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HomeMy WebLinkAboutMinutes-05-11-2023-Budget Work Session 1 APPROVED 6120/23 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS BUDGET WORK SESSION May 11, 2023 7:00 p.m. The Orange County Board of Commissioners met for a Budget Work Session on Thursday, May 11, 2023 at 7:00 p.m. at the Whitted Human Services Center in Hillsborough, NC. COUNTY COMMISSIONERS PRESENT: Chair Jamezetta Bedford, Vice-Chair Earl McKee, and Commissioners Amy Fowler, Sally Greene, Jean Hamilton, and Phyllis Portie-Ascott COUNTY COMMISSIONERS ABSENT: Commissioner Anna Richards COUNTY ATTORNEYS PRESENT: John Roberts COUNTY STAFF PRESENT: County Manager Bonnie Hammersley, Deputy County Manager Travis Myren, and Clerk to the Board Laura Jensen. (All other staff members will be identified appropriately below) Chair Bedford called the meeting to order at 7:00 p.m. All commissioners were present except Commissioner Richards. A motion was made by Commissioner Hamilton, seconded by Commissioner Fowler, to delay discussion of Durham Technical Community College until the May 18, 2023 Budget Work Session. VOTE: UNANIMOUS 1. Discussion Regarding Outside Agencies Funding for FY 2023-24, Pg. 198 BACKGROUND: The County Manager presented the FY 2023-24 Recommended Budget (https://www.oranpecountync.pov/budget) on May 2, 2023. Since that time, the Board has conducted one public hearing to receive residents' comments regarding the proposed funding plan. This is the first opportunity for the Board to discuss next year's recommended funding plan related to Outside Agency and Education funding. Outside Agency Funding: The recommended Outside Agency Funding can be found on page 198 of the Manager's Recommended Budget. Six (6) major outside agencies are being funded in departmental budgets to provide better accountability, coordination and client outcomes. This amounts to $937,656 funded outside the outside agency pool of funding. This lowers the outside agency target to 5.6% of General Fund Expenditures, less education. The recommended budget allocates $1,037,016 to the remaining forty-two (42) agencies, or 7% above the target. Additionally, there is $45,000 in outside agency funds outside of the General Fund in the Visitors Bureau Fund. Those agencies will be managed by the Visitors Bureau and the Arts Commission. 2 Bonnie Hammersley, County Manager, made the following presentation: Slide #1 ORANGE COUNTY NORTH CAROLINA F2023-24 COUNTY MANAGED RECOMMENDED BUDGET Outside Agencies May 11, 2023 BOCC Work Session Bonnie Hammersley said the Outside Agencies process begins each fall. She said there is a standard application for funding from Chapel Hill, Carrboro, and Orange County for nonprofits with 501(c)(3) status. She said Melissa Allison in her office leads the coordination of outside agencies and sends applications to related advisory boards for review and scoring. She said the advisory boards' scores are reviewed by the County Manager before she holds individual meetings with each applicant. Bonnie Hammersley said she uses the ranking from advisory boards and also depends on input from the Department Director that works with the organization that applied for funding in order to ultimately make a funding recommendation to the Board. She stated there were a few changes to the Outside Agencies process this year, and she will discuss those later in the presentation. She said the input from advisory boards is important to this process and this year, for the first time, she invited the Board of Social Services to meet with the Outside Agencies they scored along with her. She said that worked very well and she may extend that opportunity to other advisory boards next year. Commissioner Portie-Ascott asked how likely it is for a new nonprofit to be funded. Bonnie Hammersley said a new agency could be funded if they supplement the work of Orange County to the benefit of county residents. To give an example, she said there was a new executive director of the Ronald McDonald House that applied for funding through this process a couple of years ago, but was not recommended to receive funding because, while the charity does great work, they do not provide a service that is a function of county government. She said there is a belief it's hard to get funding through this process but not if the agency is providing a service that is a function of county government that the county is not able to provide, or improves a service the county already provides. 3 Slide #2 2/y 2 RECOMMENDED may { 3-24 OUTSI E AGENCIES i beparunent Approved Agencies Funded .9 56 42 6 T" $ W.,6 In FY202.3�-24, the integral agencies aviwded.5 100K+ Drma}orit}of fiuu ing is aside Agenq finds are moved into departinent b0gets to improve coordination,ac{ouni abiliry and client oul{omes_ Air additiomal$+WOO is refioiniumded far Arl s and Tomism rebted outside Agencies in the Visilors$iuxan Fund, to be administered b}•the Orange Covaty Arts Commission and The Visitors Btuvoti. (Kidzus Hill.sbotoiigh Arts Council,The Arts Center,etc.) ORANGE COUNTY Slide #3 FY2023-24 RECOMMENDED MENDED BUDGET OUTSIDE AGENCIES Department Budget Line Item CommunitsHonieTinst I33tcr-FaitllCOLI-161— Housing S23l -U g'��r#,453 *16+,�}53 sllelkei Intei-Fmt1iCouue —Food social ('yj, Stu vices V,4jyN0 -�, 0 7J,C 0 Oiangc Coogicga bons In -c-arial 92,11 10 ,91 a 10u,915 Mission(OCIM) sefvioes Senior Caie of O,:avge socifll Counts 5cii{e5 000 550,04Q 550,000 crimp.1ss C'enkel CTRD SiF)4125i s10417c r SiO4,-FXq DasputesettleirentCeOtei CTRD S90,000 597,2U0 S97,200 ORANGE COUNTY l,'k)K3'3 L t-AwMINA 4 Bonnie Hammersley said the agencies listed on slide #3 would be moved into department budgets because they receive over $100,000 in funding, or they receive the majority of their funds through Outside Agency funds. Rather than requesting funding annually through the Outside Agencies grant process, she said funding for these identified agencies will be requested by the Department Director, in coordination with the agency's Executive Director, as part of the Department's annual budget. Bonnie Hammersley noted that costs have increased for the agencies due to inflation, especially the agencies that provide food. She noted that Senior Care of Orange County is one of the agencies that is recommended to move into a Department budget because it receives the majority of its funding from the county. Bonnie Hammersley said the increase for just these agencies in the recommended budget is $112,523 over what they were awarded last year. She said the total increase for all Outside Agencies in the recommended budget is $119,981. She said there have not been significant changes to the needs of the rest of the Outside Agencies. She also added that the third column from the left should read TY2022-23 Approved". Slide #4 F 023- 4 RECOMMENDED BUDGET OUTSIDE AGENCIES Fun-ding Formula 100—90 1000,E 89—M 750'6 79-70 X% G9 and below T--) ()RANGE (-QUNTY �iLI TI I d'APO1.1NA Bonnie Hammersley the table in slide #4 demonstrates the funding percentage based on the advisory boards' scoring. She said once agencies are awarded funds, they have to provide quarterly performance measures to the originating department to ensure they are doing what has been asked. 5 Slide #5 FY2023- 4 RECOMMENDED BUDGET OUTSIDE AGENCIES Aging Service ORANGE COUNTY WORT]f CARC}LIKA Bonnie Hammersley said this agency is an adult daycare like Senior Care of Orange County, but does not have medical care. Slide #6 F 0 3- 4 RECOMMENDED MENDED BUDGET OUTSIDE AGENCIES BehaNioral Health E1 Fimno S48,90G 573,848 $73,848 WI) Fieedo_nHousc SY1,118 5xX78 5-�10,178 90 KidSCepc 372,O00 590,000 545,OM 70 OF-Fjiteipiiscs 557,344 565,000 565,000 9P, Vo=re=Ton:CY12 $10,O0(i 530,000 515,000 72 ORANGE COUNT) . ,I . Bonnie Hammersley said these outside agencies have all received funding before and continue to work with Orange County. 6 Commissioner Hamilton asked Bonnie Hammersley to describe Voices Together. Bonnie Hammersley said they use music and song to help students in Orange County Schools with severe intellectual and development disabilities (IDD). Vice-Chair McKee encouraged commissioners to attend a performance if they can. Bonnie Hammersley said one of the reasons the advisory board that scored this agency's application did not recommend more funding was because they are only serving one school system. She said the agency has asked for recommendations to start serving Chapel Hill-Carrboro City Schools' students as well. Chair Bedford asked which departments supervise these outside agencies. Bonnie Hammersley said these will be supervised by the Health Department but they also have strong relationships with Social Services. Slide #7 fJ� fJ� FI�J.i0J 3-24 RECOMMENDED�f BUDGET "T OU IDEAGENCIES CA ITIlUni ty SCrvi S Historic Hiisbolough commissio,� 12,{]QO 12,000 1 ,UQ4 9 Big Brothers Big Sisters S-3100 S 14,58- 314,68- 94 Bri*II Sports 522,500 Sm o)o $15,000 78 E3 Camp S1,12. 52,000 SI.500 8-? I-Estoucal Fmuwlation 518,?moo S3 qx)o sm,000 91 CILawcotuttF PaLtrierslup 60L'irnulg Sd.OflL) S16, 00 S3,000 ?-3 CU&En 4 ORANGE COUNTY T]OFM[CA ROLINA Bonnie Hammersley said the Department of Environment, Agriculture, Parks, and Recreation (DEAPR) will administer the contracts with the agencies on the slide above and the slide below, and the advisory boards supported by DEAPR staff reviewed these applications, with the exception of E3 Camp, which was reviewed by the Library. Commissioner Portie-Ascott asked what E3 Camp is. Bonnie Hammersley said it is a technology camp for students of color. She said this is the second year they have applied and received funding. Slide #8 FY2023-24 RECOMMENDED BUDGET OUTSIDE AGENCIES Cnrtiinunity Services PiedmontWi1f1ife 54,750 S1Z000 $12,000 93 Triangle SiLeTiurks S317M 55,000 55,000 k)2 Swuu for.Cl,ailic $13,2131 S64641 73 ORANGE COUNTY NOR73[CAl OLINA Bonnie Hammersley said Swim for Charlie didn't apply last year, but did apply the year before and the year before that. She noted the Board heard from two people during the Budget Public Hearing on May 9, 2023 about this organization. Slide #9 FY2023-24 RECOMMENDED MENDED BUDGET OUTSIDE AGENCIES Fo-od/Nutriti-onal Services cliapcl HM,'Car.ibnna lfea3s i0,4i10 7 ,OG0 575,000 100 On Wheels PORCH-Chapel Hill Sl Sl CpiYb010 l?,3{ll} 6,L��0 S16,0}l} FORCH—Hd3sboiough" 58.3X0 16,020 73 Table S16.000 SMNO S18,000 N Tr.ansplan6ng Tiaditions S5.000 SIZWO SI ZWO 95 ORANGE COUNTY NOVY3[CA]kGUNA 8 Bonnie Hammersley said the increases requested in this category were funded because many of the increased costs were due to inflation. She said they work closely with Social Services to coordinate food. She said PORCH-Hillsborough didn't apply last year, but did apply this year. She said their application ranked low because their request included funding for a local food provider and the agency had handpicked a local provider but the county would require a competitive bid process to identify an entity to fill this role. She said PORCH will work with Social Services staff to strategize how to receive more funding for this and other initiatives. Slide #10 FY2023-24 RECOMMENDED BUDGET OUTSIDE AGENCIES Health 0131]gcCoWAYRape SGIJDOD dr1,000 ^� CDSi3 ORANGE COUNTY WFM[C"AROLINA Slide #11 FY2023-24 RECOMMENDED BUDGET OUTSIDE AGENCIES Housing Centel tol COxrwiluiitS' 37,560 55V,4+ Self Help iV Einpoweimeut Fluid EmPOWERimnt jm ow mc0 w0 ffiG0,000 93 Halc-}i ;x Hlunan3ty 3Wo0[1 S93p00 59s,000 9) PccWte Honws 39,450 S14,WO $I%-wo U A•'i r'•1' > '1':r?>-�7C'i 515,0[kl Sl .fglr cl I.."'�' 8[1 ;'r, 9 Bonnie Hammersley said there is great need in this category. She said those who received less than requested were due to the ranking, not because there isn't a need. She said the scoresheets are available upon request. Commissioner Fowler asked what the Center for Community Self Help and Rebuilding Together do. Bonnie Hammersley said the Center for Community Self Help works in the Northside neighborhood and works on financial planning. She said they also provide property tax assistance to homeowners. She said Rebuilding Together helps with rehabilitating houses. She said they are in a consortium with Habitat and rehabilitation staff with the county and Chapel Hill. She said these agencies were all brought together to have one entry point for people applying for their houses to be rehabilitated. She said that Habitat also receives money from the county for rehabilitating homes. Commissioner Fowler asked what the Community Empowerment Fund does. Bonnie Hammersley said this agency's goal is to help to people experiencing homelessness, and others, reach their employment, housing, and finance goals. She said this agency housed the Housing Coordinator position for a while under a contract with the county before it became an in-house position. Slide #12 F 0 3-24 RECOMMENDED MENDED B U DG ET 0 UTS I DE AGENCIE Offioe of Equity & Inclusion El Cenuo Hispano S41,800 $43,980 534,483 81 C.HCCu Foundadon 50 5.51000 '52,500 77 Rerjgee Comuneanity Iiaiv3e:slupi0,000 3?,500 89 Marian Cheek Jackson S10,000 S22. OD S22.000 % C .Ll[ei 1U•I ;--..-r Support Center UW0 $500 35 000 91 OKANGE COUNTY T40F !I CAROLINA Bonnie Hammersley said the CHCCS Foundation is only requesting money for the Blue Ribbon Mentor Advocates program from Orange County, and they are requesting money from Chapel Hill and Carrboro for other needs. She said they did not request funding from the county last year but have in the past and have received awards. 10 Slide #13 F 202.3-24 RECOMMENDED BUDGET OUTSIDE AGENCIES juvenile/Adult justice Services Booinetang Y Outll $10,00o 520,000 $20.W0 W CYsfoid Hoki�e 5D 55P00 5:.1 - W Re-entcv Howse Phu 51 WO) t2.5.000 2.5.001 90 V-01 ACCUS foi YOUt i S l 000 Sly).-00 S:, . t]-E ORANGE COUNTY MOR71[CARDLEWL Bonnie Hammersley said Oxford House was not awarded funding this year, but their request this year included a program that the county asked them to do regarding re-entry. She said sometimes agencies are doing great work, but it's not something the county should be involved in. Slide #14 F 2023-24 RECOMMENDED BUDGET 01YFSIDE AGENCIES Social services Citi;j Nova $18,75+0 518,7M $I8,750 9{, F30 1V RraiLmw Ila.Ltness S3,000 S 10,000 S 10,UO0 93 OC Disabiliir Awareness Co�ulcil $8513 $2�,000 S14,0X 77 OYaJigf Cok]nn'I.LjefRCV Cotv7al Slb,L45 S25,000 8, 88 I" ., r :', $14,252 $14,687 $14,687 98 r 4 ORANGE COUNTY NOWTI[CAPZMNA 11 Bonnie Hammersley said Club Nova gets Maintenance of Effort (MOE) funding. The county's award would cover non-reimbursable expenses the agency cannot get from Alliance Health. Slide #15 FY2023-24 RECOMMENDED BUDGET OUTSIDE AGENCIES Unfunded Agencies F:•lurs an the s. 112,563 $19,QU0 30 49 'Foe Azc of the 5 ,62 55,b25 S0 9 'Fhmigle The Ast nie upr 55.Mo 5510Pd $Q .51 InsbMte tlnldcale Services SO SJ3,L)oo 3S Hope Renovation S28,500 550,000 130 69 DiangcCoiu�t 536A6o S40900 SQ 69 Li3'7LSQ�k PEe ORANGE COUNTY NAOF ]I CAROLINA Bonnie Hammersley said the agencies on the slide above were not funded this year due to low application scores. Slide #16 Questions _Aa�_ ORANGE COUNTY N7OR71 I CAROLINA Commissioner Hamilton asked what percentage of the county's portion (minus education) of the recommended budget is allocated to Outside Agencies. Bonnie Hammersley said staff will provide that information. 12 Kirk Vaughn, Budget Director, stated it is around 1.34%. Chair Bedford asked Bonnie Hammersley to explain the budget amendment process. Bonnie Hammersley said any commissioner with an amendment should send an email to her, Travis Myren, and Kirk Vaughn. She said staff will put the amendments on the website as they come in so the public can view them. She said the Board will vote on the amendments on June 8. She asked the Board to send any amendments by Friday, May 26, 2023 in order for staff to post them in time for the Budget Public Hearing on June 1. Chair Bedford said the Board may need to consider changing the percentage target for Outside Agencies. Bonnie Hammersley said that could go through as a budget amendment. She said there was $1 million at the time Outside Agencies funding started, and at the time, $1 million was 1.2% of the budget, minus education, but the budget has since grown. Chair Bedford reminded the Board that there was a new law last year that if any commissioners sat on the boards of an outside agency that was recommended to receive funding, they could not vote on the county's budget. She asked if all commissioners are able to submit budget amendments. Bonnie Hammersley said yes, because none of the commissioners serve on the boards for any of these agencies. 2. FY 2023-24 Operating and CIP Budget Discussions, regarding: • Chapel Hill-Carrboro City Schools, Pg. Pgs. 134-137 of the Operating Budget and Pgs. 116-133 of the Capital Investment Plan • Orange County Schools, Pgs. 134-137 of the Operating Budget and Pgs. 134-143 of the Capital Investment Plan BACKGROUND: The County Manager presented the FY 2023-24 Recommended Budget (https://www.oranpecountync.gov/budget) on May 2, 2023. Since that time, the Board has conducted one public hearing to receive residents' comments regarding the proposed funding plan. This is the first opportunity for the Board to discuss next year's recommended funding plan related to Outside Agency and Education funding. Education Operating Funding: The Manager's Recommended Education Funding can be found starting on Page 134 of the Recommended Operating Budget. The budget provides $130,852,731 to both School Districts, an increase of $10,510,111 from FY 2022-23 funding. Per-pupil Current Expense funding is recommended to increase from $4,808 to $5,346. This will provide Chapel Hill-Carrboro City Schools (CHCCS) $60,158,538 and Orange County Schools (OCS) $42,784,038. In addition, the Manager's Recommended Budget includes a 1.5 cent increase to the CHCCS District Tax, which will provide an additional $2,095,301 to support the district's continuation request. Education Capital Funding: The Manager's Recommended Capital Investment Plan details the School Funding Summary on Page 114. There are $303.6 million of school capital projects in the 10 year capital window. The largest investment is a planned $130 million Bond Referendum, with a planned referendum date of November 2024. The year one funding will provide $11,492,243 to the school districts in regular allocations. After being adjusted to the FY 2023-24 Recommended Average Daily Membership (ADM) split, CHCCS will receive $6,716,067 and OCS will receive $4,776,176. In addition, CHCCS will draw down $4 million of its Supplemental Deferred Maintenance. 13 Travis Myren, Deputy County Manager, made the following presentation: Slide #1 ORANGE COUNTY NC)R-FH CARC)LII-4A Budget Work Session #1 Outside Agencies Education Board of Commissioners Work Session May l 1 , 2023 Slide #2 Education Work Session Agenda • Terminology Total Budgeted Students and Enrollment Trends • Per Pupil Amount Impaclot the Special District Tax • Funding Recommendations • Undesignated Fund Balance Policy and Amounts ORANGE COUNTY 2 NORT11€:RR[7LINA 14 Slide #3 Terminology + Average Daily Membership(ADM) — Dased oai Department of Public Irr5iructioW%March ABDtimnl Students llvlrkg In the Distrlcl attending a traditlonat public schom + Outof Distriict tudents — Students loom outside of the elstncl attending a tra6Ilional Orange County public sthoal — Counly is not responsible for funding Out of Disirlat Students + Charter School Students — Students Ilviny In one of the Orange County school dislrints but attending a charter school Including charter schools In other covntles — Schad districts mull transmit the Iocal per pupa amount to the charter schools serving Orange Counly students • Total Budgeted Students — Number of students for Which Orange County gov*mi nenl pravldea hnding an a per puVR balls ORANGE CJNTY 3 Nc>RTr r C AC3LINA Slide #4 Total Budgeted Students FY2023-24 Average Daily Menit�ership 11.393 7.122 Allotment from DPI Out(>f District Deduction (350) (118) Charter Students 210 999 Total Budgeted Students 11,253 8,003 % of Total Budgeted Students 58a.44% 41-56% I • The numb erof total budgeted students dictates the amount of current expanse funding each District 111 recelves. The County must provide the same amount per pupil to each District. + The percentage of total budgeted students influences hew capital and recurring capital funding has historically been Wded between the Distriets. ORANGE COUNTY d NC}RTtI CAR.10-LINA 15 Chair Bedford said she thought that 5 or 6 years ago Orange County was the only county funding charter schools, but now some other counties are doing the same. Travis Myren said yes, and he was able to find that Wake County changed its policy in 2018. Chair Bedford said it's not required for the county to provide the per pupil allocation for charter school students, but it's important to do because they are also Orange County students. Travis Myren said it is also important because otherwise the school system's current expense budget would have to be used to fund the charter students, and then the per pupil allocation for traditional public school students would drop significantly. Vice-Chair McKee asked if counties are required to fund charter students. Chair Bedford said no, but the school districts are required to pass along the per pupil allocation for each charter school student. She said years ago, Orange County recognized that without including the per pupil funding for charter students in the funding for each school district, the per pupil amount for traditional public school students would drop. Vice-Chair McKee asked in a scenario where a school system has 1000 students and 100 went to charter schools, how many of those students does a county have to fund. Chair Bedford and Travis Myren said 900 students. Vice-Chair McKee said he doesn't want the implication to be that some other counties are not funding charter students, when the funding is still from the county's allocation of funding to the school system. Travis Myren reiterated that the amount that Orange County provides to school districts as part of their current expense budgets includes the amount the school districts then have to provide to the charter schools. Commissioner Fowler said she read it is state law that the two districts have to be funded the way they are for operating expenses, but not capital expenses. She asked if it makes sense to split the capital funding based on the percentage of budgeted students when the charter school students included in this number are not in the traditional public school buildings and the school districts do not have to pass capital money onto charter schools. Travis Myren said the Board has chosen to do it that way in the past, but it doesn't have to be done that way. Chair Bedford said initially there weren't very many charter students and the argument was that even if 25 students left, buildings still have a lot of fixed costs, so it made sense to do it this way. Commissioner Hamilton said part of the work of the Capital Needs Work Group may be to revisit this concept. She said there are other criteria that can be used to determine the best use of capital dollars given the great capital needs in both school districts. Chair Bedford said it would be politically unfavorable to give all the capital money to one of the school districts and it would also be hard to get people to vote for a bond if they know their schools are getting nothing. She said she does agree that the Board should look at what the consultant recommends and having a plan where the funding may ultimately balance out over time would be good. Commissioner Hamilton said part of the Board's job would be to educate the public about the plan and how the funding decisions are being made. Commissioner Fowler said she thinks this should be discussed at some point, and it's great for the Capital Needs Work Group to make a recommendation. Vice-Chair McKee said at some point, state law may change and the county may be required to fund capital expenses for charter schools. 16 Slide #5 Charter Students School Districts are required to transmit the per pupli expenditure to each student living in the Ddstrlct but attending a Charter School As part or the Total Budgeted Students calculation,the County provides funds to the District to pay for those Charter Students through the Current Expense Budget If a student transfers from a Traditional School to a Charter School,the amount Is prorated for the time the student spends in each location Orange County Is not the only County that Includes Charter students In the per pupil calculation — Wake, Durham, Mecklenburg (and perhaps more)counties include Cho rler students indelermining the per pupil amount and providing funding through the Current Expense budgel 4. ORANGE COUNTY i WOR71 r CARC}I INA Commissioner Fowler asked what happens if the opposite happens: a charter school student enters a traditional school mid-year. Travis Myren said the school district would then stop paying the charter school for that student, as funding is sent quarterly. Chair Bedford said there is a possibility that timing of the transfer could be an issue and the charter school would not have to send back the prorated amount. Vice-Chair McKee said if ADM numbers on the 451h day doesn't meet what's projected, the county doesn't ask for the money back, but the state does. Slide #6 Student Enrollment Over Time Chapel Hill-Carr6ora City Schools Average Daily Membership 18 AU1 t7+F7� 12A-06 17 iLq 12.256 �s2a3 122 12 16 12.01J 12 aPt mess 11-71A t1,x 11 03 — 11 AW 11M 11� 10-00 1AAOA 2003-08 2008-09 200B.10 2010-11 2011-12 2012-13 2d18-14 2OU-15 2015-16 2D11-17 2017-16 201B.lB 201ma 2020-21 2021-22 2022-21 2929-21 Loss or-F3 stucrenworrv2o2s-2a _ ORANGE COUNTY e rrc>RTr r CIA R{>LINA 17 Travis Myren said the decrease in the number of students didn't actually decrease that much between FY21-22 and FY22-23. He said during there was a hold harmless policy in place so that school districts weren't penalized for the number of students lost during the pandemic. He said the losses occurred over two or three years, but only show in one year on the graph because of the moratorium. Slide #7 tudent Enrollment Over Time Chapel Hill-CarrboreCity Schools Out of District and Funded CharterStudents asa MD EGG ILL 2tL 3i3 35[ 39 Zip In LR L� L® L65 Lb 30 i5G J17 Liz iGG 1 T L T 1 F 1 F k T 9 ]0@� ]ECaEp ]EEafO ]Ed1]L YM1i.LI ]OLI.I] ]01].W ]OL4l[ ]Oli.li ]OIFU ]OU.0 nit.lt ]OLE,Y Inereese of727 Dut of District 8tucents for PY2023.24 Incremn of 5 CherterStudeLts ORANGE COUNTY + C'bmfwrstwdemr7Op1 Vi.Mof194h**w?$ewo*fs N{}RT[[CHROLINA Slide #8 Student Enrollment Over Time Orange County Schools Average Daily Membership F E10G 2b� x EGG T}0 hl-�. 7;di J�2G x.9G 7aGk x.LW x i7i 7399 J.19Y �,eo SAM x.aoG 7nEa 7nm x.o-w �.eaa geLw aioG SPA SRC S@�R S]R]L 3PL1.12 3P12.1f 3PI].W S]�L Sl•-]6 S]FIr mlT.lt EPIFIf mVS EODi] SE42< 3iE3J SELJ Lass of 64 studemsiar FY202$-24 ORANGE COUNTY 8 NC)RTf f CAROL1NA 18 Slide #9 Student Enrollment Over Time Orange COuntw S&6619 Out of District and Funded Charter Students bap �a 45, 685 939 NS 7M Plp 3a4 254 254 251 154 254 251 25t 154 ]OD B9 8B 85 69 69 0 85 u'' 0 !d3 97 LLD Lp8 iL0 3Y. da Sx 3x-0o MM41 ]EEO-M ]611lL MU nUU ZZLA 33141 30LI.0 i r.7 ]Ed7,i0 3m4u Y.�-35 Z3&U 3LUZ XU U Wtl M in crease of 48 C narter students Ci+a�frr.5fe�d�nfsR�pr,rs42,#S6of8udg�f#o'Sfa+o'�+fs `��. ORANGE COUNTY In crease ofS Out ofN%trietstudenK for FY2D23,,M Nc?RT[[C4ROL1NA Commissioner Greene asked what percentage the 999 charter students make up of the total student population for Orange County Schools. Travis Myren said 12.5%. Slide #10 Student Enrollment Over Time Total Budgeted Students by MsWi:t 13 aG3 -- 12115 12.242 02]A 12235 12160 02.38J �12274 12,236 12.351 12 JIM 11 A20 11.993 11,394 71 442 71 253 11 a03 is a63 BA00 7.Bf5 x pi lam 3.072 Bali 8,134 B.16a 8.11U BAM 6,633 eaapPAN 7,357 71437 x ue J.iT3 x aap 8 Uao 5aff IDW-Ga 2aa9-p5 240.10 20la-11 2011-12 2012-13 2013.14 21314-16 2015.16 21316-17 2017-18 2018-19 MlMa 2a211.21 M2M2 2a22-23 2IM-24 CHCCa oudgeWdStudentDecreaseor189 Studsnls 9d G$ t#d#h1dlr7#�0#,1C#�1f py#G#Cr#OGFSh pr7r S$,7$96 to oCSBudgete�su3denPDecreaaeat2USludenis ORANGE COUNTY 16 Buogeredstuden,.Dercerragerncreases*am 41.22%!o4f.55% NrC>RTr r C JAMDUNA 19 Slide #11 Budgeted versus Actual Student Enrollment am"M Amal 10ammi Budgal wr.Am.Y [.oa olrrg w g 3 I 11.166 11-371 95 S OUR oral•FhW Aram*--� 021-22 i2a2 3 11120 1028 Sj492'' G20.21 12 312 11 64S 66T �,913 T d19,2d 123M 1227fl 85 53591 p1&79 12474 122% 173 57413 p17-16 12231 1;.1A D G 17 12 a17 12 113 -16 133?1 3� BE1yd amuel OlRerexe Buduetl kwa Carl Blffa e e 7.112 7AW 9i 1 W 021-22 72B9 70T3 226 59h9 W"i IAB1 7-W 37a 51.6932 01B,2g 7JN YAM J0 11105 7 El,19 734s Ux 69 L7873 p17-19 T S44 7 315 223 3 :11 11&1J 7AF1 YAM 13A Sb357 tdt6:Awm dis n i-om]IAM1LI rancal-wd.tu'witii3+CHa'LiildhfM1h�lSdh'L3.]nd-IM1S1fA3.klud Ml3LtdufG M1]- 4 dalaASKi Taa.d3.F,.mnlltsrcha.snd.manl6axha.l�3r.d.lyJas.sim.. b ORANGE COU 11 N{}RT[[{L4 ROLINA Travis Myren said the budgeted amount has almost always been higher than the actual enrollment. Slide #12 Per Pupil Allocation Per Pupil Allocation Taal Current Expense Budget $102,942,576 Total Countywide Budgeted Students 19,256 Per Pupil Amount $5,346 Orange County funds each budgeted student In the County by the same amount per pupil Disbict CHCCB 11,253 $5,346 $60,168,538 OCS 8,003 $5,346 442,784,038 ORANGE COUNTY 12 N{}RT[[CARS?LIMA 20 Slide #13 Per Pupil Allocation Over Time County Per Pupil Funding Amount H Istary+ ss,!ae SiA00 g0.95B ,Sd99Y $cec s+am S+Pm i3Pm . �p5z Soma �� f8Afi6 80.102 i8.iG7 $�� QAOD RAW Change in Per Pupil A%cation saon,oa �aaco- i50?AG i W6Ap geoxm i306Ap iS06Ap sam SYB73S i106Ap $nm ftn :r 4I 'oIr kp9A0p Slide #14 Impact of the S pe iail District Tax Speoiall District Tax only levied on property in the Chapel Hill Carrboro City Schools District - A penny is valued at$1.4 millim w. 52.2 milion rmntywide FY2 02 3-24 Budget Recommend s a 1.5 cent inc rease from 18.30 cents to 19_80 cents per $100 of valuation Tax rate increase yields$2,09 million to apply to continuation budget needs • Total Special DistricITax at the new tax rate generates$ 7.7 million to support District expenditures ORANGE COUNTY NORYI1 {_ARC}LIMA Travis Myren said for a home valued at $400,000, the recommended special district tax increase would result in a $60 per year increase to the homeowner's tax bill. 21 Slide #15 Impact of the Special District Tax Chapel Hill Carrbaro City Schools District Tax Rate History am nao- vm 3!r• `4��O.N`4�ID.Y]0.l3]0.l3 dYil]0.1a i4Y 3i.T71T.71 3 ]I f l¢iF i135 NMLT.!! "'M MA 33f am iam 5 DO — — D U} . E. ORANGE COUNTY • NC}RT[I CAROLINA Slide #16 Impact of the Special District Talk CHU$Per Pupi I H istary with District Tax 59M sapm �x,ni 57 Ap s7pm paaTa �3'fi SfiAGp }e7® Skoo SfiA65 55iC9d SIM 54AS454.7T7U �+�Tm a�trt�roa w etyma 54JDM i+Pm SkAGp — S:AGp RZWY-W WXK6-14 RIDL1-L2 RIDLE�Lt Ff2OU-H FYIDLT-LB RIREt 2D L aL-U Fr2M-N ORANGE COUNTY 16 N{}RT[I CAROLINA 22 Slide #17 FY2023-24 Funding Recommendations TotalF School + + Current Expense $102:942,576 LOMIk ing Waperming eApen9es Recurring Capital $2.700,000 327 Man pa}Lgo+S39a0CU debt nnan[edInUP Debt Service $21,322,130 Pnnapel am irtere9t paymers m 9chool dew Health Suet Contracts $3_&BI}_02 arse scmawuwe perFstuty One WWOffioar for Mdde and Figh&mo'5 TOTAL S130,852,731 Calculatoon oF Nrcentage of General Fund Revenues Dedicated to K-12 Education Total School Funding $130.852.731 =48.07% Total General Fund Revenue $272,194,928 4 ORANGE COUNTY 1 NOoRT[[{L4 ROLINA Travis Myren said pay-go is for small capital improvements that are not debt financed. He also said the county has a typical goal of allocating 48.1% of current expense to education funding, and this recommended budget would make education 48.07% of current expense. Slide #18 FY2023-24 Funding Recommendations ommendations Opera LI ng Budget Fu nd I ng as a Percentage of General Fu nd Revenue Fundkig Tamer-46,1% MMI MOM 4&BLM if aax 411D% MAIN OffM "Aft tl Lmi MAON fl11M &MON N, NIP ORANGE COUNTY 113 NORTE I CAROI]NA 23 Slide #19 FY2023-24 Funding Recommendations FY2023-24i2-2-23 Approved Budget Current Expense $9,363,794 Ten pefcw 410%)h7imse RecurringCaphal $ No Change rrgmFVM22-23 f$4$6,223 Two pefcw(2%)decnmsebasedm anuai prgects Debt Service (3485,223) n anted School Health and Safety $149.540 Four percent t4%)Increase TOTAL $9,028,101 7.6%increase Cow FY2022-M I ORANGE COUNTY 19 Nc>wri r{1l ROL1 NA Slide #20 FY2023-24 Capital Funding Recommendations RecommendedTotal School District Funding Article 46 Sales Tax $2,747,029 Propcellonof Bucg;ew:l5lua.nts Dab#Financed School Improvements $4.342,860 Proportion of Budgeled Students Lottery Proceeds $1,402,354 Proportion of BudigetadStudents RecurringCapltal $3,000,000 Prop"ioh0BuogelkI uoents 92.7m0smpaY-gu+5300-Qppdebtfinanced RepreeentedinTransfercramGeneral Fund:Not new resowee Supplemental Deferred Maintenance $4,000,000 Proporti000f Budgeted Students ei NM4 of eppropra+ilon TOTAL $15,492,243 ORANGE COUNTY 20 NORTr r CA W3L]NA Travis Myren said only one district is drawing on the supplemental deferred maintenance funds for next year. Vice-Chair McKee asked why only one school system is drawing down. Travis Myren said Orange County Schools drew down a larger amount last year, so are probably working through that money first. Commissioner Fowler said CHCCS was delayed in the first year the funds were available, so they are taking theirs now. 24 Travis Myren said capital projects are also unique in that there will be peaks and valleys over time in spending. Slide #21 FY20 - 4 Funding Recommendations Operating and Capital Budget Expendiures 51M ma — SLW325A9! SLi9,d58.7 T9 j14F ia.97+ slum Sk2792.9A� 5LMPMKDM Skm2s7am 5MCIM7.SEE W9.M3,F]F SLUL�SLpM SiA6J0[[}100G SE0.G04A[6 .[x I][ririy] wl[re..anl ral. 560.tt6AM S.24MDAm' Fr 7pY'rLa R'261415 Fr 7pY[rk6 Fr 2DWW FY2X7-18 F(2M-i9 RIM-M F[M2 n F['RA-32 P?ID2MO FY202 MA ORANGE COUNTY 21 NOP-711 {_ARC LINA Slide #22 FY202 - 4 Funding Recommendations ommeindation School Budget Requests and Manager's Recommender)Budget IM OMM !fiki57102 IMALUM ...... U4 OOOLM M5.YU7J02 M4 001)M SEAd9F.744 i RML914 SQ 7&038 sLAWDLW MEL570.91p IMMOLM sao OOOLM 510 45U M 5 - °tm=e =IxIX'Calrrr Sulo-ae • P*,=rnmandad Budget funds 90%of CHCCB Gwdrrnm4kv Budget Oil 1941343 �. * Recommsnded&Jdgerl�Jnds 105%atOICS Contnmjatom Bejdgsr +g7,g44,138 ORANGE COUNTY 27 N{}RTI 1 r'h tre wI.1NA Travis Myren said if the Board wants to increase the special district tax rate to close the funding gap in the continuation request for CHCCS, it would require an additional .0086 cents. 25 Vice-Chair McKee said this would also increase the gap in the total funding for each school district. Chair Bedford said it is a bit of a misnomer to call it a continuation budget when fund balance is spent on operating current expenses rather than one-time expenses, but it is also unusual to have such an emergency to recruit and retain staff. Slide #23 FY20 - 4 Funding Recommendations Top Twenty County Per Pupil Appropriations(or School Education Year 2022 by Local Ed utational Agency(LEAI Ch .kH*a�Ctp me r.vsx .n..I CrysnmL e Dwho- CWr{r S7uat ;]W Cwr"C W rev Sdnot 3,�0 ho-'e C W rer S7uo4s a? theihya tW rer S7nah: a,uo -+araka+a C W r4V Sdu[4s +,3[0 Chb iz440 er-0.+r CWrer Stwk d H—H—Courts sd� d. MY& 8. u'b twrtT�ooti 5,+46 en,a>ru cwnry same Sam G.Jr aCourtr same Sam m��w courtr�ooe ' ;a3 MwI [[City 5CM San WvjWCky SCWDh Sam Wa *[ CWr4y Sd,.t 6 3. ha nh MgIW CWry!r"MIS '�a6 CmmI CW PA7 h; dA18 A3rWh Cwrlly Scbx4s .7 4 LWD IAM 3A)p 4AM SAM END 7AM LD)D °..tsmr. HC ikpe�enr dAwhScx,asoiaw.rabb 3p ORANGE COUNTY 23 N{}RTII CARC}LINA Travis Myren said last year, Durham County funded $8 more per student than Orange County, putting Orange County Schools in 41h place state for per pupil appropriations. Slide #24 Fund Balance Joint policy between the County and the School Districts — Last amended in 2018 to increase Orange County Schools undesignated fund balance target from 3%to 5.5% — Each District has targeted undesignated fund balance to rget of 5.5%of budgeted expenditures for cash flow purposes only" — Undeslgnated fund valance may exceed targeted amount ror"unseen events or opportunitles'and other non-recurring purposes — Extraordinary emergency needs may exhaust fund balance • Schod Dlst6ols will take appropriate aohon to address the problem • County will reimburse the Dis lritts for the necessary expendllures to address emergenclea ORANGE COUNTY 24 N{}RT[[{'-4PJDL1NA 26 Slide #25 Fund Balance Audited undesignatedfund balance amounts for FY2021-22 — Does wtrepreserdfundbalarxeapprc9nWram made drxrngFYLYM-23YearioOaf& Chapel HIFCantoro Clty Schools $5.ON.419 5.88%of FY2021-22 ackw expenditures Orange County Sebools S3.922VO 10%of FY2021-22 aclum expendllures • OCSnmxapproprlad*oS1,3m+anaflh•und**Ignai*dhtidlx�+ffardadad* ORANGE COUNTY 25 NC}RTSf C'AROLINA Chair Bedford commended Bonnie Hammersley, Travis Myren, Kirk Vaughn, and school superintendents and staff for a phenomenal recommend budget to address the needs for the schools. She said she very much supports this funding for the schools. Commissioner Fowler said she also appreciates that Bonnie Hammersley coordinated with the superintendents so well this year so that she was able to get an idea of the needs before putting in a placeholder amount into the recommended budget. Commissioner Hamilton agreed with Commissioner Fowler, and said she thinks all residents and students are better served when the county and schools work together. She said children are the future and she doesn't want to continue to have to remedy issues through county's other services that could be addressed earlier on with investments in education. Bonnie Hammersley said it is and always has been a pleasure to work with the schools. She said this year they did work more closely, which is a credit to budget staff with each school district. She said the county received continuation budgets from the school districts earlier this year and got to think about how it would impact the recommended budget. She said she looks forward to continue working with them. She recognized Kirk Vaughn for his work on the recommended budget and said he has done a fantastic job and has been able to bring a new perspective and ask new questions. She said it's always great to have the public pleased with the budget. She also thanked Travis Myren and Greg Wilder for all of their work as well. Adjournment A motion was made by Vice-Chair McKee, seconded by Commissioner Fowler, to adjourn the meeting at 8:19 p.m. VOTE: UNANIMOUS Jamezetta Bedford, Chair 27 Recorded by Tara May, Deputy Clerk to the Board Submitted for approval by Laura Jensen, Clerk to the Board.