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HomeMy WebLinkAboutMinutes - 19870617 APPROVED FEBRUARY 1. 1988 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS BUDGET WORK SESSION JUNE 17, 1987 The Orange County Board of Commissioners held a budget work session on June 17, 1987 at 7 : 30 p.m. in the District Courtroom, Hillsborough, North Carolina. BOARD MEMBERS PRESENT: Chair Shirley E. Marshall and Commissioners Moses Carey, Jr. , Stephen Halkiotis, John Hartwell and Don Willhoit. STAFF PRESENT: County Manager Kenneth R. Thompson, Assistant County Managers William T. Laws and Albert Kittrell, Finance Director Gordon Baker, Clerk to the Board Beverly A. Blythe, Deputy Finance Office Ken Chavious, Purchasing Director Pam Jones, Budget/Management Analyst Donna Wagner, and Director of Personnel Beverly Whitehead. Chair Marshall read a prepared statement about school merger and equity in funding between the two school systems which is attached to these minutes in the Minute Book on page Sue Baker, Chair of the Chapel Hill-Carrboro Board of Education, read a prepared statement in response to a memo from Chair Marshall dated June 5, 1987. That statement is attached to these minutes in the Minute Book on pages . Lindsey Efland, Chair of the Orange County School Board, remarked that the members of the School Board understands the county's budgetary concerns but that they wish to emphasize that their continuation budget, as submitted, was very solid. Agreement has been reached on some items, but some programs will be curtailed if the money is not granted as requested in the continuation budget. Dr. Lunsford, Superintendent of Orange County Schools, brought forth for discussion two issues -- electricity and insurance costs. An amount of $341, 000 has been included in the Manager's recommended budget although $354, 000 was requested and is what is actually needed. Wayne Watts, Business Manager for Orange County distributed a scheduled showing the estimated electricity usage and costs. The County Manager' s recommended budget allows for a 6.5% increase which Watts stated would not be sufficient to cover the anticipated costs. , With reference to the insurance costs, Lunsford stated they had budgeted for a 25% increase and every indication is that the increase will be at least 37%. Both items result in a $45, 000 shortfall. Dr. Lunsford stated that agreement has not been reached on the con- tinuation budget. He explained for the Board the Assistant Principal allotment procedure followed by the State which is based on the number of state paid teachers in each building. Gerry House, Superintendent of Chapel Hill-Carrboro Schools stated a similar situation with electricity and insurance costs. Their continuation budget is about $25, 000 short for these two items. Their main concern is with the expansion budget and not the continuation ,budget. Dr. Lunsford pointed out that the net effect over time of less than a continuation budget has a significant impact on the fund balance. Gerry House stated that monies from their fund balance had been appropriated to help balance the continuation budget. This will leave the fund balance at less than $300, 000. With reference to the refinement list which totals $471, 000, Lunsford stated it includes items which are crucially important if the system is to move forward. Gerry House indicated their expansion budget was developed in response to goals set forth by the Board of Education and based on those areas of greatest need. Teacher supplements were discussed comparing those proposed supplements for the Chapel Hill-Carrboro system with those presently in effect in the Orange County System and and explanation was given on how the Career Ladder fits in with the supplement system. it was pointed out that in supplemental payments Orange County is lower than Chapel Hill Carrboro in all areas except one. The Board agreed that the desire is to be able to pay supplements in an effort to keep good teachers in the system but that once an allocation is made, the responsibility for what the money is used for lies with the School Boards. The budget process was discussed and it was pointed out that the problem seems to be that once money is allocated, the School Boards then make the decision for spending the money which may be different than what was intended or outlined to the Board. Kay Singer, Orange County School Board, suggested taxing the Smith Center at $1. 00 per ticket which would pay for all supplements in both school systems. Chair Marshall pointed out several reasons why this could not be done at this time. Carolyn Horn emphasized that the Chapel Hill-Carrboro School District has a district tax for subsidizing the needs of the school system which should be increased as needed. A way needs to be found to equalize the funding received - Orange County by way of the Career Ladder and Chapel Hill-Carrboro by way of the District Tax. Commissioner Willhoit stated it would take three cents on the general fund tax rate and two and one half cents on the district tax to fund the continuation budget for both systems. CURRENT CAPITAL Gerry House stated that the $450, 000 current capital in the Manager's recommended budget is not sufficient to meet the capital needs. Mobile classrooms will cost approximately $107, 000 which leaves $343 , 000 for ongoing capital needs. This will allow maintaining the facilities with the capital needs falling further behind. Dr. Dan Lunsford stated that the $450, 000 recommended will allow nothing for doing the backlog of work that needs to be done. He pointed out that money was not allocated for the architect work for the new school or for the completion of the high school project - media guidance component. The Board's goal of moving toward a benchmark of $750, 000 for each system for current capital was discussed. It was agreed that the long range capital needs must be addressed so that it doesn't keep draining the money that is needed for current capital. The possibility of a bond issue to fund the long range capital needs was discussed. Chair Marshall indicated that many decisions need to be made on the projects to be included as well as the process to be followed. May of 1988 would be the first date available to place a bond issue on the ballot. With no other issues to discuss, Chair Marshall adjourned the meeting. The next regular meeting will be held on July 6, 1987 at 7: 30 p.m. in the courtroom of the Old Courthouse, Hillsborough, North Carolina. Shirley E. Marshall, Chair Beverly A. Blythe, Clerk 1 APPROVED AUGUST 3 , 1987 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS BUDGET SESSIONS JUNE 22, 1987 The Orange County Board of Commissioners held a budget session for discussion of the 5-Year Capital Improvement Plan on June 22, 1987 at 4: 00 p.m. in the Multipurpose Room of the Southern Orange Complex, Chapel Hill, North Carolina. BOARD MEMBERS PRESENT: Chair Shirley E. Marshall, Moses Carey, Jr. , Stephen Halkiotis, John Hartwell and Don Willhoit. STAFF PRESENT: County Manager Kenneth R. Thompson, Assistant County Managers William T. Laws and Albert Kittrell, Finance Director Gordon Baker, Recreation Director Mary Anne Black, Clerk to the Board Beverly A. Blythe, Deputy Finance Officer Ken Chavious, Purchasing Director Pam Jones, Public Works Director Wilbur McAdoo, Budget Management Analyst Donna Wagner and Personnel Director Beverly Whitehead. Chair Shirley Marshall asked that the Board consider two policy issues as the 5-Year Capital Improvement Plan (CIP) is discussed. The first is the optional half cent capital reserve and whether the Board might like to see that limited to buildings, land, land and building improvements, enovations, restorations, and lease purchase of equipment over $50, 000. he second is that one of the ways to raise money is the use of the two- thirds net debt reduction. That has traditionally been used for emergen- cies. A policy was adopted at the time this method was used for the Efland sewer project. The Board needs to reaffirm the policy made or to make a new policy on the use of this method of funding. Chair Marshall requested that the County Manager review in detail the CIP and explain the logic and why things are placed where they are and also any surrounding commitments or obligations that might be a part of the total problem that may not have been discussed. RESERVOIR Thompson indicated that the engineer' s estimate for land acquisition for a single reservoir is $4, 000, 000. He indicated the cost would not be more if two reservoirs are built. The only difference would be in the sizing. Chair Marshall questioned the statement which indicated that bond proceeds from a service area which includes all but the OWASA District would be the source of funds for this project. She asked if the management group was working on a plan where work would take place among jurisdictions and therefore not have to limit the service area to other than the OWASA District. Thompson indicated it would be a countywide bond with a countywide service area to continue the interlocking of the two areas of the County. Negotiations are under way which will enable this interlocking o happen. Chair Marshall asked Ken Thompson for project dates as the CIP is teviewed. Thompson stated that the two water committees will be reporting to the Board in about two and one half months. At the present time, the engineer is finishing his work which includes the site committee. 2 Commissioner Hartwell stated that the report from the two committees depends in part on what Hillsborough may do with a proposed bond issue which would tie up their ability to fund capital improvements to their water system. Chair Marshall emphasized the importance of receiving the information in time to make a policy decision and a decision on what to include in a bond referendum for the May primary. Commissioner Willhoit stated that the money for the reservoir should not be dependent upon general fund obligations. If it is going to be funded through bonds that it should be revenue bonds or a source that can be identified. For the resource recovery facility, the money should come from the landfill fees or a 3-party bond. Commissioner Hartwell stated that in the future land will be needed by somebody for a reservoir and the likelihood of a bond issue passing would increase if acquisition of land for the purpose of securing good water were included. After a brief discussion, Chair Marshall stated that this would probably not be part of the countywide bond issue. EMS 911 CENTER EXPANSION Thompson indicated the expansion would house an ambulance and some additional staff. The operating budget includes a fourth console which will take one of the offices. Negotiations are taking place for securing the land from the school. The cost of the land will be approximately $15, 000. Chair Marshall stated that unless someone objects, she will assume that it is the consensus of the Board that the information and dates in the CIP are satisfactory. The Board indicated agreement that the project listed may not occur as listed in the CIP but will occur when needed within that five year period. HAZARDOUS MATERIALS Thompson indicated that the program is funded for the second year and will enable further training and purchase of supplies associated with that training. Dr. Lunsford asked for clarification on what is included in the capital budget. He was questioning the inclusion of training and supplies for the Hazardous Material Team. Thompson explained that this project will be funded from the 20% half cent sales tax money and is a one-time expenditure. JAIL COMPLETION Thompson explained that this project would add an additional eight cells for the jail. In FY 1988-89 the minimum security facility would be constructed. These projects address those items listed in Mr. Atlas' report. The $51, 300 construction cost would cover moving the probation officers back to the jail on the second floor of the old building and finishing the area in the jail that was left unfinished by the original contractor. Nothing major was left out of the report. Bill Laws stated that the total amount of the project would permit an additional 20-30 beds for the minimum security section which would free up about eight spaces. SOUTHERN ORANGE RESCUE SQUAD EXPANSION Thompson stated that the work will be done as soon as the money is available and not in two steps. PARKS AND RECREATION Thompson noted that this section preempts the master park plan and the report that will be presented in November. The proximity of future park 3 lands in the various townships and an assumption to locate park development where public lands are under public ownership were considered in these equests. A CREEK RESERVOIR PARK Thompson noted that OWASA is working with the County to examine the feasibility of a park at the Cane Creek Reservoir. The $122, 000 would cover the cost of the landscaping and trails and some minimal facilities for picnicing and boating. Chair Marshall asked that the bond proceeds be eliminated as a possible source of funding. EFLAND CHEEKS SCHOOL PARK Thompson indicated that space around the school would be developed for the dual purpose of physical education and park land. Chair Marshall asked that this be moved up in the plan. It is presently scheduled for FY 1991-92 . FAIRVIEW PARK This project would fund phase II as designed by the County consultant. Phase I is completed. However, other facilities are needed for organized recreation. Chair Marshall questioned if a park which is so involved with a particular neighborhood would be suitable for a countywide bond issue. Thompson stated that the plan calls for Fairview Park to be a district park with access from the neighborhood and an access from NC86. PARKLAND ACQUISITION V Recreation Director Mary Anne Black explained that land has been tified that is already owned by the public - Chapel Hill, Carrboro and ge County. She compared this figure with the nationally accepted standards for park systems to determine what is needed for the next five years. She presented the amount of acreage needed for parkland each year for the different townships. Little River Township 4-1/2 acres Cedar Grove 5 acres Cheeks 9 acres Hillsborough 18-1/2 acres Eno 11 acres Bingham 14 acres Chapel Hill 74 acres On an average this totals 137 acres each year. This is based on a national average of 10 acres per 1, 000 people population. Commissioner Hartwell endorsed the idea of using land adjacent to reservoirs for parkland. HOMESTEAD RECREATION CENTER Ken Thompson stated the purpose of the project is to remodel the Homestead building to be an active recreation center. This project will fund the repair of the existing building and bring it up to code. VHE ART SCHOOL This project would add equipment to the facility that will be used by the Department on Aging. The County has been invited to use the building for their Commissioners Meetings. The Board removed this project from the CIP and placed it on the mark-up list - $3 , 400. 4 SOUTHERN HUMAN SERVICES COMPLEX This project will consist of upgrading the parking lot and improving outside lighting. After a brief discussion about the parking lot, Chair Marshall asked that this project be brought back to the Board before it goes forward. Bill Laws indicated that the plans are to grade down the front side of the building. The Board questioned the issue of transportation or a turnaround for bus transportation and also the fact that there are no plans for expansion of the building in the 5-year CIP. Thompson indicated there are no plans for expansion but there are plans in the CIP for a new complex on the site to the north which would house human service staff and judicial staff. Chair Marshall asked that the County Manager work very closely with the Town of Chapel Hill on the location of the new building. AGRICULTURE BUILDING This is a contingency amount for the renovation of the building on Court Street that will be used to house Child Support Enforcement, Commission for Women, Juvenile Court Counselors and a portion of the Register of Deeds Office. ANIMAL SHELTER EXPANSION This project is scheduled for FY 1990-91 and would expand the shelter to accommodate future boarding requirements. COURTROOMS The Board asked that this item be removed from the CIP and added to the mark-up list. They endorsed the padding of the old Courtroom benches and deleted the padding of the benches in District and Superior Courtrooms. GRADY BROWN HUMAN RESOURCE CENTER This project would provide handicap accessibility to the building by means of ramps and chair rails. LIVESTOCK/HORTICULTURE MARKET AND RURAL EDUCATION CENTER This facility would be shared by a number of agencies. It will cost $340, 000 just for the construction and land acquisition. Commissioner Halkiotis noted that the statement "this project provides for the purchase of the Livestock Market on Highway 86" is incorrect. He stated that it is important for the Board to show a good faith effort before asking the farmers for the monies necessary for the operation of the center. NEW COURTHOUSE IMPROVEMENTS PROJECT This project involves property acquisition and minimal development of a passive recreational area behind the Courthouse. This project is contingent on the County being able to buy the land. At the present time the owner would like to lease this land to the County rather than sell it outright. After a brief discussion it was decided to strike this item from the CIP. NORTHERN HUMAN SERVICES CENTER This project consists of replacing traps and deteriorated steam lines (boiler system) due to their age and updating the electrical system in the building. Commissioner Halkiotis questioned the cost for owning the outside 5 lighting versus leasing from the power company. No definite answer was given. LD COURTHOUSE This project includes improvements to the outside appearance with landscaping and repair work to the sidewalks. It was decided that this item should come out of current operating expenses. PLANNING AND AGRICULTURE CENTER This projects includes major roof repair and upgrading of the parking lot. Chair Marshall emphasized that this project needs to include skylights. Commissioner Willhoit stated that the lights need to be replaced because of the glare. Bill Laws explained that there are some problems with putting skylights in a metal roof and it may be better to install some long windows at several intervals. Chair Marshall suggested that this be discussed at the time the plan is brought back to the Board for approval. TAX AND RECORDS BUILDING EXPANSION This project involves building an addition of approximately 8, 000 square feet to the Tax and Records Building. This can be accomplished while still staying within the guidelines of the historic district. PUBLIC WORKS FACILITY This project encompasses constructing a new administrative office. The xisting trailer would be used for storage of materials. AMBULANCE REPLACEMENT Discussion was delayed until a later date when Bobby Baker will present a plan for handling the nonemergency transports. VEHICLE REPLACEMENT This consists of vehicle replacements for several of the County Departments which are listed on pages 48-62 of the CIP. Finance Director Gordon Baker expressed a desire to see money put aside each year for the replacement of vehicles so that when vehicles need replaced, the money would be available. Mary Anne Black stated that vehicle replacement for the Recreation and Parks Department is scheduled for FY 1988-89 . In two years, a large bus, two trucks and a van were taken off line and not replaced. The Department is operating with one truck that needs to be replaced now. DATA PROCESSING EQUIPMENT This item will be discussed in a work session that is scheduled for Thursday, June 25 at 4 : 00. DISPATCH CONSOLES This project provides for the replacement of three Emergency Services consoles. U TRONIC VOTE TABULATORS PURCHASE This was discussed at a work session held on June 16, 1987 at 4 : 00 p.m. incoln Center. COUNTY REMAPPING This provides money for the third year of the five year remapping 6 project. No decision has been made on the GIS. In answer to a question from Commissioner Halkiotis, Thompson stated that the Land Records Manager will present a recommendation for increasing the fees charged for maps. SCHOOL CAPITAL RESERVE FUND - LONG RANGE PLAN AND BUDGET Chair Marshall stated that it is extremely important to know what parts of the long range plan for each system should be included in a bond issue. Superintendent of Orange County Schools Dan Lunsford spoke about two items that were requested in the budget but not included in the County Manager's budget. First was the architectural fees for the new elementary school in the amount of $147, 000. He stated that it is important that everything be ready to go to bid in April or May, 1988 so that construction can begin in the summer of 1988. This item was placed on the markup list . The second thing requested but not included in the budget is phase 2 of the Orange High School Project. In the CIP it is designated in the 88-89 fiscal year but it is desired that this project be accomplished in the 1987-88 fiscal year. The original cost estimate was $250, 000. That estimate is now $384, 00 Superintendent of Chapel Hill-Carrboro Schools, Gerry House stated that in preparation for the budget session to be held on Wednesday, the long range needs were reviewed and although a new school is not being requested, extensive renovations and expansions are requested for each of the schools at a cost estimate of seventeen million dollars. Chair Marshall indicated that the renovation and expansion projects for the schools would need to be prioritized. ADJOURNMENT With no further comments, Chair Marshall adjourned the meeting at 6: 30. Beverly A. Blythe, Clerk Shirley E. Marshall, Chair