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HomeMy WebLinkAboutMinutes - 19950612APPROVED 8/22/95 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS BUDGET WORK SESSION MONDAY, JUNE 12, 1995 The Orange County Board of Commissioners met in regular session for a budget work session on Monday, June 12, 1995 at 7:30 p.m. at the Homestead Community Center on Homestead Road in Chapel Hill, North Carolina. COUNTY COMMISSIONERS PRESENT: Chair Moses Carey, Jr., and Commissioners William L. Crowther, Alice M. Gordon, Stephen H. Halkiotis and Don Willhoit. OPENING COMMENTS Chair Carey convened the meeting. He announced that this work session would include a discussion of the budgets of the two school systems in Orange County plus a couple of items brought forth by citizens at the public hearings held on June 1 and June 6. This is a work session and not a meeting where the Board of County Commissioners will make their final decision on the budget. They plan to have several additional work sessions before adopting the budget. PRESENTATION BY JOHN LINK John Link summarized the County's recommendation for the two school systems. It is being recommended that the amount per pupil be increased by $69. The budget includes 2.8 million dollars to address the additional debt occurring because of selling the last of the 52 million in bonds. They plan to appropriate $900,000 interest earnings into the revenue stream of the budget to offset the tax impact. He recommended in this budget a one cent increase in the Chapel Hill- Carrboro district tax from 15.4 cents to 16.4 cents. The rationale for the increase in the district tax was based on a request from the school board and superintendent. This money would be used to cover startup costs for the new high school and elementary school which is in excess of two million dollars. He said as one addresses equity, the question that comes to mind is should this start-up cost be included as part of the general advalorem tax equation for all taxpayers to pay. Start-up costs for the Orange County system, since the CIP has been introduced, are uncertain because as he understands, the Orange County School Board has now determined to pursue a new elementary school in the old Stanback building. Also, as the County addresses equity in school operating funds, it will require a significant tax increase for the Orange County School district taxpayers. The Orange County School Board has recognized the legitimacy of the Chapel Hill-Carrboro School district tax in discussions with both school boards. They have not endorsed the idea of a supplemental district tax for Orange County. He noted that the Board of County Commissioners has the responsibility in each County for addressing the expenditures and determining how to get the revenue to meet those expenditures. The school boards identified the expenditures needed and in some cases provided recommendations on how to get the revenue. He asked if the Board of County Commissioners want consistent recommendations from the school boards on the revenue side of the budget when the schools present their budget. He distributed a blue sheet which indicated specifically the Manager's recommendation for both school systems and how the schools could utilize those funds. AFTER-SCHOOL PROGRAM FOR THE MIDDLE SCHOOLS Information was distributed on the middle school after-school programs in both school districts. Sharon Siler, Management Analyst, briefly explained the information. A motion was made by Commissioner Gordon, seconded by Commissioner Willhoit to fully fund the after-school program in both school systems in the amount of $57,998. VOTE: UNANIMOUS ORANGE COUNTY SCHOOL DISTRICT William Harrison, Superintendent, said that the budget is realistic and contains no fluff. The funds will provide the educational opportunities that the population deserves and is fiscally responsible. The average annual increase in the budget over the last ten years has been 9.50. They need teacher supplements in order to be competitive. The startup costs will be used for one time capital needs for the new A. L. Stanback Middle School. The $17,500 for staff development is very important as well as teacher assistants and two assistant principals for two of their elementary schools. They also need more technology specialists and a graphic arts teacher. He asked that the Board of County Commissioners seriously reconsider funding their entire budget. In answer to a question from Chair Carey on plans for the old Stanback facility, Dr. Harrison said that they are exploring the possibility of using this facility for a year-round program. He is not sure how this will affect their plans for a new elementary school planned for 1998-99. Commissioner Willhoit said that the County is subsidizing Orange County Schools in disposal of their solid waste. He will recommend that this cost be paid by the schools. He wants to provide an incentive for the schools to reduce the amount of solid waste they have. Commissioner Halkiotis feels that both school systems need help with promoting reducing at the source and recycling. Ken Touw, Chair of the Chapel Hill-Carrboro School Board, said that he will provide to the County Commissioners a copy of their annual report which outlines what Chapel Hill-Carrboro schools have accomplished in the area of solid waste. He asked the Board to reconsider the use of the district tax. He feels that what they are asking for will maintain the equity between their old and new schools and not add to the inequity of the two school systems. He noted that the difference in start-up costs could be that McDougle was a new school and Stanback is a replacement school. Neil Pedersen, Superintendent of the Chapel Hill-Carrboro City Schools, thanked the County Manager for the cooperative spirit during the budget meetings. He thanked the Board of County Commissioners for their action on the impact fee. Dr. Pedersen noted that while the recommended budget is only $166,000 short of what was requested, the budget is an austere budget and they need the $166,000. He distributed some materials which described the startup costs for the new schools. They are $73,000 short of the $690,000 they requested. They desperately need a coach for girl's field hockey at the high school. He said that they had 22.5 administrators in 1990-91 and will have 19 central office positions in this budget. The district has grown in number of students and staff but not in the number of administrators. He closed his statement with saying that the Chapel Hill-Carrboro Board of Education supports raising the district tax by 2 cents and/or raise the property tax. He clarified that the 1.4 million for the Blue Ribbon Task Force is for the next five years with $138,000 in the budget this year. Commissioner Willhoit made reference to the request to increase the district tax and said that he favors increasing the general fund by 1-1/2 cents which would basically cover the budget differences or replace the one cent on the district tax. He feels that in terms of equity, the General Fund needs to be used for growth regardless of which district has the growth. Chair Carey said he does not support increasing the district tax because it takes them further away from the equal funding they are trying to achieve. He would like to increase the per pupil cost by $21. Commissioner Gordon supports using the district tax. She feels that the student growth in Chapel Hill-Carrboro schools will eventually have those in Orange County paying these costs. She feels that it is acceptable for the faster growing system to pay for at least the start-up costs for those new students and that paying only the start-up cost will not infringe on equity. Commissioner Willhoit asked the Board to consider at least a two- cent designated tax for a school capital reserve for land acquisition. Bob Bateman, Chair of the Orange County School Board, spoke about equity and said that the only way to achieve equity is to impose a district tax for the Orange County district. He feels that adding to the general tax is imposing a district tax on those who live in northern Orange County. He said that the people of northern Orange does not want the district tax put on them in the form of the general tax. Commissioner Willhoit asked Mr. Bateman several times how he wanted the Board of County Commissioners to pay for the shortfall of $297,000 so the school budgets could be fully funded. Mr. Bateman declined to answer. Commissioner Willhoit also asked him if he wanted the Board of County Commissioners to fully fund the Orange County school budget and Mr. Bateman declined to answer. ADJOURNMENT With no further comments, Chair Carey adjourned the meeting. The next work session will be held on June 14, 1995 at 7:30 at the Homestead Community Center on Homestead Road in Chapel Hill, North Carolina. Moses Carey, Jr., Chair Beverly A. Blythe, Clerk