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HomeMy WebLinkAboutMinutes - 20060525APPROVED 8/22/2006 MINUTES ORANGE COUNTY BOARD OF COMMISISONERS BUDGET PRESENTATION AND WORK SESSION MAY 25, 2006 7:30 p.m. The Orange County Board of Commissioners met for a Budget Presentation and Work Session on Thursday, May 25, 2006 p.m. at 7:30 p.m. at the F. Gordon Battle Courtroom in Hillsborough, North Carolina. COUNTY COMMISSIONERS PRESENT: Chair Barry Jacobs and Commissioners Moses Carey, Jr., Valerie P. Foushee, Alice M. Gordon and Stephen Halkiotis COMMISSIONERS ABSENT: COUNTY ATTORNEY PRESENT: Geoffrey Gledhill COUNTY STAFF PRESENT: County Manager John M. Link, Jr., Assistant County Managers Rod Visser and Gwen Harvey and Clerk to the Board Donna S. 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. Jahn Link said that there is a CD with the recommended budget on it for each of the County Commissioners and a replacement page for the budget book. Chair Jacobs pointed out that the budget is also on the website. He said that this is only the recommended budget and the County Commissioners have neither discussed nor approved this. This is the first step in a month long process. John Link made reference to the first page in the budget document, which lists all staff that helped put the budget document together. He recognized the staff. He said that he also received assistance from both school districts. Manager's Recommended Budget Fiscal Year 2006-07 Orange County, NC May 25, Z©06 Presentation to Board of County Commissioners Achievements Long-term commitment to enhancing quality of life for citizens - One of the highest per pupil expenditures in the State - Almost one-third of a billion dollars dedicated to construction and renovation of schools since 1988 - Master Aging Plan that provides along-term strategic plan for offering services to our senior population - Construction of state of the art senior centers - Affordable Housing opportunities for families and individuals who otherwise could not afford to live in Orange County Lands Legacy program has protected just over 1700 acres Progressive partnerships with Towns and neighboring Counties to provide park, recreational and library services to citizens in all areas of the County Fiscal Year 2006-07 Budget Briefs General Fund Budget totals $164.7 million - Original fiscal year 2005-06 budget totaled $149.9 million - Recommendation represents a 9.9 percent increase over 2005-06 original budget • Countywide ad valorem tax rate of 91.3 cents per $100 of assessed valuation - Increase of 7 cents over the 2005-06 rate of 84.3 cents - One cent on the property tax rate should generate $1,207,023 in upcoming fiscal year General Fund Revenues Revenue Highlights Lottery Proceeds • Change in environment regarding the likelihood that counties will likely receive lottery proceeds next year • Recommended budget anticipates receipt of $2.4 million in Lottery Proceeds • Earmarked for school construction and school-related debt service • As lottery revenue stream becomes more established and predictable Board may wish to update its May 2005 capital funding policy Education Funding Overview • Overall funding for both School districts totals $79.8 million - 48.4 percent of total General Fund appropriations -Increase of $7.6 million from fiscal year 2005-06 approved budget for operations and capital Education Funding Current Expense • Total current expense funding equals $53.8 million - Chapel Hill-Carrboro Schools - $33.1 million - Orange County Schools - $20.7 million Per pupil appropriation totals $2,957 - Reflects an increase of $161 for each of the 18,192 students projected for next year • Increase is sufficient to cover cost of Governor's most recent pay plan that provides an 8 percent pay increase for teachers and certified staff Per Pupil Allocations to Each District State Mandated Funding Formula [table] Fair Funding for Schools Reserve $800,000 • Fair Funding Work Group established jointly by Commissioners and Boards of Education in April 2006 - Group meeting in May and June, possible recommendations pending Reserve provides Commissioners with some flexibility to consider providing additional resources to bath school districts - E.g. should County pick up costs for school resource officers now paid by schools In light of continuing Fair Funding discussions, recommending that Chapel Hill Carrboro City Schools District Tax remain at current rate of 18.34 cents per $100 valuation Debt Service • Net increase amounts to $3.7 million - Equivalent of 3 cents on the countywide property tax rate • Between last year at this time and next year at this time, County will have issued $92.6 million in new debt for school and County projects Debt Funded Projects (table] Human Services • Mental Health - Statewide reform remains troubling and complex - Recommendation includes $1.294 million in base funding - Commissioners may choose to use safety net funds to ensure that local programs remain viable • Medicaid - Recommended funding level remains at fiscal year 2005-06 level of $4,024,800 - Outlook for State offering Medicaid relief for counties in fiscal year 2006-07 still unclear Employee Pay and Benefits • 2.5 percent Cost of Living Increase far all permanent County employees - Effective July 1, 2006 • 2.5 percent In-Range Salary Increase linked to employee performance • Increase in Living Wage from $9.34 per hour to $9.67 New Staff Proposals • Health - Environmental Health Supervisor (Food and Lodging} -emphasis on improving sanitation ratings at public eating establishments - Environmental Health Specialist {Wastewater Treatment and Management) - ensure compliance of privately awned alternative wastewater treatment systems EMS - 4 Paramedics and 2 Telecommunicators -increased number of calls and criticality of calls - Assistant Fire Marshal -increased arson investigations and compliance with state mandates • Purchasing - Administrative Assistant III -frees up time for Purchasing and Central Services Director to spend expediting County capital projects Social Services - Social Worker II (Community Alternative Program) -case management for increasing number of frail, elderly or disabled adults who choose to remain in their homes instead of being placed in adult care facilities Additional changes, such as increases in hours or changes in funding sources, recommended for other existing positions Reserve Funding • Court Operations Relocation - $400,000 • Critical Needs/Safety Net - $275,000 - To be combined with $225,000 anticipated carry forward from current fiscal year • Downtown Campus Parking - $150,000 • Fair Funding for Schools - $800,000 • Fire and Rescue Study Outcome - $100,000 • Public Works Custodial Strategic Plan - $50,000 • Senior Center Openings - $66,050 • SportsPlex - $700,000 • Water Resources Initiative - $75,000 Solid Waste Enterprise Fund • SWAB Work Group updating 10-year solid waste management plan due to State this summer • New C&D landfill opens soon • Planning for shift from landfilling to transfer station when capacity reached in 2010 • 3R fee implemented in 2004-05 has stabilized Solid Waste Fund financials • Tipping fees continue to underwrite $900,000 in annual recycling program costs • Recommend modest increases in 3R fee for 2006-07 to reduce that subsidy to about $400,000 Document Availability • Orange County Budget Office - 208 South Cameron Street, Hillsborough • Clerk to the Board - 200 South Cameron Street, Hillsborough • Public Libraries in Hillsborough, Chapel Hill, Carrboro and Cedar Grove • County's website - www.co.orange.nc.u5 Budget Schedule • Public Hearings - May 30, Southern Human Services Center, Homestead Road, Chapel Hill - June 1, F. Gordon Battle Courtroom, 106 Margaret Lane, Hillsborough • Budget Work Sessions - (all meetings, except for June 19, at Southern Human Services Center in Chapel Hill; June 19 at Government Services Center} • June 5 -Southern Human Services Center • June 8 -Southern Human Services Center • June 15 -Southern Human Services Center • June 19 -Government Services Center • June 22 -Southern Human Services Center • June 27 (adoption) -Southern Human Services Center Commissioner Gordon made reference to the living wage, which is over $9 per hour, and noted that the Board of County Commissioners does not receive a living wage. The County Commissioners receive approximately $5-6 an hour. Chair Jacobs asked if the fair funding far schools was included in the per pupil funding and staff said no. Chair Jacobs made reference to the fire and rescue study of $100,000 and asked haw this relates to the five positions. Rod Visser said that the positions were in addition to the study. Chair Jacabs said that he thought they had discussed having these positions not specified until the outcome of the study was known. John Link said that he recommended that they not address funding positions until the report is received and the County Commissioners can decide then. Commissioner Halkiotis asked about the $800,000 for the fair funding for schools reserve and if this is reflected in the 48.4°~ of total general fund appropriations for education and Rad Visser said yes. Commissioner Halkiotis asked if the 48.4°rb also includes non-departmental funding that directly relates to services provided to children in schools and Donna Dean-Coffey said no. Commissioner Halkiotis asked for information on the relevant non-departmental allocations that directly impact school children for both school systems. He thinks that this needs to be added in the total percentage of the County budget that goes for educational services. Chair Jacobs asked that this information be available for the budget public hearings. Commissioner Carey asked when the fire and rescue study would be received and Rod Visser said that the consultant's mother passed away and this slowed the process down. They are expecting to receive it within the next two weeks. Commissioner Carey said that he remembers when the County added the Fire Marshal and said that he would like to know what the Fire Marshal does that justifies the need far an Assistant Fire Marshal. He also asked about the State mandates for this. Jahn Link said that this should be in the fire and rescue report. Commissioner Halkiotis asked for clarification on the Environmental Health Specialist, {Uastewater Treatment and Management) -ensure compliance of privately owned alternative wastewater treatment systems. He asked how many privately owned wastewater systems are in Orange County and if there is an increased number of these, and if there are fees to be paid to the State. He asked if the County gets some of the fees back and John Link said yes. Commissioner Halkiotis said that the County Commissioners do not approve a lot of new subdivisions because they are coming in under the new regulations and getting stamped over in Planning. He does not know how many of the new systems have been put in over the last few years. Chair Jacobs said that they have asked far annual reports of subdivision activity and he has not seen any. He said that this would be useful information. Commissioner Gordan asked for position justifications and John Link said that this would be part of the supplemental package on June 1St Commissioner Gordon made reference to the lottery proceeds and asked how much would go for school construction and debt service and John Link said $1 million for debt service and $1.4 million for school construction. Commissioner Gordon asked if proceeds need to go for new construction and Rad Visser said that debt service can be used far any new construction on ar after January 1, 2003 and the proceeds otherwise can ga to any eligible school construction purchase. The plan is to use these funds the same way as the Public School Building Capital Fund monies, which are referred to as ADM funds, with the exception that the proceeds cannot be used for technology projects. Commissioner Gordon requested the most recent chart that reflects this and to update the text of the funding policy. Chair Jacobs asked if the legislature was giving the County school construction money and lottery proceeds or just lottery proceeds and Rod Visser said that they do not know for sure yet. It has been an annual threat that the State would take the public school building fund monies. It happened one year and has been hanging over their heads. They are relatively confident that the public school building fund money will came through. Commissioner Halkiotis made reference to page 5, Fair Funding for Schools Reserve Fund, the second bullet, "should County pick up casts far school resource officers now paid by schools" and asked that this information list how many SRO's there are per school, how much the school system is paying, how much they are getting from the State as a funded position, how much the County is paying, and the current sources of revenue. John Link said that they have asked both school systems far this information exactly this way. Commissioner Gordon said that they also asked for this same information far nurses and social workers. Commissioner Gordon asked about the lottery proceeds and the capital funding policy. John Link said that they are recommending that lottery money be spent for debt service and capital projects in lieu of increasing the property tax by two cents. Commissioner Gordon said that there is some property tax revenue in the capital funding policy, and if it is taken out, then the County is supplanting currently allocated money with lottery money. John Link said that he does not see it that way and since the Board of County Commissioners have not adopted the capital funding policy yet, since this is the first year of the lottery proceeds, and since they are facing a large tax increase the staff thought it would be a goad idea to use the lottery proceeds in a way that produces the potential property tax increase. Chair Jacobs said to make sure that at the first capital discussion, that they review the funding policy. Commissioner Gordon agreed. Chair Jacobs made reference to page 5 and the debt service and asked that there be a parenthetical note about how much of the 7 cents that was promised for the 2001 bonds that will now be retired. Commissioner Halkiotis asked about the modest increase of the 3R fee and Rod Visser said that the basic fee would go from $14 to $16. Commissioner Halkiotis asked for the total dollars collected last year from the 3R fee and a breakout and if it reduced the County's costs in recycling efforts. He said that he would not support this because of the track record of customer service at the landfill. He thinks that the customer service is embarrassing at this time. Commissioner Halkiotis said that he paid $27 last year and he asked what the increase would be and Rod Visser answered $34. Commissioner Halkiotis said that he has not gotten any additional service for the fee he paid last year because of where he lives and others have said the same thing. He still has to drive to the solid waste convenience center and he does not have rural pickup. He said that not all are treated equal in this and someone has to convince him during the budget process to support this increase. Chair Jacobs said that he saw an alert from NCACC about adding $2.00 to the tipping fees in every county. He asked the staff to look into this. Jahn Link said that this is his 18t" and final budget presentation since he is retiring in August. Commissioner Halkiotis thanked John Link for all he has done and in presenting budgets for 18 years and he said that all budgets have been caring and consistent. He said that Jahn Link is a person that cares about everyone and there is nothing personal in the budget recommendation. Commissioner Gordon asked about the legislative initiative to get back the money that was taken away from the County four years ago now that the State has a surplus. Chair Jacobs said that the letter is signed and will ga out tomorrow. There have now been Senate and House bills introduced to ask local governments to recover their money. He suggested also sending the letter to the newspapers. Commissioner Gordon thanked Jahn Link and staff for the budget. She also mentioned that this is Rod Visser's last budget. Commissioner Carey said that staff has been consistent for the last 18 years and the budgets have taken care of people and that education has been at the top each year. Commissioner Carey said that at the OPC Board meeting he found out about another unfunded mandate, that the State requires mental health agencies to serve as guardians far special needs individuals. He said that it is wrong for the State to require them to da this and then not provide any assistance. Commissioner Foushee commended John Link and his staff far this budget document. She said that this is her second process and it is different than last year's process and is much improved. She reiterated that this is a proposed budget and not an adopted budget. 1. Agricultural Center Work Group Report The Board received a presentation summarizing the Agricultural Center Work Group efforts to evaluate the need and justification for an Orange County agricultural center. Chair Jacobs said that this group was charged by the Board of County Commissioners and Betty Tam Davidson led this group. Ag Economic Development Coordinator Noah Rannells made reference to the executive summary in the report starting on page 5. Betty Tom Davidson, Chair of the Work Group, made a PowerPoint presentation. She said that the face of Orange County agriculture is changing and the Orange County farmer is aging, with the average age being 55. The farming community also faces increasing negative impacts of globalization. Commodity prices are stagnant and farmers are succumbing to increasing energy costs, increasing borrowing costs, increasing competition from Brazil and China, fears of increasing inflation, increasing health care costs, and the largest trade and budget deficit in American history. She said that the inception and work of this task force is important. Exploring Agricultural Needs in Orange County Agriculture Center Work Group 25 May 2006 Ag Center Work Group Charge • Investigate & explore needs and uses for an Agricultural Center, utilizing new information and current I future agricultural needs Stakeholder process Develop report Review recommendations of previous Agricultural Center work group The Ag Center Work Group • October 2003 -Agriculture Preservation Board resolution to County Commissioners requested `new look' at agricultural center concept • February 2004 -Commissioners agreed to create Ag Center Work Group • January 2005 -Citizen appointments made to Work Group • April 2005 to April 2006 -Work Group meetings & outreach • May 2006 -Report to be submitted to Board of County Commissioners The Ag Center Work Group Guiding Principles • Generate a `fresh look' assessment of an Orange County Ag Center Include discussion of: • demonstration & meeting space • value added processing center • office space for farm related agencies • demonstration farm plats & community farm fields • new & innovative agricultural concepts Conduct public outreach Assess needs & potential uses of an ag center & identify potential outside sources of funding Focus on needs and uses of an ag center, not the proposed location. Be mindful of land use and environmental standards in considering potential uses of the ag center Members Vickie Brown Betty Tom Davidson, Chair Spence Dickenson Chris Hogan Stanley Hughes Barry Jacobs, Commissioner Don Johnson Tony Kleese Marty Mandell Patrick McGarry Gordon Neville Russ Seibert Morris Shambley Ruffin Slater Roger Tate Staff • Cooperative Extension - Fletcher Barber - Karen McAdams Economic Development Commission - Dianne Reid - Noah Ranells • Environment & Resource Conservation - Dave Stancil - Tina Moon • Farm Services Agency - Phyllis Ruth • Natural Resources Conservation Service I Soil & Water Conservation District - Brent Bogue - Gail Hughes Why a `fresh look' now? • Lack of adequate facilities for ag programs • Tobacco Buyout • Transition away from commodity programs in upcoming farm bill • Increasing number of farmers in Orange County • Renewed interest and success in buy local efforts • Consumers want fresh, high quality food • Increase in energy cost challenges food supply • Orange County population growth continues Work Group Activities - Periodic Meetings o Ag Data o Possible uses of ag center o Subcommittees Surveys o Short Term Committee o Ag Center Work Group Field Trips o Roxboro County Building o Wake & Johnston County Ag Center o Blue Ridge Faod Ventures o Spence's Community Educational Farm Orange County Agriculture (chart) Work Group Committees Investigate and explore need and uses for an Orange County Agricultural Center, utilizing new information and current/future agricultural needs - Short Term Committee -Morris Shambley - Long Term Committee -Tony Kleese Short Term Committee Goal Identify primary functions of offices at the Planning & Agriculture Building and the physical space needed to better integrate their services in order to maximize customer service Process Meetings Developed & implemented user survey for ag agency clientele Explored alternative space (Roxboro} Short Term Committee FINDINGS Immediate need for mare: - Parking - Counter Space - Meeting Space - Office Space In addition, there is a need for outdoor demonstration plots Lang Term Committee Goal Attempt to identify the future needs far Orange Caunty agriculture Process Meetings Lang Term Committee FINDINGS - Engage farming community, consumers, & political farces to develop a collective vision far a 10 to 20 year plan - Pursue feasibility studies for ag initiatives (e.g., local processing facility) - Identified six areas of future focus: Land, Water, Seed, Farmers, Processing + Distribution, & Consumers - Continue to stress ag programs in future county budgets Ag Center Work Group Survey - Addressed long term vision for Ag Center - Distribution o Farm Service Agency to 3,400 farmers o Placed on Grange County Website o Notice to Weaver Street Market, Whole Foods, and EarthFare to share with customers • 49 total - 71 °lo crop & livestock farmers - 25°~ consumer I gardener - 4°~ other • 38 support an Ag Center • 8 do not • Most Supported - Medium sized meeting rooms -Outdoor event facilities -Youth Education 14-H - Learning about farm animals, preparing vegetables, etc. • How county can support farming community - Promote farming alternatives - Tax relief on farmland Ag Center Work Group Recommendation 1 Short-term Facility Improvements - Parking and office space - Confidential meeting space Ag Center Work Group Recommendation 2 Agriculture ~ Natural Resources Center - Capital Improvement Plan item - Increasing numbers of farmers & clientele for ag agencies - Adjacent horticultural & agronomic demonstration plots - Multipurpose facility far indoor & outdoor events - Single location may provide for most efficient resource use Ag Center Work Group Recommendation 3 Immediate-term Feasibility Studies - Value-added, shared-use processing facility for local farm products far local markets - Farm business incubator Ag Center Work Group County Commitment to Agriculture Given the unsuccessful effort of the late 1980's and 1990's related to an ag center in Orange County, it is critically important for the BOCC to accelerate the implementation of these recommendations. Chair Jacobs said that he very much appreciates the work and the vision of this group. He said that what struck him in talking about the changes in agriculture in Orange County is that there is no recognition in how much these County Commissioners have tried to do for agriculture. He said that the report does not mention that Orange County has perhaps the only Ag Economic Development Specialist, that it has had eight Ag Summits to try and bring information and ideas to farmers in Orange County, that they have tried to strengthen and rename the Ag Preservation Board, and that it secured money and gave land and are trying to design a farmer's market in Hillsborough. There are other things that they have been working on to expand the definition of ag services sa that farmers can da mare on their property related to agriculture with minimized red tape. They have also talked to other counties about working together on a value added center and have made applications far money for a value added center. He said that he would hope that, as they go forward with this report, that there is some recognition that these County Commissioners have worked on these issues. Commissioner Halkiotis thanked Betty Tom Davidson and all of the non- traditional agriculturists. He said that this is a good report and he agrees with Chair Jacobs that it needs to include the Board of County Commissioners' support far agriculture. He suggested looking at the old document from 18 years ago that is in the packet and looking at piggy backing with a fire and rescue training center, or firing range for law enforcement. He is fully supportive of the report. Chair Jacobs said that they did ask legislators far money for the feasibility study and for the value added center in this fiscal year. They have not heard anything yet. Tony Kleese acknowledged the Board of County Commissioners' support but he said that the approach needs to be very coordinated and synchronized and needs to come from some long-term goals. He said that the change is that the farmers and the consumers are ready to come to the table together. 2. Carolina North .(Horace Williams property) Leadership Advisory Committee This item is to provide an update on the UNC at Carolina North (Horace Williams property} development project and collectively provide County comments to the Leadership Advisory Committee about County interest and topic areas. Chair Jacobs said that this group has met three times and meets monthly. It was charged by the Chancellor with meeting for approximately one year. After the last meeting, the Orange County representatives realized that this group did not count Orange County's views. They thought that it would be good to bring forth what Orange County would like to see in addition to and augmenting what others have already articulated. The minutes from the three meetings are in the packet. The County Commissioners have not had the opportunity to look at this in-depth yet. Commissioner Foushee agreed with Chair Jacobs and said that after listening to this group, it was clear that there needed to be an opinion from Orange County. The next meeting is June 15t Commissioner Carey asked who the recommendations would go to and what would be done with the recommendations. Commissioner Foushee said that they do not knave if recommendations will come from this group and they have agreed that this is a dialogue among the groups. Chair Jacobs said that at the first meeting, the Chancellor said that he had not really thought about what would happen after the group meetings. He read today that the UNC Trustees are feeling frustrated with this process. Commissioner Gordon said that she heard part of one of the meetings and they seemed to highlight that the main issues were transportation, fiscal equity, and the environment. She said that land use and transportation are huge topics. She read from page 4 under Transportation and Land Use, "All modes of public transportation should be implemented including use of the rail line." She suggested adding "as appropriate" to the end of that sentence. Commissioner Halkiotis said that all of these responses are good. He said that ultimately the Chancellor and the Board of Directors would have the final say. Chair Jacobs made reference to the Fiscal Equity and suggested some word changes. The second sentence, "with 6 million square feet," he suggested "with the proposed," because this is uncertain. Also, "the local school impacts of the specific area, again depending if housing type has a strong family orientation, could generate over 700 students, which is greater than the size of one elementary school, particularly if the First School is counted." He said that the First School will not accommodate anything close to 700 students and they are talking about putting it on Carolina North property. He is also told that the projection is 7,500 new employees and not 6,000. Commissioner Carey said that he agreed with the amendments and he asked if the fiscal equity part includes ensuring that the private businesses that may occupy buildings in Carolina North would pay taxes and Chair Jacobs said yes. Craig Benedict said that page 6, attachment 2 addresses this. A motion was made by Commissioner Carey, seconded by Commissioner Halkiotis to approve in concept the Draft Principles on pages 3 and 4, and to forward it to the UNC Leadership Advisory Committee 2006. VOTE: UNANIMOUS With na further items to address, a motion was made by Commissioner Halkiotis, seconded by Commissioner Carey to adjourn the meeting at 9:45 p.m. VOTE: UNANIMOUS Barry Jacobs, Chair Donna S. Baker Clerk to the Board