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HomeMy WebLinkAboutMinutes - 19900611 APPROVED: 8-6-90 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS BUDGET WORK SESSIONS JUNE, 1990 JUNE 11, 1990 —The—Orange County Board of Commissioners met in Special Session at 9: 30 a.m. in the Food Lab of the Planning and Agricultural Building to discuss the Manager's recommended budget for 1990-91. BOARD MEMBERS PRESENT: Chairman Moses Carey, Jr. , and Commissioners John Hartwell and Shirley Marshall. BOARD MEMBERS ABSENT: Stephen Halkiotis and Don Willhoit STAFF PRESENT: County Manager John M. Link, Jr. , Assistant County Managers Albert Kittrell and Ellen Liston, Economic Development Director Ted Abernathy, Recreation and Parks Director Mary Anne Black, Clerk to the Board Beverly A. Blythe, Finance Director Ken Chavious, Public Works Director Wilbert McAdoo, Health Director Dan Reimer, County Engineer Paul Thames, Budget Administrator Rod Visser and Budget/Management Analyst Donna Wagner. NOTE: A COPY OF THE MANAGER'S RECOMMENDED BUDGET IS IN THE PERMANENT AGENDA FILE IN THE CLERK'S OFFICE. Rod Visser gave an overview of the expected revenues. He used transparencies to explain the rationale used in developing the budget, the new positions that are recommended and the guidelines used in making those decisions. He compared the 89-90 budget with the recommended 90-91. He reviewed the debt service requirements. He stated that each penny of tax generates $357,200. The expected expenditures total $46.4 million. The revenues include (1) current revenues 43.4 million, appropriation from Fund Balance .4 million, tax increase 2.0 million and interest from bonds . 6 million which totals 46.4 million. John Link updated the Board on what the State Senate is proposing to do to balance their own budget. This would cost the county $196, 000 that was anticipated in August. Commissioner Marshall asked that the County not increase taxes to help balance the State's budget. Discussion ensued on what the County could do to demonstrate to the State that this is an infringement on the County's authority. It was decided that reducing the fund balance could jeopardize the County's bond rating and that this should not be considered. Other alternatives for funding this $196,000 were discussed. There may also be cuts made to the school budgets which would cause them to either cut programs or staff or take the money from their fund balance for continuation of these particular programs. Rod Visser continued with the individual county department budgets highlighting any major changes or initiatives. The budgets that were reviewed were (1) Public Works, (2) Public Safety, (3) Health, (4) Agricultural Extension, (5) Recreation and Parks, (6) Social Services, (7) Commission for Women, (8) Child Support (9) Economic Development, and (10) Tax and Records. Commissioner Hartwell asked for an update on the Chamber of Commerce's bathroom project, and the progress made toward the $250,000 plan as well as the timing for the entire project. John Link will ask Mr. George Horton for an update on this project. With reference to education, John Link indicated that they tried to standardize the funding into different categories. With no further items to discuss, the meeting was adjourned. The next special meeting is scheduled for June 11, 1990 at 7:30 p.m. in the Food Lab at Agricultural Extension. JUNE 11. 1990 - 7: 30 P.M. The Orange County Board of Commissioner met in Special Session on June 11, 1990 at 7;30 p.m. in the Food Lab at Agricultural Extension for the purpose of holding a budget work session with the two school boards. BOARD MEMBERS PRESENT: Chairman Moses Carey, Jr. , and Commissioners Stephen Halkiotis, John Hartwell, Shirley E. Marshall and Don Willhoit. STAFF PRESENT: County Manager John M. Link, Jr. , Assistant County Managers Albert Kittrell and Ellen Liston, Recreation and Parks Director Mary Anne Black, Clerk to the Board Beverly A. Blythe, Budget Administrator Rod Visser, and Budget/Management Analyst Donna Wagner. CHAPEL HILL-CARRBORO SCHOOLS: Chair Sue Baker and Board Members Mary Bushnell, Douglas Breeden, Carolyn Horn and Ruth Royster. Dr. Gerry House, Superintendent. ORANGE COUNTY SCHOOLS: Chair Kay Singer, and Board Members Max Kennedy, Ralph Warren and Dave Haverland. Dr. Dan Lunsford, Superintendent. ORANGE COUNTY SCHOOLS Kay Singer emphasized the need for additional money for capital. The School Board had received requests for two million dollars which was cut to $984,000. The Manager has recommended $750,000 which will severely restrain the system. She also expressed concern about the recommendation for current expense stating that this amount will not allow them to increase any program. Dr. Dan Lunsford stated that the answers from Raleigh about the budget are not good. He specifically talked about the dropout rate and how the system focused on some particular things that have caused that rate to drop. They implemented some new recommendations which caused this rate to decline. They took a careful look at the problem and developed some solutions which have been beneficial. To help the system move forward that careful analysis needs to continue. Specific things are needed to deal with specific issues. Max Kennedy addressed the $750, 000 for capital indicating that this amount was to increase as inflation increased. School facilities show that they have not had the money to spend on these facilities. With reference to current expense he is not particularly interested in equal funding but is interested in adequate funding. CHAPEL HILL/CARRBORO SCHOOL SYSTEM Sue Baker stated that on behalf of the Board she was glad that they did have a continuation budget in 1989 -- 80% of the population agreed that they would have their taxes raised for education. She feels they must continue to look at the district tax as a way to support their need to go forward. She stated they would like to receive adequate funding to maintain the school buildings. Superintendent Gerry House talked about the rationale for putting the budget together. It is based on increased enrollment. The budget addresses the ongoing goal of the Board to better educate students. They are short $300,000 for the expansion budget. She talked about the change in the student population. They expect more non English speaking students and more kids who are not well prepared to enter the school system. The proposed budget does address the goal of better educating students. The expansion budget is an important part of the function of the school. They also have a need for additional equipment. They have gained 600 students over the last two years. Doug Breeden does not understand how there can be a community who wants to pay for education and not be able to tax themselves for doing that. He supports an increase in county taxes or an increase in the school tax. They have let the athletic facilities go to put the money in the classroom and now the athletic facilities need to be repaired. Chairman Moses Carey talked about the $750,000 and how that was determined. He feels that this needs to be reviewed. Commissioner Marshall noted that what was said was that if the County could increase the amount for capital to $750,000 for five years, that then this amount could be reduced. A big effort was made to bring the funding up to $750,000. This and some of the other long range funding issues need to be worked out over time. Sue Baker indicated this was the first year they asked for more than $750,000. Commissioner Willhoit stated the Capital Needs Task Force did recommend $750,000 for Capital. He feels that instead of agreeing to a certain amount or a formula that the whole process should be reviewed this coming year. There needs to be some set amount so that long range planning can be done. Commissioner Halkiotis asked members of both Boards if they talked with any of the representatives in Raleigh. If the prediction is true for the BEP it is going to put more pressure on everyone. Kay Singer stated her concern about the proposed eighty-six million dollar cut in the Basic Education Plan and also that they may have to cut from 14% to 7% in the Career Ladder program in one year instead of three. In most cases, the senators and representatives are supportive of this program. Dr. Lunsford stated that one item that would affect both systems is the cutback of the money for custodians and energy. This would then have to become the county's responsibility. If this happen, it will reduce their ability to fund the continuation budget. It is more difficult to have money taken away. Chairman Carey noted that these are infringements on funding and may be repeated for years to come. It is going to take some creative planning and hard work to deal with these funding cuts. With regard to equal funding, he will be asking the Board to consider a countywide district tax. He believes all children should benefit from the tax base in Orange County and would like for the public to speak on this matter. That will not solve any problems right now but it would give some direction to the two school systems. Mary Bushnell indicated they want to definitely be involved in that discussion. Ruth Royster expressed a concern about the tax base to draw upon for education. The children must be educated in order to expand the tax base. There is no better place to put tax money than for educating children. Commissioner Marshall stated that one of the things out of kilter is that all these needs have increased while the state and federal government have stepped back and looked at the County to make up the difference. Somehow the County has got to get the people to understand the situation and stand united against Raleigh. The County Commissioners are doing what they can and hope that the two school systems do what they can to support the Economic Development strategic plan. Chairman Carey stated that the state passes the burden down to the County level and then the County is forced to raise taxes. Commissioner Willhoit stated that this is a year when the County's tax base is not expanding. The dilemma is that there are two different groups -- one which has a district tax and one which does not. Discussion ensued on possible ways of making up the $196, 000 cut expected from the inventory reimbursement to the County. Option one was to cut every single budget by a fixed percentage. John Link does not recommend Option 1 because of the impact on some of the larger program budgets. Option 2 is to take this amount out of fund balance, and option 3 is to take $100,000 out of the fund balance and $20,000 out of contingency and the remainder out of the department budgets. Option 4 would be to add .55 to the tax rate to cover this amount. Commissioner Marshall questioned if departmental budgets could really be cut further and John Link indicated it would be the larger departments that would be cut. John Link explained that the eight percent fund balance is derived by using the formula that is most stringent. The LGC requires that the County show eight percent of last year audited budget which is a lower figure. Even though this figure may be lower, from the LGC's perspective it would still be eight percent. If this $196, 000 was taken from fund balance it would leave very little margin for error. He indicated he would review other alternatives. Discussion ensued on what the state is doing to the counties in expecting them to continue services but not providing the money. Commissioner Halkiotis suggested reviewing the new positions that are proposed to see if they can be cut or delayed. Commissioner Hartwell suggested taking some out of contingency. He suggested that the budget be adopted excluding this possible cut and if necessary, amend the budget at a later date. It was decided that other alternatives will be developed for further discussion. With no further discussion, Chairman Carey adjourned the meeting. The next Special Meeting will be held on June 12, 1990 at 1:00 in the Food Lab of the Planning and Agricultural Building in Hillsborough to further discuss the 1990-91 budget. JUNE 12 . 1990 The Orange County Board of Commissioners met in special session on June 12, 1990 at 1:00 p.m. in the Food Lab at the Planning and Agricultural Building to continue their discussion of the proposed 1990-91 budget. BOARD MEMBERS PRESENT: Chairman Moses Carey, Jr. , and Commissioners Stephen Halkiotis, John Hartwell and Shirley E. Marshall. BOARD MEMBER ABSENT: Commissioner Don Wilihoit. STAFF PRESENT: County Manager John M. Link, Jr. , Assistant County Managers Albert Kittrell and Ellen Liston, Clerk to the Board Beverly A. Blythe, Finance Director Ken Chavious, Budget Administrator Rod Visser and Budget/Management Analyst Donna Wagner. DSS BOARD Chris Nutter stated two needs and asked for an affirmation. She stated that the Department of Social Services needs four fulltime income maintenance workers -- not two. Also she asked for a Board policy daycare dollars from either the State of Federal Government be used first for daycare before county dollars. She asked that the Board publicly accept the JOBS program. Chris Nutter explained that in the budget the County Manager has recommended two fulltime permanent income maintenance workers and two temporary positions. Phil Cook, DSS Board Member, stated that he feels the next few months will show the need for these four fulltime permanent positions. He asked that all four be funded now. 93 Richard Smyth noted that there is also the question of temporary 4111 positions and the equity issue. He questioned the legality of hiring temporary persons and then moving them into fulltime positions. The entire workload is being looked at in DSS by using time and motion studies. The current data supports these four positions. The DSS Board feels they have the best DSS agency in the State and does not want it derailed. He stated that money is a problem affecting the entire state and every County is feeling it. He noted that the savings in hiring temporary personnel is lost in the training that must be done with new hires. The main point is that there is a statewide crisis in the income maintenance worker position that people need to be aware of. Chris Nutter indicated that the staff study done by the state indicated that they will need more income maintenance staff personnel. Marti Pryor-Cook, Director of Social Services stated that all counties will receive one audit each year in the Income Maintenance program. A point system has been established and there are penalties. With reference to the JOBS program, the plan is that this program be taken out of the departmental budget and be implemented throughout the year. As a convenience, they would appreciate it if the Board would approve the program as a whole. It would help preserve the integrity of the program and a schedule could be developed which will indicate when people will be hired. Chairman Carey indicated that the components of the JOBS program hav the Board's approval. The thing questioned is the funding as recommended this budget. Ms. Nutter stressed that the DSS Board want assurances that the program is being approved by the County Commissioners and that if it is not funded in the DSS budget but as a separate budget that this will not cause any delay because of having to come to the Board every few months for approval of these positions. John Link explained that he took a countywide perspective and tried to pursue some equity in recommending permanent positions. Temporary personnel will be used until a need can be established for permanent positions. In looking at the situation he feels that two of the positions should be permanent. He reviewed the data from the State Personnel Department which is using averages and 70% productivity rate. He feels that the workers will be more productive. The trends indicate that AFDC and Medicaid are on the increase and that the impact of this will mean that it will take more time to address each application that is received. He felt that the best recommendation was to provide funding for two permanent and two temporary positions. He also felt that Marti Cook should come back during the year and demonstrate that these positions are needed. There are eleven positions total. Requests for permanent authorization of JOBS positions can be placed on the consent agenda. Commissioner Marshall asked about the pay of temporary personnel who become permanent. John Link indicated that this could be addressed and adjustments made so they would not start at the beginning of the scale. 94 1111 It was the consensus of the Board to approve these four positions conceptually now, and to make them permanent as needed. The funding for daycare was discussed. It was the consensus of the Board to always use first the state monies and when they are exhausted to use County money for daycare and that the Department of Social Services shall have the responsibility for making that decision. JOCCA Gloria Williams, Executive Director, asked for an additional $2,500 to lease-purchase computer equipment. This would be a one time expenditure. The new system will meet Federal and State requirements and help with accountability. John Link's recommended budget included an approximate 15% increase in the JOCCA allocation over last year. Gloria Williams indicated that $4600 of the increase would be used for operations and $5, 000 would be used for automation. It was suggested that JOCCA talk with the bank about a two or three year loan for this equipment. The Board supported the purchase of new computers to improve service to clients and to save money. ORANGE ENTERPRISES Kathy Turner asked for an additional allocation. She explained that since Orange Enterprises is private non-profit, the County has dropped paying the utilities which has created a hardship on them. They plan to serve 97 people in 1990 which are either mentally retarded or developmentally disabled. The cost per client is more than they receive from the State causing a shortfall. Also, they have ten shelter employees who receive no subsidy from the State. The State has actually cut funds to Orange Enterprises. The Board indicated they would take this information into consideration when finalizing the budget allocation for Orange Enterprises. OCIM Reverend Curtis Tyler, President of OCIM, asked that the Board consider allocating additional monies for their family counseling program. It was decided that the possibility of this being funded under the JOBS Program would be investigated. The Board expressed their support of OCIM and what they do in the northern part of the County. TRIANGLE HOSPICE Mark Roundtree stated that Triangle Hospice requested $7,500 from Orange County and received nothing in the County's recommended budget. He explained :hat this is a method of care for those who have been given less than six months to live. The $7,500 would be used for indigent care. They provide the service regardless if the person can pay. 95 Mrs. Hardee spoke about her experience with the program during her husband's illness. The Board expressed their support of the importance of this program. The Board agreed to consider putting an amount, to be determined, into the budget for this program. ADOLESCENTS IN NEED Betty Compton explained that the program at A.L. Stanbeck and Stanback Middle School had been expanded. They want to continue the level of service as in the past. They requested $63,000 from the County. She indicated that the recommended appropriation of $60, 000 would make it impossible to continue the present level of service. She explained that the growth in student inquiries was in the 9th grade. Next year they should be able to evaluate the two groups who are high risk if they do not become pregnant. The demands are great and their service is needed. They would like to be able to do more but can not because of money constraints. KIDSCOPE Reference was made to the annual report. They have placed a lot of emphasis on educating the parents. This year they served 208 in educational workshops. They have had great response and been highly successful. They talked of the accomplishments of the program and what they plan for next year. ORANGE COUNTY WOMEN'S CENTER The Chair of the Women's Center asked the Board to review their application for funds. They requested $11,425 and the Manager has recommended $7, 000. Their request included monies for computer equipment which would be a one-time cost. They have estimated this cost to be $3, 600 and ask that the County allocate an additional $3, 000. They have doubled their services and would like to increase that figure if at all possible. Commissioner Marshall explained that while the Board understands the need for the computer equipment, the recommendation from the Commission for Women needs to be discussed before considering an additional allocation ORANGE ALTERNATIVE HOUSING. Margie Schofner and Keith Aldridge asked that the recommended budget be increased from $25, 000 to $50, 000. They explained that this corporation was formed after it was determined that the County and Towns were committed to low and moderate income housing. They have received a grant in the amount of $20,000 that was part of their budget. Last evening the Town of Chapel Hill made a commitment of $35, 000. They are asking that the County at least increase their allocation to $35,000. They expect to receive an allocation from Carrboro. Their Z. Smith Reynolds grant is contingent on this corporation being financially stable. John Link stated that there is $10,000 remaining in the appropriatior. this year for affordable housing which could be allocated to this Corporation. 96 ORTS COMMISSION Joan Cohen, Chair of the Arts Commission, distributed a directory of where to find Arts in Orange County. She talked about their expanded activities. They are able to grant 50% of the requests they receive. The Commission has applied for a challenge grant. The money they will need to match is $2,500. The Commissioners expressed their appreciation for what the Commission has done for the Arts in this County and indicated they would take this request under consideration. RECREATION AND PARK COMMISSION Susan Waldrop, Chair of RPAC, and Charles Burger, member of RPAC, expressed their concerns about the personnel portion of this budget. The most significant growth in any program is in the youth athletic program. It has grown 36% in one year. They have increased the use of volunteers by 94%. The Department has not kept pace with the demand for services. More specifically, ten years ago the department created a part-time position which is now full time temporary. Mary Anne Black asked that this position be made permanent but the request was denied. Last year the funding for Chapel Hill and Carrboro was increased by seven percent. This funding was increased again this year more than what the County Department was increased. RPAC requests that $4,400 be added to the budget for the athletic coordinator and that the budget for Chapel Hill and Carrboro be reviewed. Commissioner Marshall stated she was concerned about the amount of money 01 allocated for Chapel Hill and Carrboro and disappointed that the amount was ncreased. The County's Recreation and Parks Department is developing a fine program. Discussion ensued about reviewing the entire situation and the programs offered by each municipality and developing a plan with the other municipal systems that reflects equity. Chairman Carey stated that a superficial review of the programs was done but it was not inclusive which probably led to the increase in allocation for last year and this year. The County needs to look at a policy. He supports looking at this situation to determine if this County revenue sharing is the best system. John Link explained that in the past Chapel Hill and Carrboro had formulated formulas for county residents using the library and recreational facilities. Last year and this year the municipalities were told that recommended increases would be related to overall increases in the County's General Fund Budget. The Board agreed to consider cutting the allocations back to last years level for Chapel Hill and Carrboro and adding $4,400 to convert the fulltime temporary position to fulltime permanent. IIII