HomeMy WebLinkAboutAgenda - 05-29-1985 OFFICIAL COPY
MINUTES APPROVED 9/03/85
MINUTES
MAME COUNTY BOARD OF COMMISSIONERS
SPECIAL METING
BUDGET
MAY 29, 1985
The Orange County Board of Commissioners met in special session on May 29,
1985 at 7:30 in the Courtroom of the Old Post Office in Chapel Hill, North
Carolina for the purpose of hearing a presentation by the Chapel Hill/Carrboro
Schools on operating and capital requirements for 1985-86 and a presentation
from County Manager Kenneth R. Thompson on the major cost elements of a 10%
personnel increase proposed by the state.
COMMTSRIONERS PRESENT: Chair Willhoit and Commissioners Shirley Marshall,
Moses Carey, Ben Lloyd and Norman Walker.
HEMMEMEL County Manager Kenneth R. Thompson, Director of Finance
Gordon Baker, Assistant County Manager Albert Rittrell, Financial Analyst Donna
Clayton and Clerk to the Board Beverly A. Blythe.
Dr. Parrish, Chair of the Chapel Hill/Carrboro Schools, noted the budget
is nonexpansionary and the recommendation from the County Manager is greatly
inadequate to fully fund the budget.
Sue Baker, School Board Member, stressed that full funding of the budget
in just a continuation of their present programs and services with no increase
in staff. She requested that this,continuation be funded. She gave a brief
summary of the achievements by Chapel Hill-Cariboro students.
Dr. Mayer, Superintendent of Schools, trade the following comments:
1. Student population continues to climb with an expected enroll-
ment for 1985-86 of 5,334 students.
2. The 1984-85 budget was supplemented with approximately $800,000
from the fund balance which is a nonrecurring source of revenu-
e.
3. The budget request represents a status quo budget for program
expenditures with a 5% inflationary factor built into non-
program expenditures with exceptions in several areas.
Dr. Mayer gave an overview of the preliminary budget and summarized
certain key items:
1. Revenue projections are based on a per pupil allocation of $782
for 5,334 projected students which equals $946,439.
2. A district tax increase of 3.7 cents to 19.3 cents will yield
$602,494.
3. The appropriation from the County represents 87.4% of all local
funds.
4. Eighty-five percent (85%) of the request will go for employees.
Harvey Gay, Finance Officer, described the process by which the budget was
put together and detailed information about changes in the actual amounts of
money being spent:
1. Ten percent (10%) salary increase is in the budget for all
employees.
2. Five percent (5%) inflation increase for all nonsalaried cost
except for utility cost, telephone cost, insurance cost, etc.
3. Referring to Category 1, current capital is a reflection of the
five-year, long-range capital plan.
He noted that all other items listed were presented in the budget last
year but were cut. The only additional request is for storage space.
He summarized the new items in Category 2 and listed the replacement items
in category 3.
Chair Willhoit asked that at a future budget session a discussion be held
to determine the discrepancies in the deficit from last year and whether the
2
only enhancements available are due to reprioritizing items within the budget.
He asked that information be provided on the implications of growth and the
method for calculating the increase in the fixed costs. He asked that further
discussion be held on the fund balance and how the carryover items affect the
fund balance.
Chair Willhoit asked to what extent had the Basic Education Program been
considered as a program enhancement and will it supplement any of the local
money.
Dr. Mayer indicated the Basic Education Program calls for the reduction of
class size which is the current class size so it would ultimately free up some
of the money for reduced class size in 7, 8, and 9 that local funds are now
used for and therefore that local money could be used for other areas of local
• effort.
Gerry House, Chapel Hill School Administrator, pointed out that the six
million mentioned for the Basic Education Program is the figure for the entire
project over a number of years and not the amount received for one year.
After further discussion by the Board and comments by the School Admin-
istrators, Kenneth Thompson outlined some of the issues that may have a bearing
on the 1985-86 budget. For 84-85 the School Board requested $1,071,000 as an
increase. The Board funded the cost of salary increases in the amount of
$566,000 which represented 10% for all employees and an additional 4.8% for
certified positions. The per pupil was increased to $653 based on an average
daily membership of 4,938. The district tax was increased by one cent and the
Board requested that Chapel Hill-Carrboro appropriate $106,000 from fund
balance. The current capital for 84-85 totaled $480,900 plus $80,000 from the
sales tax reserve for the science lab. The recommendation for 1985-86 is
$378,000 plus 1.5 million (both school systems) from the sales tax revenues to
fund capital projects to enable Chapel Hill to begin construction of multi-
purpose space in 1986-87 at a cost of $816,000, and cafeteria space for
$250,000.
After a lengthly discussion it was decided that a decision needs to be
made in the near future on how to phase in the long range capital projects and
the method for funding.
Revenues for the current expense budget were discussed and the fund
balance. Harvey Gay indicated that nothing had been received from back taxes
or from fines and forfeitures. After further deliberation it was determined
that there is a difference in the amount of revenues that may be received and
the amount allocated for personnel. The supplements for all teachers, state
and local, are paid from local funds.
Dr. Mayer noted that the appropriation last year did not cover the salary
requirements which included a 14.8% increase for everyone, and that the deficit
most be included in the budget for 1985-86.
AEPARNINET
Chair Willhoit adjourned the special meeting. The next regular meeting
will be held on June 4, 1985, 7:30 p.m. in the Superior Courtroom, Hillsborough
North Carolina.
Don Willhoit, Chair
Beverly A. Blythe, Clerk