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HomeMy WebLinkAboutMinutes - 20070419APPROVED 611 212 0 0 7 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS BUDGET WORK SESSION April 19, 2007 7:30 p.m. The Orange County Board of Commissioners met for a Budget Work Session on Thursday, April 19, 2007 at 7:30 p.m. at the Southern Human Services Center in Chapel Hill, North Carolina. COUNTY COMMISSIONERS PRESENT: Chair Moses Carey, Jr., and Commissioners Barry Jacobs, Valerie P. Foushee, Alice Gordon, and Mike Nelson COUNTY COMMISSIONERS ABSENT: COUNTY ATTORNEYS PRESENT: Geoffrey Gledhill COUNTY STAFF PRESENT: County Manager Laura Blackmon and Assistant County Manager Gwen Harvey, and Deputy Clerk to the Board David Hunt (All other staff members will be identified appropriately below}. Chair Carey asked for a moment of silence for the tragedy at Virginia Tech. The moment of silence was observed Commissioner Jacobs said that he hopes that sometime in the near future that someone from OPC will talk about the ways in which mental health reform in North Carolina is putting more people on the street with less supervision. He said that same of these people have some of the same problems that the shooter at Virginia Tech had. He said that cutting the funding for case managers becomes more of a public health and safety issue. He wants to bring this to a higher level of consciousness. Chair Carey said that he would bring this to the OPC Board's attention at the next meeting. 1. Fiscal Year 2007-08 Budaet Update Laura Blackmon said that there are several topics tonight. The first is an update on the budget issues for the coming year. She referred to several attachments in the packet. Budget Director Donna Coffey went through Attachment 1, General Fund Revenue Outlook. The current year tax rate is 90.3 cents per $100 valuation. One cent for the current year brings in $1.2 million. Next year it is projected that one cent will generate $1,247,881. She then went aver the chart on Attachment 1. Commissioner Jacobs asked for the fund balances of both school systems and the County for the April 30t" meeting with the schools. The staff has this and will provide this information, including historical information. Laura Blackmon said that there will probably not be a lot of natural growth in revenue because the sales tax has remained flat for several years, the lottery proceeds are not as much as was originally thought, and there is not a large increase in property taxes. She said that, unless there is some economic growth, there will not be a lot of flexibility with the budget. She said that at the rate the County is going now with growth rate and the continued high debt service, the County will not be able to meet needs in the future. Laura Blackmon then went over Attachment 2, which lists the budget drivers. Chair Carey asked about the timeline for Durham Tech opening and Purchasing and Central Services Director Pam Jones said that the plan is for it to be open for continuing education in March 2008 and then in the summer session of 2008. Laura Blackmon pointed out that with new capital projects, especially parks, there will be a continued increase in operating and staffing costs. Donna Coffey said that CHCCS has asked for an increase of $609,142 in just the general fund current expense appropriation. In addition, CHCCS has asked for the district tax to increase from 18.85 cents to 26.61 cents. She said that the thinking behind the increase was that the County Commissioners cannot approve a tax rate above what the school system requests on the district tax, so the bulk of the increase is being put on the district tax. The district tax would then generate $21.3 million. The actual increase for the general fund and the district tax would be $7.2 million. Donna Coffey said that the County has to fund both school systems at the same per pupil rate. If the County funds the $609,142 for CHCCS, this would be a $7 increase in per pupil allocations. This would give CHCCS $33.7 million and OCS $21.2 million. The additional request from OCS would be a $359 increase in the per pupil allocation, and would give CHCCS $37.7 million out of the general fund, compared to the current $30 million and would give OCS $23.7 million, compared to the current $19 million. Commissioner Jacobs asked for information on one cent on the district tax and Donna Coffey said that it is about $800,000. Continuation of presentation of List of budget drivers. Attachment 3 was a detailed breakdown of the first item on the budget driver list, which was new debt service for 2007-08. The new debt service includes $995,100 for Carrboro High; $50 million of alternative financing; and $2.4 million required to offset loss of lottery proceeds dedicated to repay debt service in FY 2006-07. This is a tax rate equivalent of 3.67 cents to pay for increased debt service next year, which was the direction of the Board at the retreat. This does not include debt associated with the solid waste fund ar the Sportsplex. This is just for the general fund debt. Commissioner Gordon asked some clarifying questions that were answered by Donna Coffey. Donna Coffey explained Attachment 4, which was 2007-08 Student Enrollment Projections. She said that every March, the Department of Public Instruction certifies the student membership for the upcoming fiscal year. DPI is projecting that the total students far CHCCS next year will be 11,382 and far OCS, 7,148; for a total of 18,538 students in the two school systems. This is compared to the current enrollment of 18,192 students. On row 10, if the County funded the 338 students at the current per pupil rate, this is right at $1 million for next year. Attachment 5 was for Commissioner Nelson's benefit and was School Funding Options Task Force Recommendations to the Board of County Commissioners. The County Commissioners adopted a "target" for funding schools of 48.1 °~ of the total general fund in 2000. This was for informational purposes. Attachment 6 was Annual General Fund Budgeted Appropriations for Education since 1990. Attachment 7 was a historical comparison of Per Pupil Appropriation (general fund) since 1983-84. Attachment 8 was the Preliminary Requests for New Staff and/or Changes to Existing Staff for FY 2007-08. Commissioner Jacobs asked about the Environmental Health Technician for Well/Water/Air Quality in the Health Department and the Water Resources Specialist in ERCD. Laura Blackmon said that there was a meeting earlier this week on this dual request, and she asked the departments to look at the program that needed to be developed and what the split duties would be between the two departments and how they would cooperate. This was a request from last year's budget. The Board asked the departments to meet with a mediator and there was no conclusion. She said that this goes along with the introduction of a new program for the County. There will be a holistic approach, recognizing that the approaches and the responsibilities of the two departments would be different, but should be compatible. Commissioner Jacobs said that the Board has talked about at least considering a staff attorney. He asked how this would get into the budget. Laura Blackmon said that she talked with Geof Gledhill about the responsibilities this person would have, but there are a lot of details to work out before it gets put into the budget. Commissioner Jacobs asked for a placeholder in the budget for a staff attorney. Donna Coffey said that there was a reserve set-aside during the budget process last year, and it is still there, but there was no actual position tied to it. Now there can be a placeholder with an FTE. Commissioner Jacobs said that part of why it was delayed was so that the new Manager could help craft the position. Commissioner Nelson asked if the staff was looking for potential efficiencies in some departments and things to be cut. Laura Blackmon said that she has not sat down with the departments yet. One of the directions to the departments was for them to look at programs that are no longer needed and other tradeoffs. Commissioner Jacobs asked for clarification on the money the County is spending on functions related to schools that are being funded outside the per pupil. He asked if this would be in a separate category. Donna Coffey said that the $800,000 in fair funding would show in the education budget. Commissioner Jacobs wants to highlight this every time educational spending is discussed. Donna Coffey said that Attachment fi shows the $800,000. Attachment 9 was from Finance Director Ken Chavious regarding fiscal issues. He said that he was on a waiting list of other units of government to speak with the actuaries who provided these numbers. Some people are finding that there are problems with how the numbers were provided. He said that right now there is no requirement to fund GASB 45, there is just a requirement to report it. He said that everyone is not scrambling and trying to fund it right away. He thinks that the issue down the road is how the rating agencies will look at it. He said that he would not recommend addressing this in 2007-08. There is a PowerPoint presentation in the agenda materials from someone at UNC's School of Government. Commissioner Gordon asked Ken Chavious what he plans to do about the fact that the County has a debt and the school system has the assets. Ken Chavious said that the County could have the school systems title the property to the County. Commissioner Jacobs asked if the school systems have similar liabilities regarding retired employees and Ken Chavious answered that the State does. Commissioner Jacobs asked about the $84.5 million and Ken Chavious said that this number will be different every year, and this can be amortized aver a long period of time. He said that this number is based on the assumption that the Caunty would have to pay all of the money, which means that everyone that the County employed that was eligible to retire actually retired and was eligible far this benefit, this is what it would cast. Commissioner Jacobs asked about the plan and Ken Chavious said that the plan is not to address the $84.5 million, but to address the annual required contribution, which is $8.8 million. Laura Blackmon said that she looked at the preliminary figures and her first reaction is that the benefits clearly need to be changed. She said that the current plan is very generous. Commissioner Jacobs asked about other states that have done this already and Ken Chavious said that this is new to everybody this year. Geof Gledhill asked if the Local Government Commission had weighed in on this and Ken Chavious said that the LGC has said that it is a reporting requirement for the financial statements, and the LGC reviews the County's financial statements. There will be exception from the LGC if it is not reported, but not if it is not funded. 2. Status Report -Park Pre-Construction and Design Protects Environment and Resource Conservation Director Dave Stancil presented this item. The four parks that are in process are Northern Park; West Ten Soccer Center; Fairview Park, Phase I; and Twin Creeks Park, Phase I. He said that last night was the last meeting of the New Hope Park at Blackwood Farm Master Plan Committee, which will complete the sixth master plan that has been done since 2042 for park facilities. Also, it was ten years ago that a first in a series of reports was created, which changed the way that parks and open space planning were done in Grange County. He said that there are some decision points associated with these parks. There were summary sheets and maps in the agenda packet for each project. Narthern Park The site plan for the park {full master plan} has been approved, with a condition related to the wastewater system to be resolved before building permits are issued. In order to stay on schedule far construction bid award by June, staff has developed options for Phase I for the park based on new construction estimates -both with and without State grant funds that are pending consideration ($500,000}. If this approach is acceptable, construction drawings and bid documents will be finalized on this basis and construction bids solicited, with a June 26 target date far construction bid award by the Board. This would enable construction to begin this summer. The Manager recommends that the Board review the proposed facilities far Narthern Park, Phase I; authorize staff to proceed to solicit construction bids for Northern Park in accordance with the schedule to provide for bid award in June; and discuss names (if desired). Chair Carey said that the community should be involved in naming the park. Commissioner Jacobs would like to keep the Northern Center renovations in mind through this process. He said that this is an orphan project. Laura Blackmon said that she did a site visit and had same preliminary discussions with the Public Works Director and the budget implications. She said that the renovations are very expensive and she suggested considering replacing the facility. Commissioner Jacobs asked that at the very least, he would like to keep up with the permitting process for the septic system. Commissioner Jacobs made reference to the naming and asked that Planner Tina Moon research the history of this facility and some appropriate names to consider. Commissioner Jacobs suggested keeping a list of what is not being funded as it relates to parks, sa that the next bond can include what is not being achieved at each of the facilities. Commissioner Gordon made reference to the naming and said that she thought that there was another working name. The band referendum shows Cedar Grove Park. Dave Stancil said that this was before the working name was chosen. Commissioner Gordan asked about option 2 and how much the individual items cost (lighting, the fields, other amenities, walking track, etc.). Dave Stancil said that the estimate for lighting the ball field and track is about $185,000. The picnic shelter with restrooms is about $190,000. The basketball court is about $107,000. The walking track is $40,000. Commissioner Gordon said that the walking track was of particular interest to the community. She thinks that this should be one of the priorities included in the bid. Laura Blackmon said that it could be done as an add alternate until the outcome of the grant is known. Commissioner Jacobs said that when the park plan was done, the community prioritized the different components. He suggested replicating the priority list. He agreed with Commissioner Gordon about the walking track. Dave Stancil said that, with the current timetable, construction could begin this summer. Commissioner Gordon said that she would like to see the answer to the question about the priority list prepared by the community and see how it tracks with the options. Dave Stancil said that the priorities were already reflected in option 1. Commissioner Jacobs said that if the walking trail is the only thing missing and it is only $40,OQ0, then it could be included anyway. This will come back for approval on April 24tH West Ten Soccer Center To move the project along, steps are currently underway to get the field construction underway on an aggressive timetable. Field construction bids will be advertised soon, with a bid opening proposed for May Stn. A Site Plan has also been submitted to the Planning Department for approval. Current plans would have a construction bid award before the Board on May 15tH Direction provided by the Board at the work session would be incorporated into a subsequent decision on the April 24tH or May 3~d Board agenda. Recreation and Parks Director Lori Taft said that the projection is that the field surfaces would be finished in August. Commissioner Nelson said that there is some concern from the soccer community that this has morphed into a larger facility with a bigger scope (buildings, bathrooms, etc.), and there were questions about eliminating some of the items like bleachers and a scoreboard and moving the money toward fields at Twin Creeks, turfing the field at Smith, or fields at Southern Community Park. He asked for input on this. Laura Blackmon said that the estimate for the building was $700,Q00. Same of the building will have to be built because there must be some equipment storage. She said that the direction she got from the Board was to do West Ten. The initial concern right now is the fields and getting them done in time for them to grow. The approval for the funding is on the April 24tH agenda. Commissioner Gordon said that she is a little disappointed that mare of an effort was not made to coordinate with Gravelly Hill Middle School, because there are adjacent facilities which could also be used, thereby reducing the need to construct them for the soccer center. She said that she was also concerned that the bond shaved soccer fields that would be dispersed around the County. She thinks that there are transportation and emission issues with this complex. She made reference to an email from a citizen to Lori Taft that was copied to her about where the sanctioned soccer players are. It shows that there area about 10 times as many of these players in the southern part of the county. She said that she thinks that the County should be maximizing the number of soccer fields and that they should be near the players. She agrees with building same fields at West Ten, but she is skeptical about a complex. She made reference to a letter from Triangle United Soccer about the possibility of a public/private partnership. She asked if there has been any discussion with Triangle United Soccer about this. Lori Taft said that she spoke with same representatives. Commissioner Jacobs said that this is a decision item at the next meeting, and this debate should be postponed to that meeting. Fairview Park, Phase A Request far Proposals for the engineering and plan approval work has been issued. An interview team would be formed to recommend a firm for this work, and a contract for the work is anticipated to came before the Board for action in May. Playground replacement is underway. The staff would like to proceed to develop a selection team to evaluate the firms and make a recommendation to the Board for a contract, which would came back before the summer break. The staff would like direction on the makeup of this team. The County owns part of the land and the Town of Hillsborough owns part. Staff would suggest including representatives from the Town of Hillsborough for this team. The Board agreed. Commissioner Gordan said that she would like to see this move forward expeditiously because the County has been promising a park here for a long time. Twin Creeks Park, Phase With Elementary School #10 underway on the schools campus portion of this 193-acre site, a staff team and the design/engineering firm have been working to prepare the extensive Conditional Use Permit application materials to submit to the Town of Carrboro for approval of phase I of the park. Several preliminary development meetings have been held with Town staff and attorney, as have discussions with adjacent property owners about shared infrastructure. Carrboro staff has suggested several components to be included in the application, outlined in the attached summary. Updated cost estimates for Phase I of the park have been developed, however available funding is insufficient to build Phase I at this time. An alternative scenario to continue with the design work and use these funds temporarily toward soccer fields elsewhere is proposed. There could be some economies of scale by building all four fields at one time. This would save $275,000. As a result of this, and in light of some recent discussions, there is an alternative scenario to continue with the plan to submit the Conditional Use Permit (CUP) application for the four-field complex, continue the infrastructure negotiations, address the financing needs for the larger four-field complex as part of the CIP discussions later this fall, and in the short term borrow (on a temporary basis) from same of the funds to look at creating soccer fields using artificial turf at a location such as Smith Middle field in the interim. Laura Blackmon said that she needs to look at what the County is producing with regard to parks throughout the entire community. She said that there are many parks on the books and many promises, and there is no outline for the funding on how the parks are going to be produced. She does not want to do this piece meal. She said that it would really make sense to do the four fields at Twin Creeks. She would like to look at addressing the two current fields that could have artificial turf. She said that, if this approach were taken, she would like to use the funds that are currently available, which is about $1.6 million, to look at providing artificial turf and do it as a partnership with the other soccer entities. This would provide at least two fields that could be used year round and they are in the southern part of the County. Commissioner Nelson commended Laura Blackmon on her recommendation. He thinks that this recommendation is trying to find a win-win situation. He asked about the costs far Twin Creeks and it was answered that $1.9 would be the bare minimum for two fields without irrigation or lighting, and the infrastructure. Laura Blackmon said that her concern is that this is creating Smith Middle School all over again - no irrigation, two fields, and limited use. Commissioner Nelson said that his other concern is that money would be taken from Twin Creeks to turf the fields at Smith. He asked what this would do to Twin Creeks. Laura Blackmon said that it probably would not slow down the timeline. The ten-year capital plan has not been done yet and things can be shifted around. She does not know the entire amount to turf the fields, but she thinks it might be around $1 million. The hope is to get some partners to help. Commissioner Nelson said that if the Smith fields and the four fields at Twin Creeks could be done, he would be comfortable going ahead with West Ten. He would like to sit down with the soccer community and flesh this potential partnership out. He is a little uncomfortable with not knowing where the money is coming from for Twin Creeks. He said that this could be heading towards awin-win situation, with six fields in the south and six fields in the north. Commissioner Jacobs said that he agreed with Commissioner Nelson. He pointed out that with Southern Park, there would be nine fields in the south. He said that one of the two fields at Smith is a partnership with Carrboro, so Carrboro should be at the table with this one. He said that there is even an offer from Sports Endeavors of aloes-interest loan and maybe Carrboro could work with Sports Endeavors this way. The other field is a school system field, so the school system should be involved with that one. He said that he heard that one turf field is the equivalent of 4.5 grass fields. He would like someone to verify this number. Commissioner Gordon said that there should be a commitment for a certain amount of funding and a certain year for Twin Creeks; otherwise it is just supplanting Twin Creeks with the other fields. She would like to find out where Carrboro stands on this. Chair Carey said that staff has taken note to begin having dialogue with potential partners to finance some of these projects. The meeting was adjourned at 1Q:08 p.m. 3. Review of 2007 Goals Item 3 was not covered due to time. Moses Carey, Jr., Chair Donna S. Baker Clerk to the Board