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HomeMy WebLinkAboutMinutes 05-16-2024-Budget Work Session 1 APPROVED 915124 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS BUDGET WORK SESSION May 16, 2024 7:00 p.m. The Orange County Board of Commissioners met for a Budget Work Session on Thursday, May 16, 2024, at 7:00 p.m. at the Southern Human Services Center in Chapel Hill, NC. COUNTY COMMISSIONERS PRESENT: Chair Jamezetta Bedford, Vice-Chair Sally Greene, and Commissioners Amy Fowler, Jean Hamilton, Earl McKee, Phyllis Portie-Ascott, and Anna Richards COUNTY COMMISSIONERS ABSENT: None COUNTY ATTORNEYS PRESENT: None 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 Board of County Commissioners meeting to order at 7:00 p.m. All commissioners were present. The Board reviewed and discussed: • Outside Agency Funding; • the Durham Technical Community College — Orange County Campus FY 2024-25 Operating Budget; • the Chapel Hill-Carrboro City Schools FY 2024-25 Operating and Capital Investment Plan Budget; and • the Orange County Schools FY 2024-25 Operating and Capital Investment Plan Budget. BACKGROUND: The County Manager presented the FY 2024-25 Recommended Budget (https://www.oranpecountync.gov/budget) at the Board's May 7, 2024 Business meeting. 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. 1. Discussion Regarding Outside Agencies Funding for FY 2024-25 County Manager Bonnie Hammersley made the following presentation: Slide #1 ORANGE COUNTY NORTH CAROLINA FY2024-25 COUNTY MANAGER RECOMMENDED BUDGET Outside Agencies May 16,2024 BOCC Work Session 2 Slide #2 FY2024-25 RECOMMENDED BUDGET OUTSIDE AGENCIES Outside Agencies i i i 1 I MOE Agencies Funded 42 52 38 3 Total $ 1,037,016 $ 1,969,914 $ 884,439 $ 162,776 • Beginning in FY 2024-25,the agencies that are eligible to bill Medicaid and receive Maintenance of Effort(MOE)funds will be moved to the MOE fund and will be managed by Alliance. • "There were seven(7)new agencies requesting funding of$144,000,four(4)new agencies were recommended to receive funding for a total of$22,500. ldzgs—� ORANGE COUNTY NORTH CAROLINA Slide #3 FY2024-25 RECOMMENDED BUDGET OUTSIDE AGENCIES Funding Formula Application 100—95 Up to$10,000 plus base 94—90 Up to$7,500 plus base 89—85 Up to$5,000 plus base 84—80 Up to$2,500 plus base L 79—75 _ Up to$1,000 plus base 74—Below $0 *Funding is based on the requested amount over last years award (base). e.g.The agency's last year award was$10,000 the request this year is$20,000,the application score is 84 the funding formula amount will be$5,000 plus$10,000 base for an award of 315,000. ORANGE COUNTY NORTH CAROLINA Bonnie Hammersley said the funding formula was changed due to limited resources and to ensure a more equitable distribution. 3 Slide#4 FY2024-25 RECOMMENDED BUDGET OUTSIDE AGENCIES Transferred to MOE Funding Club Nova $18,750 $73,000 $28,750 100 El Futuro $73,848 $150,000 $83,848 98 Freedom House $50,178 $50,178 $50,178 83 ORANGE COUNTY NORTH CAROLINA Vice-Chair Greene asked about the recommendation for Club Nova. She asked for clarification regarding if funds were coming from Alliance. Bonnie Hammersley said they would be able to bill Medicaid for some services and some funding is coming through the Maintenance of Effort funding provided by the county. Vice-Chair Green asked if this makes them whole for what they asked for. Bonnie Hammersley said no but it did increase. She said it is the formula plus their base. She said that El Futuro requests more because they have clients that do not qualify for certain benefits. Slide #5 FY2024-25 RECOMMENDED BUDGET OUTSIDE AGENCIES Aging Services Charles I Ionise S?5,000 $26,000 $26,000 98 ORANGE COUNTY NORTH CAROLINA 4 Slide #6 FY2024-25 RECOMMENDED BUDGET OUTSIDE AGENCIES Behavioral Health Award OE Enterprises $65,000 370,000 $70,000 100 ORANGE COUNTY NORTH CAROLINA Commissioner Portie-Ascott asked about the base funding for Charles House. Bonnie Hammersley said that it was $25,000 so they requested $1,000 more. She said that since they score high, they got all of what they requested. Slide #7 FY2024-25 RECOMMENDED BUDGET OUTSIDE AGENCIES Community Services Award �� .. Historic Hillsborough $12,000 $12,000 $12,000 90 Commission Historical Foundation $30,000 $45,000 $32,500 82 Orange County 90 Partnership for Young $3,000 $8,000 $8,000 Children Alliance for Historic $0 $10,000 $5,000 85 Hillsborough Piedmont Wildlife $12,000 $12,000 $12,000 88 Swim for Charlie $6,641 $21,000 $9,141 83 WUXI -®- ORANGE COUNTY NORTH CAROLINA 5 Chair Bedford asked for clarification on the differences between Historic Hillsborough Commission, the Historical Foundation, and the Alliance for Historic Hillsborough. She said the Historical Foundation runs the Orange County Museum. Melissa Allison, Business Manager for the County Manager's Office, said the Historic Hillsborough Commission is the Burwell School. She said the Alliance for Historic Hillsborough is the Hillsborough Visitor's Center. Slide #8 FY2024-25 RECOMMENDED BUDGET OUTSIDE AGENCIES Food/Nutritional Services Recommend . F Chapel Hill/Carrboro Meals $75,000 $75,000 $75,000 95 on Wheels PORCH—Chapel Hill $16,020 $24,300 $21,020 87 Carrboro TABLE $18,000 $23,000 $23,000 93 Transplanting Traditions $12,000 $15,000 $15,000 90 �1 ORANGE COUNTY NORTH CAROLINA Commissioner McKee asked if there is a PORCH Chapel Hill and a PORCH Orange County. Bonnie Hammersley said there is a PORCH Hillsborough. She said they requested funds but scored low and were not recommended for funding. Commissioner McKee asked if PORCH Hillsborough had been funded before. Bonnie Hammersley said they were funded in the previous year equal to PORCH Chapel Hill/Carrboro. 6 Slide #9 FY2024-25 RECOMMENDED BUDGET OUTSIDE AGENCIES Health Award Orange County Rape $61,000 $51,000 $51,000 91 Crisis Planned Parenthood $20,000 $20,000 $20,000 98 Arc of the Triangle 1N 1N Disahility&Autism $2,500 $2,500 82 Services ORANGE COUNTY NORTH CAROLINA Bonnie Hammersley said that Arc of the Triangle was a new organization to be funded and she hopes they will do well and reapply next year so they can receive more funding. She said new agencies don't have a performance history, which affects the score. Commissioner McKee asked for clarification that if you are a new agency, it counts against you. Bonnie Hammersley said that the agency wouldn't have a performance history, which means the agency can't be scored on that area. Commissioner McKee clarified that in the second, third, and fourth years they could be scored on performance. Bonnie Hammersley said yes. Commissioner Portie-Ascott said they must have a history to have a base. Bonnie Hammersley said they will have a base going forward and the county will be able to check their performance. Chair Bedford said if an agency is new, then their base is $0. Bonnie Hammersley said it is a grant award and they don't want agencies to think that funding is a given. She said they need information to evaluate. She said that the Orange County Rape Crisis center requested less funding than their base amount. Slide #10 FY2024-25 RECOMMENDED BUDGET OUTSIDE AGENCIES Housing Community $22,300 $30,000 $30,000 )U Empowerment Fund Jackson Center- $37,500 $62,000 $42,500 87 Northside Neighborhood EmPOWERment $60,000 $80,000 $67,500 91 Habitat for Humanity $95,000 $120,000 $100,000 92 Peewee Homes $10,500 $14,000 $14,000 85 Rebuilding Together $11,250 $15,000 $15,000 88 Hope Renovation $0 $100,000 $7,500 94 ORANGE COUNTY NORTH CAROLINA Bonnie Hammersley said that Hope Renovation's request was for some services that the county already provides which affected their score and they were also a new request. Slide #11 FY2024-25 RECOMMENDED BUDGET OUTSIDE AGENCIES Equity & Inclusion raw,", , .' El Centro Hispano $34,485 $38,377 $38,377 84 Learning Across $22>000 $10,000 $7,500 8' Generation Refugee Community $7,500 $1Q000 $10,000 84 Partnership OC Disability Awareness $14,513 $28,000 $15,000 76 Council Refugee Support Center $5,000 $5,000 $5,000 75 Orange County Living $0 $15,000 $10,000 95 Wage ORANGE COUNTY NORTH CAROLINA 8 Slide#12 FY2024-25 RECOMMENDED BUDGET OUTSIDE AGENCIES Juvenile/Adult Justice Services Recommend Boomerang Youth $20,000 $40,000 $27,500 91 Oxford House $5,000 $9,000 $9,000 90 Re-entry House Plus $25,000 $25,000 $25,000 90 Volunteers for Youth $10,700 $11,000 $11,000 95 Pro Bono Counseling $0 $20,000 $7,500 92 ORANGE COUNTY NORTH CAROLINA Slide #13 FY2024-25 RECOMMENDED BUDGET OUTSIDE AGENCIES Library FY2024-25 Award ' Request E3 Camp $1,500 $2,000 $2,000 93 family Reading Partners $10,000 $12,000 $12,000 93 Orange County Literacy $18,750 $20,000 $20,000 94 Council ORANGE COUNTY NORTH CAROLINA Bonnie Hammersley said she brought the library in to do scoring of the applications on slide #13. She said they were evaluated and scored very well. She said they are good partners to have working with them. 9 Slide #14 FY2024-25 RECOMMENDED BUDGET OUTSIDE AGENCIES Social Services FY2i' Awar The Exchange Club $14,687 $15,901 $15,901 87 Life Skills Foundation $0 $29,000 $7,500 94 Grow Your World $0 $30,000 $2,500 81 ORANGE COUNTY NORTH CAROLINA Bonnie Hammersley said that there are not as many Social Services related agencies listed because several previously funded organizations are now funded through contracts with the Department of Social Services. She said they also work directly with the department director. She said there were two new organizations. Slide #15 FY2024-25 RECOMMENDED BUDGET OUTSIDE AGENCIES Unfunded Agencies KidScope $45,000 $90,000 $0 72 Voices Together $15,000 $38,331 $0 73 Big Brothers/Sisters $14,687 $15,000 $0 72 Bridge I1 Sports $15,000 $5,000 $0 55 Triangle Bikeworks $5,000 $5,000 $0 65 Kidzu $15,289 $30,578 $0 73 CH Farmers Market $0 $25,000 $0 73 CHCCS Foundation $2,500 $5,000 $0 72 Sincerus Healing $0 $10,000 $0 56 Piedmont Electric $0 $20,000 $0 46 PORCH-Hillsborough $16,020 $43,200 $0 71 ORANGE COUNTY NORTH CAROLINA 10 Bonnie Hammersley said that the score cards are available to any agency who wants to understand how their applications were scored. She said that once the ranking is presented to the Board, then the scorecard would be public record. Slide #16 Questions ORANGE COUNTY Commissioner Richards asked for clarification that the Board would no longer see agencies that are funded through direct department contracts such as with Social Services. Bonnie Hammersley said it is a line item in their departments and would be presented as part of the Social Services department budget. Commissioner Richards clarified there would also be agencies in Housing and DSS. Bonnie Hammersley said there are also ones in Health and CJRD. She said those agencies do not have to fill out a grant application but rather the department director makes a recommendation to the County Manager. She said that this year there were limited resources. Commissioner Hamilton said she would like more information on the criteria that the County Manager is looking for to determine the funding. Bonnie Hammersley said that is on the scorecard. Commissioner Hamilton said there is not a lot of information in the budget document on how the scoring is done. She suggested a summary of the process in the budget document to make it easier for the public to understand and how the process is done. Bonnie Hammersley said that probably would have been helpful to include as had been done in previous years. Commissioner Hamilton said it would be good for the public to understand. She said it would also be helpful to know how to get more information. She said when dealing with limited funds, it would be good to see how the rubric balances priorities. She said she does not know how services get weighed. Bonnie Hammersley said it is weighed by the department head working with the advisory board. She said they can determine if services are redundant. She said that for many years Child Care Services were applying and that is a service already provided. She said the recommendations are done by the advisory board and scored by a team and guidance of the department director. She said the process has changed in the last 10 years to focus on how outside agencies can help the county. She said the priorities are food, public safety, childcare, human services types of services. She said she should have included the scoring and is happy to answer any questions. Commissioner Portie-Ascott asked for clarification on the recommendation for El Centro Hispano. Bonnie Hammersley said El Centro's score made them eligible for$2,500,which is all they requested. 11 Commissioner Portie-Ascott asked for clarification on the recommendation for Boomerang. Bonnie Hammersley said their base was $20,000, and their score made them eligible for an additional $7,500. Commissioner Richards expressed concerns about the fact that new agencies do not have experience in the county outside agency funding program and therefore cannot earn more points. She asked if any previously funded agencies did not get recommended for funding. Bonnie Hammersley referred to slide #15. She said unfunded agencies will have a base of$0 in future years. Chair Bedford said another way to approach the process is zero-based budgeting. Commissioner Richards said she didn't know how that would impact outside agencies. Chair Bedford said it creates uncertainty. Commissioner Richards said in future years, making funding decisions might be tougher. She said it is something to ponder. Bonnie Hammersley said there have been some years where the county could not afford to take on new non-profit agencies. She said from those years, there is the reputation that if you are new you do not get any funding. She said that is because the county could not afford to spend funds on new agencies they have never worked with because they cannot guarantee their reliability. She said they want to encourage agencies to apply. She explained some of the reasons agencies were not recommended for funding. She said it does reflect how the economy is going. She encouraged anyone with questions to contact her and said the agencies that did not get funding understand why. 2. FY 2024-25 Operating and CIP Budget Discussions, regarding: • Durham Technical Community College • Orange County Schools • Chapel Hill-Carrboro City Schools President JB Buxton of Durham Technical Community College made the following presentation: Slide #1 DURHAM �- TECH Orange CountyBudget Request 12 Slide#2 SP23 to SP24 Enrollment Update Orange County Residents and Locations Curriculum Courses Continuing Education 30% 90% 80% 25% 24% 80% 70% 20% fi0% 49% 50% 15% 12% 13% 40% 10% 9% 30% 23% zo% zo% 10% o% 0% All Durham Tech OC residents enrolled All students at OC OC residents at OCC All Durham Tech OC residents enrolled All students at OC OC residents at OCC students at any site sites students at any site sites OA durhamtech.edu - President JB Buxton showed data from last spring to this spring. He said they operate out of Hillsborough and have two other sites that are smaller in Chapel Hill and Carrboro. He said they experienced 9% growth and that is among the highest of any community college in the state. He said that Orange County residents increased 12% in their curriculum courses. 13 Slide #3 2024-25 COLLEGE REQUEST 2023-24 Approved 2024-25 Budget Manager's REQUESTED ITEMS Budget Request Recommendation %Funded Current Ex pens 915,346 1,157,360 945,363 82% Recurring Capital 60,000 200,000 75,000 75% Article 46 Items Innovation Hub 20,000 20,000 20,000 100% Apprenticeship Coordinator 8,249 8,755 8,755 100% Promise Grants 200,000 200,000 200,000 100% Back to Work Grants 100,000 100,000 100,000 100% Small Business Grant 70,000 70,000 70,000 100% Mal Article 46 398,249 398,755 398,755 100% AL REQUEST 1,373,595 ,.durharntech.ect, - President JB Buxton said they are aware of the tough decisions that the Board has to make when it comes to funding. He said that he wanted to highlight the Article 46 items and their importance to the apprenticeship and small business efforts. Slide #4 INCLUDED IN THE MANAGER'S RECOMMENDATIONS 1. Promise & Back to Work Scholarships: $300,000 Continued funding of$200,000 for Durham Tech Promise scholarships for graduates of public high schools and $100,000 in Back to Work scholarships ($500 each)for short-term workforce credentials. 2. Innovate Carolina Junction partnership: $20,000 Continued funding for space in the Innovate Carolina Junction as part of our Workforce& Economic Development Partnership initiative with UNC. 3. Small Business Center(SBC) Coordinator: $70,000 Continued funding for this the position. 4. Apprenticeship Coordinator match: $8,755 Continued support of Durham County's 90% match. ,. durhamtech.edu - 14 President JB Buxton said that the Innovate Carolina Junction presence is just the visible side. He said they are working with many science departments at UNC for ways to fill the needs and move into the jobs. He said that this could be either as graduating students or paid internships. He said the apprenticeship coordinator is a partnership with Durham and they are seeing a lot of activity there. Slide #5 NOT INCLUDED IN THE RECOMMENDATIONS 1. Full funding of fixed cost increases: $22,993 ➢Request for fixed costs in salary&benefits,contracted services,property insurance, utilities have increased$68,010 ➢Manager's recommended increase is$45,017 ➢Fixed costs include$26,000 for full funding of livable wage for janitorial staff 2. Recruitment& Retention Fund match with Durham: $10,000 Continued funding to match Durham County's$90,000 investment to boost the College's capacity to recruit and retain high-demand employees. 3. College Liaisons to cover both school districts: $82,000 The County covers the cost of only one liaison working in high schools. 4. Police Officer and police vehicle for OCC: $105,000 Request to ensure sworn officers cover both shifts at OCC.All police vehicles provided by Durham County. WA n:h! President JB Buxton said that the first one only deals with their increases from the existing budget that are required. He said the other part is their commitment to pay janitorial staff in Durham County a living wage. He said that their contracting partner pays a living wage and that caused a significant increase in the overall cost. He said that it is about a $26,000 increase in the contract request from last year. He said they are committed to the living wage for housekeepers. He said that they are looking at a $68,000 increase and the manager's recommended funding is $45,000 and that is a deficit in just doing the same amount as last year. Slide #6 ORANGE COUNTYEXPANSION Orange15 Slide#7 Campus Program �1I�I] 0000 n b��_ l�■■al Rx[6P Health& Creative& Human Services Business& [ollegeand Center for the Skilled Wellness Liberal Arts &Public Safety Entrepreneurship Lareer Global Learner Trades •Anesthesia Sclence&Math •Emergency •Culinary Readiness& •English Asa •Shart- Technology •University Medical Science Training Human Second Term •Nurse Aide Transfer and {EMT,AEMT, •Notary Resour[e Language{ESLM Training Courses Career and Continuing Development •beyond basic Courses in •Addltfona! College Promise Education, •High School English as a HVAC, Short-Term Pathways Paramedic{ Equivalency Second Plumbing Allied Health •Upholstery, •basic Law •HRD Language and Courses Photography,Art Enforcement Workforce Electrlrnl (Phlebotomy, Entrepreneurship Training{BEET) Development on OCC EXG, •Additional {Employabihty. Expansron Community Courses& l06 Skills) Health Worker) Twining in OCC (Simulators)in Expansion OCC Expansion durhamtech.edu President JB Buxton said as they expand, there will •' more seats freed up for new work in human services and public safety. He said that skilled trades will also be added to the Orange County location. Slide #8 OCC Proposed Addition tom- r• J : J.�f. 16 President JB Buxton said that the top picture in slide #8 is the current site and the sketch depicts the plan. He said they are trying not to build additional impervious space and they are trying to stay along the southwest side of the building. He said that the space would include outdoor space and a second floor. Slide #9 Orange County Campus Addition Schematics <Y i e Pb President Buxton said the pictures in slide #9 give an idea of what the new space might look like. He said there will be more spaces for students to congregate or study between classes. He said the addition will be done in Spring 2027. He said that it will be a 55,000 square foot renovation of the space. Chair Bedford asked if the new space will have a place to have a sandwich or eat. President Buxton said it will, and it will have space for food vendors and dining options for students. He said that it will be much better. He said that it will not be full service but they will have more options. Travis Myren, Deputy County Manager, made the following presentation: Slide #1 ORANGE COUNTY NORTH CAROLINA Budget Work Session #1 Durham Technical Community College Education Outside Agencies Board of Commissioners Work Session May 16, 2024 17 Travis Myren said that President Buxton's presentation covered most of the introduction to the presentation and was accurate. Slide #2 Durham Technical Community College • Operating Costs (non-instructional) — page 134 M� Budget Requested Recommended FY2023-24 t 0 - FY2024-25 Difference from Current Expense $900,346 $1,157,360 $945,363 $45,017 Recurring Capital $75,000 $100,000 $75,000 $ - Debt Service $199,033 $191,318 $191,318 ($7,715) General Fund Sub-Total $1,174,379 $1,448,678 $1,211,681 $37,302 Article 46 Supplement $398,249 $398,755 $398,755 $506 TOTAL $1,572,628 $1,847,433 $1,610,436 $37,808 • Current Expense increase of 5% $45,017 does not meet Continuation by$22,993 • Durham Tech Promise Scholarships $200,000 budgeted in Article 46 Sales Tax • Return to Work Financial Aid $100,000 budgeted in Article 46 Sales Tax • Small Business Center Support $70,000 budgeted in Article 46 Sales Tax 2 ORANGE WIM COOUNA Y Slide #3 Durham Technical Community College • Durham Tech Promise • $200,000 Recommended Appropriation for FY2024-25 — Annual scholarship of$1,000 per student for two years — Open to recent high school graduates and GED recipients 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Cohort by Year 91 110 121 153 158 173 165 175 Annuat%increase 1 21% 10% 21% 346 9% (5%) 6% AY2022-23 has been updated to reflect additional awards; AY2023-24 will be updated once summer term students are awarded ORANGE COUNTY 3 NORTH CAROLFNA 18 Slide #4 Durham Technical Community College • Back to Work Initiative • $100,000 Recommended Appropriation for FY2024-25 • Scholarships target unemployed and underemployed residents in Orange County • Short-term offerings with service area industry trend slprojected sector growth such as Life Sciences, Construction Trades, Health Care, Information Technology. • $500 scholarships to 200 students • Cover average tuition costs of$250 and funding to support additional student needs such as textbooks,technology, and transportation. • Funded by Article 46 sales tax ORANGE COUNTY 4 NORTH CAROLINA Slide #5 Durham Technical Community College Back to Work Participants by Age Back to Work Participants by Race 35 33 32 Amer 30 IntlianlAlaska Native 25 1% 20 20 15 12 10 White,Non- Asian or Pacific Hispanic slarl 0 Underl8 18-25 26-35 3fi-45 Over 45 Bieck,Noi Hispanic 2023-24 Back to Work Participants by Educational Pathway ' - - Information Technology 11 Human S—icesand Public Safety 12 Healthard Wellness 1fi Science and Math 1 1 Center for the Global Learner 1 73 business and Entrepreneurship 213 Building,Engineering,and Skilled Trades 03 0 20 40 60 BO Travis Myren said they picked up five students in the over 45 category and 13% points on the proportion of Hispanic students enrolled in the back to work scholarship program. 19 Slide#6 Durham Technical Community College • Small Business Center • $70,000 funds Coordinator position — Training and technical assistance in starting a business or developing business ideas — Business skills seminars,webinars, and workshops — One-on-one confidential counseling sessions to help develop a business plan or address business needs — Resource center with business books, magazines, and other literature • Innovate Carolina Junction Space • $20,000 Recommended in 2024-25 — Partnership with UNC-Chapel Hill — Workforce training, small business counseling, other programming �1 s ORAoN HE COUNTY Commissioner Fowler asked if the $200,000 in scholarships are not fully utilized, where the remaining funds go. Travis Myren said the county is only billed for the scholarships that are used. Commissioner Fowler asked about the Back to Work totals. Travis Myren said they were just two shy of the budgeted total. Slide#7 Education Work Session Agenda • Terminology • Total Budgeted Students and Enrollment Trends • Per Pupil Amount • Impact of the Special District Tax • Funding Recommendations • Undesignated Fund Balance Policy and Amounts �1 7 ORANGE COUNTY Cq A 20 Slide #8 Terminology • Average Daily Membership (ADM) — Based on Department of Public Instruction's 401h day average daily membership — Students living in the District attending a traditional public school • Out of District Students — Students from outside of the district attending a traditional Orange County public school — County is not responsible for funding Out of District Students • Charter School Students — Students living in one of the Orange County school districts but attending a charter school including charter schools in other counties — School districts must transmit the local per pupil amount to the charter schools serving Orange County students — Prorated amount for transfers between Traditional Public School and Charter School • Total Budgeted Students Number of students for which Orange County government provides funding on a per pupil basis ORANGE COUNTY 8 NORTH CAROI-INA Chair Bedford said out of district students are those students coming with their parents who work at the school system. Commissioner Portie-Ascott asked if the money from the home counties follows them. Chair Bedford said no. Slide #9 Total Budgeted Students FY2024-25 � Chapel Hill-Carrboro City SchoolsOrange County Schools Average Daily Membership 11,219 6,990 from DPI Out of District Deduction (309) (145) Charter Students 231 1,091 Total Budgeted Students 11,141 7,936 %of Total Budgeted Students 58.40% 41.60% • The number of total budgeted students dictates the amount of current expense funding each District receives. The County must provide the same amount per pupil to each District. • The percentage of total budgeted students influences how capital and recurring capital funding has historically been divided between the Districts. 9 ORANGE COUNTY NA 21 Travis Myren said the numbers are important because the raw number of students determines the amount of current expense that the district receives. He said they take the number give the amount per student to each district. He said that capital funds are also allocated by the percentages shown. Slide #10 Student Enrollment Over Time Total Budgeted Students by District 13,000 12,115 12,242 12,339 12,239 12,160 12,387 12,274 12,236 12,351 11,820 11,993 12,000 1 442 11,382 11,253 11,141 21,000 20,000 9,000 �CHCCS 7,863 7,966 8.072 8,011 8,134 8 7,935 ,156 8,110 8,023 8,003 tOCS 7,801 8,000 7,437 7,148 7,227 7,172 71357 7,000 6,000 5,000 2.- 2008-09 2-19 2010-11 201112 2112-1 2013-14 2014-11 2015-16 21-1 201710 201&19 2019-20 202Q21 2021-22 2022-23 1.324 202425 CHCCS Budgeted Student Decrease of 112 Students Budgeted student percentage decreases from 58.44%to 58.40% OCS Budgeted Student Decrease of 67 Students ORANGE COUNTY 10 Budgeted student percentage increases from 41.56%to 41.60% NORTH CAROLINA Travis Myren said there was a decline in CHCCS likely attributable to the pandemic. He said it has abated but has not been eliminated. He said this is true in both districts but less of a percentage change in Orange County schools. He said that in Orange County, the loss has been happening for a longer period rather than a stark decrease. 22 Slide #11 Student Enrollment Over Time Chapel Hill-Carrboro City Schools Average Daily Membership 13,000 12,256 12,353 12,203 12,239 12,474 12,355 12,321 12,448 12,129 12,017 12,000 en 11,814_1.1,7.;g 11,343 (�2) 11,466 11,393 11,219 11,000 (73) (174} 10,000 9,000 8,000 7,000 ZOW Oa z00&00 2 -20 201"1 202-lx 2Olz-]3 x0W-19 ZW41s ZOIs-16 x016P 20L119 —.. 202— 2 -xl 2— —-x9 2o23-24 xOZo-zs Loss of 174 students for FY2024-25 � ORANGE COUNTY 11 NORTH CAROLINA Slide #12 Student Enrollment Over Time Chapel Hill-Carrboro City Schools Out of District and Funded Charter Students 400 — 350 350 309 300 241 241 242 250 251 253 250 210 �thaner 200 �au1 of oinnce 167 162 155 169 166 156 205 150 117 117 100 50 0 —08 200809 2009.10 2010.11 2-2 2012.13 2023.14 2-5 2-26 20-7 201]-18 20-9 20-W 20-21 2021-22 2022.23 —24 —25 Decrease of 41 Out of District Students for FY2024-25 Increase of 21 Charter Students ORANGE COUNTY 12 Charter Students Represent 2.0%of Budgeted Students NORTH CAROI.INA Travis Myren said they gained 21 charter students and the number of out of district students went down. 23 Slide #13 Student Enrollment Over Time Orange County Schools Average Daily Membership 8,000 7,693 7,501 7,526 7,551 7,544 7,500 7,420 7,272 7,299 7,192 7,IB2 7,12Z 6,954 720 7,007 (117) 6,990 7,000 (00) (732) 6,500 6,000 5,500 5,000 zao7ae zone-09 2009-10 2mo-12 —112 2mz-13 201a-14 2.... zms16 zmsn 2m1aa zolal9 —20 zozo-zl —-zz zozz-z3 2023 24 20-25 Loss of 132 students for FY2024-25 ORANGE COUNTY 13 NORTH CAROLINA Slide #14 Student Enrollment Over Time Orange County Schools Out of District and Funded Charter Students 1,200 1,091 999 1,000 919 885 843 800 769 617 +charcer 600 +ourof oisence 519 400 364 254 254 254 254 254 254 254 254 200 60 57 89 69 89 89 89 89 89 104 89 103 97 110 106 110 119 0 2M0 2W0 2009.10 201M1 2011-12 2012-13 2013-14 201415 201516 201E17 2027.18 201M9 2MM0 2020.21 2021-22 2022.23 2023.24 2M2 25 Increase of 92 Charter Students Charter Students Represent 13.7%of Budgeted Students ORANGE COUNTY 14 Increase of 27 Out of District Students for FY2024.25 NORTH CAROLINA 24 Slide #15 Enrollment - Budget vs. Actual Chapel HIII-Carrboro City Schools Budgeted vs.Actual Enrollment Budget Actual Difference Cost Difference 023-24 11,393 11,248 145 $775,170 022-23 1 11,466 11,371 95 $456,760 021-22 12,448 11,420 1,028 $4,489,276 020-21 12,321 11,645 667 $2,912,789 019-20 12,355 12,270 85 $369,920 018-19 12,474 12,296 176 $741,370 017.18 12,239 12,239 0 3 - 016-17 12,017 12,113 -96 $(371,328) Orange County Schools Budgeted vs.Actual Enrollment Budget Actual Difference Cost Difference 023-24 7,122 6,975 147 $785,962 022-23 7,182 7,066 116 $557,728 021-22 7,299 7,073 226 $986,942 020-21 7,381 7,007 374 $1,633,258 019-20 7,388 7,358 30 $130,560 018-19 7,345 7,276 69 $287,385 2017-18 7,644 7,315 229 $913,939 016-17 7,551 7,413 138 $533,794 hops.//w .dpi.nc.noy/districts-schools/district-gncrationslfinancial-and-business-services/demographics-and-finances/ ORANGE COUNTY 15 NORTH CAROLINA Travis Myren said they have historically budgeted for more students than are actually enrolled. Slide #16 Per Pupil Allocation Per Pupil Allocation Total Current Expense Budget $108,090,282 Total Countywide Budgeted Students 19,077 Per Pupil Amount $5,666 Each budgeted student funded at the same per pupil amount Wudgetepr I Countywide District S Per Pupil � Allocation CHCCS 11,141 $5,666 $63,124,906 OCS 7,936 $5,666 $44,965,376 ORANGE COUNTY 16 NOR-TH CAROLINA Travis Myren said the per pupil allocation is up 5% from last year. 25 Slide #17 Per Pupil Allocation Over Time County Per Pupil Funding Amount History $6,000 $5,346 $5,000 $4,352 $4,367 4 808 $3 S66 $3,991 $4,165 $4,3fi7 $4,000 $2,957 $3,069 $3.200 $3,096 $3,102 $3,167 $3,269 $3,000 $2,000 $1,000 °$ Sy'' ,YO ,y'Y titi 43 ,ya ti5 1b ,y'1 ,y4 ti9 ,y° ti~ tiry 5L1 ti°�~ ^E�� ti ti ti°~y ti ti ti ti ti ti°�~ Fy F F X F F Fr 4° F �ti ry°tiff Change in Per Pupil Allocation 1600.10 $500.00 $400.00 . $300.00 $200.00 $170.50 5174.00 1 7.5 $100.00 $6.00 4 4.75 AFT $65.00 Slzoo-.aal ti ti ti ti° ti° ti° ti° do ,o do .yo ti° ,y° ,y° ,o ro ti Travis Myren said that this recommended per pupil increase would be the third highest in recent history. Slide #18 mpact of the Special District Tax Chapel Hill Carrboro City Schools District Tax Rate History 25.00 23.00 xx.00 xx.00 20.00 2-020.35 20.84 20.84 20.84 20.94 20 xo.00 zo.ao .18 20.18 20.18 20.18 19.68 19.80 � 18.34 18.30 16.30 15.75 15 40 15- 15.00 10.00 5.00 0.00 3 4 4 $ 4 u LL LL LL LL LL LL L LL LL LL LL LL LL u LL LL LL LL LL LL LL � u LL LL LL LL LL LL u LL LL LL ORANGE COUNTY 18 NORTH CARC LEINA Chair Bedford asked for confirmation that the orange bars on the graph in slide #18 are revaluation years. Travis Myren said yes. 26 Slide #19 Impact of the Special District Tax CHCCS Per Pupil History with District Tax A" $0,217 $8 000 $7,811 $7,001 $7,OW $6,329 $6,362 6,38a $6000 $5,769 $5,890 $fi,085 5, 7 $4 824 $5,093 $5 000 723 $4,770 $4,793 •u t d P isn ax er Pupil Equivalent $41000 •tnunry Per Pu pll $3,000 rwi P.—PI $2,000 $1,000 MEN FY2007-M FY2009-10 FY2011-12 FY2013-14 FY2015-16 FY2017-18 FY2019-20 FY2021-22 FY2023-24 ORANGE COUNTY 19 NORTH CAROLINA Commissioner Fowler asked if charter students from Chapel Hill Carrboro City Schools receive per pupil funding from the special district tax. Travis Myren said no, not unless the charter school is in Chapel Hill and there are not any currently. Slide #20 FY2024-25 Funding Recommendations SchoolTotal Recommended Current Expense $108,090,282 Local funding for operating expenses Recurring Capital $3,060,000 Pay-Go for minor capital items Debt Service $19,182,204 Principal and interest payments an school debt Health &SafetyContracts $4,004,666 One School Nurse per Facility One Safety Officer for Middle and High Schools TOTAL $134,337,152 Calculation of Percentage of General Fund Revenues Dedicated to K-12 Education Total School Funding $134,337,152 =46.74% Total General Fund Revenue $287,425,795 20 ORANGE COOUNA Y 27 Slide #21 FY2024-25 Funding Recommendations Operating Budget Funding as a Percentage of General Fund Revenue Funding Target-48.1% 52.0D% 50.68% 50,58% 50.00% 49.696 4 68 50.05% 48.91% 48.99% 49,10% 49.10% 48.06% 48.22% 48.07% 48.0D% 47.09% 46.74% 46.0D% 44.00% 42.00% 11 40.OD% ti ti 'LO,50 �Otiti ryoyti ryp,,;7 ryOytt ryO,yti �0�6' vOy'1' �y4! ryo19' ry0,56' rypryti ryptiti ell ryD,yY 91 FI ORANGE COUNTY 21 NORTH CAROLINA Slide #22 FY2024-25 Funding Recommendations Education Expenses by Category 1zD,DDD,DDD 108,09D,282 102,992,576 100,000,000 93.578,78 89,820,720 R8,829,114 89,353,187 84,957,670 80,745,847 �Tptal Current Expense 80,000,000 77,201Al2 74,097,465 Total R—Hv gCapital 60,000,0D0 TTotal Debt S-- —5chaal Health antl 50e1y Contracts 40,000,0D0 23,736,246 21,807,353 21,322,130 17,625,421 1],n0,542 S8,5D7,336 19,192,204 20,000,000 15,646,915 15,372,383 15,074,910 3,354,000 3,354,O 3,559,429 3,629,597 3,629,597 3,629,597 3,738,485 3,888,025 4,004,666 D FY 201516 FY 2015.17 FY 2017-18 FY2018-19 MD19-20 FY2020.21 FY2021-22 FUC22-23 FY2023-24 MD2 25 Travis Myren said current expense is increasing by $5.1 million, but debt service is decreasing by $2.1 million. He said that due to the decrease in debt service the other increases are dampened. Commissioner Richards and Chair Bedford asked for a graph explaining the reason that the percentage of funding is going down. 28 Slide #23 FY2024-25 Funding Recommendations School Budget Requests and Manager's Recommended Budget $80,000,000 $70,000,000 566,284,998 $68,589,998 $63459788 $63,801,168 $60,000,000 IIL Recommended Expansion plus Special Correct $50,000,eee 0iWid Tax $47,654,446 $44.549.346 $44,965,376 a.^o Recommended Expansion $4o,aoa,oco Ill 24 Butlget Continuation $10,000,000 $20,000,000 $10,000,000 Chapel HIII-Carrboro Clty Schools Orange County Schools • CHCCS Orange County Schools • Recommended Budget($63,124,906)plus New Special District Recommended Budget $44,965,376 Tax Revenue($676,252)=$63,801,158 $416,030 more than Continuation Request $341,370 more than Traditional Continuation Request $2,689,070 less than Expansion $2,483,840 loss than Corrective Action Plan Restoration _ $4,789,130 less then Expansion ORANGE COUNTY 23 NORTH CAROLINA Slide #24 FY2024-25 Funding Recommendations Top Twenty County Per Pupil Appropriations for 2022-23 by Local Educational Agency(LEA) Chapel-Hill/Carrboro City Schools 7,167 Asheville City Schools ,874 Durham Lounty Schools 5,190 Orange County Schools 5,182 Dare County Schools 4,7 13 Chatham County Schools 4,439 Transylvania County Schools 41110 Charlotte-Mecklenburg County Schools 3 849 New Hanover County Schools Hyde County Schools 3.7 Wake County Schaals 3,448 Brunswick County Schools 3,385 Guilford County Schools 3,365 Buncombe County Schools 3,351 Mooresville City Schools 3,325 Weldon City Schools 3,260 Watauga County schools 3,152 Northampton County Schools 3,086 Carteret County Schools 3,018 Forsyth County Schools 3,017 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 Source:NC Department of Pub&Instruction,Teble 30 24 ORTITCWTH CAR NGE COUNTY INA Commissioner Portie-Ascott asked if opioid funding is used for the schools. Travis Myren said that is a grant process and there is a separate section of the budget dedicated to the Opioid Fund that they would go over later. 29 Slide #25 FY2024-25 Capital Funding Recommendations iBudget Totalrp .. District Article 46 Sales Tax $3,195,999 Proportion of Budgeted Students,less Charter Students Debt Financed School Improvements $4,429,718 Proportion of Budgeted Students Lottery Proceeds $1,402,354 Proportion of Budgeted Students Recurring Capital $3,060,000 Proportion of Budgeted Students Represented in Transfer from General Fund,Not new resources Supplemental Deferred Maintenance $20,197,000 Proportion of Budgeted Students at time of appropriation TOTAL $32,285,071 ORANGE COUNTY 25 NORTH CAROLINA Slide #26 FY2024-25 Funding Recommendations Operating and Capital Budget Expendiures $200,643,201 $200,000,000 $166,622,223 $15fi,844,974 $150,000,000 $147,993,465 144 225 894$148,338,779 $134,353,360 $120,257,320 $99,191,737 $101,831,686$lOfi,587,366 $100,000,000 •Gplul Budg<[Total •Ope,atlng Budget Total $50,000,000 $0 FY 2013-14 FY 2014-15 FY2015-15 FY2016-17 FY2017-18- FY2018-19 FY2019-20* FY2020-21 FY2021-22* FY2022-23 FY2023-24 FY2024-25 'Includes 2016 Bond 26 ORANGE COUNTY -1rH[CAROINA 30 Slide #27 Fund Balance • Joint policy between the County and the School Districts — Each District has targeted undesignated fund balance target of 5.5% of budgeted expenditures for "cash flow purposes only" Undesignated fund balance may exceed targeted amount for"unseen events or opportunities" and other non-recurring purposes Extraordinary emergency needs may exhaust fund balance • School Districts will take appropriate action to address the problem • County will reimburse the Districts for the necessary expenditures to address emergencies ORANGE COUNTY 27 NORTH CAROLINA Slide #28 Fund Balance • Audited undesignated fund balance amounts for FY2022-23 — Does not represent fund balance appropriations made during FY2023-24 Year to Date - Chapel Hill-Carrboro City Schools $3,620,602 4.07%of FY2022-23 actual expenditures - Orange County Schools $2,933,879 7.28%of FY2022-23 actual expenditures ORANGE COUNTY 28 NORTH CAROLINA Vice-Chair Greene asked where they could see in the school operational budgets the amount of money given to "refill" the amount that leaves with charter students. Travis Myren said it is in the current expense part of the budget. Vice-Chair Greene asked if it is broken down somewhere in the budget because it gets bigger every year. 31 Travis Myren said it would be calculated by the per pupil amount and that he would e-mail that information to the commissioners. Commissioner Portie-Ascott asked if it is recommended in the budget to bring CHCCS fund balance up to the 5%. Chair Bedford said there is not a minimum, it is just a target. She said that Gary Donaldson, the Chief Financial Officer, developed a plan to help districts with cash flow because of the timing of property tax payments. Kirk Vaughn discussed that the changes in fund balance are not part of either districts continuation requests and just the percent increase on expenses. A motion was made by Commissioner McKee, seconded by Commissioner Fowler, to adjourn the meeting at 8:22 p.m. VOTE: UNANIMOUS Jamezetta Bedford, Chair Laura Jensen Clerk to the Board Submitted for approval by Laura Jensen, Clerk to the Board.