montgomery County Schools 5,496,501 1,594 81 2021 20 Alexander County Schools 7,065,060 1,579 82 2021 420 Halifax County Schools 3,149,169 1,561 83 2021 760 Randolph County Schools 22,982,601 1,549 84 2021 40 Anson County Schools 4,466,183 1,530 85 2021 550 Lincoln County Schools 16,376,963 1,511 86 2021 150 Camden County Schools 2,649,999 1,501 87 2021 790 Rockingham County Schools 15,834,840 1,484 88 2021 970 Wilkes County Schools 12,369,284 1,480 89 2021 990 Yadkin County Schools 7,159,859 1,462 90 2021 570 Madison County Schools 3,053,120 1,453 91 2021 140 Caldwell County Schools 14,859,155 1,410 92 2021 220 Clay County Schools 1,609,799 1,394 93 2021 290 Davidson County Schools 24,246,170 1,378 94 2021 120 Burke County Schools 15,156,050 1,344 95 2021 840 Stanly County Schools 10,751,530 1,328 96 2021 610 Mitchell County Schools 2,257,491 1,323 97 8 2021 910 Vance County Schools 6,415,752 1,303 98 2021 860 Surry County Schools 9,121,490 1,298 99 2021 430 Harnett County Schools 24,271,534 1,272 100 2021 330 Edgecombe County Schools 6,637,395 1,250 101 2021 820 Sampson County Schools 9,358,327 1,248 102 2021 770 Richmond County Schools 7,873,240 1,225 103 2021 960 Wayne County Schools 20,515,695 1,215 104 2021 540 Lenoir County Schools 9,900,000 1,215 105 2021 170 Caswell County Schools 2,655,000 1,210 106 2021 240 Columbus County Schools 6,062,353 1,201 107 2021 890 Tyrrell County Schools 630,055 1,193 108 2021 241 Whiteville City Schools 2,272,697 1,126 109 2021 380 Graham County Schools 1,127,426 1,054 110 2021 310 Duplin County Schools 8,968,900 962 111 2021 400 Greene County Schools 2,585,000 957 112 2021 470 Hoke County Schools 5,700,000 691 113 2021 780 Robeson County Schools 13,305,000 656 114 20211 870 1 Swain County Schools 999,2161 5581 115 2021 1 295 1 Innovative School District 99,8301 4871 116 1 9 Per Pupil Appropriation (General Fund) Historical Comparison Fiscal Years 1983-84 through 2021-22 reflect Commissioner approved per pupil appropriations. Fiscal Year 2022-23 reflects the Manager's Recommended per pupil. Fiscal Year Per Pupil Annual $ Annual % Appropriation Increase Increase 83-84 $603 84-85 $642 $39 6.47% 85-86 $773 $131 20.40% 86-87 $871 $98 12.68% 87-88 $870 -$1 -0.11% 88-89 $967 $97 11.15% 89-90 $1,057 $90 9.31% 90-91 $1,175 $118 11.16% 91-92 $1,310 $135 11.49% 92-93 $1,310 $0 0.00% 93-94 $1,363 $53 4.05% 94-95 $1,451 $88 6.46% 95-96 $1,571 $120 8.27% 96-97 $1,782 $211 13.43% 97-98 $1,889 $107 6.00% 98-99 $2,040 $151 7.99% 99-00 $2,256 $216 10.59% 00-01 $2,395 $139 6.16% 01-02 $2,437 $42 1.75% 02-03 $2,516 $79 3.24% 03-04 $2,566 $50 1.99% 04-05 $2,623 $57 2.22% 05-06 $2,796 $173 6.60% 06-07 $2,957 $161 5.76% 07-08 $3,069 $112 3.79% 08-09 $3,200 $131 4.27% 09-10 $3,096 -$104 -3.25% 10-11 $3,096 $0 0.00% 11-12 $3,102 $6 0.19% 12-13 $3,167 $65 2.10% 13-14 $3,269 $102 3.22% 14-15 $3,571 $302 9.24% 15-16 $3,698 $127 3.54% 16-17 $3,868 $171 4.61% 17-18 $3,991 $123 3.18% 18-19 $4,165 $174 4.36% 19-20 $4,352 $187 4.50% 20-21 $4,367 $15 0.34% 21-22 $4,367 $0 0.00% 22-23* $4,808 $441 10.10% *Manager's Recommended Budget 10 Historical Tax Rate (Per$100 Assessed Valuation) Chapel Hill-Carrboro District Tax Change (in cents CHCCS Special District per$100 assessed valuation 1989-90 17.75 1990-91 17.75 0.00 1991-92 17.35 0.40 1992-93 17.35 0.00 1993-94* 15.75 1.60 1994-95 15.40 0.35 1995-96 15.40 0.00 1996-97 19.00 3.60 1997-98* 17.90 1.10 1998-99 19.20 1.30 1999-00 22.00 2.80 2000-01 22.00 0.00 2001-02* 20.20 1.80 2002-03 19.20 1.00 2003-04 20.00 0.80 2004-05 20.00 0.00 2005-06* 18.34 1.66 2006-07 18.85 0.51 2007-08 20.35 1.50 2008-09 23.00 2.65 2009-10* 18.84 4.16 2010-11 18.84 0.00 2011-12 18.84 0.00 2012-13 18.84 0.00 2013-14 20.84 2.00 2014-15 20.84 0.00 2015-16 20.84 0.00 2016-17 20.84 0.00 2017-18* 20.18 0.66 2018-19 20.18 0.00 2019-20 20.18 0.00 2020-21 20.18 0.00 2021-22* 18.30 1.88 2022-23 18.30 0.00 *Denotes Revaluation Year **Fiscal Years 1989-90 through 2021-22 reflect approved tax rates; Fiscal Year 2022-23 reflects Manager Recommended tax rate. 11 BOCC Approved 6/19/2018 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. 115C-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 undesignated 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 undesignated 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 5.5 percent of budgeted expenditures. 12 BOCC Approved 6/19/2018 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 — Undesignated 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 undesignated fund balance to address unforeseen events or opportunities. In these instances, it is the responsibility of 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. 6. Policy Review - The School/County Collaboration Work Group shall review this policy every 18 months to determine if changes to the policy are necessary. 13 School Projects Summary- RECOMMEND Fiscal Years 2022-32 Current Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Ten Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Year Appropriations 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 Total Bond Referendum 45,000,000 45,000,000 40,000,000 130,000,000 Chapel Hill-Carrboro City Schools Bond Referendum 1,922,000 Chapel Hill-Carrboro City Schools Article 46 Sales Tax Proceeds 1,219,446 1,268,223 1,318,952 1,371,710 1,426,578 1,483,641 1,542,987 1,604,706 1,668,894 1,735,650 1,805,076 15,226,417 Debt Financing-School Improvements 2,519,561 2,569,952 2,621,351 2,673,778 2,727,254 2,781,799 2,837,435 2,894,184 2,952,068 3,011,109 3,071,331 28,140,261 Lottery Proceeds 846,461 846,461 846,461 846,461 846,461 846,461 846,461 846,461 846,461 846,461 846,461 8,464,610 Recurring Capital Items 1,810,800 1,810,800 1,810,800 1,810,800 1,810,800 1,810,800 1,810,800 1,810,800 1,810,800 1,810,800 1,810,800 18,108,000 Supplemental Deferred Maintenance Program 11,810,800 22,494,200 34,305,000 Chapel Hill-Carrboro City Schools Total 8,318,268 18,306,236 29,091,764 6,702,749 6,811,093 6,922,701 7,037,683 7,156,151 7,278,223 7,404,020 7,533,668 104,244,288 Orange County Schools Bond Referendum 11,386,000 Orange County Schools Article 46 Sales Tax Proceeds 800,842 832,876 866,191 900,839 936,872 974,348 1,013,322 1,053,855 1,096,009 1,139,849 1,185,443 9,999,604 Debt Financing-School Improvements 1,654,661 1,687,754 1,721,509 1,755,940 1,791,059 1,826,879 1,863,417 1,900,685 1,938,699 1,977,473 2,017,022 18,480,437 Lottery Proceeds 555,893 555,893 555,893 555,893 555,893 555,893 555,893 555,893 555,893 555,893 555,893 5,558,930 Recurring Capital Items 1,189,200 1,189,200 1,189,200 1,189,200 1,189,200 1,189,200 1,189,200 1,189,200 1,189,200 1,189,200 1,189,200 11,892,000 Supplemental Deferred Maintenance Program 3,600,000 5,442,200 10,702,800 16,145,000 Orange County Schools Total 19,186,596 9,707,923 15,035,593 4,401,872 4,473,024 4,546,320 4,621,832 4,699,633 4,779,801 4,862,415 4,947,558 62,075,971 Durham Tech Community College 500,000 10,500,000 1 11,000,000 Appropriations Total 27,504,864 28,514,159 54,627,357 11,104,621 11,284,117 56,469,021 11,659,515 56,855,784 12,058,024 52,266,435 12,481,226 1 307,320,259 Revenues/Funding Sources Article 46 Sales Tax Proceeds 2,020,288 2,101,099 2,185,143 2,272,549 2,363,450 2,457,989 2,556,309 2,658,561 2,764,903 2,875,499 2,990,519 25,226,021 Debt Financing-Bond Proceeds 13,308,000 45,000,000 45,000,000 40,000,000 130,000,000 Debt Financing-Durham Tech 500,000 10,500,000 11,000,000 Debt Financing-School Improvements 10,774,222 23,310,706 39,039,860 5,629,718 5,418,313 5,508,678 5,600,852 5,694,869 5,790,767 5,888,582 5,988,353 107,870,698 Lottery Proceeds 1,402,354 1,402,354 1,402,354 1,402,354 1,402,354 1,402,354 1,402,354 1,402,354 1,402,354 1,402,354 1,402,354 14,023,540 Transfer from General Fund 1,200,000 1,500,000 1,800,000 2,100,000 2,100,000 2,100,000 2,100,000 2,100,000 2,100,000 2,100,000 19,200,000 Revenues/Funding Sources Total 27,504,864 28,514,159 54,627,357 11,104,621 11,284,117 56,469,021 11,659,515 56,855,784 12,058,024 52,266,435 12,481,226 1307,320,259 Revised for Updated ADM% 14 School Projects Summary- RECOMMEND Fiscal Years 2022-32 Current Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Ten Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Year Appropriations 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 Total Bond Referendum 45,000,000 45,000,000 40,000,000 130,000,000 Chapel Hill-Carrboro City Schools Bond Referendum 1,922,000 Chapel Hill-Carrboro City Schools Article 46 Sales Tax Proceeds 1,219,446 1,235,027 1,284,427 1,335,804 1,389,236 1,444,806 1,502,598 1,562,702 1,625,210 1,690,218 1,757,827 14,827,855 Debt Financing-School Improvements 2,519,561 2,502,680 2,552,733 2,603,788 2,655,864 2,708,981 2,763,161 2,818,424 2,874,793 2,932,288 2,990,934 27,403,646 Lottery Proceeds 846,461 824,304 824,304 824,304 824,304 824,304 824,304 824,304 824,304 824,304 824,304 8,243,040 Recurring Capital Items 1,810,800 1,763,400 1,763,400 1,763,400 1,763,400 1,763,400 1,763,400 1,763,400 1,763,400 1,763,400 1,763,400 17,634,000 Supplemental Deferred Maintenance Program 11,763,400 22,067,600 33,831,000 Chapel Hill-Carrboro City Schools Total 8,318,268 18,088,811 28,492,464 6,527,296 6,632,804 6,741,491 6,853,463 6,968,830 7,087,707 7,210,210 7,336,465 101,939,541 Orange County Schools Bond Referendum 11,386,000 Orange County Schools Article 46 Sales Tax Proceeds 800,842 866,073 900,716 936,745 974,214 1,013,183 1,053,711 1,095,859 1,139,693 1,185,281 1,232,692 10,398,167 Debt Financing-School Improvements 1,654,661 1,755,026 1,790,127 1,825,930 1,862,449 1,899,697 1,937,691 1,976,445 2,015,974 2,056,294 2,097,419 19,217,052 Lottery Proceeds 555,893 578,050 578,050 578,050 578,050 578,050 578,050 578,050 578,050 578,050 578,050 5,780,500 Recurring Capital Items 1,189,200 1,236,600 1,236,600 1,236,600 1,236,600 1,236,600 1,236,600 1,236,600 1,236,600 1,236,600 1,236,600 12,366,000 Supplemental Deferred Maintenance Program 3,600,000 5,489,600 11,129,400 16,619,000 Orange County Schools Total 19,186,596 9,925,349 15,634,893 4,577,325 4,651,313 4,727,530 4,806,052 4,886,954 4,970,317 5,056,225 5,144,761 64,380,719 Durham Tech Community College 500,000 10,500,000 11,000,000 Appropriations Total 27,504,864 28,514,160 54,627,357 11,104,621 11,284,117 56,469,021 11,659,515 56,855,784 12,058,024 52,266,435 12,481,226 307,320,260 Revenues/Funding Sources Article 46 Sales Tax Proceeds 2,020,288 2,101,100 2,185,143 2,272,549 2,363,450 2,457,989 2,556,309 2,658,561 2,764,903 2,875,499 2,990,519 25,226,022 Debt Financing-Bond Proceeds 13,308,000 45,000,000 45,000,000 40,000,000 130,000,000 Debt Financing-Durham Tech 500,000 10,500,000 11,000,000 Debt Financing-School Improvements 10,774,222 23,310,706 39,039,860 5,629,718 5,418,313 5,508,678 5,600,852 5,694,869 5,790,767 5,888,582 5,988,353 107,870,698 Lottery Proceeds 1,402,354 1,402,354 1,402,354 1,402,354 1,402,354 1,402,354 1,402,354 1,402,354 1,402,354 1,402,354 1,402,354 14,023,540 Transfer from General Fund 1,200,000 1,500,000 1,800,000 2,100,000 2,100,000 2,100,000 2,100,000 2,100,000 2,100,000 2,100,000 19,200,000 Revenues/Funding Sources Total 27,504,864 28,514,160 54,627,357 11,104,621 11,284,117 56,469,021 11,659,515 56,855,784 12,058,024 52,266,435 12,481,226 1307,320,260