HomeMy WebLinkAboutMinutes - 20090110 - Retreat APPROVED 3/17/2009
MINUTES
ORANGE COUNTY BOARD OF COMMISSIONERS
ANNUAL PLANNING RETREAT
SOUTHERN HUMAN SERVICES CENTER
January 10, 2009
9:00 a.m.
The Orange County Board of Commissioners met for a Board retreat on Saturday,
January 10, 2009 at 9:00 a.m. at the Southern Human Services Center in Chapel Hill, North
Carolina.
COUNTY COMMISSIONERS PRESENT: Chair Valerie P. Foushee, Vice-Chair Mike Nelson,
and Commissioners Alice Gordon, Pam Hemminger, Barry Jacobs, Bernadette Pelissier, and
Steve Yuhasz
COUNTY COMMISSIONERS ABSENT:
COUNTY ATTORNEY PRESENT: Geof Gledhill
COUNTY STAFF PRESENT: County Manager Laura Blackmon and Clerk to the Board Donna
S. Baker
Facilitators: Lydian Altman and Donna Warner, UNC-CH School of Government.
Assistant managers and department heads were present from noon to 4:00 p.m.
Retreat Outcomes
1 . Prepared the board to make budget decisions at the January 29th budget
meeting by reviewing current county functions and services, sharing
historical information about the revenues, expenditures, explaining the
budget process, and providing a list of funding considerations and
guidelines for the FY 2009-10 budget.
2. Identified priorities for the 2009-2010 budget and created a draft work
plan.
3. Gained agreement on ways to improve board decision-making by
streamlining county board meetings and agendas.
Highlights from Overview of Revenue Projections
Donna Coffey, budget director, shared the following information:
1 . As shared with the Board in September, there is about a $10 million gap
estimated between FY 2009-10 projected revenues and expenditures.
2. Property tax accounts for 70% of the revenues for county operations. It is
likely this source will remain stable for the upcoming year.
3. Sales tax comprises 10% and is estimated to reduce due to the constraints
on spending imposed by the economic downturn.
4. Intergovernmental transfers (funds from the state and the feds) accounts
for 10%. The county could experience a decrease in funds from the state.
The feds are considering funding "shovel ready" programs.
5. Fees for services are 10% and may be reduced.
6. Working with other counties: The NC Association of County Commissioners
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is working with counties to determine ways to reduce the counties'
dependence on property tax and increase options for generating
revenues.
Expenditures
1 . School funding. Currently 51% of the county budget supports local
schools and Durham Technical Community College. The board discussed
how funding levels were set and learned that in 2000, the board of
commissioners met with the school board and agreed to a target of
48.1%. The following options were discussed for determining funding for
schools by tying funding to:
a. Annual increase in real property valuations
b. Consumer price index
2. Debt service. Board members were asked to consider how much the
county should take on in debt. The county is currently committed to $30
million with additional projects such as parks, affordable housing and
Gateway needing funding.
3. General fund. Based on historical trends, natural growth in county
revenue from property tax is projected to grow by about 3.9%. This is
exclusive of revenue increases tied to recent real property revaluations.
However, the growth in revenue could be less due to the decline in
housing sales. Historical trends in expenditure growth is about 5.4%
Policy Issues for Board Consideration
1 . Based on preliminary projections shared with the Board in September
2008, there is a projected $10 million gap between revenues and
expenditures. Options for closing the gap include:
a. Reducing expenditures and raise revenues.
b. Looking for other sources of revenues.
c. Growing the commercial tax base.
2. If the board decides not to increase taxes and stay with the revenue
neutral tax rate for FY 2009-10:
a. What would the revenue neutral tax rate be and how much
revenue will that generate?
b. How to determine the level of funding for schools and other county
priorities?
3. What level of funding should be provided for schools? Should schools be
asked to "share the pain" with other priorities? Options to consider:
a. Cap expenditures at 48.1%
b. Do not use a ceiling for expenditures and consider other methods
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for allocating funding.
c. Allocate no more than 50% of the county budget to schools.
4. What level of funding should be provided to the community college?
Board members are aware of the role the community college plays in
helping citizens retool in hard economic times.
Priorities for 2009-2010 Budget
The board discussed and voted on the following priorities for consideration in the
2009-2010 budget. Below is a list of the top 11 priorities. Attachments 1-3 in this
document show the detail.
1 . Conserve high priority natural areas, wildlife habitat, and prime forest.
2. Implement Comprehensive Land Use Plan.
3. Develop economic plans for 3 districts.
4. Review services to identify and protect "safety net" programs and
services.
5. Encourage for-profit investments in affordable housing.
6. Develop plan to improve the way the county and citizens communicate
with each other. Foster two-way exchange.
7. Improve intra-and inter-governmental coordination and cooperation.
Work with Town of Hillsborough on joint land use plan, policies and
ordinances and annexation. Work with Durham on economic
development districts.
8. Examine roles and responsibilities of advisory boards.
9. Update county economic development plan.
Budget priorities continued
10. Develop an energy plan that includes economic development strategies
to attract, retain and grow "green" business.
11 . Invest in technology to increase worker efficiencies.
Streamlining Meetings
1 . The board recognizes it is balancing the need to be efficient with a
commitment to citizens to provide access to county government as well
as be responsive.
a.Citizens who haven't had a chance to comment will be given the
opportunity.
b.Citizens who have spoken on the same topic at the same meeting
will not be given an additional opportunity.
c. Citizens will sign up to speak and the time will be limited to 3
minutes.
d. If a citizen has second comments (on a new topic or sharing a new
perspective), they will have less than 3 minutes to speak.
2. Start times for meetings will be 7:00 p.m. beginning March 1St. The board
directed Donna Baker to let the public know of the change.
3
Communication with Public
1 . Staff will let the board know the answers to questions asked by citizens at
board meetings.
2. Create standard time period for responding to public.
3. Identify the responses and make clear the petitioner gets the response.
4. Be proactive. Provide information to citizens in advance.
5. Consider implementing the above recommendations in stages.
Retreat Evaluation
Worked well:
1 . Board members feel prepared to talk about the 2009-2010 budget. There
was good discussion about issues and the board is clear about the
direction it is going.
2. The subcommittee's advance work with facilitators to define outcomes
and create the agenda was very helpful.
Needs improvement for future:
1 . Request that agenda and materials for the retreat be sent out by
Wednesday before the Saturday retreat to give board members time to
review and provide input. Also send out items to be handed out at the
meeting.
2. If there are changes to the agenda agreed upon at the last retreat,
please let board members know to optimize department heads
attendance. Board members voiced concern that department heads
gave up their Saturday to be at the meeting and want to be sure the
department heads' time is maximized.
Future Issues to Address
1 . Impact of Medicaid swap on Orange County. Commissioners asked
Laura to flag pages 10 and 11 of the budget overview document for
discussion at the upcoming legislative breakfast. The board would also
like to talk with legislators about the impact of cutting public school
building funds on the county's operations.
2. Tax increase on bonds. Board members asked Laura to check on the
past promise of a tax increase of no more than 7 '/2 cents as a result of
2001 bond issue.
3. School funding.
a. In order to make decisions about school funding allocations, the
board would like to know what the impact would be of reducing
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funding to the previously agreed upon percentage of 48.1%.
b. Consider delaying funding for school #11 . The board will talk to the
school board prior to making this decision.
c. Consider the impact on reducing funds for Chapel Hill schools due
to the increase in enrollments.
d. Request the staff to monitor the cuts the state makes to its budget
for schools for impact on county.
4. Additions to matrix. Board members directed Donna Coffey to add the
following:
a. percentages for county, state and federal funds
b. percentage of grant funding
c. identify programs/services the county funds which are discretionary
and beyond the requirements for schools. Example: school nurses.
d. Identify how often property is re-evaluated. The current valuation
schedule is every 4 years (page 8)
e. Identify unfunded mandates.
f. Send a list of "shovel ready" projects that may be eligible for federal
stimulus project. Also share list with Congressman Price.
g. Funding for non-profits. Consider the role these entities play in
providing a safety net for Orange County citizens in these
economic times.
h. Breakdown request for fair funding.
i. Funding for mental health. Commissioners were reminded the
board made decisions to "fill in the gap" with county funds when
the state reduced its funding for mental health services.
ATTACHMENT 1: GUIDING PRINCIPLES
County Priorities for FY 2009-2010
Guiding Principles
Create budget ethic/discipline for BOCC and staff that does not assume an
annual increase in the tax rate
2 Focus on providing 'core' county services.
5
3 No new services can be added without exchanging current services or increasing
taxes.
4 County workforce is a valuable asset which should be protected.
5 Make county government accessible, understandable and transparent. Begin
now to relay the message to citizens, partner agencies, and organizations that
current levels of service may not be maintained. Make clear county priorities and
what might change.
6 Maintain a 'reserve fund' as a safety net dedicated for responding to
emergencies.
7 Exercise caution when considering issuing new debt.
8 Work against unfunded state and federal mandates.
9 Provide 'adequate' staffing to perform core county services.
10 Hire staff with 'flexibility' to be reallocated to cover core functions.
Revenues
1 Diversify tax base, including new 'green' commercial tax base.
2 Lobby local General Assembly representatives to consider legislative reforms to
allow flexibility in revenue generation.
3 Seek potential federal dollars for infrastructure (new emphasis or new resources
based on political shifts).
6
ATTACHMENT 2: IDENTIFIED PRIORITIES FOR 2009-2010 BUDGET
Vote Priorities for FY 2009-10 (sorted in descending order)
56 Conserve high priority natural areas, wildlife habitat, and prime forests. (Goal 5)
5 Implement Comprehensive Land Use Plan (Goal 3)
a. Rewrite zoning and subdivision regulations
5 Develop economic plans for 3 districts (Goal 3)
5 Review services to identify and protect `safety net' programs and services. (Goal
1)
4 Encourage for profit investments in affordable housing and review available
tools. (Goal ll)
4 Develop plan and tools to improve the way county and citizens communicate
with each other; foster two-way exchange (Goal 2)
4 Improve infra- and intergovernmental coordination, cooperation, and
collaboration. (Goal 2)
a. Work with Town of Hillsborough on:
o Joint land use planning approaches, policies and ordinances and
annexation
o Economic Development Districts
b. Work with Durham on:
o Economic Development Districts
4 Examine advisory boards and commissions (Goal 2):
a. Ensure they are meeting their missions
b. Determine how boards relate to each other and how their work can be
best integrated with BOCC
c. Ensure sustainability goals
d. Ensure fit with overall county vision
e. Recognize (and be sensitive to) consistencies represented by boards,
commissions when framing this review
4 Update economic development plan for county (Goal 3):
a. Clarify Economic Development plan for each district
b. Identify spectrum of tools
c. Identify other stakeholders
d. Identify what county wants to see happen
4 Develop an energy plan that includes economic development strategies to
attract, retain, and grow " green" business
7
4 Invest in technology to increase worker efficiencies, e.g., web streaming,
paperless agendas, integrated tracking systems between field and office .(Goal
4)
4 Implement county's environmental responsibility goals (Goal 5)
4 Plan to provide 'equitable' library services for OC residents. (Goal 5)
4 Fulfill remainder of bond issuance approved by voters in 2001 for soccer and
Twin Creeks. (G- 5)
3 Complete stewardship and management plans for land legacy. (Goal 5)
2 Develop and accounting and assessment system of water and air pollution
(Goal 5):
b. In conjunction with ICLEI; set emissions reduction target for 2030; conduct
public education campaign and link public with opportunities to improve
energy efficiency and use sustainable energy sources
c. Begin multi-year implementation of Observable Well Network
2 Review the Schools and Adequate Facilities Public Funding Ordinance. (Goal 2)
a. Is it doing what it was originally intended?
b. Does it have application for Durham and Mebane?
1 Address inequities between old and new schools. Older schools are in need of
capital improvements. Building new schools has been the funding priority (Goal
4)
0 Relations with UNC-Chapel Hill: Be actively involved and informed about UNC-
CH decisions and intentions (Goal 2)
0 Support transit, pedestrian, and bicycle facilities and other alternatives to the
single passenger automobile (Goal 3)
0 Amend county zoning to address and modernize airport and related issues
(Goal 3)
0 Review and update county personnel and operational policies and procedures.
(Goal 4)
0 Design and fund space for county attorney offices. Manager and board to
discuss concept and staffing. (Goal 4)
0 Plan to acquire/land bank for future park development. (Goal 5)
0 Develop a policy/update current plan about how parks will be developed,
appropriate ratio of parks to population, length of time to develop, and
incorporation of such into CIP. (Goal 5)
0 Clarify and communicate to public how and why county funding is allocated
8
the way it is.
(Goal 2)
ATTACHMENT 3: IDENTIFIED PRIORITIES BY GOAL
Vote Priorities for FY 2009-10 (grouped by goal area)
s '
4 Encourage for-profit investments in affordable housing and review available
tools. (Goal 1)
5 Review services to identify and protect 'safety net' programs and services. (Goal
1)
0 Clarify and communicate to public how and why county funding is allocated
the way it is. (G 2)
4 Develop plan and tools to improve the way county and citizens communicate
with each other; two way exchange (Goal 2)
4 Improve intra- and intergovernmental coordination, cooperation, and
collaboration. (Goal 2)
a. Work with Hillsborough on:
• Joint land use planning approaches, policies and ordinances and
annexation
• Economic Development Districts
b. Work with Durham on:
• Economic Development Districts
0 Relations with UNC-Chapel Hill: Be actively involved and informed about UNC-
CH decisions and intentions (Goal 2)
2 Review the Schools and Adequate Facilities Public Funding Ordinance. (Goal 2)
a. Is it doing what it was originally intended?
b. Does it have application for Durham and Mebane?
4 Examine advisory boards and commissions (Goal 2):
a. see if they are meeting their missions
b. how boards relate to each other
c. how their work can be best integrated with BOCC
d. sustainability goals
e. fit with overall county vision
f. recognize (and be sensitive to) consistencies represented by boards,
commissions when framing this review
9
4 Update economic development plan for county (Goal 3):
a. Clarify Economic Development plan for each district
b. Identify spectrum of tools
c. Identify other stakeholders
d. Identify what county wants to see happen
5 Implement Comprehensive Land Use Plan (Goal 3):
a. Rewrite zoning and subdivision regulations
0 Create and connect to local, regional, and national transit networks (Goal-3)
0 Support transit, pedestrian, and bicycle facilities and other alternatives to the
single passenger automobile (Goal 3)
0 Amend county zoning to address and modernize airport and related issues
(Goal 3)
5 Develop economic plans for 3 districts (Goal 3)
4 Develop an energy plan that includes economic development strategies to
attract, retain, and grow " green" business
ATTACHMENT 3 CONTINUED
1 Address inequities between old and new schools. Older schools are in need of
capital improvements. Building new schools has been the funding priority (Goal 4)
0 Design and fund space for county attorney offices. Manager and board to
discuss concept and staffing. (Goal 4)
4 Invest in technology to increase worker efficiencies, e.g., web streaming,
paperless agendas, integrated tracking systems between field and office .(Goal
4)
0 Review and update county personnel and operational policies and procedures.
(Goal 4)
6 Conserve high priority natural areas, wildlife habitat, and prime forests. (Goal 5)
2 Develop and accounting and assessment system of water and air pollution (Goal
5):
a. In conjunction with ICLEI; set emissions reduction target for 2030; conduct
public education campaign and link public with opportunities to improve
energy efficiency and use sustainable energy sources
b. Begin multi-year implementation of Observable Well Network
3 Complete stewardship and management plans for land legacy. (Goal 5)
4 Implement county's environmental responsibility goals (Goal 5)
4 Plan to provide 'equitable' library services for OC residents. (Goal 5)
0 Plan to acquire/land bank for future park development. (Goal 5)
0 Develop a policy/update current plan about how parks will be developed,
appropriate ratio of parks to population, length of time to develop, and
incorporation of such into CIP. (Goal 5)
10
4 Fulfill remainder of bond issuance approved by voters in 2001 for soccer and Twin
Creeks. (Goal 5)
11