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HomeMy WebLinkAboutMinutes 05-24-2011 APPROVED 8/23/2011 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS BUDGET PUBLIC HEARING May 24, 2011 The Orange County Board of Commissioners met on Tuesday, May 24, 2011 at 7:00 p.m. at Southern Human Services Center in Chapel Hill, N.C. The purpose of this meeting was to hold a public hearing on the County Manager's Recommended 2011-2012 Budget. COUNTY COMMISSIONERS PRESENT: Chair Bernadette Pelissier and Commissioners Valerie Foushee, Alice M. Gordon, Pam Hemminger, Barry Jacobs, Earl McKee and Steve Yuhasz COUNTY COMMISSIONERS ABSENT: COUNTY STAFF PRESENT: County Manager Frank Clifton, Assistant County Manager Gwen Harvey, Interim Assistant County Manager Michael Talbert and Clerk to the Board Donna S. Baker (All other staff inembers will be identified appropriately below) 1. Openinq Remarks-Chair Pelissier Chair Pelissier dispensed with the reading of the public charge, but referred to it. 2. Presentation of County Manaqer's Recommended FY 2011-12 Budqet (PowerPoint Presentation) Frank Clifton said that there have been some questions regarding the funding of the schools and he would recommend moving $600,000 from the undesignated fund balance to the school debt, either prepaid debt or for balancing out projects going forward. He said that nothing has changed in the legislature and it looks like the misdemeanor/prisoner issue may not be as significant because they are talking about putting inmates in counties that have available space. County Manager's Recommended FY2011-12 Annual Operating Budget and Capital Investment Plan Presentation Department of Social Services, Hillsborough, NC Orange County, NC May 19, 2011 Recommended General Fund Budget •Totals $177.3 million •Represents an increase of$2.0 million from original current year budget of$175.3 million, which is a 1.1 percent increase from previous year original budget. •Represents a $3.9 million decrease in the current year's amended budget Guiding Principles •Meets Board directives •Balances County's operating budget without a property tax rate increase •Does not provide for a reduction in force •Funds local school districts at the same funding level for current expense, recurring and long range capital Fiscal Year Tax Increase Approved Amended Difference Ending/Ended 2007 Yes $163,473,184 $166,585,727 $3,112,543 2008 Yes $173,625,351 $177,228,766 $3,604,415 2009 Yes $183,005,580 $191,754,758 $8,749,178 2010 No $177,589,039 $185,940,474 $8,351,435 2011 No $175,313,920 $181,143,619 $5,829,699 2012 — Mgr's No $177,279,970 N/A Recommended Difference in 2009-2012 2009-2011 Budget Since Last Tax $ ($5,725,610) $ (10,611,139) Increase/Reval. Proposed Ad Valorem Tax Rate Effective July 1, 2011 •Recommended tax rate of 85.8 cents per$100 of assessed valuation •This rate produces $133 million in property tax revenues for FY2011-12 •Overall Property valuation increased 1.2% •One cent on property tax estimated to generate $1,537,967 General Fund Revenues - Property Taxes—75.3% - Sales Taxes— 8.6% - Intergovernmental Revenues —9.0% - Charges for Services, Licenses, and Permits— 5.5% - Investment Earnings, Miscellaneous, Transfers — 1.5% Sales Tax Revenues •Recommended Sales Tax Revenues of$15.3 million is 5.5% higher than the $14.5 million budgeted in 2010-11 •Actual sales tax revenues are down over 47% since the peak of$22.5 million in fiscal 2007-08 •The Medicaid - Sales Tax swap will continue to limit future growth of sales tax revenues •2011-2012 Sales Tax Revenues estimated to grow by 1 to 2 percent next year. Proposed Chapel Hill Carrboro City Schools District Tax Rate Effective July 1, 2011 •Recommended tax rate of 18.84 cents per$100 of assessed valuation •Represents no increase in the property tax rate for the District •Recommended tax rate will generate $18.8 million for the Chapel Hill — Carrboro School District •This represents an additional $1,605 per pupil above the County's allocation •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 $83.5 million •These funds will fund day-to-day operations, repayment of school related debt, and capital •Appropriation equals 47.1 percent of total General Fund Budget •Reflects $620,954 decrease from current year General Fund appropriation due to a decrease in debt service. •Equates to $3,102 per student for each of the 19,141 students in both districts for day- to-day operating funds Additional Funding for Local Schools .In addition to the $83.5 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 - $634,332, an increase of$23,603 .School Resource Officers - $529,410, a decrease of$1,845. .School Social Workers - $642,374, the same funding as the current fiscal year .With these additional non-mandated funding initiatives, the total funding for the local school districts total 48.1% of the General Fund Budget Additional Options For the Savings in Debt Service for Funding Education - Pay down debt service in FY 2011-12 with the savings in expected debt service - Establish a Debt Service Reserve to offset next fiscal year or future years debt service Funded County Initiatives •Maintains all County services at current levels •Fund increases in medical insurance, retirement and 401(k)/457 for non-sworn employees •Increases positions for EMS Communicators and EMTs •Replaces two ambulances •Provides the Sherriff with one transport vehicle and 4 additional patrol vehicles •Recommends the purchase of a Bookmobile to service rural Orange County ■Funds Non Profits at a reduced level from FY2010-11 ■Provides the issuance of$2,152,000 in debt to fund County recurring and long range (pay-as- you go) capital General Fund Expenses - Education —37% - Debt Service-Education — 10% - Debt Service-County—6% - Transfers —2% - Governing and Management—8% - General Services —4% - Human Services— 18% - Community and Environment—3% - Culture and Recreation — 1% - Public Safety— 11% Solid Waste Initiatives .A new annual sanitation household fee to fund additional operating hours at the solid waste convenience centers and related improvements. The fee would provide approximately $320,000 in FY 2011-12 to fund the extended hours and improvements. .A new $5 surcharge on the tipping fees and an appropriation of fund balance from the Solid Waste Enterprise Fund to establish a reserve to fund future remediation costs and improvements for the Rogers Road Community. Total revenues generated would be approximately $240,000 for FY2011-12 .An appropriation of fund balance of$750,000 would used to establish the reserve. Additional Funding Options •Article 46 '/4 Cent Sales Tax •Appropriated Fund Balance, if necessary County Capital Investment Plan Recommended Projects Information Technology $500,000 Affordable Housing $170,000 Register of Deeds $150,000 Roofing Projects $ 55,000 HVAC Geothermal — Link Government Services Center $618,000 Southwest Branch Library $650,000 Southern Human Services Center $280,000 Building Improvements— 112 N. Churton Street $152,000 Building Improvements— 129 King Street $145,000 Lake Orange Capital Maintenance $112,000 New Hope Preserve/Hollow Rock Access Area $ 25,000 Total Capital Investment Projects $2,857,000 Concerns and Issues for FY2012-13 •Health Insurance •Retirement contribution rate increases •Debt Service •County Capital Projects •School Capital Projects •Economic Development •Revaluation •State or Federal Budget Issues •Inflation •Economy Public Hearings and Work Sessions (All Meetings Begin at 7:00 p.m.) Public Hearings — May 19th at Department of Social Services, 113 Mayo Street, Hillsborough May 24th at Southern Human Services Center, Homestead Road, Chapel Hill Work Sessions — May 26th at Southern Human Services Center, Homestead Road, Chapel Hill June 9th at SHSC Work Session/Adoption —June 14th at SHSC Final Adoption —June 21St 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 •Orange County Website •www.co.orange.nc.us 3. Public Comment Chris Harlan is the Public Health Nurse Representative on the Board of Health and she will be stepping down this year. She said that, as she leaves the board, she has great admiration for all who serve Orange County. She knows that the County Commissioners have to make very tough choices. She wants to encourage the County Commissioners to make the welfare of people who do not always have a voice be their top priority. She said that Rosemary Summers and others have worked hard to assure that there are others with strong leadership skills coming up through the ranks as staff and members of the Board of Health. She asked the County Commissioners to at least maintain the core public health services that are essential to the County. As the economy improves, she challenged the County Commissioners to restore many of the services that have been cut recently. Tiki Gwynne spoke on behalf of Frank Porter Graham Elementary School and CHCCS. She thanked the County Commissioners for their past support of education. She encouraged the County Commissioners to pursue the '/4-cent sales tax this fall and to give the same per pupil allocation as in the past. She would love for Orange County to be nationally recognized for its public school education and stand apart from Orange County, California. She encouraged the County Commissioners to please continue the current support of the public school students. Gary Wallach said that he is here to let the County Commissioners know that he supports the Manager's Recommended Budget and the '/4-cent sales tax. He hopes that the County supports the funding for Elementary School #11 in CHCCS. He said that with the legislature, there is a movement to get rid of teacher's aides. He said that this is a bad idea, he has a son with disabilities, and this is a great need in elementary school. Vivian Eto read a prepared statement: "Thank you for the opportunity to address you this evening. My name is Vivian Eto, and I am the Director of Family Support Services at Child Care Services Association. I am here to address the recommendation to eliminate funding for the child care education and referral services provided by Child Care Services Association. Over the past 2 years, CCSA has sustained significant cuts from the County, however, the proposed elimination of all funding this year truly threatens the agency's ability to continue basic services to the Orange County community. CCSA provides child care consumer education and referral services for families in Orange County in order to inform families about high quality child care and facilitate their selection of high quality programs that meet their child's and family's needs. Services are free of charge, available in English and Spanish, and have been recognized for meeting national quality/best-practice criteria. CCSA also has a long history of ineeting program goals and producing strong outcomes on an ongoing basis. In Orange County, an estimated 63% of children under the age of six and 73% of children 6-12 live in homes where all parents work, resulting in a significant need for child care. - Child care is a basic need that helps families sustain their participation in the workforce, reduce dependency on public assistance, and become more financially stable. - High-quality child care also provides children with the dependable, nurturing relationships and safe, stimulating environments that are critical to building strong brains and supporting optimal child development. CCSA's services support those families who face the greatest challenges to self-sufficiency, stability, and access to quality care for their children. In FY 10: - 64% of families served by CCSA had incomes below $35,000/year - 74% were eligible for child care subsidy assistance - 19% were Latino - 56% were single parents Additionally, child care businesses are supported by CCSA's services through free marketing and referrals to their programs, sustaining local employment and providing local revenue to the County. As the single, state-designated service provider for Orange County, CCSA provides key support to families being served by other County departments. CCSA conducts quarterly workshops for Orange County DSS/Work First and provides child care referrals to a significant number of County clients. Of families using our counselor-based services in FY 10: - 24% were referred by Orange County Department of Social Services - 22% were currently receiving subsidy assistance from Orange County DSS - 4% were referred by the County Health Department In this time of extreme funding cuts from all directions, support from the County is even more critical: - Less than 25% of the need for child care referral services is being funded overall and - Orange County Government funding makes up one-third of all of CCSA's funding for services in Orange County - It is important to note that CCSA's funding is program and county specific; the loss of Orange County funds cannot be replaced with other agency funds/resources With the proposed County funding cut, CCSA will not be able to maintain existing levels of service to Orange County, significantly impacting those families most at-risk and in need of child care assistance, including low-income and Spanish-speaking families. We respectfully requested that the County Commissioners reconsider the County Manager's recommendation and continue to fund CCSA for its work with Orange County families seeking child care." Bill Waddell is President of Orange Grove Volunteer Fire Department. He said that their budget is controlled by the Board of County Commissioners. He said that the Manager has recommended that the fire department not get an increase in their fire tax. He said that the roof needs to be replaced. They would like to put on a metal roof to prevent dampness to the building. Secondly, they need more 800 megahertz radios. The firefighters need these for safety and there are not enough to equip all firefighters. If this is denied, the items will be funded out of reserves, increasing the risk for some future financial problem. He pleaded with the Board to give this fire department the increase. Margaret Samuels said that she is here as a representative for her son and his school. She asked the Board to consider funding the increase in the per-pupil funding as they did last year. Tony Blake read a prepared statement: "Thank you for this opportunity to speak. I am here tonight wearing two hats; one as a private citizen and taxpayer, the second as a member of the White Cross Volunteer Fire department and Presidents of the Board of Directors. First, as a private citizen I must say only that I find the fire tax much less onerous and the services that are provided much more visible than some of the other things I pay for in Orange County. I have spoken to no one in my community that objects to funding the fire departments or in particular to this proposed increase. As a member of the Board of Directors and a volunteer, I want to point out what you already know; that is that the district and County at-large is getting a terrific bargain from the services of the volunteers. Even though we do have some paid staff, the cost of duplicating what the district gets for free (the hours volunteers commit to service, maintenance and training) would require a substantial increase in revenues. It is imperative to recruitment and retention of volunteers that the Fire Departments have facilities and equipment that minimizes the risk members are exposed to. This increase will assist the WCVFD with funding facilities and equipment that meets at least the minimum safety standards outlined by the NFPA. In conclusion, I ask you not to short change the bargain we get from the volunteers and to please approve the relatively tine request for an increase." Bonnie Hauser read from a prepared statement: "Thank you for the chance to speak tonight on the budget. We appreciate the work of the county and the board to contain costs and avoid a tax increase despite cuts and uncertainty from the state. First—while we know money is tight—please fully fund the county's 12 volunteer fire departments. The total increase they are seeking about$150,000. As you know, they save us millions of dollars each year. It's a small increase for this highly leveraged network of firefighters and first responders who serve the entire rural community. As you know, each fire department operates under contract with the county and the tax increases will be directly funded by the community that is being served. We are grateful to our fire chiefs and the many volunteers who serve our community. Please help us say "thank you" and agree to fund the small increase they are seeking to continue to keep us safe. Third —thank you for taking on a review of benefits. We don't underestimate this issue but hope that this issue encourages you to consider local residents for part time employment to fill new positions and scheduling gaps. Thank you for working the difficult financial challenges facing our diverse communities. Norma White read from a prepared statement: "I'm from the Schley Community and I'm speaking for Orange County Voice. I'd like to discuss the convenience center hours and new fees. First—We appreciate the county's plan to reinstate hours at the Walnut Grove and Eubanks — but we need every center open on Sunday. The centers are crowded on Saturdays — and illegal dumping is increasing throughout county. By comparison, in Wake and Chatham Counties - Every convenience center is open on Sunday and on every holiday except Christmas and Thanksgiving. Most of the centers are open 7 days a week. We realize that there's a cost—and we are willing to pay for the services that we, as rural customers, use. But not for services that we do not need. For example: • There are 21,000 rural households in Orange County. Of these, 12000 already pay for curbside recycling services from the county. Yet only 60% of this group uses these services. That's 7,200 households, roughly 1/3 of rural households. • On the other hand, 2/3rds of the rural households use the convenience centers. And they consider this a basic service, like schools, libraries and other services that we pay for with our taxes. We are disappointed that this basic service is being singled out for a tiered fee. It artificially separates rural residents from the towns, and assumes that all rural residents are the same. Already there's a 1/3 vs. 2/3 dichotomy in the way the rural community uses these services. Clearly one size does not fit all. Isn't it possible, preferable, and economically reasonable to devise a service model that distinguishes curbside users from convenience center users? And isn't it more reasonable to charge a single fee for each group. One fee, not three. One understandable fee assessed for the services used. We have a petition signed by people from the Schley Community that asks you to 1. oppose any new property tax fees for solid waste convenience centers, for the next 5 years 2. oppose improvements like trash compactors, dump ramps, and paving for the next 5 years 3. support reinstating a 6 day per week schedule, including Sunday. Please open all the convenience centers on Sunday and delay the new solid waste fee until there is a meaningful service model for residents in the rural parts of the county. Please assure us that residents will be invited to participate in the developing a service that that makes sense. Thank you" Steve Graf read from a prepared statement: "As you know, Orange County Voice is on record as opposing the $3 million capital project to pave the convenience centers and add compactors. It's not a bad idea. It's just bad timing. From our perspective—except for the hours - the convenience centers are not broken. The county is not planning to go to Durham in the near future, so hauling efficiencies are no longer a pressing issue. Our concern is that there's no long term vision —and we risk investing in automation, paving and other infrastructure that's designed around a landfill that's soon to close. The long term plan could impact the convenience centers. For example, if the county pursues waste to energy, most recyclables will be combined with trash and converted into energy. That affects separation, hauling, and other factors that are integral to the design of the convenience centers. The county should also seek efficiencies in recycling - which has been impacted by the economy. Based on the county's website, this year the county will spend nearly $4 million on recycling and recover less than $200,000 in sales of materials. If you add back the landfill fees that are avoided, it's a total of$700,000. The numbers are slightly better in the new budget- but it's still very expensive. We're all for recycling — but believe that there are ways to do it for less money. Consider that over 40% of our recycling comes from convenience centers—which are a low cost operation. In contrast, the rural curbside recycling program —collects only15% of the recyclables. With a long term plan, and hopefully a stronger local economy, the county can confidentially invest in convenience centers and other capital improvements that make sense in the short and long term. There's no rush —and there are higher priorities competing for the county's funds. Please defer the convenience center improvements and other capital projects until there's a long term vision for solid waste. Thank you" Stan Cheren read from a prepared statement: He was speaking for the coalition — OCV, RENA/CEER and Justice United who have been working on the mitigation plan for Rogers Road. "We appreciate the board's genuine commitment to the Rogers Road mitigation plan. And as you know, you have our support. We're committed to provide the information you need to plan and fund mitigation for this important Orange County community. As we discussed last week, it appears that the order-of-magnitude estimate for this capital project is $4-6 million - which is largely derived from OWASA's estimate of$3.5 million for the sewer lines. That numbers could change— and you will have a better estimate for your work session in August. We appreciate the county's plan to fund the mitigation with reserves and the tipping fees — but without a firm plan and cost estimates, you don't know how much money is needed. Plus —the towns need to agree to the plan and funding. Given the fiscal climate, debt or other financing may be needed to fund part or the entire project. The Rogers' Road mitigation plan is a top priority and there is nothing that the county is doing in the area of solid waste that is more important. Please defer the other programs until the mitigation plan is set, funding has been appropriated and a real timeline is approved. Thank you" Tish Galu read from a prepared statement: She said that they appreciate the number of hours spent on putting this budget together. As you have heard from others — Bonnie, Norma, Steve, and Stan - there are concerns about how our money is being spent versus what we believe the County needs, especially in this difficult economic environment. "We, Orange County Voice in partnership with RENA/CEER and the member organizations of Justice United, are asking you tonight to send a message that Orange County is no longer investing in its legacy landfill infrastructure. Instead the county is setting a new solid waste priority—to develop a long term plan for handling its waste and recycling —which will set the context for all our investments moving forward. As part of the plan, please seek innovative ways of handling all of our waste streams — including sewage sludge and hospital waste. Plus seek new, less expensive ways to recycle. Explore outsourcing —which as you know is working well for the in-town recycling program that is handled by Waste Industries. A moratorium on new solid waste programs and fee changes could accomplish some of the goals you have for Orange County like putting sewer and water in the Rogers Road community. There are no major service problems today—except the need to expand the convenience center hours. Everything on the county's project list can wait until you have a long term plan in place to handle our waste. This is essential to determine how all other programs and projects should be put into place and their timing. Just as you have made a major commitment to economic development, and we applaud you for that; we need the same commitment for a clear vision for handling our waste. Time is of the essence. These actions would go a long way to assure us that the county is listening and investing in programs that will serve us in the short and long term. Thank you for your service. We are prepared to help if/as you need us." Sam Gharbo applauded the Board of County Commissioners for their meeting last night at the quarterly public hearing. He said that it was a substantive move that was not just lip service. He said that when the Board of County Commissioners had its proposal a few times ago for the Efland sewer system, there was a chart that showed numbers for potential rates. He asked the Board to think about the spirit of the direction that citizens have been following for the past couple of years. The County Commissioners have come to the conclusion that they want to tie to the Mebane rate. The charts that were given use numbers that are theoretical only and are placeholders. These numbers are not actual figures. He said that he appreciated the Board's hard work on the budget. John deFigreiredo said that the school funding is 47% of the County's budget and the County Commissioners have very difficult decisions to make. He said that the per pupil funding is proposed at$3,102 per student, which represents a $6 increase relative to last year. He said that the consumer price index is rising at about 3% per year, so if you take the 3% index and factor that into how much the budget should rise, he would expect a $95 increase per student. The budget proposed is a 3% real decrease in the budget allocation on a per-student basis. He wishes that the County Commissioners would consider that as they consider the future of education in the Triangle and in Orange County. Frank Clifton said that there have been several requests from the fire departments for an increase and this will be part of the upcoming budget work session discussions during fire department reviews. In answer to a question from Commissioner Gordon, Frank Clifton said that White Cross fire department is interested in serving the area that is served by North Chatham at this time. Commissioner Jacobs said that he could see how the fire departments would be confused because the Manager's Recommended Budget recommends no increase. He said that he appreciated the fire departments coming to discuss their concerns. 4. Adjournment A motion was made by Commissioner Jacobs, seconded by Commissioner Foushee to adjourn the meeting at 7:49 PM. VOTE: UNANIMOUS Bernadette Pelissier, Chair Donna S. Baker, CMC Clerk to the Board