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HomeMy WebLinkAboutMinutes 06-15-2017 1 APPROVED 9/5/2017 MINUTES BOARD OF COMMISSIONERS BUDGET WORK SESSION June 15, 2017 7:00 p.m. The Orange County Board of Commissioners met for a work session on Thursday, June 15, 2017 at 7:00 p.m. at the Southern Human Services Center in Chapel Hill, N.C. COUNTY COMMISSIONERS PRESENT: Chair Dorosin and Commissioners Mia Burroughs, Mark Dorosin, Barry Jacobs, Mark Marcoplos, Earl McKee, Renee Price and Penny Rich COUNTY COMMISSIONERS ABSENT: COUNTY ATTORNEYS PRESENT: COUNTY STAFF PRESENT: County Manager Bonnie Hammersley, Deputy County Manager Travis Myren and Clerk to the Board Donna Baker (All other staff members will be identified appropriately below) Chair Dorosin called the meeting to order at 7:02 p.m. 1. Discussion of Budget Amendment List for FY2017-18 Operating Budget and FY2017-22 Capital Investment Plan Bonnie Hammersley reviewed the following items at the Commissioners' places: - Blue sheet: historical education spending of categories included in the 48.1% target for schools - Coral sheet: additional recurring capital recommendations for County Departments - Pink sheet: historical per pupil appropriation - White sheet with holes: updated fee schedule -Addition to capital improvement packet, with red line changes - Two lavender attachments that go along with the amendment sheets Commissioner McKee arrived at 7:07 p.m. - White sheet: abstract from May 16 Bonnie Hammersley reviewed the chronology of how the Board and staff have reached the point where they are tonight. She said the total amount on the amendment sheet is $50,000 more than recommended funding, and staff worked on ideas to balance it today. She said Commissioner Price asked for an amendment for a Paramedic Coordinator position for expansion of services, and the Manager talked with Dinah Jeffries, Emergency Medical Services (EMS) Director, about the funding of this position. She said staff has committed to pursuing potential grants for this position, and the EMS Director is reaching out to partners for funding as well. She said removing the Paramedic Coordinator position would balance the sheet. Bonnie Hammersley said there is about $500,000 of on going use with one-time money, and one reason the Paramedic Coordinator position was considered is because it is an expansion of services, and if there are funds elsewhere, she would recommend using those 2 funds. She said otherwise the position would be funded with one-time monies, which may not be available in future years. Commissioner Burroughs said there is $518,000 added to the $1.3 million, which came from reducing the fund balance percentage. Bonnie Hammersley said line 2 is the total amount of funds once the Board of County Commissioners (BOCC) reduced the reserve fund. Commissioner Burroughs said there are two proposed amendments that are for $300,000 with different interpretations of what that is. Chair Dorosin asked if this was the point in the meeting to go through the proposed amendments. Bonnie Hammersley said yes. Chair Dorosin said Commissioner Burroughs has a proposed amendment for $1,750,000 to be used for capital projects. Commissioner Burroughs said it is one-time money, but the wording specifically states, "add one time funds to schools from lowering general fund reserve". Chair Dorosin asked if Commissioner Burroughs is advocating that the funds be used by the schools for one-time expenses. Commissioner Burroughs said the BOCC gives the money to schools, and the schools use it as they so choose, but if she were on the school boards, she would advocate that these funds be used for one-time expenses. Chair Dorosin said two other Commissioners wanted to add additional funding to increase per pupil spending, and asked if Commissioner Burroughs' amendment comes with no restrictions; or if she is suggesting that the funds should not be used for operating expenses, which will need to be maintained going forward. Commissioner Burroughs said if either school board uses the funds for ongoing expenses, they would have to understand that the same funds may not be available next year. Chair Dorosin clarified that Commissioner Burroughs' amendment is for the school boards to use the money as they so choose. Commissioner Burroughs said yes. Commissioner McKee said his amendment plays off of Commissioner Jacobs'. Commissioner Jacobs said he spoke with the County Manager, then subsequently spoke to Commissioner Burroughs, and said he is comfortable that the $1.7 million trumps the $300,000. He said since the school systems can use the money as they deem fit, and one system may use it for one-time expenses while the other may not. He said he is not clear if the Board wants to move one-time funds to fund operating costs in the schools, since that is not the historical use of these types of funds. He said Orange County Schools (OCS) will do better under Commissioner Burroughs' recommendation. Commissioner Rich asked if Commissioner Jacobs was advocating $300,000 on top of Commissioner Burroughs' amendment. Commissioner Jacobs said at first he was advocating the $300,000 parallel to Commissioner Burroughs' amendment, but he had not thought through one time versus continuing. He said he wanted to build up more money for per pupil, but Commissioner Burroughs' option has more flexibility built in. Commissioner McKee said he is fine with the $1.7 million to be used by the school systems as they see fit. Commissioner McKee said he is trying to come to some solution to fund these schools consistently, and not to lose teacher assistants. Chair Dorosin said $400,000 may have just been taken off the list. 3 Commissioner Burroughs said the last clarification is the question of from where the money will come. She asked Commissioner McKee if he intended to add the additionally found funds of$400,000, over and above the already committed $1,750,000. Commissioner McKee said yes, and it is still his intention to make that recommendation. Commissioner Jacobs said he thought this $400,000 was going on top of the $1,750,000, but since now there is $2.4 million he would like $2 million to go to the schools and remaining $400,000 to the County. He said the Board does not have to spend every dollar that it has. Commissioner McKee said he is open to giving the schools $2 million. Commissioner Price clarified that no one is concerned that these funds should go to one-time expenses. Commissioner Jacobs said the Board will allocate the funds to capital needs for the schools, but the schools can use the funds as they want. He said there is no additional funding for operating expenses, and the schools understand that they have discretion; the BOCC does not tell them how to spend money. Bonnie Hammersley said as one time funding, it would be run through the recurring capital, with 1/12 of the total being given to the schools on a monthly basis. She said this funding can be spent in three categories, and the schools do not provide invoices. She said next year the base budget will return to $3 million. She said the other option is put the funds against the per pupil, but that would not be her recommendation as these are one time funds. Commissioner Burroughs' proposal would not affect the per pupil amount. Commissioner McKee said he is not against doing anything that is reasonable, and he is not in favor of raising taxes this year. Commissioner Burroughs said if she were to make a motion to raise taxes, instead of this proposed amendment, it would die for lack of a second. She said this proposed amendment is not ideal, but it will work. Paul Laughton, Finance and Administrative Services, said the three categories, in which schools can spend recurring capital funds, are: building and grounds/facility improvements; furnishings and equipment; and vehicles and buses. He said 1/12 of these funds are given on a monthly basis, just as it is done with operating funds. Commissioner Rich asked if the $1.7 million goes to schools as a one-time expense, can that money can be used for recurring or operating costs. Commissioner Burroughs suggested asking OCS how they may use the funds. Chair Dorosin asked if the BOCC can direct funds to recurring expenses, and the funds only be spent there; or can the funds go into recurring expenses, but ultimately be spent however the schools deem appropriate. He said it will be vital for the schools to understand that next year the base will start at the same level that it started this year, and these additional funds are in no way guaranteed. Paul Laughton said historically recurring capital has been given to be spent in one of those three categories. Chair Dorosin asked if the Board can insist that funds be spent on recurring capital, or if the Board merely makes suggestions/recommendations. Paul Laughton said the schools do not send in invoices, and the County gives the schools 1/12 of the allocated funds on a monthly basis. Pam Jones, OCS Deputy Superintendent, said when OCS does its Capital Investment Plan (CIP), recurring capital is included in the categories mentioned by Paul Laughton. Chair Dorosin said there are two pots of money, which are drawn upon each month, and there is no accountability for how the funding is spent. Paul Laughton said the County does not have the authority to tell the schools how to use the funds, but the County keeps separate accounts for recurring and capital funds. 4 Commissioner McKee said if the $1.7 million is allocated to capital, and the schools already have monies in the capital budget, does this not release the monies in the capital budget to be used for something else; or is capital spending being increased by $1.7 million. Pam Jones said it is an effort to supplant with the additional funds. She said OCS needs money for personnel salaries and for teacher assistants. Commissioner McKee asked if the Board does not tag these funds with a particular use, can the schools use the funds wherever needed. Pam Jones said yes. She said it would be helpful if the additional monies being discussed this evening were not allocated to the three previously mentioned categories, and the schools could reallocate the funds according to the need, with the understanding that these funds are a one time offer. Chair Dorosin said it was his understanding that there are extensive unfunded capital needs, and if the Board is saying to use the funds to address those needs, why will the schools not do so. He said he is hearing that these funds will be used for operating expenses with the understanding that the funds may not be available next year. Pam Jones said the budget that the Board has proposed will not fund the OCS continuation budget, and it is this budget that pays teachers, etc. She said OCS's first priority will be to fund that budget, and these additional funds would have to go towards those costs. Todd LoFrese, Chapel Hill Carrboro City Schools (CHCCS) Deputy Superintendent, said if additional funding is granted, the CHCCS Board would have to discuss how to proceed, including any impact from the state level decision-making. He said in meetings thus far, the CHCCS administration has recommended that any additional funds be used for deferred maintenance. Commissioner Burroughs clarified that this additional funding does not enable CHCCS to pay a living wage, reinstate Media Assistants, etc. Todd LoFrese said no, these additional funds would not enable the requested operating budget to be met. Chair Dorosin asked if continuation budget can be met, given the change in required salaries. Todd LoFrese said it is still unclear what the General Assembly will do, but CHCCS believes that the Manager's recommendation would meet their continuation expense needs. He said the living wage, restoration of assistants, etc., were in the CHCCS expansion budget. Commissioner Marcoplos asked Todd LoFrese if it is his assumption that the CHCCS Board would use any additional funds to pay for lingering repairs, etc. Todd LoFrese said that would be the Administration's recommendation to the CHCCS Board. Commissioner Marcoplos clarified that OCS needs are different than CHCCS. Pam Jones said the difference between the two districts is that OCS has not met its continuation budget, and any additional funds would need to go towards closing that gap. Commissioner Marcoplos asked if there is an update regarding the subcontractors receiving a living wage. Todd LoFrese said there is about a $400,000 difference between the base bid, and the submissions received for paying a living wage. He said the CHCCS Board has not discussed prioritization and what happens at the local and state level will determine the course that CHCCS takes. Commissioner Marcoplos said it sounds like a living wage may be possible, but it is uncertain at this time. Todd LoFrese said a living wage would be ongoing, and thus part of the operating budget. 5 Commissioner Jacobs said the Board can deem these additional funds as undifferentiated, one-time funding that the schools can use as needed. Commissioner Jacobs said this is why the County is perpetually falling short on building maintenance, because operating expenses always have to be supported, due to lack of support at the State level. Chair Dorosin said he is hearing a consensus for $2.1 million for one-time funds to the schools. A motion was made by Commissioner Price, seconded by Commissioner Burroughs to fund the schools at $2.1 million. VOTE: UNANIMOUS Chair Dorosin commended all for a collaborative budget process. • Operating Budget Amendment List and Decision Items for the County's FY2017-18 Annual Operating Budget The Board went line by line on the lavender sheet, and voted on these Amendments: 001. A motion was made by Commissioner Price, seconded by Chair Dorosin to add partial funding from the Visitor's Bureau occupancy tax of$5,000 and $10,000 from the General Fund for the Bike Safety Campaign. VOTE: UNANIMOUS 002. Previously voted upon at BOCC meeting - Reduce the General Fund Reserve to 16% 003. A motion was made by Commissioner Jacobs, seconded by Commissioner Marcoplos to fund WHUP for $1,000. VOTE: UNANIMOUS 003. A motion was made by Commissioner Rich, seconded by Commissioner McKee to increase cell phone allowance for BOCC from $35 to $53 = $1,296/annually. VOTE: UNANIMOUS 007. A motion was made by Commissioner Rich, seconded by Commissioner McKee to eliminate the Chapel Hill-Carrboro Chamber and Hillsborough-Orange membership fee - $9,500 ($8500 for Chapel Hill-Carrboro and $1,000 for Hillsborough-Orange) to be added back into Economic Development budget, and to the State of the Economy event. (Commissioner will still be able to attend events but the BOCC office will pay). 6 Commissioner Price said the County pays $1,000 dues to the Hillsborough/Orange County Chamber, and asked if the Board is not going to pay dues to the Chapel Hill—Carrboro Chamber, then should it also not pay the Hillsborough-Orange Chamber. Commissioner Rich said she was just talking about Chapel Hill — Carrboro Chamber. Commissioner Marcoplos clarified that none of the other local municipalities pay dues to the Chapel Hill-Carrboro Chamber. Commissioner Rich said that is correct; rather they pay to attend specific events. Chair Dorosin said if this is a policy based decision the Board should withdraw dues from both chambers. Commissioner Marcoplos asked if the fees for a la carte payment are known. Commissioner Jacobs said pittance. Chair Dorosin said the BOCC can pay per event, and still attend events. VOTE: UNANIMOUS 010-013 —Additional Outside Agency Funding for 4 agencies Commissioner Price said she wanted these agencies to be able to move forward with their projects. Commissioner Rich said she will vote against this, only because there is an outside agency process, which she wants to respect. She said she has nothing against these agencies. Commissioner Marcoplos said he agreed with Commissioner Rich, and sees it as a question of consistency and may cause people to say the process is flawed. Commissioner Price said the process was not flawed, but since other changes are being made she wanted to fund these agencies. She said these are small amounts of money. Commissioner Burroughs said she wanted the Board to respect the outside agency process, and she wanted to stay with Manager's recommendation. Commissioner Jacobs said he had also wanted to add monies to Planned Parenthood, but he was persuaded to stay with the outside agency recommendation process. Commissioner Price said she does not want to change the process, but just wanted more emphasis on some agencies. No motion needed - stays as is. 014-015-/020 A motion was made by Commissioner Jacobs, seconded by Commissioner McKee to reduce the Board of County Commissioners contingency fund by $15,000 (From $37,000), and add this to the Veteran's Memorial Challenge to match other donations to encourage members of the public to match at $15,000 and if not matched, County will pay the rest. Commissioner Rich asked if the amount currently in this fund could be identified. Paul Laughton said $30,000, and $37,000 has been budgeted each year for the last three years. He said $20,000 was spent in FY2015-16 towards the initial work of the Bond Committee. Commissioner McKee said he would like to continue budgeting $37,000 for the BOCC Contingency Fund, but would be fine with this being a one-time expense. Chair Dorosin suggested reducing the annual contingency fund by $1,296 to fund the Commissioner cell phone stipend. VOTE: UNANIMOUS 7 A motion was made by Chair Dorosin, seconded by Commissioner Price to reduce the annual BOCC contingency fund by $15,000 in FY2017-18 and to fund the phone stipend of $1296/annually for the Commissioners (Amendment 6). VOTE: UNANIMOUS 016/017 (off setting funds) A motion was made by Commissioner Jacobs, seconded by Commissioner Rich to add funds of$50,000 out of Article 46 funds to facilitate greater purchasing of local (Orange County) food/farm products by local institutions, particularly the Orange County school systems. VOTE: UNANIMOUS 018: Done -Add one time funds to Schools from Lowering the General Fund reserve 019: Add 1 FTE Community Paramedic Coordinator Position - Staff will pursue grant funding and partnerships 020: Done above with 014/015 021: Commissioner Marcoplos suggested funding in the amount of$20,000 as a placeholder for the County to conduct a study to determine the feasibility of the County owning and operating affordable housing. Commissioner Jacobs said this idea may apply in relocating residents from mobile home parks, if they close. He said when the new Housing Director is hired, he/she can address the question of County owned housing, and if he/she feels a study is necessary then the County could fund it. Commissioner Price said she would like to wait for the arrival of the new Housing Director. Chair Dorosin said he thinks it is a great idea, but sees no need to have a placeholder for funds. He said the new Housing Director can consider the issue, and a budget amendment can be done if funding is needed for a study. There was Board consensus that this topic will be added to the duties of the new Housing Director. 022/023 A motion was made by Commissioner Burroughs, seconded by Commissioner Rich - goes with 023 -Additional revenue was identified to fund time — limited Property Development Technician position in Environmental Health using additional revenue identified. VOTE: UNANIMOUS 025: DONE -Additional one-time funds identified due to closing out 2014 capital projects, and using excess proceeds for debt service payments. 026 A motion was made by Commissioner Rich, seconded by Commissioner McKee for staff to correct two errors found in the recommended budget correcting. 8 VOTE: UNANIMOUS 027: Removed 028 A motion was made by Commissioner Jacobs, seconded by Commissioner Burroughs (Coral color sheet) to add one-time funds to operating capital for county departments- total- $250,000. VOTE: UNANIMOUS 029: DONE 030/031/32 - Grant funding came in A motion was made by Commissioner McKee, seconded by Commissioner Jacobs to use WIOA Adult Dislocated grant revenue to fund expenses for the WIOA Adult Dislocated Worker Grant funds which includes the creation of a time-limited position — 1 FTE Human Service Coordinator II in Social Services. VOTE: UNANIMOUS Commissioner Jacobs said if it is possible to follow through on previous discussions about widening the use of wireless, by placing transponders on Emergency Services facilities, etc., he would suggest using some of these funds out of County capital. The Board agreed to this suggestion by consensus. Commissioner Price asked if there is a plan for the $118,000 that was saved tonight. Bonnie Hammersley said there are not really savings, but rather expenditures were reduced. She said these funds will go into offsetting the general fund appropriations. Commissioner McKee said to let the money sit in the general fund, as there will likely be budget amendments in the future. Commissioner Jacobs said he agreed. Chair Dorosin asked if the exact amount could be provided. Paul Laughton said it is $112,309 Chair Dorosin said it could be used to lower the County or school district tax rate by that amount. • Capital Investment Plan Budget Amendment List and Decision Items for FY2017-18 CIP Funding Travis Myren said the Board has discussed the items on the second page of the lavender sheets several times. Chair Dorosin asked if the Board had questions about these 14 items. Commissioner Price referred to amendment 004 - Information Technology Governance Council Initiatives — and said it was her impression that the installation of fiber would move forward. Travis Myren said she and Commissioner Rich had suggested moving forward, and if the Board wants to go forward with phase 2 and 3 then this change would not be adopted. He 9 said the payback would be 44 years, but there are some operating savings associated with proceeding. Travis Myren said moving these out further in the CIP saves debt service. Travis Myren said general fund supported impact would be general fund supported debt service; whereas the non-general fund supported debt service, such as Register of Deeds automation, is in a separate fund and the debt service is paid for by the fees raised by the Register of Deeds. Commissioner Jacobs referred to amendment 010 - Millhouse Road Park- and said the Mayor of Chapel Hill says she is interested in promoting soccer fields here with the County, but the Town has not expressed an official position. He suggested revisiting this topic if need be. Chair Dorosin asked if there is a reason that this item does not contain a dollar amount. Travis Myren said this item is moving within the 5 year CIP, while other things are moving out to years 6-10. Commissioner Jacobs said he spoke to a parent who drives kids all over to play soccer, and this parent was very interested in seeing more fields developed in our community. He said the field at Cedar Falls is incredibly popular, and is the only available turf field. He said Pam Hemminger, Chapel Hill Mayor, has communicated a desire to upgrade fields, and if there is a partnership between the County and the Town, this topic should be reviewed. Chair Dorosin said he would discuss it with the Mayor at a scheduled breakfast next week. Commissioner McKee said he has two other projects to talk about: • The detention facility: he said he would like more clarification about the $622,000 budgeted in the upcoming fiscal year, as he thinks these funds may be premature, and better placed in year 2 or 3. Travis Myren said parts of these funds are for a feasibility study to look at both proposed sites, and the rest is for the architect to proceed on a design once the site is chosen. Commissioner McKee said he is fine with leaving the funds as they are. • Ag Center: He said he has some concerns over the evolution of the idea of this center. He said $3 million has been allocated for this upcoming year, and many people in the Agricultural community know nothing about the proposed changes. He said there should be conversations with the community, as this project has changed radically from its original scope. He suggested moving this project out to year 3, to clarify what is wanted and to include the agricultural community in the conversations. Commissioner Burroughs said she may be in agreement with moving the project out one year, but asked Travis Myren if this will put it in a pinch year. Travis Myren said since it was in year one, the debt service would be included in the subsequent years. He said if the project was moved out one year, it would not be in a pinch point. Commissioner Burroughs said she agreed that this project may not be ready for next year. Commissioner McKee said he wanted to continue to look at the project, but he feels strongly that the user community needs to be consulted. Commissioner Price asked if the purpose of the $3 million in year one could be explained. Travis Myren said that number is sized to be the renovation of the current facility on the current site, and would accomplish the interior renovations assuming the center stayed on 10 Revere Road. He said the BOCC also asked if alternative sites could be considered, including a Cornelius Street option, and a mixed-use idea on the current site. Commissioner Price said she there is no project ready with which to proceed, and she would rather wait too. Commissioner Jacobs said he understood that the BOCC would receive a report in late fall from Asset Management Services (AMS) about the various options. He said he agreed with Commissioner McKee, and really wants to incorporate the wishes of the agricultural community. He said he is inclined towards a new build, as it could be made specifically to suit the needs of the community. He said he does not have a strong feeling regarding time, and would defer to staff to make a plan that includes the agricultural community. Chair Dorosin said he is strongly opposed to pushing the project back, as it has been around for some time, and it is good to have time pressure to keep things moving. He said it is his understanding that if the reports about alternative sites prove unhelpful, then the plan is to proceed with the renovations at the current site, which included feedback from the agricultural community. He said once reports are received in November, the community can be engaged if necessary, and the plan can proceed or be pushed back as necessary. Commissioner McKee said he will not make an issue of this right now, but he wants to make sure that the agricultural community is engaged before the BOCC makes any decisions. Chair Dorosin said if affordable housing is going to be considered, this should be discussed in the fall as well. Bonnie Hammersley said funds are not borrowed until staff is ready for requests for proposals (RFP). She said staff will be sure to create a plan that includes the relevant stakeholders. Commissioner Rich asked if the Town of Hillsborough will continue to lay their fiber, or will it hold off as well. Travis Myren said the year one project will stay in the CIP, which is the partnership with Hillsborough. He said there have been good preliminary discussions with the Town already. Commissioner Price referred to the Southern Branch Library project, and said there is nothing in year one. She asked if funds are being carried over from previous years. Bonnie Hammersley said there are planning funds from previous years, and year 2 reflects what Carrboro also has in their project. She said year 2 has construction costs. • Other Funds Budget Amendment List and Decision Items for Other Funds FY2017-18 Budget 2. Accept the FY2017-22 Capital Investment Plan and Approve the Intent to Adopt Capital Funding for FY2017-18 County Capital Projects: • Parking Lot Improvements • Southern Orange Campus Expansion • Information Technology Fiber Connectivity • Information Technologies Governance Council Initiatives • EMS Substations • Orange County Radio/Paging System Upgrades • Register of Deeds Automation • Blackwood Farm Park • Millhouse Road Park • Northeast District Park 11 • Detention Center (change to Project Description only) • Environment and Agriculture Center (change to Project Description only) • Orange County Southern Branch Library (change to name of project as well as to Project Description) School Projects: • Durham Technical Community College (Orange County Campus) • As mentioned in the June 13, 2017 Budget Work Session abstract, adjustments have been made to the School Capital Projects in regards to the FY 2017-18 budgeted ADM percentages, as well as budgeted Article 46 Sales Tax proceeds, to be consistent with the FY 2017-18 Manager's Recommended Operating Budget. Water and Sewer Projects: • Buckhorn EDD — Efland Sewer to Mebane, Phase 2 Extension A motion was made by Commissioner Rich, seconded by Commissioner Burroughs to accept the FY2017-22 Capital Investment Plan and Approve the Intent to Adopt Capital Funding for FY2017-18 on coral sheet. VOTE: UNANIMOUS 3. FY2017-18 Annual Operating Budget Decision Items Paul Laughton said that which the BOCC decides now will determine what staff puts in the resolution of intent to adopt. He said officially, approving the amendments for the operating budget and a decision on funding for the CHCCS and OCS would be the next discussion. He said in regards to the $2.1 million, the decision would be as to how to direct those funds. Commissioner Burroughs asked if funds for the schools have to be directed. Paul Laughton said it has to be done by purpose or function, which is normally by current expense, that goes against the per pupil, or recurring capital. Commissioner Jacobs asked if it has to be done this way. Paul Laughton said there is some funding outside of those categories, such as nurses, and school resource officers (SRO). Commissioner Jacobs asked if the BOCC does not want to make a practice of spending one-time funds, but is in fact spending one-time funds, can the BOCC make a line item of"one-time funds." Paul Laughton said that is at the discretion of the Board, and under the statutes it must be by purpose or function, and he thinks Commissioner Jacobs' suggestion could be achieved by "purpose". Bonnie Hammersley said a precedent was set when the health and safety contracts were completed, and she would recommend the Board do another purpose called "one-time funding". Commissioner Burroughs said she agrees that the Board can do this, and her only caveat is that it is split by ADM. A motion was made by Commissioner Burroughs, seconded by Commissioner Jacobs for the County to add a category called one-time funding, and split by ADM the amount of$2.1 million to the schools. 12 VOTE: UNANIMOUS Commissioner Marcoplos said he talked to some community members about SROs, and whether this funding might be better spent on direct educational personnel or projects. He said the Board received a letter from National Association for the Advancement of Colored People (NAACP) asking that this idea be considered. He proposed that the Board treat the SRO question as a proposal for next year, and see if the school boards are interested. Commissioner Burroughs said it is a serious issue, and it is ultimately a school board decision. Commissioner Jacobs suggested adding this topic to their next joint school board meeting in the fall. Paul Laughton clarified that the current expense funding is remaining as it is in the Manager's recommended budget, which is $80,745,847, with $48.5 million to CHCCS and $32.2 million to OCS. Chair Dorosin said any changes that were going to be made were already done, and now all seem prepared to adopt the Manager's recommendations. • Resolution of Intent to Adopt FY2017-18 Annual Operating Budget at the Board of County Commissioners Regular Meeting on June 20, 2017 Adopt Manager's Recommendation: • Funding for Chapel Hill-Carrboro City Schools and Orange County Schools • Current Expense (Per Pupil) Funding — $80 million: $48.5 million to Chapel Hill and $32.2 million for OCS. • • Recurring Capital • • Long-Range Capital A motion was made by Commissioner McKee, seconded by Commissioner Burroughs to fund the CHCCS and OCS as voted on before, keep the recommended Current Expense (Per Pupil) and approve the Recurring Capital and Long Range Capital as recommended in the Manager's Recommended Budget. VOTE: UNANIMOUS • Tax Rate Decisions i. Ad Valorem Tax A motion was made by Commissioner Rich, seconded by Commissioner McKee to set at the Ad Valorem Tax rate at 83.77 cents per $100 of assessed valuation. VOTE: UNANIMOUS ii. Chapel Hill Carrboro City Schools Special District Tax A motion was made by Chair Dorosin, seconded by Commissioner Jacobs to maintain the CHCCS Special District Tax rate of 20.08 cents per $100 of assessed valuation. 13 Chair Dorosin said it may be a small amount, but lowering this tax is a symbolic step towards reducing the funding disparity between the two school districts. VOTE: Ayes, 6; Nays, 1 (Commissioner Marcoplos) iii. Fire District Tax Rates A motion was made by Commissioner McKee, seconded by Commissioner Price to approve the proposed Fire District Tax Rates for FY2018-19 as recommended in the Manager's Recommended Budget. • Cedar Grove 8.10 • Greater Chapel Hill Fire Service District 14.91 • Damascus 10.30 • Efland 6.78 • Eno 8.68 • Little River 4.92 • New Hope 9.94 • Orange Grove 6.81 • Orange Rural 9.15 • South Orange Fire Service District 9.68 • Southern Triangle Fire Service District 10.30 • White Cross 11.37 VOTE: UNANIMOUS Chair Dorosin said he is interested in how other entities manage the volunteer fire departments in regards to paid employees versus volunteers. Commissioner McKee said there is no set pattern in North Carolina. Commissioner Jacobs said he would be interested in how the County can help them more. • County Fee Schedule A motion was made by Commissioner Jacobs, seconded by Commissioner Burroughs to adopt the County Fee Schedule to include changes included in the FY2017-18 Manager's Recommended Annual Operating Budget. VOTE: UNANIMOUS 4. Break(to allow Finance and Administrative Services to formulate Draft Resolution of Intent to Adopt FY2017-18 Budget) at 9:25 p.m. 14 Break occurred and Meeting resumed at 9:58 p.m. 5. Resolution of Intent to Adopt FY2017-18 Annual Operating Budget • Approval of Resolution of Intent to Adopt FY2017-18 Annual Operating Budget at the Board of County Commissioners Regular Meeting on June 20, 2017 Paul Laughton summarized this document. Commissioner Jacobs asked Paul Laughton if he would add an * to those positions that fund themselves. Resolution of Intent to Adopt the 2017-18 Orange County Budget The items outlined below summarize decisions that the Board acted upon June 15, 2017 in approving the FY2017-18 Orange County Annual Operating Budget. WHEREAS, the Orange County Board of Commissioners has considered the Orange County FY2017-18 Manager's Recommended Budget; and WHEREAS, the Commissioners have agreed on certain modifications to the Manager's Recommended Budget as presented in the FY2017-18 County Manager's Recommended Budget on May 2, 2017; NOW THEREFORE BE IT RESOLVED, that the Orange County Board of Commissioners expresses its intent to adopt the FY2017-18 Orange County Budget Ordinance on Tuesday, June 20, 2017, based on the following stipulations: 1) Property Tax Rates a) The ad valorem property tax rate shall be set at 83.77 cents per $100 of assessed valuation. b) The Chapel Hill-Carrboro City Schools District Tax shall be set at 20.08 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 8.10 • Greater Chapel Hill Fire Service District 14.91 • Damascus 10.30 • Efland 6.78 • Eno 8.68 • Little River 4.92 15 • New Hope 9.94 • Orange Grove 6.81 • Orange Rural 9.15 • South Orange Fire Service District 9.68 • Southern Triangle Fire Service District 10.30 • White Cross 11.37 2) County Employee Pay and Benefits Plan Provide a County employee pay and benefits plan that includes: a. A total wage increase of 2.0% for all permanent employees hired on or before June 30, 2016, effective July 1, 2017. The maximum salary of each salary range shall also be increased to accommodate the wage adjustment. b. Meritorious Service Awards — recommends three levels as one-time performance bonuses, effective with employee Work Planning and Performance Review (WPPR) dates from July 1, 2017 to June 30, 2018: o $500 — proficient performance o $750 — superior performance o $1,000 — exceptional performance c. Compression Reduction Program — a total of $250,000 for salary compression adjustments to affected employees, effective July 1, 2017. d. A Living Wage increase from $13.15/hour to $13.75/hour, for all regular and temporary County employees. e. 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. f. Continue funding the Traditional and High Deductible Health Plans for employees and pre-65 retirees with no changes to employee premiums for FY2017-18. g. Include in the current health plan design trans-inclusive health care coverage, effective July 1, 2017. h. Provide prescription coverage with a Pharmacy Benefits Manager, effective July 1, 2017, for all regular and temporary County employees. i. Continue funding the Dental Program for employees and pre-65 retirees with no changes to employee premiums for FY2017-18. j. An additional eight hours of annual leave to be awarded at an employee's anniversary date, prorated for part-time employees. k. Implement a six-week paid paternal leave policy, effective July 1, 2017. I. Continue the voluntary furlough program. m. Directs the Human Resources Department to develop an implementation plan during FY2017-18 to increase the living wage for permanent employees only (this does not included temporary employees) to $15.00/hour. 16 3) Modifications to County Manager's FY2017-18 Recommended Annual Operating Budget The following modifications to the County Manager's Recommended Budget are made Adjustments to the Manager's Recommended FY2017-18 Budget On June 16, 2017, the Board of County Commissioners approved the following changes to the Manager's Recommended annual operating budget for the 2017-18 fiscal year. The information below summarizes changes made by the Board. Revenues Increase Decrease Manager's Recommended Revenue Budget $217,178,727 Reduce the General Fund Reserve to 16% 1,951,864 Additional revenue identified in Environmental Health 51,405 Recognize grant funds to offset the cost ofwomens' health screening 1,020 Additional one-time funds identified due to closing out 2014 capital projects 400,000 and using excess proceeds for debt service payments. Total Revenue Changes �$ 2,404,289 $0 Revised Revenue Budget 219,583,016 Expenditures Increase Decrease Manager's Recommended Expenditure Budget $217,178,727 Add partial funding for Bike Safety Campaign from general fund and partial from 10,000 the Visitors Bureau occupancy tax. Include Funding for WHUP 1,000 Increase cell phone allowance for BOCC from $35 to $53 1,296 Eliminate the membership fee to Chapel Hill Carrboro Chamber of Commerce (9,500) and Hillsborough Orange Chamber of Commerce in the Economic Development appropriation Reduce BOCC contingency line-$15,000 for Veteran's Memorial and $1,296 (16,296) to offset additional cell phone allowance costs Add Veteran's Memorial Challenge Fund to match other donations 15,000 Allocate One-Time discretionary funds to Schools from lowering GF reserve 2,100,000 (split by ADM) Continue time-limited Property Development Technician position using 51,405 additional revenue identified in Environmental Health Identified two errors in the recommended budget: 1)The funding of$67,778 was not appropriated for the displacement funds and 2)funds for retiree health 1,384 insurance was over stated ($66,394) Add one-time funds to operating capital for county departments 250,000 Total Expenditure Changes $2,430,085 ($25,796) Revised Expenditure Budget $219,583,016 Changes in County Staff Positions (Increase in FTE Approved). 17 Department Position FTE Criminal Justice Resource Office Misdemeanor Diversion Program Coordinator 1.000 Criminal Justice Resource Office Administrative Assistant II 0.500 Criminal Justice Resource Office Mental Health Liasion for Court-Involved Youth 0.500 Department of Environment, Agriculture,Parks&Recreation Recreation Program Assistant 1.000 Planning&Inspections Property Development Technician-(Time-Limited,1 year) 1.000 Planning&Inspections Property Development Specialist-(Time-Limited,1 year) 1.000 Orange Public Transportation Public Transportation Driver 1.000 Orange Public Transportation Public Transportation Driver 1.000 Orange Public Transportation Public Transportation Driver-effective October 1,2017 1.000 Orange Public Transportation Public Transportation Driver-effective October 1,2017 1.000 Orange Public Transportation Public Transportation Driver-effective January 1,2018 1.000 Orange Public Transportation Public Transportation Driver-effective January 1,2018 1.000 Orange Public Transportation Public Transportation Scheduler/Dispatcher 1.000 Orange Public Transportation TDM Coordinator(Communication Specialist) 1.000 Social Services Community Social Services Technician 0.500 Social Services Community Social Services Technician 0.500 Social Services Community Social Services Technician 0.500 Social Services Child Welfare Social Worker-(Time-Limited,6 months) 1.000 Social Services Child Welfare Social Worker-(Time-Limited,6 months) 1.000 Housing, Human Rights,& Community Development Housing Rehabilitation Specialist-effective January 1,2018(Housing Fund) 1.000 Housing, Human Rights,& Housing Resource Specialist-effective January 1,2018(Time-Limited,6 months) Community Development (Community Development Fund) 1.000 Health Property Development Technician-convert to Permanent(Time-Limited,1 year) 1.000 Human Service Coordinator II-WIOA Adult Dislocated Worker Grant(Grant Social Services Funded,Time-Limited) 1.000 Totals 20.500 18 5) General Fund Appropriations for Local School Districts The following FY 2017-18 General Fund Appropriations for Chapel Hill-Carrboro City Schools and Orange County Schools are approved: a) Current Expense appropriation for local school districts totals $80,745,847 and equates to a per pupil allocation of$3,991 1) The Current Expense appropriation to the Chapel Hill-Carrboro City Schools is $48,530,521. 2) The Current Expense appropriation to the Orange County Schools is $32,215,326. 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 $1,803,000. 2) The Recurring Capital appropriation to the Orange County Schools totals $1,197,000. c) School Related Debt Service for local school districts totals $15,074,910. d) Additional net County funding for local school districts totals $5,454,000. (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. (2) One-time discretionary funding of$2,100,000 by ADM is allocated to the school systems by the following: Chapel Hill-Carrboro City Schools appropriation is $1,262,100 and Orange County Schools' appropriation is $837,900. 6) County Fee Schedule To adopt the County Fee Schedule to include changes included in the FY2017-18 Manager's Recommended Annual Operating Budget. A motion was made by Commissioner McKee, seconded by Commissioner Rich to approve the Resolution of Intent to Adopt FY2017-18 Annual Operating Budget at the Board of County Commissioners Regular Meeting on June 20, 2017. VOTE: UNANIMOUS Chair Dorosin suggested a media blast of some of the highlights of this resolution. 19 A motion was made by Commissioner Jacobs, seconded by Commissioner Rich to adjourn the meeting at 10:08 p.m. VOTE: UNANIMOUS Mark Dorosin, Chair Donna Baker Clerk to the Board