Agenda 11-02-23; 8-a - Minutes - Laserfiche WebLink

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38 FROM THE Rani Dasi I Chair,Board of Education BOARD OF EDUCATION at,R{} Nyah D.Hamlett,Ed.ID.,Superin*rident CHAPEL HILL-CARRSORO CITY SCHOOLS W x W— C, Jamezetta Bedford Chair, Orange County Board of County Commissioners 300 West Tryon Street H[Ilsborough, NC 27278 Honorable Members of the Grange County Board of Commissioners, 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 to attract and retain highly qualified staff to support our students' education.These strategies included: • Salary increases for 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 balance appropriation by approximately$1.4 million. Cue 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 to 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 MITI Road I Chapel Hill,INC 275161 P 919.987.8211 Chapel 1101-Carrboro City Schools administers all educairnnd gwugnn:,napinmem aniwiues and adraisAuits wti.dwal dimnmination be U.yr M mcr, rel,gams,,etamral ar elluric algin,.color,agr,miutary xmce,dis,x oly,.mental atNus,r wil s�arLL:,ea gender,cusp whenr eaemt:,ion A appeapeit,c and allowed by laay. 1 2