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HomeMy WebLinkAboutMinutes - 20090526 APPROVED 8/18/2009 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS BUDGET PUBLIC HEARING May 26, 2009 The Orange County Board of Commissioners met on Thursday May 26, 2009 at 7:00 p.m. at the Southern Human Services Center in Chapel Hill, North Carolina. The purpose of this meeting was to hold a public hearing on the County Manager's Recommended 2009-20010 Budget. COUNTY COMMISSIONERS PRESENT: Chair Valerie Foushee and Commissioners Alice M. Gordon, Pam Hemminger, Barry Jacobs, Mike Nelson, Bernadette Pelissier, and Steve Yuhasz COUNTY COMMISSIONERS ABSENT: COUNTY STAFF PRESENT: County Manager Laura Blackmon, Assistant County Managers Willie Best and Gwen Harvey, and Clerk to the Board Donna S. Baker (All other staff members will be identified appropriately below) 1. Opening Remarks-Chair Foushee PUBLIC CHARGE: The Chair dispensed with the reading of the public charge. 2. Presentation of County Manager' Recommended FY 2009-10 Budget (PowerPoint Presentation) County Manager's Recommended 2009-10 Annual Operating Budget Presentation Southern Human Services Center, Chapel Hill Orange County, NC May 26, 2009 Milestones Achieved This Year • Property and sales tax collections remain on target to meet budget • County departments reduced budgets early in year to deal with anticipated State funding reductions and economic downturns • School funding was not reduced as a result of revenue losses o School Construction Impact Fees o Public School Building Funds o Lottery Proceeds • Completed eight new County Facilities o Animal Services facility located in Chapel Hill o Cedar Grove Park located at Northern Human Services Center in Hillsborough o Central Orange Senior Center and expansion of the SportsPlex in Hillsborough o Justice Facility, Main County Library, and Office Building located in downtown Hillsborough o Solid Waste Administration Building located in Chapel Hill o West 10 Park located in Efland/Buckhorn area • Nearing completion of Main County Library and Office Building located in downtown Hillsborough • Adopted the 2030 Comprehensive Plan which updates and expands the scope and policy direction of the 1981 County Land Use Plan Guiding Principles •Meets Board directives •Balances County's operating budget at revenue neutral tax rate •Funds local school districts at 48.1% of the County's General Fund •2001 Commissioner approved funding target for Schools •Allows for full year costs of operating new County facilities •Addresses County priorities such as providing safety net and implementing comprehensive plan Proposed Ad Valorem Tax Rate Effective July 1, 2009 •Recommended tax rate of 85.8 cents per$100 of assessed valuation •This is the rate that produces the same amount of property tax levy as budgeted in current year •Commonly referred to as revenue neutral property tax rate •Current year tax rate is 99.8 cents per$100 assessed valuation •One cent on property tax estimated to generate $1,505,352 How Will Revaluation and Recommended Tax Rate Impact Homeowners? - Example of Tax Bill Comparison Prior to Revaluation After Revaluation (Value Increase of 24%) Value of Property $241,000 $298,840 Tax Rate 0.998 0.858 Equals Tax Bill $2,405 $2,564 Difference $159 Current year Countywide tax rate is 99.8 cents per$100 valuation. Recommended Countywide tax rate effective July 1, 2009 is 85.8 cents per$100 valuation. This recommended rate reflects the County's revenue neutral ad valorem tax rate. $298,840 is the average value of all residential property in Orange County after the 2009 revaluation schedule of values is applied. Proposed Chapel Hill Carrboro City Schools District Tax Rate Effective July 1, 2009 •Recommended tax rate of 18.84 cents per$100 of assessed valuation •Represents revenue neutral property tax rate for District •Current year tax rate is 23 cents per$100 assessed valuation •Recommended tax rate will generate $18.7 million •In addition to monies district will receive from Countywide tax •One cent on district tax estimated to generate $993,725 Recommended General Fund Budget •Totals $177.6 million •Decrease of$5.4 million from original current year budget of$183 million •Represents 3 percent decrease from previous year original budget •Budget decreases mean everyone— schools, non-profit agencies, and county departments - receive less money next year than they received this year FY2009-10 General Fund Revenues Recommended Budget Totals $177,589,039 (graph) FY 2009-10 General Fund Appropriations Recommended Budget Totals $177,589,039 (graph) Recommended Funding for Chapel Hill Carrboro City and Orange County Schools •Total General Fund appropriation totals $85.4 million •These monies will fund day-to-day operations, repayment of school related debt, and capital •Appropriation equals 48.1 percent of total General Fund •Reflects $3.1 million decrease from current year General Fund appropriation •Equates to $3,096 per student for each of the 18,898 students in both districts for day-to-day operating funds •Reflects decrease of$104 per student compared to current year per pupil appropriation of $3,200 *In addition, Chapel Hill Carrboro City Schools will receive additional $18.7 million from special district tax Annual General Fund Per Pupil Appropriations Based on Historical Averages (graph) Additional Funding for Local Schools •In addition to the $85.4 million for operations, debt and capital, recommended budget allocates $1.7 million to fund non-mandated safety net initiatives for both school districts •School health nurses - $617,782 •School resource officers and social workers for Orange County Schools - $1,072,000 Funded County Initiatives •Funds full year operating costs of new facilities •Examples include parks, senior center, County Library, and Animal Services Facility •Allows for Board priorities •Provides safety net to assist those facing economic challenges such as job loss •Food, shelter and medical services •Covers increased costs of mandates and debt service •Funds repayment of School and County related debt •Total debt payments for FY 2009-10 = $25.7 million •Equivalent of 17.1 cents on tax rate •Continues financial support for Orange County Campus of Durham Technical Community College Examples of Recommended Changes in County Services 1. Library Services .Reduce hours at Main Library in Hillsborough .Close Cedar Grove and Carrboro McDougle Library .Reassign staff from those libraries to new Main Library 2. Solid Waste Convenience Centers .Reduce hours at all centers .Close Bradshaw Quarry Road center 3. Other Discontinued Programs • Refugee Health Assessment • HIV Community Testing • Wheels to Work • Recreation programs such as Community Theatre, Jazz and Gospel Festivals, and instructional classes 4. No employee pay increases recommended 5. Discontinued 401(k) program and day care match for County employees 6. No funding recommended for County vehicles or equipment 7. Organizational Changes 8. Staff reassignments 9. Leave vacant positions unfilled for 12 months 10. Discontinue employment of interns for special projects 11. Reduced travel, advertising and duplicating .During June 4 and 9 work sessions, Commissioners will discuss operational impacts of reducing tax rate below revenue neutral rate Public Hearings and Work Sessions (All Meetings Begin at 7:00 p.m.) Public Hearings May 21 Central Orange Senior Center, 203 Meadowlands Drive, Hillsborough May 26 Southern Human Services Center, Homestead Road, Chapel Hill Work Sessions May 28 Southern Human Services Center, Homestead Road, Chapel Hill June 4 Southern Human Services Center, Homestead Road, Chapel Hill June 9 Link Government Services Center, 200 South Cameron Street, Hillsborough Work Session/Adoption June 11 Link Government Services Center, 200 South Cameron Street, Hillsborough Final Adoption June 16 Southern Human Services Center, Homestead Road, Chapel Hill A copy of the County Manager' Recommended FY 2009-10 Budget can be found at the following website: http://www.co.orange.nc.us/budget/index.asp 3. Public Comment Tom Fenn is a parent of elementary school children and he voiced concerns about the 48.1 % funding for schools versus the 48.4% contributed last year. He asked why there was a decline. He said that these cuts affect their classroom teachers and their resources. He said that these are people whose morale is at an all-time low because of reduced pay from the State. He said that when the economy improves the teachers will take jobs in the private sector. He asked the Board of County Commissioners to re-consider the budget and the contribution to the schools. Mark Peters spoke on behalf of the CHCCS PTA Council. He is also now representing himself. He said that usually they come to the Board of County Commissioners asking for more resources. He said that he worries a lot about the next generation. He said that today one of his child's teachers got laid off and the State is looking at a $3-4billion loss and this will mean more lay-offs, etc. He would like to see the 48.4% funding for the schools this year. Anna Mercer-McLean said that she is speaking on behalf of the Community School for People Under Six. She said that a decision was made a year ago to place the Northside facility on a list of available property in Orange County. The CHCCS took the County up on this property to use for Elementary School #11. The Home and Community School has realized many goals and dreams over the past 38 years. It has graduated over 600 children to the public and private schools, received national accreditation for the last 15 years, and helped over 15 teachers receive associates and bachelor's degrees. She said that this school would be dislocated as a result of this decision. She said that this is not an Orange County agency, but it has served the County, the community, with pride and honor. It has partnered with Orange County for the More at Four program. It serves 80% subsidized families and 20% non- subsidized families under DSS and Smart Start. She respectfully requested the Board's support in extending the lease to June 2010 and providing funding in the amount of$150,000 to support the transition of 166 individuals who would be affected by this—57 children ages two months to five years old, 55 mothers, 36 dads, 15 teachers, and 3 administrative support staff. Christian Persico asked all that were here in support of the arts wing at Carrboro High School to stand. He said that he is personally here because of theater and there is not one in this school. He said that he has learned a lot of leadership skills doing theater and he has also learned how to work in a team in the theater realm. The arts wing is about all of the arts. The high school does not have an auditorium to practice anything in nor to perform in. He said that the high school needs this arts wing soon, which will create more opportunities for the students. Darien Lombardi spoke in support of the construction of the arts wing at Carrboro High School and the auditorium. He works in technical theater and there are issues such as no storage space, shows colliding with other high school performances since Carrboro High School has to use other venues, and denied opportunities with no arts wing. He said that this is a shovel-ready project. Elizabeth Welsby represented the Estes Hills PTA and SIT. She asked the County Commissioners to fund the CHCCS and Orange County schools at 48.4%. Nancy Jeannchild spoke in support of the CSFPU6. She works there. She said that Community School is a great childcare facility, but is also different and valuable. She said that this facility provides an opportunity for children to be exposed to other children from all socio- economic levels and backgrounds. Also, this is a program that evolves and it has partnered with Head Start, More at Four, and others. She asked the Board to consider these things as it makes choices for the budget. Gary Wallach has a sixth grader that will be going to Carrboro High. He said that they are pleading for more money for the CHCCS (like they have done in the past). He said that schools draw new people to their towns, which is good for economic development. As the educational structure is being slowly disassembled, a disservice to the students and to their families is being done. One of the primary reasons that the area has been named as one of the best places in America to live is the schools. He urged the Board to keep school funding at 48.4%. Glenn Bowles is an Orange County employee and the Chair of the Employees Relation Consortium. The Board of County Commissioners had already received the letter from the ERC and he read this letter into the record. Orange Coantg eMplOgg Ttations Consortium Post Office Box 8181 C � Hillsborough, NC 27278 Tel: 919 732-8181 E. II lbw Ms. Laura Blackmon Orange County Manager P. O. Box 8181 Hillsborough, North Carolina 27278 Subject: Orange County Employee Pay and Benefits. Dear Laura; The Employee Relations Consortium (ERC) is a group of appointed County employees representing the interests of our respective departments. ERC fosters effective employee relations by: ❑ Advocating for employee needs, ideas, and concerns, ❑ Encouraging and facilitating opportunities for community involvement and employee professional development, ❑ Sharing information with all County employees, and ❑ Providing input and promoting dialogue with management. Through our various committees and through active partnership with the Orange County Human Resources Department, the ERC has championed better employee education and awareness of our health care benefits. The results of our efforts have lowered Orange County health care costs to the point they have stayed under budget. We look forward to continuing our positive collaboration with Human Resources. With the ERC Mission in mind, we understand today's critical economic situation as it relates to County budgeting and the ERC aspires to work with management to address the current conditions affecting all of us. We understand budgeted County revenues are not meeting projections and state revenues are off. We appreciate the public commitment management has made to work to retain present employees and to avoid layoffs or furloughs. We also understand pay raises are not feasible. Please keep in mind that employee bills still have to be paid. We understand pay and benefits will not increase during the next budget year, but when the economy picks back up please do not forget the hardships many employees are facing today. When economic conditions improve, we trust that management will not only take into consideration these sacrifices but also inflation when considering any future employee pay and benefits. In summary, management, employees, and the ERC can continue to work together to reach consensus on County issues including the Archer Study that are mutually beneficial to all parties. Sincerely, The Members of the Employee Relations Consortium Deborah Gast is current president of CHCCS Association of Educators and she spoke in support of increasing the local budget for schools in Orange County from 48.1% to 48.4%. She said that this increase is necessary due to State budget cuts and to maintain the high quality of education that they have to come to know. Elliot Darrow is a sophomore at Carrboro High School. He spoke in support of the arts wing at Carrboro High School. He said that this wing is just an idea now, but everyone wants to make it a reality. He said that he came to Carrboro High School hoping to help build a drama department from the ground up. He said that Carrboro High School will be receiving far more freshmen next year, bringing it over the capacity of 800 students to 850 students or more. He said that the weight room has had to be converted into a band room, a CTE room into a chorus room, and a storage closet into a tech room. He said that it is a stretch to use these rooms as classrooms. He said that, with the proper facilities at Carrboro High School, this will be a school that the district can be proud of. He urged the County Commissioners to think about the overcrowding and the arts. He urged the County Commissioners to take steps to finish building the school. Matthew Browning is a sophomore at Carrboro High School. He spoke in support of the arts wing. He said that he is in drama and band, so he has a unique opinion on this. He said that there are many negative effects of not having an arts wing. He said that he wants to finish what was begun in 2007. Amy Martin-Jewett spoke in support of the Carrboro High School arts wing. She said that she is a mother and taxpayer and her youngest is a rising 71h grader at Culbreth. Her husband is a teacher's assistant to the special populations at Phillips Middle School. She said that her main concern is that her youngest son has Asperger's Disorder and will be going to Carrboro High School. She said that, for the first time, this year he has had access to the theater program at Culbreth and this has been the best year of his academic career. Participation in this program has helped him behaviorally, academically, and socially. She thinks that it is important that the school build this arts wing as soon as possible. Allen Spalt said that he has confidence in the Board of County Commissioners' ability to balance the budget but he is here tonight about the proposed closing of the branch libraries. He said that eliminating some small programs may not be a good cut. He said that the branch library in Carrboro is highly leveraged in a positive way. There have been lots of volunteer hours, private donations, and foundation grants for the library. He said that the hours are already too short and even a small reduction would be felt. He is outraged about plans to permanently close it and disperse the collection. He said that this is a slap in the face for those who have worked so hard to support the library. He said that also disturbing was the quote from the County Manager in the Carrboro Citizen: "If you want to do a branch library, you have to do it right." He said that the County has not yet done right by the Carrboro library. Its collection should be moved, but to a free-standing building in town. He said that library services are needed now more than ever. He asked the Board to reconsider. Julie Richardson spoke in support of the arts wing at Carrboro High School. She has three children in the CHCCS and she urged the County Commissioners to fully fund the schools in the manner that they have been in the past. She said that an arts wing is not a luxury but a necessity and a core facility of a standard high school. She said that the CHCCS Board voted to move this item to the funded CIP and that this will qualify for stimulus money. She presented a petition with almost 500 names that were in support of the arts wing at Carrboro High School. Jennifer Whitehead is a parent of a child that goes to the Community School for People Under 6. She said that this school is amazing and her son interacts with lower to middle-income kids each day, but they know all the parents, teachers, etc., and he is learning to read and spell at the age of three. She said that this school is asking for$150,000 to renovate the new site they are being asked to move to and to extend their lease until 2010 so that they can renovate their new location. Michael Barrow spoke in support of the arts wing at Carrboro High School. He said that theater in high school changed his life in the 80's when he almost dropped out of school. He said that he has worked in theater all of this life as a professional since then in New York. He said that five out of his 22 classmates in the technical theater class from Chapel Hill High School made it to Broadway. He said that he eventually moved back here after 9/11. His children are districted to go to Carrboro High School. He spoke about how theater is for the community. Vicky Berry spoke on behalf of her family and her property taxes. She said that she received a letter stating that their taxes would be raised 40%. She said that this is an astronomical increase and it is a burden. Amy Weiss said that she also moved here from New York after 9/11. She said that she and her husband have been looking for a place to raise their two children that has a good education and good libraries. Those are the main criteria. She said that one of the first places they visited was the Carrboro Library. She said that her kids use the library every week and weekend. They take advantage of many activities at the library. She asked the County Commissioners to save Carrboro Library. Mary Anne Gucciardi is a CHCCS parent. She said that this is a great time for capital projects because the interest rates are so low. She asked the County Commissioners to look at all of the capital projects with an open mind. She asked the County Commissioners to keep the funding for schools at 48.4%. Daphne Morrell spoke in support of the Carrboro Library staying open. She is concerned about the library collection. She has worked as a volunteer at the library and her family has been going there since it opened 14 years ago. She said that this is a great resource for the community. If this library closed, the closest library would be across town to Chapel Hill or in Hillsborough. Either way is a 20-minute drive. Krysia Lynes said that Orange County is made up of families and they use the schools and parks and the services of the county. She said that people think their taxes are going up because of the reassessment and that is not correct. She said that the County Commissioners should consider making sensible decisions and not decimate the services that everyone relies on. Carol Barrow asked how a school could be built without an auditorium. She said that not all students are athletes or academically gifted. She said that scholarships also go to arts students. Julian Lombardi said that Carrboro High School does not meet minimum State guidelines for new construction. He said that the originally planned but never built arts classrooms and auditorium are parts of what is considered a core facility for any high school. He said that Carrboro High School can be rightfully considered an incomplete high school building project. He said that the federal stimulus package provides $5.5 million in interest free loans for qualified school construction. He said that it is a great time for capital projects. He asked the County Commissioners to use these funds for the completion of the high school. Serena Fenton has a child at Carrboro High School that is into the arts and is a jock. She said that they still need an auditorium and the arts wing and not an arts-on-a-cart program. She said that there is no place for kids to gather, etc. The CHCCS has moved this project to the funding list. Joann Michell distributed a petition about the Efland Sewer rate increase. She said that the customers have been working together to express concerns about the rate increase and the inadequate system. There have been several meetings of homeowners of US 70, Ashwick, and Richmond Hills. She said that the residents need the Board of County Commissioners to address the system and its shortfalls. They realize that there will be a rate increase, but it should be reasonable and fair. The proposed increase will be the third highest in the State. The recommendation of the residents is to extend the time up to 20 years to cover the cost of financing the system through bonds, grants, and financial resources. The 213 customers cannot afford to pay for this. She read the concerns listed on the petition. Antonia Cortes spoke against the sewer rate increase. She said that her parents cannot afford these new rates. They live in a Habitat for Humanity community, her parents are living paycheck to paycheck, and it is very hard. She said that her community is together in this. She said that this is unfair and they cannot afford this increase. They have lived here for seven years and there has been no mention of the increase in that time. Virginia Sprague is a local business owner. She spoke on behalf of the Carrboro Branch Library. She uses the library for business research, computer usage, etc. She said that the community aspect of the library is very important. She said that there are many families that cannot afford books and access is very important. She said that the arts wing is also important, as well as the Efland Sewer. Earl McKee lives in the Caldwell community. He said that the situation facing the Orange County budget is not unique. He said that reductions in sales tax revenues and fees from the State should force the reduction in spending. He said that for many years cuts have not been a priority for Orange County officials. He said that increases in spending are almost to be expected here. He said that if an effort had been made over the past few decades to attract retail business to Orange County, he does not think that it would be facing this shortfall as projected in the proposed budget. He said that the short-sighted focus on limited business growth has caused Orange County to become over-dependent on residential property tax revenue to fund County operations. The recent proposal to ban drive-through windows in new business operations in the County is an example of this mindset, which must change in order to attract new companies in Orange County. The resulting tax base would provide relief for homeowners. He said that the Manager's Recommended Budget recommends a decrease in spending of$5.4 million, even though only six weeks ago, a revenue shortfall of$8 million was expected. He sees no reason why the Board should not reduce expenses by $8 million. He said that the additional spending cut of$2.6 million would allow the Board to reduce the tax rate from 85.8 cents to 84 cents. He believes that the County has reached a crossroads in which it must choose between funding any and all requests or provide for the needs of the residents of Orange County. Heidi Perry said that it is a tough year in Orange County. She said that priorities should be in education and in health, which includes schools, health, and libraries. She said that libraries serve the education and the mental health needs of a community. She made reference to the comment that opening the new library would not require the hiring of any new staff because they would be coming from the closed branch libraries. She finds this very misleading because it implies that there is no cost to the County. She said that there is a huge cost to the citizens of Carrboro and Cedar Grove. She said that closing two libraries should not even be on the table. Ben Judge is a student at Carrboro High School. He came from Chapel Hill High School where there was a beautiful auditorium and now he is at Carrboro High school with no auditorium and no arts wing. He is also in the band and there is no band room. The band program is growing and there is no storage and the band meets in the weight room. He pleaded that the County Commissioners consider the arts wing to be completed within the next few years. Jane Kerwin is a mother of four children in the CHCCS. She said that this is a tough budget year, and she understands that there will be cuts. She said that everyone needs to remember why people move to Chapel Hill —for the education. She said that her family moved here for the education. She said that if the education suffers, then this will affect the property values. She said that, at a minimum, the schools need the 48.4% funding. Michelle Laws said that she wonders how a social observer would record this history five years from now- the threats to take away the jobs, relying on the kindness of friends, closing the doors to our libraries, etc. She said that she is the first Vice-Chair of the Chapel Hill- Carrboro NAACP and the Co-Chair of the joint IMA NAACP Education Committee. She said that even though we are living in the worst of economic times, they must use judicious judgment when making a decision on how to create and balance this budget. She said that everyone is sharing the pain, but for some it is unbearable. She asked the County Commissioners to consider the least of the citizens and not accept any proposals that will cut after-school programs, the arts, and AVID instruction time. Barbara Brown is a board member of the CSFPU6 and a returning parent. She said that at one time this school was not acceptable but now it is one of the best preschools. She asked that the school be funded for the extension of the lease and to help with the renovation. Ben Lloyd is a former dairy farmer. He is still a farmer. All of the cows left the farm in 2002 because it was no longer profitable to produce milk. He said that for the past several days, he has been on a hay field on a 1967 tractor. He uses these old tractors on a 700-acre farm that he owns. The new tractors would be above his means. He said that these are tough times and no profit to be made anymore. He has heard the pleas tonight for schools and other school needs. He said that he has three sisters that are retired teachers and he used to sit on the Board of County Commissioners, where he supported the schools. He wants as much schools as the people in the County can afford to pay for. He said that the only place available for additional funds is from an increased property tax, and people in Orange County are hurting. He said that 5,000 people appealed their tax revaluations. Lifelong residents are moving out of Orange County because they cannot afford to pay their property tax. He said that Orange County is out of money. The County has even asked its employees to take a pay cut or take furloughs. He said that 50 years ago, Orange County was the dairy county of North Carolina with 120 active dairies and today there are only nine dairies. He said that property tax has become a major expense for the farmers in Orange County. He asked the Board to look closely, learn how to say no, learn how to allow the residents of the County to stay here and not be run out, and allow the farmers to continue to put food on the table. Sergio Verde spoke with a translator. He lives in the community of Richmond Hills in Efland. He said that the increase in the sewer is too much. He said that he does not use the water to water the lawn or wash the car. Maria Vasquez spoke with a translator and she lives in Richmond Hills. She is worried about her sewer rates. She has tried to use less water, but the rate has not decreased. She also has three kids and her husband has no job. She begs the County Commissioners to help the community and not raise the water rates. Lynne Bressler has a sophomore at Carrboro High. She said that the students, parents, and the Public School Foundation raised money last year and the music program purchased risers. The room that the chorus is now in was not meant to be a music room, so the door has to be taken off the hinges in order to move the risers. She said that there is a lack of cohesiveness in the vocal music program, and her son might be going to a private school because of this. The school needs dedicated classrooms for the arts. Gary Byrd asked that the County Commissioners reconsider the 48.1% funding level and fund the schools at 48.4%. He spoke on behalf of SIT. Polly Devarey said that she enjoys the Carrboro Branch Library and this library is only open 12% hours per week. She asked the County Commissioners not to close this library. Kristin Scott asked that the County Commissioners keep the Carrboro Library open. She said that her family uses the library all of the time. Jerry Christmas is a retired school teacher and he praised the kids from Carrboro High school. He asked the County Commissioners to build the arts wing. 4. Adjournment The meeting was adjourned at 9:05 PM. Valerie Foushee, Chair Donna S. Baker, CMC Clerk to the Board