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HomeMy WebLinkAboutMinutes - 20020530APPROVED 9/3/2002 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS BUDGET PUBLIC HEARING May 30, 2002 The Orange County Board of Commissioners met on Thursday, May 30, 2002 at the Southern Human Services Center in Chapel Hill, North Carolina. The purpose of this meeting was to hold a public hearing on the County Manager's recommended 2002-2003 budget. COUNTY COMMISSIONERS PRESENT: Chair Barry Jacobs and Commissioners Margaret W. Brown, Moses Carey, Jr. and Stephen Halkiatis COUNTY COMMISSIONER ABSENT: Commissioner Alice M. Gordon 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) NOTE: ALL DOCUMENTS REFERRED TO IN THESE MINUTES ARE IN THE PERMANENT AGENDA FILE IN THE CLERK'S OFFICE. Chair Jacobs welcomed everyone to the meeting. He announced that Commissioner Gordon would not be in attendance tonight because of another meeting, but would review the video. Commissioner Carey made reference to a legislative meeting he attended in Raleigh of the North Carolina Association of County Commissioners. He brought back some information for the Manager, staff, and the County Commissioners. It includes information an the Governor's proposed budget and outlines some of the recommended changes for State departments. He also brought a copy of the proposal by the North Carolina Association of County Commissioners combined with the North Carolina League of Municipalities to the legislature and the Governor to try and get support for protecting the counties' and the cities' revenue over the next couple of years. The proposal includes the adoption of new sales taxes. He said that because it is going to take a lot of pressure on the legislature to adopt this strategy, the NCACC has scheduled a series of County Lobbyists Days over the next month. They are asking county commissioners to walk the halls of the legislature each Wednesday to make the legislature aware of this strategy and how cities and counties will be affected by the proposed State budget. He plans to go there at least one or two Wednesdays to participate. 1. Budget Presentation County Manager Jahn Link made this PowerPoint presentation. He thanked Budget Director Donna Dean and all of the staff that have worked so hard to pull this budget together. He also thanked the two school superintendents and their staff for their cooperation. The proposed General Fund Budget totals $122,850,400. This is a 4.9% increase from last year, which is an increase of $5.7 million. The proposed general fund tax rate increase is 4.5 cents, or 85 cents per $100 of assessed valuation. Nearly two cents of the proposed increase is attributable to funds needed to pay debt service on the sale of the 1997 voter-approved bonds. Past Year Successes In terms of the past year, it is most notable that Orange County remains #1 in the State for education funding. The per-pupil allocation in Orange County is $1,000 more than the second ranking County. The Chapel Hill-Carrboro City School system opened Smith Middle School on the campus of Chapel Hill High School and Seawell Elementary School. Construction has begun on Elementary School #9 located in the Meadowmont subdivision. The Orange County School system will open Cedar Ridge High School in August. The voters approved a $75 million band referendum in November. This will offer residents across the County progressive opportunities for affordable housing, senior centers, parks, recreation, and educational facilities. Since April 2000, almost 800 acres in Orange County have been protected through the Lands Legacy Program. The Central Orange Senior Center opened in January, which is located in the Meadowlands Business Park in Hillsborough. This is the temporary building for the center. The County Commissioners appointed an Innovation and Efficiency Committee, which recommended Segal and Associates, an independent CPA firm to review the County's purchasing practices which they found to be sound. The firm did discover additional sales tax reimbursements of $563,000. One school system has also participated in such a review and the County hopes the other school system will as well. General Fund Revenue Highlights The County's financial picture remains solid. The fund balance remains strong. We are appropriating $2.4 million from the fund balance for this year's budget. This is $1.2 million less than last year's appropriation. The real property tax base increased 4-4.5%. This increased the real property tax base of $300 million from original 2001-02 estimates. Property taxes remain the largest single source of revenue. Regarding the anticipated State withholdings for fiscal year 2001-02, the total anticipated loss for Orange County is $712,200. The tax rate equivalent is .78 cents. This includes inventory tax reimbursements of $454,700; beer and wine taxes of $195,000; and homestead reimbursements of $62,500. The budget includes $3.1 million in State reimbursements for intangible and inventory taxes that are due the County. This is intended to send a clear message to Raleigh that it is wrong and unacceptable for the State to seize funds that rightfully should come to the citizens of Orange County. During June work sessions, the Board should consider whether it wishes to reduce the proposed budget by $3.1 million. There is a possibility of an additional '/ cent sales tax effective July 1, 2003. This is referred to as Article 44. This is intended to replace the local government reimbursements from the State. There are other discussions about addressing the sales tax earlier than July 1, 2003. The staff is recommending that the Board hold a public hearing on an additional '/ cent sales tax levy on June 18t" The interest earnings have decreased significantly this year. This is due to the recession of the economy. General Fund Expenditure Highlights The total general fund appropriation for education increased by 4.9%. The education budget totals $60.6 million or 49.3°~ of the total County budget. He explained the State mandated funding formulas. The Chapel Hill-Carrboro City School system is projected to gain 234 students and the Orange County School system is projected to lose 160 students. The recommended increase based on the formula for CHCCS is $1,392,964 and for Orange County is $115,364. Since the formula has given the CHCCS more money than they requested in the budget, he is recommending that the district tax be reduced by one cent. He is also recommending that another $500,000 of interest earnings on the Certificates of Participation that were used in building Cedar Ridge High School be allocated for one time capital items for this new school. This money could be used to address initiatives identified by the District as important budget priorities such as minority student achievement efforts. There is another major increase in Medicaid expenditures for this year. The proposed budget allows far an increase of $600,000 for next year. The two-year cumulative increase in this mandated expenditure is $1.37 million. The County has created a reserve of existing funds of $110,00 which could be used to offset State related human service budget cuts that occur after the Board approves the County budget at the end of June. This fund was created by reallocating funds from the Department of Social Services and the Child Care Challenge Grant. The proposed budget provides the same funding allocations for non-profit agencies as the current year, and the same funding as last year for the Towns for Recreation and Libraries. Last summer, the County issued $17.4 million of the 1997 voter approved bonds. This represents two cents of the proposed tax rate increase. This budget does not include increases in cast-of-living, in-range salary increases, or meritorious service awards for County employees. It also postpones the implementation of the Countywide Classification and Pay Study until fiscal conditions improve. The County has funded a projected 18% increase in employee health insurance. The proposed budget includes $250,000 to fund the increases for salaries far Deputies, Telecommunicators, and Paramedics. This is a result of the Public Safety Study, which implemented a 5% retention salary increase. The proposed budget provides $12,000 a month far three months to continue the transportation contract with the Orange EMS and Rescue Squad. The staff will examine options and develop recommendations regarding EMS transportation beyond October 1, 2002. Solid Waste Enterprise Fund The Rogers Road neighborhood waterline has been installed. The recycling drop-off center at Carrboro Plaza is complete. The proposed budget includes four additional staff positions to bring the multi-family recycling service in-house. There are two new positions associated with the County's recent adoption of the Regulated Recyclable Materials Ordinance. There will be no increase in the per ton tipping fee for mixed solid waste. The top priority for the upcoming year is to evaluate alternative financing mechanisms to supplement the fund's traditional revenue structure. On the Horizon There will be increased debt service for the first installment of the Board's approved debt-financing plan. It is important to implement the County Classification and Pay Study. There are also start up and construction costs associated with Elementary School #9. A continued high profile item far the County will be development and implementation of the OPC Mental Health business and financial plans associated with State mandated mental health reform. There will also be a major reworking of the County's comprehensive land use plan, and joint park and recreation facilities will be developed. The budget document is available in the office of the Clerk to the County Commissioners, the County Budget office, the Orange County Library, the Chapel Hill Public Library, the Carrboro Library, and some portions are available an the County's Internet site, which is www.co.oran eg nc.us. Chair Jacobs made reference to what is on the horizon for Orange County and said that the social safety net will no longer be in place. Also, there will be as big a budget hole next year as the one this year. He said that when the County Commissioners approve the budget far schools, they approve specific capital items and an operating budget. The programming decisions are made by the school boards, not by the County Commissioners. He asked the public to please keep this in mind when making their comments. He asked that the public keep their comments to three minutes. 2. Public Comments Leigh Zalean spoke in support of daycare. She is a private childcare consultant. She has seen children have better lives because of quality childcare. Tomorrow, there will be a campaign called Stand for Children. This will be a march down Franklin Street. She hopes that the County Commissioners' support will continue. Teresa Smith, with Childcare Services, is the Director of Family Support. She thanked the County Commissioners for putting up a $40,000 challenge grant and hopes that the County Commissioners will repeat this challenge. This money helped 31 children and 25 families attend 12 high quality childcare programs in Orange County. Over half of the children who were helped were under the age of two; 19°~ of them lived in Hillsborough, Mebane, or Efland; 77% were in single-parent families; 74% were working; and the others found employment within a month after getting scholarship assistance. Fifty-four percent of the families served had incomes less than $15,000 a year. She encouraged the County Commissioners to set aside the $40,000 again because the need is great in Orange County. They currently have over 300 children waiting for scholarship help far childcare; 29% of the children waiting are under the age of two; 55°~ of them are in families that are working; and another 26°~ of those families would be working if they had scholarship assistance. Nicole Fearrington, a parent of two children, talked about her appreciation for childcare subsidy. She would not be able to work if it were not for this subsidy. There are parents who cannot work because of the high cost of childcare. Parents want to know that their children are safe and in a learning environment. The funding of $40,000 is very important. Florence Gray Soltys congratulated John Link for his recommended budget. She made reference to a meeting with the Advisory Board on Aging held today about the senior centers in Orange County. They talked about a lot of strategies far keeping the senior centers open. They are mostly concerned with the programs for the frail. There is a reduction of $5,920 for the temporary workers for this program. The respite programs will be in jeopardy if they do not have these temporary workers. The Friend to Friend program will also be in jeopardy without the temporary workers. This is one of the most innovative and well-recognized programs in the Orange County Department on Aging. Also, the proposed cut in RSVP is most likely federal funds and not County funds. This needs to be clarified. If the tax rate is cut at 2°~ this would delay the Adult Day Health Program that is ready to get going. For the Community Alternative Program, the Medicaid waiver, has been frozen. These people are at risk of going into nursing homes, which is more expensive. The State is looking at reducing the CAP from 35 hours a week to 26 hours or less. The Adult Day Health Program will cost far less than the CAP ar a nursing home. Melvin Hurston spoke as a member of the Orange County Board of Health. He thanked the County Commissioners far their support over the years. This past year they received support for new positions, which have helped tremendously. They are concerned about the budget cuts that may be passed on to them by the State. He urged the County Commissioners to keep the $110,000 recommended by the Manager in mind and set it aside in a contingency. The Health Department is functioning at a bare minimum. About 20% of their budget is far necessary operating expenses to take care of County citizens. The Health Department stands to lase as much as $165,000 and another $141,000 is at risk through cuts to the Smart Start program. These cuts will eliminate 4.5 positions -two nurses, a health educator, a social worker, and ahalf-time clerical staff member. Allen Spalt said that he realizes that this is a very difficult year. He thanked the County Commissioners for all they have done for education. The Manager notes that a million dollar cut in capital expenditure for the schools may be necessary if the State follows through on keeping the money which belongs to the County. He is concerned about the implications this may have for the Schools Adequate Public Facilities Ordinance. He asked the County Commissioners to fully fund the school capital investment program so that the SAPFO can go into effect, possibly by next year. If the SAPFO does not go into effect soon, there will be a time of catch up for the schools because of overcrowding. He urged the County Commissioners to make sure that the capital plan is adequate so that the SAPFO can go into effect. Dee Gamble, Chair of the Social Services Board, thanked the County Commissioners for their support. It has been a busy year for them in hiring a new director and collaborating with the Health Department in a campaign to engage the public in awareness and prevention of child abuse. They have examined and approved the budget for the Department of Social Services. The County Commissioners have heard the concerns about the impact of the State budget. Although they are not directly affected at this time by the mental health reforms, they will be. She said that we really have to look at what the quality of life is for the poorest people in our County. For example, Work First is touted as a huge success across the land. There are many more people working now who were formally receiving public assistance whose average annual salary is $7,500. She said that they appreciate the fact that the County Commissioners are concerned about those who are most vulnerable in this community. Dr. Jonathan Klein, physician member of the Board of Health and presently serving as the Chair of the Board of Health, said that it is because of these tough times that the Orange County Health Department needs more support from the County Commissioners. He said that 10.5% (12,500 people - 12°~ white, 21.8% black} of the population lives in poverty. There are 24,000 children under the age of 18. Of those, 12.5% or 3,000 children in our community live in poverty. In calendar year 2001, there were 5,169 children on Medicaid and another 495 were enrolled in Health Choice. In this past fiscal year, more than 58°~ of our clients that received clinical services earned incomes at or below 100°~ of the federal poverty level. At the Board of Health meeting in April, they passed two resolutions that he hopes the County Commissioners will support and forward to the legislature. These resolutions support increased taxes on alcohol and tobacco products, both of which directly affect the health and well being of our residents. These revenue enhancements should support health and human programs that are often impacted by these health risk behaviors. These resolutions have been sent to the County Commissioners. Rosalind Council spoke on behalf of young children in the community. She told about some of those who were helped by the County's $40,000 match last year. Carrboro Early School serves 44 children from infants to five-year olds. They are afour-star center. Every child in the program receives subsidy through Smart Start or DSS. Not one of the families could afford the full cost of care on their own. She thanked the County Commissioners for the matching funds and encouraged them to do the same this year. Commissioner Halkiotis said that he and the Manager attended the Partnership for Young Children Board meeting yesterday and Michelle Rivist was authorized to work with him in putting a letter together. The Partnership Chair Jay Bryan asked that Flicka Bateman pursue a similar program with the Chapel Hill Town Council asking for a letter of support far Smart Start in Orange County that could be sent to appropriate State officials. Michelle Rivist is also going to do a similar presentation for the Carrboro Town Board. He will also bring it up with the Hillsborough officials. He will bring the completed letter to the meeting next week. Commissioner Brown said that it is an excellent story how Orange County has tried to work together with the municipalities. One way we have done this is to not raise the tipping fees this year for garbage collection. It is too bad that the State does not care about the cities and counties. 3. Adjournment With no further comments to be heard, a motion was made by Commissioner Carey, seconded by Commissioner Halkiotis to adjourn the meeting at 8:45 p.m. VOTE: UNANIMOUS The next meeting will be held on at 7:30 p.m. on Tuesday, June 4, 2002 in the F. Gordon Battle Courtroom in Hillsborough, North Carolina. Barry Jacobs, Chair Beverly A. Blythe, CMC