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HomeMy WebLinkAboutMinutes - 20020620 APPROVED 10/15/02 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS BUDGET WORK SESSION 7:30 p.m. June 20, 2002 The Orange County Board of Commissioners met in regular session for a budget work session on Thursday, June 20, 2002 at 7:30 p.m. in the boardroom of the Southern Human Services Center in Chapel Hill, North Carolina. COUNTY COMMISSIONERS PRESENT: Chair Barry Jacobs and Commissioners Margaret W. Brown, Moses Carey, Jr., Alice M. Gordon and Stephen Halkiotis 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. 1. Chair Review of Schedule and Topics Chair Jacobs said that there are two public hearings being held tonight. The first one is on the Article 44 Sales Tax and the second is on the 2002 Orange County Legislative Agenda. Also, at the County Commissioners' places, there is a blue sheet, which reflects an amendment to the Legislative Goals. There is also a yellow sheet, which summarizes some of what the State Senate decided to do regarding the budget. 2. Public Hearing —Article 44 Sales Tax John Link referred to the rose colored document in the agenda packet. He made reference to the third page and said that the General Assembly increased the State sales tax by % cent (to 4.5 cents) effective this year until July 1, 2003. The law authorizes the counties to enact a local % cent optional sales tax that would be effective July 1, 2003. It could also be enacted later. The tax proceeds will be allocated among participating counties with 50% on the basis of population and 50% on the basis of point of origin. Food purchased for home consumption would be exempt from Article 44. The new tax is intended to replace the existing State reimbursements, which will be repealed effective July 1, 2003. The sales tax would generate for Orange County approximately $3,318,669. Chair Jacobs made reference to the Senate bill that passed and said that it includes a hold harmless provision so that, even if the sales tax started later, it would raise the same revenue that we might have otherwise realized in reimbursements. Also, the Senate has authorized counties to enact this tax without a public hearing. Commissioner Carey verified that the sales tax would generate the same amount that the County is losing from the State from existing state reimbursements. John Link pointed out that we have been advised to conduct another public hearing before the summer break that would indicate to the Department of Revenue our intent to enact the sales tax. There is a placeholder on the June 27`h meeting for such a public hearing. Commissioner Halkiotis asked what we would do if the action taken by the Senate yesterday, which would give teachers a 1.8% salary increase, was put in place. He said that both school systems did not factor in an increase in salaries. He asked where the County would find the money to pay for this and other things that the State decides to do after the tax rate is set. John Link said that the worst-case scenario would be that the State would do this and not enact the % cent sales tax effective July 1, 2002. If they do give counties the authorization to enact this % cent sales tax effective earlier, the County would then amend the per pupil amount for both school systems. Commissioner Halkiotis suggested that the legislature should have all of this done before June 30, 2002 so that counties can set their budgets knowing all the facts. Public Comment Neal Tapp spoke against the % cent increase in the sales tax. He would rather see a food tax where everybody would pay. He does not understand why the tax is for next year and not this year. Chair Jacobs clarified that the legislature authorized this tax to start next year. Jamie Daniel said that he has read about Article 44 and that when this tax does go into effect, people out of jobs will not be able to make ends meet. He gave an analogy about a child who will not understand that she will have less because of the enactment of this sales tax. He said that we are doing this for the children, for education, but we are taking things away from the children. People are going to have to move somewhere else because they will not be able to afford to live here. He said that with 160 less students in the Orange County Schools, we are not leaving any children behind —they are leaving us. A motion was made by Commissioner Carey, seconded by Commissioner Halkiotis to close the public hearing. VOTE: UNANIMOUS 3. Public Hearing =2002 Orange County Legislative Agenda Geoffrey Gledhill summarized the information in the agenda packet. Commissioner Carey asked about the anti-discrimination effort from last year. Geoffrey Gledhill said that it passed the House but got stuck in the Senate. The burning bill also was passed in the House but got stuck in the Senate. Chair Jacobs made reference to advocating for the increase in cigarette tax, and said that what we are saying is that a portion should be dedicated as a funding source for the Farmland Preservation Trust Fund. Similarly, with the alcohol tax, a portion should be dedicated for mental health and substance abuse rehabilitation treatment programs. Commissioner Gordon made reference to funding for bikeways and trails and asked if this includes sidewalks or pedestrian ways. She would like for these to be included in the legislative agenda. Geoffrey Gledhill said that it might be that the State feels that sidewalk money is for those who build roads and the County does not build roads. Commissioner Gordon asked that Geoffrey Gledhill check this and report back. Commissioner Gordon made reference to the annexation and local planning and revenue option incentives to control growth and asked for clarification on this. Geoffrey Gledhill said that this local bill would include that for any annexation the County would have a courtesy review. Commissioner Gordon asked for an explanation of the flexibility statewide in addressing the acceptance and maintenance of post-1975 recorded subdivisions with unpaved roads to address unintended exclusion. Geoffrey Gledhill said that the State law limits secondary road money to be spent on paving subdivisions plated prior to October 1, 1975. If there is a public road and a plat that dedicates the road prior to 1975, the State secondary road money can be used to pave that road. However, there are some pre-1975 subdivisions which for one reason or another the roads do not qualify and the only way these roads can be brought up to State standards is if the property owners pay DOT to do it. The two examples are where there are unrecorded plats for subdivisions before 1975 and the roads are dedicated to the public but the plats never got recorded. There was no one signed up to speak to this item. A motion was made by Commissioner Halkiotis, seconded by Commissioner Gordon to close the public hearing. VOTE: UNANIMOUS A motion was made by Commissioner Carey, seconded by Commissioner Halkiotis to approve and authorize the Chair to sign both resolutions regarding legislative matters, which are incorporated herein by reference. VOTE: UNANIMOUS The Board of County Commissioners indicated that they would like to schedule a meeting to talk with their local legislators. Presentation by EMS Director Nick Waters John Link made reference to a newspaper article, which included statements indicating that with the cuts in the County budget it would be unsafe for certain functions in the EMS department to be conducted. He asked Nick Waters to clarify this because he thinks that full and correct information should be provided to the citizens. Nick Waters said that the article talked about the maintenance and condition of ambulances as recorded on the County's maintenance record. He said that it was not the County's maintenance record, but a software package that the squad uses to relay what they see as deficiencies with the trucks when they inspect them. It allows them to report anything that needs to be repaired. The second issue was that a wheel fell off a truck. This is true and they are concerned about that. He immediately called the County's Risk Manager and they investigated the incident. Though the cause was inconclusive, they did say that it could have been prevented had the truck stopped when they first heard or felt the noise. When the County changed to modular ambulances, they did that with the intention of having prolonged life of the units. They asked that three units be considered in next year's budget. Nick Waters said that they have been doing some research getting prepared for a meeting with the Board of Directors on June 27`h to talk to them about some operational issues. One issue is abusive driving by some of their members, which leads to mechanical problems. From December 6 to June 13 there have been 95 people driving these vehicles. During the same period of time, there have been 230 reports of some type of problem (burnt out light bulbs to brake failure). One third of those were generated by four people. There are some issues that they will address with the squads at a meeting next Thursday evening. Operationally, it is not critical that they replace these three trucks and he does not have a problem with delaying the purchase of these three vehicles. He does not think that it poses a hazard or safety issue for the EMS service. The vehicles are only as safe as the drivers. Commissioner Halkiotis said that he has a significant amount of trust in Nick Waters and his EMS operation. He emphasized that the article was written by the News of Orange and that other articles have been written by the News of Orange, which have been untrue. He would like to write a letter to the News of Orange and set the record straight. He is proud of Orange County's EMS program. Commissioner Carey agreed that this was a lack of responsible journalism. He asked that Nick Waters analyze the reports coming in for repairs to see if there is a safety problem and the extent of the problem. Commissioner Brown clarified that reporting is only part of the program and the newspaper article does not indicate that the other part of the program lists the corrective action taken for each reported repair. The article does not address the quality of service provided to Orange County by EMS. Nick Waters assured the Board that he would work with the Manager to bring an ambulance replacement schedule forward. Commissioner Gordon said that the Board of County Commissioners holds public health and safety at a high standard. Chair Jacobs noted that even when the County has a hiring freeze, it does not include those positions/vacancies in the health and safety departments. He said that the simplest way to address this is to just speak the truth. He would agree with writing a letter to the News of Orange. 4. County Capital and Operating Budget Matters John Link said that relating to revenues, there is an additional $150,000 found by Segal and Associates. They received confirmation that the federal funding from the office of Justice Programs would provide $100,000 of additional monies. Also, the County will receive an additional $75,000 of additional unanticipated EMS revenue. This is $325,000 in total additional revenue. In the agenda, there is a better-sequenced version of capital projects that the County Commissioners may want to cut or delay. The County department heads were in attendance to respond to any questions. The increases in operations are fairly small and they are justifiable. Under outside agency funding and fire district funding, outside agency funding is the same as last year and there is only one increase in fire district funding. While we are not including any increase in employee pay and benefits, we hope that at some time during the year this can be included. John Link urged the Board to spend most of their time tonight on the capital side of the budget. Commissioner Gordon pointed out that the hiring freeze would save a lot of money. A. capital funding reductions Chair Jacobs made reference to his handout as a starting point for discussion to try and address the $805,000 that we still have not earmarked to cut to match the $3.1 million that the State has withheld from Orange County. This would reduce the tax rate by two cents and increase the money in the social safety net to $250,000 from $110,000. It would put some money back into things that are proposed to be cut (i.e., Affordable Housing Trust Fund, Lands Legacy Fund), and it would only involve the two matters that are not capital. Commissioner Gordon made reference to attachment 1 and attachment 2 and asked about the relationship between the two. Budget Director Donna Dean said that attachment 1 relates to the $3.1 million that the State is withholding from us next year. Commissioner Gordon said that we could cut some things in decision point 3 instead of decision point 2. Chair Jacobs said that he was proposing that we do both. The Board decided to start discussing decision point 2 —the bright yellow chart in attachment 1. The first item was Information Technology. Information Technology Commissioner Halkiotis asked about the emergency needs in Information Technology that total $130,000. Donna Dean said that one of the items would be correcting the wiring at the Whitted Human Services building. Assistant County Manager Rod Visser gave some background information about the $400,000 for Information Technology. He listed the amounts for Information Technology as follows: Network - $115,000; Desktop, PCs, printers, laptops - $70,000; Support and training for IS staff- $7,500; Legacy software system - $167,000; Document management - $10,700; and GIS - $29,000. If the Board wants to reduce the $400,000, then we would have to decide how to reduce it among the various initiatives. Commissioner Brown said that her presumption, by holding this money, is that we have accomplished through the five-year plan, the upgrading of all equipment throughout all County departments and that we are on a level that is very satisfactory. Rod Visser said that we are in outstanding shape as it relates to information technology. Lands Legacy Commissioner Gordon asked that Environment and Resource Conservation Director David Stancil explain what this kind of Lands Legacy money means as opposed to other sources for Lands Legacy. David Stancil said that the Lands Legacy pay-as-you-go fund is our opportunities fund so that we can take advantage of opportunities as they arise. It provides more flexibility than the other two funds. Chair Jacobs asked if the Land Legacy money was not available in pay-as-you-go funds, but we had the alternative financing in the bond money, if the Lands Legacy program would suffer. David Stancil said that they could get by with the allocations from the bond. Having an additional amount increases the chances to take advantage of opportunities. Northern Human Services Center Commissioner Halkiotis asked if there is still enough money to repair the septic system and Purchasing and Central Services Director Pam Jones said yes. Commissioner Brown feels that this money must be put back into the budget next year because this is a project that has many needs. Old Courthouse Chair Jacobs asked about the state of repair or disrepair that requires this $50,000. Wayne Fenton, Assistant Public Works Director, said that some of the brick must be repointed and there is repair work that needs to be done on the clock tower. They are trying to time it with the clock repair that the Town is going to do. The Town still has some funds to raise for this. They are $15,000 short at this time. He explained that the clock that sits in the clock tower belongs to the Town. The building belongs to the County. Commissioner Halkiotis made reference to the report done on facilities a few years ago, which indicated upcoming work on these buildings. He asked that the report be updated. Wayne Fenton said that they are working on an update to that report and it will come back to the County Commissioners in the fall. Commissioner Halkiotis said that he spoke with someone today and asked him to prepare a proposal on maintaining athletic fields for the County Manager and to share it with this Board. He thinks that the field at Efland-Cheeks needs some professional maintenance. He feels that as we get more and more into the parks business with fields, we need to be looking at relationships with other agencies that use companies like this. They know exactly when to come in and put in the right amount of fertilizer and they also give tips on how to take care of the fields. Commissioner Brown asked about the heat pump at the Planning Department and if this could be postponed. Wayne Fenton said that it could potentially be postponed, but the issue is that as the spaces were divided up in the building into smaller sections, it is getting harder to heat and cool the entire space with the existing equipment. Orange Enterprises This will be done with alternative financing. Roofing Projects Donna Dean said that if the entire $100,000 were deferred, there would be no money to repair roofs next year. Wayne Fenton said that we spent money this year on portions of 501 West Franklin Street, the Whiffed building, the Government Services Annex building, and some metal work on the Skills Development Center. Donna Dean said that they just recently received bids on several buildings within the County, which totals $142,000. These bids are not included in attachment 2. This money is already appropriated in the roofing projects and is currently available. Senior Centers These will be funded by bond monies. Southern Human Services Center Commissioner Halkiotis made reference to the generator and said that most of the new schools coming online now have emergency generators. He said that he would be more worried about having an emergency generator at the jail. He is not sure that the Southern Human Services Center needs an emergency generator. He would like to have a list of buildings with generators and a priority list for placing new ones. Commissioner Gordon said that this needs to be looked at for health and safety needs and the reasoning behind this request. John Link made reference to the generators and said that if we have a hurricane next week we are going to respond better than we did in 1996. He said that he would get as much information as possible about this generator by Monday. Commissioner Halkiotis said that the County made a substantial investment in putting a generator at C. W. Stanford Middle School. We need to look at duplication because two school buildings already have emergency generators. Commissioner Brown made reference to the renovation and asked that $5,000 be put in the budget for the Americor project. Whitted Human Services Center Donna Dean said that $98,000 is available and this amount will be on the agenda for June 27`h. This amount would be used for flooring. Pam Jones said that the paving bid was around $60,000 and the flooring bid was around $58,000. This money has already been budgeted. The Board decided to cut the $100,000 from the Whiffed Human Services Center. This will not affect the HVAC replacement project. John Link suggested that the Board cut portions out of each project instead of entire projects. Equipment and Vehicle Replacement John Link said that whatever was not purchased now has to be reassessed. If$100,000 were cut from this, it would leave $100,000 for any emergency issues that come up. Commissioner Halkiotis said that it is really important for us to respond to the initial program. He feels comfortable with leaving this project alone. Equipment Storage The Board agreed to hold off on this for one year. Firearms Training Facility The Board agreed to hold off on this for one year. Government Services Annex The Board agreed to leave this project. Justice Facility This process will start six months later. Northern Human Services Center This project will be delayed. Orange Enterprises The Board agreed to leave this project. Recreation Center/Park Improvements Chair Jacobs said that it would seem that within the next fiscal year, we would have some payment-in- lieu money. He asked if this was calculated anywhere. Donna Dean said that we have used some payment- in-lieu monies this past year to offset some of the costs of the Lands Legacy projects. Rod Visser said that we have typically tried to handle payment-in-lieu fairly conservatively where we try not to budget it until it is in the bank. It could be budgeted, but we would have to be cautious. He will bring back information next week on the amount of payment-in-lieu money that is available. John Link said that the Board could take $100,000 out of this project. Utility Extension Development The Board decided to delay this project. Building Safety The Board decided to leave this project. Court Street Annex The Board decided to leave this project. Loan Pool Reserve The Board decided to cut $75,000 from this project. Handicapped Accessibility The Board decided to leave this project. Northern Human Services Center The Board decided to leave this project. Old Courthouse Renovations The staff clarified what would be included in this project. The Board asked staff to come back with a breakdown of the $50,000 At the next work session, the Board will address the rest of the agenda. ADJOURNMENT With no further items for the Board to consider tonight, a motion was made by Commissioner Halkiotis, seconded by Commissioner Carey to adjourn this meeting at 10:15 p.m. VOTE: UNANIMOUS The next meeting is scheduled for Monday, June 24, 2002 at 7:30 p.m. in the Southern Human Services Center in Chapel Hill, North Carolina. Barry Jacobs, Chair Beverly A. Blythe, CMC