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HomeMy WebLinkAboutMinutes - 19980609APPROVED 11/17/98 ORANGE COUNTY BOARD OF COMMISSIONER BUDGET WORK SESSION JUNE 9, 1998 MINUTES The Orange County Board of Commissioners met on Tuesday, June 9, 1998 at 7:30 p.m. in the new Southern Human Services Center, Homestead Road, Chapel Hill, North Carolina, for the purpose of holding a Work Session on the proposed 1998-1999 budget. ORANGE COUNTY COMMISSIONERS PRESENT: Chair Margaret W. Brown, and members Moses Carey, Jr., William L. Crowther, Alice M. Gordon, and Stephen H. Halkiotis. STAFF PRESENT: County Manager John Link, Deputy Clerk to the Board Kathy Baker, Assistant County Managers Rod Visser and Albert Kittrell. Other staff will be identified as required. PUBLIC CHARGE Chair Brown dispensed with the reading of the Public Charge. OPENING REMARKS FROM THE CHAIR Chair Margaret Brown convened the meeting and welcomed those in attendance. She then turned the meeting over to County Manager John M. Link, Jr., to give a brief presentation on the recommended budget. PRESENTATION OF BUDGET: County Manager Link reviewed the highlights of the 1998 -1999 proposed budget totaling $93,035,893.. He indicated that it contained sufficient resources to meet the needs of our citizens as well as providing funding for a quality education for our children. This recommended budget addresses the growing need for additional staff to assure that Orange County citizens receive the services that they need in a timely and professional manner. Also addressed by this proposed budget is funding for upkeep-and operations of county facilities and a competitive compensation plan. He mentioned that some additional highlights of the budget include a $151.00 increase in the per pupil allocation. This is an increase in the per pupil allocation from $1,889 to $2,040. The Orange County School System's share of the total current expense appropriation of $30.4 million is $12,911,60. The Chapel Hill-Carrboro City School System share is $17,511.30. The overall current expense appropriation represents an increase over the 1997-1998 budget of $3.2 million. This 11.9% increase exceeds the average yearly increase approved by the Board of Commissioners over the past ten years. The General Fund property tax would be established at 91.05 cents per $100 of assessed valuation. This represents a 3.75-cent increase over the current rate of 87.3 cents. The Chapel Hill Carrboro City Schools district tax rate would be maintained at 17.9 cents with projected revenues from this source of $7,660,642. A copy of the proposed 1998-1999 Orange County budget, in its entirety, is in the Clerk's office. He then turned his attention to the recommended school budgets. He mentioned that County staff had determined that approximately $500,000 of the Chapel Hill Carrboro City School's continuation budget could more accurately be called expansion. He indicated that 2 the recommended Manager's Budget included 94% of the total Chapel Hill Carrboro City Schools submitted budget request. He felt that in future years discussion regarding major initiatives for both school systems should begin much earlier in the fiscal year. The Board of County Commissioners would be alerted to potential fiscal impacts and this would allow for dialogue regarding the timing and the proportion of that impact. It would also give the County staff additional time for analysis of these requests. CHAPEL HILL CARRBORO CITY SCHOOLS: Chair Nick Didow distributed a packet of information from Superintendent Pedersen dated June 8, 1998. He indicated that overall they have had a very good year in their school system. They continue to see success in their proficiency ratings for both math and reading. He referred to the Gordon Black survey results which compiles comments from students regarding many aspects of their educational year. They also reported on other key stake holders including teachers, staff members and parents. He mentioned that they continue to see a rise in the grades that parents are giving the schools in their formal evaluations. Other indicators are also rising, including end-of-grade tests, and SAT scores. Their alternative school opened this year with 12 students and it has been very well received by parents and students. Finally, he mentioned that the Southern Village school is a model school which is getting inquiries from around the world. Both of their recent building projects came in under budget and they are moving ahead with the upgrading of older schools and converting some of those school's heating/cooling units to gas which will show a considerable savings in the coming years. They are also continuing to expand their a-mail system. The Fund Balance will .improve from 2.1 % in this fiscal year to 5.4% at the end of next year. They have accomplished this through a number of cost cutting measures, including bringing to an end the funding of the Outreach Program which had evolved into a large non-profit. The school system will fund only its Head Start Program. Finally, Child Nutrition Services will break even this year for the first time. He mentioned that they were particularly proud of the fact that over 90% of this year's graduates are enrolled in higher education for the coming year. He then asked the Superintendent to discuss the particulars of their proposed Budget. They are: 1) Fully implement proficiency standards by June 1999. 2) Focus on providing services for exceptional/autistic/gifted and 3) Complete the Elementary School at Southern Village 4) Complete East Chapel Hill High School 5) Continue to Support a Professional Work Place ESL students They have requested an increase of $3.2 million dollars and the County Manger has recommended only $2.5 million of that be approved. The Superintendent has recommended that $100,000 be set aside for contingency funds to cover any difference created by unanticipated charter school enrollments. That would still leave the school system with a shortfall of $600,000. He explained that their request for funds is being driven by instructional programs and services. They intend to decrease class size, open a new school, increase staff support in the counseling divisions, add reading teachers, enlarge the alternative school and offer more summer school programs. They have many critical needs which must be met, including adding additional nurses, serving the 504 who have Attention Deficient Disorder, Superintendent Pedersen indicated that they have identified five priorities for the year. Y 3 dealing with the issue of depression among disabled students, and transporting athletes in the new, larger buses being required by the State. He then turned his attention to the need for professional staff development and training. They must not only provide training and development they must also keep salaries competitive. There is a need for additional substitute teachers and a new budget analyst. The School Board Policy Manual is also on tract to be revised. He acknowledged that they understand the Manager's explanation of his recommendation; however, he felt compelled to request that their entire budget be funded. A copy of the materials distributed are in the permanent agenda file in the Clerk's office. QUESTIONS AND COMMENTS FROM THE BOARD OF COMMISSIONERS: Commissioner Crowther asked about the feasibility of having the State take over the administration of the Hospital School. Mr. Pedersen indicated that he had mixed feelings about this; however he ultimately felt that it is one of their schools and a much better one because of it belonging to the larger school system. He felt that it should remain a part of this school system. Commissioner Carey asked for statistics on the proficiency standards for African American students. Superintendent Pedersen indicated that he could not quote a figure but that group is proficient along with the rest of the school. Commissioner Carey asked that the teacher's supplement be compared to other schools in the state. Superintendent Pedersen agreed to do that and to share that information with the Board of County Commissioners. ORANGE COUNTY SCHOOL SYSTEM: Superintendent Randy Bridges indicated that he felt very fortunate to be involved with a school system which received such a high level of funding support. He presented a brief report on the Orange County School System. They are committed to safe schools, hiring and training quality employees, and continuous improvement of the educational opportunities provided to students. He reported that their ABC results from 1996-1997 include seven schools meeting expected academic growth; four schools receiving exemplary status and one school being recognized as a Top 25 School. Orange High has increased SAT scores by 52% and reached 100% proficiency in Chemistry, Physics and Geometry. He reviewed other proficiency standards, including 99.1 % -- Algebra II and 88.6% -- ELP. He mentioned several staff highlights including two National Board Certification Teachers, one 1997 Presidential Award For Excellence in Mathematics and Science and a lower teacher/student ratio. He pointed out that mandates and inflation account for over $900,000 of their expansion requests. A copy of the materials distributed are in the permanent agenda file in the Clerk's office. QUESTIONS AND COMMENTS FROM THE BOARD OF COMMISSIONERS AND SCHOOL BOARD MEMBERS: Commissioner Gordon asked Superintendent Bridges to comment on the possible use of their Fund Balance to pay for expansion items. Superintendent Bridges indicated that they would be willing to use their Fund Balance as long as an agreement can be reached with the Board of County Commissioners. The Orange County School Board and administration would need to be assured that the Board of County Commissioners will come to their financial aid should the need arise. r 4 There was discussion regarding the official Local Government Commission (LGC) recommendation regarding fund balances. Finance Director Ken Chavious indicated that the LGC recommends an 8% fund balance for counties and cities because they rely heavily on property taxes which are paid in December. The LGC knows that causes a need for additional funds in the early months of the year. The school systems do not have similar cash flow issues with the exception of the District Tax. The LGC does not have a recommended fund balance amount for school systems. School Board Member Dovenbarger indicated that she is willing to spend the fund balance if the County is willing to provide financial support if it were to be needed. However, she stated that she did not agree to spending it on recurring items. Those need to be funded by the county. Everything that the School Board is recommending in this budget is a priority and needs to be funded. County Manager John Link indicated that with regard to funding for Charter School students, it would be an excellent use of the fund balance to handle any unexpected loss due to increased enrollment in the Charter Schools. He suggested that fund balance be used to cover the unexpected enrollment and in the following year the county would address that student population loss in the funding process. Commissioner Halkiotis asked the County Manager to request that year-end reports and Executive Summaries be sent to the Board of County Commissioners from each of the Charter Schools. School Board Member Dovenbarger suggested that the School Board members lobby the State for direction regarding this issue of funding for students who leave the school system after the budget process has been complete. Commissioner Halkiotis asked that a joint letter be sent to the Legislature from the Board of County Commissioners and the School Boards asking them to address the issue of automobiles confiscated because of DWI convictions. This is causing a problem and costing the school systems money. ADJOURNMENT: A motion was made by Commissioner Halkiotis, seconded by Commissioner Carey, to adjourn the meeting. The next regular meeting of this Board of County Commissioners will beheld on Wednesday, June 10, 1998 at the new Southern Human Services Center, Homestead Road, Chapel Hill, North Carolina. Margaret W. Brown, Chair Kathy Baker, Deputy Clerk