HomeMy WebLinkAboutAgenda - 05-28-2009 - 2Scenarios For Possible Modifications to the FY 2009-10 Manager's
Recommended Budget
Orange County's FY 2009-10 Recommended Annual Operating Budget was balanced at the revenue neutral tax rate for the County. The Board
of County Commissioners directed the County Manager to prepare scenarios for decreasing the recommended budget in order to attain a tax
rate lower than the revenue neutral rate.
The chart below outlines 5 scenarios ranging from reduction of the recommended tax rate by 112 cent to reduction of 2.4 cents. The chart also
outlines the negative financial impact for County and School funding if the Board were to approve a tax rate less than the recommended rate and
maintain the funding ratio of 48.1 % of General Fund revenues for local school districts and 51.9% for county operations.
"Manager's Note: The following alternative scenarios reflect the areas that I have identified for progressive cuts to reduce the County's revenue
neutral tax rate. The cuts in the first two columns could be considered and not dramatically erode County services and programs. Cuts
identified in all columns, however, would negatively impact County employee pay and County funding for local school districts, Chapel Hill
Carrboro and Orange County Schools. It is important to note, cuts beyond 1 cent will seriously erode County and School programs, in my
opinion."
FY 2009.10 One Cent Generates $1,505,352
Tax Rate Tax Rate Tax Rate Tax Rate Tax Rate
Reduction of Reduction of Reduction of Reduction of Reduction of
.5 cents 1 cent 1.5 cents 2 cents 2.4 cents
FY 2009.10 Recommended Tax Rate (This is the
revenue neutral rate for the County; reflected in 85.80 85.80 85.80 85.80 85.80
cents per $100 valuation)
Possible Tax Rate Reduction (cents per $100
valuation) 0.50 1.00 1.50 2.00 2.40
Tax Rate After Tax Rate Reduction (cents per $100
valuation) 85.30 84.80 84.30 83.80 83.40
Total Dollar Equivalent of Tax Rate Reduction 752,676 1,505,352 2,258,028 3,010,704 3,612,845
Schools Share of Reduction (48.1% of total
$362,037
$724,074
$1,086,111
$1,448,149
$1,737,778
recommended General Fund budget)
County Share (51.9% of total recommended
$390,639
$781,278
$1,171,917
$1,562,555
$1,875,066
General Fund budget)
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Tax Rate
Reduction of
.5 cents Tax Rate
Reduction of
1 cent Tax Rate
Reduction of
1.5 cents Tax Rate
Reduction of
2 cents Tax Rate
Reduction of
2.4 cents
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Item #
Item
1. Safety Net -Manager's Recommended Budget includes $150,000 appropriation for FY 2009-10. Instead of including these monies in the FY 2009-10
budget, the Board may choose to carry forward of $145,000 approved but unexpended Critical Needs Reserve monies from FY 2008-09 to FY 2009-10.
1-a. Carry forward approved but unexpended FY 2008-09
Critical Needs Reserve appropriation $150,000 $150,000 $150,000 $150,000 $150,000
Total Safety Net Decrease $150,000 $150,000 $150,000 $150,000 $150,000
2. Board Priorities -Postpone Board Priorities which have budgetary impacts in FY 2009-10
2-a. Postpone Comprehensive Plan $74,000 $74,000 $74,000 $74,000
2-b. Postpone VideostreaminglPodcasting $50,000 $50,000 $50,000 $50,000
Total Board Priorities Decrease $124,000 $74,000 $124,000 $124,000 $50,000
3. Furlough -1 furlough day savings equates to approximately $158,000; includes salaries, fringes, and closing of facilities
3-a. Mandatory Furlough of 24 hours for all employees $475,000
3-b. Tiered Approach -Mandatory Furlough of 24 hours for
employees earning less than $50,000 and 40 hours for
employees earning more than $50,000
$595,000
3-c. Mandatory Furlough of 48 hours for all employees $950,000
3-d. Mandatory Furlough - 80 hours for all employees $1,583,333
3-e. Voluntary Furlough $100,000 $100,000 $100,000 $100,000 $100,000
Total Savings from Furlough $100,000 $575,000 $695,000 $1,050,000 $1,683,333
4. County Employee Pay and Compensation
4-a. Longevity -Reduce payments to employees $150,000 $189,688 $0
Total County Employee Pay & Compensation $0 $0 $150,000 $189,688 $0
County Share of Budget Reductions $374,000 $799,000 $1,119,000 $1,513,688 $1,883,333
Targeted County Share of Tax Rate Reduction $390,639 $781,278 $1,171,917 $1,562,555 $1,875,066