HomeMy WebLinkAboutMinutes - 19930614 1
APPROVED 9117193 MINUTES
ORANGE COUNTY BOARD OF COMMISSIONERS
BUDGET WORK SESSION
JUNE 14, 1993
The Orange County Board of Commissioners met in Regular Session on June
14, 1993 for the purpose of holding a budget work session at 7:30 p.m. at the
Homestead Community Center in Chapel Hill, North Carolina.
COUNTY COMMISSIONERS PRESENT: Chair Moses Carey, Jr. , and Commissioners Alice
M. Gordon, Stephen H. Halkiotis, Verla C. Insko and Don Willhoit.
COUNTY STAFF PRESENT: County Manager John M. Link, Jr. , Assistant County
Managers Albert Kittrell and Rod Visser, Clerk to the Board Beverly A. Blythe,
Finance Director Ken Chavious, Budget and Management Analyst Donna Dean,
Personnel Director Elaine Holmes, and Budget Director Sally Kost.
PRESENTATION BY THE COUNTY MANAGER
John M. Link, Jr. presented highlights of the school budgets. He stated
that he was struck by the fact that citizens spoke to specific needs, programs
and functions at the two public hearings. Also, there were comments that he
was recommending or not recommending certain programs.
John Link gave a summary breakdown of the components of the funding
requests from both school systems and an analysis pertaining to some of the
considerations involved in developing the funding recommendations that would
address as much as possible of the schools' stated needs, balancing those
against the impact on Orange County taxpayers.
At the two public hearings held, some citizens spoke about recurring
school capital needs. John Link stated that the Orange County Capital Policy
has expired and he would encourage additional capital funding to come from
sales tax and not the property tax.
In answer to a question from Commissioner Insko, John Link stated that
the schools can ask that large roofing jobs be placed in the CIP.
Commissioner Insko noted that it is hard to compare the additional
continuation requests for each school system because they use different ways
of figuring this. This may be an issue for the School Issues Task Force to
discuss.
In answer to a question from Commissioner Willhoit, John Link explained
that there is no way of knowing if the fund balance was used and if it was
used on continuation or base budget.
Commissioner Gordon would like for the Board of County Commissioners and
the two school boards to decide on goals for class size, teacher supplements,
square foot per child, etc. Until that is accomplished, there are no
benchmarks for comparison. She agrees that funding needs to be increased for
the schools but is not sure by how much.
Chair Carey stated he feels it is important to talk and set priorities
and it is important for the Board and the public to understand these goals and
priorities.
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PRESENTATION FROM THE ORANGE COUNTY SCHOOLS
Dr. Andrew Overstreet made reference to the school budget document and
noted that there is a need to address the $270,000 shortfall from last year.
This was money they took from their fund balance to fund their budget for this
year as directed by the County. This money was spent for recurring capital
because there were no other funds. They consider as their base budget 6.8
million.
John Link stated that a decision needs to be made on what amount the
County wants each school system to keep in their fund balance and the amount
they can go beyond that figure. Also, a decision needs to be made on what
should be included in the expansion and continuation budgets and if everything
that is termed continuation should be automatically funded.
Commissioner Halkiotis expressed a concern with the amount of the utility
budgets for each system -- $800, 000 for Orange County and 1.2 million for
Chapel Hill/Carrboro.
Dr. Overstreet made reference to the salary study and noted that in the
local equity funding category on page seven there is a 10% salary supplement
increase. It was pointed out that 80% of the supplements in Chapel Hill are
paid from the district tax. Orange County teachers receive supplements of
either 5 or 6% and Chapel Hill/Carrboro teachers receive supplements starting
at 1% and going as high as 25%.
Commissioner Willhoit stated that they should look at merger and not
increase the disparity between the supplements.
Commissioner Willhoit suggested that he is in favor of increasing money
for supplements when the two systems get together and agree on a similar
schedule.
Kay Singer, County School Board member, stated that they don't have the
tax base in the Orange County system to have a district tax.
Commissioner Gordon stated that the only way to move toward equity is to
define equity.
CHAPEL HILL/CARRBORO SCHOOLS
Mary Bushnell stated that she hopes that the Board of Commissioners can
find a way to increase her system's portion of the budget. They will increase
their efforts to find outside funding. They plan to implement a volunteer
effort and will be pursuing Communities in Schools Program. It has been
proven that we need to do a better job with the young children at the very
beginning.
Superintendent Neil Pedersen highlighted items from their continuation
and additional continuation budget. He noted that with regard to their fund
balance, they appropriated $750, 000 for next years budget. The additional
continuation budget is driven by the 6.3% increase in enrollment or 430 new
students expected next year. He questioned if the $336, 500 for middle school
start-up costs should be paid from capital or the operating budget. The
expansion budget totals $490, 665 which includes a violence prevention program,
drug intervention program and staff development. They have included in their
budget what they expect to receive from the State.
It was suggested that the fund balance be used to fund one-time items
like the new school start-up costs.
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It was pointed out that the tax base is 68% Chapel Hill/Carrboro Schools
and 32% Orange County Schools.
Commissioner Halkiotis feels that the two superintendents and the manager
should meet and resolve some of the questions stated above as well as
consolidating other services. Unless the confidence of the citizenry is
regained, the County will never pass another bond issue. Both systems need
to have their energy costs analyzed in an effort to cut expenses.
Chair Carey made reference to the Resource Allocation Study that was done
by Mecklenburg County. This study led to a greater understanding by the
public on spending of school funds. He encouraged both superintendents to
work with the Chamber of Commerce on this.
In answer to a question from Commissioner Gordon, Ralph Warren indicated
that the Board of Education vote on the impact fee proposal was some for and
some against.
Chair Carey adjourned the meeting at 10:25. The next budget work session
will be held on June 15, 1993 at 7:30 at the Homestead Community Center in
Chapel Hill, North Carolina.
Moses Carey, Jr. , Chair
Beverly A. Blythe, Clerk