Minutes 05-14-2020 Virtual Budget Work Session

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3 School Debt Service The recommended budget provides for $18,507,336 in School Related Debt Service, which represents repayment of principal and interest on School related debt, including general obligation bonds and private placement loans. North Carolina statutes require counties to pay for school related capital items, such as acquisition and construction of facilities. In instances where counties borrow funds to pay for such items, the State mandates counties to repay the debt. The amount of money counties borrow for school related projects is discretionary and varies from county to county. Health and Safety Service Contracts The recommended budget includes $3,629,597 for the Health and Safety Service Contracts for both school districts to cover the costs of School Resource Officers in every middle and high school, and a School Health Nurse in every elementary, middle, and high school in both school systems. Deferred Maintenance Funds for School Capital Projects The recommended budget includes $3,000,000 allocated by ADM towards deferred maintenance needs as addressed in both school districts' assessment of older facilities in the following amounts: Chapel Hill-Carrboro City Schools appropriation of$1,799,700, and Orange County Schools appropriation of$1,200,300. Supplemental Deferred Maintenance Program The FY2020-21 CIP introduces a supplemental funding program for deferred maintenance and life and safety improvements in schools. The program would involve an expenditure of $30 million over the next three years to expedite each School District's backlog of deferred maintenance projects in anticipation of a potential general obligation bond referendum in future years. The total amount is divided between the Districts on the basis of average daily membership for this fiscal year. As a result, Chapel Hill-Carrboro City Schools is allocated 59.99% or $17,997,000 of the $30 million total while Orange County Schools is allocated 40.01% or $12,003,000 of the total amount. Given this allocation, each District was asked to provide a three year plan for these expenditures. Chapel Hill-Carrboro City Schools requested $1,800,000 in year 1, to upgrade security cameras radios and intercom systems in schools; and design and engineering services for large capital projects scheduled in years 2 and 3, $10,000,000 in year 2 and $6,197,000 in year 3. Orange County Schools requested $4,150,000 in year 1, primarily for continuation of their district-wide Safety and Security Plan, and upgrades/renovations to restrooms and the main hall at Orange High School, $3,600,000 in year 2, and $4,253,000 in year 3. School Districts Budget Requests Both School Districts requested increases in per pupil funding for FY 2020-21. Chapel Hill-Carrboro City Schools requested an increase of$500.73. This requested increase in the local per pupil allocation for current expenses would increase the per pupil allocation to $4,852.98. This funding level would represent an increase of $6,165,000 in the current expense for Chapel Hill-Carrboro City Schools.