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HomeMy WebLinkAboutMinutes 05-20-2010 APPROVED 8/17/2010 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS BUDGET PUBLIC HEARING May 20, 2010 The Orange County Board of Commissioners met on Thursday May 20, 2010 at 7:00 p.m. at Department of Social Services, Hillsborough Commons in Hillsborough, North Carolina. The purpose of this meeting was to hold a public hearing on the County Manager's Recommended 2010-2011 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 Frank Clifton, Assistant County Managers Willie Best and Gwen Harvey and Clerk to the Board Donna S. Baker (All other staff inembers will be identified appropriately below) 1. Openinq Remarks-Chair Foushee Chair Foushee welcomed everyone and called the meeting to order. PUBLIC CHARGE The Chair dispensed with the reading of the public charge. 2. Presentation of County Manaqer' Recommended FY 2010-11 Budqet (PowerPoint Presentation) Financial Services Director Clarence Grier made the PowerPoint presentation. A copy of the County Manager' Recommended FY 2010-11 Budget can be found at the following website: County Manager's Recommended 2010-11 Annual Operating Budget Presentation Department of Social Services Hillsborough Commons Orange County, NC May 20, 2010 Recommended General Fund Budget ❑Totals $174.9 million ■Decrease of $2.7 million from original current year budget of $177.6 million. Represents an $8.9 million decrease from the current year amended budget. ■Represents 1.5 percent decrease from previous year original budget. ❑Budget decreases means everyone — schools, non-profit agencies, and county departments - receive less money next year than they received this year Guiding Principles ■Meets Board directives ❑Balances County's operating budget without a property tax rate increase ❑Fund local school districts at 48.1% of the County's General Fund Proposed Ad Valorem Tax Rate Effective July 1, 2010 ❑Recommended tax rate of 85.8 cents per$100 of assessed valuation ■This is the rate that produces $132 million in property tax revenues for FY2010-11 ■Overall Property valuation increased 1.1% ❑One cent on property tax estimated to generate $1,521,612 FY 2010-11 General Fund Revenues Total Property Taxes.............................. $ 132,047,738 Sales Taxes................................. 14,463,000 Intergovernmental Revenues.............. 16,250,267 Charges for Services....................... 9,650,631 Licenses and Permits...................... 313,000 Investment Earnings........................ 140,000 Miscellaneous............................... 726,384 Transfers..................................... 1,321,227 TOTAL....................................... $ 175,912,247 Revenues by Source (chart) Property Taxes as a Percentage of General Fund Revenues (2006-2010 table) Sales Tax Revenues ❑Recommended Sales Tax Revenues of $14.4 million is 14.3% less than the $16.8 million budgeted in 2009-10 ■Actual sales tax revenues are down over 30% since the peak of $22.5 million in fiscal 2007-08 ■The Medicaid - Sales Tax swap will limit future growth of Sales Tax Revenues Proposed Chapel Hill Carrboro City Schools District Tax Rate Effective July 1, 2010 ❑Recommended tax rate of 18.84 cents per$100 of assessed valuation ■Represents no increase in the District tax rate ❑Recommended tax rate will generate $18.6 million ■In addition to funds district will receive from Countywide property taxes ❑One cent on district tax estimated to generate $987,247 Recommended Funding for Chapel Hill Carrboro City and Orange County Schools ❑Total General Fund appropriation totals $84.1 million ■These funds will fund day-to-day operations, repayment of school related debt, and capital ■Appropriation equals 48.1 percent of total General Fund ■Reflects $1.3 million decrease from current year General Fund appropriation ■Funds the projected additional 279 students for both districts ■Equates to $3,096 per student for each of the 19,177 students in both districts for day- to-day operating funds ■Maintains Recurring Capital at$3 million ■Maintains Fair Funding at$988,000 ■Decreases the combined long range capital (pay-as-you go) by $1.7 million dollars for the school districts Additional Funding for Local Schools ❑In addition to the $84.1 million for operations, debt and capital, recommended budget allocates $1.8 million to fund non-mandated safety net initiatives for both school districts. Some of these initiatives are: ■School Health Nurses - $610,729, a decrease of 7,003 ■School Resource Officers - $531,255, an increase of$31,000. ■School Social Workers - $642,374, the same funding as the current year Funded County Initiatives ❑Major Changes in Services .General Government .Realignment and reassignment of employees with the County Manager Office .Elimination of County switchboard operation (relocation of staff) .Ending the custodial contract with Orange Enterprises .Cuts in utilities .Reduced resources for in-house spay and neutering services provided by Animal Services .Reduction in use of temporary personnel across departments .General Services .Reduced information technology purchases .Sanitation moved to Solid Waste .Reduction of temporary personnel across departments .Reduction in the number of available early voting sites from four to two. .Community and Environment .Art Commission has been moved to the Visitors Bureau for funding purposes. .Reduction of temporary personnel across departments .Human Services .Discontinuing the Cooperative Extension Breastfeeding Program ( Relocation of staf� .Reduction of temporary personnel across departments .Public Safety .Increased personnel and reassignment of existing personnel. .Add one new Emergency Medical Service (EMS) vehicle to decrease emergency response time. .Reduction of temporary personnel in the ES department Examples of Recommended Changes in County Services ■Culture and Recreation ■Merged services for recreation and parks ■Reduced and merged library hours for the McDougle and Cybrary branches in Carrboro. ■Reduction of temporary personnel ■Close Cedar Grove Branch Library ■Non Profit Organizations ■Reduce funding provided to non-profit organizations from $1,043,742 for FY2009-10 to $848,600. ■Long Range/Pay-as-you Go County Capital ■Long range/pay-as-you go county capital will be reduced to $300,000 from $2.6 million in FY2009-10. This represents a decrease of$2.3 million. FY2010-11 Budget Impacts (table) Percentage of General Fund Budget Education —48.1% Human Services— 18.36% Public Safety— 10.40% General Services —9.98% Governing and Management—7.53% Community and Environment—2.23% Culture and Recreation — 0.89% Additional Funding Options ❑Article 46 '/4 Sales Tax ❑Appropriated Fund Balance, if necessary Public Hearings and Work Sessions (All Meetings Begin at 7:00 p.m.) Public Hearings — May 20th at Department of Social Services in Hillsborough and May 25th at Southern Human Services Center in Chapel Hill Work Sessions — May 27th at Southern Human Services Center in Chapel Hill and June 3�d at SHSC Work Session/Adoption —June 8th at SHSC Final Adoption —June 15th at SHSC Document Availability ❑Clerk to Board of Commissioners ❑County Financial Services Office ❑Orange County Library ❑Chapel Hill Public Library ❑Carrboro/McDougle Branch Library ❑Cybrary, Carrboro ❑Cedar Grove Branch Library ❑Orange County Website ■www.co.orange.nc.us Frank Clifton said that historically the County's revenues grew about 5%, but this was due in part to property taxes. He said that since his tenure he has saved $2 million with a hiring freeze on new hires and not filling vacant positions. This is offset at least by that much of a decline in sales tax revenues. He said that he focused on the issues that he could control. He said that an overriding factor is that the County Commissioners asked that he not raise taxes this year and this has not happened in at least 25 years. For counties the same size as Orange County or larger, Orange County is the highest taxed county in the State. There are a few options: raise taxes, use the fund balance (to an extent), adopt a '/4-cent sales tax, and expand retail opportunities and options in Orange County. He said that if there are not expanded retail opportunities in Orange County, then programs will have to be cut. 3. Public Comment Gary Bird said that educating children should be a top priority for the future. He spoke on behalf of Ephesus and Estes Hills Elementary Schools. He said that they need and expect high-quality education. He said that he has no doubt that the County Commissioners hold education at a high priority. He said that he is concerned that the Board of County Commissioners can foresee the consequences of a budget that could drain the school system of funds. He said that Ephesus is one of the older schools in the County and is in desperate need of capital projects for the health and safety of the children. He said that the same per- pupil allocation as last year might not meet the needs. John Poteat said that the education of the children is not the thing to delay until the budget improves. He urged the County Commissioners to approve the budget with the same per-pupil allotment. He asked the Board to urge the district to use creative funding to offset capital cuts. He asked that the Board allow the school systems flexibility to ensure that funding of key capital projects that affect the health and safety of the children and the schools. Anita Badrock spoke on behalf of the Community Home Trust. The Executive Director, Robert Dowling, was unable to attend and he asked her to speak on his behalf. She said that they are very appreciative that the County Manager has recommended maintaining the organization's funding level. She said that the organization was doing its part to deliver more programs without more public dollars. On June 30, 2009, the organization had 137 homes in its affordable home portfolio. On or about July 30, 2010, it will have 193 homes. This is an increase of more than 40% in the portfolio count. Despite this, they have not asked for additional funding for the organization, but they are improving efficiencies, asking for more from the staff, and identifying and securing other funding. She gave a report on what the money from the County is being used for. She shared some homeowner stories. She asked the Board to approve the Manager's funding recommendation for Community Home Trust in its entirety. Nerys Levy read a prepared statement: "My name is Nerys Levy. I am a member of the Friends of the Carrboro Branch Library, have served on all three Orange County Library Task Forces, and am the Administrator of the Carrboro Branch Library Arts Program and a painter. I am a registered business in Orange County and I pay sales taxes on all work sold. Like all those gather here on Tuesday May 18th, I listened with great concern as the County Manager presented his budget. I respect where he and his budget committee are coming from and understand the enormous and difficult task the BOCC have ahead in working out a budget. That being said, I have certain concerns about his recommendations pertaining to libraries and the arts. At a recent Friends of North Carolina Public Libraries meeting, we were told that the State is 44th in the nation for libraries. Having served on three Orange County Library task forces, I know that before the building of the new Orange County Public Library in Hillsborough, the County was 70th in the state for library provision to its citizens. These proposed budget cuts put us back to probably past 70th in the state for library ranking. For the second richest county in the state with one of the highest rates of educated people, these recommendations show a total lack of understanding regarding the needs of Orange County's citizens. With the proposed cuts to the Carrboro Cybrary, southwest Orange County's population of 30,000 plus will be served by a mere 2.00 FTE's. Furthermore, the Cybrary cuts will put an undue strain on the Carrboro Branch library's McDougle Branch — particularly on its 1.55 librarians and on its already overworked computers, all of which are shared by the Carrboro/Chapel Hill School System. And computer-less patrons seeking jobs through the Internet will have to shuttle between these two branches as they try to find work. These patrons, might I add, are Orange County taxpayers. Meanwhile, as a point of information, the Orange County Public Library in Hillsborough has 11.5 FTE's and one facility for a smaller population catchment area. As for the residents of Cedar Grove — they might not look like a lot of patrons but those seventy plus families who use the library every day represent over three hundred lives which will be affected by the closure of that branch library. The library is the last resort of social inclusion before many people drop out of the system from despair. One library equals 2 prisoners. By approving these cuts in library services, we are passing on our responsibility as citizens of Orange County to other County agencies like Social Services and to the State — ultimately costing us all a lot more. One Carrboro Branch Library patron costs $61 per patron per year. Emergency support costs hundreds of dollars. Might I also add here that to touch the dedicated fund from County building sales for the Southwest Orange Regional Branch Library would be highly short-sighted and a major economic mistake and would further short change the residents of southwest Orange now reduced to being served by reduced library hours and 2.2 librarians. On Tuesday there was talk of attracting more businesses to Orange County to offset our escalating burden as taxpayers for County services. Let us value what we already have right now as our economic assets. Libraries are one economic asset — and a positive investment. The arts are the other. I would question both being classified as recreational and hence expendable. There are over 2,500 artists in Orange County plus people involved in arts related work. To move the Arts Commission into the Visitor's Bureau and out of the general fund places this arts generating engine at great risk and at the mercy of the market. It also makes it compete with the Visitor's Bureau for hotel tax money putting both agencies at risk. Cutting the ArtsCenter money so drastically is also cutting off some of the economic potential for one of Orange County's important economic engines. And so, as you go into the budget process, please begin considering libraries, artists and the arts as Orange County's gold. You already have valuable resources. Steward them well and responsibly and this County will reap of its investments in people rather than in traditionally valued objects. Devalue them and Orange County will be much the poorer for having done so." Anne Medenblick, Chair of the OCS Board, said that statewide there are very few places that receive the level of local support that the schools in Orange County do. She said that in a state that ranks 44th in state funding for education, the support of the Board of County Commissioners is critical to maintaining the level of success. She said that the OCS Board is thankful for the close working relationship forged with the Board of County Commissioners. She said that she was pleased to hear the County Manager recommended funding the schools at the same per-pupil allocation. This recommendation will allow the district to offer programs to some of the neediest students. She said that the board understands the fiscal constraints, but they must advocate for the students in their district. Betty Compton said that she represents one of those outside agencies that the Manager's budget did not fund this year. She read a letter: "I am writing to you on behalf of the Adolescents-in-need Project, a long-time very successful service project based in the Orange County School District and serving the young people in grades 6 through 12 and those who have dropped out of school. This project serves those students who are at risk and who are failing through the cracks in services. These students seldom fit `reason for referral' required for core agency services in the community. I am writing because we need your help. For the first time in the life of the project (29 years) the funding from county government is at risk of coming to an end. This causes me grave concern about what will happen to this particular group of vulnerable students. The project serves approximately 150 students each year who are dealing with issues of violence, substance use, pregnancy, parenting, sadness, injurious behavior, divorce issues, and single parenting challenges. I have been engaged in dialogue with community and state leaders since last fall about the crucial role this project plays in the lives of our young people and how urgent is the matter of continuation funding to keep the project in place. Most particularly, I was invited to meet with Speaker Joe Hackney who has been a long-time supporter of this project and who speaks regularly of the impact this project has had in the lives of our youth in Orange County. He has recommended that the project staff seek funding from some of the 2010/2011 state initiatives, especially those grants that address mentoring, dropout prevention, and coop initiatives in the community. The funding cycles for these grant applications will be January 2011. To keep the project in place during this application process, we need financial support for the period of time from July 1, 2010 to January 1, 2011. There are no guarantees of funding, but it is promising in that Speaker Hackney has offered his endorsement of our projects' work. I am asking the Commissioners to continue funding of the project from July 1, 2010 to December 31, 2010. I ask your help for two reasons. First, it will allow us time to seek funding from other sources. Second, and most important, it will allow us time to help these students as well as referral sources, to deal with the potential termination of the project. We cannot just bring this project abruptly to an end on June 30, 2010. It would be a travesty to suddenly leave those particularly vulnerable students with nowhere to turn in a crisis. The project cost is $100,000.00 a year to maintain the current staffing level. I am asking for$50,000.00 to $75,000.00 to help us keep the project in place while we look for other funding sources. Thank you for the 29 years of continuation funding that you have provided, as well as the commitment and loyalty you have demonstrated in helping us reach the vulnerable young people in our county. It is indeed some of your best-spent dollars in Orange County!! Your favorable response to this request is greatly appreciated. Sincerely, Betty Compton, FNP, Professor, UNC School of Medicine, AIN Director" Krystal Lyons is CHCCS PTA Council President and thanked the Board of County Commissioners for recommending maintaining the per-pupil funding. She said that the citizens of Orange County place a high priority on quality education. She said that this has been a difficult budget process. She said that the council is pleased that the BOE, the budget Manager, and the County Commissioners are maintaining a long-term view in discussing the need for sustainability for the future. She asked the County Commissioners to please adopt this budget as proposed because it reflects the values of the residents of Orange County. She said that at the latest PTA meeting there was discussion about the possibility of raising property taxes and they would work with the Board of County Commissioners to adopt the '/4 cent sales tax in the fall. She said that with the postponement of Elementary School #11 there is still a compelling need for this project to go through in the future. Greg Dingfelder said that he has been in Orange County for about four years and he moved here for the quality of education. He said that the 48.1% for education is making the schools lose FTEs, and he is not sold on that amount. Jessica Lee is the dentist representative on the Orange County Board of Health. She has served on the Board of Health for the last eight years, including past Chair and past Vice- Chair. She said that she has served on this board through many budget cuts and she asked that the County not cut anymore. She said that they are at the very minimum right now and this is putting the County at risk. She said that their clinics are full to the max. She said that it would take one more emergency to put the Health Department at risk. Taryn King is a substitute teacher in the OCS and has gone in many different schools and classes. She challenged the Board of County Commissioners to go and sit in a K-3�d grade classroom. She said that if the County cuts the elementary school budget this year, this will impact the children. She said that teacher assistants are a big part of the schools. She said that the only way the classrooms can be inclusive of those with special needs is if there are special education teachers, reading specialists, and assistant teachers. When there is an emergency with a special needs child, there must be an assistant in that classroom so that the other children are not left by themselves. She asked that the County Commissioners consider the Orange County elementary schools in finalizing the budget. Christopher Cooke is an at-large member of the Board of Health. He has worked at the School of Public Health at UNC-CH for the last 25 years. He said that the Board of Health knows that there are some difficult decisions to make. He asked what kind of county we want to live in; how likely is it that we can sustain the current quality of life in Orange County, much less improve it, if the people who live here are not healthy; and what do we believe, is health a right or is it a privilege. He asked the Board to maintain the core of public health services that are so vital to the quality of life in Orange County. He said that the most recent cuts are affecting the services that the Health Department is required by law to provide and will affect the health of the County's residents if they are cut further. He said that everyone benefits from public health. He asked that there be no further cuts, that the vacancies be filled created by retirements (cost- neutral), that there be permission to recruit and fill vacancies during the fiscal year that are created by current staff inember resignations, and that there be restoration of critical capital needs that have been delayed for the past three fiscal year cycles. He said that sick people cannot work and businesses are not going to stay or locate to a community that is not essentially healthy. Joanne Fiore, Chair of the Chapel Hill-Carrboro Chamber of Commerce submitted a letter: "I am before you tonight on behalf of the Board of Directors of the Chapel Hill-Carrboro Chamber of Commerce to request that you fully fund the Orange County Economic Development Commissioner's request of $525,000 this year. Our Board endorses the request for funding and supports the recommendations put forward by the EDC. The mission of the Chamber is to serve and support our members' business interest and help create a sustainable community where they can thrive. We think investing in our community is one of the most significant things we can do to ensure the sustainability and viability of our community well into the future. Fortunately, we live in a County that has a history of forward thinking. Everything from a well funded school system to social service provision to the creation of park land and open space provision has been a priority for our community and helped us to be a great place to live. We have fallen well short, however, of investing in our economic future and are felling the impact of that choice now in this budget. Outside of staff salaries, very little has been done to fund economic development and the Economic Development Department in Orange County. As a result, we have not been able to participate in the billions of dollars flowing into the Research Triangle Region each year in the form of relocating businesses, business expansions, and entrepreneurial start-ups. It is paramount that resources now be invested in County economic development efforts to ensure a more vibrant economic future. Funding these recommendations is key to improving the County's ability to fund the social and environmental initiatives we value. The sooner this investment is made, the sooner it will be that commercial tax revenues rise, that our fiscal health improves, and that the major challenges facing our budget are resolved. Our Board asks that you fully fund the EDC's request for a $525,000 increase in the Economic Development Department's budget. This investment will bolster our economic future and ensure new revenue streams for our community well into the future." Steve White said that he moved to Chapel Hill in 1997 because of the educational system in Chapel Hill and Orange County. He said that they gladly pay higher taxes if it means keeping education a priority. He said that even small reductions in services will have an impact on students. Lisa Dumain is a parent of a Grady Brown student and PTA fundraising co-chair. She said that she has seen a lot this year in the school and teachers do not have enough money for everyday supplies. She encouraged the County Commissioners to fully fund the education budget as proposed. Jeremy Browner is a resident of Carrboro and he asked the County Commissioners to fully fund the EDC's recommendation of $525,000 to the Economic Development department. He said that Orange County needs to be able to capture some of these businesses that are making their way into N.C. in order to allow for the growth of revenue that has to happen. He urged the County Commissioners to take advantage of this budget cycle and to fully fund the Economic Development department. Joe Barnett thanked the Manager for a budget that fully funds education. He spoke on behalf of Efland-Cheeks Elementary School. Michelle Laws spoke on behalf of the Chapel Hill-Carrboro NAACP and thanked the County Commissioners for their leadership in advancing progressive policies that promote high standards of living and equitable treatment of all residents and workers in Orange County. Based on the NAACP's Education Committee review of the CHCCS's Recommended 2010- 2011 Budget, they are requesting that the County Commissioners strongly consider the human faces and circumstances behind the numbers. She said that many children and families are already suffering and are very vulnerable. She said that there is no room for additional reductions in critical educational services. She asked that the County Commissioners consider sending back to the CHCCS Board any budget that proposes the elimination or reductions in the items that it has proposed. These specifically include reduction in 3�a 4tn and 5th grade teacher's assistants and a reduction in literacy coaches in elementary schools. She said that the children are depending on the adults to make decisions to protect them from harm. Kathryn Cole is a resident of northern Orange County and a teacher in the CHCCS system. She said that the County needs to continue to support education. She said that the schools appreciated the maintaining of funding this year by the Board of County Commissioners. Jungsang Kim said that he was shocked that 70% of the County's revenue comes from property taxes. He said that the schools have always faced budget shortfalls and the parents try to supplement supplies as needed. He said that his taxes have gone up 20% from 2008-09 to now. He asked the County Commissioners to not let the school systems collapse. James Farrar is the Co-Chair of NAACP in Chapel Hill/Carrboro and he said that he is concerned that the resources in their schools are going to be lost. He requested that the Board of County Commissioners not cut the resources in their community. Heather Benjamin is a resident of Chapel Hill and a parent of children in CHCCS. She urged the County Commissioners to fund the per-pupil funding and to allow the schools to fund capital needs projects. She moved to Chapel Hill because of the schools and she is happy to pay taxes for their schools. Dolly Hunter said that she supports the Economic Development recommendations because this is the best return on investment for Orange County. She said that this must be done to accomplish the EDC's #1 recommendation to install the water and sewer in the Buckhorn/Mebane area. The Board of County Commissioners unanimously approved this in January 2010. She said that one recommendation of the EDC would be wise, but would not cost any money. Recommendation #9 is to identify and designate additional land for commercial development, in addition and/or adjacent to an economic development district. The area designated for economic development in Orange County is undersized for this strategic upgrading needed for economic development. In the economic development of the 2030 Comprehensive Plan, four of the 30 objectives were to expand the area suitable for economic development. She asked the County Commissioners to rethink the boundary of the Buckhorn EDD to include the area east to the Hillsborough boundary, and from US 70 to the south of I-85 as a vibrant, sensible economic development area. Susan Wingate is Vice President of Orange County's Special Education PTA and she thanked the County Commissioners for all of the time and effort they put into the community. She said that, with over 1,000 special needs children in Orange County, it is imperative that the school budget is funded that takes care of the needs of all of their children in the schools. Carolyn Christmon is a parent of a child at Efland-Cheeks Elementary School and she is in turmoil with all of the needs she heard about tonight. She said that the residents are tapped out with taxes so the County needs economic development to offset higher taxes. 4. Adjournment A motion was made by Commissioner Yuhasz, seconded by Commissioner Jacobs to adjourn the meeting at 8:23 PM. VOTE: UNANIMOUS Valerie Foushee, Chair Donna S. Baker, CMC Clerk to the Board