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HomeMy WebLinkAboutMinutes - 06-21-2001APPROVED 12/11/2001 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS BUDGET WORK SESSION JUNE 21, 2001 The Orange County Board of Commissioners met for a Budget Work Session on Thursday, June 21, 2001 at 6:00 p.m. in the Southern Human Services Center; Chapel Hill, North Carolina. COUNTY COMMISSIONERS PRESENT: Chair Stephen H. Halkiotis and Commissioners Margaret W. Brawn, Moses Carey, Jr., Alice M. Gordon, and Barry Jacobs COUNTY STAFF PRESENT: County Manager John M. Link, Jr., Assistant County Manager Rod Visser, Clerk to the Board Beverly A. Blythe (all other staff members will be identified appropriately below) NOTE: ALL DOCUMENTS REFERRED TO IN THESE MINUTES ARE IN THE PERMANENT AGENDA FILE IN THE CLERK'S OFFICE. 1. Chair Review of Schedule and Topics Chair Halkiotis reviewed the agenda. 2. Courtesy Review of Hampton Pointe Proposal Craig Benedict reviewed the Hampton Pointe Proposal. He said that this project is an approximate 500,000 square foot retail proposal with two primary buildings of approximately 200,000 square feet and five out parcels of approximately 20,000 square feet each on two acres. He said that the project is the same as presented in January except the developer moved the shops away from the railroad to the internal part of the project and added 3,000 square feet to the project. The project was originally proposed in early 2000, but was temporarily put on hold pending the findings of the joint EDD workgroup. The primary emphasis of the Board was to provide a mixed land use of office, residential, retail, and industrial. The Town of Hillsborough will be reviewing this on Monday night, June 25t" Because of the traffic impacts, the staff suggests only 200,000 square feet of retail and 200,000-300,000 square feet of office. This would also reduce the parking space area and provide more green space. He volunteered to speak at the public hearing in Hillsborough on Monday. Commissioner Brown asked if Hillsborough was going to vote on this on Monday and Craig Benedict said that it is very possible that this will be voted up ar down on Monday evening. He said that one of the sentiments is that this kind of development will hurt the development of the remainder of the EDD. This project, if it is 100% retail, will consume the retail development in the remainder of the EDD. Commissioner Brown asked if there is a projection of the sales tax and property tax revenue that will be derived from a development of this kind and Craig Benedict said that an economic analysis was done to show that information plus the water revenue from this development. The main concern is the impacts the project will have on the remainder of the area. There will be considerable tax benefits as a result of this project. Chair Halkiotis said that he and Commissioner Jacobs have been representing the County Commissioners this past year an the EDD work group. He is very disappointed with this proposal. He feels that the work that Craig Benedict has done on this has not been considered in this final plan. This is not what we had envisioned for the entranceway into Hillsborough. Craig Benedict has worked with Hillsborough and given them a lot of hours to be sure that this is something that would benefit the area. He would encourage the Town Board not to approve this plan. The developer has put the rail station in a place that is not feasible. Commissioner Jacobs feels that the developer has an impervious surface for a brain. No matter what we say, the developer comes back with the same plan. He said that it is very sad that Hillsborough would consider stooping to this level. This is a perfect example of how you can choke a town with traffic. He does have a high degree of respect far the Town Commissioners. He would start out with making a statement about the purpose of the EDD and that traffic is a concern, and that this development does not adequately address traffic concerns. He thinks it is a goad idea to reduce this project by 150,000 square feet. He would like to make the statement to encourage Hillsborough to carefully examine the environmental effects of this development, particularly the reduction of buffers and the increase in impervious surface. He thinks that we would have concerns that this will undermine the viability of a larger EDD. He made some editorial changes on page five, which were sa noted by Craig Benedict. Chair Halkiotis authorized Craig Benedict to go forth and speak on his behalf. There was a consensus to empower Craig Benedict to go forth and present these paints an June 25th to the Hillsborough Tawn Board. Commissioner Brown asked if Hillsborough was desperate to get some kind of retail development and was therefore willing to settle for something like this. Chair Halkiotis said that he thinks the Town is desperate for something to increase the tax base and that the developers realize this. 3. Additions, Deletions and Other Modifications to the Manager's Recommended 2001-02 Operating Budget John Link made reference to the buff-colored copy of the budgetlband materials. He suggested an order of discussion for each of the issues. He reminded the Board that the recommendation for the countywide tax rate is 81.5, which is a real tax increase of 3 cents after revaluation. The recommendation for the Chapel Hill-Carrboro district tax is a real tax increase of 2 cents after revaluation, which is 20.2 cents. Commissioner Gordon asked if it was appropriate tonight to discuss impact fees and Chair Halkiotis said that he is in favor of discussing it tonight and the Board decided to discuss the impact fee at or near the beginning of the agenda. School Funding and CHCCS District Tax John Link made reference to the two scenarios for school funding and said that he was not able to reach either superintendent to get a response. Nick Didow, Chair of the Chapel Hill Carrboro City School Board, said that option two in the County Manager's letter of June 19th would be the preferred. They would certainly not stand in the way of the Orange County system to do what they need to do. In answer to a question from Commissioner Jacobs about fund balance, Nick Didow said that they are willing to spend their fund balance down to the 5.5% level. The original budget proposal to the County Commissioners was to spend about $900,000 of that fund balance toward annual operating expenses this year. They are comfortable with spending it down to 5.5°/a. The vast majority of the additional funds beyond $900,000 would be spent on renovation and capital projects depending on the amount of local and state funding. If the County Commissioners have some particular endorsement of capital projects they would like to call to the school board's attention, the school board would welcome that input. Commissioner Jacobs suggested spending some of the fund balance for planning for the Elementary School #10. Nick Didow said that one of the highest priority capital projects for using those funds would be to use it for that reason. In answer to a question from Commissioner Carey, Nick Didow said that the $900,000 was not earmarked for any particular project. In answer to a question from Commissioner Gordon about $6,000,000 for the high school space as recommended by the Capital Needs task force, Nick Didow said that the School Board endorsed the Task Farce recommendation for high school space and said that the $6,000,000 would be used for planning High School #3 and for the other items in the Task Force recommendations to accommodate the increase in high school enrollment. Impact Fees John Link recommends as requested by the Orange County school system $3,000 far single family detached and $1,420 for all other residential. For the Chapel Hill-Carrboro City system, it would be no less than the amount required to produce the same projected revenue that they are now receiving. Budget Director Donna Dean will figure this into the chart and bring it back. Discussion ensued about the supportable impact fee. Commissioner Gordon feels that the Board should respond to what the school boards have requested. By looking at the total number of students in the Chapel Hill-Carrboro City School system, there is a deficit of 140 seats. In the Orange County school system, 550 seats are available right now. She said that the Chapel Hill-Carrboro City Schools desperately need the money due to a rapid increase in the number of students and she thinks that is part of the reason that they asked for the maximum supportable impact fee. She is interested in going as high as we can to meet their request except for the "all other residential" category - no higher than $3,000 which is the current impact fee. She is talking about a $6,000 impact fee for new growth to help pay far itself. Commissioner Carey said that 56°l0 of the maximum supportable fee for Chapel Hill-Carrboro is $4,113 for single family and $1,846 for all other. That would be comparable to the 56°l° that the County fee is set at. He cannot support a maximum fee of $6,000 for an impact fee. He can support a fee set at 56% of the maximum supportable fee for both school systems. Commissioner Jacobs said that he would not like to penalize one school system by getting another up to speed. He thinks, in this case, we are talking about generating an additional $800,000 in impact fee revenue by using 56°~. He feels it is the County Commissioners' job to strike a balance. Commissioner Gordon said that she could not emphasize enough the difference in the number of students between the two school systems. She said that impact fees were not her favorite way of raising revenue but it is something. She would rather have an impact tax. Commissioner Carey said that the impact fee is just a contributor toward the revenues needed for schools -not the main source of revenue. He said that the County Commissioners try to meet all the needs of the schools but cannot provide all that is needed. He thinks that both systems have requested too much far impact fees, but he is willing to be flexible. Bonds are the way to meet the big-ticket items far the schools. Chair Halkiotis said that he does not want to penalize anyone unnecessarily regarding the impact fee. He said that the housing in the southern end of the County was very different than that in the northern end of the County. He is concerned about affordability and haw a maximum supportable impact fee would negatively affect some people. He would like to look at the charts again. John Link will have several examples for the County Commissioners to consider at the meeting on Monday, June 25th. Craig Benedict said that to make the impact fees defensible and supportable the percent would have to be the same in each category -single family detached and all other residential. Current Expense far Schools The recommended amount from the Manager is $2,437 per pupil. Based on that, the amount as recommended for the Chapel Hill-Carrboro system is $24,808,660 and for the Orange County system is $15,976,972. Commissioner Carey asked about the possibility of providing Orange County schools with more funds and John Link said there is an option to make a provision for an amount between $300,000 and $350,000. John Link said that in that particular option the per pupil amount is not affected. That decision would be made by the Orange County School Board. The impact fees revenue would actually replace some of the pay-as-you-go sales tax money used for Cedar Ridge High School and that money would be transferred to the operations side of the budget. Commissioner Gordon asked if this was one time and for only one year. John Link said that, in his opinion, it is based on the unexpected and controversial projections by the State Department of Public Instruction as to the number of students projected for the Orange County system. He feels that this meets the definition of an unexpected, unforeseen emergency. As he understands the statute it is what the County Commissioners and the school board agree to and the Chapel Hill-Carrboro City Schools support. This action would not have to take place by June 25th. The decision on the amount of the impact fee is important. New Staff Positions Agricultural Resource Development Specialist (Economic Development): The Board was in support of this position. Emergency Management Specialist (EMS): Commissioner Brawn asked if this could be a three-year time limited position and EMS Director Nick Waters said that it could be atime-limited position to accomplish the work. However, the plan really needs to be a living document so the position really should be ongoing. Commissioner Jacobs said that he would like to see us hold off and see if we can develop the plan another way. The Board agreed to hold this position and consider it later in the agenda. Environmental Health Program Specialist -Food and Lodging (Health Department: Commissioner Jacobs would like to start this position at the first of the year, January 1, 2002. The Board was in support of this position starting on January 1, 2002. Environmental Health Program Specialist -Well and Vllastewater (Health Department): The Board was in support of this position. Medical Interpreter (Health Department): Commissioner Jacobs suggested that the Manager, the Health Director, the new DSS Director, and the Human Relations Director come up with a master plan for dealing with translation services and see if we can have a coordinated plan. He suggested delaying this position until we have a master plan that the Board of County Commissioners has adopted. This position will be contracted until we come up with a better plan for all the language positions. The funding will begin January 1, 2002 after a plan is developed. Nutritionist (Health Department}: The Board decided to hold this position and consider it later in the agenda. Open Space Design Specialist (ERCD~: Commissioner Jacobs would like to hear back from the Manager about how Parks and Recreation, ERCD, Public Works and how it all fits together. John Link recommended beginning this position October 1, 2001. Commissioner Brown would like to know what this position is going to include specifically. The Board decided to start this position on January 1, 2002, if the plan is decided upon by then. Rehabilitation Specialist -Urgent Repair Program (Housing and Community Development): This position can be funded by the funds set aside for affordable housing. The Board was in support of this position. Senior Personnel Analyst (Personnel Department}: Personnel Director Elaine Holmes explained that this would allow us to meet the expectations of the Personnel Department in terms of advancement, employee development, incentive programs, training, policy work, etc. It would also allow Elaine Holmes the necessary time to work on the organizational assessment and other organization issues that the County Manager has requested. The Board decided to hold this position and consider it later in the agenda. Code Enforcement Officer III {Planning Department): The Board was in support of this position. Environmental Compliance Officer {Planning Department): Craig Benedict said that Qrange County was the first County in North Carolina to adopt areas within the Neuse River basin that include storm water rules far nitrogen control for development activity. This also has to do with enforcing the buffers along the streams. This position would also work with the National Pollution Elimination Discharge System that is in process for the Cape Fear basin. The Board decided to delay this position for one year in order to try and find some state funding. Jahn Link suggested that we should share with our friends in Raleigh that we too face the same kind of budget restraints that they do, and while we intend to proceed with this, we will proceed quicker with their help. Planner II -Comprehensive Planning {Planning Department): Commissioner Jacobs would like to see how Craig Benedict could do this by using a consultant. Craig Benedict said that consultants usually generate more generic plans. Commissioner Brown asked if this position could also work on same of the Neuse River responsibilities after the comprehensive plan is finished. Craig Benedict said that the exact person could probably not assist in the Neuse River work, but a related person could, such as a Planner II. The Board decided to hold this position and consider it later in the agenda. Building Maintenance Mechanic -Ground (Public Works): The Board was in support of this position. Recycling Materials Handler -Government BuildingslElectranicslBatteries {Solid Waste Enterprise Fund): It was clarified that the County's Public Works Department is now picking up the recycling from County offices in Hillsborough. Gayle Wilson said that the Solid Waste Department picks up recycling from the Town of Chapel Hill offices and Carrboro's town hall. Commissioner Brown asked when the recycling of batteries, etc. would be made mandatory. Gayle Wilson said that once we get a program established over a period of one to two years, certain recyclable material could be made mandatory. Jahn Link said that the Recycling positions could be acted upon later in the year because they are being funded through the Solid Waste Enterprise Fund. Recycling Specialist - C&D Education and Enforcement {Solid Waste Enterprise Fund): This position was held until later in the year. See above discussion. Donna Dean gave a tally of the positions that were held and added and the cost impact. The total savings so far is $166,757, which is .19 cents on the tax rate. Held Positions Emergency Management Specialist {EMS): The Board agreed to set aside $8,500 in local matching funds and that the staff will come back with a plan in early fall as to other sources of revenue for this position. Nutritionist {Health Department): Health Director Rosemary Summers said that they had originally requested afull-time position and cut it back to half time so the clientele could be built. The position would provide medical nutrition therapy for chronic conditions (diabetes, cardiovascular disease, and pregnant and postpartum women). This is primarily far law-income clients. The cast is projected at $7,000 from County funding. Commissioner Jacobs asked if this would ever be a full-time position and Rosemary Summers said that the only way this position would be full-time is if the revenue is generated and there is a demand for the services. The Board was in support of this position. After one year, the Board will look at the revenues and the clientele generated. Senior Personnel Analyst (Personnel Department} Commissioner Brown said that, in looking at the functions of this position, most everything is what the County Commissioners have asked for. Commissioner Carey would like to eliminate this position. Commissioner Jacobs and Chair Halkiotis agreed. Planner II -Comprehensive Planning (Planning Department}: Commissioner Jacobs said that he could support this position if Craig Benedict could assure the County Commissioners that comprehensive planning would be a more effective branch of the Planning Department. The Board was in support of this position. Changes to Existing Staff Positions Time-Limited Position to Permanent Positions John Link explained that these are existing positions. He does not see the need far these positions decreasing because the work is ongoing. The Board was in support of all the changes in the positions from time-limited to permanent. The positions are: Tax Clerk, Public Health Nurse I, Social Worker I, Social Worker II, and GIS Technician. Increases in Hours Arts Director (Arts Commission}: The Board agreed to leave this position as it is and not increase the hours. 2 Assistants to the Clerk (Board of County Commissioners}: Commissioner Jacobs proposed waiting until the organizational assessment is done to make changes to these positions. The Board agreed to hold these positions until the organizational assessment is completed. Dental Office Assistant and Dental Program Coordinator (Health Department}: Rosemary Summers said that these two employees were basically working full-time already. The revenue has grown as a result of the employees working full-time. The Dental Office Assistant calls the appointment lists on Sunday night for Monday to make sure that the patients will be in the dental chair. She has taken this on her own to do the calling. The Board was in support of these two positions. Public Health Nurse I -Immunization Tracking (Health Department}: The Board was in support of this position. Office Assistant II -Personal Health (Health Department}: Rosemary Summers said that this position has been half time. This employee has produced the first communicable disease newsletter that has gone out to physicians. The Board was in support of this position. Transportation Coordinator (OPT and Social Services}: John Link said that this position relates to additional transportation coverage far Wark First. The Board was in support of this position. rate The net reduction in the general fund budget is $236,000, which equates to .27 cents on the tax Pay and Benefits The Manager's recommendation for the cost-of-living adjustment is 2.5°~6, which is $672,553. Commissioner Brown agreed with the recommendation. Commissioner Jacobs proposed the cost-of-living adjustment to be 2°~, which would be a saving of $134,600. He is also proposing the possibility for merit pay. Commissioner Gordan and Chair Halkiotis supported Commissioner Jacobs' recommendation. Commissioner Brawn distributed same different scenarios - 2.5°~ far all employees making below $40,000 and 2% for all employees making above $40,000. Commissioner Carey also supported Commissioner Jacobs' recommendation. Commissioner Brown was not in favor of decreasing the cost-of-living adjustment. Jahn Link said that he could cut $200,000 out of the operating budget if it means preserving the salary increase. Chair Halkiotis did not have a problem with this. Commissioner Jacobs asked why $200,000 out of the operating budget could not have been cut in the first place. John Link said that the operating budget is pretty lean and it would be difficult to find $200,000 to cut. He said that the 2.5% salary increase was important enough to him to cut the operating budget. This will cut travel from many of the departments. He will bring a proposal on June 25tH The Board agreed to keep the 2.5% cost-of-living adjustment and hear the Manager's proposal on cutting $200,000 from operating expenses. The Board was also in support of the 2.5°~ in-range salary increases and the increase in the 401 (k)-plan contribution from $15 to $20 per pay period. Outside Agencies Chair Halkiotis asked for a follow up report on how the outside agencies spent the money and how they determined where the money was spent. John Link will provide this information. Chair Halkiotis made reference to the Fairview Park and said that he did not like the appearance of it -the grass had not been trimmed, a fence was rotting, and the sign was in disarray. He said that there should be daily maintenance of this park. John Link pointed out that they are moving the $2,000 that was earmarked for the Disability Awareness Council to miscellaneous until the new DSS Director has an opportunity to work with the Disability Council to ascertain the best use of these funds. The Board was in support of the funding levels far the outside agencies. Countywide Tax Rate Fire District Tax Rates Assistant County Manager Rod Visser said that Hillsborough did fund the full $300,000 for the Hillsborough Fire Department. Regarding South Orange Fire District, the figure an the sheet is .2 cents higher than what was in the Manager's recommended budget. This will allow the South Orange Fire District to generate enough tax revenue to meet the contractual obligations to support the Town of Carrboro's fire departmental budget. The Board was in support of the recommended fire district tax rates. Schedule of County Fees The Board was in support of the schedule of County fees. Donna Dean gave an update on the savings in the general fund budget - $436,344, which equates to .49 cents. Education funding from the general fund with all the changes made on the County side is 49.37°r6. 4. BREAK There was no break. 5. Additions, Deletions and Other Modifications to the manager's Recommended 2001-02 Interim CIP John Link made reference to page four, item five of this document. Commissioner Jacobs distributed a list of proposed budget reductions. These are listed below: $25,000 domestic partner insurance 40,000 sales tax found by Segal 75,000 BOCC Contingency 50,000 Refinance 1994 bonds 17,000 not fund Emergency Management Specialist 37,000 delay Food/Lodging Inspector, 6 months 2,000 delay Nutritionist, 3 months 46,000 pay rehab position from housing fund 50,000 not fund Personnel Analyst 9,000 delay increased Transportation Coordinator one year until study done 17,000 delay ESL Coordinator, unfilled since 7100, 6 months 35,000 not fund Administrative Assistant, Public Works, unfilled since 11199 15,000 delay child care challenge fund, 6 months 38,000 delay school nursing initiative, 3 months Commissioner Gordon suggested cutting the Board of County Commissioners' contingency fund and to reassure the Clerk's office that there will be money for the Deputy Clerk position. The County Manager has assured the Board that he would work with the Clerk's office and the County Commissioners to be sure that money is available for the Deputy Clerk's position. Commissioner Jacobs asked that when positions are vacant for more than one year that the County Manager report back to the County Commissioners on why the position has not been filled. John Link does not recommend that the Public Works Administrative Assistant be eliminated. He said that he would report back on what this position includes and the need for it. The total now is a savings of $666,000. This does include a $40,000 grant that was received by the Sheriff. This will offset the currently budgeted salaries. Commissioner Jacobs also suggested adding the money back in for the cybrary, Carrboro, and the Northern Center. Commissioner Brown feels that this is premature and wants to wait on the cybrary and the Northern Center. Commissioner Gordon agreed. Commissioner Gordon would like to give additional money to the two school systems for operating expenses for the two school systems. Chair Halkiotis said that he feels that the two school systems need to look at their budgets to find extra money. The schools should be streamlined and efficient. Everyone should ask his or her staff to cut back. He agrees that money going into the classrooms should be enhanced, but he does not want the Manager to be the only one cutting things out of the budget. Commissioner Carey feels we need to wait on the $60,000 also far Carrboro and the cybrary. The total savings is $729,000 so far. The Board decided to cut $10,000 from child care challenge by delaying it far six months instead of three months. The total savings is now $714,000 with $175,000 fund balance with 49.45°~ for education. The Board agreed with the district tax increase of two cents as recommended. Continued CIP This Resolution of Intent to Adopt the 2001-02 Capital Project Ordinances and Interim Capital Investment Plan is beginning on page six of the buff-colored document. Budget Director Donna Dean said the projects in item one are already receiving funding and are not new projects. The list is just an extension of the project end dates. The level one projects in item fins include additional funding for this year only. The level two projects in item three are the major projects that the Board has elected to approve an a phased basis. A motion was made by Commissioner Gordan, seconded by Commissioner Jacobs to approve and authorize the Chair to sign the Preliminary Resolution of Intent to Adopt the 2001-02 Orange County Budget, which is incorporated herein by reference. VOTE: UNANIMOUS A motion was made by Commissioner Gordan, seconded by Commissioner Carey to approve and authorize the Chair to sign the Resolution of Intent to Adopt the 2001-02 Capital Project Ordinances and Interim Capital Investment Plan, which is incorporated herein by reference. VOTE: UNANIMOUS 6. Continued Discussion of November 2001 Bond Referendum and Related Capital Funding Matters John Link said that The Board's discussion on the November 2001 bond referendum has been under the assumption that the amount will be $75 million. Environment and Resource Conservation Director David Stancil gave a report on the potential land acquisition projects for the bond referendum. The Capital Needs Task Force left this side of the bond open-ended and recommended that projects be selected. He has tried to use the work of the Open Space Task Force in regards to potential matching revenue sources, etc. Page seven has a summary of projects. He summarized each of the projects. Commissioner Brown said that she feels it is important that the money for the green ways should be viewed as a joint effort between Chapel Hill, Carrbora, and Orange County. Commissioner Jacobs said that Chapel Hill was very supportive of this concept. John Link said that the County Commissioners must determine the amount not to exceed for any particular function and for the bond. Commissioner Gordon asked if the final decisions on the exact amounts could be delayed until Monday night, June 25t". The Board agreed. Bond Attorney Bob Jessup said that the basic rule for putting items on an individual ballot question is that bonds for related purposes can all be an the same question, but bonds far unrelated purposes cannot be on the same question. Regarding farmland preservation easements and the question of whether it is related to parks and recreation, farmland preservation easements do not provide public access. He said that the question is what group of things are related. In his opinion, buying open space and buying space that is going to have public access is related to active recreation purposes. Discussion ensued about the individual questions on the ballot far the band. Commissioner Jacobs brought up some changes on the band list in the orange document. On page one of six for the County Facilities, it should say "proposed (not approved by Board of County Commissioners)." On page two for Orange County library and the amount of funding, there is $100,000 under "other" and there is private money available. He said that this should be reflected. On page five of six, he suggested moving Central Office Expansion and Hillsborough Elementary Renovations to the "other" column because some people in one school district Hated that things were being put under alternative financing for one district and not for the other. He suggested putting them all under "other" to eliminate confusion. 7. Adjournment With no further items far the County Commissioners to consider, a motion was made by Commissioner Gordon, seconded by Commissioner Brown to adjourn the meeting at 10:40 p.m. VOTE: UNANIMOUS The next regularly scheduled meeting will be held on Monday, June 25, 2001 at 6:00 p.m. in the Board Roam of the Southern Human Services Center in Chapel Hill, North Carolina. Stephen H. Halkiatis, Chair Beverly A. Blythe, CMC