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HomeMy WebLinkAboutMinutes - 19880707s~ ,~. MINUTES ORANGE GOUNTY BOARD OF COMMISSIONERS SPECIAL MEETING JULY 7, 1988 The Orange County Board of Commissioners held a Special Meeting on July 7, 1988 at 7:30 p.m. in the courtroom of the old Post Office, Chapel Hill, North Carolina for the following purposes: 1. Adopt resolution authorizing submission of application for issuance of bonds to the Local Government Commission. 2. Hire Bond Counsel. 3. Make final decisions on amount and projects to be included in a bond issue. 4. Continuation items from the July S regular meeting. BOARD MEMBERS PRESENT: Chair Shirley E. Marshall and Commissioners Moses Carey, Jr., Stephen Halkiotis, John Hartwell and Don Willhoit. ATTORNEY PRESENT: Geoffrey Gledhill. STAFF PRESENT: County Manager John M. Link, Jr., Assistant County Managers William T. Laws and Albert Kittrell, Clerk to the Board Beverly A. Blythe and Finance Director Ellen Liston. The meeting was called to order by Chair Shirley E. Marshall. BOARD COMMENTS _-._ , ;. Commissioner Willhoit questioned verbiage on the Notice of Intent which ;; , made reference to the one million dollar water bonds which indicated in the purpose for residents of said County and one or more other public entities." =.=:.~~ Ellen Liston explained that it is possible that the County would not be the only one operating the water system and the bond counsel felt it important to Leave this option open. Geoffrey Gledhill further explained that the water could ultimately end up being transferred out of Orange County through OWASA or the City of Durham. If the reservoir was ever hooked up to the Hillsborough system, and because of the pipeline agreements that exist or could exist the water could move other places through public entities with OWASA being one and the City of Durham being another. At the present time there is a line that runs between OWASA and Hillsborough both ways and there could be in the future a line that runs between Hillsborough and Durham both ways. PUBLIC COMMENT Betty White, Vice President for public and Governmental Affairs for the Chapel Hill-Carrboro Chamber of Commerce read a position paper from the budget committee. The committee supports the proposed thirty million dollar bond issue but suggested that the funds be allocated to provide a larger amount for the schools because of the urgency of their needs. Twenty five million is recommended for the schools with Chapel Hill-Carrboro receiving fifteen million and Orange County ten million. Four million was suggested for county facilities for the Tax and Records Building and Southern Human Services Building and one million for reservoir land acquisition. i ~~~ With reference to increasing the amount of money for the schools, -- Commissioner Willhoit questioned the implication of the percentages of sales tax proceeds with the policies which aze now in place and asked where the pay- as-you-go monies that are earmarked for school capital would go if a larger amount for the bond was considered for the schools. He stated that if more of the County projects were shifted to the pay-as-you-go basis without changing the percentages going to school, capital, there may not be sufficient revenues to do the county projects. Manager John Link explained that it would shift the emphasis on the property tax. With the proposed 30 million bond the property tax increase of three cents would be made up of two cents for school bonds .and one cent for county projects. He pointed out that if more money did go to the schools and less for county projects that the county projects would then need to be funded on a pay-as-you-go basis which would mean that there would be a delay in doing these projects. Chair Marshall emphasized the importance of funding those projects that need to be done immediately to meet the needs of the schools. With a larger bond issue more of the pay-as-you-go monies would need to be used for debt service instead of continuing projects to meet the future needs of the schools. She stated that there will not be that much more money if it is all spent up front because a lot of the money is categorized from where it comes from and if there is less money spent on the bond issue there will be more money in capital reserve to meet the needs of the schools as the other projects are completed. Link explained that a significant amount of money would be available for school capital each year for funding on a pay-as-you-go basis. Specifically, in 1990 2.9 million, 1991 2.1 million, 1992 2.3 million and in 1993 2.6 million would be available for these projects. He explained that the proposed bond amount plus pay-as-you-go monies represents 76~ of what was requested by the schools and 74$ of the county projects requested. In answer to a question from Superintendent Gerry House about the proposals that were submitted by each school system which listed the projects to be funded by a bond issue; Chair Marshall explained that Orange Caunty Schools had prepared their request so that they would be tight as a drum at the end of five years and Chapel Hill Carrboro Schools went beyond the five year period. Commissioner Halkiotis immediate needs as well that those needs that are placed ahead of the pools needs of the schools a additional requirements on to be done for compliance. stated he realizes that the two school systems ha'v'e as the County and the Animal Shelter. He suggested not taken care of with the bond issue should be nd the pools postponed until the other construction e completed. The Basic Education Plan will place the teachers and space requirements that will need In answer to an inquiry from Commissioner Carey, Ellen Liston noted that fzom the point where the Notice of Intent is published no amounts may be increased but may be decreased. After the bond order is introduced, no changes may be made without beginning the process again with the Notice of w~~ Intent. Commissioner Willhoit expressed a desire to move ahead as quickly as possible to finalize the CIP and set up a committee to work with the Board to publicize and promote the bonds. Discussion ensued on the priorities set by the Citizens Task Force and the constraints and time limit they worked under at the tame. Motion was made by Commissioner Hartwell, seconded by Commissioner Carey to adopt the resolution as presented totaling thirty million dollars with 21 million for schools, eight million for public buildings and one million for water bonds. Gledhill suggested that the resolution be approved without the project detail and Commissioner Hartwell stated that the priorities are listed in the order he would approve and at was decided that the projects would be described in the resolution but no dollar amount would be given for each individual project . 5 MINUTE BREAK Commissianer Willhoit amended $22,000,000 for schools, $7,000,000 water bonds and eliminating specific county projects. This amendment was to amend the main motion. VOTE: UNANIMOUS. the motion changing the amounts to for public buildings and $1,000,000 for reference to the amounts as listed for seconded by Chair Marshall. The vote was VOTE ON THE MAIN MOTION: UNANIMOUS. A copy of the resolution as approved is an attachment to these minutes on pages 0 APPOINTMENTS The fallowing appointments were made: Chaff Hill Board of Adjustment - Raymond. Yang, Edward White and Kenneth Bagwell Chanel Hi11 Plann_i~ Board Julian Raney and Philip L.. Witt. ADJOURNMENT With no further items for consideration, Chair Marshall adjourned the meeting. The next regular meeting will be held on July 19, 1988 in the courtroom of the old Post Office, Chapel Hill, North Carolina. ._ 1 Shirley E. Marshall, Chair Beverly A. Blythe, Clerk -= ;r ;^ "i~v ~3. 'T 4,~ NORTH CAROLINA ORANGE COUNTY ORANGE COUNTY BOARD OE ---- COMMISSIONERS RESOLUTIDN WHEREAS fro wth in Orange County has been to continue to be- zs and is predicted great; and WHEREAS with the . gro wth there has been and continues to be an ever-increasing demand for local government se _ and rvices, WHEREAS present facilities owned b y Orange County are in- adequate to provide the space needed for the people necessary to deliver the demanded local government services; and WHEREAS the Oran a Count g Y Board of Education and the Hill-Carrboro Board Chapel of Education have formally requested fundin g from Orange County for school ~~acilities necessary to overcome.~qualit Y deficiencies, to eliminate present classroom overcra~ding and to meet future space needs in order to meet the demand on the school systems b ~ Placed Y growth iri Orange Count y: and ~. WHEREAS the Orange County Saard of Commissi oners has initiated, revie wed, received Public comment an and tentatively approved a Capital Improvement Program covering the 1 N~~ dive-year period from 1988 through 1993 (hereinafter ~. '~-~ the Capital Improvement Plan) in order to address the _~ facilities needs of the County and the two school sys- tems located in the County; and WHEREAS it is impractical to fund the facilities construction and improvements necessary to implement the Capital Im- provement Plan with "pay as we go" revenues generated wholly from the current. property taxes, current sales taxes and other current revenue available tv Orange County; and WHEREAS the Orange County Board of Commissioners proposes im- ,.s;~~ plementing the Capital Improvement Plan with the " proceeds of general obligation bonds and with annual _' proceeds of current property taxes, current sales taxe s and other current revenue; and ;: ' .` WHEREAS that portion of the Capital Improvement Plan proposed ' i~ to be implemented with the proceeds of general obliga- tion bonds ~is as follows: Schools -- `. Orange County Schools $ 9,000,000 Chapel Hi11/Carrboro Schools S13,Op0,D00 Subtotal $22,000,000 County -- Building Projects S 7,000,000 Subtotal $ 7,000,000 J - 2 . ~4~ .~ Water Resources Development -- Land Acquisition $ 1,000,000 -•~~ Subtotal $ 1,000,000 Total Bond Amount $3D,000,000; and WHEREAS it ~s the intent of the Orange County Board of Commis- sioners to seek approval of the voters of Orange County at the general election .to be held in Orange County on November 8, 1988 for Orange Gounty to issue general obligation bonds. IT IS RESOLVED THAT: . 1. Orange County intends, on November 8, 1988, to seek ap- proval of the voters of Orange County for Orange County to issue general obligation bonds totaling $30,000,000.00, as detailed above , in ~~ 2 ~. timely ba d ing June ;~. 3 :` order to implement the Capital Improvement Plan. Orange County has made all debt service payments on a sis as evidenced. by its audit reports for the years en-~• 30, 1987. According to Orange County's audit report for the fis- cal year ending June 30, 1987, its budgetary and fiscal manage- ~ -~ ment policies have been carried out in compliance with law. 4. In_order to meet the increase in debt service occa- sioned by the repayment of the proposed bonds entirely from proceeds of Orange County property taxes, it is estimated that a $.09 tax increase would be necessary. However, it is anticipated that only a $.031 tax increase will be necessary to meet the in- crease in debt service, with the balance taming principly from - 3 ~~~ ,.. sales tax revenues committed by the Orange County Board of Com- I :~~ missioners for that purpose. 5. The Clerk to the Berard of Commissioners shall publish, or approved by an or before July 15, 1988 - in a farm prepared by n e County's bond counsel, Orange County's "Native of Intent" Ora g to file an application with the Narth Carolina Local Government Commission for approval of the proposed bonds. r C 6. The Orange County Finance Director. shall prepare the a lication to the North Carolina Local Government Commission far Pp approval of the proposed bonds. ~7~ Coleman, Sernholz, Dickersari, Bernholz, Gledhill and Har rave is hereby authorized to employ the law firm of Broom g Wood, One World Trade Center, New York, New Yark to represent Orange County ~.in the authorization and the issuance of the ~'~~ , ..~ proposed bonds. U on motion duly made and seconded, the foregoing Resolution~~ P was adopted by the Board of Commissioners of Orange County this the 7th' day of July- 1988. ~ . Moses Carev- Stephen Ayes: Chair 5hirlev E. Marshall, ti. Halkiotis, John Hartwell- and Don Willhoit Noes: None - a It .._ j d f1 i i