HomeMy WebLinkAboutMinutes 05-12-2020 Virtual Budget Public Hearing 1
APPROVED 6/2/2020
MINUTES
BOARD OF COMMISSIONERS
VIRTUAL BUDGET PUBLIC HEARING
May 12, 2020
7:00 p.m.
The Orange County Board of Commissioners met for a Virtual Budget Public Hearing Meeting
on Tuesday, May 12, 2020 at 7:00 p.m.
COUNTY COMMISSIONERS PRESENT: Chair Rich and Commissioners Jamezetta Bedford,
Mark Dorosin, Sally Greene, Mark Marcoplos, and Renee Price
COUNTY COMMISSIONERS ABSENT: Commissioner McKee
COUNTY ATTORNEYS PRESENT: John Roberts
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 Rich called the meeting to order at 7:00 p.m.
Due to current public health concerns, the Board of Commissioners conducted a Virtual Budget
Public Hearing on Tuesday, May 12, 2020. Members of the Board of Commissioners
participated in the meeting remotely. Members of the public were able to view and listen to the
meeting via live streaming video at http://www.orangecountync.gov/967/Meeting-Videos and on
Orange County Gov-TV on channels 1301 or 97.6 (Spectrum Cable).
In this new virtual process, there are two methods for public comment.
• Written submittals by email
• Speaking during the virtual meeting
1. Opening Remarks
PUBLIC CHARGE
The Chair acknowledged the public charge.
2. Presentation of County Manager's Recommended FY 20-21 Budget
Bonnie Hammersley made the following PowerPoint presentation:
FY2020-21
COUNTY MANAGER RECOMMENDED BUDGET
May 5, 2020
BUDGET PRIORITIES
❑ Pay Debt Service
❑ Maintain current services/workforce
❑ CHCCS and Orange County School Funding
❑ Honor contract Obligations
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❑ Maintain general fund Reserve Level
o Property Tax Growth: 2.0% = $2,460,550
o Sales Tax Growth: -10.0% = -$2,814,151
o Tax Rate: $0.8679
o General Fund Reserve: 16% = $35.6 million
Revenues and Expenditures
$300.0
$250.0 224.
$211.�213.1 $215.�215.3
$200.0
$150 0 Revenues
Expenditures
$100.0 alance
$50.0 -
7.8 8.2
$0.0
FY2016-17 Actual FY2017-18 Actual FY2018-19 Actual FY2019-20 Original FY2020-21
Budget Recommended
Revenue By Types
$300.0
$250.0 $4.0 $5.5
$200.0
■Transfers
$150.0 Fund Balance
$100.0 ■AII Other Revenue
$50.0
$0.0
FY 19-20 Approved FY 20-21 Recommend
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BUDGET REVNUES
Transfers
Charges for Services 2.3%
Appropriated 5.3%
Fund Balance Intergovernmental
3.5% 7.4
■Property Taxes
Miscellaneous
1.1% ■Sales Tax
Investment ■Licenses and Permits
Earnings
0 2% ■Investment Earnings
Sales Tax
Licenses J 10.0% ■Miscel lane ous
and ■Appropriated Fund Balance
Permits Property Taxes
0.1% 70.2% ■Charges for Services
■Intergovernmental
Transfers
BUDGETED EXPENDITURES
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❑urham Tech Transfers to Other General
(Orange Campus)(3) Funds _Government (1)
0.3% o `� 11.1% Support Services
5.3
Cop riDnW kk !Vment(1)
■SU P%eft Services
Community Services
Education 2-)
46.190 ■Human Services
Public Safety
Human Services Education(2)
17.4
❑urham Tech{Orange Campus}(3)
Transfers to Other Funds
Public Safety
11.7
ASSUMPTIONS
❑ Property Tax Growth: 2.0% = $2,460,550
❑ Sales Tax Growth: -10.0% = -$2,814,151
❑ Tax Rate: $0.8679
❑ General Fund Reserve: 16% = $35.6 million
EDUCATION
Chapel Hill . . Schools
Orange County Schools •
AverageDaily Membership (ADM)
roof)Students (under
Out of District
StudentsCharter
%ADM 59.99% 40.01% 100%
CHCCS - OPERATIONS Request Recommended Recommended
Increase
Allocation 61.19% 59.99% -.15%
Current Expense $58,778,923 $52,561,838 -$122,150
Charter Students $805,595 $723,428 -$12,102
Health & Safety Contracts $2,108,796 $2,108,796 $0
Total $61,693,314
Per Pupil $4,853
OCS - OPERATIONS Requested Recommended Recommended
Increase
Allocation 38.81% 40.01% .15%
Current Expense $33,663,526 $31,687,018 -$45,237
Charter Students $4,135,826 $3,856,830 $187,883
Health & Safety Contracts $1,520,801 $1,520,801 $0
Staff Bonuses $1,027,000 $0 $0
Total $40,347,153 : • -
Per Pupil $4,673
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CHCCS - CAPITAL Requested Recommended Recommended
Increase Increase Appropriation
Recurring Capital ($4,500) ($4,500) $1,799,700
Long Range Capital $42,120 $42,120 $2,455,016
Deferred Maintenance Plan ($4,500) ($4,500) $1,799,700
Supplemental Deferred Maintenance Plan $2,481,258 $2,481,258 $2,481,258
Total $2,514,378 1 $8,535,674
JCS - CAPITAL Requested Recommended Recommended
Increase Increase Appropriation
Recurring Capital $4,500 $4,500 $1,200,300
-ong Range Capital $38,123 $38,123 $1,637,359
Deferred Maintenance Plan $4,500 $4,500 $1,200,300
Supplemental Deferred Maintenance Plan $4,150,000 $4,150,000 $4,150,000
Total $4,197,123 ', $8,187,959
County Appropriation
YEAR % of General Fund
Revenue
Per Pupil $ Increase
FY2016-17 $3,868 $170.50 50.6%
FY2017-18 $3,991 $123 49.7%
FY2018-19 $4,165 $174 50.1%
FY2019-20 $4,352.25 $187.25 49.5%
DURHAM TECHNICAL COMMUNITY COLLEGE
Current Expense $723,256
Durham Tech Promise* $200,000
Capital Outlay $75,000
Funded by Article - . Sales Tax
OUTSIDE
■ Base Budget1 • 1 the following exceptions that received increased
funding:
• Compass Center for • - • Families:• Interfaith • $69,937
• Meals on Chapel• • ••
• Pathways to •- $4
consistent ,351
(new Domestic Violence program for Orange County)
$1,541,974 is .et established by / to allocate
of general fund expenses, not including education, to outside agencies.
FIRE DISTRICTS
FIRE DISTRICT CURRENT TAX RATE REQUESTED TAX RATE RECOMMENDED TAX
INCREASE RATE
Cedar Grove $0.0810 $0.00 $0.0810
Chapel Hill $0.1491 $0.00 $0.1491
Damascus $0.1080 $0.00 $0.1080
Efland $0.0678 $0.00 $0.0678
Eno $0.0968 $0.00 $0.0968
Little River $0.0592 $0.00 $0.0592
New Hope $0.0994 $0.106
Orange Grove $0.0681 $0.00 $0.0681
Orange Rural $0.0915 $0.033 $0.0948
South Orange $0.0968 $0.00 $0.0968
Southern Triangle $0.1080 $0.00 $0.1080
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i
BUDGET STRATEGIES
EXPENDITURE REDUCTION STRATEGIES:
❑ No Wage or Salary Increase for County Employees — ($1,600,000)
❑ Extend Hiring Freeze through FY20-21 — ($1,000,000)
❑ Eliminate Travel and Training funds — ($500,000)
SHORT-TERM EMERGENCY MEASURES:
❑ Transfer from Capital Reserves - $1,000,000
❑ Transfer from Article 46 Sales Tax County Reserves - $525,000
❑ Transfer from Health & Dental Insurance Reserves - $475,000
❑ Transfer from Solid Waste Reserves - $475,000
FUNCTIONAL LEADERSHIP TEAMS
❑ COMMUNITY SERVICES
✓ Maintain Solid Waste Program Fee at $142 per year
❑ HUMAN SERVICES
✓ 3.625 FTE — Partnership to End Homelessness
• HUD Revenue & Reallocations
✓ $25,600 Recurring Capital
Partially Offset by Revenue
❑ PUBLIC SAFETY
✓ Recurring Capital - $205,000 (Transfer from Health & Dental Fund
Reserve)
BUDGET TIMELINE
BUDGET TIMELINE
Recommended Budget Presentation
BUDGET PUBLIC HEARINGS
�
Budget
BUDGET WORK SESSION �
Schools . Outside
SupportFire District, Public Safety,
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Human Services and Community Services
Budget Amendments and Resolution of Intent to Adopt
BOCC REGULAR MEETING �
Operating
Budget Document Availability
❑ Clerk to Board of Commissioners
❑ County Finance & Administrative Services Office
❑ Orange County Website - http://orangecountync.gov
Public Comment
Sherry Appel, Chair, Orange County Historical Museum in Hillsborough, said the re-
opening of the County is critical in bringing more tourism into the area, and she supported the
request of the County Manager because they have a lot of things they are planning to do, and
they want to try and do more under this grant funding.
Cordelia Heaney, Executive Director Compass Center for Women and Families, read the
following comments:
Our focus is on empowering individuals and promoting equal access to opportunity,
regardless of gender or economic status. Our services include career and financial education,
domestic violence crisis and prevention programs, assistance with legal resources, and youth
health programs.
Our self-sufficiency programs offer help with career and financial education as well as
access to legal resources. Our empowerment programs offer health-related education for
middle school students, including bullying and dating violence prevention. We also offer
comprehensive services to adults and children who are experiencing emotional, physical or
sexual abuse in their personal relationships. On the crisis side, they provide domestic violence
counseling.
The support we receive from the Orange County helps us to leverage other funds such
as mental health services, and there is a potential decrease of 30% from their state funding in
their services across the state this next fiscal year. They are considered an essential service
provider and they do rely on this funding from Orange County.
Riley Ruske spoke, but did not have enough time, and thus submitted his full written
comments below:
Orange County Government Officials:
It is impossible to address a 500-page budget effectively in only 3 minutes so I was unable to
complete my comments tonight. Therefore, I am providing the text of my planned comments
below. It is my fervent hope that someone in the Orange County budget process will seriously
consider the impact of having the highest property and sales tax in the state on our citizens and
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work to reduce spending and borrowing, especially on failed and potentially illegal activities.
Here is the text:
BOCC Public Hearing
2020 -2021 Budget Proposal
May 12, 2020
Public Comment
Orange County has the highest property and sales tax rates in the state. The 2020 —2021
operating budget proposal is not an austerity budget—at $273.6 million it continues to increase
spending resulting in a two year increase of$15.0 million dollars. An austerity budget would at
the very least return spending to the 2018 —2019 budget level of$ 258.6 million. This budget
proposal is just more of the same increased spending with some window dressing like the
elimination of employee performance bonuses to make it look like some austerity measures are
being taken. These comments do not even get into the discussion of the capital budget and
borrowings that present great future risk for taxpayers.
One positive change would be to institute an immediate five year freeze on any spending on
light rail and transit programs. After the massive waste of over$150 million dollars by Orange
County government and GoTriangle there is clearly a need to stop these failing programs. This
action should be followed by ending the County association with GoTriangle for more savings
for the taxpayers of Orange County. This should also lead to the elimination of the Article 43
Sales Tax adders.
Another change would be to immediately and permanently cease all funding of programs,
persons, entities and organizations that shield and shelter or aid and abet the massive foreign
criminal enterprise of illegal immigration. Orange County government departments should be
reduced to reflect this change to further reduce cost. Providing tax funds for illegal immigration
quite possibly is illegal under federal and state laws and should never have occurred in the first
place.
Also, the funds allocated to outside agencies should be cut rather than increased. Charity is the
responsibility of private citizens and organizations, not government. The budget of$ 1.54
million dollars should, at the very least, be reduced to one half million dollars. The current
approach of making this a percentage of budget only guarantees increased cost every year with
no specifically identified need.
No where in any of these budget proposals is there any identification of cost reductions through
productivity improvements or the many expensive investments in technology. Costs should be
going down from the benefit of these actions.
All cost reduction actions should be used to reduce the sales and property tax rates—not to
increase government bloat.
While there are many other areas of potential reduction such as cancelling the recent half
million dollar transit study and the half million dollar unnecessary climate tax spending, there is
not enough time allocated for detailed review and analysis by private citizens to point out all
these opportunities. Someone in county government needs to start advocating for the
taxpayers and the thousands of citizens and businesses that have been financially damaged by
the Wuhan virus crisis and the bloated Orange County government.
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Stop gouging our citizen taxpayers -- cut the spending and borrowing!!!!
Kimberly Sanchez, Executive Director, Community Home Trust (CHT), said she is so
appreciative and grateful for the Board of County Commissioners' (BOCC) support, and the
proposed budget that does include funding for the CHT. She said during Covid-19, CHT is still
selling homes. She said CHT has 270 homes in its inventory, and average family income of
CHT homebuyers' is $40,000. She said they are also in the rental market as well, and she
reviewed some of the entities that CHT manages. She said CHT is looking for additional land to
be donated for future development.
Kevin Giff, Community Development Manager for Habitat for Humanity of Orange
County, thanked the Orange County Board of Commissioners for supporting its affordable
housing efforts, and its new ownership and preservation programs. He said Habitat has been
fortunate to be able to continue business during the pandemic. He reviewed Habitat's home
preservation program. He said over half of the owners are over age 65, and the average
homeowner income is $20,000. He said Orange County's funding enables Habitat to support
these homeowners to age in place.
Donna Baker, Clerk to the Board, read the following public comment via email from Kari
Hamel of Chapel Hill:
Dear Board of County Commissioners,
Thank you to the Commissioners and to the county staff for your efforts during this pandemic.
Your accessibility - particularly in responding to questions, concerns, and suggestions -is noted
and appreciated.
My reasons for writing are two-fold: I am grateful to the current and former Commissioners for
your longtime support and encouragement toward all of the wonderful children in our community
through your generous funding of public education. This commitment continues to be critical
today as an increasing number of households (many with children) are reduced to one or zero
income sources due to this public health crisis.
I encourage you to continue to be forward thinking about generously allocating school-related
funds now as well as to lay the necessary foundation for future years. Certainly, continuing
conversations to ensure all CHCCS custodian are in-house so that they (and their loved ones)
realize the prosperity that comes from receiving a living wage and benefits from their public
employer has my full support.
Secondly, it is out of this same appreciation which I raise my good faith concerns that local
school funding provided by the county has been and remains susceptible to unethical behavior
and misuse as the county's oversight and governance structures may be vulnerable to
exploitation. The seeming design to utilize local funding on at least one problematic contract in
CHCCS known about by the public is just one example.
Perhaps, of some relevance, a county commissioner from another jurisdiction recently
referenced the obligation of the elected board to promote orderly and efficient administration of
county affairs.*
To that same end, here in Orange County, what specific ideas do the Commissioners have to
promote the efficient administration of county affairs by ensuring that the generous local
dollars you allot to the schools are reaching the children and the professional human
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workforce, as well as by lowering the risks that funds are unethically accessed, wasted,
and/or misused?
Potential subjects of consideration:
- Consider creating an inspector general or internal auditor role within the county with
responsibilities related to school-related funds;
- Consider forming an audit committee with similar functions as adopted in another North
Carolina county in response to fiscal abuses;** and/or,
- Consider seeking for the school districts to create their own respective annual audit plans and
report on them quarterly to your body.
- Other ideas?
Thank you for considering my questions and remarks.
Regards, Kari Hamel
6718 Creek Wood Drive.
Chapel Hill, NC 27514
Commissioner Dorosin said he is looking to propose amendments to the CIP, and
wanted clarification that any amendments, which may result in cost savings in the CIP, cannot
be transferred as savings in the operating budget. He asked if this is correct.
Bonnie Hammersley answered yes.
Bonnie Hammersley said any amendments that come in would be published on the
website.
4. Adjournment
A motion was made by Commissioner Dorosin, seconded by Commissioner Marcoplos
to adjourn the meeting at 7:40 p.m.
VOTE: UNANIMOUS
Penny Rich, Chair
Donna S. Baker
Clerk to the Board