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HomeMy WebLinkAboutMinutes - 19951209APPROVED 2/12/96 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS GOAL SETTING RETREAT DECEMBER 9, 1995 The Orange County Board of Commissioners met on Saturday, December 9, 1995 at 8:30 a.m. at the Homestead Community Center in Chapel Hill for the purpose of their annual Goal Setting Retreat. COUNTY COMMISSIONERS PRESENT: Chair Moses Carey, Jr., and Commissioners William L. Crowther, Alice M. Gordon, Stephen H. Halkiotis and Don Willhoit. COUNTY ATTORNEY PRESENT: Geoffrey Gledhill COUNTY STAFF PRESENT: County Manager John M. Link, Jr., Assistant County Managers Rod Visser and Albert Kittrell and Clerk to the Board Beverly Blythe (all other County staff will be identified appropriately below) NOTE: All documents referred to in these minutes are in the permanent agenda file in the Clerk's office COUNTY FISCAL POLICY CONSIDERATIONS AND FORECASTS Budget Director Sally Kost used charts to show revenue trends and projections. She emphasized that these are preliminary and she will have a better projection in the Spring. To summarize, the current tax rate is 94.5 cents. In FY 1995-96 the general fund revenue from "current" property taxes will be $45.11 million. In FY 1996-97 this will increase to $46.50 million. One cent on the general fund property tax equals $476,000 this fiscal year and is projected to equal $490,700 for FY 1996- 97. Sally Kost showed the source of revenues including sales tax, licenses and permits, charges for services, impact fees, intergovernmental revenue, intangibles, tax receipts and earnings on investments. She showed on another chart school enrollment for both school districts and the per pupil current expense appropriation for the past seven years. The additional costs identified by the Chapel Hill-Carrboro School System for new schools for 1996-97 total $1,492,000. Other issues to be considered that may have an impact on the budget includes impact of welfare reform, opening of new jail expansion and the results of the Efficiency and Innovation Committee. Sally Kost said that with regards to the one cent sales tax, there was a weak fourth quarter for FY1994-95 and it looks as if the one-cent sales tax may fall short this year. However, the one-half cent sales tax will probably exceed the estimated budget for this year. This is the tax earmarked for capital projects with 70o going to schools and 30o County. Commissioner Gordon emphasized that the County needs to publicize shopping in Orange County so that sales tax revenue can be increased. Commissioner Willhoit feels this is an opportunity to look at the charges for services. With reference to impact fees, he feels that the Board needs to develop a policy for how the additional $750.00 being collected for the Chapel Hill-Carrboro School System should be allocated. John Link noted that Chapel Hill-Carrboro School system will be asking for additional schools while Orange County Schools do not expect to ask for an additional school at this time. Geoffrey Gledhill noted that the impact fee cannot be used for current capital unless it is new space. However, sales tax revenue can be used. Commissioner Gordon questioned how the renovation money is being spent for the Hillsborough Elementary School (formerly A.L. Stanback) and how long it will extend the life of this facility. Commissioner Halkiotis said that this facility had a complete retrofit four or five years ago and that part of the school is in good shape. However, they will not be able to use the entire facility. John Link attended a meeting on welfare services yesterday. He said that there will not be any real change before June for welfare services. There is a downward trend on AFDC cases in the state which means that the two areas that the County and State will need to address between now and June is day care and Medicaid. The focus is on getting people into jobs and providing day care for these people. It is uncertain how much Medicaid costs will increase. These changes will come about July 1, 1996. In summary, Sally Kost said that the overall growth in total revenue will be about $2 million, while the cost for just opening the two new schools and other readily identifiable expenses will be close to $3 million. Orange County Schools would like to use impact fee monies for the startup costs for the old A.L. Stanback School. This will necessitate an amendment to the Impact Fee Ordinance to allow them to use these monies in this way. Planning Director Marvin Collins said that the technical report on impact fees will be ready for public hearing in May, 1996. They are waiting on the outcome of the School Construction Standards Task Force. With regards to recreation fees and increasing the Payment-In-Lieu fees, they will provide a report in early 1996 in time for the February public hearing. The current regulation is based on assessed value when it should be on the basis of true market value. It will be easier for the staff to administer on a true market value basis. He mentioned that another option is to establish an impact fee for recreation. The County has this enabling legislation. Commissioner Gordon asked that staff give some suggestions on raising revenue - a laundry list of fees and other items where the County can raise some revenue. It was decided that these ideas will be presented at the same time the goals are presented for approval in March, 1996. Chair Carey said that he does not want to increase user fees to finance County government. He feels there are probably some areas like EMS where the County is not collecting all it could from insurance payments. He said that there is a proposal to relieve the County from the responsibility of Medicaid and AFDC matching payments if the County is willing to take over the total responsibility of financing new schools. This idea is gaining momentum. This means that the State would no longer have to approve the construction plans for all new schools. Orange County is spending about $3 million on Medicaid and AFDC and receiving about one half million for school construction. PLANNING DEVELOPMENT AND LAND USE MANAGEMENT The commissioners reviewed the list of goals they have been using to guide land use planning and development. After discussion it was decided that the list of goals should be as follows: (A) Avoiding urban sprawl, (B) Preservation of protected watersheds and ground water resources, (C) Preservation of environmental, cultural and historical areas, (D) Encouraging bicycle and mass transit transportation in and between urbanizing areas, (E) Protection and preservation of farmland and open space, (F) Development of an appropriate mix of residential and non- residential (including commercial) development in Orange County, (G) Fiscally responsible development to the extent practical and (H) Promoting and encouraging the joint use of and co-location of school, community and recreational uses and programs. It was decided that "Principles of sustainable development" would be a topic for a future work session with the objective being to reaffirm the Board's Sustainable Development principles and to discuss fiscally responsible development. Commissioner Gordon said that being fiscally responsible means to take account of the fiscal impacts of development where appropriate. Sometimes it costs the County money when development occurs, and the charging of impact fees to finance school construction is one example of being fiscally responsible. With reference to comments made by the Carrboro Board of Aldermen, the Board decided to have staff offer to explain to them and also to the Chapel Hill Town Council members the County's Flexible Development proposal. With reference to the Economic Development Districts (EDD's), three have been approved and a fourth on the south side of Buckhorn Road will be presented for public comments in February. A brief update was presented on the County's solid waste options. Public Works Director Wilbert McAdoo gave this report. All this information is in a written report in the permanent agenda file. He explained the options for solid waste collection in unincorporated Orange County as listed below: 1. continue to offer services as currently provided, 2. convert existing solid waste convenience centers to utilize the 40 yard compactor/collector center model, 3. license all private haulers providing residential waste collection 4. franchise collection of residential waste for the unincorporated area of Orange County to a large private hauler 5. franchise all of unincorporated Orange County to current rural private haulers for service, and 6. Orange County could provide universal rural residential collection to all rural County residents (eliminate all SWCCs) Wilbert McAdoo also explained the alternative financing options as listed below: 1. Pay-per-throw-svstem - there are two basic methods for implementing this system - one based on volume and one based on weight 2. Volume-based - residents are charged for waste collection according to volume generated which can be determined by number and variable, size or cans placed for collection or by use of special trash bags 3. Weight-based svstem - Household waste is weighed at the point of collection and the resident is billed for service per pound of refuse he/she sets out for collection 4. Household or User Fee - each household is charged a flat fee for Solid Waste Collection and disposal cost. Each resident would be charged the same fee regardless of the amount of trash generated 5. Property taxes - historically property taxes have been the method of financing used for Solid Waste Collection. All County property owners pay for household waste collection and disposal based on their property value and not the amount of waste they generate. 6. Combination of any of the above options. Consider availability fee plus incentive based fees Wilbert McAdoo gave cost figures for annual household cost for full- cost recovery, pay-per-throw for full cost recovery and pay-per-throw for disposal cost recovery for six interim sites and six permanent sites. He showed on a map the number of households per township. Most of the density was in and around municipalities. The lower densities were in the northern rural areas. Commissioner Willhoit noted that there are 624 miles of roads with an average of 24.7 households per mile. If they consider franchising, they would need to figure out a way to balance the number of households per road mile per area. The most attractive system is where everyone is bought in, where it is not optional. This would reduce the incentive to dispose of solid waste by burying and would be more equitable because everyone would receive the same service. As development increases, the density would increase and be more attractive to haulers. He asked that the Board indicate which option they support so they can let Weston Consulting know which one to study further. He would like for this to be a timely process with enough time to take it out to the citizens in the County for their input. He favors the universal collection option. This will take all entities agreeing. Weston does recommend that even under the universal system, there would be two recycling centers. There are also options on how to dispose of white goods. The Board discussed at length the different options focusing on which one they want to recommend to the Landfill Owners Group. In answer to a question from Commissioner Gordon, John Link indicated that specifications would be developed and private haulers would be requested to submit a bid. They would come up with zones so each private hauler would have approximately the same number of households. A truly integrated plan would mean that Orange County as well as private haulers would need to purchase new trucks. Commissioner Willhoit said that with a universal collection system, the towns could have the same system and hire additional personnel to bring the containers from the back of the property to the front if they don't want to go with curbside collection. The Board agreed that public information sessions on the Universal system and especially the financing of this system should be held in January. After these public information sessions, the Board of County Commissioners will again consider this item for a decision which will be forwarded to the LOG. Chair Carey and Commissioners Crowther, Halkiotis and Willhoit said they supported the universal system for solid waste. Commissioner Gordon said she would withhold her decision until after the public meetings. Commissioner Halkiotis asked that the County consider an ordinance against burning in the County. ISSUES FOR DISCUSSION With reference to "Equitable treatment of property owners in situations where land value may increase or decrease exclusively because of governmental action," Commissioner Gordon made several points. She noted that there has been some discussion at higher levels of government to require counties to compensate landowners when the County down zones property to protect the environment or for other reasons. A related issue is that property values usually increase when the County up zones. Perhaps the County could work out a system such that when the County up zones, some of the profit (the "planning gain") could be given to the people where there is down zoning. She believes this general topic of utilizing the "planning gain" from up zoning should be given further study. Commissioner Crowther stated that he would like to see some new initiatives behind Economic Development with emphasis on recruiting developers. Also, arts in the County should be considered an economic impact. He asked that there be a division in the Planning Department for resource conservation. This will give this area a higher profile. Planning Director Marvin Collins said that they have looked at this possibility and will look at it again. One reason they are giving it more emphasis is because of flexible development. Also, this division could include historic preservation and staff support for the Agricultural Board. John Link said that the GIS will be a great educational and functional tool for how a persons property can be developed. Commissioner Crowther mentioned he would like to see community planning instead of community maintenance. Soil and Water related areas could also move toward community maintenance. RECOGNITION OF GROUPS WHO MADE THE HOMESTEAD COMMUNITY CENTER PROJECT P(7 ~ ~ T RT .F A presentation of a plaque which will be placed in the center was presented to Mr. and Mrs. Preston Hogan of the Homestead Community Organization and to Ms. Jewel Altemueller of the Calavander Homemakers Extension Club. L U N C H SCHOOLS Chair Carey said that the School Construction Standards Committee seems to be focusing on storage space and teacher work space and not so much on square footage per student. They have no recommendations yet. John Link reviewed the current equity funding policies. The focus is on trying to appropriate funds either by reducing the district tax or keeping it the same. Commissioner Gordon said that it looks like equity has been achieved. She feels that the County needs a definition of equity. Commissioner Willhoit said that equity needs to be revisited. It may be necessary to increase the district tax to pay for startup cost for the new schools in the Chapel Hill-Carrboro School system. Chair Carey said that he thought equity was being achieved under the plus or minus five percent. It is a question of how this is implemented. John Link explained that the definition has been a moving target over the last four or five years. When the equity policies were implemented, there were State funds for the Career Ladder and energy, which have been deleted. The playing field has changed and the environment has changed and the County has not addressed the impact of these changes. The operating policy the Board has been pursing, in terms of the District Tax, has been to keep it as is and address increased allocations through the Countywide property tax. John Link said that because the needs of the Chapel Hill-Carrboro School system are much greater, the question becomes how to finance these needs. He does not envision a successful bond when Chapel Hill-Carrboro School system is the only system identifying needs. Geoffrey Gledhill said that it is clear that the District Tax is an operating expense tax but people in that system can vote to expand the use of the District Tax to include capital. Commissioner Crowther asked about the trend of expanding the use of schools for recreation, skill development, libraries, etc. He questioned if these should be separated out to emphasize that schools are being used for community uses other than education. Commissioner Willhoit suggested that the County could acquire land for the purpose of future school sites and in the interim use it for recreation purposes. Chair Carey made reference to the School Construction Standards Study Committee and said that there is a policy assumption that future schools will also be for community use. This is a decision that needs to be made in the planning stage. Commissioner Gordon said that there could be schools for the purpose of education and then schools that will also be used by the community. The Board decided to talk further on whether or not they want to change the purpose for the District Tax and present to the people for a vote. Commissioner Halkiotis asked for information on how schools are being used for daycare and after school programs from each school system. He would like to know how the facilities are being utilized now. He feels that schools should be designed with the community in mind. Chair Carey feels that all schools should provide some community space. Commissioner Gordon said she would like to talk about (1) how to pay for startup costs, (2) identification of future school sites, (3) allocation of recurring capital funds and (4) whether Orange County needs a school in Bingham Township. John Link will provide the present methods for paying for new schools. RESOLUTION SUPPORTING THE STATE'S EFFORT TO ADDRESS LOCAL SCHOOL FACILITY NEEDS Commissioner Crowther suggested adding another "Whereas" to address community use and it was decided not to do this. Chair Carey made reference to the 5th Whereas and suggested adding verbiage to indicate the total cumulative percentage over the last five years for student increase and note that expenditures and investments have far outsurpassed the County's revenues for this purpose. Commissioner Gordon suggested adding to the resolution verbiage which would recognize the County's effort in addressing capital needs. Commissioner Willhoit suggested adding to the resolution verbiage about the equivalent cents on the tax rate and the amount paid to debt service. He also expressed a concern that the recurring capital for Orange County schools may need to be adjusted because of year-round schools. He would like to look at this because the Board needs to recognize that there is an additional burden on recurring capital because of year-round school. He asked that a progress report be requested from the Chapel Hill-Carrboro School system. Also, Chair Carey would like a report on student projections from both school systems. It seems that the student projections for the Chapel Hill/Carrboro School system have not changed. However, the projections for Orange County schools are lower than expected. John Link will ask for this information for the January 29th joint meeting with the two school systems. Neil Pedersen, Superintendent for the Chapel Hill-Carrboro School system, said that the State Facilities Commission requires that all districts do a survey and issue a report by January 15. The Board of County Commissioners will be asked to approve the report giving it more credibility. The Commission will use a formula to estimate the cost of new facilities and renovating other facilities. This is for the purpose of compiling what the total needs are in the State. By consensus, the Board of County Commissioners approved the resolution as stated below: ORANGE COUNTY BOARD OF COMMISSIONERS A RESOLUTION SUPPORTING THE STATE'S EFFORT TO ADDRESS LOCAL SCHOOL FACILITY NEEDS WHEREAS, the North Carolina General Assembly established the School Capital Construction Study Commission to examine school construction needs and a broad range of related issues; and WHEREAS, the Board of County Commissioners in Orange County has issued nearly $84 million in debt over the past six years to build and renovate school facilities in Orange County; and WHEREAS, the Board of County Commissioners has appropriated over $12.6 million in pay-as-you-go funds from the County General Fund since 1990-91 to pay for school capital improvements; and WHEREAS, the Board of County Commissioners adopted in June 1993 a $750 impact fee on each new residential dwelling constructed in the County to help pay for school space for an increasing student population and the Board increased this fee effective July 1, 1995 for the Chapel Hill- Carrboro City School District to $1,500 per each new residential unit constructed; and WHEREAS, student population in Orange County continues to escalate with the Chapel Hill-Carrboro City Schools being one of the fastest growing school systems in the State with a total 25 percent increase in the number of students over the past five years. A total of over 2,200 new students have enrolled in both school systems between 1991 and 1995; and, WHEREAS, the Board of County Commissioners adopted in March 1995 a 10 point plan to address school facility concerns including reviewing the structure for setting impact fees, requesting that the municipalities located in Orange County incorporate future school sites into their land use plans, and that the schools consider implementing a multi-track year round school program; and WHEREAS, the Orange County Board of Commissioners has shown its commitment to education in the County, by appropriating a total of just over $35 million for school current expense, capital projects and debt service. If this appropriation were funded all by property tax, it would be equivalent to 73.6 cents per $100 of assessed valuation on the General Fund Property Tax Rate; and WHEREAS, the Schools have identified $61.1 million in additional capital needs for which funds are not available to address the increase in student population. NOW THEREFORE BE IT RESOLVED, that the Orange County Board of Commissioners supports the efforts of the School Capital Construction Study Commission and urges the Commission to support efforts at the State level to help address local school needs; that the Board of Commissioners urges the Commission to consider the relative effort already put forth by local governments in trying to meet the needs of the schools; and, that the Board of Commissioners ask the Study Commission especially to consider the impact on local governments, in areas such as Orange County, where the student population is outpacing tax base growth. This the 9th Day of December, 1995. BOARDS AND COMMISSIONS PRESENTATIONS Commissioner Gordon and Commissioner Crowther will review all the County boards and commissions and clarify their status as a task force, commission or board. The County Commissioners indicated they would like to review these boards and commissions to see if some need to be eliminated, consolidated or changed. Commissioner Halkiotis said he would like for the role of commissioners who serve on these boards and commissions to be redefined except for those which are mandated by law. Redefine it for communication and liaison instead of attending all meetings. He does not want to send a message that County Commissioners are not interested but that they will be kept informed and attend the meetings as necessary. The composition may need to be changed to reflect this new language of liaison. REPORTS FROM VARIOUS BOARDS AND COMMISSIONS BOARD OF HEALTH Beverly Foster, Chair of the Orange County Board of Health, summarized the conclusions from the community diagnosis analysis they conducted. The goal to increase the community involvement in this health assessment is being achieved. The final outcome of this process will be a large priority setting meeting next April. They are aware that this does not coincide with the budget cycle which means that priorities could emerge which need to be considered outside of the budget cycle. YOUTH SERVICES ADVISORY COMMISSION Sarah Wilbur, member of the Youth Services Advisory Commission, said that they have worked hard on continuing to improve the Community Based Alternatives assessment, evaluation and funding process for the youth of Orange County and to continue to develop strategies for more effectively addressing the needs of Orange County youth, both those who participate in CBA funded programs as well as the broader community of young people. She said that they plan to focus on communicating to the citizens what their programs accomplish. They have expanded their focus to include all youth and have created four action groups which will be working on a brochure about what they do, coordination, advocacy and a clearing house for youth. AGRICULTURAL DISTRICTS ADVISORY BOARD Dolly Hunter, Chair of the Agricultural Districts Advisory Board, reported that their Board has been involved with a number of educational and promotional activities this past year. They would like for the County to add one more tool to the opportunities for farm owners - - a voluntary system of transfer of development rights. She explained what this would involve noting that a lot would depend on the real estate market. Also, there is no benefit in a farmer being able to sell his development rights unless someone else is willing to buy them. The Agricultural Board would like to know if the County is willing to establish appropriate receiving areas where such development rights can be put because they do not want to spend a lot of time developing a system if there is no place to put development rights. Commissioner Willhoit said that, based on past experiences, he feels this would be a difficult system to promote under any circumstances. The problem is that he is not aware of any significant areas the County has that can be the receiving zone. In order to have higher densities, there must be municipal services. It would be complex to work out a system with a municipality. Pearson Stewart, member of the Agricultural Board, said that the opportunities for the farmer are worth the problem of working it out. The County Commissioners indicated they would like to have a report from Ted Abernathy, Economic Development Director, about the commercial aspect of TDR. Commissioner Halkiotis mentioned that there is a big need to extend the sewer lines in Efland because there may be some possibilities for development in that area. Geof Gledhill said that zoning districts would need to be created where density and use can only be changed by TDR. Dolly Hunter continued listing their goals and objectives for 1996-97. These include a request for the Board of County Commissioners to reduce property taxes for farmers through state or local legislation, pursue enabling legislation for use-value taxation penalty payments to be placed in a TDR fund and conduct a statistical survey that demonstrates "Preservation of Farmland Pays." Commissioner Willhoit asked for a report on how much the County receives from the use-value taxation penalty payments -- the three year payback when the property is no longer in farm use. EMS ADVISORY COUNCIL - RESOURCE COMMITTEE Commissioner Crowther made reference to a pilot program involving the use of Quick Response Vehicles and said that after three months in operation, a decision was made to expand and extend the pilot program through January, 1996. Indications suggest that the staffing pattern is working well, patient satisfaction is high and overall patient outcomes have not been compromised. A detailed report will be done the first part of 1996. RECREATION AND PARKS ADVISORY COUNCIL Loraine Parker, Chair of the Recreation and Parks Advisory Council, reported on their goals for 1996. They still do not have enough land for parks and not everyone in Orange County has a place to go and play. She asked that the Board of County Commissioners pursue parkland acquisition. She supports using school parks for afterhour activities and plans to negotiate with OWASA for parkland. Commissioner Halkiotis asked that Chair Carey write a letter to OWASA regarding parkland on Cane Creek. SOCIAL SERVICES BOARD Marti Pryor-Cook, Director of Social Services, made reference to the special meeting held on December 4 between the Board of County Commissioners and the Social Services Board where they talked about the impacts of welfare reform. She will put together an agenda item outlining the charge and composition of a group of stakeholders to serve on a task force to make recommendations to the Orange County Board of County Commissioners for implementing changes in public assistance and other human service programs. Commissioner Halkiotis emphasized the importance of County government hiring participants in the Work First initiative. In answer to a question from Commissioner Willhoit about the County departments setting up work experiences, Marti Pryor-Cook said that this is an important component of the program that must be accomplished through nonprofits, school systems and other government entities. John Link said that to achieve the changes expected from work first, the elected officials at the local level will need to involve other elected officials, churches and others in the community. He feels that what is produced in the future must be measured in outcomes and not process. The community work experience may not necessarily be a productive outcome. What is more important is for the Board of County Commissioners to define what they want local funds to go for and challenge others to produce the outcome. His fear is that with Work First, the same programs will be reworked with no change in the outcome. It is important that the Health Department and the Social Services Department are given the flexibility to move toward the desired outcome. However, it is important that elected officials set forth the expectations. Dan Reimer, Health Director, said that there is a direct relationship between welfare reform and health reform. They anticipate that when the block grants kick in and people are off of medical service coverage, that there will be an increase in demand for health department services. ECONOMIC DEVELOPMENT PLANNING/STRATEGY Commissioner Crowther asked that the Board talk about actively recruiting businesses to the area. Commissioner Halkiotis asked about the water discussions for the Buckhorn area. Ted Abernathy, Economic Development Director, said that they will talk about providing utilities to the Buckhorn area in February. With regards to Highway 70, nothing has happened since the zoning was changed. The water and sewer will come from Durham. In answer to a question, Ted Abernathy said that the price per acre for land in an Economic Development District is $25,000 to $65,000 an acre. With regards to recruitment, Ted Abernathy summarized what they do on a day-to-day basis. They do a lot of direct marketing through the mail and have made some trips to see people individually. At some point, they want to put everything on the Internet and E-mail. Commissioner Crowther asked to add as a goal the economic impact of the arts in Orange County. Chair Carey made reference to the possibility of there being a cultural exhibit on the Eno and asked Ted Abernathy to report back on the economic and cultural advantage of doing this. Commissioner Willhoit suggested having Occoneechi Day instead of Hog Day and in the future work toward having activities the entire week. OTHER ISSUES OF CONCERN Commissioner Crowther suggested relocating the Arts Commission from the Recreation and Parks Department to the Visitors Bureau. He said that there may be a matching grant which will help pay for the personnel they need to promote the arts in Orange County. Chair Carey questioned putting it under the Visitors Bureau and Commissioner Crowther said that Shelly Green has a background in the arts which could give the arts a higher profile/recognition. The Board asked that staff report back on this issue. Chair Carey made reference to a request from the Board of Directors of the Chapel Hill/Orange County Visitors Bureau to increase the Orange County Occupancy Tax to 20 and said that he supports this. He suggested that they use part of the proceeds to publish the brochure for the Arts Commission. AD JOURNME N T With no further items to discuss, Chair Carey adjourned the meeting at 3:53 p.m. The next regular meeting of the Board will be held on Tuesday, December 19, 1995 at the OWASA Community Meeting Room in Carrboro, North Carolina. Moses Carey, Jr., Chair Beverly A. Blythe, Clerk