Agenda - 06-06-2017 - 8-a - Minutes

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1 Recommended annual amount to "regularly upgrade existing facilities' systems, components, 2 fixtures, equipment and finishes..." 3 CRV ($192) x Gross Sq Ft (1.4M) x 4% = $10,718,408 for OCS 4 CRV ($192) x Gross Sq Ft (2.1M) x 4% = $16,379,112 for CHCCS 5 6 Recommended annual amount to make sure buildings are "clean and in good working order.." 7 CRV ($192) x Gross Sq Ft (1.4M) x 3% = $8,038,806 for OCS 8 CRV ($192) x Gross Sq Ft (2.1M) x 3% = $12,284,334 for CHCCS 9 Total Recommended Expenditure Amount: 7% - $47.2 million annually 10 6% - $40.3 million annually 11 5% - $33.6 million annually 12 2016-17 OCS & CHCCS Total Expenditures: 3.7% - $24.7 million annually 13 14 Commissioner McKee referred to the unfunded plan on page 8, and asked if these 15 projected cost estimates are outside of anything that the bond may cover. 16 Todd LoFrese said yes. 17 Commissioner McKee referred to page 9, and the SAPFO projections. He sais CHCCS 18 are projecting such a low increase in the number of new students, that new schools will not be 19 needed for 10 years, and this is opposite of what the BOCC was told in the transit plan. 20 Todd LoFrese said CHCCS is operating at about 98% capacity, and the SAPFO 21 numbers do not trigger until they hit certain levels. He said over the past few years there has 22 been a flatness of student growth, but next year CHCCS is expected to grow by 222 students. 23 Commissioner McKee said the schools' projections are probably more correct. 24 Andrew Davidson said it is not just the slow enrollment growth, but the fact that there will 25 be an increase in capacity through some of the construction done with bond funds. 26 Commissioner McKee referred to the fund balance allocation on page 7, and asked if 27 the schools are thinking about using excess fund balance on capital projects. 28 Todd LoFrese said the existing joint policy states that the BOE shall develop a plan for 29 the use of fund balance that is in excess of 5.5% target. He said as part of that policy, it 30 recommends that fund balance should be used for one-time expenditures, not recurring budget 31 needs. He said CHCCS has increasing constructions costs, and is concerned about the project 32 budgets at Lincoln Center and Chapel Hill High School. He said there is a strong likelihood that 33 some of the fund balance will need to be contributed to those projects. 34 Commissioner McKee said these fund balances were accumulated through funding of 35 operating expenses, and asked if this excess fund balance has been used before for capital 36 expenses. 37 Todd LoFrese said CHCCS have used fund balance before for capital expenses, 38 including the entire Glenwood Elementary project, at $1.2 million. He said the fund balance 39 increases in a variety of ways: a budget line is under-expended; close fiscal monitoring; and 40 occasionally there is unexpected revenue. He said there was a sizeable Medicaid 41 reimbursement one year. 42 Commissioner Rich referred to page 2.2 in the agenda, and said the ABC revenues 43 seem to be decreasing. She said Chair Dorosin had worked hard to get more funds for the 44 County from the ABC revenues, and asked if there is a reason the schools are not seeing that 45 increase as well. 46 Todd LoFrese said CHCCS got $45,000 this year. 47 Commissioner McKee asked if the ABC Money is for special projects like alcohol 48 education. 49 Todd LoFrese said yes.