HomeMy WebLinkAboutMinutes 06-16-2016 1
APPROVED 9/6/2016
MINUTES
ORANGE COUNTY BOARD OF COMMISSIONERS
Budget Work Session
June 16, 2016
7:00 p.m.
The Orange County Board of Commissioners met in a budget work session on Thursday, June
16, 2016 at 7:00 p.m. at the Southern Human Services Center, in Chapel Hill, N.C.
COUNTY COMMISSIONERS PRESENT: Chair McKee and Commissioners Mia Burroughs,
Mark Dorosin, Barry Jacobs, Bernadette Pelissier, Renee Price and Penny Rich
COUNTY COMMISSIONERS ABSENT:
COUNTY ATTORNEYS PRESENT:
COUNTY STAFF PRESENT: County Manager Bonnie Hammersley, Deputy Manager Travis
Myren and Clerk to the Board Donna Baker (All other staff members will be identified
appropriately below)
Chair McKee called the meeting to order at 7:06 p.m.
1. Discussion of Appropriate Level of General Fund Reserves
BACKGROUND:
Orange County's current Fund Balance Policy states that, "The County will strive to maintain
an unassigned fund balance in the General Fund of 17 percent of budgeted general fund
operating expenditures each year. The amount of unassigned fund balance maintained during
each fiscal year should not fall below 8 percent of budgeted general fund operating
expenditures, as recommended by the North Carolina Local Government Commission."
Gary Donaldson, Chief Financial Officer, presented the following PowerPoint:
Appropriate Level of Unassigned Fund Balance
Presentation to Orange County Board of County Commissioners
Gary Donaldson, Chief Financial Officer
June 16, 2016
Best Practices for Unassigned General Fund Balance
➢ The Government Finance Officers Association (GFOA) of U.S. and Canada:
• Updated the Best Practice on unassigned general fund balances in 2009
• At a minimum an unassigned general fund balance of no less than 2 months of
regular general fund operating revenues or operating expenditures
• Equates to 16.7% of either general fund operating revenues or operating
expenditures
Appropriate Use of Unassigned General Fund Balance
➢ The essential uses of General Fund reserves:
• Mitigate risk attributed to revenue shortfalls or unanticipated non-recurring
expenditures
• Provide a financial bridge during recessions or weak economic conditions
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• Use for natural disasters and emergencies
• Cash Balance cushion
S&P Scorecard (graph)
Moody's Scorecard (graph)
The Ten `AAA' Rated Counties of North Carolina (graph)
General Obligation Bond Rating Scale (graph)
Audited Unassigned Fund Balance as a Percent of Expenditures—General Fund (graph)
Commissioner Dorosin asked if these numbers are considered by the rating agencies
when rating the County.
Gary Donaldson said yes.
Commissioner Dorosin asked if the rating agencies consider the County's policy or the
funds that the County actually has available, when conducting its review, and rating the
County.
Gary Donaldson said the agencies look at what is actually available; for example, if the
policy is 17%, but the County exceeds it and has 18.5%, then the rating agency would
consider the higher of the two numbers.
Commissioner Price asked if the rating is conducted at a particular time of year.
Gary Donaldson said the County is required to provide disclosures to the rating agency
at the end of the fiscal year. He said a full review is done when a county issues bonds.
Commissioner Jacobs asked if Gary Donaldson could identify the last time the County
did not have an overage in its fund balance.
Gary Donaldson said probably during the past recession. He resumed the
presentation:
Best Practice Unassigned Fund Balance
➢ In Summary
• GFOA Recommends Unassigned Fund Balance at 2 Months of Expenditures or
16.7%
• North Carolina AAA Rated County Peers Maintain at Least 2 Months; one
exception
• Strong Fund Balance provides Financial Bridge in Recession and Emergencies
General Fund Cash flow (chart)
Gary Donaldson said the low period for fund cash flow is usually during tax receipt
timeframes.
Commissioner Jacobs asked if there is a level of fluctuation in the fund balance that
would cause the rating agencies to take action.
Gary Donaldson said changes that are 2% or lower, and could be explained, would
likely not result in action being taken.
Commissioner Dorosin said Moody looks at a 5-year window.
Gary Donaldson said when considering the broader picture, the County is looking to
develop a 5-year plan, which the rating agencies favor.
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Commissioner Rich asked if the rating agencies prefer counties to have a fund balance
policy.
Gary Donaldson said yes because this is seen as a best practice of sustainable
management.
Commissioner Dorosin asked if there was a policy prior to 2011.
Paul Laughton, Financial and Administrative Services, said there was a 15% policy
prior to 2011, and the Finance Director at that time did some comparative analysis with other
counties and decided to raise the threshold to 17%.
2. Vehicle Replacement Schedule for FY 2016-17
Paul Laughton reviewed the following background:
BACKGROUND:
In FY 2012-13, the Commissioner Approved Budget established a second Internal Service
Fund, for County vehicle purchases. Internal Service Funds are an accounting device used to
accumulate and allocate costs internally among the functions of the County. Historically, the
County has used an internal service fund to account for one activity - its employee dental
insurance program. With the creation of this Vehicle Replacement Fund, vehicles purchased
occur through this fund instead of the departments' operating budgets. The change centralizes
vehicle purchases, which increases the effectiveness of vehicle performance and cost
monitoring.
The current internal services fund is still being subsidized by the general fund. In the spring
and summer of 2016, staff will be working with a recognized fleet services consulting firm to
fully optimize the internal services fund model for Orange County. This optimization will
influence recommendations for the internal services fund starting in FY 17-18.
Recommendations for vehicle replacements are based on vehicle age, mileage, maintenance
costs, fuel efficiency, and departmental mission need. The average age and accumulated
mileage of the recommended replacements are 12 years and 161,754 miles, respectively. The
vehicle replacement process is a dynamic process that unfolds over the course of a year.
During the replacement cycle vehicles originally listed for replacement may ultimately not be
selected for replacement as other fleet vehicles become a higher priority for replacement.
The FY2016-17 recommendation involves public safety vehicles only in anticipation of the
significant structural optimization expected within the Fleet Internal Services Fund to be
recommended for FY2017-18 and beyond.
Attachment 1 outlines the recommended vehicle requests for FY 2016-17. Pricing is based
upon the current state contract rates. If the Board of Commissioners approve of this
recommended list, the financing amount of$789,722 will be included in the FY 2016-17
Budget Ordinance to allow these vehicles to be ordered and placed into service in the early fall
of 2016.
Jeff Thompson, Asset Management Services, said the intention of the consultant study
is to have the internal service fund to be self-sustaining. He said the results of the study will
be presented to the Board of County Commissioners (BOCC) in the fall.
Commissioner Pelissier asked if there are any hybrid vehicles on the list.
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Jeff Thompson said there are no hybrid vehicles that can meet the needs of the
Sheriff's department but hybrids and electric vehicles are being used for administrative needs.
Chair McKee asked if there are a typical number of vehicle replacements for the
Sheriff's office.
Jeff Thompson said 15 vehicles were replaced last year and the same will be done
again this year.
Commissioner Rich asked if there is a vehicle life expectancy in the Sheriff's office.
Jeff Thompson said there is a target of five to seven years and 100,000 to 120,000
miles.
Bonnie Hammersley said she and the Sheriff looked at the amount of money available,
not the number of fleet cars, as the Sheriff may be able to get more vehicles for this amount of
money.
FY 2016-17 Recommended Item Description Cost
Vehicles Department
Animal Services (1) Ford F250 Truck 4x4, $ 45,648
includes aftermarket upfit costs
Replaces:
#668 - 2005 Chevrolet
Silverado 1500
Emergency Services (2) Dodge Durango SSV All $ 78,949
Wheel Drive, 4X4
Replaces:
#660 —2006 Ford Expedition
#661 —2006 Ford Expedition
(1) Ambulances — Supplied by Horton $235,000
Emergency Vehicles (Ambulance platform is
built on Ford F550 Cab and chassis with 4x4)
Replaces:
#714 - 2007 Ford F-450 Ambulance
Sheriff (15) Dodge Charger Police $430,125
Package Rear Wheel Drive
Replaces:
15 patrol vehicles to be
identified later
FY 2016-17 Recommended Total: $789,722
FY 2016-17 Source of Funds: Short-term ($789,722)
Installment Financing
Paul Laughton said this plan will be included in the budget ordinance on which the
BOCC will vote on June 21st.
Commissioner Dorosin referred to the comment at the bottom of the page, which noted
that this vehicle request does not reflect vehicle requests attached to new positions. He asked
if an anticipated number of new positions are known.
Paul Laughton said he knows of only one position, a Code Enforcement Officer in
Planning.
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3. Discussion of Budget Amendment List for FY2016-17 Operating Budget and
FY2016-21 Capital Investment Plan
Bonnie Hammersley reviewed the following items, located in a blue folder at the
Commissioners' places:
- Lilac: amendments that came in for additional revenue
- Blue: amendments that came in throughout the County, since the last work session. The
Manager was able to find funding to fund all of these sets of amendments, and thus do
not affect the proposed budget.
-Yellow: outside agency amendments
- Green: education budget amendments
- Salmon: Capital Investment Plan (CIP) amendments
- Pink: other funds budget amendment list
A motion was made by Commissioner Jacobs, seconded by Commissioner Dorosin to
fully fund outside agencies recommended for funding in part 1 — (previously funded agencies)
with the exception of CIS; if the requested increase is greater than a 50% increase then they
will receive 50% increase; (included funds for Food Council - $16,030) and eliminated funds
for Housing for New Hope (-$22,500); that they increase funding for the schools by $1.7 million
(utilize the available fund balance in excess of the 17% fund policy) with $1 million to come for
the plus $700,000 of the $900,000 dollars was above the fund balance (line 1 - $800,000 and
line 3- $1 million).
Amended to $1.8 million - use $800,000 plus $1 million the staff identified from the impact
fees.
Commissioner Burroughs said this motion is a step in the right direction and the school
districts asked for over $8 million combined. She said the Manager recommended $2.6 million
and this motion still leaves the schools short by about $3.6 million. She said this means that
Chapel Hill-Carrboro City Schools (CHCCS) teachers will get their raises, since the School
Board has already approved the raises. She said if CHCCS comes up short it will have to cut
positions. She said the Orange County Schools (OCS) have not locked in raises and this
amount that is short of the request, would have gone to teacher raises, and OCS will probably
have to cut positions. She said teachers matter.
Chair McKee said as of now it does leave the BOCC $3.6 million short for the schools
but the discussion has just begun and there may be options as the process continues tonight.
Commissioner Dorosin said he does not think anyone here sees the schools as a
bloated bureaucracy. He said he has been talking a lot about changing the County fund
balance policy, and he thinks the 17% is too conservative. He suggested taking $1 million out
of the fund balance without changing the fund policy at this time and putting it towards schools
as well. He said to put the fund balance policy discussion on the fall agenda as early as
possible. He proposed this as a friendly amendment.
Commissioner Jacobs said to put a motion on the June 21st agenda to make sure this
fund balance policy comes back for discussion in the fall.
Chair McKee asked if Commissioner Jacobs is asking the motion amendment maker to
drop the policy portion of the amendment, with the understanding it will come back on June
21st.
Commissioner Jacobs said yes.
Commissioner Dorosin said that would be acceptable.
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Commissioner Jacobs said the fund balance policy change in 2011 was part of a
strategy to shrink the government. He said this was an internal game played by staff with the
Board. He said he is very conservative about spending money but he says there is merit to the
point that the BOCC is meant to be doing something with the money contributed by the public's
taxes, etc. He said it is good to review the policy especially with what the legislature is doing.
Commissioner Jacobs said the Board is now talking about $2.8 million to the schools,
which will be the second highest per pupil amount in that last 30 years. He said it is wrong to
say that Orange County does not support schools. He said all involved need to do a better job
of communicating without animosity, and that the BOCC does value education and wants the
best for the schools and the students. He said he gladly accepts Commissioner Dorosin's
friendly amendment.
Chair McKee clarified the amendments made to the motion, noting that $1 million will
come from impact fees; $1 million from the fund balance reserve, and $800,000 from the
excess above the 17% fund balance reserve, which leaves about $200,000 for other projects.
Commissioner Rich said she did not support this action last year because there had not
been the level of discussions that has occurred over this past year. She said she feels the
Board is heading in the right direction. She said it is important to have a fund balance policy
and to allow the public to weigh in on it. She said she will vote this year to use funds from the
fund balance, knowing that the BOCC will have a full policy discussion in the fall.
Commissioner Pelissier said she would have rather voted on these items individually
and she is not sure if she wants to take $1 million out of the fund balance. She said she would
like the conversation to explore other options.
Commissioner Pelissier said the General Assembly wants to cut taxes as well as
services which sends the message that taxes are bad. She said if the BOCC continues to not
raise taxes, it is promoting the same message. She said this will starve services at the County
level.
Commissioner Pelissier said the Board has only raised the ad valorem tax once in the
last seven years. She said people are not struggling because taxes are too high but rather
due to lack of livable wages. She said school staffs are the ones that recognize the services
children need and teachers must be supported. She said schools offer so much more than
just education. She said only half of what is being proposed is for teacher salary supplements,
and she wanted to talk about increasing the property tax.
Commissioner Burroughs apologized for her rhetoric and said the Board of County
Commissioners has supported the schools over the years.
Commissioner Burroughs said she will make a motion to increase property taxes, in
order to raise another $1 million.
Commissioner Price said she is supportive of Commissioner Dorosin's motion and she
sees no problem taking funds from the fund balance. She said she does object to raising
taxes at this point. She said the residents are getting tax increases in other ways, and that is
why she is opposed to increasing the taxes. She said the revaluation is also coming in 2017.
Commissioner Dorosin referred to the suggestion of changing the fund balance policy,
and said if the money is in the "pot" at the start of the budget process, it is a more transparent
process. He said he wanted to change the policy to make this process fair and accessible.
Commissioner Dorosin referred to Commissioner Pelissier's comments about starving
the government, and said he does not agree. He said the taxes in Orange County are high.
He said putting funds in a savings account and then raising taxes is bad budgeting.
Commissioner Pelissier said she did not say that the BOCC is starving the government
now, but the County is shifting that way with the processes being implemented now.
Commissioner Jacobs said taxes were raised the first 10 years he was on the Board to
support the schools, then stopped at the recession. He said the Board has been responsive to
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changing circumstances. He said with the effects of the revaluation next year, a new fund
balance policy, and the proposed bond, it is more than likely the Board will raise taxes soon.
He said he feels comfortable doing what is proposed and then working this next year, including
the schools, to come up with a 5-year comprehensive management plan.
Commissioner Burroughs said she supports Commissioner Jacobs' and Commissioner
Dorosin's motions. She said the County is doing a great deal of good and necessary things,
which she supports. She said if the Board is really concerned about raising taxes this year
because of possibly raising taxes in the future, then discussions need to occur about
addressing expenditures in the out years.
Commissioner Rich followed up on Commissioner Price's comments and said even
though there has been no county tax increase, there has been a tax increase. She said the
General Assembly has put taxes on many things, yet salaries are not going up. She said the
Board should look at where fees are going up and inform the public.
Chair McKee said he does not agree with changing the 17% threshold on the fund
balance policy, but as the County is sitting at an almost 18% fund balance, and projections
show an increase in taxes, etc., he is comfortable with the proposed motion on the table.
Chair McKee said he agreed with Commissioner Price and Commissioner Rich about
taxes. He said the impact of the recycling fee exceeds the tax bill of some residents. He said
a tax increase, at this point, may adversely affect the bond proceedings.
Chair McKee said he is glad to hear the need for discussion with the schools for long-
term plans. He said every year there is an "ask" from the schools and an expectation that the
Board of County Commissioners will approve it. He said he has never seen a revised request
from either school system and he said there needs to be more discussion and less "asking".
VOTE: AMENDED
UNANIMOUS
ADM funding to increase to $270.5 (271) = $5.4 million, $3,863 per pupil.
A motion was made by Commissioner Burroughs, seconded by Commissioner Pelissier
to increase tax revenue to bring another $1 million, that will bring gap from the ask to $106
million short.
Paul Laughton said a 0.6% increase would equal $1,006,415 million.
Chair McKee said would it be better to wait to see if the need exists after further
discussions. He asked Commissioner Burroughs to postpone.
Commissioner Burroughs agreed.
VOTE: DEFERRED UNTIL LATER IN MEETING
A motion was made by Commissioner Burroughs, seconded by Commissioner Jacobs
to approve the turquoise hand out: Operating Budget Amendment List recommended by the
Manager.
Bonnie Hammersley said the outside agency Housing for New Hope rescinded its
request for funding. She said the amendment intends to use the funding towards the new
SOAR position.
VOTE: UNANIMOUS
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Bonnie Hammersley said at the last work session, the Food Council was inadvertently
left out of the Manager's recommended budget. She said the Food Council did a presentation
to the Board at the April 5, 2016 work session and did go through the outside agency process.
Bonnie Hammersley said Chair McKee asked for an increase for the Meals on Wheels,
as this agency expects a 4,000-meal increase.
Yellow sheet: OUTSIDE AGENCIES
Commissioner Dorosin said he suggested a proposal to broadly fund these agencies,
and clarified what he is proposing. He said the Board recognizes the work that these non-
profit agencies do in the community, and the Board discussed last year about raising the
amount of funding for outside agencies. He said the difference between the agencies
requests and the Manager's recommended budgets for those agencies is about $108,000, less
$22,000 for Housing for New Hope. He suggested as a show of a united front, that the Board
allocates the full amount to all of the agencies, for which the Manager recommended funding.
Commissioner Rich asked if the $16,000 for the Food Council is in a particular pot at
this point.
Bonnie Hammersley said it is included as part of Commissioner Dorosin's proposal.
Paul Laughton said the difference is $94,953 of what was requested for those that
received funding in 2015-2016. He said if the $22,000 for Housing for New Hope is removed,
and the $16,030 for the Food Council added back in, the total is $88,483.
Commissioner Dorosin said this would fully fund all agencies in line item number 1, all
of which were Manager recommended for some funding.
Commissioner Rich said some of these would be really big jumps in funding and asked
if the Board is willing to go that far
Commissioner Dorosin said yes, since this is an extraordinary time for these non-profits
with the legislature. He said he is not recommending a policy change with the outside
agencies.
Commissioner Burroughs said she liked this proposal and suggested bringing back this
discussion of increasing the amount of funding for outside agencies. She said these are the
people she works with, and though she understands Commissioner Dorosin's rationale, she
would prefer just funding the Manager's recommendations as of now. She said the
applications were reviewed and funding decisions were made for a reason, and with careful
thought.
Commissioner Price echoed Commissioner Rich's point that fully funding some of these
agencies would require a large jump from the Manager's recommended amount. She also
echoed Commissioner Burroughs' point of respecting the decision making process thus far.
Commissioner Jacobs said he is sympathetic to Commissioner Dorosin's proposal, but
the Board should agree not to raise any recommended funded agency more than 50% of its
request. He said that may make other Board members more comfortable and also honor the
process and the staff's work.
Commissioner Dorosin said that may be the way to proceed. He said the primary
reason these agencies do not get full funding is because there is a limited pot of funding.
He said if there is not support for his proposal, then he would defer to Commissioner Jacobs'
proposal.
Commissioner Pelissier appreciated Commissioner Dorosin's sentiment behind his
proposal, but the other major thing to her is that departments submitted requests, as well as
agencies and schools, and the staff and Commissioners must prioritize. She does not like
supporting a blanket proposal and preferred going through each one.
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Commissioner Dorosin said that is inconsistent. He said if the point is to respect the
process, he can accept that; and if the point is that Commissioners want to pick numbers
based on their own knowledge or preference, he can respect that. He said all these agencies
have been recommended for funding, which means they have shown a level of merit. He said
he feels the primary reason agencies may not have been funded is a lack of money, and he
believes there is enough money.
Commissioner Pelissier said she does not think this is the reviewer's perspective, but
rather the reviewer considers the agency, its work and purpose, and an appropriate amount to
fund.
Commissioner Burroughs said she liked Commissioner Jacobs' compromise.
Commissioner Burroughs said as Communities in Schools (CIS) is dissolving, she has
withdrawn her amendments, and instead proposes giving the funds to CHCCS instead.
Commissioner Jacobs said if policies are being considered, then perhaps there should
be a target for funding for outside agencies.
Commissioner Jacobs said the Board is going to fund one department's one position,
but many departments' requests did not get funding. He proposed seeing all the departments'
requests for positions and others items.
Bonnie Hammersley said there is a list of requests that were not recommended for
funding, on page 40 of the budget book. She said 24 positions were requested, and only 7
were funded.
Commissioner Jacobs suggested viewing and discussing these requests in future
budget discussions.
Commissioner Price said she liked Commissioner Jacobs' compromise for outside
agency funding.
Commissioner Price asked Commissioner Dorosin if he does not want to fund agencies
included in section 2.
Commissioner Dorosin said he would suggest discussing these individually as a Board
at this meeting. He said the whole budget is around $200 million, and the Board is talking
about an $80,000 portion.
Commissioner Rich said to take CIS out of the motion.
A motion was made by Commissioner Dorosin, seconded by Commissioner Jacobs, to
fully fund all agencies recommended for funding in section 1 (page 410), with the exception of
CIS, unless fully funding the agencies would increase the proposed amount more than 50%, in
which case they would receive the 50% increase.
VOTE: Ayes, 6; Nays, 1 (Commissioner Pelissier)
A motion was made by Commissioner Burroughs, seconded by Commissioner Jacobs
to add $114,000, from former CIS funds, to the schools' funding, to be divided by ADM.
Commissioner Rich asked if these funds will recur every year in the general school
funding.
Bonnie Hammersley said it will go into the base operating funding per school, allowing
the funds to be recaptured and distributed evenly.
Paul Laughton said, by ADM, CHCCS would receive $68,503 and OCS would receive
$45,497.
VOTE: UNANIMOUS
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A motion was made by Commissioner Jacobs, seconded by Commissioner Rich to re-
capture the notion of funding outside agencies, and to add this to a work session in the fall for
further discussion.
VOTE: UNANIMOUS
Commissioner Dorosin proposed a break in order to tally funds used thus far and
determine remaining funds.
Meeting resumed at 9:29 p.m.
Paul Laughton said there is $147,338 remaining to be allocated.
Chair McKee said another white sheet was just put at the Commissioners' places,
which is four items that were inadvertently left out of blue folder for discussion tonight.
Commissioner Dorosin asked if changes in the outside agencies could be reviewed.
Paul Laughton said the total amount was $52,662, which included the Food Council.
Bonnie Hammersley said all changes would be updated and brought to the June 21st
meeting.
Commissioner Dorosin asked if the total added to the Manager recommended
$1,115,441 is $52,662.
Paul Laughton said yes, and $147,000 remains from $200,000 to be allocated this
evening.
Chair McKee said the Board still needs to consider the four items on the white page just
received and the items on the second portion of page 410.
Bonnie Hammersley referred to the Piedmont Food and Agricultural Processing Center
(PFAPC) amendment, and said that is a County Manager amendment, and the $17,000 is
already considered. She said the remaining three items on the white sheet are to be
considered.
Paul Laughton said the total of those three items is $68,891.
Chair McKee referred to the Compton Pond amendment ($1,800), and said he and
Commissioner Price met with residents from that area. He said staff was asked to talk with the
State to evaluate the pond and treat the whole pond, since it feeds into Lake Orange, which is
being treated. He said staff spoke with the State, and there are some contingency funds, but
the treatment would use that entire contingency, so he proposed the $1,800 amendment to
fund this treatment.
Commissioner Rich said she is comfortable with all three proposed items, and asked if
the remaining balance could be given, if these three items were to be funded.
Paul Laughton said $78,447 would remain.
A motion was made by Commissioner Rich, seconded by Commissioner Burroughs to
approve items on white sheet (Operating Budget Amendments), and use the remaining funds
for the discussion on section 2 of the outside agencies.
Commissioner Dorosin asked if there could be discussion about the proposed
additional deputy recommended by Chair McKee.
Chair McKee explained that several years ago the Board addressed Emergency
Services needs through a task force, but did not include any public safety staffing issues. He
said he felt one additional deputy in the Sheriff's department would provide additional
coverage in the rural areas.
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Commissioner Jacobs referred to the Compton Pond and the hydrilla problem, and said
he hoped that staff would recommend the least harmful chemicals, as was done with the Eno
River years ago.
David Stancil, Department of Environment, Agriculture, Parks and Recreation Director,
said his understanding is that the same sort of treatment that was used in the Eno River will be
used again, and it may be even safer at this point, but he would double check.
VOTE: UNANIMOUS (on all three items on white sheet)
Discussion of Outside Agencies — Page 410 in budget book
The Board reviewed each of the following items, finalizing numbers:
Outside Agency Funding
Behavioral Insights, Inc. $4,000
Boys and Girls Club of NC $5,000
Child Care Services Assoc. -0- (duplication of DSS services)
Hillsborough Arts Council $7,500
Mental Health of America $5,000
Orange County Living Wage $16,750
WCOM $1,000
Rebuilding Together the Triangle $10,000
TABLE $5,000
Triangle Bikeworks $1,000
Volunteers for Youth $7,500
Youth Community Project $4,750
Commissioner Jacobs asked the Department of Social Services (DSS) to look at all of
these groups that serve children, to determine if there are duplicative services.
Paul Laughton said taking the above numbers into account, the remaining funds total
$46,697.
A motion was made by Commissioner Burroughs, seconded by Commissioner Rich to
fund, as listed, all of the agencies on page 410, except the Orange County Living Wage and
the Hillsborough Arts Council.
VOTE: UNANIMOUS
Hillsborough Arts Council
A motion was made by Commissioner Price, seconded by Chair McKee to fund the
Hillsborough Arts Council at $7,500.
VOTE: Ayes, 3 (Chair McKee, Commissioner Burroughs, Commissioner Price); Nayes, 4
(Commissioner Dorosin, Commissioner Rich, Commissioner Jacobs, Commissioner Pelissier)
Motion Fails
A motion was made by Commissioner Jacobs, seconded by Commissioner Dorosin to
fund the Hillsborough Arts Council for $5,000.
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Commissioner Price asked if there is a reason this agency is seen differently than the
other outside agencies.
Commissioner Dorosin said the agencies earlier in the evening were all recommended
for funding, and the Arts Council was not.
Commissioner Price said the other agencies on the list were given at least 50% of their
request.
Commissioner Dorosin said he believes this agency will receive money from the Town
of Hillsborough.
Commissioner Price said most agencies receive funding from various sources.
VOTE: Ayes, 6; Nays, 1 (Commissioner Price)
Orange County Living Wage
Commissioner Price asked if she could hear more about this organization and why it
should be fully funded.
Travis Myren said this organization certifies private and public sector employers, who
are paying the living wage. He said it is a voluntary certification program. He said the County
is providing this agency with a vendor list to review which vendors are certified.
Commissioner Rich said this agency is doing the work that the County might be doing
and is doing it at a much lower rate than if it were done in house.
Commissioner Pelissier said the Manager's recommendations reflected the Board's
stated priorities. She said a discussion should be added to a work session regarding the
conditions under which the Board will almost fully fund a non-profit.
Commissioner Dorosin said policy discussion and guidelines are important, but there
also needs to be flexibility to fund new agencies that are in line with the Board's values.
Commissioner Jacobs said these comments could be equally applied to the
Hillsborough Arts Council, and, as such, he would like to reconsider his motion for the funding
to the Hillsborough Arts Council.
A motion was made by Commissioner Jacobs, seconded by Commissioner Price to
fund the Hillsborough Arts Council at $7,500.
VOTE: Ayes, 5 (Chair McKee, Commissioner Dorosin, Commissioner Rich, Commissioner
Burroughs, Commissioner Jacobs); Nayes, 2 (Commissioner Rich and Commissioner Pelissier)
MOTION PASSES
A motion was made by Commissioner Rich, seconded by Commissioner Burroughs to
fund the Orange County Living Wage at $16,750.
VOTE: UNANIMOUS
Paul Laughton said this now leaves $41,697.
A motion was made by Commissioner Burroughs, seconded by Commissioner Pelissier
to increase taxes by 0.6 percent ($1,006,415) for the schools.
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VOTE: Ayes, 2 (Commissioner Burroughs and Commissioner Pelissier); Nays, 5 (Chair
McKee, Commissioner Jacobs, Commissioner Dorosin, Commissioner Price, Commissioner
Pelissier)
MOTION FAILS
• Operating Budget Amendment List and Decision Items for the County's FY2016-17
Annual Operating Budget
• Capital Investment Plan Budget Amendment List and Decision Items for FY2016-17
CIP Funding
A motion was made by Commissioner Burroughs to delay Blackwood Farms Park by
one year (page 23 in CIP).
MOTION FAILED for lack of a second
Commissioner Dorosin referred to the salmon sheet and said there is a net reduction in
the CIP by approximately $4.5 million. He said due to this reduction, he is not in favor of
delaying Blackwood Farms Park. He said if the land has been purchased, it is imperative that
the public be able to access it.
Commissioner Jacobs asked if Chair McKee could consult with John Roberts to find out
why the County's public properties are not accessible to the public.
David Stancil said staff is working on this.
• Other Funds Budget Amendment List and Decision Items for Other Funds FY2016-17
Budget
4. Accept the FY2016-21 Capital Investment Plan and Approve the Intent to Adopt
Capital Funding for FY2016-17
A motion was made by Commissioner Jacobs, seconded by Commissioner Rich to
approve the FY2016-21 Capital Investment Plan and Approve the Intent to Adopt Capital
Funding for FY2016-17.
VOTE: UNANIMOUS
5. FY2016-17 Annual Operating Budget Decision Items
• Approve the Amendments for the County's Annual Operating Budget
A motion was made by Commissioner Pelissier, seconded by Commissioner Rich to
approve the amendments for the County's Annual Operating Budget (pink sheet).
VOTE: UNANIMOUS
A motion was made by Commissioner Burroughs, seconded by Commissioner Jacobs
to approve the Manager's Recommendation for Long range and Recurring Capital for the local
school districts totaling $3 million.
VOTE: UNANIMOUS
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• Funding for Chapel Hill-Carrboro City Schools and Orange County Schools
Already voted on
• Tax Rate Decisions
i. Ad Valorem Tax- shall remain at 87.8 cents per $100.00 of assessed
valuation.
Already voted on.
ii. Chapel Hill Carrboro City Schools Special District Tax - shall remain at the
current rate of 20.84 cents per $100 of assessed valuation
A motion was made by Commissioner Burroughs, seconded by Commissioner Pelissier
to maintain the CHCCS Special District Tax rate of 20.84 cents per $100 of assessed
valuation.
VOTE: UNANIMOUS
iii. Fire District Tax Rates
A motion was made by Commissioner Price, seconded by Commissioner Rich to
approve the increases in the fire district tax rates for New Hope Fire District (10.45 cents) and
Orange Grove Fire District (7.0 cents).
VOTE: UNANIMOUS
• County Fee Schedule-
A motion was made by Commissioner Burroughs, seconded by Commissioner Price to
approve the County Fee Schedule to include changes in the FY 2016-17 Manager's
Recommended Annual Operating Budget.
VOTE: UNANIMOUS
6. Break (to allow Finance and Administrative Services to formulate Draft Resolution
of Intent to Adopt FY2016-17 Budget)
Meeting resumed at 11:24 p.m.
7. Resolution of Intent to Adopt FY2016-17 Annual Operating Budget
Approval of Resolution of Intent to Adopt FY2016-17 Annual Operating Budget at
the Board of County Commissioners' Regular Meeting on June 21, 2016
Paul Laughton said staff had drafted the Resolution of Intent to Adopt the 2016-17
Orange County Budget and he reviewed the highlights.
Resolution of Intent to Adopt the 2016-17
Orange County Budget
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The items outlined below summarize decisions that the Board acted upon June 16, 2016 in
approving the FY2016-17 Orange County Annual Operating Budget.
WHEREAS, the Orange County Board of Commissioners has considered the Orange County
FY2016-17 Manager's Recommended Budget; and
WHEREAS, the Commissioners have agreed on certain modifications to the Manager's
Recommended Budget as presented in the FY2016-17 County Manager's Recommended
Budget on May 5, 2016;
NOW THEREFORE BE IT RESOLVED, that the Orange County Board of Commissioners
expresses its intent to adopt the FY2016-17 Orange County Budget Ordinance on Tuesday,
June 21, 2016, 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 10.30
• Efland 7.00
• Eno 7.99
• Little River 4.06
• New Hope 10.45
• Orange Grove 7.00
• Orange Rural 8.36
• South Orange Fire Service District 10.00
• Southern Triangle Fire Service District 10.30
• White Cross 11.00
2) County Employee Pay and Benefits Plan
Provide a County employee pay and benefits plan that includes:
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a. A total wage increase of 3.0% for all permanent employees hired on or before June 30,
2016, with 2% effective July 1, 2016, and an additional 1% effective January 1, 2017.
b. No In-Range adjustments for FY 2016-17.
c. Meritorious Service Awards — recommends three levels as one-time performance
bonuses, effective with employee Work Planning and Performance Review (WPPR)
dates from July 1, 2016 to June 30, 2017:
o $500 — proficient performance
o $750 — superior performance
o $1,000 — exceptional performance
d. Compression Reduction Program — a total of $500,000 for salary compression
adjustments to affected employees, effective July 1, 2016.
e. A Living Wage increase from $12.76/hour to $13.15/hour.
f. Continue the $27.50 per pay period County contribution to non-law enforcement
employees' supplemental retirement accounts and the County matching employees'
contributions up to $63.00 semi-monthly (for a maximum annual County contribution of
$1,512) for all general (non-sworn law enforcement officer) employees, and continue
the mandated Law Enforcement Officer contribution of 5.0% of salary; and continue the
County's required contribution to the Local Governmental Employees' Retirement
System (LGERS) for all permanent employees.
g. Continue funding the Traditional and High Deductible Health Plans for employees and
pre-65 retirees with no changes to employee premiums for FY2016-17.
h. Continue funding the Dental Program for employees and pre-65 retirees with no
changes to employee premiums for FY2016-17.
i. Continue the voluntary furlough program.
3) Modifications to County Manager's FY2016-17 Recommended Annual Operating
Budget
The following modifications to the County Manager's Recommended Budget are made:
Adjustments to the Manager's Recommended FY2016-17 Budget
On June 16, 2016, the Board of County Commissioners approved the following changes to the Manager's
Recommended annual operating budget for the 2016-17 fiscal year. The information below summarizes
changes made by the Board.
Revenues Increase Decrease
Manager's Recommended Revenue Budget $212,786,496
Appropriate additional Fund Balance in excess of the 17% 979,856
Financial Policy for Education and Outside Agencies
Additional revenue for the administration of City of Mebane tax 5,000
bills on the Orange County properties
Replace tax supported debt service for school expansion projects 1,000,000
with available ongoing impact fee revenue.
Create revenue line in County Manager office for cost-sharing of $30,000
studies.
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Appropriate additional General Fund fund balance to be used for $1,000,000
Education
Total Revenue Changes $3,014,856 $0
Revised Revenue Budget 215,801,352
Expenditures Increase Decrease
Manager's Recommended Expenditure Budget $212,786,496
Provide funds for the My Brother's Keeper (MBK) initiative as a 4,000
line item in the Human Rights appropriation
Provide funds for an additional Sheriff Deputy 1.0 FTE 63,091
Funds to hire a consultant to assist with the commercial appraisal 20,000
services
Create a SOAR case worker position to streamline the SSI/SSDI 20,000
application process for people who are homeless.
Provide funds to replace loss of State funds for the current 20,500
Community Response program position for a six (6) month period
to allow time to investigate other funding sources
Create a 1.0 FTE Outreach Librarian with grant fund from Orange 10,000
County Partnership for Young children
The start date for the Website & Publication Coordinator will be ($13,961)
effective October 1, 2016.
Remove funding for Communities in Schools for CHCCS as the (78,800)
organization is in the process of dissolving
Remove Outside Agency funding for OCS After School Program (35,200)
Provide funds for Triangle Bikeworks Spoke'n Revolutions project 1,000
Provide funds for Rebuilding Together of the Triangle 5,000
Provide funds for Hillsborough Arts Council 7,500
Provide funds for TABLE for emergency food aid for children in 5,000
Chapel Hill and Carrboro
Provide funds for the Youth Community Project to provide service 4,750
to youth in Orange County.
Provide funds to the Boys and Girls Club of Eastern Piedmont to 5,000
serve youth in Orange County.
Provide funds for Mental Health America of the Triangle 5,000
Provide funds for Public Gallery of Carrboro (WCOM-LP Radio) 1,000
Provide funds for Volunteers for Youth 2,500
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Provide funds to treat approximately a two acre area in the upper 1,800
half of Compton's Pond, with two or possibly three herbicide
treatments.
Additional funding for Education 2,800,014
Additional funding for Education, transfer of funds from 114,000
Communities in Schools for CHCCS and the Non-Departmental
allocation to OCS
Fully fund all outside agencies recommended for funding in part 1 52,662
(previously funded agencies) with the exception of Communities
in Schools. If their requested increase is greater than a 50%
increase then they will receive a 50% increase. Includes addition
of funds for Food Council ($16,030) and eliminates funds for
Housing for New Hope (-$22,500)
Total Expenditure Changes $3,142,817 ($127,961)
Revised Expenditure Budget $215,801,352
4) Changes in Funding to Improve Service Delivery (Increase in FTE Approved)
Department Position FTE
Health Public Health Educator 1.000
Planning Code Compliance Officer III 1.000
Transit Director - effective January
OPT 1, 2017 1.000
Office Assistant II - converting Time-
Tax Limited to Permanent 0.000
Aging Office Assistant II 0.750
Sheriff Deputy Sheriff I 1.000
Sheriff Deputy Sheriff I 1.000
Sheriff Deputy Sheriff I 1.000
Sheriff Investigator 1.000
Management Analyst (Child
Welfare) - converting Time-Limited
Social Services to Permanent 0.000
Human Services Specialist -
converting Time-Limited to
Social Services Permanent 0.000
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Human Services Specialist -
converting Time-Limited to
Social Services Permanent 0.000
Management Analyst - converting
Social Services Time-Limited to Permanent 0.000
Social Services SOAR Caseworker 1.000
Outreach Librarian (Grant Project
Library Fund) 1.000
Community Website & Publications Coordinator
Relations (effective October 1, 2016) 1.000
10.75
Totals 0
5) General Fund Appropriations for Local School Districts
The following FY 2016-17 General Fund Appropriations for Chapel Hill-Carrboro City Schools
and Orange County Schools are approved:
a) Current Expense appropriation for local school districts totals $77,201,412 and equates
to a per pupil allocation of$3,868
1) The Current Expense appropriation to the Chapel Hill-Carrboro City Schools is
$46,388,977.
2) The Current Expense appropriation to the Orange County Schools is $30,812,435.
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
$1,802,700.
2) The Recurring Capital appropriation to the Orange County Schools totals
$1,197,300.
c) Long Range (Pay-As-You-Go) Capital appropriation for local school districts totals
$3,799,346.
1) The Long-Range (Pay-As-You-Go) Capital appropriation to the Chapel Hill Carrboro
City Schools totals $2,283,027.
2) The Long-Range (Pay-As-You-Go) Capital appropriation to the Orange County
Schools totals $1,516,319.
d) School Related Debt Service for local school districts totals $15,372,383.
e) Additional net County funding for local school districts totals $3,354,000.
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(1) School Resource Officers and School Health Nurses Contracts - Total appropriation
of$3,354,000 to cover the costs of School Resource Officers in every middle and
high school, and a School Health Nurse in every elementary, middle, and high
schools in both school systems.
6) County Fee Schedule
To adopt the County Fee Schedule to include changes included in the FY2016-17 Manager's
Recommended Annual Operating Budget.
A motion was made by Commissioner Dorosin, seconded by Commissioner Price to
adopt the Resolution of Intent to Adopt the 2016-17 Orange County Budget.
VOTE: UNANIMOUS
Commissioner Burroughs commended the Manager and the Finance staff for the great
job on the budget process.
A motion was made by Commissioner Dorosin, seconded by Commissioner Burroughs
to adjourn the meeting at 11:34 p.m.
VOTE: UNANIMOUS
Earl McKee, Chair
Donna Baker
Clerk to the Board