HomeMy WebLinkAboutAgenda - 01-29-2009 - Attachment 1 ATTACHMENT 1
Minutes of Orange County Board of Commissioners Retreat
January 10, Southern Human Services, Chapel Hill, NC
Present: Valerie Foushee, Chair. Commissioners: Alice Gordon, Pam Hemminger, Barry
Jacobs, Mike Nelson, Bernadette Pelissier and Steve Yuhasz. Manager: Laura Blackmon; Clerk
tot the Board: Donna Baker. Attorney: Geof Gledhill. 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 fo. 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 $20 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 10Y6 and may be reduced.
6. Working with other counties: The NC Association of County Commissioners 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 200 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
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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 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.
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4. Review services to identify and protect "safety net" programs and services.
Budget priorities continued
S. Encourage for-profit investments in affordable housing.
6. Develop plan to improve the way the county and citizens communication 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.
Q. Examine roles and responsibilities of advisory boards.
9. Update county economic development plan.
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 Oevvtopic or sharing a new perspective),
they will have less than 3 minutes to speak.
I. Start times for meetings will be 7:00 p.m. beginning March l^ . The board directed
Donna Baker to let the public know of the change.
Communication with Public
1. Staff will let the board know the answers to question asked by citizens at board
meetings.
J. 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
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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 7cents 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 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.
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