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HomeMy WebLinkAboutMinutes 05-10-2018 Budget Public Hearing1 APPROVED 6/5/2018 MINUTES BOARD OF COMMISSIONERS BUDGET PUBLIC HEARING May 10, 2018 7:00 p.m. The Orange County Board of Commissioners met for a work session on Thursday, May 10, 2018 at the Whitted Building in Hillsborough, N.C. COUNTY COMMISSIONERS PRESENT: Chair Dorosin and Commissioners Mia Burroughs, Barry Jacobs, Earl McKee, Mark Marcoplos, Renee Price and Penny Rich COUNTY COMMISSIONERS ABSENT: None COUNTY ATTORNEYS PRESENT: None COUNTY STAFF PRESENT: County Manager Bonnie Hammersley, Deputy County Manager Travis Myren and Assistant Deputy Clerk II Sherri Ingersoll (All other staff members will be identified appropriately below) Chair Dorosin called the meeting to order at 7:14 p.m. 1. Opening Remarks Chair Dorosin welcomed everyone who came tonight to speak on the budget, and said the next public hearing is scheduled for 5/17 at Southern Human Services Center. 2. Presentation of County Manager’s Recommended FY 2018-19 Budget Bonnie Hammersley made the following PowerPoint presentation: FY2018-19 COUNTY MANAGER RECOMMENDED BUDGET Continuation budget  Debt Service  Personnel Cost  Contract Obligations  Reserve Levels  CHCCS and Orange County School Funding FY2018-19 RECOMMENDED BUDGET BUDGETED EXPENDITURES & REVENUES FY2018-19 RECOMMENDED BUDGET BUDGETED REVENUES 2 Bonnie Hammersley responded to Commissioner Burroughs’ question from a previous meeting, by saying that the breakdown of tax revenues is 81% residential and 19% commercial. She resumed the presentation: FY2018-19 Recommended Budget Assumptions  Tax Growth = 3.0%  Sales Tax Growth = 2.4%  General Fund Reserve = 16% Phase In Tax Rate Increase $0.0142 to $0.8519 $0.01 on county tax rate = $1,838,250 $0.0142 on county tax rate = $2,610,315 FY2018-19 RECOMMENDED BUDGET BUDGETED EXPENDITURES 3 Bonnie Hammersley said that the increase is due to increased debt service, and will not seep into the operating budget. She said this allows for flexibility with the phase-in of taxes. Commissioner McKee asked if the .0795 projected tax increase assumes that the revenues, currently being collected, will remain the same. He asked if sales revenue growth exceeds these estimates, would the possibility of increasing taxes be reduced. Bonnie Hammersley said yes, if better growth is seen, the rate could be adjusted in the future. She resumed the presentation: FY2018-19 Recommended Budget $0.0142 Tax Rate Increase Impact Functional Leadership teams  Community Services  Increase Solid Waste Program Fee $4 to $132 per year  General Government  Food Council Coordinator – 1.0 FTE (contingent on cost share)  EMS Billing Collections – 1.0 FTE (additional revenue) $0.01 on county tax rate = $1,838,250 $0.0142 on county tax rate = $2,610,315 Property Value FY2017-18 Tax Rate ($0.8377) FY2018-19 Tax Rate ($0.8519) Increase $100,000 $837.70 $851.90 $14.20 $200,000 $1,675.40 $1,703.80 $28.40 $300,000 $2,513.10 $2,555.70 $42.60 $400,000 $3,350.80 $3,407.60 $56.80 $500,000 $4,188.50 $4,259.50 $71.00 FY2018-19 RECOMMENDED BUDGET REQUEST COMPILATION FY2018-19 RECOMMENDED BUDGET COUNTY DEPARTMENTS 1- Increase living wage for temporary employees to $14.25 on July 1, 2018 2- Increase living wage for non-competitive contracts = $37,150 FY2018-19 RECOMMENDED BUDGET COUNTY DEPARTMENTS 4  Racial Equity Training (REI) – 1st year of 3 year plan (fund reallocation)  Human Services  Dental Hygienist – 1.0 FTE (new revenue and fund reallocation)  Implement pilot for “Local Housing Voucher” program  Public Safety  Criminal Justice Resources - 0.5 FTE (Contingent on new ABC revenue) Commissioner Burroughs referred to the recurring capital, and asked if approximately $3 million should appear in the debt service. Bonnie Hammersley said that will be addressed in a couple of slides ahead. She resumed the presentation: OCS - CAPITAL Requested Increase Recommended Increase Recommended Appropriation Recurring Capital ($18,900) ($18,900) $1,178,100 Long Range Capital $5,993 $5,993 $1,544,671 Deferred Maintenance Plan $0 $1,178,100 $1,178,100 Total ($12,907) $1,165,193 $3,900,871 FY2018-19 RECOMMENDED BUDGET EDUCATION FY2018-19 RECOMMENDED BUDGET EDUCATION FY2018-19 RECOMMENDED BUDGET EDUCATION 5 Bonnie Hammersley said schools have not requested funds for the deferred maintenance program, but everyone knows there are outstanding needs in deferred expenditures. She said this is $3 million of fund balance that will be used for one-time deferred maintenance expenses. Commissioner Burroughs said the schools have been getting $3 million in pay-as-you-go funds under recurring capital. Bonnie Hammersley said the schools will continue to get these funds. Commissioner Burroughs asked if this is shown in the budget, and if an existing $3 million has been taken and moved to a different place, as it shows zero in recurring capital in the Manager’s Recommended Budget. Travis Myren referred to the Operating Budget page, and said the $3 million in recurring capital has gone to zero. He said this $3 million shows up in the capital budget. He said the schools will not see any decrease in the amount of money received for recurring capital; it is just being paid in a different way. He said this will manifest itself in debt service over time, but frees up a little cash in the operating budget. Chair Dorosin cautioned against saying that the schools have not asked for deferred maintenance funds, because the schools have been asking for those funds for a long time. Bonnie Hammersley said yes; there was just no specific request this year. Commissioner Price said there is a zero in the health and safety contracts, and asked if clarification could be provided. Bonnie Hammersley said the schools did not request an increase there, but staff made the adjustment automatically for salary adjustments for nurses and school resource officers. She resumed the presentation: Commissioner Jacobs asked if staff can tell the Board of County Commissioners (BOCC) the last time the County contribution was below 48.1%. Bonnie Hammersley said it was in 2010 with the recession, and this will be looked at during the Public Hearing next week and in greater detail at the work session on May 24th. She resumed the presentation: Chair Dorosin asked if this will provide a specific number of scholarships. FY2018-19 RECOMMENDED BUDGET EDUCATION FY2018-19 RECOMMENDED BUDGET EDUCATION *Funded by Article 46 Sales Tax 6 Travis Myren said it covers 200 scholarships. Bonnie Hammersley resumed the presentation: Bonnie Hammersley said last year, the BOCC requested a formula be used for determining funding for non-profits. In appreciation for the advisory board input, staff included the funding based on the evaluation scores. They looked at the scores, and some were too low, and received 0%. They will discuss this more on the 24th. She resumed the presentation: Bonnie Hammersley said she did not recommend any new agencies receive funding this year, since this is a continuation budget. She resumed the presentation: Commissioner Rich asked if there is a plan to notify residents in the Eno and Little River fire districts about the increase in rate. She asked if residents know this is happening. FY2018-19 RECOMMENDED BUDGET OUTSIDE AGENCIES  Advisory Board scoring was used to recommend funding amounts FY2018-19 RECOMMENDED BUDGET OUTSIDE AGENCIES  $1,401,173 is consistent with the target established by the BOCC to allocate 1.2% of general fund expenses, not including education, to outside agencies. FY2018-19 RECOMMENDED BUDGET FIRE DISTRICTS 7 Travis Myren said it is on the tax bill, but the County does not provide separate notice of these types of tax increases. Commissioner McKee said there are no protocols in place, and there is probably a limited awareness, because there is no direct communication; and whether there should be is open for discussion. He said residents who are engaged in the community probably have an awareness, but the general public may not. Commissioner Jacobs said another Commissioner was concerned about this, and felt that the Fire Department’s Board of Directors should provide a notice, since they are the ones requesting the increase. Commissioner McKee said the only notice he has heard of is through the fire district’s annual meeting. Commissioner Jacobs asked if the County could include a note in the tax bills when this occurs, to provide the information. Commissioner Rich said it is especially important that people understand who is really taxing them, since this is being requested through the fire department. Chair Dorosin asked if Todd McGee, Community Relations Director, could aid in getting information out. Bonnie Hammersley said she will talk with Todd McGee as well as the Fire Chiefs. Commissioner McKee also suggested that some general information be provided through the press about tax increases and who is requesting them. Bonnie Hammersley resumed the presentation:  Clerk to Board of Commissioners  County Finance & Administrative Services Office  Orange County Library  Chapel Hill Public Library  Carrboro/McDougle Branch Library  Orange County Website - http://orangecountync.gov 3. Public Comment Bill Whitmore said he is a resident of downtown Hillsborough, and is here on behalf of the Hillsborough Arts Council. He said the Council would like to request full approval of its funding request, specifically for organizational development and community outreach. He said this additional funding would take the part-time employee to full-time, which would relieve the FY2018-19 RECOMMENDED BUDGET FY2018-19 RECOMMENDED BUDGET BUDGET DOCUMENT AVAILABILITY 8 volunteers. He said last year there were over 11,000 volunteer hours with the Council, which has helped to make the community a richer place to live. He said the County is growing, as are the needs of the arts. He said the Arts Council holds events and arguably drives more of the business in the community. He said Hillsborough is literally and geographically the heart of the County, and is synonymous with the County and the Council asks for full support from the BOCC. Jamezetta Bedford spoke on behalf of the Mental Health Community Connections (MHCC) Group, a collaboration between both school districts, families, health care providers and community agencies. She said the purpose of this organization is to educate and encourage support. She said May is Mental Health Awareness month, and the perception is that mental health issues will not change, but the Board of County Commissioners can help to change it by supporting the schools systems, Club Nova and departments who are involved in mental health issues. She said the BOCC can also help by supporting training for the Sheriff’s department and alternative programs through the Criminal Justice office. She said this problem has many moving parts, but children and youth spend so much time at school, and together first steps are being taken in moving towards improving children’s health. Marisa Martini said she is the Community Development Manager for Habitat for Humanity of Orange County. She thanked the BOCC for its commitment to affordable housing and its support for Habitat, and to the County Manager for recommending a budget increase for Habitat’s Home Preservation Program, which serves low income families, insuring that everyone has a safe, decent, and dignified place to live. She said one project in the Home Preservation Program this fiscal year was for Barbara McNeil in Efland, who requested help through Habitat with her windows, back door and exterior paint, but when the Habitat representatives visited with her, they learned she had no indoor plumbing and had been using an outhouse for 61 years. She said Home Preservation projects typically have a maximum budget of $5,000, which would have covered the projects requested by Mrs. McNeil, but it was clear that a bathroom was needed. She said a strategy was created, partnerships developed, and through volunteers and expanded programs, Mrs. McNeil received a bathroom and indoor plumbing in her home. She thanked the BOCC for its help and support for affordable housing. 4. Adjournment A motion was made by Commissioner Rich and seconded by Commissioner Burroughs to adjourn the public hearing at 7:51 p.m. VOTE: UNANIMOUS Mark Dorosin, Chair Sherri Ingersoll Assistant Deputy Clerk II