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Minutes-09-26-2023 Joint Meeting with School Boards
1 APPROVED 1112/23 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS JOINT MEETING WITH ORANGE COUNTY BOARD OF EDUCATION AND CHAPEL HILL-CARRBORO BOARD OF EDUCATION September 26, 2023 7:00 p.m. The Orange County Board of Commissioners met for a joint meeting with the Orange County Board of Education and Chapel-Hill Carrboro Board of Education on Tuesday, September 26, 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, Phyllis Portie-Ascott, and Anna Richards COUNTY COMMISSIONERS ABSENT: None. 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) CHAPEL HILL-CARRBORO BOARD OF EDUCATION PRESENT:, Vice-Chair George Griffin, and Board Members Riza Jenkins, Ashton Powell and Michael Sharp CHAPEL HILL-CARRBORO BOARD OF EDUCATION ABSENT: Chair Rani Dasi and Board Members Jillian LaSerna and Deon Temne CHAPEL HILL-CARRBORO SCHOOLS (CHCCS) STAFF PRESENT: Superintendent Dr. Nyah Hamlett and Chief Financial Officer Jonathan Scott ORANGE COUNTY BOARD OF EDUCATION PRESENT:, Vice-Chair Andre Richmond, and Board Members Carrie Doyle, Bonnie Hauser, and Sarah Smylie ORANGE COUNTY BOARD OF EDUCATION ABSENT: Chair Anne Purcell and Board Members Will Atherton and Jennifer Moore ORANGE COUNTY SCHOOLS (OCS) STAFF PRESENT: Interim Superintendent Dr. Jim Merrill, Chief Finance Officer Rhonda Rath, and Chief Officer of Operations Dwayne Foster Chair Bedford called the meeting to order at 7:00 p.m. All commissioners were present. WELCOME AND INTRODUCTIONS Chair Bedford welcomed the elected officials and staff from Chapel Hill Carrboro City Schools and Orange County Schools. All of the elected officials and staff introduced themselves. 1. Presentation from Woolpert on Public School Capital Needs Assessment As a strategy to improve the quality and efficiency of operational services, Orange County Government, Chapel Hill Carrboro City Schools (CHCCS) and Orange County Schools (OCS) collaborated on the issuance of a Request for Qualifications (RFQ) for a design firm to provide a: • Comprehensive Facility Condition Assessment (FCA) • Optimization Plan of Existing Space Utilization; and • Examination of Prioritization Models, Benchmarking Best Practices and Scenarios for both school districts that recognize the distinct structure of the County allocating funds to the two school districts. 2 The products of this study will help County and School professionals and elected officials better plan, manage and fund new construction and maintenance of the thirty-one (31)school campuses and administrative offices for the two school districts. At the Board of County Commissioners' March 21, 2023 Business Meeting, the Board approved a contract with Woolpert, Inc. totaling $984,561 to perform this work. Woolpert will provide a presentation on the current status of the Public Schools Capital Needs Assessment. Jessica Goodell and David Sturtz from Woolpert made the following presentation: Slide #1 ORANGE COUNTY 2023 NORTH CAROLINA LONG-RANGE OPnMIZATION 111,- =; HHAPEL HILL- PLAN aC ,,,, (;ARUORO 1 ' 1NS PLANNING �Y Slide #2 AGENDA • Project Overview _ • Condition Assessment l • Educational Adequacy ' G • Capacity • Survey Results • Options ! J' 3 Slide#3 PROJECT OVERVIEW I b ,R YERR LIFE �CYCLE r, Iiiiii RAINIGEPLAN Mn�J REPAIR COR "� X S Jessica Goodell said they walked through all of the schools as part of the assessment. Slide #4 CURRENT DEFICIENCY • Chapel Hill-Carrboro City Schools Priority 1-Critical • Priority 2—Roofing $SO Priority 2-Essential • East Chapel Hill High $70 Priority 3-Necessary • McDougle Middle/Elementary $60 Priority 4-Suggested Carrboro High $50 Priority 5-Improvements • Culbreth Middle $4D • Orange County Schools $30 • Priority 5—Interior Finishes $20 • Terrazzo flooring(Orange Middle&High) $10 • Ceiling Tiles&Grid(Orange Middle) $ L Vinyl flooring(Cedar Ridge H5) 1 Priority 2 Priority 3 Priority 4 Priority 5 • ■Orange County Schools ■Chapel Hill-Carrhoro City Schools V ' Jessica Goodell said that this list is if there was no limit on funding, everything would be done. She said since that is not an option, they are prioritized by importance and items that do not interrupt school. 4 Slide#5 FIVEYEAR LIFE CYCLE PROJECTION • Chapel Hill-Carrboro City Schools • Mechanical • Year 4-Ductwork/Controls/Lighting/Chiller $200 .Chapel Hahcarrboro City Schools ■Orange County Schools • East Chapel Hill High Schools $180 $,6° • Carrboro High school $140 5 Yr-$235 M • Orange County Schools $120 • Interior $199 sa° • Year 4-Roofing s6n • Orange High School f40 sz° • River Park Elementary $. w • Pathways Elementary Year, Year Z Year Year Year 5 Year 6 Year 7 Year B Year 9 Year 10 T Jessica Goodell said that mechanical is the largest need in Chapel Hill and interior needs in Orange County schools. She said that both school systems have these estimates four years from now. Slide #6 FIVE YEAR FACILITY CONDITION INDEX (FCI) FCI RATING SCALE • Ratio to compare dissimilar facilities BEST <10% • Indicator of facility health GOOD 11I10-20e • Higher the FCI the greater the need AVERAGE I21-30% • FCI is only one factor in decision making BELOW 31-50% AVERAGE FIVE-YEAR FCI POOR I51-65% REPLACEMENT Great COMBINED TOTAL FIVE-YEAR CANDIDATE than65% FIVE-YEAR REPLACEMENT FCI NEED COST ui 5 Jessica Goodell said this is how they can compare dissimilar facilities across the entire portfolio. She said that once it gets to 60%, they say that is throwing good money after bad if trying to fix rather than replace. David Sturtz said that once you get to 50% Facility Condition Index (FCI), it means that if the building gets replaced at the same square footage, you would spend about half as much replacing the school as you would just fixing issues. He said as you get higher, the percentage is the amount you would need to spend on the replacement value of the building. He said that the FCI is a condition equalizer and an investment metric. He said it addresses the question of at what point financially is it a better bet to renovate the building vs. just fixing the problem. He said that fixing it leaves everything where it was and the design unchanged. Slide #7 PORTFOLIO FACILITY CONDITION INDEX (FCQ 5-YearFC1 10-YearFC1 9 ■CHCCS ■OCS a ■CHCCS ■OCS 8 7 U 6 U S S a S4 .2 '2 S11 3 3 © m I'1 eyL oa A¢ �e of �e e5 oa �e �e of e O �o P,eta Pyeca Qo e4�a 0 Vo leca JP 4 P P 3 l / Jessica Goodell said that the real concerns are expected facility conditions in 10 years. She said it was important to begin planning now. She said the transportation building falls into replacement because most of the cost is associated with the asphalt parking lot. She said the next five years are ok but at the ten-year model, things tend toward below average or worse conditions. 6 Slide#8 EDUCATIONAL ADEQUACY oEca:rrce.na u�d o6:nee rr ups• h�lr—o��.n..�arcon.I�orwmp.Ea�a.M11u} hm�l+—u�ir..n..e wrcow.l...wmp.n>a.e.a.w-Muf •dr �— +Iwoav cm•cadirle m.,sr Q-1.1 rr kEddr•on ��..d mm EbC p �i°r�f�• ptrnN[ane.. lboyN�Cab u�..ram dym— r�mm m 961 fma►anot.•rg we u..i•..r.r.. 96 196 ]DR 3096 ■MS■MS■ES •[5 \►I David Sturtz said the biggest gaps are where space types are just missing because the buildings were not designed with modern educational standards. Slide #9 CAPACITY CHCC5 • NCDPI - students per room type • Chapel Hill-Carrboro City Schools • Elementary some surplus capacity • Middle & High at or above capacity MS H5 ■Capacity ■Enrollment • Orange County Schools ocs • Elementary some surplus capacity n • Middle some surplus capacity • High at capacity ES MS HS ■Capacity ■Enrollment %A1 David Sturtz said that they looked at this from a design style capacity approach asking what the building can do. He said they will add in the functional capacity through SAPFO at the next presentation. He said those have the most impact in the elementary schools. He said that 7 several schools are at or above capacity in both districts. He said that some schools have capacity, but some have none and this creates an imbalance. Slide #10 FCI V UTILIZATION T=l 5-Year Need-$201.4 Million 60% - 5 x L O O *MS OHS 1 V R 11 11 U 1�{ ... id69f Utilization ■ V TT Slide #10 is in reference to Orange County Schools. David Sturtz said that it is best to be at 20-30% FCI when assessing facilities. Chair Bedford asked if trailers were included in the study. David Sturtz said they were included in the study, but not in the capacity. David Sturtz said he uses 37.5 feet per student when calculating space needs. He said that with all of the conditions and needs that they found, he believes there is a major change in portfolio strategy that is necessary in Orange County Schools. 8 Slide #11 FCI V UTILIZATION CHCCS Total 1 ••d x o �a 0 o BillionReplacement Value-$1 0 0 U 0 ., are undersized 0 za'a aaa sap aa•.; Utilization Slide #11 is in reference to Chapel Hill-Carrboro City Schools. David Sturtz said that addressing the needs in Chapel Hill-Carrboro City Schools will require a similar strategy change as needed in Orange County Schools. He said Woolpert will likely recommend significant facilities investment and replacements of assets. He said that the small elementary schools have the highest capacities with the highest FCI. He said this shows that a right sized elementary school has met the needs. He said that the high schools are full. Slide #12 SURVEY RESULTS Key Takeaways • 3,960 responses (1/3 from OCS) . • Top 3 Safety and SecurityWIN 6 • Upgrade and Add Cameras - �f • Controlled Entries • Add electronic door access security for perimeter doors • Top 5 Facility Investments07- • Technology Infrastructure r.es • Small Group/Pull-out • Reduce/Eliminate Portables • Upgrade FFE • Covered areas(canopies)for bus pick up and drop off and walkways • 88%likely to support increased funding 9 David Sturtz said that the survey responses were similar between school systems with no meaningful differences. He said this shows that around 3,700 support increased funding to make the investments in facilities. Slide #13 OPTIONS DEVELOPMENT • Utilization • FC I ■ �,I • Portables = • Site constraints • Educational Adequacy ■ • Survey • What investments are best for students and best value in the long-term? Slide #14 OPTIONS DEFINED • Option A - priority Maintenance Addressed • Option B - Priority Maintenance and Minor Renovations • Priority Maintenance — Top 3 priorities of Critical, Essential, Necessary (Coal, Worm, Safe, Dry) • Minor Renovation - Improving learning environment • Major Renovation - Improving condition, moving walls, right sizing space types 10 David Sturtz said these will be reviewed with the administrative team and they will build this on budget assumptions. He said the recommendations will be brought back to the commissioners for a decision. Slide #15 CHAPEL H I LL-CARRBORO CITY SCHOOLS Slide #16 ELEMENTARY SCHOOL (CHCCS) - CURRENT STATE School Name Year Bulk Total Square Feet oeficlency Total Fd %Space Types %Space Typesa %Teacidngf [apaclty 2022-23 2022-29 Preumt min Sim teaming Tools Enrollment utilization Present arrboro ES 1957 78,012 $ 3,650,$22 10% 61% 52% 49% 543 485 89% E hesus ES 1972 73,952 $ 11,152,211 34% 72% 36% 50% 579 353 61% Estes Hills ES 1958 63.001 $ 11,990.522 42% 67% 47% 51% 528 331 61% Frank Porter Graham E$ 1960 72,300 $ 15,420,956 47% 87% 54% 64% 589 512 97% le—rd ES 1952 67,300 S 6.608,290 22% 76% 54% 57% 407 432 106% Morris Grave ES 2009 90,221 $ 12,027,060 30% 77% 73% 69% 547 426 79% Northside ES 2013 109,100 $ 6,080,804 95% 87% 85% 583 377 65% Rashkis ES 2003 115.562 $ 20,514,691 39% 79% 67% 58% 532 423 90% cry s E$ 1999 93 580 $ 11,431,422 27% 92% 65% 73% 521 377 72% e III ES 1969 66.198 $ 4,870,839 16% 66% 33% 48% 378 464 3% Mc©vu le ES 1996 249,092 $ 23,297,836 21% 82% 69% 69% 589 477 91% 1981 1,078.318 s 127,045,442 26% 77% 58% 62% 5,795 4,657 90% •$127 million in • Utilization range4 •About 60%of deficiencies o from 61%-123% ra Educational L chools>40%FCI a •Average is—80% a Adequacy N requirements U ¢ •SmaIlerspaces n 11 David Sturtz said this slide shows the deficiencies by building. He said if you are less than 90% of the minimum standard then it is undersized. He said the schools score lower because they are older. Slide #17 ELEMENTARY SCHOOL (CHCCS) - OPTIONS Planning Area Current Option Impact Condition CHCCS ES Option Description Capacity Enrollment FCI Utilization Needs{0-5 Total Option Resulting Resulting years) Investment Capacity Utilization option Priority Maintenance $109,462,641 5,795 90% Option 8 Minor Renovations to Improve Educational Adequacy $125,348,379 5,795 80% Option Major and Minor Renovations to Improve Condition&Adequacy 5,795 4,657 26% 80% $127,045,442 $220,990,781 5,319 BB% Option D Create a K-e School for Estes Hills ES&Phillips MS $215,796,319 4,790 97% David Sturtz said one option for Estes Hills Elementary and Phillips Middle Schools is to combine their campuses and build one K-8 school. He said they will look at the first three priorities. Vice-Chair McKee asked for clarification that if they only do renovations, they lose capacity of 1,000 students. David Sturtz said that was correct. He said they modeled how many classrooms they would lose in a renovation. 12 Slide #18 ELEMENTARY SCHOOL (CHCCS) - OPTIONS A B C D Priority Maintenance& Consolidate Into Priority Maintenance Adequacy Renovations Partial Renovation Major Renovation Partial Renovation Major Renovation New5chool Carrboro ES Carrboro ES Estes Hills ES Carrboro ES Frank Porter Graf Carrhoro ES Estes Hills ES Ephesus ES Ephesus ES Frank Porter Gral Ephesus ES Morris Grove ES Ephesus ES Estes Hills ES Estes Hills ES Morris Grove ES Glenwood ES Northside ES Glenwood ES Frank Porter Graham ES Frank Porter Graham ES Northside ES Seawell ES Rashkis ES Seawell ES Glenwood ES Glenwood ES Rashkis ES Scroggs ES Morris Grove ES Morris Grove ES Scroggs ES McDougle ES Northside ES Northside ES McDougle ES Rashkis ES Rashkis ES Scroggs ES Scroggs ES Seawell ES Seawell ES McDougle ES McDougle ES s4i Slide #19 MIDDLE SCHOOL (CHCCS) — CURRENT STATE school Name Year Built Total Square Feet DeOdency Total FCI %Space Types %Space Types> %Teaching/ Capacity 2022-21 2022-23 Present min size Learning Tools Enrollment utilization Present MCDOu le MS 1994 85% 54% 73% 707 753 106% Culbreth MS 1969 115,462 $ 19,067,027 35% 81% 50% 59% 775 660 g5% PhiNi sM5 1962 109498 1$ 15,392,752 30% 93% 37% 72% 702 610 S7% Smith MS 2001 184180 Is 25,457,155 40% 91% 59% 78% 679 771 114% 1982 399,149 IS 99,916,934 35% 87% 50% 73% 2,984 2,794 98% • $60 million in LL Utilization range 6<75%of Educational o deficiencies o F from 87%-114% U Adequacy • Smith MS has •Average is—100 requirements Cr highest FCI at 40% N •3/4 score 85%+Ed Q Ad space types W David Sturtz said that simply put, the middle schools are full. He said the ones that are there are undersized. 13 Slide#20 MIDDLE SCHOOL (CHCCS) - OPTIONS Planning Area Current Option Impact Condition CHCCS Ms Option Description Capacity Enrollment F[I Utilization Needs(0-5 Total Option Resulting Resulting years) Investment Capacity Utilization Option Priority Maintenance $61,122,639 2,745 92% Option 8 Priority Maintenance and Minor Renovations to Improve $75,065,134 2,745 92% Educational Adequacy 2,745 2,518 35% 92% $83,214,770 Option priority Maintenance and Renovations to Improve Condition& $177,339,114 2,776 91% Adequacy Option D Rebuild Phillips MS&Estes Hills ES as a K-8 School,Priority $202,694,g25 3,210 78% Maintenance and Renovations to Remaining Facilities U z Slide #21 MIDDLE SCHOOL (CHCCS) - OPTIONS A 6 C D Priority Priority Maintenance& Maintenance& Priority Maintenance& Priority Maintenance Major Renovation Priority Renovation Adequacy Renovations Adequacy Adequacy Renovations Renovations McDougle MS McDougle MS McDougle MS Culbreth MS McDougle MS Culbreth MS Culbreth MS Culbreth MS Smith MS Phillips MS Smith MS Phillips MS Phillips MS Smith MS Smith MS Rebuild On-Site Phillips MS �r 14 Slide #22 HIGH SCHOOL (CHCCS) - CURRENT STATE School Name Year Built Total Square Feet Deticlency Total FCI %Space Types %Space Types> %Teaching/ Capacity 2022-23 2022-23 Present min Size Learning Tools Enrollment utilization Present Carrboro HS 2007 152,823 $ 33,983,248 45% 82% 35% 71% 951 853 100% Chapel Hill HS 2020 320,329 $ 20,672,972 18% 83% 69% 19% 11535 11579 103% E.Chapel Hfll HS 1996 279,992 $ 45,376,687 33% 84% 56% 77% 1,275 1,425 112% 2008 753,141 $ 100,032,907 27% 93% 57% 76% 3,661 3.856 105% •$100 million in Utilization avg a 3/3 80%+space deficiencies 4 105% m types •27%avg FCI with N 3 schools>100% s • Highest FCI has 45%highest m �o +, 0 lowest Ed Ad • Small spaces David Sturtz said Woolpert recommends that an addition be built at Carrboro High School. He said it was not designed as a comprehensive school and the space sizes are simply not there. He said he wanted to recommend razing and rebuilding but based on the recent construction, they could not prioritize that method. He said the addition would fit between the wings. Chair Bedford said that the high school was designed to have an addition built in the future for 400 students. She also suggested that with roof needs, some of the roofs may still be under warranty. She said that would not cover the openings, but the warranty should be reviewed. David Sturtz said they are all over utilized. 15 Slide #23 4IGH SCHOOL (CHCCS) - OPTIONS Planning Area Current Option Impact Condition CHCCS HS Option Description Capacity Enrallmeat FCI Utilization Needs(0-5 Total Option Resulting Resulting years) Investment Capacity Utilization Option A Priority Maintenance $84,933,236 3,661 IDS% Option B Priority Maintenance and Renovations to Improve Ed—tional $90,103,422 3,661 I05% Adequacy 3,661 3,856 27% 1O5% $100,D32,9D7 OptionC Addition&Adequacy Renovations at Canbcra HSto Increase $117,286,515 3,946 98% Capacity and Impmve Condition&Adequacy Option D N/A e.a }T_ David Sturtz said the options are redoing schools and adding capacity to Carrboro High School. Slide #24 HIGH SCHOOL (CHCCS) - OPTIONS A 6 C Priority Maintenance Pnonty Priority Maintenance Maintenance Carrboro HS Chapel Hill HS Chapel Hill HS Chapel Hill HS E.Chapel Hill HS E.Chapel Hill HS E.Chapel Hill HS Partial Renovation Partial Renrnra[lon &addition Carrboro HS Carrboro HS 16 Slide#25 ALT HIGH SCHOOL (CHCCS) - CURRENT STATE School Name yeareullt Total Square✓=eet oericiencyiotal FCI %Space Types %Spaceiypes> %Teaching/ Capacity 2022-21 2022-23 present min size Learning Tools Enrollment Utilization present Phoenix Academy 2009 15,282 $ 2,188,595 29% 8% 4% 5% 83 28 .34% 2009 15,102 $ 2188,595 29% 8% 4% 5% 83 28 34% f-! I # C FCI is 29/0° Low utilization >. • Low Educational c 0_ • 55 open seats CO Adequacy � N � C N Slide #26 ALT HIGH SCHOOL (CHCCS) - OPTIONS Planning Area Current Option Impact Condition CRCCS_ALTHS Option Description Capacity Enrollment FCI utilization Needs(0-5 Total Option Resulting Resulting years} Investment Capacity Utilization Option A Priority Maintenance $1,726,291 83 34% Option a Renovation to Improve Condition&Adequacy $5,711,469 62 45% 83 28 29% 34% $2,188,595 Option C N/A Option O N/A Commissioner Richards asked if there was a programmatic decision made about the alternative high school that affects the recommendation. David Sturtz said they have not made a decision about this but there have been discussions about relocating. Al Ciarochi said that the program is packed, and expansion is a future consideration because the facility is being used at 100%. He said that if there are any spaces in the district that become available, they would consider that for alternative programs in the district. 17 Commissioner Richards asked if they would lock-in on the plan when there is a need in the district for support for this kind of alternative program. David Sturtz said they understand the need for support for the program. He said that it would be up to the board to decide after they receive the recommendation based on the consultants understanding of the needs. Slide #27 ALT HIGH SCHOOL (CHCCS) - OPTIONS A B Priority Maintenance Partial Renovation Phoenix Academy Phoenix Academy Slide #28 �i ORANGE COUNTY SCHOOL d 18 Slide #29 ELEM ENTARY SCH 00 L (0CS) - CURRENT STATE School Nama yaar 1u11t Tntal Swan Fast afldrrc T.W Fa %Sp—iypu 9G SWc•7ygs W.7-11irgi GPa." 2W2-7E 2=121 prnant r rnn m. Lannira 7avh Groin.n Ihll'tive P.—t iMral E6 1957 6 102 1114 TS A" 76% 56% 63% 447 295 gG16 Elland-amb E5 1952 5AW,W3. 2CPA IVA 55% 65% 535 551 1pZgl re 6mwn E5 1974 7 id 740 am 199E 96% r4% da6 410 8416 Hil tES 1952 65 3l 9,577.259 1.1% 75% 54% 6-1% 524 430 Hew Ho ES 1991 id B6 $ 13 0i7 m5 37% 77% 461d 67% 562 549 9Va36 Pwtnwa ES 2P00 602 $ 5 11-1 22% BUN 78% T316 534 359 WN 14h'br Park ES 1956 1< 24 i 1<70 27 22% 79% 499% 6A 560 557 9*% low 50 936 7 S3 SAR 37% W% §S% 17% a,an a.1ad W% + $73.5 million in 4J7 r 85% a 4J7 f 65%Ed Ad ° deficiencies utilization requirements • 1/7 a 40%FCI w + 2 near 100% Cr a Small space types p +4/7 r 22%FCI + 1>100% a David Sturtz said there is big swing in conditions, right-size, and utilization. He said there are adequacy issues in the elementary schools and several have high needs. Slide #30 ELEMENTARY SCHOOL (CCS) - OPTIONS Planning Area Current Option Impact OC S aPtlen oeeeHptii, rap"tty BndY.e.t Pn LKElatbn Condition ueede 7etelopnen Re Idng ReduitV4 p}yawls} kwu Btmom CWV`;" {h ZWorl 4ptr"A P1166ty Mai nllMrxe $25,779M7 0,671 BFP% OptivnB Pnvrrry Mai ntvm pond Mlnor 111W a tluns to knprua• $38,699,943 3,671 EML w EduhvMrl Adaquary PNarny Mai menenee end Reeevntlone to I miamin Edwadaml OPM*rnC Adequacy.MdulId Central and Hllkdarou¢hat Control asOrn 3,671 3,151 2796 am $73a' _%W 31PO4SA,101 31411 Sin khavl Prior"Mal niromme*W kotwmdons to knprmv Edmadarsal ai t16a O Adequaey.nehurld[antral hol Hilltharoudiatcantralat one $129.637,FW0 0047 HIM Sdw 1,Build Now Elomentory un Westam Bordwr. David Sturtz said he felt that combining Hillsborough and Central Elementary Schools would be one of the best options for addressing the needs at each school. 19 Slide #31 ELEMENTARY SCHOOL (OCS) - OPTIONS A B C D Priority Maintenance& Priority Priority Maintenance& Priori MaintenarlCe Pnonty Priority Maintenance Priority Maintenance Adequacy Maintenance Adequacy Renovations Renovations Central ES Grady Brown ES Efland-Cheeks ES Grady Brown ES Efland-Cheeks ES Grady Brown ES Pathways ES New Hope ES Pathways ES New Hope ES Efland-Cheeks ES Pathways ES Grady Brown ES Hillsborough ES New Hope ES Priority Maintenance Consolidate into alor Renovation Rebuild On-Site Major Renovation Rebuild On-Site New School Pathways ES Adequacy Renovations River Park ES River Park ES Central ES Central ES River Park ES Central ES Hillsborough ES Efland Cheeks ES H illsborough ES Consolidateinto New Construction New Hope ES New School River Park ES Hillsborough ES New ES Option %A$ rT-- Slide #32 MIDDLE SCHOOL (OCS) — CURRENT STATE School Name Year Bunt Total Square Feet ttefldency Total FCI %Spme7ypes %Space Types> %Teaching/ Capacity 2022-23 2022-23 Present mIn size Learning Tools Enrollment Utilization Present A.L.Stanback MS 1995 186,758 $ 27,859,070 43% 75% 48% 61% 813 642 79Y ravelly Hill MS 2006 122,798 $ 17,963,598 91% 71% 45% 59% 669 428 65% Orange MS 1968 180,400 $ 21,435,075 95% 82% 55% 68% 791 525 66% 1990 3891951 $ 67,257,742 36% 76% 49% 63% 2,267 11595 70% $67+million in 70%avg utilization > Meets about 60% deficiencies 2/3<70% M of Ed Ad a FCl range 31%- N utilization C requirements 0 43% ¢ Small space types 20 Slide#33 MIDDLE SCHOOL (OCS) - OPTIONS Planning Area Current Option Impact Condition OCS_MS Option Description Capacity Enrollment FCI Utilization Needs I., Total Option Resulting Resulting years] Investment Capacity Utilization Option Priority Maintenance $S0,3S1,39S 2,267 70% Option a Partial Renovation at all Middle Schools to Improve Condition and $117,246,147 2,927 83% Adequacy Option C Major Renovation at all Middle Schools to Improve Condition and 2,267 I,S95 36% 70% $67,257,742 $SS1,561,935 1,700 94% Adequacy Rebuild Orange MS and Major Renovations at Stanback&Gravelly Option O $166,6S4,314 1,973 B3% Hill MS to Improve Condition and Adequacy I I I [ David Sturtz said there is a little extra wiggle room in middle schools. He said the adequacy is ok if size is not considered. Slide #34 MIDDLE SCHOOL (OCS) - OPTIONS A B C D Priority Maintenance Partial Renovation Major Renovation Major Renovation Rebuild On-Site A.L.Stanback MS A.L.Stanback MS A.L.Stanback MS A.L.Stanback MS Orange MS Gravelly Hill MS Gravelly Hill MS Gravelly Hill MS Gravelly Hill MS Orange MS Orange MS Orange MS 21 Slide #35 HIGH SCHOOL (OCS) - CURRENT STATE School Name Year Built Total Square Feet DeRciency7otal FCI %Space Types %$pace Types> %Teaching/ Capacity 2022-23 2022-23 Present min slse Learning Tools Enrollment UtRiz tlon Present War Ridge H$ 2002 2701229 $ 12,164,747 79% 71% 72% 1,328 11108 93% range HS 1962 236,337 $ 35,707,629 31% 79% 61% 71% 1,310 1'340 102% 1982 506,566 $ 47,872,375 19% 79% 66% 72% 2,638 2,448 93% $48m deficiencies Highest —80%space types • FCI-9%and 31% utilization/enrollm and 71% aro ent(102%)_ Crrequirements U p highest FCI(31%) .. David Sturtz said that Orange High is overly full. He said from a space perspective, they are ok, but there is room for investment and improvement. Slide #36 HIGH SCHOOL (OCS) - OPTIONS Planning Area Current Option Impact Condition Total Option Resulting Resulting OCS_HS Option Description Capacity Enrollment FCI Utilisation Needs(0-5 Investment Capacity Utilisation years) Option A Priority Maintenance $36,024,603 2,638 93% Priority Maintenance at Cedar Ridge and a Partial Renovation at Option 6 $40,854,233 2,638 93% Orange to Improve Condition and Adequacy 2,639 2,448 19% 93% $47,872,375 Option C Priority Maintenance at Cedar Ridge and Major Renovation at $90,637,961 2,555 96% Orange to Improve Condition and Adequacy Option D Priority Maintenance at Cedar Ridge and Rebuild Orange $143,912,286 2,899 84% 22 Slide#37 HIGH SCHOOL (OCS) - OPTIONS A 6 C D Priority Maintenance Priority Priority Maintenance& Priority Maintenance Partial Renovation Priority Rebuild On-Site Maintenanc R ns e Adequacy Renovations Maintenance Cedar Ridge Hs Cedar Ridge HS Orange H5 Cedar Ridge HS Orange HS Cedar Ridge HS Orange HS Orange HS 1A0 Slide#38 ALT HIGH SCHOOL (OCS) - CURRENT STATE school Name Year Built Total Square Feet Deficiency Total F0 %space Types %Space Types> %Teaching/ Capacity 2022-23 2022-21 Present min size Learning Tools Enrollment Utilizatlon Present artnershi Academ 2006 6,600 $ 602,798 19% 2% 0% 0% 116 34 2006 6600 $ 602789 19% 2% 0% 0% 216 a4 M 6 c FCI is 19% Low utilization • Low Educational :0 82 open seats Adequacy f9 s � N � U 4 ' Q David Sturtz said that functional capacity is different than what the building can hold but the program is full from a programming standpoint. He said they are looking at options to expand with a commons area and kitchen. 23 Slide #39 ALT HIGH SCHOOL (OCS) - OPTIONS Planning Area Current Option Impact Condition Total Option Resulting Resulting OCS_ALTHS Option Description Capacity Enrollment FCI Utilimtion Needs(0-5 Investment Capacity Utilization years) Option Priority Maintenance $568,541 116 29% Option B Priority Maintenance and Renovationsto Existing Building. $3,028,541 149 23% Class am Addition with Commons and Kitchen 116 34 19% 29% $602,799 L.pt,,-nCNA $568,541 O NA $568,541 Slide #40 ALT HIGH SCHOOL (OCS) - OPTIONS A 6 Priority Maintenance Priority Maintenance +addition Partnership Academy Partnership Academy �.r 24 Slide #41 QUESTIONS ILAI WOOLPEPT David Sturtz said the team would review this information with administrative teams in conjunction with budget considerations. Commissioner Richards asked a question about slide #8, Educational Adequacy. She asked if there is no line for adequacy shown, does that mean there is nothing. David Sturtz said it is showing that it is either not there or there and undersized. He said the data would be in the State of the Schools report. Commissioner Portie-Ascott asked about what the space looks like in CHCCS for exceptional children. David Sturtz said it is a traditional, regular classroom, which has been repurposed for exceptional children. He said this would be a classroom likely designed in the 1960's. He said that standards now are for exceptional children's classrooms to be much larger. He said they have a room but not all of the space that you would ideally plan for. He said the support space, such as a lift or washer and dryer, would not be there. Commissioner Portie-Ascott asked how many exceptional children are in the classrooms. Nyah Hamlett said it was about 8-10 students in each. Sarah Smylie said there are meaningful differences in the SAPFO projections, which when reviewed place all of the elementary schools at over capacity. She said she wanted to make sure the options Woolpert presents are based on the real-life capacity of the buildings. David Sturtz said the aggregate differences are about 10% but individual buildings are greater in some cases. He said that they developed options with both in mind. He said they were not looking at any major reduction strategies for Orange County Elementary Schools. He said they look at capacity as what can the building hold in the long-term. He said policies can change, but the building will stay fairly constant. He said Orange County Schools need relief in capacity. Sarah Smylie asked about the difference in the state law between classroom sizes. David Sturtz said they looked at state law and that is a big one. He said that they look at standard loading. He said when they walked the building, their assessors could not distinguish between K, 1, and 2 classrooms when walking through the schools over the summer. He said they used NCDPI loading standards and averaged them across K-5 to 20. He said they then use that against core classrooms. Bonnie Hauser asked what assumptions they made about Pre-K. David Sturtz said Pre-K is loaded at 18. He said they looked at spaces that designated Pre-K to get to 18. He said the only rooms that had capacity at elementary were Pre-K and core classrooms. 25 Bonnie Hauser said the Orange County School Board is considering expanding the alternative high school and starting an alternative middle school. She asked if Woolpert could provide recommendations about what that might look like for the middle school. David Sturtz said absolutely, and it will be added to the mix. Commissioner Portie-Ascott asked how alternative high schools are over capacity. David Sturtz said that a traditional classroom could hold 20-25 children. He said that's not how an alternative high school works. He said they looked at what the building could accommodate. He said if the building had a different purpose, they could make it fit, but it does not. He said he should have shown that information differently next time. Ashton Powell asked what the timeframe for policy changes is based on the DPI standards. He asked if CHCCS has been behind in complying with those standards for five or fifteen years. He asked how long they have been out of compliance. David Sturtz said he cannot speak to the exact dates. He said that standards keep being updated, but buildings do not. He said the standards are for new design. He said they took the new design standards and compared them to the existing buildings. Sarah Smylie said the recommendation to build a new school at the Central campus was surprising, because there are limitations to that site. She said that AL Stanback has the highest FCI, and she was surprised that Orange Middle was recommended to be replaced rather than Stanback. David Sturtz said the question is what is driving the FCI. He said it could be the roof that is the driver, or it could be a variety of other things. Commissioner Portie-Ascott asked about slide #5. She asked if those priorities were included in the critical needs. David Sturtz said yes that they are included everywhere. He said that if they assume you cannot meet all of the condition needs, they start with saying you will at least take care of 1-3 priorities for starting the discussion. Commissioner Fowler asked what the difference between essential and necessary is. Jessica Goodell said it is shades of grey. She said priority 2 would be a roof while priority 3 would be electrical components. Chair Bedford asked if a $130 million bond covers Priority 1 and Priority 2 needs. David Sturtz said yes. He said that would cover nothing else. Commissioner Hamilton said it would be$1.8 billion to replace all of the schools. She said that it is helpful to look at options over time and allow them to be economically responsible while meeting the needs of the students. She said they have to consider how they are going to make investments in the schools that make sense. David Sturtz said that $1.8 billion is the basis for creating the FCI. He said that industry standards suggest that organizations set aside 2% of the total need of replacement value for annual repairs and maintenance. He said that would be $37 million for repairs and maintenance. He said if you do that math over 10 years, then that is bigger than $130 million so they will work with the team to develop scenarios to consider in terms of low, medium, and high budget assumptions. Vice-Chair McKee asked if$37 million assumes they are starting off with new schools. David Sturtz said yes. He said the 2016 State of our Schools Report addresses the issue. He said that since the county and school systems have not been keeping up with the deferred maintenance, the recommendation is 7% rather than 2%. Vice-Chair McKee said they have to do something but there is no alternative to doing a lot. He said this is going to be a heavy lift. Commissioner Fowler said that they had been investing $3 million a year, but that they had been doing $30 million for a couple of years to try to catch up, but even that was inadequate. Vice-Chair McKee said that the county and school systems are losing ground. 26 2. Budget Concerns/Impacts Related to State Funding/Potential Federal Shutdown/Inflation Both School systems provided updates on the county, state and federal funding for their districts this fiscal year. a) Chapel Hill Carrboro City Schools George Griffin introduced the presentation. Nyah Hamlett made the following presentation. Slide #1 THINK (AND DIFFERENTLY 71 IL rt' STR-1c PLAN 2022-2027 �lltliTllll' � - .�... .■.�. e Slide #2 Our • UL u- Equipping students to navigate the world and • - • positive • • throughout theirjourney.1909 CHCCS believes every individual's unique background and culture enhance our schools. By providing students with a safe and joyful learning environment, we collaborate with families to create a communi#y where all students, families and s#aff members feel affirmed and respec#ed to develop #heir fullest potential. THINK(AND ACT) cnei H'r-�a<�aNsnaas I accs�s DIFFERENTLY • Engagement • Collective Efficacy •Social Justice Action • Wellness •Joy THINK(AND ACT) enoper H-cor<eoo c+y scnoor:I r�c:.o<e 27 Slide#3 Slide #4 DIFFERENTLY Slide Jk YYJJ ,{- Beginning of Year Leadership Summit, THINK(AND ACT) August 2023 DIFFERENTLY Chaper nilbCorttoro City schools chccs.org 28 Slide #6 Accountability Data Highest graduation rate ever at 94.8% A new record high for the second consecutive year C10 1yHC-bo.ocnvsxnoo;sI onoos..M THINK(AND ACT) Slide #7 Accountability Data • 83.3% of schools Exceeded or Met Growth expectations "Itys Wools n�s.o,e THINK(AND ACT) Slide #8 Accountability Data • District gains included a 71 .1 7o passing rate on all state exams • Highest in the Triangle cnove1i1�C b=C,+vsoao Js I cn«s.org THINK(AND ACT) 29 Slide#9 Accountability Data • 66.7% of CHCCS schools earned an "A" or " B" grade • Statewide, 26.7% earned an ''A" or " B" cnopeiH'WC.1b..Cid,k to i THINK(AND ACT) Slide #10 Student Growth CHCCS achieved a noticeable ''bounce-back" from unfinished learning, such as: Year-over-year 3rd grade Black reading: Up 11.1 percentage points (to 37.5%from 26.4%) • Year-over-year 3rd grade Latinx reading: Up 3.9 percentage points (to 41.8%from 37.9%) • Some cohort: 4th grade Black reading: Up 3.8 percentage points (to 30.2%from 26.4%when the same students were 3rd graders) cnapelM,Ccirm City hooisIch_c g THINK(AND ACT) George Griffin continued the presentation. Slide #11 THINK (AND ACT) DIFFERENTLY Results of Operations in the Local 1Fund 1ti 2022-2027 I11}llltlll! 30 Slide#12 FY • • LU Operations BORO LocalFund 2022-2027 Slide #13 Looking Back... In the the FY 2022-23 CHCCS Board Adopted Budget, bold strategies were considered, and acted upon,to strengthen the District's position to attract and retain highly qualified staff to deliver and support the instruction received by our students.These strategies included: • Salary increases for our classified staff • Local supplement increases to our certified staff, • Other staff-related recruitment and retention strategies The CHCCS Board of Education approved the appropriation of$5.125 million from their existing unassigned local fund balance to fund these bold actions chapel aaEcor —City scnoole l ch—orn prepared by Business and Financial Services THINK(AND ACT) Slide #14 Fiscal Results in FY 2022-23 The combination of the fund balance appropriation and higher-than-expected continuation costs created an clear structural deficit situation for the the Fiscal Year 2022-23 local fund Preliminary estimates indicate that there will be an approximate$6.5 million reported loss to the local fund once the district's financial statements are audited This loss is approximately$1.38 million above the Board's 2022-23 original projection and local fund balance appropriation cnapaiHili-caabaocBysmomsiencc M prepared by Business and Financial Services THINK(AND ACT)� 31 Slide#15 Largest Non-Salary Increases in FY 2022-23 Icon Yersonnel FY 2022 FY 2@3 1'oY[homy ]'ol". exveaa�Cwg.ry (hnngr • Largest increase seen in Utilities with ComracedServices 3,759,738 3,849,099 90,361 2% approximate 11% increase or Ptofessianal Iklopmen 636,535 906,940 170,405 27% —$435,000 t �+ Ujifiii" 4,030,742 4,465,733 434,991 11% • Increase in Charter School Rcnlul lxores 80,240 163,021 82,781 103% enrollment led to increase in Risk Mompgcrww 845.082 877.Si0 32.728 4%Pntr.hn payments to Charter Schools of Software 790,671 084,470 93,799 12% —$147,000 Chaney School s91,427 1 1,038,529 1 147,102 11.% • General Increases In cost of services Payments s t1OMA34 s 12,085,602 s 1,032,167 10% led to higher expenses in contracted services, insurance, software, etc. as shown in the table Chapel Hill-Carrboro City Schools I aheaa.org Prepared by Business and Financial Services THINK (AND ACT) � Riza Jenkins continued the presentation. Slide #16 MWL m_j UU ILL Fund Balance Analysis Es STRATEGIC PLAN 2022-2027 Slide #17 32 Fund Balance Remaining after Results of FY 2022-23 As of the end of the 2022-23 fiscal year, the remaining total local fund balance level is expected to be reported at $5.51 million. Of that amount, approximately $3.5 million will remain unassigned and available for appropriation in the FY 2023-24 budget. Before any appropriation is made for the FY 2023-24 budget. the ❑istrict's local unassigned fund balance percentage of budget expenditures is projected at approximately 4% ChopelHin-CcrrbomCityScr,00is l chccsorg Prepared by Business and Financial Services THINK (AND ACT) UUMMUM Slide #18 Fund Balance Remaining after Results of FY 2022-23 District Administration the FY 2023-24 operating budget will likely require a fund balance appropriation to balance. A$1 million fund balance appropriation in the FY2023-24 operating budget would reduce that unassigned percentage to 2.81% of budgeted expenditures A$1.5 million appropriation would reduce it to 2.25% of budgeted expenditures Chapel Hlii-Ccrrboro Cty schools I chccs.org Prepared by Business and Financial Services THINK (AND ACT) 33 Slide#19 LU LU LL 4 k-n ■ Est.1909 STRATEGIC 2022-2027 Slide#20 Cash Flow Discussion During the Orange County Joint School Collaboration meeting on April 20, 2023 discussion emerged around the need for a consistent understanding and alignment of what the school districts' levels of unassigned fund balance should be Both District Ad ministrations were tasked with examining Orange County Policy on Fund Balance - 3.1 and conducting a cash flow analysis to assess whether maintaining a fund balance equivalent to 5.5% of budgeted expenditures remains an appropriate standard for each school district cnapeiHil-C—b.m City Scnods l onoe-g prepared by Business and Financial services THINK (AND ACT)111117111-MIUM 34 Slide #21 Cash Flow Discussion CHCCS' Special District Tax accounted for $25.5 million or 31% of total collected local revenues of$82.5 million in FY 2023 In Orange County, property taxes are due on September 1, however they do not become delinquent until January of the following year Due to the annually recurring pattern of collections, the District had only collected $4.6 million or 18.2% of Special District Tax revenue as of November 30, 2022 By November 30, 2022, the District's local operations netted a loss of$6.1 million Chapel Hnbcarrboro city schools I chccs.org prepared by Business and Financial Services THINK (AND ACT) Slide #22 Cash Flow Discussion FY2023 Revenue(Cashln) Expenses(Cash Out) EOM CashBalanc eWdingFB . At 5.5%,the additional cash balance provided July 4,605 256 4,073,837 531,419 August 9,322,061 ]0,893,711 (1,571,630) by a positive fund balance to cover cash flow would have been$4.89 million September 22,196,211 26,179,367 (3,983,156) • Local fund balance would not have been at a October 22,196211 26,179,367 (3,983,156) November 27,826,932 33,994,775 (6,167,943) sufficient level to cover the deficit in operations December 40,591,948 42,141,V3 (1,549,935) during the July to November timeframe January 52,281,640 50,585214 1,696,425 • The Government Finance Officers Association February 61,372,598 61,546,038 (173,440) (GFOA)offers guidance that an 8% March 66247,180 70,264,363 14,017,193) unassigned fund balance target is"good", April 71,587,093 78,472,005 (6,884,911) while a 16%target is a"healthy"target for May' 76,540,427 86,358,447 (9,818,020) government agencies June 92,502,137 89,998,975 (6,496,939) • At 8%,the cash available in the local fund from *May 2023srand our as an—i-monrh bervuse the Dw—..rnred the cfasure fsrere and fund balance would have been approximately Federal Grant Fund en line,which devf—fmm the usual rmehne_ $7.1 million,which would have been enough to cover the operating deficits through November Chapel Hill-Corrboro city schools I chccs.org prepared by Business and Financial Services THINK (AND ACT) 35 George Griffin continued the presentation. Slide #23 BO,�o Policy Review Est.1909 STRATEGIC 2022-2027 Slide #24 Fund Balance Policy The School District's Local Current Expense Fund Balance Policy establishes guidelines and practices for managing fund balances within school districts, emphasizing the importance of maintaining funds for cash flow, using fund balances for non-recurring expenses, and addressing unforeseen emergencies collaboratively between the school districts and County Commissioners. The last revision to the policy was approved by the BOCC in June of 2019. It outlines the School Districts Local Current Expense Fund Balance Policy,which is a joint policy between the Orange County Board of County Commissioners, Chapel Hill-Carrboro City Schools Board of Education, and Orange County Schools Board of Education.The policy states that the School/County Collaboration Work Group shall review the policy every 18 months to determine if changes to the policy are necessary. The local operating fund balance and cash flow information was shared with the Orange County Joint School Districts Collaboration Work Group at its meeting on September 7,2023. Given the expected cash deficit in the month of November,the County has agreed to prepay a portion of the December county appropriation to cover the cash deficit in November. chopel Hli1-carrboro city schools I chccs.org Prepared by Business and Financial Services THINK (AND ACT) George Griffin said that the revision to the policy was in 2018, not 2019. Chair Bedford said that it was possible for the county to forward an advance to the school system to help with the cash flow issues. George Griffin said he appreciated the support from the county. 36 Riza Jenkins continued the presentation. Slide #25 Scope of Federal W Q� Lk Government U_ Exposure Q Est.t909 STRATEGIC PLAN 2022-2027 Slide #26 Scope of Federal Funding at CHCCS The Federal Grant Fund provided$10.6 million and$11.5 million in additional funding to the District in FY 23 and FY 22 respectively. The Federal Grant Fund is primarily used to support: • Title 1 • Mckinney Vento(unhoused student support) • Special Education (EC) • Head Start funding to support Pre K(-$1.5 million annually) • Career and Technical Education (CTE) • Ongoing pandemic relief funds to the District(Non-recurring,ending in FY 2024) • Monetary and commodity assistance with the District's Child Nutrition Cluster(USDA provided--$4.8 million in FY 2023) The Federal Fund maintains a total of--54 FTE Annually,with total Federal assistance to the District in FY 22 amounting to$22.5 million. While these funds have significantly bolstered our resources,it's important to note that they may be at risk in the event of a federal shutdown. Chapel Hill-carrboro city schools i ahaas.org prepared by Business and Financial Services THINK (AN D ACT) 37 Slide#27 k1k IDJ z 00 b . 1 o In Est.1909 STRATEGIC 2022-2027 Vice-Chair McKee asked if federal funding is a guaranteed funding stream. Riza Jenkins said no. Jonathan Scott said that some of the federal funding listed includes pandemic-rescue plan funding, which the districted is winding down. Vice-Chair McKee asked what the plans are for the future of ESSER. Jonathan Scott said the majority of pandemic relief for CHCCS went to programs for recruiting and retaining employees, in the form of signing bonuses and additional bonuses to employees. Vice-Chair McKee clarified that ESSER funds were used for non-recurring expenses. Jonathan Scott said that was correct, that those expenses would not be recurring after FY24. Commissioner Fowler asked if the already agreed support from Orange County was factored into the fund balance analysis shown in the presentation, or if that is something they want codified in a fund balance policy. George Griffin said those funds were just to address a payroll shortfall. Commissioner Fowler asked what kind of fund balance recommendation they were hoping for. George Griffin said they would like to see the fund balance policy set at a minimum of 8% so they can have flexibility to meet expense needs each month. Commissioner Richards said she read the letter in the folder that CHCCS provided to the Board. She said she had concerns about how realistic it is to address the financial needs listed in the letter. [The letter is included in the minutes below.] 38 r FROM THE Rani Dam I Chair,Board or Education BOARD OF EDUCATION � i�f} Nyah D.Hamlett,Ed,D.,Superintendent CHAPEL HILL-CARRSOR0 CITY SCHOOLS W x 0 Jamezetta Bedford Chair, Orange County Board of County Commissioners 300 West Tryon Street Hillsborough, NC 27278 Honorable Members of the Orange County Board of Commissionefs, The Chapel Hill-Carrboro City Schools Board of Education is pleased to provide a financial overview of our Fiscal Year 2022-23 results,and to discuss some critical financial matters that have come to our attention. In FY 2022-23, we pursued strategies aimed at strengthening our ability 0 attract and retain highly qualified staff to support our students' education.These strategies included: Salary increases far classified staff. • Enhancements to the local supplement for certified staff. • Various recruitment and retention initiatives. To fund these actions,the Board of Education approved the appropriation of$5.1 million from our existing local fund balance.However,a combination of fund balance appropriation and inflation driving higher-than-expected continuation costs created an inherent deficit situation during the 2022-23 fiscal year. Preliminary estimates indicate an approximate$6.5 million net loss in the local fund once the districts financial statements are audited.This loss exceeds the Board's original projection and local fund balanoe appropriation by approximately$1.4 million. Rue to this loss,the remaining total local fund balance at the end of the 2022-23 fiscal year is expected to be reported at$5.5 million, with approximately$3.5 million available for appropriation in the FY 2023-24 budget.Therefore, before any fund balance appropriation in the FY 2023-24 budget, our local unassigned fund balance percentage of budgeted expenditures is projected tic be approximately 4%. As is consistent with historical budget adoptions, we anticipate some Level of fund balance appropriation to balance the FY 2023-24 operating budget.A$1 million fund balance appropriation would reduce the unassigned percentage to 2.8%,and a$1.5 million appropriation would further reduce it to 2.3%of budgeted expenditures. 750 S. Merritt Mill Road I Chapel Hill,NO 275161 P 919.987.8211 Chapel Hill-Comboro Cifv Sehoots admnsie s all edivnimni prayran .eugaoymerg anivnie and ndinissrniu ioiilmw dmnmimii"he um of awe ,ehgion,milwal ai clinic origin,culor,ugc,military service,disabibiv,nwntal stn4,s. 9ixn.s,r gender,ux C,"wk�a cmpiinn is npr„,gpdair end allowed by law. 39 FMOR19MIRW Moving forward,we are actively urging the Board of County Commissioners(BOCC)to conduct a oomprehensive review of the minimum fund balance target within the BOCC's School 01stricts local Current Expense Fund Balance Policy(Policy 3.1)to ensure its alignmentwith the ever-evolving financial landscape.As you are aware,this policy outlines the fundamental principles governing fund balance management across both school districts (CHCCS and Orange County Schools)and underwent its most recent review and approval by the BOG in June 2018_ Currently,the policy stipulates a minimum target of 5.5%of budgeted expenditures For unassigned fund balance. However, recent cash flow analyses have revealed that this target falls short in adequately covering operational cash flow during specific periods. We have determined that a minimum target of 8%of budgeted expenditures aligns more closely with the operational reaiifies of our District.We believe in the value of conducting regular assessments and considering potential revisions to ensure that the policy remains in harmony with our current financial needs and challenges. In closing,we would like to express our gratitude for your invaluable support and assistance with the ongoing cash flow requirements of the District.We eagerly anticipate the SOCC's continued partnership and commitment to serve as the school district's safety net,in order to safeguard our financial stability and prosperity.Together, we remain committed to providing the best possible learning environment for our students, and investing in our staff,while maintaining equitable and transparent stewardship of public resources. Thank you for your continued prioritization of these important issues. Sincerely, The Chapel Hill-Carrbora City Schools Board of Education • Rani D. Dasi, M.B.A, Chair • George VV.Griffin, Ph.D., Vice Chair • Riza Jenkins, J-D., M_B_A_ • Jillian J_La Serra, Ed_D_ • Ashton W. Powell,Ph.i-J. ■ Michael H. Sharp, M_Ed_ • Deon L_ Temne 40 1 lit FROM THE Field L1aSl I Gliaif,Board of Education BOARD OF lrIOuCATION 12f3 Nyah D.Hamlett,IE<d-D_,Superintendent CHAPEL HILL-CARRBORO CITY SCHOOLS w Dear Commissioner Bedford and Members of the Orange County Board of Commissioners, The Chapel H ill-Ca rrboro City schools Board of Education is pleased to provide an update on our staffing and vacancy data for the23-24 School Year,and to discuss some critical upcoming needs that warrant our attention. At the start of the 2022-2023 school year, we opened schools 82.6% staffed. As I am sure you would agree,we all strive to fully staff all of our schools and classrooms with talented and highly qualified individuals_With strategic and targeted stewardship of district funding, allotted towards personnel needs,we have been able to move in line with our Strategic Plan's theme to"Act and Think Differently"- Consequently, our focus on recruitment and retention has led our district to opening schools 95% staffed with certified employees (i.e. teachers, school counselors, etc-), which has risen to 97% as of today. We are also 97% staffed with classified employees. This ability to attract and retain educators is of paramount importance and a top indicator of improving success for our most impacted[earners and maintaining high levels of student learning outcomes for all-See below for a breakdown of current vacancies. CATEGORYOF ■ Licensed Employees(School-Based) 34 96.76% Classified Employees(Schoc&Based) 18 96.92% Teachers 32 96.64% Bus Drivefs 9 89.53% Special Education Teachers 9 90.82% "Based on data as of September 21,2023' Without adequate funding,the strategies and initiatives that have been put into place, for our students and school communities, will not be able to continue and thus negatively impact our students. Thank you for your continued support of our students,families and community. In Service to Children, a"n-. Kn—z�� Rani D- Dasi, M.8_A., Chair Chapel H&Can-boro City Schools Board of Education 750 S_Merritt Mill Road Chapel Hill.NC 27616 1 P 919.967,8211 Ch A10 IN-CorFbaro Ciry Schools adnwa,ttre atr t�u:=- I r.—. . ;I., ,:111 aq ivitie aW Am onions wilhoat drsrrrm lna6Vh�WaWbe Of t:+'- rtlipnn,mtwnal nr dhnic ongm,culu,4LgC.rndi lary ner rwr,dtsuti itNy,rnw U starut parental status,ar gcn&,,VWtT4 ul�10xB1j[4dm rs iil mnhroi, and ah„w tir}r h:i� Chair Bedford said that they want special district tax funds to be spent on the children that year. She said the county is not in a recession, Orange County has a health fund balance, and there is insurance should something terrible happen to the facilities. She said the county provides a backstop for the schools. Commissioner Portie-Ascott asked for clarification about the cash flow issue. She asked if the cash flow issue was created because of how property tax is collected. 41 Jonathan Scott said that because the fund balance has been drawn down, there is not sufficient cash in the bank. He said comparing revenues to expenditures, they are about $6.5 million in the hole. He said in previous years they had cash investments that were reflected in their fund balance, which allowed them to float the negative fund balance. He said that the numbers assume that the fund balance is zero. Commissioner Portie-Ascott asked if the higher expense vs. revenue is due to payroll. Jonathan Scott said that the majority of their expenses are annualized and 85% of their expenses are related to personnel. He said their expenses are relatively flat over the course of the year. He said the district tax accounts for$26 million, and collection does not start in earnest until November, December, and January. Vice-Chair McKee acknowledged and complimented the academic gains made by CHCCS. Commissioner Portie-Ascott asked how the student achievement numbers compare to state averages. Nyah Hamlett said that increases and growth are some of the highest in the Triangle region. She said one of the things they look for is growth and proficiency within student groups. She said previously, they compared academic achievement of racial and ethnic groups to each other. She said now, they look at achievement within student groups. Chair Bedford asked what the vacancy rate is for teachers and staff. Nyah Hamlett said it was in the letter. Commissioner Fowler said she would like for students with disabilities to be included, given that teacher vacancy rates in that area are often one of the highest. Nyah Hamlett said they have 5 student groups they focus on: students with disabilities, economically disadvantaged, Black, Latinx, and multi-lingual learners. She said when they have more data disaggregated, they will share that publicly. Chair Bedford asked what the plans are for recruitment and retention. She said the state recently came to an agreement on the budget, but the salary increases for teachers are dismal. Jonathan Scott said the state budget includes 4% salary increases, which is what CHCCS and the county also budgeted. He said there was a reduction in fringe benefits, vs. what they projected. He said that he felt the budget will be sustainable with a minimal fund balance appropriation. Commissioner Fowler asked about paternity leave, which the state will now cover. She asked if that was factored into their budget projections. Jonathan Scott said that was already factored in and will help the district. 42 b) Orange County Schools Andre Richmond made the following presentation. Slide #1 FOrange County Schools Joint Boards Meetin • 't' IWII September • Anne Purcell,L. OCS Board Andre' Richmond,OCS Board Vice Chair Bonnie Hauser,Finance Committee Dr.James Merrill,OCS Interim Superintendent Slide #2 OCS at a Glance, 2023-24 05 K-12 students ! RaceEthnicit 36 I 4 o 0 Amvki IrWwoa+a d.. 1 4Mµvnklatlw i7.a1> ••aa�1'!lii 'Fhe number of atuden[e qualilyriig # for Free and Reduced-PnceMeals employL-L-$ w.drt�•T,+ra increased during the parade niic. 809—tibcd 1...I xs lit 3S3 3Lc—d sluff w!adv¢nccd dcgrcc 1 schools 6 lradidonal oLemwuarp schools 3 yeas-round abm7 iary school 3 rniddla schooLs Diftrarulang agas spok*nat 33dyh nhooLc home odlexd1&nEnghsh Andre Richmond said that schools opened with only 22 vacancies compared to over 40 at the same time last year. He said that only 4 were core classroom vacancies compared to 17 at the same time last year. He said they transported 3,974 students and had a bus driver for every route. He said that more than 50% of OCS students are students of color. He said more families are limited in English proficiency and it is important to remember that not every multilingual learner speaks Spanish. He said that more students are identified as eligible for special needs services than the state provides funded for. He said that to ensure every OCS student's success, 43 resources are needed beyond those provided by the state, and that OCS must lean more heavily on local funds. Bonnie Hauser continued the presentation. Slide #3 Fund Balance Update FY23 Beginning Balance $ 4,932,927 FY23 Ending Balance $ 3,419,757 Obligated/Assigned 347,392 FY24 Unassigned/Available $ 3,872,36.5 9.2e.2o23 lh' Vd'19dPrgYchd Balanc► 7% ENGAGE. CHALLENGE. INSPIRE. Bonnie Hauser said their fund balance is at about 7.0%, which is above the policy recommendation of 5.5%. She said they prefer to carry enough fund balance to cover one month of local and federal salaries and benefits which is about $3 million. She said that last year, OCS drew down about$1.5 million from fund balance, mostly for stipends and bonuses. She said they paid planning period stipends for teachers who gave up planning periods to cover classes, stipends for state mandated training, incentives for substitutes, and other stipends for people who went above and beyond the call of duty. She said they also provided bonuses to attract and retain bus drivers and math teachers. She said that staffing is in a better place, so the school board decided to discontinue most of those strategies. She said they also added stronger controls so the board can better monitor spending in this area. She said that if OCS needs it, they have $4.7 million in capital from county, which has not yet been committed. She said the board has committed the $43 million in capital which was given through the end of last year. Slide #4 FY 2024 Budget Decisions f1l) Net Local Operations Budget Increase $4,213,138 $538/pp • Legislated increases in Salary&Benefits • Inflation increases for custodial&other contracts • Improved School security&nursing staff • Continue bus driver&substitute incentives • Begin transition of ESSER funding cliff • Introduce School autonomy through at risl�Q(� ePLSA L L E N G E. INSPIRE. 44 Slide #5 FY 1 d• 017� • More TA's in our elementary schools • Increase local supplement to recruit and retain • Increase classified pay scales • Expand STEM/STEAM across the district ENGAGE. CHALLENGE. INSPIRE. Slide #6 FY2024 Federal Anticipated Expenditures 067� Total Federal Anticipated Expenditures 6.5 Title I - $2.0M IDEA - $1.9M Title 11 - $230K USDA-$2.2M Title III - $100K Title IV- $100K Total Federal Payroll 5.3 M School Nutrition - $1.8M Title I, 11, 111, IV, IDEA - $3.5M ENGAGE. CHALLENGE_ INSPIRE_ Bonnie Hauser said that at this time, they don't foresee an issue for Orange County Schools with a possible federal government shutdown. She said Rhonda Rath is in regular communications with DPI and has gotten no indication that they should be concerned about these funds. She said if there was a problem, they would use available fund balance first, then look at the $4.7 million in new capital funds received July 1. Sarah Smylie said that one federal budget proposal is to cut Title I funding by 80%. She wanted to make sure the group was aware that it was a possibility. 45 Slide #7 Feedback/Questions Commissioner Fowler asked for clarification that they would use capital funds if necessary. She asked if that was a legal use. Bonnie Hauser said they were under the impression that it was a possibility if necessary. Bonnie Hammersley said it would be an interim solution. Commissioner Fowler clarified that the funds would get paid back. Vice-Chair McKee said it was concerning to use capital funding for ongoing expenses. Bonnie Hauser said it would only be if the federal government shuts down, and OCS spends their fund balance to cover a loss of funding. Chair Bedford said that Bonnie Hammersley said that if there is a fiscal crisis the first thing is to stop capital programs. Bonnie Hammersley said once the federal funds started up again, the capital funds would be replenished. Vice-Chair McKee said he would not want to set a precedent. Commissioner Fowler thanked the OCS board for their presentation. Chair Bedford asked how many more nurses they were able to fund. The OCS board indicated it was two nurses per school. Sarah Smylie said they were Nurse Technicians. Commissioner Hamilton referred to slide #6. She asked if the $5.3 million in payroll was in addition to the $6.5 million. Bonnie Hauser said it was included in the $6.5 million. Ashton Powell said he was curious as to what it would cost to feed lunch for every child. Vice-Chair McKee said he was also interested in this information. Chair Bedford asked if there was a waitlist for pre-school. Rhonda Rath said she would have to bring that information back to the Board. Nyah Hamlett said she doesn't think there is a waitlist. Chair Bedford said that the county knows there are children not in pre-school, and there is county funding available to support them. She said the Partnership for Children wants to understand the barriers. Commissioner Richards said there are still unfilled slots, and funding is available. Bonnie Hauser asked if the Partnership for Children includes Head Start. Chair Bedford said it is for More at 4. Bonnie Hauser said they have Head Start students at elementary schools. Chair Bedford acknowledged that information and said that the schools would have to be licensed differently. 46 Adjournment A motion was made by Commissioner Fowler and seconded by Vice-Chair McKee to adjourn the meeting at 9:17 p.m. VOTE: UNANIMOUS Jamezetta Bedford, Chair Recorded by Laura Jensen, Clerk to the Board Submitted for approval by Laura Jensen, Clerk to the Board.