HomeMy WebLinkAboutItem 8-i - Fiscal Year 2018-19 Budget Amendment #2 1
ORD-2018-031
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: October 16, 2018
Action Agenda
Item No. 8-i
SUBJECT: Fiscal Year 2018-19 Budget Amendment #2
DEPARTMENT: Finance and Administrative Services
ATTACHMENT(S): INFORMATION CONTACT:
Attachment 1. Budget as Amended Paul Laughton, (919) 245-2152
Spreadsheet Gary Donaldson, (919) 245-2453
Attachment 2. Year-To-Date Budget
Summary
Attachment 3. Letter of Request from
Cedar Grove Fire
Department
Attachment 4. Solid Waste Memo on
Current Recycling
Markets
PURPOSE: To approve budget and grant project ordinance amendments for fiscal year 2018-
19.
BACKGROUND:
Animal Services
1. The Animal Services Department has received additional revenue for the following
purposes:
• Receipt and appropriation of Petrie Foundation grant funds in the amount of
$25,000 within the Spay and Neuter Fund, a special revenue fund separate from
the General Fund. These funds will be used toward the County's spaying and
neutering programs.
• Receipt and appropriation of Ubel Greeno grant funds in the amount of $3,232
within the General Fund. These funds will be used toward a musical enrichment
program at the County's Animal Shelter.
This budget amendment provides for the receipt and appropriation of these additional
funds. (Attachment 1, column 1)
2
SOCIAL JUSTICE IMPACT: There is no Orange County Social Justice Goal impact
associated with this item.
Department on Aging
2. The Department on Aging has received notification of the following additional revenue:
• Medicare Improvements for Patients and Providers Act (MIPPA) — receipt of
$3,927 in MIPPA funds from the N.C. Department of Insurance to be used for
temporary staff and supplies related to the Volunteer Connect 55+ Senior Health
Insurance and Information Program (SHIIP).
• Volunteers Income Tax Assistance (VITA) Program — receipt of $2,450 from
the Triangle United Way to pay for seasonal personnel in support of the VITA
program in Orange County.
• Family Caregiver Funds — receipt of additional funds of $15,593 from Triangle J
Council of Governments and the N.C. Division of Aging and Adult Services for the
Family Caregiver Support Program. Funds will go toward respite services.
• Health Promotion Activities — receipt of additional funds of $5,986 from the
Triangle J Area Agency on Aging for evidence-based classes and programs.
• State Senior Center General Purpose Funds — receipt of $21,386 from the N.C.
General Assembly through the Triangle J Area Agency on Aging to be used to
cover temporary personnel and program supplies at the Passmore and Seymour
Senior Centers. $4,000 of these funds will be used in the department's Senior
Citizen Health Promotion Grant project, outside of the General Fund.
• Senior Health Insurance and Information Program (SHIIP) Funds — receipt of
$6,243 in SHIIP funds from the N.C. Department of Insurance to be used for
outreach and program supplies related to the Volunteer Connect 55+ Senior
Health Insurance and Information Program (SHIIP).
This budget amendment provides for the receipt of these additional funds, and amends
the current Senior Citizen Health Promotion Grant Project Ordinance as follows: (See
Attachment 1, column 2)
Senior Citizen Health Promotion Wellness Grant ($4,000) - Project # 294303
Revenues for this project:
Current FY 2018-19 FY 2018-19
FY 2018-19 Amendment Revised
Senior Citizen Wellness Funds $137,043 $4,000 $141,043
Total Project Funding $137,043 $4,000 $141,043
A ppropriated for this project:
Current FY FY 2018-19 FY 2018-19
2018-19 Amendment Revised
Senior Citizen Wellness $137,043 $4,000 $141,043
Total Costs $137,043 $4,000 $141,043
SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goals are
applicable to these items:
• GOAL: CREATE A SAFE COMMUNITY
The reduction of risks from vehicle/traffic accidents, childhood and senior injuries,
gang activity, substance abuse and domestic violence.
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• GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY
The creation and preservation of infrastructure, policies, programs and funding
necessary for residents to provide shelter, food, clothing and medical care for
themselves and their dependents.
Cedar Grove Fire Department
3. The Cedar Grove Fire Department has requested a portion ($60,000) of the district's
Unassigned Fund Balance to be used to help offset the cost of replacing 10 Self-
Contained Breathing Apparatus (SCBA) packs and 30 SCBA bottles. (See Attachment 3)
With this appropriation, approximately $17,100 remains available in the district's
Unassigned Fund Balance. This budget amendment provides for the appropriation of
$60,000 from the district's Unassigned Fund Balance for the above stated purpose. (See
Attachment 1, column 3).
SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is
applicable to this agenda item:
• GOAL: CREATE A SAFE COMMUNITY
The reduction of risks from vehicle/traffic accidents, childhood and senior injuries,
gang activity, substance abuse and domestic violence.
Solid Waste Enterprise Fund
4. The Solid Waste Enterprise Fund is currently experiencing a declining recycling
commodities market compared to recent years, and has experienced unexpected
expenditure increases in recycling processing fees. These already depressed market
conditions, coupled with significant infrastructure damage from Hurricane Florence at two
major shipping ports and paper mills, have resulted in a stockpiling of material at local
material processing facilities with an inability to process additional material.
In addition to these issues, China has limited the amount of material it is willing to accept
through the enactment of the National Sword Policy. China has historically accepted the
majority of the United States exported recyclables. The National Sword Policy is China's
latest, and strictest, regulation on imports of solid waste as raw materials. (See
Attachment 4).
As a result, the cost to have recyclables processed will be significantly more than
budgeted in FY 2018-19. The Commissioner Approved Budget for FY 2018-19 included
$30,000 to cover recycling processing fees, but based on the current issues stated
above, it is estimated that an additional $445,947 will be needed to cover the recycling
processing costs for FY 2018-19. The actual YTD expenditures through September 2018
is $101,917. The Solid Waste Enterprise Fund's Unrestricted reserves at June 30, 2018
is estimated at $6.75 million, so there are sufficient reserves available to cover these
increased costs. This budget amendment provides for the appropriation of $445,947
from available Solid Waste reserves to cover the estimated increased recycling
processing costs. (Attachment 1, column 4)
SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is
applicable to this item:
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• GOAL: ESTABLISH SUSTAINABLE AND EQUITABLE LAND-USE AND
ENVIRONMENTAL POLICIES
The fair treatment and meaningful involvement of people of all races, cultures,
incomes and educational levels with respect to the development and enforcement
of environmental laws, regulations, policies, and decisions. Fair treatment means
that no group of people should bear a disproportionate share of the negative
environmental consequences resulting from industrial, governmental and
commercial operations or policies.
Technical Amendment
5. The Commissioner Approved FY 2018-19 included $50,000 for the second year of
implementing the County's Administrative Vehicle Lease Program. A portion of this
amount includes two (2) vehicles for the Department of Social Services. In an effort to
secure 50% reimbursement for the cost of these leased vehicles, budgeted funds of
$7,974 need to be moved from Asset Management Services to the Department of Social
Services. This technical amendment provides for the reduction of budgeted funds of
$7,974 in Asset Management Services, and an increase of budgeted funds of $7,974 in
the Department of Social Services for the above stated purpose. (See Attachment 1,
column 5)
SOCIAL JUSTICE IMPACT: There is no Orange County Social Justice Goal impact
associated with this item.
FINANCIAL IMPACT: Financial impacts are included in the background information above.
This budget amendment provides for the receipt of these additional funds and increases the FY
2018-19 budget in the General Fund by $54,817, increases the Grant Projects Fund by $4,000;
increases the Spay/Neuter Fund by $25,000, increases the Fire Districts Fund by $60,000, and
increases the Solid Waste Enterprise Fund by $445,947.
RECOMMENDATION(S): The Manager recommends the Board approve budget and grant
project ordinance amendments for Fiscal Year 2018-19.
Attachment 1. Orange County Proposed 2018-19 Budget Amendment
The 2018-19 Orange County Budget Ordinance is amended as follows: 5
#1.Animal Services- #2 Depan rent on Aging #4 Solid Waste
#3 Cedar Grove Fire
receipt ofdation Grant - ceiptofadanonal EnterCapprond-
PelrieFOUndationGmnt ue for various Depadment-BOCC BOCC approved
Encumbrance Budget as Amended within the Spay/Neuter programs within the approved appropriation appropriation of Budget as Amended
Original Budge[ Budget as Amended of$60,000 from the
Carry Forwards Through BOA#1 Fu nd;andraceiptof department;and$4,o00 distit's available $445,947 from the Through BOA#2
$3,232 in Ubel Greeno within the Senior Citizen avail.bl.reserves within
grant funds in the Health Promotion Unassigned Fund the Solid Waste
General Fund Wellness Grant Project Balance Enterprise Fund
General Fund
Revenue
Property Taxes $ 158,561,382 $ $ 158,561,382 $ 158,561,382 $ $ $ $ $ 158,561,382
Sales Taxes $ 24,140,242 $ $ 24,140,242 $ 24,140,242 $ $ $ $ $ 24,140,242
License and Permits $ 313,000 $ $ 313,000 $ 313,000 $ $ $ $ $ 313,000
Intergovernmental $ 17,296,375 $ $ 17,296,375 $ 17,394,701 $ $ 49,135 $ $ $ 17,443,836
Charges for Service $ 12,456,495 $ $ 12,456,495 $ 12,458,995 $ $ $ $ $ 12,458,995
Investment Earnings $ 415,000 $ 415,000 $ 415,000 $ 415,000
Miscellaneous $ 3,114,760 $ 3,114,760 $ 3,174,420 $ 3,232 $ 2,450 $ 3,180,102
Transfers from Other Funds $ 1,637,600 $ 1,637,600 $ 1,637,600 $ 1,637,600
Fund Balance $ 8,820,099 $ 8,820,099 $ 8,820,099 $ 8,820,099
Total General Fund Revenues $ 226,754,953 $ $ 226,754,953 $ 226,915,439 $ 3,232 $ 51,585 $ $ $ 226,970,256
Expenditures
Support Services $ 13,182,883 $ $ 13,182,883 $ 13,182,883 $ $ $ $ $ 13,182,883
General Government $ 22,214,157 $ $ 22,214,157 $ 22,214,157 $ $ $ $ $ 22,214,157
Community Services $ 13,159,487 $ $ 13,159,487 $ 13,200,850 $ 3,232 $ $ $ $ 13,204,082
Human Services $ 39,202,652 $ $ 39,202,652 $ 39,320,703 $ $ 51,585 $ $ $ 39,372,288
Public Safety $ 25,318,777 $ $ 25,318,777 $ 25,306,277 $ $ $ $ $ 25,306,277
Education $ 109,871,663 $ 109,871,663 $ 109,871,663 $ 109,871,663
Transfers Out $ 3,805,334 $ $ 3,805,334 $ 3,818,906 $ 3,818,906
Total General Fund Appropriation $ 226,754,953 $ $ 226,754,953 $ 226,915,439 $ 3,232 $ 51,585 $ $ $ 226,970,256
Solid Waste Fund
Revenues
Sales&Fees $ 8,907,871 $ 8,907,871 $ 8,907,871 $ 8,907,871
Intergovernmental $ 263,000 $ 263,000 $ 263,000 $ 263,000
Miscellaneous $ 194,550 $ 194,550 $ 194,550 $ 194,550
Licenses&Permits $ 130,000 $ 130,000 $ 130,000 $ 130,000
Interest on Investments $ 45,000 $ 45,000 $ 45,000 $ 45,000
From General Fund(Sanitation Opers) $ 500,000 $ 500,000 $ 500,000 $ 500,000
Appropriated Fund Balance $ $ $ $ $ 445,947 $ 445,947
Total Revenues $ 10,040,421 $ $ 10,040,421 $ 10,040,421 $ $ $ $ 445,947 $ 10,486,368
Expenditures
Genera/Services $ 10,040,421 $ $ 10,040,421 $ 10,040,421 $ 445,947 $ 10,486,368
Fire District Funds
Revenues
Property Tax $ 6,057,908 $ 6,057,908 $ 6,057,908 $ 6,057,908
Intergovernmental $ $ $ $
Investment Earnings $ 1,966 $ 1,966 $ 1,966 $ 1,966
Appropriated Fund Balance $ $ $ 60,000 $ 60,000
Total Fire Districts Fund Revenue $ 6,059,874 $ $ 6,059,874 $ 6,059,874 1$ Is $ 60,000 $ $ 6,119,874
Expenditures
Remittance to Fire Districts $ 6,059,874 $ $ 6,059,874 $ 6,059,874 1$ 60,000 1 1$ 6,119,874
t
Attachment 1. Orange County Proposed 2018-19 Budget Amendment
The 2018-19 Orange County Budget Ordinance is amended as follows: 6
#1.Animal Services- #2 Depan rent on Aging #4 Solid Waste
#3 Cedar Grove Fire
receipt ofdation Grant - ceiptofadanonal EnterCapprond-
PelrieFOUndationGmnt ue for various Depadment-BOCC BOCC approved
Encumbrance Budget as Amended within the Spay/Neuter programs within the approved appropriation appropriation of Budget as Amended
Original Budge[ Budget as Amended of$60,000 from the
Carry Forwards Through B0A#1 Fu ntl;andraceiptof department,and$4,000 district's available $445,947 from the Through BOA#2
$3,232 in Ubel Greeno within the Senior Citizen available reserves within
grant funds in the Health Promotion Unassigned Fund
the Solid Waste
General Fund Wellness Grant Project Balance Enterprise Fund
Grant Project Fund
Revenues
Intergovernmental $ 98,426 $ 98,426 $ 222,817 $ 4,000 $ 226,817
Charges for Services $ 65,000 $ 65,000 $ 65,000 $ 65,000
Transfer from General Fund $ 82,043 $ 82,043 $ 82,043 $ 82,043
Miscellaneous $ $ 184 $ 184
Transfer from Other Funds $ $ $
Appropriated Fund Balance $ - $ $ $ $
Total Revenues $ 245,469 $ - $ 245,469 $ 370,044 $ - $ 4,000 $ - $ - $ 374,044
Expenditures
Support Services $ - $ - $ - $ - $ - $ - $ - $ - $
Historic Resources Inventory Grant $ 25,000 $ 25,000 $ 25,000 $ 25,000
Community Services $ 25,000 $ - $ 25,000 $ 25,000 $ - $ - $ - $ - $ 25,000
Senior Citizen Health Pmmotion(Wellness $ 137,043 $ - $ 137,043 $ 137,043 $ 4,000 $ 141,043
Outreach Literacy Time to Read-Library $ 83,426 $ 83,426 $ 58,001 $ 58,001
Human Services $ 220,469 $ - $ 220,469 $ 195,044 $ - $ 4,000 $ - $ - $ 199,044
Local Reentry Council Grant-CJRD $ 150,000 $ 150,000
Public Safety $ - $ $ - $ 150,000 $ - $ - $ - $ - $ 150,000
Total Expenditures $ 245,469 $ - $ 245,469 $ 370,044 $ - $ 4,000 $ - $ - $ 374,044
2
Attachment 2 7
Year-To-Date Budget Summary
Fiscal Year 2018-19
General Fund Budget Summary
Original General Fund Budget $226,754,953 Paul:
increase time-limited Office
Additional Revenue Received Through Assistant II position in Health
Budget Amendment #2 (October 16, 2018) by .17 FTE; increase of.25
Grant Funds $137,750 FTE in Eldercare Manager
Non Grant Funds $77,553 position; moves 1.0 FTE
General Fund - Fund Balance for Anticipated Occupational Therapist and
.75 FTE Human Services
Appropriations (i.e. Encumbrances) $0 C000rdinator from Grant
General Fund - Fund Balance Appropriated to Project Fund to General Fund
Cover Anticipated and Unanticipated (BOA #1)
Expenditures $0
Total Amended General Fund Budget $226,970,256
Dollar Change in 2018-19 Approved General Paul:
Fund Budget $215,303 approved tme-limited 1.0 FTE
% Change in 2018-19 Approved General Fund Reentry Coordinator position
and a time-limited 1.0 FTE
Budget 0.09% Reentry Case Manager with
CJRD; move 1.0 FTE
Authorized Full Time Equivalent Positions Occupational Therapist and
Original Approved General Fund Full Time .75 FTE Human Services
Equivalent Positions 904.270 Coordinator to General Fund
Original Approved Other Funds Full Time (BOA#1); 1.0 FTE
Information Technology
Equivalent Positions 90.850 Analyst position in the
Total Approved Full-Time-Equivalent Sheriff's Office (9/20/18
Positions for Fiscal Year 2018-19 995.120 mtg.)
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Cedar Grove Fire Department
720 Hawkins Rd.
Cedar Grove, NC. 27231
(919) 732-9585
To: Orange County Board of Commissioners
Cedar Grove Fire Department would like to request money from our Unassigned Fund
Balance account. Fire Department is in the process of updating its SCBA(Self Contained
Breathing Apparatus)to the new NFPA Standards and would like to have this money to
help pay for them. Cedar Grove Fire Department applied for a grant through NC Fire
Marshal's Office and all Orange County Department were denied the grant. Fire
Department would like to request $60,000.00 from our Fund Balance and fire department
will pay the remainder.
Quote for the SCBA packs are as followed:
10 SCBA packs= $50,530.00
30 SCBA Bottles= $27,750.00
Total $78,280.00
Thanks for your Time:
Robert Mann
President, Board of Directors
X,4,> e /0,V—��
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ORANGE COUNTY
NORTH CAROLINA
SOLID WASTE MANAGEMENT
1207 Eubanks Road Phone(919)968-2788
PO Box 17177 Fax(919)932-2900
Chapel Hill,North Carolina 27516
Memorandum
To: Bonnie, Hammersley, Orange County Manager
CC: Gary Donaldson, Chief Financial Officer
From: Robert Williams, Orange County Solid Waste Direc
Subject: Recycling Markets - Commodity Markets& Hurricane Florence
Date: September 27, 2018
Background
The County recycles approximately 14,000 tons per year and shares the revenue and costs with a
recycling processor. When recycling commodity markets are robust the County receives revenues,
known as a "rebate",for the material delivered to the recycling processor. However,the corollary of a
down commodity market results in the County having to pay to have material recycled. In the last
eight (8) months, the Solid Waste Management Department (SWMD) has experienced unexpected
expenditure increases in the Recycling Processing account (50352020-682005). In February 2018,
and again in July 2018, the SWMD reported expected budget shortfalls due to falling recycling
commodity market prices. Following Hurricane Florence, in September 2018, SWMD experienced an
additional cost increase related to supply chain issues and infrastructure damage to recycling
processing facilities located throughout the Carolinas.
Table 1 below highlights the past three years of recycling processing fees and rebates; the current
market rate is at a historical low.
$20.00 Table 1: Recyding Rebates and Payments
$10.00
$-
$(10.00)
$(20.00)
$(30.00)
$(40.00)
$(50.00) —
$(60.00) –
$(70.00) —
$(80.00)
Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18
Recycling Market Conditions
Over the last year, recycling commodity values have continued to drop to historically low levels. In
addition, China, has limited the amount of material they are willing to accept through the enactment
of the National Sword Policy. China has historically accepted the majority of the United States
www.orangecountync.Rov/recycling
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exported recyclables. The National Sword is China's latest and strictest regulation on imports of solid
waste as raw materials.
In addition, Hurricane Florence caused significant infrastructure damage at two major North and
South Carolina shipping ports, and paper mills located in Hartsfield, South Carolina owned by the
recycling processor Orange County uses. Thus, mixed paper being processed now at the Raleigh
facility cannot be sent to the flooded paper mills, nor can they be shipped from the ports. If the mills
are not back online within a few weeks, processors may have to temporarily landfill mixed paper.
Furthermore, damage caused by Hurricane Florence has necessitated that our recycling processor
pay additional costs to have the recycling material processed. The material quality and value of all
material throughout the Hurricane Florence affected region, is further degraded because of wet and
muddy conditions, and there are fewer viable options as to where the material can go. This results in
the processor having to slow down the sorting lines to discard wet material which further reduces
productivity and efficiency, and increases costs.
Fiscal Year 2018-2019 Impacts
The original FY1819 budget requested $30,000 to cover recycling processing fees. Based on current
markets, it is estimated, at minimum, $475,947 will be needed to cover the recycling processing
costs for FY1819. Using the current projections, the account is estimated to be $445,947 over
K
budget.
Table 2 below highlights cost incurred to date and monthly projections based upon historical
tonnage. SWMD staff recommends using Solid Waste reserve funds to cover the unexpected
expenditures.
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Table 2:Fiscal Year 2018-2019 Expected Recycling Processing Fees
Jul-18 1107 $ (31.29) 0 $ (35.00) $ (34,635)
Aug-18 1055 $ (32.93) 120 $ (21.00) $ (37,261)
Sep-18 732 $ (32.93) 0 $ - $ (24,105)
Sep-18 132 $ (66.28) 132 $ (24.00) $ (11,930)
Oct-18 543 $ (66.28) 543 $ (26.00) $ (50,066)
Nov-18 548 $ (67.78) 548 $ (30.00) $ (53,571)
Dec-18 478 $ (45.00) 578 $ (30.00) $ (38,879) T
Jan-19 600 $ (45.00) 600 $ (30.00) $ (45,000)
Feb-19 550 $ (40.00) 550 $ (30.00) $ (38,500)
Mar- p;
19 550 $ (40.00) 550 $ (30.00) $ (38,500)
Apr-19 1150 $ (30.00) 0 $ - $ (34,500)
May-
19 1150 $ (30.00) 0 $ - $ (34,500) '
Jun-19 1150 $ (30.00) 0 $ - $ (34,500)
Overall $ (475,947)
Next Steps
The uncertainty of this situation makes it difficult to make both short-term and long-term decisions.
Solid Waste staff is developing a Request for Proposal which would insulate the County from the
fluctuating commodity markets and provide some price stability, but would not address the impacts
of Hurricane Florence and the costs associated with repairing and implementing new infrastructure.
Orange County is also not in the strongest position, at the current time, to enter into contractual
agreements, but there is a financial imperative to stabilize month to month costs.
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SWMD staff has contacted all processors in the region to investigate what recycling options exist.
With current conditions, the only feasible option is for Orange County to split shipments of recyclable
material between two processors, both located in Raleigh. Neither processor, at this time, is able to
handle the full quantity. Both processors will continue to provide the County with information on
processing costs, as the ports and mills are repaired and conditions change. SWMD staff anticipates
recycling costs may lessen in two (2) to six (6) months. Table 2 above assumes the repairs will take
six(6) months, with no adjustment for the already depressed marketplace.
The County is committed to providing high-quality recycling services. That said, there is a tipping
point where the economic costs outweigh the environmental benefit. If the recycling processing fee
continues to exceed $60 per ton, SWMD recommends discussions with the County Manager, BOCC,
SWAG, and community members be had, to determine whether a portion of collected recycling
material should be disposed of in a landfill on a temporary basis, especially if our processors are
landfilling indirectly. Landfilling also incurs a cost, both in the short term and in terms of used landfill
space for future generations, but in the immediate term the rate of financial loss would be lower.
SWMD will continue to monitor and report on recycling processing fees both as it relates to the
commodity markets and the outfall of Hurricane Florence.
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