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MINUTES
ORANGE COUNTY BOARD OF COMMISSIONERS
BUDGET WORK SESSION
JUNE 7, 2000
The Orange County Board of Commissioners met with the Orange County and Chapel Hill-Carrboro
Boards of Education on June 7, 2000 at 7:30 p.m. in the Southern Human Services Center in Chapel Hill,
North Carolina.
COUNTY COMMISSIONERS PRESENT: Chair Moses Carey, Jr., and Commissioners Margaret
W. Brown, Alice M. Gordon, Stephen H. Halkiotis and Barry Jacobs
COUNTY ATTORNEY PRESENT: Geoffrey Gledhill
COUNTY STAFF PRESENT: County Manager John M. Link, Jr., Assistant County Manager Rod
Visser and Clerk to the Board Beverly A. Blythe (All other staff members will be identified appropriately
below)
CHAPEL HILL-CARRBORO BOARD OF EDUCATION MEMBERS PRESENT: Chair Elizabeth
Carter and members Gloria Foley, Roger Waldon, Elizabeth Williams and Superintendent Neil
Pedersen.
ORANGE COUNTY BOARD OF EDUCATION MEMBERS PRESENT: Chair Susan Halkiotis and
members Keith Cook, Rick Kennedy, Brenda Stephens, Delores Simpson and Bob Bateman.
NOTE: ALL DOCUMENTS REFERRED TO IN THESE MINUTES ARE IN THE PERMANENT
AGENDA FILE IN THE CLERK'S OFFICE. ALL RECORDINGS OF THE MEETING WILL
BE KEPT FOR 5 YEARS.
CHAIR'S REVIEW OF SCHEDULE/TOPICS
Chair Carey welcomed everyone to the meeting. The County Commissioners reviewed the
proposed schedule of topics far the remainder of the budget work sessions. Commissioner Gordon
suggested having a draft resolution of intent ready for the June 15t" work session so the County
Commissioners could decide an the items as listed in that resolution and approve the resolution on the
20`h.
Jahn Link said that the Landfill Enterprise Fund deliberations could be delayed until after the
summer break. This fund is operated through a separate revenue stream that is not part of the general
fund budget.
Commissioner Jacobs noted that there would be four meetings held in the Government Services
Center and one at the Southern Human Services Center. The Board decided to change the location of
the June 15th work session to the Southern Human Services Center. The meeting on the 20t" will be held
in the F. Gordon Battle Courtroom.
Chair Carey asked if the County Commissioners wanted to set any parameters for the June 13tH
budget work session.
Commissioner Gordon suggested discussing only those items on which decisions must be made.
Commissioner Brown said that she would like to have another presentation from those
departments that are requesting new staff resources. The department budgets will only be discussed by
exception. The Sheriff will be available to talk about the COPSFast program.
FY 2000-01 SCHOOL BUDGETS
a. Manager's Remarks -_ Chapel Hill-Carrboro CItV School Board Requested Budget
John Link summarized some of the remarks he made at the public hearings about the
rationale for the funding of the school systems. One of the driving forces in this year's school budget
relates to having more than 700 new students attending the two school systems next year. The
recommended per pupil amount is $2,395. This number addresses three major areas -debt service,
teacher pay increases, and the increase in the number of new students. The Orange County school
system received 94.1 °l° of their requested amount, based an the Manager's recommendation. The
Chapel Hill-Carrboro school system received 96°~ of their requested amount, based on the Manager's
recommendation. The total recommended funding far education is 53.9 million dollars, and the
percentage of the general fund is 49.4%. He said that one of the points of decision and discussion on
the part of the County Commissioners is how much of the total general fund can go toward any one
function, including education. The Commissioners asked the Manager to pursue a target of 48.1 % of the
total general fund, but he felt that this could not be achieved based on the number of new students and
the expected increases in teacher pay, etc. He summarized the 'blue sheet' in the agenda packet far the
Chapel Hill-Carrboro City Schools current expense appropriation.
Commissioner Brown made reference to the per pupil allocation and said that the district
revenue far the Chapel Hill-Carrboro City Schools generates $10,000,000, but that is not made part of
the per pupil amount. She asked why the $10,000,000 was not part of the per pupil number. John Link
said that the per pupil amount is the same for both school systems. When the district tax is addressed,
part of this amount is added to the per pupil amount allocated.
b. Chapel Hill-Carrboro City School Board Presentation
Elizabeth Carter, Chair of the Chapel Hill-Carrboro City School Board, thanked the County
Commissioners for what they do for the Chapel Hill-Carrboro City Schools. She said that the school
board, of course, is not satisfied with the allocation. She summarized the process they follow in
developing their budget. The school board reviews the requests that are received and cut wherever
possible. She asked the Commissioners to give some consideration to the original recommended budget
from the Chapel Hill-Carrboro City Schools. She said that she personally supports the one cent for
affordable housing and also the needs of the senior citizens. She supports additional soccer fields and
realizes that there are other needs in the County.
Superintendent Neil Pedersen highlighted the system's record of achievement as listed in
the handout, including some national recognition for accomplishments. He summarized the reductions
that were made before the budget was presented to the Commissioners. The total reductions were
$714,726. He painted out that the total local budget for the school system was up 6.78% on aper-student
basis, and this is the lowest that it has been in the last four years. Related to the state mandate of
increased teacher salaries, he clarified why the school system said 8°~ and the Governor said 6.5°I°. He
said that 6.5% was the average increase that is projected by the state. He said that the increments were
larger in school districts that have younger, less experienced teacher populations. These schools districts
have been advised to budget more than the 6.5%. He summarized some of the specific items that were
in the requested budget such as compensation, teacher supplements, proficiency standards and minority
student achievement, technology, curriculum enhancement, etc. In regards to reductions and savings, he
said that they were being a little aggressive with charter schools in the sense that they are not providing
for any additional enrollment. They did appropriate $900,000 from their fund balance. He made
reference to the article that was distributed that was in the News and Observer about a teacher in
Chatham County and her financial struggles.
c. Board of County CommissionerslChapel Hill-Carrboro City School Board dialogue
Commissioner Halkiotis said that he is disappointed in County government and the
situation we find ourselves in. He said that we missed something about the State mandate of increased
teacher salaries. He noted that the Department of Public Instruction has been wrong in their predictions
of students. He said that he supports the one cent for affordable housing and he supports both the
budgets as presented by the two school systems. He would like to see how a webmaster could be shared
with the two school systems, County government, etc. He said that a webmaster would not be a full-time
job for just one agency. He made reference to charter schools and Neil Pedersen said that they were
paying for 117 students. He encourages joint cooperation with County government and other agencies.
Commissioner Brown supports cooperative and joint collaboration with positions that
could work for the County and the municipalities.
Roger Walden said that next week at the Chapel Hill-Carrboro City Schaal Board meeting,
they would be looking at a facilities report and the future. There has been excellent collaboration
between the school staff and the County staff.
Gloria Foley pointed out that the webmaster would not only be creating sites but also
looking at how technology could save money and achieve efficiency. She suggested having someone
come in and create the websites and then hire someone that would work far all three entities to maintain
the websites. Commissioner Brown supported this idea saying that this was the recommendation from
the Information Technology Committee.
Commissioner Gordon asked if any of the expansion items had priorities over other ones
and Superintendent Pederson said no.
Commissioner Jacobs made reference to the Schaals Adequate Public Facilities
Ordinance and said that it could help to determine future student population. He believes that at some
point the three entities, the two school boards and the County Commissioners, need to look at how to
deal with school funding in a more holistic way. He gave several scenarios -continue how it is being
done now, have a district tax for the Orange County system, collaborate on positions or functions
between the two school systems. He feels that to keep going through this same exercise where no one
goes away satisfied is not the way to continue business. He would like to see a work group talk about
these budgeting issues ar set up a different group using the Institute of Government to help with the
process of looking at issues to see if there is same new way of budgeting for schools and other County
responsibilities.
Commissioner Brown asked if the school systems had any comments about the writing
test scares that were in the paper. Superintendent Neil Pedersen said that the scores seemed to be
erratic. The Chapel Hill-Carrboro City schools are trying to have a strong writing program and he feels
that over time the scores will increase. Commissioner Brawn feels we can plan in late August to set up a
series of meetings to get to some of these issues. The staff can work over the summer to set the agenda
to discuss technology, mandates, etc.
Chair Carey said that a group also needs to meet on capital funding for the schools.
Commissioner Halkiotis said that the idea of putting together a group is okay but we need
to learn from the mistakes we have made in the past. He does not think the process looked deep
enough to see what was under the surface. He feels there needs to be more investigation in the process
of budgeting for schools.
d. Manager°s Remarks -_ Orange Countv School Reauested Budget
John Link pointed out that in most years, the Chapel Hill-Carrboro City school system has
grown at a rate much greater than the Orange County school system. He said that in order for the
Orange County school system to receive 100% of its request, the per pupil allocation would have to be
$2,544. The recommended funding from the general fund is almost one million dollars less than what
was requested. The base amount of money for Orange County schools is not rising very quickly
because there are not as many new students. He said that he was having a hard time coming up with
something innovative in allocating more money other than examining the idea of the Orange County
school system pursuing a district tax.
e. Orange Countv School Presentation
Susan Halkiotis, Chair of the Orange County School Board, thanked the County
Commissioners for their comments. She made comments after the Superintendent made his
presentation.
Superintendent Randy Bridges highlighted some of the accomplishments of the school
system. Six of the schools were identified as exemplary schools and two were identified as schools of
distinction. The test scores have also been going up. Eight of the schools went to the Southern
Association of Colleges and Universities Accreditation program, and all eight were successfully
accredited. He summarized the vision statement, mission statement, and system priorities of the Orange
County school system. The mandates included in the Superintendent's recommended budget included
an 8°~ teacher salary increase, utilities, Charter schools, two ESL teachers, and partial start-up costs for
Pathways Elementary. The mandates make up 75% of the recommended budget. The expansion items
include two additional core teachers at A. L. Stanback, a Reading Resource teacher at Hillsborough
Elementary, as well as other needed positions. The expansion items make up 18°~ of the recommended
budget. He said that the budget request that the Commissioners were seeing was cut way down from
the requests that were received from the schools. He said that there was a shortage of $243,358 to
cover the mandates and the start-up costs for Pathways Elementary. He said that if Pathways
Elementary was opened this year and the mandates were funded, none of the expansion items would be
addressed. He asked that the County Commissioners increase funding far the Orange County schaol
system to cover some items in their expansion budget.
Commissioner Gordon asked if there were any items in the expansion budget that were
priorities. Superintendent Bridges said that the priority was the reading teacher at Hillsborough
Elementary School.
Susan Halkiatis said that their budget has been funded at 94.1 °~. The requested increase
for this year has been funded 55.5% in a year that they are starting up a new school. The Orange
County school system does not have enough money to start up the new Elementary school. She thinks
that a mistake was made to set a target at 48.2% of the County's general fund for the schools. She said
that this allocation would have yielded $3,333 per student. The growth in the schools was not taken into
account -the new schools and additional students. She made reference to the joint meetings between
the school boards and the County Commissioners and said that the purpose of this was to let the County
Commissioners know ahead of time what new initiatives were on the horizon. She said that mergers,
district taxes, or district-wide taxes are solutions for the future but not for this year when they are trying to
open new schools. She feels that the schools have been very deliberate and efficient in planning for the
new elementary school and high school. She made reference to the trees that were cut on the Grady
Brown property in the clearing activities for the new high schaol. She said that an ordinance was
overlooked and it would be mitigated. The Orange County School system will approach the contractor.
However, if the contractor does not cooperate, she asked if they should sue, and if sa, if taxpayer's
money should be used. She asked that a packet be put together for outside contractors so that this
mistake does not happen again. She said that the Orange County school board was faced with a
decision of whether or not to leave a new school empty or to open it and not fund again the expansion
items that have been on the list for a number of years.
Keith Cook made reference to the record of achievement that Chapel Hill-Carrbara City
Schools talked about this evening. He said that the Orange County Schools have enough money to pay
bills and that is it. The Orange County school board is concerned and they want to have the same
achievement that Chapel Hill-Carrboro City Schools have. He does not feel that items like new school
startup costs should be part of their budget, but that they should be a separate item. He said that the
citizens who spoke up at the public hearings were asking the County Commissioners to raise taxes in
order for their children to continue getting a goad education. He asked that the County Commissioners
look at what has been allocated to the Orange County Schools and increase that amount so they can do
more than just pay bills.
Rick Kennedy feels that the County Commissioners are holding the schaol system back
and undercutting the kids. With reference to the special district tax, a new Elementary School could be
built each year with the $10 million that would be generated. Chapel Hill has the benefit of having water
and sewer and the rural buffer and can expand their growth. Orange County does not have these
benefits. He made reference to the mistake that was made with the trees at the new high school site and
compared it to the damage that has been done on Eubanks Road and other places in the County. He
said that Orange County Schools should not keep paying for this mistake.
Brenda Stephens said that she remembers the President's State of the Union Address in
January where he said that if we demand more from our schools, we must invest more in our schools.
Delores Simpson said that we are here far a common purpose. What the Orange County
School Board has asked for is reasonable and certainly not as much as is needed. The School Board
has concluded that these are the things that are needed. She asked that the County Commissioners
reconsider what was presented by the school board.
Bob Bateman said that the school board voted unanimously for the budget that was
presented. The school board felt that the Superintendent and staff did a tremendous jab in preparing
and presenting the budget. He believes that the County Commissioners have a fund balance that can be
used. He said that maybe when opening new schools, the County's fund balance could be used.
e. Board of County CommissionerslOranae County School Dialoaue
Chair Carey said that the County Commissioners not only have passion for children but
also far all of the needs of all the citizens in Orange County.
Commissioner Halkiotis thanked both school boards for coming and for the job that they
da. He said that no one truly understands what goes on inside the schools except for the people who
work in the schools. He said that education has to be the foremost and primary consideration.
Commissioner Jacobs asked if projections have been done on what the change in the
impact fee might be depending on different amounts. He also asked when the student generation study
would be finished. Jahn Link said that the student generation study would probably be completed in the
next month to six weeks. He said that at the Schools and Land Use Council meeting next week, there
would be a report on the development of accurate projections and determining what the capacity should
be at each school. The report will also address how the County tells the citizens that in order to be able
to build the schools and have funding for operating the schools that only so many units of development
will be allowed each year. Parents da not want children to be in mobile units or to go without supplies.
He said that the allocation to the schools was simply a mathematical equation.
Commissioner Jacobs asked about the non-appropriated fund balance and how that was
determined. It was answered that the non-appropriated fund balance was not available. He stated that
he does not feel any member of the Board of County Commissioners was trying to hold back any
students in either system. He noted that no one was criticizing the schools for not having a district tax.
Also, he said that the comments about the trees that were cut on the new high school property were not
a criticism. He feels that the schools and County Commissioners need to take a different approach an
funding schools.
Commissioner Brown made reference to the issues brought forth on opening the new
Elementary School. She asked if the school board has ever talked about a district tax. Susan Halkiotis
said that it has certainly come up in discussion, but it has never been on the agenda to discuss formally.
She said that there was strong division on the issue of a district tax.
Commissioner Gordon said that she would look at the budget very carefully before
deciding on the final budget. The figure that struck her in the first public hearing was the increase in
student population. A lot of the big issues in the County's budget have to do with growth and that is why
she thinks it is important to work on things like the Adequate Public Facilities Ordinance. She
encouraged the representatives of the Joint Schools and Land Use Council to attend the June 14tH
meeting.
f. Fox Hill Farm Deannexation
Geoffrey Gledhill said that he spoke with Representative Hackney and Senator Kinnaird
today and he determined that there has not been a bill introduced that would deannex all of Fox Hill
Farms. He further determined that, at the urging of the legislators, a committee substitute has been
prepared by bill drafting and it is the intention of our delegation to introduce the committee substitute to
the existing bill that would deannex all of the property. He feels that all of the Fox Hill Farm property will
get through the process and be deannexed unless it becomes controversial. He will communicate the
Board's support for the committee substitute for the bill and let the legislators know that if it becomes
controversial the Board does not have an objection to the other bill.
Commissioner Halkiotis made reference to a letter from an attorney and said that he did
not like the tone and the demands of the letter.
Commissioner Gordon thinks that the Board should support the committee substitute.
Commissioner Brown also would like to deannex the entire property.
Geoffrey Gledhill said that he thinks the County needs to get rid of this annexation
however it can.
ADJOURNMENT
With no further items for the County Commissioners to consider, Chair Carey adjourned the
meeting. The next regular meeting will be held on June 13, 2000 at 7:30 p.m. in the Southern Human
Services Center in Chapel Hill, North Carolina.
Moses Carey, Jr., Chair
Beverly A. Blythe, CMC