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HomeMy WebLinkAboutMinutes 06-12-2012 APPROVED 9/6/2012 MINUTES BOARD OF COMMISSIONERS BUDGET WORK SESSION June 12, 2012 7:00 p.m. The Orange County Board of Commissioners met for a Budget Work Session on Thursday, June 12, 2012 at 7:00 p.m. at the Southern Human Services Center in Chapel Hill, N.C. COUNTY COMMISSIONERS PRESENT: Chair Bernadette Pelissier and Commissioners Valerie Foushee, Alice M. Gordon, Barry Jacobs, Pam Hemminger, Earl McKee and Steve Yuhasz COUNTY COMMISSIONERS ABSENT: COUNTY ATTORNEYS PRESENT: COUNTY STAFF PRESENT: County Manager Frank Clifton, Assistant County Managers Gwen Harvey and Michael Talbert and Clerk to the Board Donna Baker (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. Commissioner Pelissier referred to handouts at the Commissioners' place: -Green sheet-Vehicle Replacement- Internal Service Fund -Yellow sheet— Markup-Markdown Information ( Available Fund Balance to Address Additional Budget Initiatives of the Board for FY 2012-13 Budget) 1. Accept and Approve the Five Year Capital Investment Plan and Adopt the Capital Proiect Budqet of$6,666,950 for the FY2012-13 County Capital Proiects Fund Paul Laughton reviewed the Capital Investment Plan. He said that the County Commissioners received a memo regarding the revised CIP pages. The financing changed on page 33-34 and the communications systems improvements. There is a note on the schools capital summaries. He said that the school facilities funding schedule must be guided by SAPFO and a note has been added for reference. Financial Services Director Clarence Grier made a clarification on the Eurosport soccer field on page 49. Only $623,000 of this is from the County and the rest is from the partners, bringing the total to $934,500. Commissioner Jacobs said that there was some discussion about having a placeholder about a community center on Rogers Road, and he thinks that this would be a capital project. Frank Clifton said that it depends on the level of funding, but if the County Commissioners want to reserve funding, it can be put in the CIP or the County Commissioners' budget. Commissioner Hemminger said that she thought it would be better to put it in the CIP as a placeholder. She does not want to commit to moving the structure. If it is going to be over $100,000, then she thinks that it belongs in the CIP. Commissioner Yuhasz said that before the County Commissioners put money into a capital fund for a community center, they need to have a discussion as a Board first and to at least wait for a report from the task force. Commissioner Foushee said that she does not care where they put it as long as they reserve that amount of money. She said that the County Commissioners need to have a serious discussion about the commitment of funding and how much for the Rogers Road area. Commissioner Gordon said that she does not think they should commit to moving this house yet. She referred to her handout, which indicated a possible approach to utilizing the BOCC appropriation of$905,000; that is amount that was suggested in the Manager's Operation Budget. In the handout, she suggested setting aside $120,000 in a reserve and then waiting for the task force to report back in the fall. She does not want to make any promises as to what it would be for, but that it would be for this area. Commissioner McKee agreed with Commissioner Yuhasz and said that there is a task force and the County Commissioners should earmark some funds for this project. Commissioner Jacobs asked about the difference of the budgetary implications of having it in the CIP versus the Board of County Commissioners' budget. Frank Clifton said that the CIP is for governmental projects but if it is in the Board of County Commissioners' budget, it is set aside there and they know what it is for. Commissioner Jacobs asked about flexibility. Clarence Grier said that it would depend on the funding. If it were in the CIP, there would be funding in the general fund and it could be transferred later to the CIP or it could be just put in the Board of County Commissioners' budget and transferred to the outside project when needed. Chair Pelissier suggested putting $120,000 in the Board of County Commissioners' budget for the Rogers Road area. The Board agreed. Commissioner Hemminger clarified that this is not for operating expense, but just for capital expenses. Commissioner Gordon suggested declaring the Board's intent to approve the CIP at the next meeting. The Board agreed. Transfer from General Fund $ 500,000 Transfer from County Capital Reserve $ 50,000 Transfer from County Capital Projects $ 623,000 Available Project Balance $ 450,000 Register of Deeds Fees $ 75,000 9-1-1 Funds $ 100,000 Contributions from Other Infrastructure Partners $ 311,500 Debt Financing County Capital $ 4,557,450 Total Funding Sources $ 6,666,950 Recommende Projects d Funding FY 2012-13 Emergency Services 510 Meadowlands $ 37,500 Northern Human Services Center $ 250,000 Seymour Senior Center $ 70,000 Southern Orange Campus (Future Planning) $ 300,000 Southwest Branch Library $ 50,000 Upfit of Link Government Services Center $ 25,000 HVAC Projects- Geothermal $ 1,759,200 Roofing Projects $ 165,000 Affordable Housing $ 170,000 Information Technology $ 950,000 Register of Deeds Automation $ 75,000 Whitted Building $ 295,000 Energy Bank $ 50,000 Viper Radio System $ 543,750 Communications System Improvements $ 292,000 Future EMS Stations $ 50,000 Blackwood Farm Park $ 50,000 Twin Creeks Park Campus Phase II $ 600,000 Joint Artificial Turf Soccer Fields-Town of Chapel Hill $ 934,500 Total Projects $ 6,666,950 2. FY2012-13 Annual Operation Budget Decision Items Mark Up/Mark Down Items for the County's Annual Operating Budget and Outside Agencies: Clarence Grier said that the green sheet is information that Commissioner Yuhasz asked for regarding vehicle replacement. He made reference to the yellow sheet, Markup-Mark Down Information, and said that the County recently appropriated $555,000 of fund balance. The savings from delaying the revaluation is $350,000. The total additional funds available for the BOCC discretion fund is $1,240,000. Commissioner Gordon explained her handout, which recommended additional amounts for several items. She said that she only included what she thought the County could fund, which for school funding is $50 more per pupil. She also suggested full funding for the Dispute Settlement Center, which would be $25,000 already budgeted plus $51,000. Commissioner McKee said that there is breakdown page 119 in the notebooks for Emergency Services. There is a proposal for an Assistant Fire Marshal starting January 2013. There has not been a Fire Marshal since 2009 as a full-time position. He said that it is time to go back to a full-time position. The cost would be an additional $21,432 for a full year. He suggested not funding for a full year for the first year, but from January— June 2013. This would be an additional cost of$10,716 for the first year, and then move back to a full-time Fire Marshal position. Commissioner Gordon suggested putting this amount in a reserve until the Emergency Services Work Group reviews this proposal. Commissioner Foushee said that this group is to sunset at some point and they continue to add to the charge of the work group. She is concerned that the Board will continually put off what the Board of County Commissioners has directed them to consider. She wants to ensure that the County's relationship is collaborative and cooperative. She wants the staff to bring forward a position description that is clearly defined and explains the role of the position and that clearly identifies the expectations of this person. Commissioner Yuhasz said that if they are going to identify this position, then the funds need to be identified as well. Commissioner McKee said that the work group's goals have been set and this is not one of them. He said that the Board of County Commissioners sets the parameters of this position, by law. Chair Pelissier agreed. Commissioner Gordon said that she accepts Commissioner Foushee's and Commissioner McKee's comments, but there has to be a way that staff reviews this position and to vet this properly. Commissioner Jacobs said that this has been done before —funding a position mid- year. He suggested doing this the way it was done before. Commissioner Jacobs said that he wanted to add to the library funding $66,500 to add 8 hours at the central library. Commissioner Yuhasz agreed with Commissioner Jacobs. Library Services Director Lucinda Munger said that this amount would be strictly for additional operating hours for the central library. Frank Clifton said that this total would need to be $82,460 since Chapel Hill Library gets a portion. Commissioner Hemminger asked to add $10,000 to the scholarship fund through Social Services for sports and camps for children. Commissioner McKee seconded both Commissioner Jacobs' and Commissioner Hemminger's comments regarding the additional funding for the scholarships. Commissioner Foushee agreed with Commissioner Hemminger. Commissioner Foushee said that she had two requests. She said that she hoped that staff listens to the County Commissioners' requests. She asked that enough money be set aside so that employees are not experiencing more out of pocket healthcare expenditures. She said that she has heard that employees would prefer higher premiums rather than out of pocket expenses. She said that she also does not want to forget the post-employment benefits. She does not want to seriously hurt this reserve fund. Commissioner Yuhasz asked that when self-insurance is considered that all of these issues become part of the discussion. Commissioner Jacobs agreed and said that he hopes that there would be a survey of employees with neutral questions before the discussion. Commissioner Jacobs suggested adding $1,000 for Freedom House. Commissioner Yuhasz said that the County Commissioners have talked over the last few years about having a meeting room or a study and he would like to see some funding set aside to work on a meeting room. He asked if there was any money allocated for this. Commissioner Jacobs asked Paul Laughton about money left over from the Link Center upgrade so far and he said that the current cash balance in the project is $16,071. In the CIP, there is $425,000 of possible alternative financing that the Board has not approved yet. Commissioner Jacobs suggested putting this item on a work session agenda in the fall and establishing criteria and charging someone to bring back and analysis. He is not suggesting adding money at this time. Frank Clifton said that the project for the Link Center was to be about $1 million but the County Commissioners have not allocated any money yet for that. Commissioner McKee echoed Commissioner Jacobs' comments to discuss this at a work session in the fall. The Board then declared intent on the additional items. Dispute Settlement Center $51,000 - yes Fire Marshal $10,716 - yes 8 hours additional at Central Library $82,460 3-Commissionrs voted yes for additional 8 hours, 4-Commissioners vote no for additional 8 hours $51,460 yes Social Services — additional athletic scholarships $10,000 - yes Freedom House � $1,000 - yes Rogers Road $120,000 - yes Total so far $244, 176 Remaining is $1,015,824, which equates to $51.56 additional per-pupil If the per-pupil is rounded to $52.00, an additional $8,576 would be needed to balance • Funding for Chapel Hill Carrboro City Schools and Orange County Schools Frank Clifton said that $2.8 million of this year's allocation to schools is a one-time savings for debt service. Clarence Grier made reference to the scenarios at the County Commissioners' places for if the Board chooses to raise the per-pupil allocations. He said that $1.7 million went to current expense and the other million went to pay-as-you-go capital. He went through the tax rate scenarios and the increase in revenue for various tax rate increases. The CHCCS district tax could be decreased to balance out the increase. Paul Laughton went through the handout with scenarios to get to 48.1% of the general fund to the schools. Chair Pelissier asked the Board if they agreed with the $52.00 per pupil. The Board agreed to show its intent to add an additional $52.00 per pupil to the recommendation. Commissioner Jacobs said that he does not think it is enough. Commissioner McKee asked about the unfunded liabilities for employees. Clarence Grier said that it is $3 million to fully fund one year of this liability. Commissioner McKee asked if these actions taken tonight affected that $3 million and it was answered no. He asked if they could reduce that fund by $250,000 and transfer it to education and Clarence Grier said yes. Commissioner McKee said that he thinks that the County Commissioners can find some more money for education. Commissioner Gordon said that she is willing to go to $65.00 per pupil. Commissioner Yuhasz said that he is concerned about how they are funding the schools this year, because the more the funding is increased, the greater the divide will be next year. Commissioner Foushee agreed with Commissioner Yuhasz and said that the General Assembly is not filling any gaps. She said that whatever funding is done this year will have to be a continuing budget next year. There will have to be a tax increase if this funding is continued next year. Commissioner Hemminger agreed with Commissioner Foushee's concerns. Commissioner Yuhasz said that the revaluation has been put off for two years, and the County is still facing the possibility that property values may decrease and taxes will have to be raised. Commissioner Jacobs said that the County has the highest fund balance in its history and has set aside $3 million for the post-employment health insurance, but the legislature is attacking education. He said that now is the time to use the rainy day fund. Chair Pelissier said that the County Commissioners need to take into consideration that through the last few years they did not cut operation budgets for the schools at all. She said that the County cannot fill all of the gaps in state funding cuts. She said that the school boards also have fund balances that they can use. Commissioner McKee said that he wants to get as much value as possible for every dollar spent on education. He said that this amount of money from the reserve fund is not a huge amount of money. He would like to see the additional $65 per pupil. Frank Clifton clarified that this included taking money out of the post-employment insurance. Commissioner Yuhasz verified that all of the additional funding could be taken out of the fund balance without affecting the fund balance target. Commissioner Foushee suggested an intent to support an increase in the per-pupil allocation of$65.00 if the remaining monies are taken from the County's fund balance and that the post employment reserve stays at $3 million. The Board agreed. Commissioner Yuhasz said that he is not very enthusiastic about this because of the expectations that will be raised for next year. • Tax Rate Decisions The Board agreed on the following tax rates, which were the same rates as last year, unless otherwise noted: i. Ad Valorem Tax- 85.8 ii. Chapel Hill Carrboro City Schools Special District Tax- 18.84 iii. Fire District Tax Rates- all stay the same but Orange Grove, which will go to .05. 3. Break (to allow Finance and Administrative Services Director to formulate Draft Resolution of Intent to Adopt FY 2012-13 Budget) There was a break from 8:36 p.m. until 9:04 p.m. 4. Resolution of Intent to Adopt FY 2012-13 Annual Operating Budget • Approval of Resolution of Intent to Adopt FY 2012-13 Annual Operating Budget at the Board of County Commissioners Regular Meeting on June 19, 2012 Clarence Grier read the Resolution of Intent to Adopt the 2012-12 Orange County Budget: Resolution of Intent to Adopt the 2012-13 Orange County Budget The items outlined below summarize decisions that the Board acted upon June 12, 2012 in approving the intent to adopt the FY2012-13 Orange CountyAnnual Operating Budget. WHEREAS, the Orange County Board of Commissioners has considered the Orange County 2012-13 Manager's Recommended Budget; and WHEREAS, the Commissioners have agreed on certain modifications to the Manager's Recommended Budget as presented in the 2012-13 County Manager's Recommended Budget on May 15, 2012; NOW THEREFORE BE IT RESOLVED, that the Orange County Board of Commissioners expresses its intent to adopt the 2012-13 Orange County Budget Ordinance on Tuesday, June 19, 2012, based on the following stipulations: 1) Property Tax Rates a) The ad valorem property tax rate shall be set at 85.8 cents per $100 of assessed valuation. b) The Chapel Hill-Carrboro City Schools District Tax shall be set at 18.84 cents per $100 of assessed valuation. c) The Fire District tax rates shall be set at the following rates (all rates are based on cents per $100 of assessed valuation): • Cedar Grove 7.36 • Chapel Hill 7.50 • Damascus 5.00 • Efland 4.66 • Eno 5.99 • Little River 4.06 • New Hope 8.95 • Orange Grove 5.00 • Orange Rural 5.61 • South Orange 7.85 • Southern Triangle 5.00 • White Cross 7.00 2) County Employee Pay and Benefits Plan Provide a County employee pay and benefits plan that includes: a. Cost of living and merit increase equating up to 3% in compensation. b. Funding to address an employee health insurance increase up to 23.0%, effective January 1, 2013. c. Increasing the Living Wage to $10.97 an hour. d. Implementing recommendations of the County's FY 2011-12 internal Classification and Pay studies. e. Extending the six-month hiring delay and the voluntary furlough program. f. Continuing the $27.50 per pay period County contribution to non-law enforcement employees' 401(k) accounts. g. Change the service requirement for employees to be eligible for full funding of post-employment Health Insurance benefits from 10 years of County service to 20 years of consecutive County service as a permanent employee beginning with all new hires on or after July 1, 2012. h. Change the County allocation for reimbursement of post-65 Medicare cost to 50% for employees hired on or after July 1, 2012. 3) Modifications to County Manager's FY 2012-13 Recommended Annual Operating Budget The following modifications to the County Manager's Recommended Budget are made: Revenues Increase Decrease Manager's Recommended Revenue Budget $178,478,100 Appropriated Fund Balance $1,524,676 Total Revenue Changes $1,524,676 $0 Revised Revenue Budget 180,002,776 Expenditures Increase Decrease Manager's Recommended Expenditure Budget $178,478,100 Additional Funding to Dispute Settlement Center $51,000 Additional funds to budget for Fire Marshal position $10,716 Additional Library funding (additional 4 hours/week at Central Library) $51,460 Scholarship Fund through DSS $10,000 Additional funding to Freedom House $1,000 Reserve for Rogers Road Community Center $120,000 Increase Per Pupil Funding ($65 per pupil) $1,280,500 Total Expenditure Changes $1,524,676 $0 Revised Expenditure Budget $180,002,776 4) Changes in Funding to Improve Service Delivery (Increase in FTE Approved) Department Position Effective Date FTE Change Emergency Senrices Assistant rire n�arsnai January 1, 2013 1.000 Emergency Senrices Telecommunications July 1, 2012 2.000 Emergency Senrices Telecommunications January 1, 2013 2.000 Emergency Senrices Paramedics October 1, 2012 6.000 Finance and Administrative Grants Accountant/Internal Auditor July 1, 2012 1.000 Senrices Finance and Administrative �sk Manager July 1, 2012 1.000 Senrices Health Property De�,elopment Specialist July 1, 2012 0.500 Health� Dental Hygientist July 1, 2012 0.500 Planning and Inspections Property De�,elopment Specialist July 1, 2012 0.500 Tax Administration Systems Analyst July 1, 2012 1.000 Tax Administration2 Office Assistant II (2 year time limited) July 1, 2012 1.000 5) General Fund Appropriations for Local School Districts The following FY 2012-13 General Fund Appropriations for Chapel Hill Carrboro City Schools and Orange County Schools are approved: a) Current Expense appropriation for local school districts totals $62,389,900 and equates to a per pupil allocation of$3,167. 1) The Current Expense appropriation to the Chapel Hill Carrboro City Schools is $38,368,205. 2) The Current Expense appropriation to the Orange County Schools is $24,021,695. b) Recurring Capital appropriation for local school districts totals $3,000,000 1) The Recurring Capital appropriation to the Chapel Hill Carrboro City Schools totals $ 1,845,000. 2) The Recurring Capital appropriation to the Orange County Schools totals $1,155,000. c) Long Range (Pay-As-You-Go) Capital appropriation for local school districts totals $3,724,849. 1) The Long-Range (Pay-As-You-Go) Capital appropriation to the Chapel Hill Carrboro City Schools totals $2,290,782. 2) The Long-Range (Pay-As-You-Go) Capital appropriation to the Orange County Schools totals $1,434,067. d) School Related Debt Service for local school districts totals $15,352,784. e) Fair Funding appropriation for local school districts totals $988,000. This appropriation is to be split 50/50 between Chapel Hill Carrboro City Schools and Orange County Schools. f) Additional County funding for local school districts totals $1,907,394. (1) School Health Nurses —Total appropriation of$683,706 with $451,651 allocated for Chapel Hill Carrboro City Schools and $232,055 allocated for Orange County Schools. (2) School Social Workers —Total appropriation of$692,283 allocated in the Department of Social Services to provide School Social Workers to Orange County Schools. (3) School Resource Officers —Total appropriation of$531,405 allocated in the Sheriff's Department to provide School Resource Officers to Orange County Schools. 6) County Fee Schedule To adopt the County Fee Schedule to include changes included in the FY 2012-13 Manager's Recommended Annual Operating Budget. The BOCC agreed to the Resolution of Intent and will formally adopt this resolution at their June 19, 2012 BOCC regular meeting. Clarence Grier thanked the budget staff. A motion was made by Commissioner McKee, seconded by Commissioner Jacobs to adjourn the meeting at 9:16 p.m. VOTE: UNANIMOUS Bernadette Pelissier, Chair Donna S. Baker, CMC Clerk to the Board