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HomeMy WebLinkAboutMinutes 06-12-2014 APPROVED 3/3/2015 MINUTES BOARD OF COMMISSIONERS BUDGET WORK SESSION June 12, 2014 7:00 p.m. The Orange County Board of Commissioners met for a Budget Work Session on June 12, 2014 at 7:OOpm at the Southern Human Services Center in Chapel Hill, N.0 COUNTY COMMISSIONERS PRESENT: Chair Jacobs and Commissioners Mark Dorosin, Alice M. Gordon, Earl McKee, Bernadette Pelissier, Renee Price and Penny Rich COUNTY COMMISSIONERS ABSENT: COUNTY ATTORNEYS PRESENT: COUNTY STAFF PRESENT: Interim County Manager Michael Talbert and Assistant County Managers Clarence Grier and Cheryl Young and Clerk to the Board Donna Baker (All other staff members will be identified appropriately below) NOTE: ALL DOCUMENTS REFERRED TO IN THESE MINUTES ARE IN THE PERMANENT AGENDA FILE IN THE CLERK'S OFFICE. Chair Jacobs called the meeting to order at 7:04. He noted the following items at the Commissioners' places: - White Sheet - Projected Available General Fund Unassigned Fund Balance - White Sheet -Adjustments to the Manager's Recommended FY 2014-15 Budget - Gold Sheet -Estimated General Fund Unassigned Fund Balance - Green Sheet -Orange County CIP Plan Summary Recommended (Revised for 6/12/14 Meeting) - Orange County CIP Year 1 Recommended Projects - Estimated Cost of Temporary Wage Increase to $12.76 - Lavender sheet—Additional Outside Agency Information 1. FY2014-19 Capital Investment Plan • Accept the Five Year Capital Investment Plan and Approve the Intent to Adopt Capital Funding for FY2014-15 Paul Laughton reviewed the information on the revised pages 6 and 7 of the CIP and the highlighted changes in yellow. He noted the addition of a $424,581 placeholder in years 6 through10 for the Efland Cheeks Community Center, as well as the corresponding revenue, debt service, and pay-as-you-go. Paul Laughton noted that the school's growth numbers have increased, and this document reflects the corresponding allocation percentages. He said the monetary value of this change is just over $15,000, with that amount being shifted from Chapel Hill Carrboro City Schools (CHCCS) to Orange County Schools. He said that pages 16-17 reflect the addition of the Efland Community Center and the revenue associated with that. Paul Laughton said the white page is an outline of year 1 projects and funding. He said lottery funds will be left as is, because these funds and article 46 will come back to the Board based on what is received during the year. 2. FY2014-15 Annual Operation Budget Decision Items • Mark Up/Mark Down Items for the County's Annual Operating Budget and Outside Agencies Clarence Grier reviewed the white sheet of adjustments to the manager's recommended FY 2014-15 budget. He noted revenue changes totaling an increase of$48,000, and expenditures totaling $122,263. He said this means the revised expenditure budget is $195,760,768. He said the Board has approximately $650,000, less the noted $170,000, to use in addressing any additional items that need to be added. Commissioner Price proposed adding an additional $2500 for Empowerment, which would give them the amount originally requested. This change was approved by the majority of the Board. Commissioner porosin asked about the funding for Ligo Dojo of Budo Karate. He understands that this organization operates in Orange County and Durham County, but he does not know enough about this operation, and he is hesitant to fund this at $2000. He knows that similar programs exist in Orange County. Commissioner Pelissier said this program is not just karate, but it also targets at-risk youth. She said there are full paying students in addition to the funded students. Commissioner porosin said his kids attend a similar class that also targets kids with hyperactivity or ADD. He is not sure that this is exclusive to this organization. Sharron Hinton said the Juvenile Crime Prevention Council (JCPC) has found no other similar program that has been as successful with at-risk youth. She said the program targets kids who are court involved. She said there are children identified by the Department of Social Services (DSS) who would be eligible for this program. Chair Jacobs said this is a non-profit, and it is serving the residents of Orange County. Commissioner porosin said his questions have been answered satisfactorily. Commissioner Rich asked if this is the first time this organization has asked for money. Sharron Hinton said this was the first time DSS has reviewed their application, but the program also receives JCPC funding from Durham County. Commissioner Price said it is good to know who is funding what programs. Clarence Grier said all outside agencies have to list all outside and internal funding, and this is included on the applications. He said this information can be summarized and provided in a table. Michael Talbert said the Board had asked for additional information about DSS and the living wage. He noted that this information is at the Commissioners' places. The Board had expressed their intent to approve the adjustments to the Manager's Recommended FY 2014-15. Brenda Bartholomew reviewed the handout regarding the cost of increases to temporary employee wages to comply with the living wage goals. She said 65 temporary employees would be given an increase to their wages, which would total approximately $50,286. She said there is approximately $10,000 already budgeted for the raising of the living wage, so this increase would be a $41,000 change to the budget as it is already prepared. Brenda Bartholomew said the back page is intended to show that there are Social Services programs that offer wages below $12.76, but there is a grant for these wages, so no changes can be discussed at this point. Commissioner Rich asked for an explanation of the salaries that cannot be changed. Brenda Bartholomew said these are the positions listed on the back side of the page, under the Workforce Investment Act or the Work First Program, under the DSS heading. Michael Talbert said, as part of the grant, if these employees are paid more than the specified amount it would affect some of their other benefits. Commissioner porosin asked if the positions listed on the back page were included as part of the budget proposal. Brenda Bartholomew said these were not included. Cheryl Young said the Department of Environment Agriculture, Parks and Recreation (DEAPR) employees were included in the budget, but not the Work First employees, due to the grant restrictions. Commissioner porosin asked about the Enterprise Fund employees. Cheryl Young said these were included in the budget. Commissioner porosin said it would be good to know how many of these 161 temp employees are full time or time limited. Cheryl Young said there are 4 temporary employees who work more than 30 hours per week, because these people are retirees and get benefits. She said there are a large number of seasonal employees with other jobs. Commissioner porosin said he would like to know how many hours these employees are working. He said there needs to be a longer discussion about appropriate compensation. Cheryl Young said a spreadsheet could be provided that lists the hours being worked for each position. Chair Jacobs said this discussion about temporary employees could be added to a fall work session. Cheryl Young said almost a hundred temporary employees are already making the required $12.76. Brenda Bartholomew said the total amount required to move everyone up to a wage of $12.76 per hour is $75,000, but $10,000 has already been budgeted, so the amount would be about $65,000. Clarence Grier said the actual amount for the general fund would be $62,650, and the remaining amount of$2,001.76 would go to the Enterprise Fund. Commissioner McKee asked if this is to be increased now or if it will be left for a decision next year. Commissioner porosin said he feels this should be increased now to $12.76 per hour. He said the broader conversation about temporary employees could be had later. Commissioner Gordon said she would like to get through the budget first before making a decision on this issue. She said people in the schools are losing their jobs, so she would like to see the bigger picture before deciding. Chair Jacobs suggested that this could be a decision item on June 17tn Commissioner Pelissier said she would like to decide tonight. Commissioner McKee agreed with Commissioner Pelissier. He feels this decision should be made tonight. Chair Jacobs agreed. Commissioner Gordon said she wanted to get through all of the steps of this budget first before making a decision. Chair Jacobs said the majority of the group agreed to this proposal for $65,000, and if Commissioner Gordon would like to revisit this at the end of the meeting, there could be another discussion. Nancy Coston gave an update on state cuts and the impacts to childcare and social services. She said it looks like the Senate and the House will change the income eligibility for childcare. She said it is likely that the County will be told to stop serving people with children over the age of 5 who are over 133 percent of poverty level. She said the County is currently serving about 125 kids over the age of 5 who fit in that category and would be cut from the state funding. She said funding for all of these children would total about $200,000 for part-time day care. She said that does not factor taking any more children into the program. Commissioner McKee asked if the County can re-structure their County programs to support these people. Nancy Coston said yes. She said the County can have their own local polices that are funded locally. Nancy Coston said a total of 850 children are being served now, and there are 85 on the waiting list Chair Jacobs said the original discussion was to allocate $170,000 of a possible $650,000. He suggested that the remainder be allocated to the social justice fund, or separation of what will be needed for childcare, with the remainder placed in the social justice fund. Nancy Coston said there is funding for child welfare to help make up for some of the cuts that the County experienced a couple of years ago. She said another approach would be to allow the flexibility for some of those funds to come back to childcare. Commissioner McKee said he would support putting the rest of the $650,000 into the social justice fund since there is no way to know what the County will face in this next year. Commissioner Pelissier asked Nancy Coston if there is any way to project how much of the child welfare funds could be transferred to child care. Nancy Coston said there is a formula used to fund this program, and she does not know this formula. She said it will be less than the childcare amount needed, and she guesses it will be around $100,000. She said this will not be known until the fall Commissioner Pelissier noted that Commissioner McKee's suggestion would add about $414, 587 into the social justice fund for DSS needs. Commissioner Pelissier said she was not sure she would want to allocate the whole amount. She feels that whatever dollar amount is allocated, the usage should be clarified. Chair Jacobs said the Board could pass something to authorize the DSS director to appropriate funds as needed over the summer to address childcare needs created by the state legislature. Commissioner porosin said he would be in favor of putting some of the money into DSS now. He suggested an amount of$100,000. Michael Talbert asked what would be needed to get through the summer. Nancy Coston said she is not sure what kids will come up in the summer, but the cost will be higher. She said it would be great to have the money, but the budget can be adjusted as things move along. She said she would guess that it would be no more than $40,000 in the summer. Commissioner Price asked about the effects of the possible state cuts on staffing. Nancy Coston said so far she has not seen this affect her staffing. Commissioner Price said she is willing to do whatever needs to be done for the children. Commissioner Rich said she likes the idea of keeping the bulk amount in the social justice fund and allowing Nancy Coston to appropriate what she needs up to a certain amount for the summertime. She asked how much money comes in through grants. Nancy Coston said the childcare program does not get very many donations. Chair Jacobs suggested putting the $414,000 into the social justice fund and allocating $64,000 to DSS on June 17th for the summer coverage. The Board expressed their agreement. Michael Talbert said the $64,000 will be included in the mark up, as part of the budget that will immediately go to social services. He suggested that Nancy Coston and other departments come back after the summer to give an update on the impacts of the state budget. Chair Jacobs asked if the Board can authorize the manager to approve allocations within his purview over this summer, after consultation with the chair/vice chair, to fund programs that may be cut by the state. Clarence Grier said there is still $350,000 that can be put into the social justice reserve for contingency items over the summer. Chair Jacobs said the Board agreed by consensus. Paul Laughton said there is already $100,000 in the social justice fund and this would bring it to $450,000. Decision Point 2 County Fee Schedule Decisions Clarence Grier said there are only two fees that will change: 1) $59 will be eliminated for rural recycling, as well as the $19 for multi-family service, and 2) there is a change in the estimated Mebane rates for the Efland Water Sewer System, as Mebane has decided not to increase rates. Commissioner Gordon said she would like to remind the Board that there was discussion about changing the solid waste convenience center (SWCC) fee. Chair Jacobs said he and Michael Talbert wrote to the towns and no response has been received so far. Commissioner Gordon said the question is whether to change the SWCC fee this year or wait until the advisory group meets. Chair Jacobs said there will be a discussion on property taxes in the next item, and this might have a bearing on whether to raise the fee. He said there is also a difference of opinion regarding whether fees are the way to pay this. He said the fees would be larger than the impact of the property tax, which would magnify the changes. He suggested waiting for feedback and discussion with the towns. Commissioner McKee said this is part of a larger discussion, and he would prefer to wait until the towns weigh in. Commissioner porosin said he is opposed to raising the fees; but he would support eliminating the fees and having the costs covered by the general fund. Commissioner Pelissier said the Board should not do anymore piece meal decision making, and she would defer making a decision about fees at this point. Commissioner Price said the inspection fees are going up 40 percent, and asked for an explanation of this. Craig Benedict said the fees are going up from $38 to $50, which is about 20 percent. He said there was discussion in 2006 about raising fees incrementally by about 10 percent each year. He said this was frozen in 2008, and a recent study showed the rate of$50 to be a reasonable rate. He said this increase is an effort to catch up. Commissioner Price said some of the fees are going up more than 20 percent. Craig Benedict said some of the higher rates are commercial rates, and these are not residential rates. Decision Point 3 Funding for Chapel Hill - Carrboro City Schools and Orange County Schools Clarence Grier referred to the gold sheet regarding unassigned fund balance. He said the expected total revenues at the end of the fiscal year are $192,957,950, and total expenditures are expected to be $187,318,733. He said this gives an expected increase in the general fund balance of$5,639,217. He said the projected excess general fund unassigned fund balance as of June 2014 totals $1,911,124, and the projected ending general fund unassigned fund balance as of June 30, 2014 totals $35,280,170, which equates to an increase of 18.83 percent. Michael Talbert went over the proposed usage of unassigned fund balance as outlined on the white hand out. He said the $1,911,124 in unassigned fund balance is over and above the 17 percent in the fund balance policy. He noted that the Board will see, at the meeting on June 17th, an agenda item that reflects a proposed refunding based on the County's new AAA rating, and this will save the County $837,808. He said this new rating will give the County much better borrowing rates. He said the 17 percent fund balance goal is a milestone that should be kept. Michael Talbert said the House is expected to vote on their budget on June 13th and then it will go to the conference committee. He said there will likely not be a decision prior to Orange County adopting their budget on Tuesday night. Michael Talbert outlined the following details of scenarios for a potential tax increase and the impact of this increase: Incre ase in Per Mgr Tax Pupil Per Total Rate Fund Enrollment Pupil Mgr Request Difference 1 cent increase Per Pupil ing Mgr Total 67,959,528 72,383,766 CHCCS 20,202.00 3,364 4,424,238.00 1,638,241 2.70 3,583.00 219 95.00 314.00 67,959,528 71,757,504 OCS 20,202.00 3,364 3,797,976.00 1,638,241 2.32 3,552.00 188 95.00 283.00 Tax CHCCS Fund Increase Balance 1.50 2,457,736.00 4,424,238.00 1,966,502.0 1,911,12 (55,378.00 0 4.00 ) Mgr 67,959,528 1.75 2,866,921.75 4,424,238.00 1,557,316.0 1,911,12 353,808 Rec. 0 4.00 65,079,252 2.00 3,276,482.00 4,424,238.00 1,147,756.0 1,911,12 763,368 Original 0 4.00 Increas 2,880,276 2.50 4,095,603.00 4,424,238.00 328,635.00 1,911,12 1,582,489 e 4.00 Mgr Rec. 3,364.00 Tax OCS Fund Original 3,269.00 Increase Balance Increas 95.00 1.50 2,457,736.00 3,797,976.00 1,340,240.0 1,911,12 570,884 e 0 4 1.75 2,866,921.75 3,797,976.00 931,054.00 1,911,12 980,070 4 2.00 3,276,482.00 3,797,976.00 521,494.00 1,911,12 1,389,630 4 2.50 4,095,603.00 3,797,976.00 (297,627.00 1,911,12 2,208,751 ) 4 3,276,482.00 911,124.00 Michael Talbert said if taxes were raised 1.5 cents, it would bring in $2,457,000, which would equate to an additional $121 per pupil. He said a full 2 cent tax increase would generate $3,276,483, which would add an additional $162 per pupil. Michael Talbert said if the County wants to fully fund schools, it would equate to a tax increase of 2.71 cents. He said the County could levy a tax and put the funds into a reserve account (similar to the social justice fund) until the legislative budget is adopted and then come back in September to allocate all or part of this to the schools. He said he would not recommend using the $1.9 million in unassigned fund balance, as this is a safety net for dealing with emergencies during the year without violating the 17 percent goal. Chair Jacobs said he wanted to clarify that this Board has not had a discussion on how to fund schools yet. Discussion ensued regarding clarification of the above spreadsheet. Commissioner Gordon suggested fully funding the original request from the schools, and then putting money aside in reserves to deal with the unknown. Commissioner porosin clarified that any funds generated by a tax increase would be split equitably between the two schools systems. Clarence Grier said at some point in time, the County will need to generate revenues to replace the general fund revenues that are used. He said $9.1 million is approximately 6.5 cents on the current tax rate, which would be hard to make up through under spending in future years. Clarence Grier responded to Commissioner porosin's concerns about equitable distribution of funds. He said whatever is done, all funds will be divided on an ADM basis between the Chapel Hill Carrboro City Schools (CHCCS) and Orange County Schools (OCS). Commissioner Gordon said that it is almost certain that the school districts are going to take a hit from the state budget, so even if the County "overfunds," it is almost certain the funds will be needed. Commissioner McKee suggested that the Board start with the $2.8 million recommended by the manager, proceed with a 1.5 cent tax increase, and take $1 million out of the fund balance. Commissioner Pelissier proposed a 2 cent tax increase, to be directly allocated, with additional money reserved from the fund balance to use as needed, based on what happens in the general assembly. Commissioner porosin proposed either a 2 cent tax increase, with $1.5 million being taken from the fund balance, or a 2.5 cent tax increase, with $1 million taken from the fund balance. Commissioner Gordon said she believes the County needs more revenue, and she would support a tax increase of at least 2 cents. She said the original requests of the school system should be fully funded. She would support a tax increase up to 2.5 cents. Commissioner Rich said she is not in favor of raising taxes more than 2 cents. She likes the combination of using some of the fund balance, but she is wary of using too much, as this money needs to be available for other emergencies. Chair Jacobs said he is comfortable with a 2 cent tax increase, and he would be comfortable taking as much as $1 million from the fund balance, but this can be discussed. Chair Jacobs and Clarence Grier discussed the financial responsibility that the County has shown in building up a substantial fund balance that has been used in lieu of a tax increase for several years now. Clarence Grier said a 2 cent tax increase, plus the manager's recommendation and $1 million from the fund balance should be enough to fully fund schools. Commissioner McKee asked what the $7.1 million in funding will equate to in per pupil funding increase. Michael Talbert said full funding would be $314 per pupil. Commissioner Gordon said she believes a 2 cent tax increase is needed. Clarence Grier clarified that a 2 cent tax increase, plus the manager's recommendation, and $1,148,000 would fully fund the higher request of$7.3 million, and the increase of$314 per pupil. Commissioner McKee said he has a problem with this, because this is above the amount that the CHCCS superintendent recommended to his board and what Orange County asked for. He said this sets a bad precedent. He said the total amount needs to be set for what is needed, and some money can be set aside. Discussion ensued regarding the amount of funding per pupil for the different proposed scenarios. A break was taken to calculate these numbers for further discussion. Michael Talbert said the $7.7 million requested by the CHCCS includes $2.2 million to help re-build their fund balance. Tom Forcella said, with the requested amount, CHCCS's fund balance would be at the minimum that it needs to be, but it would not be at $2.2 million over the minimum. He said the $2.2 million would be for positions that are being paid for in the current year, and there would not be additional money in the fund balance. Todd Lofriese said the estimated year end fund balance would be below the 5.5 percent target, which would equate to $3 million. Commissioner Gordon said CHCCS has a policy regarding this 5.5 percent, and there is no flexibility to go into this money. Chair Jacobs said the goal of these policies is for the school systems to be able to cover their bills, and any shortfall would be up to the County. Clarence Grier reviewed the above chart regarding the different scenarios for tax increases and funding. Commissioner McKee made a motion, seconded by Commissioner Price to go with a 1.75 cent tax increase; $1 million from fund balance, and $2.8 million from the manager's recommendation. Commissioner Gordon said additional revenue is needed for both school districts. She would argue for a 2 cent tax increase to generate more revenue. Commissioner McKee said a 2 cent tax increase is a psychological barrier for many people who live on modest incomes in Orange County. Commissioner Rich said the 1.75 cent or the 2 cent tax increase make the most sense. She leans toward the 2 cent increase since it seems the most prudent to avoid coming back to do this again next year. Commissioner porosin said he feels it would be best to do a 2 cent tax increase. He said a general property tax increase has not been done in several years, and this is where the weight of addressing the funding should be. He said it is important to note the extraordinary moment that the County is in, and he does not think that this sets a precedent. Commissioner Pelissier agreed with Commissioner porosin's comments. She said she agrees that there are lower income residents in the County, but there have been additions to the social safety net to address this. She noted that the state has also decreased the income tax, and there are gaps that need to be filled. Commissioner Price said she wanted to start lower and raise the tax incrementally if needed next year. She said there are already people leaving the County due to the expense of living here. Chair Jacobs said there is not a lot of difference in the 1.75 cent and 2 cent tax increase, but he does understand the psychological implications. He thinks the County has been very responsive to the economy and the residents on fixed incomes. He said he is still inclined to suggest a 2 cent increase on the property tax, and he would not utilize more than $955,000 of fund balance. VOTE: Ayes, 2 (Commissioner Price and Commissioner McKee); Nays 5 (Chair Jacobs, Commissioner porosin, Commissioner Gordon, Commissioner Pelissier, Commissioner Rich) Motion Fails. A motion was made by Commissioner Gordon, seconded by Commissioner Pelissier to raise the general property tax by 2 cents and take $955,000 from the fund balance to fund the schools. Commissioner Rich made a friendly amendment and suggested leaving $1 million in the fund balance and only taking out $911,124 from the fund balance. Commissioner Gordon accepted the friendly amendment, and Commissioner Pelissier seconded and thus amended her original motion to only use $911,124 for fund balance, along with 2 cent increase. Commissioner McKee said he would vote against the proposed 2 cent tax rate increase, as he feels this extra .25 cents will generate very little money, but it will cross a psychological barrier for many residents. Commissioner Price agreed with Commissioner McKee. VOTE: Ayes, 5 (Chair Jacobs, Commissioner porosin, Commissioner Gordon, Commissioner Pelissier, Commissioner Rich); Nays, 2 (Commissioner Price and Commissioner McKee) Decision Point 4 Tax Rate Decisions • Ad Valorem Tax Rate Clarence Grier said the new tax rate would increase to 87.8 cents per $100 of assessed valuation. • Chapel Hill Carrboro City Schools Special District Tax Rate Commissioner Pelissier and Commissioner McKee suggested leaving the district tax the same. Commissioner Rich would like to increase the rate. The majority of the Board agreed to leave this tax the same. • Fire District Tax Rates Clarence Grier said New Hope Fire District would like to go up from 9.45 cents to 9.95 cents, and White Cross would like to increase from 8.00 cents to 11 cents. He said all of the other districts would remain the same. Chair Jacobs said the Board needs to have a general discussion about the burden of these taxes on individual property owners. He said he is not completely comfortable going to 11 cents for White Cross, but he will go with the Board consensus. Commissioner McKee agreed with much of what Chair Jacobs said. He said he does feel that a discussion is needed. He said if it was not for the necessary renovations to the main station, and the addition of paid firemen, he would oppose the 11 cents. He said he will support this, but there needs to be a discussion this fall. Discussion ensued, and there was consensus that future discussion is needed to create parameters. Commissioner Price said she is in favor of giving these firefighters the resources they need. Commissioner McKee said this is a 4.2 cent increase for those residents in White Cross. He noted that some people in the area of the substation will be saving more than this on their insurance. Commissioner Pelissier said she is fine with doing the tax increase, but this is the second year of this, and it is harder to deal with them when they are back to back. The Board agreed by consensus to raise the fire district tax for White Cross and New Hope Fire Departments. Capital Request from Chapel Hill Carrboro School System (CHCCS) Michael Talbert said $750,000 has been requested by CHCCS for capital. He said Orange County Schools have not requested anything yet. He is not recommending this, as most of the fund balance has just been spent, and taxes have been raised. Commissioner Gordon said this was one of her top priorities, and she is in favor of keeping this on the table. She feels this will make it possible to add capacity. She said it seems the Board is not ready to do this. The Board agreed with this assessment. Clarence Grier said he would like to note that the County has surpassed the $200 million mark with this budget, which means that the budget has increased $13 million over last year's budget. 3. Break (to allow Finance and Administrative Services Director to formulate Draft Resolution of Intent to Adopt FY 2014-15 Budget) 4. Resolution of Intent to Adopt FY 2014-15 Annual Operating Budget • Approval of Resolution of Intent to Adopt FY 2014-15 Annual Operating Budget at the Board of County Commissioners Regular Meeting on June 17, 2014 Resolution of Intent to Adopt the 2014-15 Orange County Budget The items outlined below summarize decisions that the Board acted upon June 12, 2014 in approving the FY2014-15 Orange CountyAnnual Operating Budget. WHEREAS, the Orange County Board of Commissioners has considered the Orange County 2014-15 Manager's Recommended Budget; and WHEREAS, the Commissioners have agreed on certain modifications to the Manager's Recommended Budget as presented in the 2014-15 County Manager's Recommended Budget on May 20, 2014; NOW THEREFORE BE IT RESOLVED, that the Orange County Board of Commissioners expresses its intent to adopt the 2014-15 Orange County Budget Ordinance on Tuesday, June 17, 2014, based on the following stipulations: 1) Property Tax Rates a) The ad valorem property tax rate shall be set at 87.8 cents per $100 of assessed valuation. b) The Chapel Hill-Carrboro City Schools District Tax shall be set at 20.84 cents per $100 of assessed valuation. c) The Fire District and Fire Service District tax rates shall be set at the following rates (all rates are based on cents per $100 of assessed valuation): • Cedar Grove 7.36 • Greater Chapel Hill Fire Service District 15.00 • Damascus 8.80 • Efland 7.00 • Eno 7.99 • Little River 4.06 • New Hope 9.95 • Orange Grove 6.00 • Orange Rural 7.36 • South Orange Fire Service District 10.00 • Southern Triangle Fire Service District 8.80 • White Cross 11.00 2) County Employee Pay and Benefits Plan Provide a County employee pay and benefits plan that includes: a. Cost of Living Adjustment (COLA) of 1.5% for all permanent employees hired on or before June 30, 2014, effective July 1, 2014. b. Increase the salary range maximums by 1.5% to allow those employees at or exceeding the range to receive the 1.5% COLA. c. An Employee Performance Award in the amount of$500 (proficient performance) or $1,000 (exceptional performance), effective with WPPR review dates from July 1, 2014 to June 30, 2015. d. Continue the $27.50 per pay period County contribution to non-law enforcement employees' supplemental retirement accounts; increase the County match up to $1500 per year ($62.50 semi-monthly) based on employee contribution; continue the mandated Law Enforcement Officer contribution of 5.0% of salary; and increase the County's required contribution to the Local Governmental Employees' Retirement System (LGERS) for all law enforcement officers (LEOS). e. Funding to address an employee health insurance increase up to 14.35% over current premiums, effective January 1, 2015. f. Increase the living wage from $10.97 to $12.76 per hour. g. Extending the six-month hiring delay and the voluntary furlough program. h. Addressing increased costs for Retiree Health Benefits. 3) Modifications to County Manager's FY 2014-15 Recommended Annual Operating Budget The following modifications to the County Manager's Recommended Budget are made: Changes in Funding to Improve Service Delivery (Increase in FTE Approved) General Fund One-Time Offsetting DepUDivision Position Effective Date FTE Mnual Salary and Operating Start-Up Revenue or Net County Change Salary BenefRs Costs Costs Cost Savings Cost Total Animal Services-Animal Shelter Veterinary Health CareTechnician July 1,2014 1.0 $29,286 $42,289 $127 $0 $10,250 $32,166 Elections Assistant-Voter Board of Elections Outreach July 1,2014 1.0 $30,768 $43,994 $0 $0 $0 $43,994 DEAPR-Parks Parks Conservation Tech II November 1,2014 0.75 $17,842 $26,256 $1,425 $0 $797 $26,884 Economic Develo ment Business Retention S ecialist July 1,2014 1.0 $67,553 $86,283 $780 $0 $0 $87,063 Emergency Sennces- Administration EM Planner July 1,2014 1.0 $39,387 $53,914 $604 $4,116 $0 $58,634 Health-Dental Health Dental Offce Assistant July 1,2014 0.5 $13,939 $24,626 $0 $0 $0 $24,626 Health-Dental Health Dental Hygienist July 1,2014 0.2 $11,881 $12,240 $0 $0 $0 $12,240 Health-Health Promotion& Senior Public Health Educator- Education Poverty July 1,2014 1.0 $41,381 $56,209 $14,101 $570 $0 $70,880 Librar -Main CommunicationsS ecialist January 1,2015 1.0 $18,742 $25,861 $0 $1,775 $5,460 $22,176 Librar -Carrboro Librarian I July 1,2014 0.25 $11,200 $12,914 $0 $0 $0 $12,914 Planning-OPT OffceAssistantll July1,2014 1.0 $29,286 $42,288 $1,170 $3,633 $47,091 $0 Planning-OPT Public Transportation Driver July 1,2014 1.0 $29,286 $42,288 $1,220 $0 $43,508 $0 Sheriff Deputy Sheriff-Transport July 1,2014 2.0 $71,366 $101,682 $0 $0 $0 $101,682 Tax Administration- Off ce Assistant I I-extension of Collector/Revenue Tme-limited July 1,2014 1.0 $29,872 $42,962 $0 $0 $0 $42,962 TOTALS 12.7 $441,788 $613,806 $19,427 $10,094 ($107,106) $536,221 Grant Fund One-Time Offsetting DepUDivision Position Effective Date FTE Mnual Salary and Operating Start-Up Revenue or Net County Change Salary BenefRs Costs Costs Cost Savings Cost Total Senior Public Health Educator- Health-Triple P Initiative(30 fund) Program Coordinator July 1,2014 1.0 $41,381 $56,209 $0 $8,000 $64,209 $0 TOTALS 1.0 $41,381 $56,209 $0 $8,000 ($64,209) $0 Visitors Bureau Fund FTE Mnual Salary and Operating One-Time Offsetting Net Visitors DepUDivision Position Effective Date Change Salary BenefRs Costs Start-Up Revenue or Bureau Fund Costs Cost Savings Cost Total Economic Development-Visitors Bureau Sales Manager July 1,2014 1.0 $50,000 $66,129 $4,380 $1,827 $14,194 $58,142 TOTALS 1.0 $50,000 $66,129 $4,380 $1,827 ($14,194) $58,142 5) General Fund Appropriations for Local School Districts The following FY 2014-15 General Fund Appropriations for Chapel Hill Carrboro City Schools and Orange County Schools are approved: a) Current Expense appropriation for local school districts totals $72,147,134 and equates to a per pupil allocation of$3,571. 1) The Current Expense appropriation to the Chapel Hill Carrboro City Schools is $44,066,106. 2) The Current Expense appropriation to the Orange County Schools is $28,081,028. b) Recurring Capital appropriation for local school districts totals $3,000,000 1) The Recurring Capital appropriation to the Chapel Hill Carrboro City Schools totals $1,832,400. 2) The Recurring Capital appropriation to the Orange County Schools totals $1,167,600. c) Long Range (Pay-As-You-Go) Capital appropriation for local school districts totals $3,724,849. 1) The Long-Range (Pay-As-You-Go) Capital appropriation to the Chapel Hill Carrboro City Schools totals $2,275,138. 2) The Long-Range (Pay-As-You-Go) Capital appropriation to the Orange County Schools totals $1,449,711. d) School Related Debt Service for local school districts totals $16,608,984. e) Fair Funding appropriation for local school districts totals $988,000. This appropriation is to be split 50/50 between Chapel Hill Carrboro City Schools and Orange County Schools. f) Additional County funding for local school districts totals $1,253,804. (1) School Health Nurses —Total appropriation of$697,380 with $460,684 allocated for Chapel Hill Carrboro City Schools and $236,696 allocated for Orange County Schools. (2) School Resource Officers —Total appropriation of$556,424 allocated in the Sheriff's Department to provide School Resource Officers to Orange County Schools. 6) County Fee Schedule To adopt the County Fee Schedule to include changes included in the FY 2014-15 Manager's Recommended Annual Operating Budget. Clarence Grier read the resolution of intent to adopt FY 2014-15 Annual Operating Budget at the Board of County Commissioners Regular Meeting on June 17, 2014. Chair Jacobs suggested the addition of language specifying the funding allocation for the Exchange Club Child Abuse Prevention Center. Paul Laughton said the wording will be changed on page 3 to specify "fund balance appropriation", rather than "Board appropriation." A motion was made by Commissioner Gordon, seconded by Commissioner Rich to approve the Resolution of Intent to Adopt FY 2014-15 Annual Operating Budget at the Board of County Commissioners Regular Meeting on June 17, 2014. VOTE: UNANIMOUS A motion was made by Commissioner porosin, seconded by Commissioner Pelissier to adjourn at 10:40 p.m. VOTE: UNANIMOUS Barry Jacobs, Chair Donna Baker, Clerk to the Board