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HomeMy WebLinkAboutMinutes 06-06-2013 APPROVED 9/17/2013 MINUTES BOARD OF COMMISSIONERS BUDGET WORK SESSION June 6, 2013 7:00 p.m. The Orange County Board of Commissioners met for a Budget Work Session on Thursday, June 6, 2013 at 7:00 p.m. at the Southern Human Services Center in Chapel Hill, N.C. COUNTY COMMISSIONERS PRESENT: Chair Jacobs and Commissioners Alice M. Gordon, Earl McKee, Bernadette Pelissier, Renee Price and Penny Rich COUNTY COMMISSIONERS ABSENT: Mark Dorosin COUNTY ATTORNEYS PRESENT: COUNTY STAFF PRESENT: County Manager Frank Clifton, Assistant County Manager Michael Talbert and Clerk to the Board Donna Baker (All other staff members will be identified appropriately below) Chair Jacobs said he wanted to have a discussion beforehand to give the Board an opportunity to express their concerns and questions about the schools' budgets. Commissioner Rich said she has heard a lot of passion during the public hearings, and she hopes the Board can be responsive to that. She said one request that has stayed with her was the request from the Jackson Center. She said this center has not requested funding before, and this is a small request for an organization that does a lot of good. Commissioner Gordon said she hopes something can be done about teacher assistants in both school systems. She said that she has looked at information from CHCCS regarding the opening of Northside. She said that the Board has historically used the district funding to fund the opening of new schools, so this needs to be looked at. She said it is a very challenging year, and there is no way to know all that the state legislature will do. She said the Board just needs to do the best possible job with this budget. Commissioner Price said she has heard a lot about the schools, and she would like to provide as much funding as possible for both teachers and facilities. She is concerned about some of the non-profit support services that are supplementing the work for the county, such as Brush with Kindness (Habitat), after school programs, the Arts Center, and the Jackson Center. She would like to see how some of these things can be supported. Commissioner Pelissier said everyone is concerned with the state budget cuts, but the county can't fill in all of the gaps from the state and federal governments. She feels that the whole spectrum of education needs to be considered, including pre-k. She is not happy with what is happening at the state level. Chair Jacobs said it seems clear that the board wants to do more to support public education, within certain means. He said the Board used to have a social safety net fund to supplement state cuts to essential programs. He said this is what the state is doing, yet again. He hopes that the Board can look at setting aside some funds to target places where people will be hit hardest by changes taking place, such as the poverty levels for child care subsidies. Chair Jacobs noted that Commissioner McKee will arrive late. He also noted a change to the order of the agenda to accommodate commissioners who need to leave early. He referred to page 122 in the Budget book as the start to the schools budget discussion. 1. Chapel Hill Carrboro City Schools Ruby Pittman, CHCCS Finance Director, and James Barrett, CHCCS Board of Education member, said there is no official presentation, but this is more of a question and answer time. Commissioner Price said the manager's recommended budget is $4 million, which is $4 million less than what the schools asked for. She asked for an explanation from the manager of why it was cut this much. She would also like to hear from the school officials about what that cut would mean. Commissioner McKee arrived at 7:15pm. Frank Clifton said there are several aspects with school funding. He said there is an established policy that the county will try to maintain 48.1% of general fund revenues dedicated to schools. He said this number goes straight to schools and includes operations, capital and debt service, and the dollar distribution changes year to year. He said there are also several programs in addition to this that are funded with $3 million in school related funds. He said that any additional allocations to schools are split based on the number of students, as governed by state guidelines. He said that if the additional $3 million is included the percentage is closer to 49%. He said there has been a 3.2% growth in revenue based on existing revenue streams and the existing tax rate, which equates to just over $3 million. He said that $2.4 million of this was allocated to schools, based on accommodating the growth in student numbers. He said CHCCS has the district tax, which can be increased to make up for what the county does not fund. Frank Clifton said the key element for the Board is that there is almost no growth in the tax base. This creates a choice of priorities and what to fund. He said staff did what could be done within current revenue streams, and it is the Board's decision whether to do more and how to address that. James Barrett said the school board has not had a discussion of what programs will be cut based on the current funding recommendations. He said the CHCCS budget also does not include other cuts from the state; and some of these items in the budget are state mandated programs, such as health and pension programs. He said the district would need to take other cuts if there is no additional funding. He said there are reductions in this package that the Board of Education (BOE) has already voted to take, and many of these were difficult decisions. He said there has been very negative feedback regarding some of these cuts, such as foreign language classes. He said the biggest mandatory expense is the Northside Elementary School opening. He said that this is a critical need, and if funding for this opening is insufficient, money will have to be pulled from other areas. Commissioner Rich questioned why the county would build a school without being prepared to fund the opening. She said she was with a group of people that did not come to the public hearing and these residents were not in favor of raising taxes. She said this is because these residents cannot afford it. She said the Board needs to look at what can be done without hurting residents. She feels it is important to look at what can be done to support the opening of the school. Commissioner McKee said he is hearing the same thing about holding the line on the general property tax. He believes there is room to accommodate the basic needs without a tax increase. Commissioner Rich said she is not necessarily saying that the Board shouldn't raise taxes, but it needs to be balanced out and not just a reaction to passions. Commissioner Pelissier said one of the things that concerns her is that the CHCCS's request is so much higher than the OCS request, even considering the difference in student numbers. She said that if more is given to CHCCS, it may result is OCS being given more than was requested. She said this has to be weighed out, especially in the face of Northside opening. Commissioner Gordon said there is a precedent for opening CHCCS schools using the district tax, and this should not be discounted as a possibility. She said the voters support that. She noted that voters in the CHCCS district voted for a district tax, whereas OCS voted against one in 2005. She said it may be possible to move money around, and this can be looked at, but there is no way to know and the needs are large. Commissioner Price said, as much as she believes in a strong school system, she does not want to raise taxes. She said that the poverty level is growing in Orange County, and the cost of living is so high that residents are moving to Durham and Alamance County. She said raising taxes should not be the first choice, and the option of moving money around should be examined. She said that the people who showed up at the public hearing in favor of a tax increase are the people who have cars and the time to attend the meeting. She noted that there are many residents without the time or transportation, and these same people feel their opinion does not hold weight. Chair Jacobs said he does not feel there is a need to raise the county wide property tax in order to fund the schools; that is why the district tax is there. He said a lot of what goes on during this time of year is like a dance. People aim high and ask high. The manager aims low, so the Board looks good when the funding is higher. He asked how much would be necessary to restore teacher assistant positions. Ruby Pittman said the budget cut is $1.3 million in teacher assistants, or 35-37 positions. Chair Jacobs said there are different interpretations of fund balances for school systems. He referenced an amendment on page 17 in the agenda tonight, in which the school system explains why there is no excess fund balance that can be applied. Frank Clifton said staff uses the reported numbers from the schools. He said each year the number that is applied is the number that the schools report to the state. He said this is all the staff has until adjustments are made. Chair Jacobs said this means that the school's letter reflects different numbers, subsequent to the numbers submitted to the state. James Barrett said the allocation of$3.2 million for next fiscal year is included in the budget that is already passed. Paul Laughton said the letter shows the appropriation from this year, and the county takes the audited number. He said the county looks at the policy of the percent of minimum needed, which is 5.5% for CHCCS and 3% for OCS. He said this is where the Board saw the estimated excess above the established minimum. Frank Clifton said the Board of County Commissioners has no control over how money is allocated from the schools to their services. He said the Board tries to make sure the County fund balance is at an appropriate level, so that the debt can be sold and stability can be established. He said that there is also a small amount of excess flexible money included in the budget. Paul Laughton referred to the 48.1% target mentioned by the manager. He said there are 5 components that control that. These components are: current expense, recurring capital, long range capital, debt service, and fair funding. He said the debt service is about $1.3m more than last year and that falls into the component of the 48.1%. He reviewed an excel sheet and clarified some of the distributions. Chair Jacobs clarified that $1.6 million is approximately 1 cent on the county property tax. He referred to an excel sheet that tracks funding for the past 25 years and shows that per pupil funding over this time has either stayed the same or gone up. Commissioner Gordon questioned how the capital will be handled. She said that what was presented in the budget document was not complete. She asked if all of the things in the CIP will be in the budget somehow. Paul Laughton said all of the revisions to the CIP are adjusted in their packet agenda, including a summary. Orange County Schools Vice Chair Steve Halkiotis said some things never change, and education is still one of the most important functions of democratic government. He said that these schools are important to the community, and they have high cost. He said much of this cost must be met from County revenue. He understands this is a difficult process, and there are many services and agencies that need to be funded. He is here to advocate for students and teachers in the Orange County School (OCS) district who will suffer when the state legislature chops up the school funding. He listed the many proposals that may impact revenue and he referenced the possibility of re-segregation, lack of pay increase, increased class size, and fewer teacher assistants. He said that the OCS request for additional County appropriation is quite modest. He noted that the free and reduced lunch number has now crossed over the 40% threshold, which is a first for Orange County. He said the school systems continue to receive punishing blows, as legislators fail to recognize that it costs far less to educate a child than to house an inmate in prison or on death row. He said he cares for all of the students in Orange County and he hopes the Board will better the modest manager recommendation. Patrick Rhodes reviewed the following PowerPoint slides: Orange County Board of Education Budget Request Highlights 2013-2014 Return on Investment ✓ Successful 1 to 1 laptop initiative (6-12) ✓ Narrowed Achievement Gaps ✓ Ranked 4th in the state on the combined A.C.T. scores for the 2011-12 junior class ✓ Engineering is Elementary STEM program at Central Elementary School ✓ Strong community support and partnerships OCS Per-Pupil Funding Rankings* ✓ Local Funding 4th ✓ State Funding 79th ✓ Federal Funding 107th ✓ Total Funding 39th North Carolina ranks 47th in the nation Revenue Sources for 2012-13 (Pie Chart) 2013-14 Budget Drivers Unknowns ✓ Virtual Charters ✓ School Vouchers ✓ Changes in the allotment system ✓ Level of state funding County Student Enrollment Projection 2013-14 NC DPI Certified Students 7,501 Less Out-of-District Students 89 Plus Charter School Students 254 Total Projected by the BOCC 7,666 Projected Enrollment Increase: 81 Student Eligibility for Free and Reduced lunch (Bar graph) Impact of Federal Sequestration on OCS Programs ✓ Title 1 $46,559 ✓ Title 11 $11,200 ✓ Title 111 $2,829 ✓ IDEA $95,420 ✓ Career/Tech $3,705 ✓ 21St Century $10,600 Total Reduction: $170,313 State per Pupil Funding (Bar Graph) Comparison of State Funding* (Bar Graph) Funding Reductions from the Proposed Budgets ✓ Governor's budget reduces funding for 27 $879,213 Teacher Assistants ✓ Senate's budget reduces funding for 33 $1,074,594 Teaching Assistants Request for Additional County Appropriation ✓ Reduction of 27 Teaching Assistants $879,213 ✓ Local school safety appropriation $220,000 ✓ Reading teacher at Central E.S. $55,000 ✓ Pre-K itinerant E.C. teacher $55,000 Total Request $1,209,213 Priority Uses for Fund Balance ✓ Orange High School $1-1.25 million steam line replacement ✓ Initial implementation of $1-1.8 million Security study Recommendations ✓ Activity Bus Replacement $500,000 Total: $2.5-3.6 million Commissioner McKee asked for clarification on the County's fund balance. Paul Laughton said the projected number for June 30th keeps the balance right at the 17% goal and policy. Commissioner McKee asked at what point this number would adversely affect their credit rating. Paul Laughton said the policy is reviewed by the LGC very carefully. He said that if the percentage falls just a little it may not have an effect in the short term, but it may affect the long term. He said the main concern is not to jeopardize their AAA rating. He said the desire is to stay at the 17%. Commissioner McKee asked what 1% on fund balance will equal in dollars. Paul Laughton said 17% puts the number at $32 million in fund balance. He said the Board needs to be mindful that revenues don't come in until later in the year, and that fund balance is used to pay monthly capital to the schools and to pay bills. Commissioner McKee said that the 17% represents 3 months of revenue, and Paul Laughton agreed. Commissioner Price said that part of the reason the budget is decreased is the nutrition services number. She noted that the school board is requesting $37,800 and the county recommendation is $8000. She asked what will happen with this. Paul Laughton said this is the school system's budget, not the County's. Patrick Rhodes said no cuts are being made to school nutrition services. He said there were some changes made in Federal appropriation to reflect that, and this means less local funding has to be appropriated. Steve Halkiotis said their child nutrition is self sustaining and has been showing a profit for the past several years. Chair Jacobs referred to the $900,000 to replace teacher assistants and compared this to Steve Halkiotis' mention of a certain number of teacher assistants that could be replaced. He asked for clarification on whether this is included in the $900,000. Vice Chair Halkiotis said the board is simply looking at scenarios in order to hold on to their teacher assistants, even if it means cutting hours. He said efforts are being made to keep these assistants employed. Commissioner Rich left at 7:59. Durham Technical Community College (DTCC) Penny Gluck said there is no formal presentation, but she and Robert Keeney are here to answer questions. She said there is a lot of excitement about the higher enrollment at their Orange County Durham Tech campus. She said enrollment is up by over 74% this year, and there has been an 83% increase in curriculum course offerings. She said DTCC is here this evening to ask for a modest increase Robert Keeny brings greetings from Durham Tech's President Ingram, who was unable to attend. Commissioner Price said she had attended the graduation ceremonies at DTCC and the excitement was remarkable. She said it is evident that a lot of good work is happening. Chair Jacobs said the Board is very pleased to have a DTCC campus in Orange County. Chair Jacobs asked about the page number order and why this is not in alphabetical order and with page numbers. He noted page numbers for the remaining discussion items. Paul Laughton said elected officials are usually listed first, and then it should go in alphabetical order after that, with a few exceptions. 2. Sportsplex Budget Highlights • Budgeted program revenues for FY 2013-14 are projected at a 9.2% increase over budgeted FY 2012-13 revenues, and program expenditures are budgeted at a 4.2% increase when compared with the FY 2012-13 budget. • Capital improvements to the building will be required in FY 2013-14 due to the age of the facility; a detailed list of these improvements is included in the FY 2013-18 Capital Investment Plan. • The $360,000 reflected Capital Outlay in the FY 2013-14 Manager Recommended Budget represents anticipated surplus revenue that will be held in a reserve account for future repairs/replacement. • Offsetting revenues include the Transfer from the General Fund to cover the annual debt service on the building. The Transfer from the General Fund for FY 2013-14 is $376,450. Paul Laughton referred to page 268 of the abstract, as well as attachment E. He reviewed the additional information listed in the abstract line item breakdown, major programs and revenues/expenses. He noted the Sportsplex is looking at about a 9.2% increase in overall revenues next year and a 4.2% increase in expenses. He said the ice rink has been a major source of revenue increase, as well as the Kidsplex afterschool programs and the fitness programs. John Stock said that a recent forecast showed year-to-date operations line up remarkably well with the budget. He said the facility is beginning to get into some capacity concerns that may affect increasing revenues. He said the 4% increase in expenses is partly due to some unplanned expenditures that included $60,000 for a new compressor, the purchase of a new server and design for a new website. He said that these would normally be CIP items, but because they were unbudgeted, these were paid for out of operating expenses. He said that, after years of 10% annual growth, there has been a slowdown. He said the lobby expansion will allow more flexibility for exercise classes and for Kidsplex. He said there are some aggressive numbers in the CIP. He said the facility is doing its job well and the community is responding to this and driving this growth. John Stock said that some of the key areas of need are for the afterschool, senior and young family programs. He said the facility is open 360 days a year from 5:30 AM until just past midnight, regardless of weather. He said the lobby expansion will pay for itself in terms of more membership. He said that the proposed new turf is to be used, not only for sports, but as a walking area for seniors as well. He said there are child development programs that also use the turf and cater to children as young as 18 months. He reviewed some of the growing programs, including soccer training. He said the center provides a unique perspective on the business of sports. He reviewed several consulting partnerships with other companies. Chair Jacobs said the Board appreciates the Sportsplex and said it is popular with the staff. 3. County Departments Paul Laughton said that the budget and management heads for each department will handle introductions as well as a brief highlight of budget drivers for the next year. He said this will be followed by elaboration from the department heads. Register of Deeds page 237 Budget Highlights • The increase in Revenues, both in the 12 Month Estimate and in the FY 2013-14 Manager Recommended Budget, is due to an increase in recordings from re-financing as well as increased building activity. Darryl Butts reviewed the increase in revenues. He said this is primarily due to an increase in excise stamp fees and register of deeds fees, as well as increase in marriage license fees. He said much of the increase is also due to increases in re-financing or building activity. He said there was no requested capital outlay in this budget. Register of Deeds Deborah Brooks thanked the Commissioners and the manager for their efforts. Commissioner McKee noted the lack of request for any capital outlay. He asked about the department's dependence on technology and asked if there was a good comfort level with this. Paul Laughton said there is an automation enhancement fund in the Capital Project fund and this puts 10 percent of revenues into a technology fund for enhancements. Chair Jacobs referred to the last item on the second page and asked if the increase in stamps is a result of re-financing and increased building activity. Frank Clifton said this is mostly due to re-financing. Chair Jacobs noted that there was a period where there were no projected increases in revenue. Sheriff page 240 Budget Highlights • The FY 2013-14 Manager Recommended Budget includes an increase of$184,469 in Temporary Personnel due to budgeting for seven (7) Reserve Deputies in Orange County Schools (OCS), which is completely offset by reimbursement revenues from OCS. • The increase in Operations is due to a $.05/mile surcharge in Motor Pool for future vehicle replacement within a separate Internal Service Fund; all other Operational accounts remain budgeted the same as in FY 2012-13. Paul Laughton thanked the Sheriff for holding the line on operations. He noted that the increase is due to the surcharge for departments, and this will be done on a three year phase- in that will increase to $.10. He said the $.05/mile brings in about $150,000. Sheriff Pendergrass said he feels good about the budget, and if the reserve deputies can be placed at the schools, that would be good for safety. Commissioner McKee said that vehicles are the department's main expense and he asked if the sheriff is good on his vehicles. Sheriff Pendergrass said there are 6 vehicles on order and there will be 6 more next year. Paul Laughton said the vehicle replacement program will be discussed on June 11. Commissioner Gordon said she would like to know more about the School Resource Officers. Sheriff Pendergrass said, back in December, after the Sandy Hook incident, he put SROs in every school. He said the County has a plan for 7 reserves who will be working in the schools, not as security officers. These officers will be teaching a child abuse reduction education program in every one of the elementary school classrooms. He said all of these officers are certified, sworn, law enforcement officers. Commissioner Gordon asked if this is different from School Resource Officers (SROs), which were discussed in at the budget session in May. She said the information at that meeting said the Sheriff's office would provide SRO's for the middle and high schools. She reviewed the numbers from this proposal. Sheriff Pendergrass said these officers are on an hourly rate and benefits are not being put forth because these are retired officers. Commissioner Gordon asked if this provides SRO coverage for all of the schools in OCS. Sheriff Pendergrass said yes. He said all of the County schools will have coverage, but not the Chapel Hill or Carrboro schools. He said Orange High school has two deputies, so there is a backup for Cedar Ridge. Commissioner Price asked if there are any obstacles with the jail facility improvements or the new jail. She also asked for an update on the shutdown of the Orange County Correctional facility. Sheriff Pendergrass said he is not sure if this new facility is ready to happen, and he is holding his breath on this. He said there is a brand new unit that is capable of holding 800 people. Commissioner Price complimented the Sheriff and his department for their efforts in the County. Commissioner Gordon also expressed her thanks. Chair Jacobs referenced Hillsborough Police Department's desire to start a program in elementary schools for security, and he asked how this affects the deputies. Sheriff Pendergrass said, if Hillsborough is able to get a grant for this program, there would be two officers working three schools- Cameron Park, Central and Hillsborough Elementary. He said that this would be the choice of the Police Department and the school board. He said the Sheriff's department would still have one person in each school. He said the safety and welfare of these children is very important to him and the rest of the department. Chair Jacobs said the Board appreciates the Sheriff's cost conscious efforts. He also complimented the sheriff and his staff for being non- threatening and approachable. He said this is a strength of the sheriff's leadership. Sheriff Pendergrass said the philosophy of his department is to treat everyone how you would like to be treated. Frank Clifton said one of the ways the staff balances the budget is evident if you look at the department request of$10 million and the budget amount of$9 million. He said the $10 million represents the full funding of operations for the entire year, including adding staff positions. He said that these people are phased in. He said that the $9.2 million will be the operating budget for the coming year, but by July of next year the operating budget will be $10.2 million when all staff positions are filled. Emergency Services page 125 Administrative Services: Budget Highlights • The Capital Outlay for FY 2013-14 includes $16,000 for the third year of a three year program to purchase and install AED's in County facilities, and $1,975 for a door card access system. • The FY 2013-14 Manager Recommended Budget includes full year funding for a Radio Systems Technician position (1.0 FTE) approved in November 2012. • The FY 2013-14 Manager Recommended Budget includes $27,300 in Contract Services for the installation of HVAC systems currently in stock to provide back up to 9 1-1 Center and Emergency Operations Center (EOC,) in the event of equipment or power failure. Additional system will be installed in the warehouse to regulate temperature. • The "sitdown" forklift that was purchased with the 510 Meadowlands building no longer functions and is not serviceable, given its age. Without a replacement, Emergency Services is not able to unload delivery trucks, which is a critical function during Strategic National Stockpile distributions and disaster operations. The current forklift is not rated at an appropriate weight capacity to serve the needs of the Emergency Services/the county; the new forklift offers additional weight capacity to ensure that ES can fulfill loading/unloading needs during normal and disaster operations. A lease option of$4,167 is included in the FY 2013-14 Manager Recommended Budget. • The FY 2013-14 Manager Recommended Budget includes additional funds of$22, 125 for uniforms for additional staff and re-branding the entire department. Life Safety Division: Budget Highlights • The FY 2013-14 Manager Recommended Budget includes Capital Outlay funds of $26,835 for a Fire Extinguisher Training System, which will make fire extinguisher training safer for trainees and more cost effective, as well as the replacement of a current fit testing machine and fit testing cards, and includes a computer and printer to allow more portable fit testing for all emergency responders. • Includes full year funding of the Fire Marshal position that was budgeted in FY 2012-13 for six (6) months (starting January 1, 2013) Communications Division: Budget Highlights: • Consistent with the Comprehensive Assessment of EMS and 9-1-1/Communications Center Operations Study, the FY 2013-14 Manager Recommended Budget includes four new (4.0 FTEs) Telecommunicator positions and one new (1.0 FTE) Quality Assurance/Training Officer position, effective January 1, 2014 • The FY 2013-14 Manager Recommended Budget also includes full year funding of two (2.0 FTE) Telecommunicator which started January 1, 2013, and full year funding of a Quality Assurance/Training Officer position (1.0 FTE) approved in November 2012. • Includes increases in Overtime funding of$92,986 to meet Fair Labor Standards Act (FLSA) and for new positions. • The decrease in Operations for FY 2013-14 is due to moving the Motorola maintenance to the 9-1-1 Fund ($37,000), and not budgeting for the Narrowbanding project ($14,800) which was completed in FY 2012-13. • The FY 2013-14 Manager Recommended Budget includes Capital Outlay funding of $14,797 for a paging encoder to use as a backup in the event of a 9-1-1 Center failure, the purchase 4 desktop computers for the 9-1-1 Center, as well as an interactive situational awareness monitor. Emergency Medical Services Division Budget Highlights • Consistent with the Comprehensive Assessment Study of EMS, the FY 2013-14 Manager Recommended Budget includes four (4.0 FTEs) EMS Assistant Supervisor positions, effective January 1, 2014. • The FY 2013-14 Manager Recommended Budget also includes full year funding of 6.0 FTE Paramedic positions that were budgeted for nine (9) months in FY 2012-13. • An increase in Overtime of$143,559 is budgeted in FY 2013-14 to comply with the Fair Labor Standards Act (FLSA) and the change in the work schedule from 24 hour shifts to 12 hour shifts. • Emergency Services requested the replacement of 14 LIFEPAK®15's in FY 2013-14 $528,458 to accommodate nine active EMS units, two EMS Supervisors, leaving seven units for use at special events, equipment service and to ensure sufficient equipment availability should failures occur. These LIFEPAKs are scheduled to be debt financed during FY 2013-14. • Emergency Services is recommending the continued utilization of Target Solutions, on line EMS continuing education software to allow EMS providers to train while on duty and to reduce the number of face to face training hours. In addition this allows for greater performance tracking that is needed to maintain records for state compliance. Darryl Butts said there are nine new full time employees in the above recommended budget and all of them are recommended to start on January 1St. He said there is also full year funding coming on for staff members not previously fully funded. He said there are some overtime increases being implemented. He reviewed the other budget highlights. Jim Groves said the re-branding is because the staff currently wears bright orange t- shirts, and this causes a lot of heckling. He said the re-branding is to get the dress in line with core values. He said the goal is to have staff in polo shirts by the first part of the year, as well as switching to a "hard shirt" with a badge and patch to designate position. He said the goal is to make sure the public knows that this is a professional organization. Darryl Butts said there are areas of decrease in the communications division. Commissioner Price asked about the new shirt color. Jim Groves said the EMTs and paramedics will wear gray. Commissioner Price referred to the capital outlay information on page 125 and said the manager recommended less. She asked if this is regarding the change to the ambulance. Darryl Butts said this change is due to the request of 14 Iifepaks, which are actually debt financed. Paul Laughton said this will be brought back to the Board in the late fall. Commissioner Price clarified that this budget is satisfactory from standpoint of being equipped for safety. Jim Groves said the department has these Iifepaks, though they will need to be replaced in the coming year. The current 14 will continue to have capability. Paul Laughton said this will be part of the fall financing package, along with the vehicle financing. Chair Jacobs asked if EMS had finished deploying all of the defibrillators in the facilities. Jim Groves said this was still happening, and he would check on it and get back to the Board. Chair Jacobs said he was confused by the addition of 6 telecommunicators and how this relates to the increase in overtime. Jim Groves said since the these employees do shift work that is over 40 hours per week, and overtime is built in. He said the more staff involved, the bigger the increase in overtime. Frank Clifton said these people work 12 hour shifts and then have built in overtime per week. He said the pay is done according to federal law. Chair Jacobs asked if the earlier overtime for Emergency Services was to fill in for vacant positions. Frank Clifton said everyone works the staggered shift and everyone has some overtime built in. He said that if someone is out, then another employee has to be paid overtime to fill in. He said that more staff helps balance the overtime. He said that if everyone worked a 40 hour work week, there would be more employees and more benefits; so overtime keeps overall operating cost lower. Chair Jacobs said this just seems counterintuitive. Frank Clifton said the number of overtime hours for substitutes is analyzed, and at some point it makes more sense to hire a position. Commissioner Gordon said it is helpful to have a chart that includes all of the new positions. Paul Laughton said this chart is available on page 31 and 32. Chair Jacobs said, in the past, the County adopted a policy about overtime, and it was tracked through temp and overtime hours. He hopes the County is not going backwards and hiring temporary workers to avoid paying benefits. Solid Waste (including Fee Schedule change requests and Non-Departmental items) 257 ( p. 186-87 and pages 358-59) Budget Highlights • The difference in the FY 2013-14 Department Request and the Manager Recommended budgeted amounts within the Environmental Support division relates to the Charges by the General Fund to Solid Waste for the cost of a position within Tax Administration dedicated to 3R fee collections and the 50% cost of a position in the Planning Department for work on the Regulated Recycling Materials Ordinance. The department had eliminated these costs of$74,401 from their request, but they were added back in the Manager Recommended Budget. • The Capital Outlay of$11,661 in FY 2013-14 is for the replacement of an air compressor. • Continue to fund the planning, education and preparation for ongoing improvements at convenience centers and other programmatic changes per BOCC. • Continue to conduct enforcement of littering, illegal dumping, licensing and other county solid waste ordinance. • Implement closure procedures of MSW Landfill consistent with BOCC's closure decision and applicable State regulations. Dispose of surplus MSW equipment and vehicles once closure is completed. • Complete organizational restructuring per an approved reduction in force. • Landfill hours of operation proposed to be reduced six hours per week due to staff reductions. The MSW Landfill closes on June 30, 2013. • With the MSW Landfill closing, the FY 2013-14 Budget includes the elimination of 2 vacant positions (Landfill Equipment Operator and Landfill Inspector); elimination of 1 position upon the June 30, 2013 retirement of incumbent (Weighmaster), as well as moving 2.0 FTE Landfill Equipment Operator positions from the Landfill division to the Recycling division. Also, there are an additional 2.0 FTE Landfill Equipment Operator positions that are only budgeted for partial year, one through 8/31/13 and one through 9/30/13. • Non-Permanent Personnel is reduced by $56,262 due to the closing of the MSW Landfill. • Capital Outlay of$3,292,149 for FY 2013-14 includes the costs for the Landfill closure • Transfer recycling programs previously funded through the MSW landfill to Recycling Division. • Initiate a mattress recycling program on current landfill property, funded through a special waste tipping fee of$10.00 per piece. Anticipated revenue from this new fee is $25,500 in FY 2013-14. Landfill: Budget Highlights: • The increase in Personnel Services in FY 2013-14 includes the transfer of 2.0 FTE Landfill Equipment Operator positions from the Landfill division to Recycling, and an increase of$20,245 in Non-Permanent Personnel that was previously funded in the Landfill division. • The increase in Operations in FY 2013-14 within this division includes increases in Equipment and Vehicle Supplies and Repairs due to equipment transferred from Landfill to Recycling. • Capital Outlay funds of$76,246 include the replacement of a trailer of hauling recyclables. • The decrease in Revenues in FY 2013-14 is mostly attributed to the elimination of the 3R Fee tiers (Urban, Rural, and Multi-family) • The FY 2013-14 Manager Recommended Budget includes an increase in the 3R Basic Fee from $37.00 to $47.00, effective July 1, 2013. This is anticipated to generate $591,757 in additional revenue in FY 2013-14. • Saved an estimated $112,000 in urban curbside recycling contract costs by transitioning the program to single stream collection in FY 12-13. • Worked with UNC to have them take over the funding of their food waste programs on campus saving the County an estimated $44,000 in food waste/compost contract costs in FY 12-13. • Started to sell used oil to market with estimated revenue of$18,000 in FY 12-13. • Entered a new Household Hazardous Waste disposal and recycling contract in FY 12- 13 saving an estimated $20,000 in contract expenditures. Sanitation Division: Budget Highlights: • The FY 2013-14 Manager Recommended Budget includes two new .625 FTE Convenience Center Operator positions to cover additional hours for two district Solid Waste Convenience Centers (Eubanks Road and Walnut Grove Church Road SWCCs. It also includes the increase of a total of .750 FTEs for four current Convenience Center Operators to handle these increased hours of operation. • The increase in Operations in FY 2013-14 in Sanitation is mostly attributed to an increase in debt service payments for the SWCC improvement projects, and due to additional vehicle maintenance and supplies costs associated with hauling solid waste to the Durham Transfer Station. • Continuation of the SWCC Improvements Project by implementing Phase II of the Solid Waste Convenience Center Improvements at the Eubanks Road Center. • The Capital Outlay in FY 2013-14 includes the replacement of one Skid Steer of $36,363 and Design work costs of$150,000 related to the Eubanks Road Solid Waste Convenience Center (SWCC). The department requested $197,282 for the replacement of a hook lift collection vehicle, but this is not included in the Manager Recommended Budget for FY 2013-14. • The FY 2013-14 Manager Recommended Budget includes an Increase in the Sanitation household fee (Multi-family from $2 to $4, Urban from $10 to $20 and Rural from $20 to $40) to partially fund SWCC improvements, hauling to the Durham Transfer Station and the expanded hours on Thursdays at the Walnut Grove and Eubanks Road SWCCs. These fee increases are consistent with the phased in process to transition the Sanitation division from being fully funded by the General Fund to being funded eventually by the Solid Waste Enterprise Fund. • Expand operational hours at the Walnut Grove and Eubanks Road SWCCs by opening on Thursdays from 7 a.m. to 6 p.m. effective Thursday, September 5, 2013. • The General Fund contribution to Sanitation for FY 2013-14 is $1,869,496; this represents an increase of$275,270 from FY 2012-13. Frank Clifton said, with the closure of landfill, the department decided to add another day to the solid waste convenience centers. He said the current proposal has convenience centers closed on Wednesdays only and re-opens the centers on Thursday. Darryl Butts reviewed the budget highlights listed above. Frank Clifton said the landfill reserve fund is being used for one year of operating cost. Darryl Butts said the general fund contribution for FY14 is $1.8 million, which is $275,000 over FY13. Gayle Wilson said the budget preparation process has become more efficient over the past 8-10 years. He said the solid waste department is going through multiple transitions at this time, with 3R fees and the landfill closing. He said staff hopes to re-stabilize operations and finances in the next couple of years and come out better than before. He said it has been 6 years since the basic 3r fee has been increased. He said the budget proposed for next year is 10% less than this present year. He said efforts are being made to minimize the impact of this current financial storm. Commissioner Pelissier asked about the increase in the household fee. She said it is important to make it clear that the Board of County Commissioners has voted on this before, and it is a planned increase. She asked if this is the last planned increase. Gayle Wilson said the increase started out low and the Board's goal was to gradually increase it with a corresponding decrease in general fund contributions. Commissioner Price said the Board had asked for a meeting with the small haulers, and she would like to know the results of this. She questioned, if small haulers are allowed, how this will affect their revenues. Gayle Wilson said he met with the private hauler from Efland, and he understood her questions and concerns. He has not heard back from her or any of the other haulers. He said staff did an evaluation in-house of what that impact would be, and a report has not been produced yet. Commissioner Price said she does not want to see these small haulers go out of business. Chair Jacobs said the Board could contact the private haulers for a meeting and give them a draft report to look over, and then report back to the Board of County Commissioners Gayle Wilson said this could be done over time. He said he thinks most haulers have probably found a resolution, and this is why none have contacted him. Frank Clifton said many are likely using other landfills or convenience centers. He said even if these small haulers are worked with, it will likely not factor into the bottom line of the budget. Commissioner Price said her concern is that it is deleted in the fee schedule. Frank Clifton said a fee was not created. He said it would likely end up being an agreement with the individual hauler, and the established fee would come before the Board for approval. Commissioner Price asked where the haulers would go if this budget is passed as is. Gayle Wilson said the current policy does not allow small haulers to use convenience centers. He said the new site and concept are not designed for commercial loads. He said he spoke with DENR, and he was told that if commercial loads are accepted at convenience centers, these centers will likely have to be permitted as transfer stations. He said there are significant regulatory issues with this. Commissioner Price said she has also spoken with the Efland Trash Service owner, and she does not feel that these haulers have commercial size loads. She said these are not much larger than a normal load. She asked for staff follow up on this issue. Chair Jacobs asked Gayle Wilson to contact known haulers to see where their waste is being taken and how many people are being served; and then talk with them about state regulations. He asked for the results of this to be brought back to Board of County Commissioners. Commissioner McKee said, with the closing of landfill and the transfer of two employees to recycling, he assumes it is taking more employees to operate that site. Gayle Wilson said due to size of the site, there have been three instead of two employees. He hopes that once residents are trained in use, the staff can be cut down to two. Commissioner McKee said the biggest problem he has with this proposal is the increase of the sanitation household fee. He asked why urban had a $10 increase and rural had a $20 increase. Gayle Wilson said the rural residents use the convenience centers more than urban residents, so this was reflected in the fee difference. He said he is willing to look at this again, but he feels this is a fair spread based on past studies regarding use. Commissioner McKee said all residents do not get the same amount of services for their tax dollars. He said a fee is a tax by a different means. He said there seems to be a disproportionate slant against the rural population. Gayle Wilson said staff feels it is proportionate. Chair Jacobs referred to the 2013-14 objectives and the captured percentage numbers for household waste, plastic, and food waste. He asked if there is an objective of capturing a certain percentage of food waste. Gayle Wilson said this is so new and unique that it would have been a guess. He said staff would like to have a year of experience before making projections. Chair Jacobs said there was an objective regarding regional composting. He hopes the county can get to a place of doing its own local food composting in a closed loop system. Gayle Wilson said staff has given this a lot of thought and there are plans to include food waste at the Eubanks site. He said the problem with composting is the need for a proper place to do it. He said siting issues have brought down many good ideas. Chair Jacobs said he hopes the department has learned from the Walnut Grove experience and can apply this at the Eubanks Convenience Center. He asked for examples of this. Gayle Wilson said one lesson learned is with regard to the the concrete pad. He said these were not made long enough and had to be lengthened; so the pads will be made longer at Eubanks. He said there were some water issues with the canopies that cover sheds, and staff now knows that gutters need to be added to these. He said there will also be a need to address some issues with attendants and how things are grouped together in the new center. Commissioner McKee said a citizen had approached him with complimentary words about the new convenience centers. Asset Management Services (AMS) page 55 Budget Highlights • Decreases in Personnel Services for FY 2013-14 is related to the transfer of an Asset Management Coordinator position to Finance and Administrative Services and the transfer of a Facilities Maintenance Coordinator position to the Department on Aging during FY 2012-13. • The FY 2013-14 Manager Recommended Budget includes an increase in Training and Professional Development costs of$35,545 —AMS plans to aggressively incorporate skills development training in all functional areas to include technical "currency" training, leadership training, advanced certifications in support of the department mission and efficiency. The program also seeks to establish a foundation, culture and identifiable career progression system for more confident, professional, entrepreneurial, and loyal employees dedicated to supporting Orange County government. • Mandated energy costs —Asset Management Services has budgeted for Duke Energy's requested 10% rate increase for electricity and the natural gas industry- projected increase of 10% from current low rates, for FY 13-14. Despite these rate increases, the overall utility budget request includes an increase of less than 1% in utilities due to the divestiture of, and lowering of utility intensity within, certain buildings as well as continued implementation of efficiency measures. • Vehicle replacement funds are being accumulated through the new Internal Services Fund ("ISF") established in FY 2012-13. Effective July 1, 2013, an additional $.05 per mile driven will inure to this fund. An estimated 3,027,000 miles will be driven County- wide during FY 2013-14, equating to an estimated $151,350 in budgeted contribution to the ISF. • For FY 2013-14, the Motor Pool division includes a cost of Personnel, Operations, and Capital Outlay of$1,723,696, less the chargebacks to departments of$1,502,934 for a net Motor Pool cost of$220,762. (Motor Pool division budget highlight). • Capital Outlay of$1,723,696, less the chargebacks to departments of$1,502,934 for a net Motor Pool cost of$220,762. (Motor Pool division budget highlight). • For FY 2013-14, the Motor Pool division projects a decrease in unit costs for gas and diesel. However, overall fuel cost will increase due to the Solid Waste Department beginning to acquire diesel fuel from the County's fuel station located at the Asset Management North campus. The Solid Waste Department is charged back for diesel fuel acquired at this facility. • The FY 2013-14 Manager Recommended Budget includes Capital Outlay funds of $78,994 for the purchase of diagnostic equipment for building and system troubleshooting/repair; the purchase and installation of a camera system for the Eno River parking deck; the purchase of an additional heavy duty lift for servicing ambulances and buses; and purchase of additional floor care machines to service high- demand health care areas at Southern Human Services Center and Whitted Human Services Center. • Reclassified an Automotive Mechanic Helper position to a Facilities Maintenance Technician I during FY 2012-13, and moved the position from the Motor Pool division to Custodial Services division. Darryl Butts reviewed the budget highlights listed above. AMS Director Jeff Thompson said the department is holding the line on personnel and maintaining high quality of service through increased productivity. He said this is achieved through increased training. Jeff Thompson recognized the staff members responsible for keeping costs down and the budget on track. He pointed out information on page 59 regarding the efficiency of maintenance staff management. He said there are forecast increases in energy, and much of this is related to heating and cooling, so the geothermal systems will help to offset this. Chair Jacobs asked about the video recording in the parking deck and questioned if this is live. Jeff Thompson said this will tie into an existing system, which has a 2 week running loop on a digital recorder. This will allow any suspicious events to be recorded and placed on a disk. Child Support Enforcement Page 84 Budget Highlights • 2013-14 Revenues: Revenues will decrease by $195,000 due to reduced expenditure reimbursements (cost allocation plan) and State incentive payments. Unemployment, underemployment and an expected reduction in unemployment benefits will continue to effect collections, next year. Tonya Walton said the expenditure budget for this year totals $905,000, which is a $1300 decrease. She said the $195,000 revenue loss equates to a 13% decrease. She said $150,000 of that is due to a change in the cost allocation plan. This means there are reduced reimbursements for incurred costs. She said there are losses in incentive payments. She said that operations remain relatively flat. Child Support Director Janet Sparks said that what this department does is more important than ever in this tough economic environment. She appreciates the support of the Board. Commissioner McKee expressed his appreciation for staff efforts to take care of the children in Orange County. Commissioner Price asked about the $2500 in capital outlay. Janet Sparks said this was for additional furnishings for the west campus; however this has been removed from the budget, as it was already purchased using this year's budget. Chair Jacobs asked about the rent amount in the Sawyer building. Tonya Walton said this was about $50,000/year. Chair Jacobs said that by moving out the department saved money on rent and freed up space for another business to move in downtown. Tonya Walton said she was reluctant to make the move, but that the parking deck has made it much easier. Cooperative Extension Page 87 Budget Highlights • The FY 2013-14 Manager Recommended Budget includes $5,500 in Capital Outlay for the replacement of a refrigerator ($1,000) and the replacement of a color work group printer ($4,500). • All employees within the Cooperative Extension Service are State employees and are budgeted as contracted personnel, as per the Memorandum of Agreement with the State. • The $5,000 in revenue includes class fee revenue at the W.C. Breeze Family Farm; the County continues to contribute $10,000 for the programs at the Breeze Farm and is included within the department's operating budget. Darryl Butts said there are relatively few changes to this budget. He reviewed the above items. Commissioner McKee commended them on their efforts to assist with the Breeze Farm program. Chair Jacobs asked if Carl Maytec had gotten a copy of the Blackwood Farm master plan and he replied not yet. Chair Jacobs asked that a copy be provided to him. Carl Matyec said his old position is still being held on the county side, and he is trying to address that. He has tried to secure funding from other counties. He said that agriculture is a very prominent business in Orange County, and it is a pleasure to work here. However, he recognizes that this position is still vacant and needs to be filled. He said that many of the traditional farmers are not getting as much attention as the new farmers just entering the business. Economic Development (including Non-Departmental items) Economic Development: Budget Highlights • Note: The Article 46 Quarter-Center Sales Tax has its own section within the budget document, which outlines tax-funded economic development initiatives. Tonya Walton said the Economic Development expenditure budget totals $392,000, which is an increase of$19,000 due to some reclassification. She said there is a non- departmental item on page 188 in the community and environment section. She said this is the Research Triangle Regional Partnership, and there is a recommendation of$20,367, which is a $207 increase. She noted that counties are now being asked to increase contributions in anticipation of state reductions. In Orange County, this will amount to an additional $20,000. She said the partnership states that the money will bring greater economic development opportunities, but the direct benefit to Orange County is uncertain. The department is working with the partnership to gain a better understanding of this, and for now the recommended figure remains the same. Frank Clifton said this will be brought back once all of the state changes shake out. Steve Brantley said the background on the probable fee increase in membership with the Research Triangle Regional Partnership (RTRP) relates to the formula for calculating the fee for membership. He said the county pays the same as Durham and Wake County-15 cents per capita, or roughly $20,000. He said the other eleven counties pay 10 cents per capita. He said the Partnership has asked Orange County to go from 15 cents to 30 cents and has asked the other counties to triple and go from 10 cents to 30 cents. He said the entire region will have to make a decision about this and about whether to stay in the partnership or not. Commissioner Pelissier noted that staff expressed a desire to leverage tourism assets to create more business. She is curious about this objective towards business recruitment. Steve Brantley said the combination of agriculture economic development and tourism strengths can create an agri-tourism endeavor. Chair Jacobs requested periodic reports about economic development activity through either a semi-annual or annual report. Steve Brantley said he will see what can be gathered in a report, and will start providing the Board with this requested information. Chair Jacobs said his experience with RTRP has been that it is equally offensive and insensitive as it is effective. He said he would reserve judgment until he sees the proposal. Steve Brantley said there is a possibility that the State will sub out regional marketing through regional partnerships. He said this would be interesting, but nothing may be known about this for six months. Commissioner Price said she thought that Orange County paid less than Durham and Wake, and Wake has actually been subsidizing other counties. Steve Brantley said the 30 cents per capita may be currently correct for Wake and Durham. He said this is not divulged. He said that Wake County is capable of significant fund raising through companies like Red Hat, as well as banks and power companies. Frank Clifton clarified that these assessments don't necessary come from the government and often come from the Chamber of Commerce or another non- governmental agency. He said that Orange County does not have a large corporate base to pull from. Commissioner Gordon asked if the County will get any more information about the benefits from the increases in this fee. Frank Clifton said this question has been asked in the face of increasing fees, but there has been no answer yet. Commissioner Gordon asked if this answer will come in time to impact the budget. Frank Clifton said the money is not a significant dollar amount. He said this can be allocated later in the fiscal year out of the quarter cent sales tax fund Tonya Walton referred to the Article 46 sales cent on page 53. She said this was enacted in April of last year, and funds are allocated 50/50 between County economic development projects and the two school systems. She said the County anticipates generating $2.6 million in revenue for the upcoming year. Commissioner McKee asked if the amount listed on the second page works out well in terms of allocation. Steve Brantley said the categories are appropriate for now. He said some categories may show themselves to be as active in terms of demand in the future. He said that water and sewer lines are the single area with needs right now. Commissioner McKee said wondered whether adjustments need to be made moving forward. He just wants to clarify that slight shifts may be needed as things move along. Frank Clifton said that the funding now is to create a base. He said the County has been fortunate to have low interest rates that allow for expansive projects. Visitors Bureau and Arts Commission Page 275 Visitor's Bureau Budget Highlights • Occupancy Rates and Revenue: In FY 2013-14, the Visitors Bureau will target a 68% occupancy rate. Orange County's 3% occupancy tax projection is $1.2 million. Carrboro's new 140-room Hampton Hotel will generate an additional $68,482, in occupancy taxes. Additionally, the area'sl,600 hotel rooms will see a slight increase in room rates, back to the industry's 2007 peak rates, and contribute to tax growth. • Travel Revenue and Impacts: Next fiscal year, domestic travelers will spend an estimated $160 million in Orange County, a 5% increase from current year estimates. State and local tax revenues projections from Orange County travel total $12 million. About 1,800 Orange County jobs will be directly attributable to travel and tourism, which will generate $29 million in income, for workers. • Appropriated Fund Balance: In FY 2013-14, the Visitors Bureau will appropriate $20,000 from fund balance, a decrease of$130,000 from the current year. The FY 2012-13 fund balance appropriation funded an advertising initiative, the "Orange County Pride" series and agri-tourism efforts. The Bureau will conduct a research study to assess the effects of the recent advertising campaign, in FY 2013-14. • Town Contributions: In FY 2012-13, Chapel Hill increased its Visitors Bureau contribution by $25,000 to $175,000. The Bureau will request another $25,000 increase, in the upcoming year. Additionally, Carrboro and Hillsborough will have implemented their 3% occupancy tax, which will generate an additional $65,000 and $52,000, respectively. Currently, neither jurisdiction provides a contribution to the Visitor's Bureau. Arts Commission Budget Highlights No significant changes, in FY 2013-14. Tonya Walton said the Visitors Bureau fund is outside of the general fund and includes the Visitors Bureau and the Arts Commission. She said the expenditures budget totals just over $1.25 million. This is a decrease of$37,000 with a corresponding revenue decrease. She said the decrease is due to a $150,000 fund balance appropriation done this year that will not be necessary next year. She said bureau revenues have increased by about $93,000. She reviewed the above budget highlights. Commissioner McKee said the department needs to "toot their horn" more about their accomplishments through these services. He said it is bringing in not only visitors, but also business. Elections Page 67 Budget Highlights • The increase in revenues of$45,900 in FY 2013-14 is due to Municipal Elections to be held in 2013. • The increase in Personnel Services and Operations in FY 2013-14 is due to budgeting for three (3) elections in FY 2013-14; only one (1) election was budgeted in FY 2012- 13. • Contract Services — Recommending a five-year contract with Printelect for voting machine hardware and software maintenance decreasing maintenance cost by $9,653 next FY. Savings in excess of$50,000 over five-year plan or 15% each year versus the one-year plan. Rates are locked in with no additional cost increases on an annual basis during the contracted period. Darryl Butts reviewed the budget highlights above. Chair Jacobs asked, if the voter id system is implemented, how the county can help residents get identification, if necessary. Elections Director Tracy Reams said there are state funds available and every effort will be made. She said there will be a poll to find out how many people do not have identification. Chair Jacobs asked if anyone has any idea how many people in Orange County will be affected. Tracy Reams said no. Chair Jacobs asked if there was a way to make manifests of the voting public to create a program to help with any difficulties. Tracy Reams said staff members are still waiting to see what the state will do and she feels that there will be efforts made to communicate the need for ID. She said she knows that work is being done with the DMV to provide identification cards to those who need it. Chair Jacobs noted that there are no DMV offices in Orange County. He stressed that the Board wants to work with the Elections staff to ensure that all residents who want to vote can do so. Tax administration Page 269 Budget Highlights • The increase in Personnel Services and Operations in FY 2013-14 within the Land Records division is due to the transfer of four (4.0 FTEs) GIS staff positions from Information Technologies Department to the Lands Records division of Tax Administration, which occurred during the current fiscal year. • The FY 2013-14 Manager Recommended Budget includes the reassignment of the Motor Vehicle billing and assessment staff (2.0 FTEs) from the Revenue division to the Assessor division in order to comply with State Statutes regarding assessment work. • The FY 2013-14 Manager Recommended Budget includes an additional $4,900 to assist with forced collections on delinquent registered motor vehicle bills due to the new Tax & Tag State program. • The FY 2013-14 Manager Recommended Budget includes an additional $94,000 to begin a comprehensive business auditing program. This initiative will educate taxpayers on proper listing methods and ensure equity among taxpayers. While the cost of the effort will be offset by discovery revenues, the priority is to ensure that there is equity among all taxpayers. A conservative estimate of return for this investment is 2:1. • The General Fund transfer to the Revaluation Fund is budgeted at the same amount ($125,000) as in FY 2012-13, and assumes the next Revaluation effective January 1, 2017. • The decrease in Revenues for FY 2013-14 is more in line with projected FY 2012-13 collection charges. Darryl Butts reviewed the above budget highlights. Tax Administration Director Dwane Brinson said that a comprehensive tax auditing program is being expanded to help businesses list correctly. He said that 12-15 audits are done on businesses each year, and he would estimate that more than 75% of businesses have never been listed. He listed the classifications that are audited and said that businesses have not been audited consistently for years. He said it is that this is proposed from an equity standpoint. Commissioner Pelissier said that there is a hotel/motel room occupancy tax listed on the objectives on page 271. She asked for clarification on the issue of consistent and verifiable revenue streams for hotels. She asked if revenue is being lost. Frank Clifton said revenue has been lost in the past. He said audits have not been done on a regular basis, and there have been issues with particular hotel operators who were collecting taxes but not paying them as required. He said the goal is not to get people into trouble, but to keep them out of trouble by informing them of what needs to be listed. Darryl Butts said the same vendors who audit the businesses would audit the hotels. Commissioner McKee said he has referred several residents to the Tax Administration office over the past couple of years, and he appreciates their quick response. Commissioner Price asked if taxes can be paid online, and Dwane Brinson said yes. Dwane Brinson said debit and credit cards cannot be used in person, only online. Frank Clifton clarified that statutes don't allow for absorption of the fee, so this fee has to be added to the bill. He said work is being done to make card payments possible in person as well. Chair Jacobs asked about hotel/motel occupancy tax and asked if staff will offer the same audit services to the Towns of Carrboro and Hillsborough, with their new hotel tax. Frank Clifton said yes, this will be offered to them through an agreement. He said there will be a transaction fee of 4.5% that helps offset the County administrative costs. Commissioner Price asked for clarification on the due date and past due date listed for vehicle taxes. Dwane Brinson said he would check on this. The following departments were deferred until the June 11 t" Budget Work Session: • Information Technologies • Planning and OPT, including Efland Sewer (including Fee Schedule change requests and Non-Departmental items) • Public Affairs • Board of County Commissioners • County Manager A motion was made by Commissioner Price Commissioner McKee to adjourn the meeting at 10:16 pm. VOTE: UNANIMOUS Barry Jacobs, Chair Donna Baker Clerk to the Board