Re: Local Government Commission discussion about Orange County debt (approved); Declining enrollment in CHCCS & OCS, and oversight/accountability improvement needs

[Jamezetta Bedford]

Ms Hamel.

No. 

The full audit is available at https://www.orangecountync.gov/DocumentCenter/View/30477/Annual-Comprehensive-Financial-Report-for-Fiscal-Year-Ending-June-30-2024  Page 17 of 227, second paragraph states the auditors' opinion that the financial statements present fairly. It is a clean audit.  The audit was presented to the BOCC at our meeting on February 25, 2025. The agenda is here https://www.orangecountync.gov/AgendaCenter/ViewFile/Agenda/_02252025-2193  There are almost always audit findings with any audit. There were four and were reported in the agenda, in the audit, and to the LGC as a matter of GAAP and policy. After each finding the county's response is listed. These have all been implemented and were addressed during the audit process and long before Feb 25. 

Orange County has again received the highest bond ratings from the credit agencies. 

Each month there is a budget amendment on the consent agenda that tracks all additional revenues, expenses or account changes/transfers for the BOCC and public. Our finance director also presents a quarterly update on the financial condition and markets as an information item on these public agendas. Agendas are posted to the website on the Friday (sometimes Thursday) afternoon prior to the meeting. 

Sincerely,

Jamezetta Bedford, Chair

ORANGE COUNTY, NORTH CAROLINA ORANGE COUNTY Department of Finance and Administrative Services PO Box 8181, Hillsborough, NC 27278 | Tel 919.245.2453 |Fax 919.644.3324 February 5, 2025 www.orangecountync.gov

---

From: kari h. <karih...@gmail.com>
Sent: Thursday, June 5, 2025 4:59 PM
To: ALL_BOCC_MANAGER_CLERK <OCB...@orangecountync.gov>
Subject: Local Government Commission discussion about Orange County debt (approved); Declining enrollment in CHCCS & OCS, and oversight/accountability improvement needs

 

CAUTION: External email. Do not click links or open attachments unless verified. Report suspicious emails with the Phish Alert Button located on your Outlook menu bar on the Home tab.

Dear Board of Orange County Commissioners,

Good afternoon, and thank you for your service.

Who currently serves on Orange County Government’s audit committee, when are this group’s upcoming meetings, and how do members of the public either attend or learn what transpired after the fact?  Is this group or a different one tasked with serving as a watchdog over capital dollars?

Below are two efforts to provide the link to the Local Government Commission’s (LGC) June 3, 2025 meeting recording.  

(1) The audio-only discussion concerning Orange County’s debt requests — which were approved — is found at the 24:52 minute mark:  

 https://youtu.be/QXzPAkMik9U?t=1492s

(2) Here is another way to get to this week’s LGC meeting audio.  Notably, and not intuitive for me, one must press on the date — June 3, 2025 — in order for the audio access hyperlink to appear:  

https://www.nctreasurer.com/divisions/state-and-local-government-finance/lgc/local-government-commission

I regret not submitting earlier to the LGC my written public comment about Orange County’s financial practices in order for it to be considered.  Moving forward, I ask that the OCBOCC look to share in advance with residents through its communication channels, including at public meetings, when future Orange County Government audits as well as debt requests are likely to be on a LGC agenda so interested members of the public may attend virtually or in-person.

I also respectfully ask that over the course of the next 24 months that the public receive written quarterly updates, during OCBOCCC board meetings, on the successes and the remaining challenges related to resolving/redressing Orange County Government’s own recent negative audit findings and corrective action commitments.  

 

Finally, the sad financial wreckage in Winston-Salem Forsyth County Schools is one that may not be considered surprising to all.  What have seen for years as the Wild West of largely unmonitored spending and accountability in some K-12 public schools, including CHCCS & OCS, hurts children and the dedicated student-facing workforce.  WSFCS says it now needs to find $42 million to close budget shortfall for this year, https://www.wxii12.com/article/wsfcs-42-million-dollar-budget-shortfall/64865878

Orange County Government getting its own financial house in order as well as implementing policies to require public-facing, monthly, accurate financial reporting by CHCCS & OCS of capital and operational taxpayer dollars seems prudent and critically necessary.  

Thank you for reading my note, my questions, and suggestions for tangible improvements. 

Regards, Kari Hamel

919-602-0263

Please excuse the errors.  

---------- Forwarded message ----------
From: Jamezetta Bedford <jbed...@orangecountync.gov>
Date: Wednesday, April 23, 2025
Subject: Declining enrollment in CHCCS & OCS, and oversight/accountability improvement needs
To: "kari h." <karih...@gmail.com>, ALL_BOCC_MANAGER_CLERK <OCB...@orangecountync.gov>

Hi Kari,

On behalf of the Board, thank you for sending in sample questions and sharing your concerns in advance of the Joint Boards meeting on Tuesday. The primary topic will be their proposed continuation budgets and any expansion items. (They know this is a lean year for operating funds.) My latest understanding from last quarter is that no CHCCS facilities are being closed or sold and they wish to avoid an early redistricting. I have not heard of any OCS sales or closures either. They also are delaying redistricting until a new school opens if possible. They are working on their plans for the bond funds. 

Jamezetta

---

From: kari h. <karih...@gmail.com>
Sent: Wednesday, April 23, 2025 2:20 PM
To: ALL_BOCC_MANAGER_CLERK <OCB...@orangecountync.gov>
Subject: Declining enrollment in CHCCS & OCS, and oversight/accountability improvement needs

 

CAUTION: External email. Do not click links or open attachments unless verified. Report suspicious emails with the Phish Alert Button located on your Outlook menu bar on the Home tab.

Dear Board of County Commissioners,

At the upcoming joint meeting among OCBOCC, CHCCS and OCS, I ask that the elected bodies look to touch upon:

a.  What is the status update on the “newer & fewer schools” aim in Orange County?

More specifically, what school closure scenarios are probable, if any, in the next 24-48 months in both OCS and CHCCS, the anticipated monetary revenue of selling local school buildings and properties, and, what will be the public process and timing of any discussions on the aforementioned? 

Note:  The sale and purchase of a local school building and land to another K-12 provider may have a sizable impact on accelerating the existing enrollment decline trends in OCS and CHCCS.  Faith Academy Charter School, formerly Faith Elementary of the Rowan-Salisbury School System, is just one sale & purchase example that seems prudent to include in a future OCBOCC board agenda topic about the quick moving K-12 educational landscape.  

b.  What are the tangible steps, if any, OCS and CHCCS are taking (and will be taking in the future) to reverse their respective declining enrollment trends in areas they consider within their control?  For example, are one or both of the school districts actively exploring the broadening of their respective open enrollment allowances?  As another example, are one or both of the school districts planning to reduce the overall quantity of time students spend on computers versus with (amazing) teachers/staff and peers as well as eliminating students’ low-quality technology tasks which are not improving their learning outcomes?  

c.  What new, tangible public-reporting measures, if any, will be adopted by the 3 elected bodies (OCBOCC, OCS, CHCCS) to better account to the public on a monthly basis both operational & capital* spending/reserves?  

[* Public access to an accurate reflection of OCS’ capital reserves and expenditures is just one of the gaps that needs to be filled via a joint agreement among the 3 elected bodies if the very concerning takeaways from a recent OCS Board of Education Finances & Capital Committee meeting are well-earned].  

My questions above are neither hypothetically-based nor lightheartedly asked.  I continue to have real concerns that the accountability and oversight measures currently in place in Orange County Government related to local education dollars are outdated, and importantly, not up to the task of preventing waste (or worse) of monies intended to well-educate children. 

Below my signature is the response I received related to a transaction which occurred earlier this school year (2024-25) in which Orange County Government provided a vital financial advance to CHCCS.  From my perspective, this administrative maneuver was largely cloaked from the public, and instead, moving forward should be required to be part of financial figures readily accessible to the public on a monthly basis. 

Finally, creating an Inspector General role at the county-level is a position that I for one have seen a need for in Orange County Government for several years, and still do. I hope you will consider adding this function.

Thank you for considering my suggestions and requests.  As always, thank you for your service.

Please excuse the grammatical and typographical errors. 

Regards, Kari Hamel

919-602-0263

---------- Forwarded message ----------
From: Travis Myren <tmy...@orangecountync.gov>
Date: Wednesday, February 26, 2025
Subject: FW: Cash Flow Support Request
To: "kari h." <karih...@gmail.com>

Kari

 

As you requested, I am forwarding the email exchange between me and Dr. Hamlett regarding the CHCCS request for advancing funds.

 

Travis

 

 

From: Travis Myren <tmy...@orangecountync.gov>
Sent: Friday, September 20, 2024 9:19 AM
To: Nyah Hamlett <nyahh...@chccs.k12.nc.us>
Cc: Jonathan Scott <jsc...@chccs.k12.nc.us>; Gary Donaldson <gdona...@orangecountync.gov>; Kirk Vaughn <kva...@orangecountync.gov>
Subject: RE: [EXTERNAL MAIL!] Cash Flow Support Request

 

Dr. Hamlett,

 

We have reviewed the County’s projected cash position over the next several months and can accommodate your request to advance funding from September through December 2024.  Gary Donaldson, the County’s CFO, will be the point of contact for the County.

 

Take care.

Travis

 

 

Travis Myren

County Manager

O:  919-245-2308  M:  608-345-1526

tmy...@orangecountync.gov

 

 

 

 

From: Nyah Hamlett <nyahh...@chccs.k12.nc.us>
Sent: Tuesday, September 17, 2024 4:09 PM
To: Travis Myren <tmy...@orangecountync.gov>
Cc: Jonathan Scott <jsc...@chccs.k12.nc.us>
Subject: [EXTERNAL MAIL!] Cash Flow Support Request

 

Good afternoon Travis,

I hope this message finds you well. I’m reaching out on behalf of Chapel Hill-Carrboro City Schools to formally request the County’s urgent support as we navigate a significant cash flow challenge. As we’ve discussed previously, our local operating fund balance has been completely liquidated as of the end of fiscal year 2024. While I am aware of the differing viewpoints within our community and with our elected officials about how we got here, I’d be remiss if I did not express my gratitude to you and your team for your partnership and for your engagement in several problem solving conversations with us as we work to rectify this situation on our end. As we’ve discussed, this puts us in a precarious position operationally, as without immediate financial assistance, we risk not being able to meet key obligations.

To ensure uninterrupted operations, we are requesting cash flow support from the County in the amount of $3 million per month, beginning in September 2024 and continuing through December 2024. This funding will enable us to meet payroll, vendor obligations, and other critical expenses while we proceed with our three-tiered reduction in force plan to better align district resources.

We fully recognize the fiscal pressures that the County is also facing and are committed to working together to find the best path forward. Our focus is on preserving essential services and ensuring that we continue to meet all legal, financial, and operational requirements. Your support and partnership are crucial, and I sincerely appreciate your consideration of this matter.

Thank you for your time and for all that you do for our community. I look forward to your positive response.

With Gratitude and In Service to Orange County (CHCCS) Children, 

 

Nyah

 

Nyah D. Hamlett, Ed.D.  Superintendent  Chapel Hill-Carrboro City Schools  919.967.8211  www.chccs.org nyahh...@chccs.k12.nc.us  750 S Merritt MIll Road, Chapel Hill, NC 27516

All mail correspondence to and from the Chapel Hill-Carrboro City Schools is subject to the North Carolina Public Records Law, which may result in monitoring and disclosure to third parties, including law enforcement.

All mail correspondence to and from the Chapel Hill-Carrboro City Schools is subject to the North Carolina Public Records Law, which may result in monitoring and disclosure to third parties, including law enforcement.