HomeMy WebLinkAboutMinutes 09-22-2011 APPROVED 11/1/2011
MINUTES
ORANGE COUNTY BOARD OF COMMISSIONERS
CHAPEL HILL-CARRBORO BOARD OF EDUCATION
ORANGE COUNTY BOARD OF EDUCATION
JOINT MEETING
September 22, 2011
The Orange County Board of Commissioners met for a joint session with the Chapel Hill—
Carrboro Board of Education and the Orange County Board of Education on Thursday,
September 22, 2011 at 7:00 p.m. at the Southern Human Services Center in Chapel Hill, N.C.
COUNTY COMMISSIONERS PRESENT: Chair Bernadette Pelissier and Commissioners Alice
M. Gordon, Barry Jacobs, Pam Hemminger, Earl McKee and Steve Yuhasz
COUNTY COMMISSIONERS ABSENT: Valerie P. Foushee
COUNTY ATTORNEYS PRESENT: John Roberts
COUNTY STAFF PRESENT: County Manager Frank Clifton, Assistant County Managers Gwen
Harvey Michael Talbert (Interim), and Clerk to the Board Donna S. Baker (All other staff
members will be identified appropriately below)
ORANGE COUNTY BOARD OF EDUCATION MEMBERS PRESENT: Chair ponna Coffey,
Vice-Chair Steve Halkiotis and Board members Tony McKnight, Anne Medenbleck, Debbie
Piscitelli. Superintendent Patrick Rhodes was also present.
ORANGE COUNTY BOARD OF EDUCATION MEMBERS ABSENT: Eddie Eubanks and
Brenda Stephens
CHAPEL HILL-CARRBORO CITY SCHOOL BOARD OF EDUCATION MEMBERS
PRESENT: Chair Jamezetta Bedford, Vice Chair Mia Day Burroughs, and Board Members
Jean Hamilton, and Annetta Streater. Superintendent Tom Forcella was also present.
CHAPEL HILL-CARRBORO CITY SCHOOL BOARD OF EDUCATION MEMBERS ABSENT:
Gregory McElveen and Mike Kelly
Welcome and Opening Remarks:
Chair Pelissier said that Commissioner Foushee is traveling and is unable to attend.
CCHCS Chair Jamezetta Bedford introduced Tom Fortella, the new CHCCS
Superintendent.
OCS Chair ponna Coffey said that Brenda Stephens and Eddie Eubanks were unable to
attend.
Introductions were made.
1. Proqress Report on Quarter Cent Sales Tax: Public Education Campaiqn
Assistant County Manager Gwen Harvey made this presentation and reviewed the
activities as it relates to the educational campaign for the quarter cents sales tax. She showed
the YouTube Public Service Announcement. She went over the following information:
Public Education Campaiqn - Items in Motion
• Finalize and distribute educational materials (flyers and posters) to County departments
and County facilities, public at large, volunteers, and private allies (Chambers of
Commerce and citizen advocacy committee leading advocacy campaigns)
• Collect and use growing lists of FAQs, draft letters to the editor, power point
presentations, public service announcements, and opportunities for the BOCC and
County team to attend special public events to present educational information
• Supplement dedicated County web site with web links and detailed appendices of
information and other public education campaign news
• Encourage County employees to share news and information about the referendum
through
o e-mail "tags" and stationery
• Respond to direct requests from the media and community members on the facts behind
the referendum
• Pursue idea to conduct informal with the Chamber of Commerce Open Houses
(Hillsborough and Chapel Hill) to present to the public conceptual ideas and maps
illustrating possible projects in two economic development districts— Eno River and
Buckhorn (Perhaps School Districts would design and conduct similar for their
stakeholders)
• Continue to develop illustrative talking points for use in opportunities that present— (See
Attached)
Gwen Harvey made a PowerPoint presentation.
The Proposed '/4-cent Sales Tax
On Tuesday, November 8th, registered voters in Orange County will have the opportunity to
vote for or against the 1/4¢ sales and use tax.
People will pay this 1/4¢ sales tax on consumer goods, the things they buy.
The proposed tax is one-quarter of a penny—that's 25¢ (a quarter) for every $100 spent.
This Sa/es Tax Will Not Apply To:
• Groceries
• Gasoline
• Prescription Medicines
• The Purchase of a Vehicle
• Farm Equipment and Materials
• Gas and Electric Bills
• Doctor and Attorney Fees
The Board of County Commissioners for Orange County proposed this sa/es and use tax to help
meet:
• -County Schools Improvement
• -Jobs Creation Economic Development Goals
The proposed 1/4¢sa/es tax will help support schoo/s and jobs.
It will not go to the General Fund.
The proposed 1/4¢ sales tax will raise as much as $2.5 million in a year.
If approved, the tax money will be equally split between education and economic development.
50% For Schoo/s:
• Distributed Per Pupil to County and City Schools for Facility Improvement of Older
Schools and the Purchase of Technology
50% For Schoo/s:
• Will Not Replace the County's Endorsed Funding Target of 48.1% for the City and
County School Systems
• Will Be Added to the Current Budget
• County Will Not Lower Its Planned Ratio of Spending on Schools
• County Will Honor Its Budgeted Commitment to Schools
50% ForEconomic Development
To Help Grow Business in Orange County
• Create a Sustainable and Well-Managed Economic Development Plan
• Attract and Expand Successful Business
50% ForEconomic Development
To Help Grow Business in Orange County
• Money for Job Creation, Entrepreneurs, Small Business Loans, Innovation Centers for
New Businesses and Support for Agriculture Businesses
• For Vital Infrastructure: Water, Sewer, Roadways and Broadband
Who Pays?
• The Proposed Sales Tax Would Apply to People Who Shop in Orange County Including
Visitors, Tourists and Temporary Residents
• A Significant Share Will Be Paid By People Who Do Not Live in the County
• In 2010, Visitors Paid Nearly 20% of the Sales Tax in Orange County
Who Pays?
• Everyone Who Shops in Orange County
— Diversifies the Tax Base
— Shares the Tax Burden Carried by Homeowners Paying Property Taxes
Why Now?
• Because of Limited Commercial Retail Options and Business Sites, the Chief Way
Orange County Can Raise Money for Important Public Services Including Education and
Economic Development is Through Property Taxes
Why 1/4¢ Sa/es Tax Now?
• Can Raise as Much as $2.5 Million in a Year
• To Raise the Same Amount of Money, the Property Tax Rate Would Have to Increase
1.7 Cents
When?
• If Approved, the 1/4¢ Sales and Use Tax Will Begin April 1, 2012 at the Earliest
• There is a 10-Year Commitment to Use Funds for Schools and Economic Development
What Can You Do?
• Vote on Tuesday, November 8th!
• The Wording for the Proposed 1/4¢ Sales Tax on the Tuesday, November 8th Ballot Will
Be:
— For or Against: Local Sales and Use Tax at the Rate of One-Quarter Percent
(0.25%) in Addition to All Other State and Local Sales and Use Taxes
Jamezetta Bedford said that with the prior attempt for this referendum last year, it was
about$25.00 per household per year and she asked if these figures have been run for this
referendum. Gwen Harvey said that this has not been done this time.
Clarence Grier said that they are in the process of updating this information. His
recollection is that it is close to $25.00 per household per year.
Chair Pelissier asked the school system about the uses for capital needs if the
referendum passed.
Commissioner Hemminger said that she is working on the public education campaign
and she asked both school boards if they had the figure for each district of how much funding
was cut by the State.
Mia Burroughs said that the State has cut$5.75 million from CHCCS.
Superintendent Rhodes said that for OCS the figure is $2 million.
Proposed uses for fundinq:
CHCCS Chair Jamezetta Bedford said that they were focusing on some of the older
schools and these were part of their CIP anyway. She said that for all of the schools they need
to work on Information Technology issues.
Donna Coffey said that the OCS would cover some of the same areas - significant
investment in technology, investment in the older schools, and green projects. There are also
some safety issues that need to be addressed.
2. Chapel Hill-Carrboro City Schools (CHCCS) — Overview of Approved FY2011-12
Budqet
CHCCS Support Administrator Todd Lofriese made a PowerPoint presentation.
■ 2011-12 Budget Summary
September 22, 2011
■ Mandates and Continuations
State Mandates
■ Increase in employee health insurance $ 1,500
■ Increase in employer state retirement match $ 447,392
Subtotal $ 448,892
Continuation of Current Services
■ Physical Education/Athletics Coordinator $ 75,000
■ EC positions funded by ARRA grants $ 500,000
Subtotal $ 575,000
Total of Mandates and Continuation of Services $1,023,892
■ Revenues
■ Local Revenues increased slightly but did not fully fund our request.
■ State Funding was significantly reduced. It equated to approximately a $5.75 million
reduction.
■ Budget Reductions
One-time budget allocation for Literacy evaluation and support $ 70,000
Reduce cleaning or custodial service/staff $ 38,000
Eliminate signing bonuses for hard-to-fill teaching assignments $ 25,000
Reduce utility budget due to impact of conservation measures $ 250,000
Reduced local salaries and benefits due to under-spending $ 800,000
Eliminated Mentor Pay $ 83,187
Reduced Classroom Materials $ 188,000
Textbooks (no new adoptions) $ 617,916
Eliminated Triangle Leadership Academy Dues $ 55,000
Eliminate Print Shop Position $ 52,000
Reduce Lead Proficiency Stipends $ 51,000
Reduce Differentiated Pay Stipends ($25 p/teacher) $ 30,000
Eliminate Psychologist Position $ 70,000
Reduce Thematic Academy Stipends $ 15,000
Reduce EC Curriculum Lead Teacher- .5 FTE $ 35,000
Reduce .5 PreK Secretary $ 25,000
Total Reductions $1,516,000
■ Discretionary Reduction
2010-2011 $2,566,670
■ 31.86 Teaching Positions
■ 60 months of CTE teachers
■ $345,884 in Teacher Assistant Funds
2011-2012 $3,394,300
■ 40.36 Teaching Positions
■ 60 months of CTE teachers
■ $785,830 in Teacher Assistant Funds
■ Additional Fund Balance Appropriation
$2,562,913
This amount was allocated to help buffer local expense increases and significant state
reductions.
Jamezetta Bedford said that the school board would like to know if the Board of County
Commissioners is going to issue debt in 2012 so they can build Elementary#11 to be ready by
2013. She said that the school board is willing to use over$3 million of its fund balance, and if
so, they need to be ready in October to move forward.
Frank Clifton said that, based on the analysis of where the County is now, he believes that
the bonds can be sold in August 2012. This would defer the payments until February 2013. He
said that the construction could be moved forward for Elementary#11 if the Board agrees.
Chair Pelissier said that if the school board is going to discuss this in October then it
should send the Board of County Commissioners a request after the discussion.
Commissioner Gordon said that CHCCS is going to need Elementary#11, and referenced
the Schools Adequate Public Facilities Ordinance (SAPFO). She noted that the school is
designed and there is already a special use permit. This only leaves the Board of County
Commissioners going through the approvals to issue the debt. She is supportive of moving this
forward.
Commissioner Hemminger said that she is supportive of this as well, but only if it balances
out with the County and the rates, etc.
Frank Clifton said that a word of caution is that if they use reserve funds, start
construction, and there are delays to the sale of a bond, then that can cause delays and put
more operational pressures on the County and the school systems.
Commissioner McKee said that the only concern he has is with the tight timeframe.
3. Oranqe County Schools (OCS) —Overview of Approved FY 2011-12 Budqet
Superintendent Rhodes made a PowerPoint presentation.
Orange County Schools
Funding Overview
Locally Funded Qualified School Construction Bond Projects (pictures of projects at
Central Elementary, Stanford Auditorium, and roof replacement)
Student Membership for the 2011-2012 School Year
K-5: 3,357 students
6-8: 1,696 students
9-12: 2,307 students
Total: 7,360 students
State Projection: 7,272 students
State Funding Cuts for 2011-2012
Assistant Principal Allotment $117,212
Instructional Supplies $239,353
Central Office Funding $111,912
Instructional Support $35,930
Non-Instructional Support $540,015
Transportation $583,416
Total: $1,627,838
State Funding Cuts for 2011-2012
Pre-K Program $60,902
- Reduced program by 2 classrooms
- 36 fewer students being served
Future Budget Challenges
2012-2013
Loss of EduJobs Funding $1,300,000
(34 Teaching Posiions, 1 T. A. position)
State Discretionary Reversion $2,418,378
Federal Flap Grant $253,000
(4 Elementary Positions, 2 Middle School Positions)
Future Budget Uncertainties
- Federal Budget Picture
- Transfer of Costs to LEAs
o Workers compensation
o School buses and insurance
- Charter School Expansion
Steve Halkiotis said that after being told to expand the Pre-K spaces, now the legislature
would prefer for these kids to go into the private sector from the public sector. He said that this
is incomprehensible.
Commissioner McKee said that he has been speaking to several groups around the
County on the quarter-cent sales tax and he has been stressing that the monies that may come
in from the sales tax is a critical factor in extending the life of our schools.
Superintendent Rhodes echoed what Commissioner McKee said and said that the
average age of the schools in OCS is 35 years.
Debbie Piscitelli said that the technology issue transcends all schools and it is expensive
to try and play catch-up with technology.
Jamezetta Bedford said that at one time CHCCS was at the forefront of technology but
now even some of their teachers do not have laptops.
4. County Update - Preliminary FY 2010-11 Year-end Revenues, Expenditures and
Chanqes in Fund Balance
Financial Services Clarence Grier said that this is a quick overview of the County's
General Fund.
General Fund — Preliminary Results for FY 2011
Attachment 4a— Preliminary 2010-11 General Fund Revenue
- For Fiscal Year 2011, we received 100.2% of budgeted revenue. This resulted in an
excess of budgeted revenue of approximately $301,000
- The shortfall varied among all categories of revenue
o Property taxes were $2.85 million more than budget
o Sales taxes were $652,000 more than budget
- Appropriated Fund Balance totaled $2.8 million consisting of:
o $1.8 million in encumbrance carry forwards
o $0.9 million for new and continuing programs
Attachment 4b— Preliminary 2010-11 General Fund Expenditures
- Expenditures were $5.2 million less than budget or 97.1% of budget
- Expenditures were less than revenue by $5.6 million which represents an increase in
total fund balance for the fiscal year.
- Total Available Fund Balance is estimated at $29.1 million or 16.5% of General Fund
expenditures and transfers
- Unassigned (Undesignated) Fund Balance is estimated at $27.9 million or 15.8%
General Fund expenditures and transfers
- Unassigned/Available Fund Balance is $6.8 higher than FY 2010
- Unassigned (Undesignated) Fund Balance is estimated to increase 1 percent this year.
If achieved, the Unassigned (Undesignated) Fund Balance will grow to 17 percent and
meet the BOCC's fund balance target
Attachment 4c—General Fund — Chanqes in Fund Balance for the fiscal year ended, June
30, 2011
- Restricted/Reserves for Inventories and Prepaid Expenses increased $35,237
- Restricted/Reserves for Encumbrances were reduced $1.04 million
- Reserved By State Statute decreased $1 million
- Assigned/Designated for Subsequent Year's Expenses increased $730,000
- Unassigned/Unreserved Fund Balance increased $6.8 million
Frank Clifton said that the County has buckled down with the budget and many positions
are still empty or frozen. Out-of-state travel has also been limited. Orange County is one of the
highest per-capita income counties in the State, but also one of the lowest per-capita in sales
tax generation, because most people shop elsewhere. Any growth in the retail base is positive
for everybody.
Commissioner Jacobs said that he would like to address the issue of complacency and
discouragement. He said that there were other issues that they could have discussed tonight,
several of which were from the School Collaboration meeting in September. He said that if they
are really fighting for education, then they need to bring up topics that are important and they
need to become more engaged and proactive.
Chair Pelissier said that there was discussion about the funding issue, but they need to
look at more information. There will be more discussion in the future when there is more
information.
Commissioner Gordon asked if the school systems were coordinating any efforts relating
to the '/4 cent sales tax referendum, and indicated that she would like the Board of County
Commissioners to know what was being done
Jamezetta Bedford said that many of the school board members are up for election and
there is a forum next week, and she is sure these questions will come up.
Commissioner Hemminger said that there is an endorsement from every candidate
running and she does encourage everyone to educate their friends and neighbors that it is only
a '/4 of a cent.
Donna Coffey said that the OCS website is linked to the County's website with
information about the '/4-cent sales tax.
Commissioner Gordon said that she would like to see the school systems' list of projects
for this allocation. The school systems agreed to provide this information.
With no further items to discuss, the meeting was adjourned at 8:32 p.m.
Bernadette Pelissier, Chair
Donna S. Baker, CMC