Minutes-09-26-2023 Joint Meeting with School Boards

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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.