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HomeMy WebLinkAboutORD-2010-052 Approval of Fiscal Year 2010-2011 Personnel Ordinance ChangesArticle IV dRA , ~o~~ ~ d~''~-- Employee Benefits ~' ~~' a° rD ~6 9.0 Retirement 9.4 Supplemental Retirement [401(k) Plan] Employer's Contribution This Employer's Contribution to the 401(k) Plan, effective July 1, 2010, is suspended until June 30, 2011. ~,Q,p - ~o/a --a 6.~ ~6 b. Approval of Fiscal Year 2010-11 Personnel Ordinance Changes The Board considered approving the Personnel Ordinance Change required in the FY 2010-11 Budget. A motion was made by Commissioner Pelissier, seconded by Commissioner Hemminger to: - Adopt the "Resolution Determining a Significant Financial Crisis Exists Which Will Result in a Decrease of Revenue to the County and Temporary Cost Saving Measures are necessary to Balance the County's Budget for the FY 2010-2011 Budget" and authorize the Chair to sign the Resolution; and - Adopt the amendment to Article IV, Section 9.4 of the Orange County Personnel Ordinance, Supplemental Retirement [401(k) Plan] Employer's Contribution effective July 1, 2010. A Resolution Determining a Significant Financial Crisis Exists Which Will Result in a Decrease of Revenue to the County and Temporary Cost Savings Measures are Necessary to Balance the County's Budget for FY 2010-2011 WHEREAS, the Orange County Board of Commissioners finds that Orange County residents and businesses are suffering from the effects of a significant state and national financial crisis; and WHEREAS, the financial crisis has resulted in large reduction in revenues projected to be available to fund the County's budget for FY 2010-2011; and WHEREAS, Orange County Financial Services has calculated the revenues available to the County for FY 2010-2011 from the taxes paid by residents and businesses and determined expenditures for FY 2010-2011 will exceed revenues unless additional actions are taken; and WHEREAS, the Orange County Board of Commissioners is required to ensure that the County's budget for FY 2010-2011 is balanced in a manner that carefully balances the rights of residents and businesses to government services and the interest of County employees who provide those services; and WHEREAS, the Orange County Manager has recommended to the Board of County Commissioners feasible cost saving alternatives to consolidating, reorganizing, or abolishing programs or departmental units which could result in the loss of one (1) or more non-vacant permanent or provisional positions; and WHEREAS, the employee related temporary cost saving measures for FY 2010-2011 recommended by the County Manager are: the suspension of the Supplemental Retirement [401(k) Plan] Employer Contribution provided in Article IV, Section 9.4 for non-law enforcement officer (LEO) employees; and the continuation of a Voluntary Furlough Plan, as provided in Article IV, Section 24.0; and WHEREAS, a furlough is unpaid leave, whether voluntary or involuntary, which does not require the employee to lose seniority or employer paid benefits and allows the employee to earn and retain all leave at the same rate, unless otherwise provided by the Board; and WHEREAS, the implementation of these cost savings measures will begin on July 1, 2010 and are necessary to balance the County's budget for FY 2010-2011 and will end on June 30, 2011, unless the Board by resolution determines that continued cost savings are necessary to balance the budget; NOW, THEREFORE, BE IT RESOLVED, the Orange County Board of Commissioners has determined a significant financial crisis exists that will result in a decrease in revenue to the County and that temporary cost saving measures are necessary to balance the County's budget for FY 2010-2011 in a manner that balances the rights of residents and business to government services and the interest of County employees who provides those services; and BE IT RESOLVED, the Orange County Board of Commissioners does hereby approve and authorize the temporary cost saving measures for County employees provided in the County Manager's recommended FY 2010-2011 budget; and BE IT FURTHER RESOLVED, the Orange County Board of Commissioners does hereby adopt the attached amendment to the Orange County Personnel Ordinance to comply with these cost saving measures. VOTE: UNANIMOUS c. Resolution Calling for a November 2 2010 Special Advisory Referendum Concerning the Lew of aOne-Quarter Cent (1/4~) County Sales and Use Tax The Board considered a Resolution Calling for a November 2, 2010 Special Advisory Referendum Concerning the Levy of aOne-Quarter Cent (1/4¢) County Sales and Use Tax. Frank Clifton said that staff offers this up as an option for the future, since the revenue stream is so limited. This levy would not have a huge impact this fiscal year, but would give options for the future. He said that, without additional revenues, County services are going to deteriorate at a greater extent. The sales tax would not apply to food sales. PUBLIC COMMENT: Joe Phelps said that he would like the Board of County Commissioners to state how the revenues would be spent if put on a referendum. He said that the money could be used for a permanent meeting room, economic development, or the school systems. He would also like the Board to be specific about the time period that this tax would be in effect. He said that it should take care of immediate needs. He said that if it were used for economic development, it could help keep the property tax rate down in the future and would create more sales tax revenue. Will Raymond is a resident of Chapel Hill. He said that he has been watching the budget process. He commended the Board for making some tough cuts. He hopes that some of the local leadership can take a lesson from that. He said that he is not against the '/4-cent tax, but he thinks that there are some questions that must be answered before this is implemented. He asked how the money would be spent. Debt is reduction is very attractive. He also suggested human services. He said that the'/4-cent would affect the people who are struggling the most and that is why human services is an attractive place to put the money. He said that $2.4 million would not go very far in economic development or the school systems. He said that the bulk of this new revenue will come from the municipalities, but he understands that the municipalities will not directly share in this revenue. He suggested that the municipalities get at least some of the money. Aaron Nelson is President of the Chapel Hill Chamber of Commerce and said that his board will meet on Thursday to discuss whether to support this, but their Executive Committee ORANGE COUNTY __ -BOARD O~CO1171MiSSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 15, 2010 __ _- 1G rv~~ -_ ~~'S ,~a/U - ~ 53 Action Agenda Item No. ~~ SUBJECT Approval of Fiscal Year 2010-11 Personnel Ordinance Changes DEPARTMENT: Human Resources ATTACHMENT(S): Attachment 1. Resolution Determining a Significant Financial Crisis Attachment 2. Current Article IV, Section 9.4 of the Orange County Personnel Ordinance and Proposed Article IV; Section 9.4 Supplemental Retirement [401(k) Plan] Employees Contribution PUBLIC HEARING: (YIN) No INFORMATION CONTACT: Michael McGinnis, Human Resources Director, 245-2552 Annette M. Moore, Staff Attorney 245-2317 PURPOSE: To approve the Personnel Ordinance Change required in the FY 2010-11 Budget. BACKGROUND: The County Manager's Recommended FY 2010-11 Annual Operating Budget recommended no employer contribution to the 401(k) Plan and the use of voluntary furloughs as a cost savings measure. If adopted these recommendations require a Board resolution similar to the one approved last year,. "Determining a Significant Financial Crisis Exists" that necessary cost savings measures are necessary to balance the County's Budget for FY 2010- 2011. An amendment to Article IV, Section 9.4 of the Orange County Personnel Ordinance is also necessary. Attachment 1 - Resolution Determining Significant Financial Crisis. This Resolution provides the reasons the Board temporarily discontinued the employer contribution to the 401(k) Plan and instituted the voluntary furloughs. The County Manager recommended the discontinuance of employer contributions to the 40.1 (k) Plan and the institution of voluntary furlough as part of the recommended Budget.. Attachment 2 -Current and Proposed Amendment to Article IV, Section 9.4 Supplemental Retirement [401(k) Plan] Employer's Contribution. This continues the suspension to the employer's contribution to the 401(k) Plan. Employees are still able to make individual contributions to the 401(k) Plan. The North Carolina General. Statute §153A-45 provides that in order for an ordinance to be adopted on its first reading, it "must receive the approval of ,all the members of the board of .commissioners. If the ordinance is approved by a majority of those voting but not by all the ORANGE COUNTY BOARD OF COMMISSIONERS -A Resolution Determining a Significant~'inancial Crisis Exists Which~'Vill Resalt-in a Decrease of-Revenue fo tt-e County and Temporary Cost Saviag Measures Are Necessary to Balance the County's Budget for FY 2010-2011 WHEREAS, the Orange County Board of Commissioners finds that Orange County residents and businesses are suffering from the effects of a significant state and national financial crsis; and WHEREAS, the financial crisis has resulted in large reduction in revenues projected to be available to fund the County's budget for FY 2010-2011; and WHEREAS, Orange County Financial Services has calculated the revenues available to the County fir FY 2010-2011 from the taxes paid by residents and businesses and determined expenditures for FY 2010-2011 will exceed revenues unless additional actions are taken; and WHEREAS, the Orange County Board of County Commissioners is required to ensure that the County's budget for FY 2010- 2011 is balanced in a manner that carefully balances the rights of residents and businesses to government services and the interest of County employees who provide those services; and WHEREAS, the Orange County Manager has recommended to the Board of County Commissioners feasible cost saving alternatives to consolidating, reorganizing or abolishing programs or departmental units which could result in the loss of one (1) or more non-vacant permanent or provisional positions; and __ _ _ __ WHEREAS, the employee related temporary cost saving measures for FY 2010-2011 recommended by the County Manager are: the suspension of the Supplemental Retirement [401(k) Plan] Employer Contribution provided in Article IV, Section 9.4 for non-law enforcement officer (LEO) employees; and the continuation of a Voluntary Furlough Plan, as provided in Article IV, Section 24.0; and WHEREAS, a furlough is unpaid leave, whether voluntary or involuntary, which does not require the employee to lose seniority or employer paid benefits and allows the employee to eam and retain all leave at the same rate, unless otherwise provided by the Board; and WHEREAS, the implementation of these cost savings measures will begin on July 1, 2010 and are necessary to balance the County's budget for FY 2010-2011 and will end on June 30, 2011, unless the Board by resolution determines that continued cost savings are necessary to balance the budget; NOW, THEREFORE, BE IT RESOLVED, the Orange County Board of Commissioners has determined a significant financial crisis exists that will result in a decrease in revenue to the County and that temporary cost savings measures are necessary to balance the County's Budget for FY 2010-2011 in a manner that balances the rights of residents and business to government services and the interest of County employees who provides those services; and BE IT RESOLVED, the Orange County Board of Commissioners does hereby approve and authorize the temporary cost saving measures for County employees govided in the County Manager's recommended FY 2010.2011 budget; and BE IT FURTHER RESOLVED, the Orange County Board of Commissioners does hereby adopt the attached amendment to the Orange County Personnel Ordinance to comply with these cost saving measuES. This the 15~' day of June, 2010. Valerie P. Foushee, Chair Orange County Board of Commissioners 062~~o2olU• z~5~- 7b b. Approval of Fiscal Year 2010-11 Personnel Ordinance Changes The Board considered approving the Personnel Ordinance Change required in the FY 2010-11 Budget. A motion was made by Commissioner Pelissier, seconded by Commissioner Hemminger to: - Adopt the "Resolution Determining a Significant Financial Crisis Exists Which Will Result in a Decrease of Revenue to the County and Temporary Cost Saving Measures are necessary to Balance the County's Budget for the FY 2010-2011 Budget" and authorize the Chair to sign the Resolution; and - Adopt the amendment to Article IV, Section 9.4 of the Orange County Personnel Ordinance, Supplemental Retirement [401(k) Plan] Employer's Contribution effective July 1, 2010. A Resolution Determining a Significant Financial Crisis Exists Which Will Result in a Decrease of Revenue to the County and Temporary Cost Savings Measures are Necessary to Balance the County's Budget for FY 2010-2011 WHEREAS, the Orange County Board of Commissioners finds that Orange County residents and businesses are suffering from the effects of a significant state and national financial crisis; and WHEREAS, the financial crisis has resulted in large reduction in revenues projected to be available to fund the County's budget for FY 2010-2011; and WHEREAS, Orange County Financial Services has calculated the revenues available to the County for FY 2010-2011 from the taxes paid by residents and businesses and determined expenditures for FY 2010-2011 will exceed revenues unless additional actions are taken; and WHEREAS, the Orange County Board of Commissioners is required to ensure that the County's budget for FY 2010-2011 is balanced in a manner that carefully balances the rights of residents and businesses to government services and the interest of County employees who provide those services; and WHEREAS, the Orange County Manager has recommended to the Board of County Commissioners feasible cost saving alternatives to consolidating, reorganizing, or abolishing programs or departmental units which could result in the loss of one (1) or more non-vacant permanent or provisional positions; and WHEREAS, the employee related temporary cost saving measures for FY 2010-2011 recommended by the County Manager are: the suspension of the Supplemental Retirement [401 (k) Plan] Employer Contribution provided in Article IV, Section 9.4 for non-law enforcement officer (LEO) employees; and the continuation of a Voluntary furlough Plan, as provided in Article IV, Section 24.0; and WHEREAS, a furlough is unpaid leave, whether voluntary or involuntary, which does not require the employee to lose seniority or employer paid benefits and allows the employee to earn and retain all leave at the same rate, unless otherwise provided by the Board; and WHEREAS, the implementation of these cost savings measures will begin on July 1, 2010 and are necessary to balance the County's budget for FY 2010-2011 and will end on June 30, 2011, unless the Board by resolution determines that continued cost savings are necessary to balance the budget; NOW, THEREFORE, BE IT RESOLVED, the Orange County Board of Commissioners has determined a significant financial crisis exists that will result in a decrease in revenue to the County and that temporary cost saving measures are necessary to balance the County's budget for FY 2010-2011 in a manner that balances the rights of residents and business to government services and the interest of County employees who provides those services; and BE IT RESOLVED, the Orange County Board of Commissioners does hereby approve and authorize the temporary cost saving measures for County employees provided in the County Manager's recommended FY 2010-2011 budget; and BE IT FURTHER RESOLVED, the Orange County Board of Commissioners does hereby adopt the attached amendment to the Orange County Personnel Ordinance to comply with these cost saving measures. VOTE: UNANIMOUS c. Resolution Calling for a November 2 2010 Special Advisory Referendum Concerning the Lew of aOne-Quarter Cent (1/4~) County Sales and Use Tax The Board considered a Resolution Calling for a November 2, 2010 Special Advisory Referendum Concerning the Levy of aOne-Quarter Cent (1/4¢) County Sales and Use Tax. Frank Clifton said that staff offers this up as an option for the future, since the revenue stream is so limited. This levy would not have a huge impact this fiscal year, but would give options for the future. He said that, without additional revenues, County services are going to deteriorate at a greater extent. The sales tax would not apply to food sales. PUBLIC COMMENT: Joe Phelps said that he would like the Board of County Commissioners to state how the revenues would be spent if put on a referendum. He said that the money could be used for a permanent meeting room, economic development, or the school systems. He would also like the Board to be specific about the time period that this tax would be in effect. He said that it should take care of immediate needs. He said that if it were used for economic development, it could help keep the property tax rate down in the future and would create more sales tax revenue. Will Raymond is a resident of Chapel Hill. He said that he has been watching the budget process. He commended the Board for making some tough cuts. He hopes that some of the local leadership can take a lesson from that. He said that he is not against the'/4-cent tax, but he thinks that there are some questions that must be answered before this is implemented. He asked how the money would be spent. Debt is reduction is very attractive. He also suggested human services. He said that the'/4-cent would affect the people who are struggling the most and that is why human services is an attractive place to put the money. He said that $2.4 million would not go very far in economic development or the school systems. He said that the bulk of this new revenue will come from the municipalities, but he understands that the municipalities will not directly share in this revenue. He suggested that the municipalities get at least some of the money. Aaron Nelson is President of the Chapel Hill Chamber of Commerce and said that his board will meet on Thursday to discuss whether to support this, but their Executive Committee