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HomeMy WebLinkAboutMinutes 06-12-2018 Budget Work Session1 APPROVED 9/4/2018 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS BUDGET WORK SESSION June 12, 2018 7:00 p.m. The Orange County Board of Commissioners met for a budget work session on Tuesday, June 12, 2018 at 7 p.m. at the Whitted Human Services Center 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 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 the FY 2018-19 Operating Budget (PowerPoint Presentation) • Funding Decisions on the Operating Budget Amendment List • Funding Decisions on the Other Funds Budget Amendment List Travis Myren noted the following items at the Commissioners’ places: - Blue sheet: summary amendments - Purple sheet: special revenue fund amendment - Peach sheet: CIP amendments Travis Myren made the following PowerPoint presentation: Intent to Adopt Budget Work Session June 12, 2018 Whitted Meeting Facility Decision Points 1. FY2018-19 Operating Budget • Consider and Approve Amendments to the County Manager’s Recommended Operating Budget (General Fund • Consider and Approve Amendments to Other Funds • Consider and Approve School Funding for Current Expense and Deferred Maintenance for Chapel Hill-Carrboro City Schools and Orange County Schools 2. FY2018-23 Capital Investment Plan (CIP) • Consider and Approve CIP Amendments • Accept the FY2018-23 Capital Investment Plan and Approve Capital Funding for FY2018-19 3. FY2018-19 County Fee Schedule 2 • Consider and Approve County Fee Schedule 4. FY2018-19 Tax Rates • Consider and Approve the Ad Valorem Tax Rate • Consider and Approve the Chapel Hill-Carrboro City Schools Special District Tax • Consider and Approve the County Fire District Tax Rates 5. Break 6. Resolution of Intent to Adopt • Consider and Approve the Resolution of Intent to Adopt the FY2018-19 Operating Budget at the Board of County Commissioners Regular Meeting on June 19, 2018 FY2018-19 Operating Budget • Operating Budget Amendment #1 (General Fund) Provide Funds For IFC Capital Campaign – Current Policy on Outside Agency Capital Funding – Request is for $100,000 per Year for Three (3) Years – Funding Source – Other Post Retirement Employment Benefits - $485,000 in Manager’s Recommended Budget – Letter from Inter-Faith Council – Zero Interest Loan Program - Feasible Chair Dorosin said he looked at the Board of County Commissioners’ (BOCC) policy, and he would still support this amendment. He said he believes this would be a reasonable amendment for the Board to make, and fits squarely within the scope of the County to provide for, and this falls within an exception to the policy. Commissioner Price reiterated Chair Dorosin’s comments, and said the Board can revise the policy, if necessary, but she thinks this amendment fits within the policy as currently written. Commissioner Marcoplos said this is an undoubtedly worthy project, and does serve a lot of people in the County. He said the policy is a bare bones statement that says the County will not award capital money, and does not incorporate ways for the Board to engage with projects that want some capital funding from the County. He said this particular project does not need the money right now, and he proposed that the Board revisit this policy some time in the fall, or at the retreat, to talk about setting up a policy that works, and can be understood by all. Commissioner Rich said she fought against this policy, the last time it was discussed, as she wanted to support the Rape Crisis Center in its capital funding; and, at that time, she asked if exceptions could considered, and Gary Donaldson, Chief Financial Officer, said yes. She read an excerpt from previous BOCC minutes, highlighting her desire to find exceptions to this policy, and the BOCC voted against her request at that time. She said all of these agencies are doing important work, and it is unclear to her how the Board can decide to fund one agency over another. Commissioner Rich said she liked the suggestion of discussing this policy further, at a later date. She said she cannot support this amendment, as two similar requests were denied last year, and it seems unfair to now fund this one. Commissioner Jacobs said he agreed with Commissioner Rich and Commissioner Marcoplos, and if the Board agreed to the request, it would be committing a lot of funding up front, without ever inviting other entities to apply, regardless of the merits of IFC’s proposal. He said if the BOCC is going to fund capital projects, there needs to be criteria; and if the funding is above a certain cost, the Board may want to require value engineering. He asked if staff would bring back talking points in the fall. 3 Commissioner McKee said this policy needs more in depth discussion, and he still has concerns about how the Board controls the amount it provides. He endorsed what Commissioner Marcoplos said about bringing this item back in the fall or at the Board retreat. Commissioner Burroughs agreed with all that has been said. She said staff may want to consider over the summer about having non-profits demonstrate that owning is better than renting. She asked what would happen if the non-profit were to sell a building, in relation to the amount of money invested by the County. She said she remembered the past discussion, and the Board must be fair. Commissioner Price said she would like to consider partnerships between the County and non-profits. She said she wanted to support this in order to begin the conversation. Commissioner Jacobs said if the Board is going to consider funding a kitchen, then it is important to recall that the County has a policy that a certain percent of the food it serves needs to be locally grown; and this may be one of the strings the County wishes to attach to any funding. Chair Dorosin asked Commissioner Marcoplos and Bonnie Hammersley if they had talked with IFC about the ramifications of the Board not providing an answer this evening. Commissioner Marcoplos said he had not spoken with IFC. Bonnie Hammersley said there is a copy of an email at the Commissioners’ places from Robert Dowling, Community Home Trust Executive Director. She said she spoke with him about funding, as well as the possibility of an interest free loan. She said staff can continue to talk with the IFC about partnering, From: Robert Dowling [mailto:rdowling@communityhometrust.org] Sent: Monday, June 11, 2018 5:31 PM To: Bonnie Hammersley Cc: Jackie Jenks; kevincfoy@protonmail.com Subject: RE: Information Needed Hi Bonnie, First, I want to let you know that we are grateful for your support in trying to identify a way forward. Not every County Manager would have done that. We are also very grateful for Commissioner Dorosin’s willingness to assist IFC. And ideally, if four commissioners will agree, we would love for the County to grant funds to FoodFirst. However if it’s not possible to obtain approval for a grant, a zero-interest loan would be helpful. But as you know Bonnie, a loan does not contribute to the $5.3MM needed to build FoodFirst. A zero-interest loan would be useful if our financial pledges come in more slowly than we expect. It would be even more useful if the County would forgive any amounts outstanding two years after completion of construction. That way, IFC would not be burdened with a repayable loan, even if some pledges are never collected. I hope this is an adequate response for your discussion tomorrow evening. Please let me know if you have questions. Thank you again Bonnie for your support of FoodFirst. Robert Robert Dowling Executive Director Community Home Trust PO Box 2315 4 Chapel Hill, NC 27515 919-967-1545 ext. 307 Commissioner Price asked if the IFC were going to leverage grants next year. Bonnie Hammersley said she and Chair Dorosin met with the leaders of the capital campaign who said the level of funding commitments needed to reach a certain level before they start leveraging grants. Chair Dorosin said there is the option of a zero percent loan, and if the Board were in support of one, it could start with this, and could possibly convert it to grant funding, or a forgivable loan, after further discussion. He said he does not want the Board’s decision to have an adverse effect on the IFC tonight. Commissioner McKee said a forgivable loan is the same as a grant. Chair Dorosin said the Board could put some conditions on it, such as forgiving the loan if IFC fails to raise the additional funding after a certain time period. He said if IFC could raise the money than it would pay back the loan. Commissioner McKee said he is concerned about going down that path, and if the Board is going to provide a grant then that should be done from the get go. He said loans that are potentially forgivable are always forgiven. He said the Board put the policy in effect, and it does not need to do a work around tonight without having further discussion. He said there are too many agencies that would want, and be worthy of, this same treatment. Commissioner Jacobs said he would be more comfortable if staff would bring back some criteria of what the zero interest loans would look like at the next BOCC meeting on 6/19. He said he would be inclined to give IFC one third of what it is asking for. He said the County should not go into this thinking it will waive the amount of the loan, since it makes it psychologically harder for IFC to raise funds. Chair Dorosin said he likes the idea of a matching grant, as opposed to outright cash without conditions. Commissioner Burroughs said she agreed with Commissioner Jacobs about the psychological impact on fundraising when knowing a loan can be potentially forgiven. She said she still supports discussing this topic further in the fall. Commissioner Rich asked if any other local government entities have committed to the IFC campaign. Bonnie Hammersley said the Town of Chapel Hill received a request, which she thinks the Town is honoring, but she will find out. Jackie Jenks, IFC, thanked the Board for even considering this item, and said the IFC is working with Chapel Hill on a potential funding source. Commissioner Rich asked if those funds would be a grant or loan. Jackie Jenks said a grant. Chair Dorosin asked if the Town of Carrboro has made a commitment. Jackie Jenks said IFC has not received a commitment from Carrboro, but the Town has offered to waive some fees and the IFC may share its parking with the Town. Chair Dorosin asked if there was a timeline in place. Jackie Jenks said IFC would like to start construction a year from now, but would need to have all of the funds committed in advance, and the IFC is looking to get the $5.3 million secured soon. She said the IFC has surpassed the 50% mark, which was needed in order to apply for some funding from various foundations. She said a loan will not help IFC reach the $5.3 million required to build, but IFC would consider it as a bridge loan allowing for construction to begin, and repayment to occur in years 2 and 3. She said if pledges are made, but not received, IFC would ask that this portion of the loan be forgiven. 5 Chair Dorosin said there is consensus to review the policy in the fall, and asked if the Board would accept leaving the no interest loan on the table, in order to get more information from staff on the 19th. He said if the Board does not do a loan, then the $100,000 can go to the reserve. Bonnie Hammersley said the Board can park the monies in the social justice fund, which is at $250,000 in the budget. A motion was made by Commissioner Marcoplos, seconded by Commissioner Price to revisit this policy in the fall, and to add the zero interest loan criteria item tentatively for the June 19th meeting. Commissioner Price asked if Commissioner Marcoplos meant to discuss this at a work session in the fall or at the retreat in January 2019. Commissioner Marcoplos said the fall. Commissioner Rich said the loan part sounds too open to her, and asked if the vote could be split into two motions. Chair Dorosin said yes, and the first vote would be to discuss the policy at a work session as early as possible in the fall. VOTE: UNANIMOUS A motion was made by Chair Dorosin, seconded by that the Board will put aside $100,000 in the social justice fund to be earmarked for a zero interest loan with staff bringing back the criteria will work for the repayments and terms on June 19, 2018. Travis Myren said the policy states that staff would negotiate the terms with the applicable outside agency, but staff can bring a general framework. Commissioner Rich asked if this is $100,000 over three years, or $100,000 per year, for three years. Chair Dorosin said he was thinking it would be $100,000 for this year. Bonnie Hammersley said she would assume this would be reviewed each year. Chair Dorosin said to do this for a year, have the policy discussion and then re-visit this at next budget cycle as a loan or something else. Commissioner Rich asked if this is part of the motion. Chair Dorosin said yes. Commissioner Rich said she has questions about possibly forgiving the loan. Chair Dorosin said that is not part of the discussion now. Commissioner Rich said the Board is talking about the loan and voting now, and asked if the Board is committing to making the loan this evening. Commissioner Price said no, not until next week after staff brings back information. Bonnie Hammersley said moving the funds from the social justice fund would be a simple budget amendment, and can be done at any time during the year. Bonnie Hammersley asked if more clarification would be provided on what the Board seeks from staff next week. Chair Dorosin said the Board wants to know the repayment terms, when the repayment starts, the number of payments, etc. Bonnie Hammersley said staff would need to negotiate that with IFC, and she is not sure that can be accomplished by next Thursday. 6 Commissioner Jacobs said the Board would also want default terms. He said the Board may want to put funds into social justice fund until the fall, and invite the other two entities that are running capital campaigns into the discussion to see if they are interested in zero interest loans or grants. Commissioner McKee said in his opinion the Board just voted to revisit this in the fall, but is now trying to do a work around. He said the Board should vote now on an interest free loan or grant, or wait until the fall to do anything at all. He said policies exist for a reason. Commissioner Burroughs asked if the Board can get money out of the Other Post Employment Benefits (OPEB) at anytime. Bonnie Hammersley said no, the funds need to be moved into the social justice fund, if the Board wishes to access them. She said once the funds go in to OPEB, the Board cannot get them back out. Commissioner Burroughs said she appreciates Commissioner McKee’s concerns, but said putting money aside allows the possibility of taking action in the fall. Chair Dorosin said the “work around” is an attempt to incorporate everyone’s comments. Commissioner Burroughs said this is not a work around, but is putting money in a place until the Board decides what it wants to do with the policy in the fall. Commissioner Price agreed with Commissioner Burroughs. Commissioner Marcoplos also agreed. A revised motion was made by Chair Dorosin, seconded by Commissioner Rich, to move the $100,000 to the social justice fund pending review of the policy change in the fall. Commissioner McKee said he will park his reservations until then. Commissioner Jacobs apologized for not paying attention to Commissioner Burroughs’ earlier comments. VOTE: UNANIMOUS Travis Myren resumed the presentation: • Operating Budget Amendment #2 (General Fund) – slide 5 – Agency Informed of Funding Loss After Outside Agency Funding Applications Due – No New Outside Agencies Funded in the Manager’s Recommended Budget – See Letter from Northside Neighborhood Initiative Commissioner Jacobs asked if this is a one-time funding to bridge a gap that was created by another funder. Travis Myren said no, it would be expected to recur to plug a funding reduction. Chair Dorosin said this request would come within the regular outside agency process going forward. Commissioner Jacobs said he is not unsympathetic, and this is a good way to assist. Commissioner Price asked if these funds would come from the outside agency process each year, or just become a line item in the budget. Bonnie Hammersley said the Northside Neighborhood Initiative would need to request it through the outside agency process, which was missed this year due to not knowing about a funding source being pulled. Commissioner Price asked if this situation has ever occurred before. Bonnie Hammersley said staff contacts any currently funded outside agencies, to insure that they do not miss the application process; but the Northside Neighborhood Initiative was not 7 a previously funded organization, and thus were not contacted. She said if the Northside Neighborhood Initiative had applied this year, it would have been considered a new agency, and thus would not have been recommended for funding, as no new agencies received funding in this year’s budget. Commissioner Jacobs said the BOCC previously received a similar request from Habitat for Humanity for funds to secure a matching grant, but that is the only other example he can recall. Commissioner Price said she has some concerns that the BOCC is making exceptions, when this organization not only missed the deadline, but also would not have received funding if it had made the deadline, due to being a new organization. A motion was made by Commissioner Rich, seconded by Commissioner Jacobs to approve the funds of $50,000 to the Northside Neighborhood Initiative to compensate for loss of a major funding source, with the understanding that this will go in to the Outside Agency Funding process in the following years. VOTE: UNANIMOUS Travis Myren resumed the presentation: • Operating Budget Amendment #3 (General Fund) – slide 6 – Current Policy Not Consistent Between the School Districts • Chapel Hill Carrboro City Schools (CHCCS) – 5.5% Unassigned Fund Balance • Orange County Schools (OCS) – 3.0% Unassigned Fund Balance – Allows Orange County Schools to Manage a Greater Level of Uncertainty – See Current Fund Balance Policy – 10/21/08 A motion was made by Commissioner Burroughs, seconded by Commissioner Price to approve the increase in the OCS fund balance reserve level from 3% to 5.5%. VOTE: UNANIMOUS Travis Myren resumed the presentation: • Operating Budget Amendment #4 (General Fund) – Funds Awarded Using a Grant Application Process for New and Existing Community Gardens. – Advisory Council to Manage the Approval Process – Cooperative Extension and Orange County Master Gardeners Will Provide Guidance to Grantees as Needed – Applications in the Fall; Approval in the Winter. A motion was made by Commissioner Price, seconded Commissioner Marcoplos by to approve funds of $5000 to the Cooperative Extension appropriation to create two community gardens. Commissioner Jacobs said if the BOCC funds projects that give credit to funders, then these projects should give credit to Orange County government. VOTE: UNANIMOUS 8 Travis Myren resumed the presentation: • Operating Budget Amendment #5 (General Fund) – Work with Community Organizers and Professional Race Equity Facilitators – Increase Access and Inclusion on the Food Council’s Workgroups – Develop a Method for Tracking Equity in the Food Council’s Action Plan Commissioner Rich said the study is already underway, and the Jackson Center is helping with the listening sessions. She said there are more people to listen to than initially thought, and thus the expenses are higher. A motion was made by Commissioner Rich, seconded Commissioner Jacobs to provide $4000 to the Orange County Food Council for racial equity study and implementation. VOTE: UNANIMOUS Travis Myren resumed the presentation: • Operating Budget Amendment #6 (General Fund) – Amendment Fully Funds Requests • $3,000 Increase Requested by Chapel Hill-Carrboro Meals on Wheels – Total Grant Request - $18,000 • $21,000 Increase Requested by Orange Congregations in Missions (OCIM) – Total Grant Request - $92,415 – Manager Recommendations Based on Funding Formula • $900 Increase Recommended for Meals on Wheels • $6,300 Increase Recommended for OCIM • FY2018-19 Operating Budget Commissioner Price said she contacted OCIM, who reported that these funds would specifically cover meals, and not other programming. She said she was unable to reach the Meals on Wheels program, but assumes the funds would go directly to food, as this is mostly a volunteer run program. Commissioner Rich asked if these initial requests were part of the outside agency process. Bonnie Hammersley said yes. Commissioner Rich said changing the funding amount would again be going against the established process. Commissioner Price asked if these funds would come out of OPEB. Travis Myren said yes, but these agencies did go through the funding formula during the Outside Agency process, and a certain amount was recommended. Commissioner Rich asked if there would be any way to prevent the BOCC from increasing funds for any and all agencies, thus ignoring all budgetary recommendations. Travis Myren said the BOCC can choose to do as it pleases, and the application process was put in place to promote some consistency from year to year. Commissioner McKee said he would have reservations about this, if it were not for the fact that the request goes directly to provide food for hungry residents. Commissioner Marcoplos said it is important to make sure that County processes are consistent, understood by the public, and those who participate in the process can count on 9 their input being properly utilized. He said this request looks like a drifting back in to the old horse-trading for amendments, and he thinks the BOCC should honor and protect the processes. Commissioner Price said she made this request because these organizations put food on the tables and shelves. She said funding at the federal level is in question for many families, and additional resources are needed. She said she respects the process, but the BOCC has made changes to its processes many times. She said the Food Council position, just approved by the BOCC, went outside of a traditional continuation budget. She said if the County can afford to pay for the coordination of agencies and farmers, than the County can afford to provide food for people. Commissioner Rich said this is two different issues; the Food Council does not provide food, and these agencies are different. She said the Food Council is an inside agency, and these are outside agencies, with two different funding streams. Commissioner Jacobs said the BOCC is being intellectually inconsistent, and just took a stand to stick with a policy until it can be reviewed, and now is considering going against the policy. He said if the BOCC is going to change the policy then it should talk about it in the fall. Commissioner Price said she is talking about getting food to people who need it today, and it is heartbreaking to see residents with empty stomachs. She said the BOCC just made an exception for the Northside Neighborhood Initiative mere minutes ago, and thinks this is a reasonable request. Chair Dorosin said he sees both sides of the argument, but does find it ironic that the BOCC took a stand to have a policy and is now questioning it; however, there is money in the social justice fund, which could be used for this. He said it seems disingenuous to stand by a policy and refuse “work arounds” in one instance, and then do that very thing in the next instance. He said food is a priority issue, and should be at the forefront of future discussions, and the social justice fund is for needs such as these. Commissioner Burroughs concurred with Chair Dorosin. She said she would support ear marking funds in the social justice fund, and having a more detailed discussion with input from the Department of Social Services, in the future. Commissioner Marcoplos said he does not think the BOCC should revisit this process in the same way as it revisiting the capital funding policy, as he thinks this process works really well. He said the County does need to look seriously at the food and hunger issue in Orange County. Chair Dorosin said the Food Council is having this discussion. Commissioner Price said when she heard that the Food Council is not putting food on the table, she felt moved to make this request as people are in need of food. A motion was made by Commissioner Jacobs, seconded by Commissioner McKee to take $21,800 out of social justice fund to increase the Chapel Hill Carrboro Meals on wheels Outside Agency Grant by $2,100 and the Orange Congregations In Missions Outside Agency Grant by $14,700 to fully fund the request the two and to also to increase the Orange County Rural Alliance (OCRA) - (next amendment) Outside Agency Grant by $5000. Commissioner Rich asked if this funding would be for one year only. Chair Dorosin said social justice funds are always a one-time offer. Commissioner Rich said if this is approved, these agencies are getting a higher level of funding this year, and next year the outside agency funding process will start at a higher amount for these agencies. Chair Dorosin said the outside agency funding amount should stay the same. 10 Bonnie Hammersley said yes, the outside agencies funding for these programs would stay the same, and the social justice funds would be a one-time amount, and would not go into the base amount for these agencies. VOTE: UNANIMOUS Travis Myren resumed the presentation: • Operating Budget Amendment #7 (General Fund) – Agency Request • $27,500 Increase Requested from FY2017-18 Budget – Total Grant Request - $40,000 – Manager Recommendation Based on Funding Formula • $8,250 Increase Recommended for Orange County Rural Alliance • FY2018-19 Operating Budget DONE ABOVE One motion for all these below at end of this section: Staff amendments • Operating Budget Amendment #8 (General Fund) – Outside Agency Funds Reduced to Ligo Dogo – Amendment Adds $3,000 to Social Services to Fund Attendance at Ligo Dogo Programs – Funds Will be Available on the Same Basis as Other Youth Enhancement Activities which is Driven by Actual Participation Commissioner Jacobs asked if this item was included in the outside agency fund process. Bonnie Hammersley said this request was moved to the Youth Enhancement fund, in the Department of Social Services (DSS), during the outside agency evaluation process. He said the money will not go directly to Ligo Dogo, but rather will be available if a child, through DSS, chooses to attend classes here, and payment will be provided to Ligo Dogo through the Youth Enhancement fund. Travis Myren resumed the presentation: • Operating Budget Amendment #9 (General Fund) – Sheriff’s Office Funded Electronic Monitoring Equipment Pilot Project for Five (5) Units in FY2017-18 – Used in Pretrial Release Program to Offer Higher Level of Supervision – Target Population • Indigent, Not Able to Post Bond • Not Able to Receive Bond Reduction After One (1) Week • Higher Risk Level Based on Risk Assessment Tool • Operating Budget Amendment #10 (General Fund) – Offers Advisory Board Members Opportunity to Attend Racial Equity Training • Operating Budget Amendment #11 (General Fund) – Sheriff’s Request to Reallocate Temporary Employee Funds to Increase the Hours of an Existing Position 11 • Operating Budget Amendment #12 (General Fund) – Diabetes Self Management Education and Medical Nutrition Therapy – Target Population – Residents Unable to Pay the $20 Fee Required by the State – Grant is for Three (3) Years; Funds will be Accepted Annually • FY2018-19 Operating Budget • Operating Budget Amendment #13 (General Fund) – Lease Program is Designed to be a Five Year Phase-In - $25,000 Added Each Year as Budget Conditions Allow – Recommended Leases for Administrative Vehicles A motion was made by Commissioner Burroughs, seconded by Commissioner Rich to approve Amendments 8-13 above. VOTE: UNANIMOUS Commissioner Price asked if the Northside Neighborhood Initiative funding need could be wrapped into the County’s affordable housing program. Bonnie Hammersley said staff will work with the Initiative going forward, and some affordable housing needs become line items, while others do not. Travis Myren resumed the presentation: FY2018-19 Operating Budget – Other funds (PURPLE SHEET) • Operating Budget Amendment #1 (Special Revenue Fund) – Pilot Program for County Park and Trail Patrol by Sheriff’s Office – Funded Using Special Revenue Fund – Transfer from Sheriff’s Office Drug Forfeiture Funds to Sheriff’s Office General Fund – Current Balance of Drug Forfeiture Fund - $799,600 Commissioner Jacobs said this amendment would allow the Sheriff to have a pilot program to address security issues on trails and in parks. Commissioner Rich asked if this will become a program, and if there will be some reporting back to the BOCC regarding success or additional needs. Commissioner Jacobs said he would like to see this as a program throughout he County, but that is up to the Sheriff. He said it is reasonable for the BOCC to request a report back from the Sheriff after the pilot has been in place for a period of time. A motion was made by Commissioner Jacobs, seconded by Commissioner Rich to approve this request for $25,000 for the Pilot Program for County Park and Trail Patrol by Sheriff’s Office. VOTE: UNANIMOUS Travis Myren resumed the presented: FY2018-19 Operating Budget • Approve Recommended School Funding- slide 18 A motion was made by Commissioner McKee, seconded by Commissioner Price to approve recommended school funding of $109,141,519.00. 12 VOTE: UNANIMOUS FY2018-23 Capital Investment Plan • CIP Amendment #1 – Update Allocation of School Capital Funding Based on Average Daily Membership Approve Recommended School Funding – Student Enrollment Change Between Introduction of the Capital Investment Plan and the Operating Budget – Average Daily Membership Percentages – Allocation Between Districts Changed by $16,500 Over the Five (5) Year Time Horizon of the CIP A motion was made by Commissioner Burroughs, seconded by Commissioner McKee to approve the CIP Amendment #1 - Update Allocation of School Capital Funding Based on Average Daily Membership Approve Recommended School Funding. VOTE: UNANIMOUS ALTERNATIVE AMENDMENTS: One or the other for the number of beds at the proposed detention center. FY2018-23 Capital Investment Plan – PEACH PAGE • CIP Amendment #2 – Integrated Northern County Campus Development Plan Handouts 2 and 3 white sheet – Total Integrated Northern Campus Project - $28,095,831 – Reallocation of Project Funds - No New Cost to the CIP – FY2018-23 Capital Investment Plan OR • CIP Amendment #3 – Detention Center Capacity – Specify Detention Center Initial Capacity of 144 Beds – FY2018-23 Capital Investment Plan Chair Dorosin said he thought staff did not need to pick a jail capacity number at this time, and asked if this was correct. Bonnie Hammersley said that is correct, and the capacity range provided by the BOCC, would allow the conceptual plan to go forward. She said a decision would need to be made during the schematic plan. Commissioner McKee asked if changing the numbers would eventually impact the cost. Bonnie Hammersley said the conceptual design would offer two options from which to choose, and a decision would be made about an exact capacity number in order to move into the schematic phase. Travis Myren said for every 8 beds that are removed from the design, $200,000 are saved. Commissioner Marcoplos asked if 144 or 136 beds is the upper number. Commissioner Burroughs said she is comfortable with the 144 beds. Commissioner McKee said he listened to last week’s meeting, and heard that members could accommodate 136, but wanted 144. He said he would have strongly advocated for 144 beds if he had been present at the meeting. 13 Chair Dorosin said he is in favor of 120, and will not support the 144 inmate limit. Commissioner Rich said she will support amendment 3 at 144 beds. Commissioner McKee said he has always been supportive of 144 beds. Commissioner Jacobs said last week, that he wanted to wait until Commissioner McKee was present to discuss this, and to have a recommendation from the Sheriff and the Manager. He said the Sheriff called him the next day, and is not in favor of the lower number. He said if the majority of the BOCC wants to go with 144, then he will support the majority, the Sheriff, and the Manager. A motion was made by Commissioner McKee, seconded by Commissioner Marcoplos to support and approve CIP Amendment #3- Specify Detention Center Initial Capacity of 144 Beds. VOTE: Ayes, 5 (Commissioner McKee, Commissioner Rich, Commissioner Jacobs, Commissioner Marcoplos, Commissioner Burroughs); Nays, 2 (Chair Dorosin and Commissioner Price) FY2018-23 Capital Investment Plan • Accept FY2018-23 Capital Investment Plan and Approve Capital Funding for FY2018- 19 • See Revised Attachment A A motion was made by Commissioner Rich, seconded by Commissioner Jacobs to approve the FY 2018-19 Capital Investment Plan and Approve Capital Funding for 2018-19 (see attachment A). VOTE: UNANIMOUS FY2018-23 Capital Investment Plan • Approve FY2018-19 County Fee Schedule as Recommended by the County Manager – page 506-561 – Remove Library Notary Fee - $5.00 – Add Re-Inspection Fee in Planning Charged When a Project is Non-Compliant and Re-Inspection is Required  Residential Re-Inspection Fee - $50.00  Non-Residential Re-Inspection Fee - $150.00 – Increase Advertising Fee for Public Hearings from $800 to $1,000 Commissioner Rich asked if clarification could be provided about the library notary fee. Travis Myren said the library proposed to charge a new fee, but then learned that it was not allowed to do so. Commissioner Price asked if there is currently no fee for reinspection. Travis Myren said that is correct. Commissioner Price asked if other counties charge a fee. Travis Myren said yes. Commissioner Marcoplos clarified that a resident can go to the library and have something notarized. Travis Myren said yes. Chair Dorosin asked if the developer pays for the advertising fee. Travis Myren said yes. 14 A motion was made by Commissioner Rich, seconded by Commissioner Burroughs to approve the recommended County Fee Schedule. VOTE: UNANIMOUS A motion was made by Commissioner Jacobs, seconded by Commissioner McKee to take the remaining OPEB funds of $280,000 and apply to reduce tax rate. Chair Dorosin referred to the slide about the County tax rate, and asked if the increase could be clarified. Travis Myren said 1.42. Commissioner Jacobs said he is suggesting applying the remaining OPEB funds to reduce the percentage as much as possible. He said the $280,000 in OPEB accounts for $100,000 that the BOCC just moved to the social justice fund. Bonnie Hammersley said this money is one-time money, and so next year the same tax rate increase would still be required. Chair Dorosin said the motion is to take the money out of OPEB, leave it in the general fund, and reduce the tax rate by a small amount. Commissioner Marcoplos said it would be a very small reduction. Commissioner Jacobs said it is a gesture. Commissioner McKee said this is symbolic. Commissioner Price asked if the money could be used in other ways, if the BOCC votes against this motion. Bonnie Hammersley said if the BOCC does not vote in favor of this motion, the funds would go into OPEB, which then goes into a trust and cannot be touched. She said she typically recommends roughly $250,000 be put into OPEB annually. Travis Myren said the reduction would be approximately 0.15 cents. Commissioner Burroughs asked Bonnie Hammersley if she could explain why this is the responsible thing to do. Bonnie Hammersley said OPEB funding is monitored by rating agencies, and Orange County is one of two counties in the State that has money put towards its OPEB funding. She said it is a pretty significant liability, and it was a GASB rule instituted around the time of the Enron disaster. She said it is a somewhat questionable use of funds because there are other significant needs, and OPEB funds take care of County employees’ retirement. She said either option for using this money is responsible, and she defers to the will of the Board. Commissioner McKee said he is full of contradictions tonight, and he has been vocally adamant about funding OPEB in the past, and will likely continue to feel that way in the future; however, he knows there will tax increases due to the bond, and while the amount of this potential reduction is insignificant, it is a gesture of goodwill towards the residents. Commissioner Marcoplos clarified it is a reduction of 0.15 of a cent. Travis Myren said the tax rate would go down to 85.04. Chair Dorosin said the rate increase would go down to 1.27 Commissioner Marcoplos said the tax for a $200,000 home would be reduced by $3.00. Commissioner Jacobs said OPEB is one of the more ridiculous acronyms that has ever been created. He said no one knows what it is. Commissioner Marcoplos said the Board has moved $100,000 into the social justice fund for a potential loan, and has $250,000 unallocated in social justice fund. Travis Myren said minus two food amendments. Commissioner Marcoplos asked if it would be wise to put some of the OPEB earmarked funds into the social justice funds to be available to tackle the issues of hunger in the County. 15 Commissioner Jacobs said there is an undesignated fund balance, and the Board can come back in the fall and discuss this. He said the Family Success Alliance is in place and is succeeding, and the Board may wish to support this further, but he thinks there should be a well thought out plan. Commissioner Burroughs concurred. Commissioner Marcoplos asked if the staggered tax rate costs more over 5 years than doing 5 now. Travis Myren said no, it is a lower total. He said the Board could do roughly 5 cents now, or implemented over time it gets to almost 8 cents. Commissioner Marcoplos said over the long haul, if there was a 5% increase now, people would be paying less taxes. Travis Myren said the overall rate would be lower. Commissioner Marcoplos said the overall rate would be 3 cents lower, while the County would still derive the same amount of money from the tax. Travis Myren said yes, and that assumes that the County has to do all the incremental increases over time. He said one of the justifications for the phase-in approach is that the County will learn more about the economy in the coming years, and can adjust the increases accordingly. He said the increases are not set in stone. Commissioner Marcoplos said it seems that if the increase was a bit higher this year, and there was less phasing on overall, it would save the residents more than $3. He said that money could be put into the debt fund, and that would keep taxes down in the future, while still giving the County space to react to economic conditions. Commissioner Burroughs said that is a great idea and they both lost that battle a while back. Chair Dorosin said he appreciated Commissioner Marcoplos’ comments, but the reality is that a 4.5 or 5-cent tax increase hits people on the margins much harder. He said there is a trade off between the short-term and long-term costs. Commissioner Marcoplos said that is why he called it a hybrid approach. He said a 5- cent increase would be shocking to the system; but maybe raise the taxes a little bit more than planned in order to save people money in the future. Chair Dorosin said there is a motion on the floor to put $280,000 from OPEB back in to the general fund, and the Board should vote on this first. VOTE: UNANIMOUS A motion was made by Commissioner Marcoplos, seconded by Commissioner Burroughs to set a tax rate of 2.42 cent tax increase the first year, and bank it. Commissioner McKee said he supported the incremental tax increases due to the possibility of an improving economy leading to removing the tax increase all together further down the road. He said he does not believe the County should be in the business of taxing residents in order to bank the money for future use. Commissioner Rich asked Bonnie Hammersley if she could explain how the County would bank the money. Bonnie Hammersley said staff would create a debt service fund. She said the 1.42 increase would provide $2.6 million in revenue, which is what the County needs to pay its debt. She said the additional revenues would go into a debt fund and be used for future debt service. Commissioner Burroughs said the economy may not continue to rise, and then the Board is left to implement a large tax increase, which will be very painful. Commissioner Marcoplos said recessions occur on an average of every 7 years. 16 VOTE: Yeas, 2 (Commissioner Marcoplos and Commissioner Burroughs); Nays, 5 (Chair Dorosin, Commissioner McKee, Commissioner Rich, Commissioner Jacobs, Commissioner Price). MOTION FAILS FY2018-19 Tax Rates • Approve the FY2018-19 County Ad Valorem (Property Tax) Rate at 85.04 Cents per $100 of Value • Approve the FY2018-19 Chapel Hill-Carrboro City Schools Special District Tax Rate at 20.18 Cents per $100 of Value • Approve the FY2018-19 Fire District Tax Rates • FY2018-19 Tax Rates A motion was made by Commissioner Jacobs, seconded by Commissioner Price to approve the three motions above: • Approve the FY2018-19 Chapel Hill-Carrboro City Schools Special District Tax Rate at 20.18 Cents per $100 of Value • Approve the FY2018-19 Fire District Tax Rates • Approve the FY2018-19 County Ad Valorem (Property Tax) Rate at 85.04 Cents per $100 of Value Chair Dorosin said the Board should discuss the special district tax rate, and the possibilities to preserve educational funding while reducing the disparities. He said the per- pupil rate is $4,165, and when the Chapel Hill district tax is added in, the rate increases to $6,085 for CHCCS. He said these dollars make a real difference in the education of each student, and the Board is responsible for every student in the entire County. He said he is not advocating cutting educational funding, but he has concerns about having two school districts that are separate and unequal. Commissioner Jacobs said he agreed, but with the purposely-vindictive General Assembly and its attitude towards Orange County, he feels it is risky to have this discussion now. He would not want the County to suffer backlash, and risk losing what little it has. He said the district tax has been a source of discussion for decades, and it keeps going up. He said the desire for equality is a noble aspiration, and worthy of ongoing discussion. Commissioner Price agreed. Commissioner McKee said the public spoke loudly with its vote on a merger in years past. He said the Board could scale the district tax back slowly, while raising the taxes on the County. Commissioner Jacobs said nobody ever voted on the merger, but did vote on the district tax for the OCS, which was resoundingly defeated, with the school board leading the charge against the tax. VOTE: UNANIMOUS 5. Break (to allow Finance and Administrative Services to formulate Draft Resolution of Intent to Adopt FY2018-19 Operating Budget). The meeting took a break at 8:46 p.m. 17 The meeting resumed at 9:17 p.m. 6. Resolution of Intent to Adopt FY2018-19 Annual Operating Budget • Approval of Resolution of Intent to Adopt FY2018-19 Annual Operating Budget at the Board of County Commissioners Regular Meeting on June 19, 2018 Paul Laughton, Finance and Administrative Services, presented this item and reviewed the Resolution of Intent. Resolution of Intent to Adopt the 2018-19 Orange County Budget The items outlined below summarize decisions that the Board acted upon June 12, 2018 in approving the FY2018-19 Orange County Annual Operating Budget. WHEREAS, the Orange County Board of Commissioners has considered the Orange County FY2018-19 Manager's Recommended Budget; and WHEREAS, the Commissioners have agreed on certain modifications to the Manager's Recommended Budget as presented in the FY2018-19 County Manager’s Recommended Budget on May 1, 2018; NOW THEREFORE BE IT RESOLVED, that the Orange County Board of Commissioners expresses its intent to adopt the FY2018-19 Orange County Budget Ordinance on Tuesday, June 19, 2018, based on the following stipulations: 1) Property Tax Rates a) The ad valorem property tax rate shall be set at 85.04 cents per $100 of assessed valuation. b) The Chapel Hill-Carrboro City Schools District Tax shall be set at 20.18 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 9.68 • Little River 5.92 • New Hope 9.94 • Orange Grove 6.81 18 • 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 wage increase of 2% for all permanent employees hired on or before June 30, 2018, effective July 1, 2018. The maximum salary of each salary range shall also be increased to accommodate the wage adjustment, as well as a change in the salary schedule to recognize $15.00 per hour as the living wage and the minimum salary rate for any non-temporary employee. o Employee Performance Awards – three levels, $500 for proficient performance; $750 for superior performance; or $1,000 for exceptional performance, effective with employee Work Planning and Performance Review (WPPR) dates from July 1, 2018 to June 30, 2019. Employees will receive the pay award at their anniversary date, and the performance award will be added to an employee’s base salary. b. A Living Wage increase from $13.75/hour to $14.25/hour, for temporary employees, effective July 1, 2018, consistent with the Orange County Living Wage formula. c. 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. d. Participation in the North Carolina Health Insurance Pool (NCHIP), which requires changing medical and prescription third party administrators to Blue Cross Blue Shield of North Carolina (BCBSNC) and Prime Therapeutics, a division of BCBSNC, respectively. No increase in employee premium equivalent for medical coverage or increase in dental or vision premiums for employees and pre-65 retirees in FY2018-19. e. Continue the additional eight hours of annual leave to be awarded at an employee’s anniversary date, prorated for part-time employees. f. Continue the six-week paid parental leave policy. g. Discontinue the voluntary furlough program. 3) Modifications to County Manager’s FY2018-19 Recommended Annual Operating Budget The following modifications to the County Manager's Recommended Budget are made: Adjustments to the Manager's Recommended FY2018-19 Budget On June 12, 2018, the Board of County Commissioners approved the following changes to the Manager's Recommended annual operating budget for the 2018-19 fiscal year. The information below summarizes changes made by the Board: 19 Revenues Increase Decrease Manager's Recommended Revenue Budget Receipt of a Community Health Grant Award ($145,914) and creation of a 1.0 FTE Time-Limited Community Outreach Specialist position (No General Fund impact as Grant covers 100% of costs) 145,914 Revenue from the Drug Forfeiture funds 25,000 Increase property tax to 85.04 from 83.77 (280,000) Total Revenue Changes 170,914$ ($280,000) Revised Revenue Budget Expenditures Increase Decrease Manager's Recommended Expenditure Budget Reduce OPEB Contribution (205,000) Provide funds to the social justice fund which can be later considered for Inter- Faith Council's Capital Campaign alongside the agency capital funding policy' -- --- Reduce OPEB 100,000 Provide funds to Northside Neghborhood initiative to compensate for loss of from major funding source ---- Reduce OPEB 50,000 Increase the OCS fund balance reserve level from 3.0% to 5.5% ---- No funding required 0 0 Add $5,000 to the Cooperative Extension appropriation to create two community gardens ---- Reduce OPEB 5,000 Provide $4,000 to the Orange County Food Council for racial equity study and implementation ---- Reduce OPEB 4,000 Earmark social justice funds to Increase the Chapel Hill-Carrboro Meals on Wheels Outside Agency Grant by $2,100 and the Orange Congregations in Missions Outside Agency Grant by $14,700 to fully fund the request ---- NO reduction to OPEB 16,800 (16,800) Earmark social justice funds to Increase the Orange County Rural Alliance (OCRA) Outside Agency Grant by $5,000 ---- NO reduction OPEB 5,000 (5,000) Add funds to the Youth Enhancement fund to cover cost of Ligo Dogo ---- Reduce OPEB 3,000 Add funds to cover cost of the electronic monitoring equipment ---- Reduce OPEB 15,000 Add funds to the Human Rights and Relations appropriation for members of the HRC to attend Racial Equity Training ---- Reduce OPEB 3,000 Convert a current .50 FTE Jail Cook Position to a 1.0 FTE (additional costs covered by reducing available temporary personnel funding in department) ----- Reallocate Sheriff's Office Temporary Staffing Funds, $18,063 18,063 (18,063) Receipt of a Community Health Grant Award ($145,914) and creation of a 1.0 FTE Time-Limited Community Outreach Specialist position (No General Fund impact as Grant covers 100% of costs) 145,914 Add $25,000 for second year of the Administrative Vehicle Lease Program ---- Reduce OPEB 25,000 Rescue vehicle, trailer, and associate equipment to initiate pilot program to patrol County parks and trails --- Drug Forfeiture funds 25,000 Reduce contribution to OPEB (280,000) Total Expenditure Changes $415,777 ($524,863) Revised Expenditure Budget $226,864,039 $226,754,953 $226,864,039 226,754,953 20 4) Changes in County Staff Positions (Increase in FTE Approved). Department Position FTE County Manager Food Council Coordinator - Time-limited (1)1.000 Criminal Justice Resource Family Treatment Court Case Manager 0.500 Health/Dental Dental Hygienist 1.000 Tax Administration EM Billing & Collections Technician II 1.000 Sheriff Jail Cook (increase 0.5 FTE to 1.0 FTE)0.500 Health Time-Limited Community Outreach Specialist (2) 1.000 5.000 (1) Time-Limited contingent on funding from Municipal partners (2) Time-Limited based on continual grant funding Note: All Positions are effective July 1, 2018 GENERAL FUND - APPROVED POSITIONS FOR FY 2018-19 Totals 5) General Fund Appropriations for Local School Districts The following FY 2018-19 General Fund Appropriations for Chapel Hill-Carrboro City Schools and Orange County Schools are approved: a) Current Expense appropriation for local school districts totals $84,957,670 and equates to a per-pupil allocation of $4,165. 1) The Current Expense appropriation to the Chapel Hill-Carrboro City Schools is $51,591,855. 2) The Current Expense appropriation to the Orange County Schools is $33,365,815. b) School Related Debt Service for local school districts totals $17,625,421. c) Additional net County funding for local school districts totals $6,558,428. (1) School Resource Officers and School Health Nurses Contracts - Total appropriation of $3,558,428 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 deferred maintenance funding of $3,000,000 by ADM is allocated to the school systems by the following: Chapel Hill-Carrboro City Schools appropriation is $1,821,900 and Orange County Schools appropriation is $1,178,100. 6) County Fee Schedule To adopt the County Fee Schedule to include changes included in the FY2018-19 Manager’s Recommended Annual Operating Budget and further amended by the Board of County Commissioners on June 12, 2018. 21 A motion was made by Commissioner Burroughs, seconded by Commissioner Price to approve the Resolution of Intent with correction Adopt FY2018-19 Annual Operating Budget at the Board of County Commissioners Regular Meeting on June 19, 2018. VOTE: UNANIMOUS Chair Dorosin said the process was smooth, and offered kudos to all management and finance staff. Closed Session: A motion was made by Commissioner McKee, seconded by Commissioner Price to go into closed session at 9:30 p.m. for the purpose below: “To consider the qualifications, competence, performance, character, fitness, conditions of appointment, or conditions of initial employment of an individual public officer or employee or prospective public officer or employee; or to hear or investigate a complaint, charge, or grievance by or against an individual public officer or employee.” NCGS § 143-318.11(a) (6); VOTE: UNANIMOUS A motion was made by Commissioner Marcoplos seconded by Commissioner Jacobs to reconvene into regular session at 10:20pm. VOTE: UNANIMOUS 14. Adjournment A motion was made by Commissioner Price seconded by Commissioner Marcoplos to adjourn the meeting at 10:20pm. VOTE: UNANIMOUS Mark Dorosin, Chair Donna Baker Clerk to the Board