HomeMy WebLinkAboutAgenda 03-15-22; 8-a - Minutes 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: March 15, 2022
Action Agenda
Item No. 8-a
SUBJECT: Minutes
DEPARTMENT: Board of County Commissioners
ATTACHMENT(S): INFORMATION CONTACT:
Draft Minutes (Under Separate Cover) Laura Jensen, Clerk to the Board, 919-
245-2130
PURPOSE: To correct and/or approve the draft minutes as submitted by the Clerk to the Board
as listed below.
BACKGROUND: In accordance with 153A-42 of the North Carolina General Statutes, the
Governing Board has the legal duty to approve all minutes that are entered into the official
journal of the Board's proceedings.
Attachment 1: February 8, 2022 Virtual Work Session
Attachment 2: February 17, 2022 Virtual Business Meeting
FINANCIAL IMPACT: There is no financial impact associated with this item.
SOCIAL JUSTICE IMPACT: There is no Orange County Social Justice Goal impact associated
with this item.
ENVIRONMENTAL IMPACT: There is no Orange County Environmental Responsibility Goal
impact associated with this item.
RECOMMENDATION(S): The Manager recommends the Board approve minutes as
presented or as amended.
Attachment l
1
1 MINUTES
2 ORANGE COUNTY
3 BOARD OF COMMISSIONERS
4 WORK SESSION
5 February 8, 2022
6 7:00 p.m.
7
8 The Orange County Board of Commissioners met for a Virtual Work Session on Tuesday,
9 February 8, 2022 at 7:00 p.m.
10
11 COUNTY COMMISSIONERS PRESENT: Chair Renee Price, Vice Chair Jamezetta Bedford,
12 and Commissioners Amy Fowler, Sally Greene, Jean Hamilton, Earl McKee and Anna
13 Richards
14 COUNTY COMMISSIONERS ABSENT: None.
15 COUNTY ATTORNEYS PRESENT: John Roberts
16 COUNTY STAFF PRESENT: County Manager Bonnie Hammersley, Deputy County Manager
17 Travis Myren, and Clerk to the Board Laura Jensen. (All other staff members will be identified
18 appropriately below)
19
20 Chair Price called the Board of County Commissioners meeting to order at 7:00 p.m.
21
22 Due to current public health concerns, the Board of Commissioners is conducting a
23 Virtual Work Session on February 8, 2022 utilizing Zoom. Members of the Board of
24 Commissioners will be participating in the meeting remotely. As in prior meetings, members of
25 the public will be able to view and listen to the meeting via live streaming video at
26 orangecountync.gov/967/Meeting-Videos and on Orange County Gov-TV on channels 1301 or
27 97.6 (Spectrum Cable).
28
29 A roll call of the County Commissioners was called; all members were present.
30
31 Chair Price said there is a chance that meetings will still be virtual in March 2022, due to
32 continued health concerns with the pandemic.
33
34 1. Realignment of Regional Workforce Development Boards
35 The Board received information about the possible realignment of regional workforce
36 development boards and the potential impact on Orange County.
37
38 BACKGROUND: Orange County is currently one of five counties in the Regional Partnership
39 Workforce Development Board. The other counties are Alamance, Randolph, Montgomery and
40 Moore. There are currently three Board members appointed by the Board of Commissioners:
41 Katie Loovis (Chapel Hill Chamber of Commerce), Rhonda Sue Holaday (Summit Design and
42 Engineering) and Nancy Coston.
43
44 The purpose of the Workforce Development Board is to help job seekers with employment,
45 education, training and support to succeed in the job market while supplying skilled workers for
46 employers. The Board also provides oversight for the regional allocation of Workforce
47 Innovation and Opportunity Act funds. These funds provide services to all populations and have
48 a particular focus on dislocated workers, youth and other job seekers with specific barriers.
49
50 In 2013, the Orange County Department of Social Services (DSS) won the competitive bid to
51 operate the youth program in Orange County. In 2017, after a competitive bid process, DSS
2
1 became the operator for all the adult and youth programs and NCWorks Center and has
2 continued to provide these services and integrated them with the existing employment and
3 support services at DSS and Skills Development Center. There are other grants and services,
4 such as business support, provided by the regional boards, but these are provided directly by
5 the regional partnership staff.
6
7 Recently, the NCWorks Commission began a study to realign existing workforce boards and will
8 discuss any changes at its upcoming meetings in February and March. The proposal may align
9 boards within the eight existing prosperity zones. The North Central Zone includes Orange
10 County as well as Durham, Wake, Person, Vance, Warren, Franklin, Nash, Edgecombe, Wilson,
11 Johnston, Harnett, Lee and Chatham counties.
12
13 Nancy Coston, Director of Social Services, introduced the item and reviewed information
14 from the background agenda materials. She said there has been discussion over the years for
15 realigning with other counties. She said in 2013, a study said the county should be in alignment
16 with counties in the council of governments.
17 Nancy Coston said the workforce development board does planning for employment
18 needs. She said it can be challenging to find employees that match up with employment needs.
19 Caraina Garris, Human Services Coordinator with the Department of Social Services,
20 made the following presentation. She is the Workforce Innovation and Opportunity Act (WIOA)
21 program coordinator, and the career center manager.
22
23 Slide #1
ORANGE COUNTY
NO]-cTH(,AK<)1.INn
NCWCIRKSCareerCenter- Orange Works Employment&
Europa Center•ChapelHilI Training Canter-Hillsborough
y
s , .
ROGRA
OVERVIEW
24
25
26
3
1 Slide#2
•The Warkforce innovation and Opportunity Act(W IDA)Is a federal
lawdeslgned to help job seekers a ccessemployment,education,
WHAT IS THE training,and support servicesto succeed in the labor market and
i to match employers with the skilled workers they need to
compete in the global economy
PROGRAM? Aligns federal Investments tosupport)ob seekers and employers
Strengthens the governing bodies that establish stater regional,
and Incalworkf irce investment priorities
• Helps ern ployers find workers with the necessaryskllls
i
• Aligns goals and increases accvvrrtability and information forjob
I i seekers and the public
W10A
2
3 Caraina Garris said that at the state level, WIOA establishes unified strategic planning
4 across "core" programs, which include Wagner-Peyser Employment Services and Title I of the
5 Rehabilitation Act programs. She said that the WIOA streamlines membership of business-led,
6 state and local workforce development boards. She said the act emphasizes the role of boards
7 in coordinating and aligning workforce programs and adds funds to develop strategies to meet
8 worker and employer needs. She said the WIOA emphasizes engaging employers across the
9 workforce system to align training with needed skills and match employers with qualified
10 workers. She said the act adds flexibility at the local level to provide incumbent worker training
11 and transitional jobs as allowable activities and promotes work-based training. She said the law
12 also emphasizes training that leads to industry recognized post-secondary credentials. She
13 said the WIOA aligns the performance indicators for core programs and adds new ones related
14 to services for employers and postsecondary credential attainment. She said that performance
15 goals must reflect economic conditions and customer characteristics. She said the act makes
16 data available on training providers' performance outcomes and requires third party evaluations
17 of programs. She said there are performance measures they must try to meet under WIOA
18 guidelines.
19
20
4
1 Slide#3
tY6
WIOAAdult&DislacatadWo"r:These programs are open to
individuals ages 3.8 and up.The Adult Program f<Kuseson serving
"individualswrth Ixarriersto employment",while the Dislocated
Worker Program isdesigneci to assist workers affected bya
PROGRAMS business closure or layoff.
W IOA NextGen Youth P rogra m: This is a comprehensive y n uth
employment program serving eligible teens and young adults,
ages 14-14(Orange County serves ages 16.24),who face barriers
to eduenon,trammgr and employment.Application and
placementtesting are required for program admission.
2
3 Caraina Garris said when individuals become dislocated workers as a result of job loss,
4 mass layoffs, global trade dynamics, or transitions in economic sectors, the Dislocated Worker
5 program provides services to assist them in re-entering the workforce.
6
7 Nancy Coston continued the presentation:
8
9 Slide #4
L row
PROSPERITY
— _
ZONE
REGIONS
rt -
6w- AWL
C�
10
11 Nancy Coston showed a map of the North Carolina prosperity zone regions, which are
12 currently being considered as a basis for realigning Orange County with a regional workforce
13 development board.
14
5
1 Slide#5
North Carolina Workforce Development Boards
NiC
WORKFORCE ■�-
i�
DEVELOPMENT
BOARDS
L�
■rr �ww.r.wwn.wn..•�wn
2
3 Nancy Coston said that Orange County is not currently aligned with any county in the
4 Triangle, which presents a problem.
5
6 Caraina Garris continued the presentation:
7
8 Slide #6
IIIIIIIIIIIIII�
Jab Search Assistance
Health&Wellness Assessments
Personalized Employment Planning
SERVICES Educational Assistance
"PROVIDEDi-1 Durham Tech advising
Resume Development Services
Volunteer&Work Experience opportunities
Transportation Assistance
9
10 Caraina Garris discussed some of the services provided by the WIOA program. She
11 said that those enrolled also have the opportunity to get daycare assistance through the
12 Department of Social Services.
13
14
6
1 Slide#7
EMPLOYER SERVICES
km
3
4 Slide #8
Funded through WICiA
20Q%subsidized employment
The purpose is forjobseekers with little to no work history to gain
WORK skills
EXPERIENCE Employers train to specific job duties
Workman'sCompensation Insurance is covered byWIOA
Support Services are offered as needed
Typiea l ly a WEX i s a period of 3.6 months for one placement
(maximum of Sw hours)
Examples
5
6 Caraina Garris said some enrolled program participants have been placed in Orange
7 County, the Town of Chapel Hill, and local businesses for work experience opportunities.
8
9
7
1 Slide#9
W I DA reimburse s employer up to So%of training wages
(percentage given depends on the size of the business}
forape riod of upto 6 months
ONTHEJ#B Resulting in permanent plarement
TRAINING Gives employee time to learn the necessary skills to perform the
occupation
Gives employera will trained employee and an incentive to
formalize a training plan.
Examples
2
3 Caraina Garris said some of the sites for On-the-Job Training are Carrboro Plumbing,
4 Hope Renovations, Piedmont Health Services, PTA Thrift Store, Summit Design & Engineering,
5 and Thompson Millwork.
6
7 Slide #10
Helps offset the cost of upskllling employees having worked 6
INCUMBENTmonths or more
WORKER Training should lead to a promotion
TRAINING Emplayer must contribute to the cast of tralning(cash payments,
in-kind contributions,etc.)
A
8 O!L;
9
10
8
1 Slide#11
G
C'H A N Federal Bonding Work Opportunity
Tax Credit MOTO
FEDERAL Free individual fidelity bonds
BONDING_ when hiring"at risk"
individuals •Federal taxueditavailable
THLWO■ for hiring individuals faring
s5,00eln coverage forthe significant barnersto
OPPORTUNITY first 6 months employment
TAXCRLDIT Protects employer from acts Can recelve from s:1 zoo to
oftheft,larceny, sg,boo for each eligible
embezzlement,wt. employee.
n ;;,L,,
2
3
4
5 Slide #12
Rapid response assistance
Job applicant screening andqualifled candidate referrals
Valuable and up-to-date labor market Facts and projections,such
as wa ges
Additional d Informatlnn on tax credits forhlring particulargroups of workers
Employer Space to conduct job interviews
Services Help arranging job fa l rs
Openjoborders with local,state,and national access
Accessto a readily available data base far resumes(ncworks.gor)
Ap pre nuceshipsflnternshIps
L
6
7
8
9
1 Slide#13
Department of Social Services(DSS)
Division of Workforce Solutions(DWS)
Durham Tech
Community Services Block Grant(CSBG)
Vocational Rehabilitation
PARTNERS
AR Disability Awareness Council
National Caucusfor the Black Aged(NCBA)
Veteran's AfFa l rs
UNC School of Nursing
Orange Literacy Council
Chambers of commerce
Local Reentry Council(LRQ
2
3
4 Slide #14
>� y
- J
5
6
7 Commissioner Richards asked if any of the programs would be affected by a
8 realignment.
9 Caraina Garris said that services will still be provided, and it will not affect the services.
10 She said each county is required to have a career center.
11 Commissioner Richards asked how many employers go on to hire program participants
12 in the on-the-job training and work experience opportunities.
13 Caraina Garris did not have the percentage, but she said she knew of several that were
14 successful, and some get full-time jobs within a month or two. She said she would get the
15 percentage information to the commissioners.
16 Commissioner Greene asked if there was coordination with homelessness programs.
17 Caraina Garris said they have worked with the Partnership to End Homelessness and
18 that there was some outreach to homeless individuals through Housing and the Department of
19 Social Services. She said they try to reach the homeless population as much as they can. She
20 said that they also work with the SOAR program through DSS.
21 Nancy Coston said that the SOAR program is designed to help those with mental illness
22 and homelessness their disability benefits. She said that is run through DSS. She said that all of
10
1 the services Orange County provides are through a competitive bid. She said that services
2 would continue, even if it is with a different provider because of the competitive process.
3 Commissioner Hamilton asked how many Orange County residents take advantage of
4 the program each year. She asked if the services meet the needs of Orange County residents.
5 She asked what performance measures are required by the federal government. She asked
6 how well the county does with the allocation of funding and if the new alignment would change
7 how the money is split up.
8 Nancy Coston said she would send numbers and performance measures to the
9 commissioners. She said funds follow the county. She said if the county aligns with a different
10 group, the Workforce Innovation and Opportunity Act (WIOA) funds will follow. She said the
11 Department of Commerce will meet with the workforce board in the next few days to explain the
12 study to them. She said after that meeting, questions about realignment, boards, and
13 representation, and funding will hopefully be answered.
14 Commissioner Fowler said it seems like the Chamber of Commerce is in agreement with
15 realignment, but that they aren't sure if prosperity zones are the right option and suggested
16 alignment with how the councils of governments or community colleges are aligned. She asked
17 if the county gets a say in how realignment works.
18 Nancy Coston said there will be a public comment period when the proposal is made
19 public by the Department of Commerce. She said she thinks the Governor will have the final
20 say. She said she is going to ask the Department of Commerce about how the decision is
21 made.
22 Commissioner Fowler asked if the prosperity zones are the only divisions they are
23 considering for now.
24 Nancy Coston said she does not know that she has not been able to get information at
25 this time but hopes to learn more at the meeting on Thursday.
26 Commissioner McKee referred to slide #4 showing the prosperity zones. He said the
27 current map on slide #5 is helter-skelter. He said the prosperity zones make more sense.
28 Chair Price said the prosperity zone proposal brings the county into alignment with the
29 Triangle and many of the other Triangle J Council of Governments and makes sense to her.
30 She asked about the other programs and how they might be affected by realignment. She asked
31 if the prosperity zone realignment causes any risks to how the programs are being run now.
32 Nancy Coston said she would like to get back to the Board on that question after
33 meeting with the Department of Commerce on Thursday. She said she is interested in if the
34 county has a say, and what would it look like.
35 Commissioner Greene said that the Triangle J Council of Governments is made up of 7
36 counties and that seems like a middle ground between the two alternative realignments. She
37 said that it hits the entire Triangle, but not farther northeastern counties. She hopes they will
38 give that alignment consideration.
39 Commissioner McKee asked if there has been discussion of any other realignment
40 configuration.
41 Nancy Coston said she did not know.
42 Commissioner McKee said he was curious how the prosperity zone map was created
43 other than pulling contiguous counties together.
44 Nancy Coston said this map was created by the Department of Commerce for another
45 purpose. She said she would ask them at their meeting about how the model was developed.
46 Chair Price said that she has heard conversation in other groups, like Transportation
47 circles, about bringing Nash, Johnston, and Granville counites in since they are growing and
48 becoming bedroom communities for the Wake, Orange, and Durham counties. She said there is
49 some logic to the prosperity zone map.
50 Nancy Coston said that she would send more information to the Board after the meeting
51 with the Department of Commerce.
11
1
2
3 2. Efland Area Water and Sewer Presentation with Status Report on Interstate Properties
4 in the Efland Area and Possibilities for Development/Economic Development
5
6 The Board received information on the existing land use pattern and supporting public
7 infrastructure agreements, plans and capacities in the Efland/Buckhorn/Mebane interstate
8 corridor; and received an update on the status of economic development activity for this area.
9
10 BACKGROUND: Efland Area Infrastructure and Agreements
11
12 Orange County has had a land use map for this general area since 1981 since the importance
13 of the interstate proximity was acknowledged (both 1-85 and eventually 1-40 extension through
14 Orange County). A 2,000-acre area was originally designated as Commercial Industrial
15 Transition Activity Node (CITAN), but most was later changed to Economic Development (ED)
16 land use in 1994. Along with land use, zoning was changed upfront (AKA pre-zoning) at that
17 time coupled with development standards.
18
19 In the early 2000's, Orange County and the City of Mebane formed an agreement to implement
20 utility construction and maintenance. Concurrently, an Efland-Mebane Small Area Plan was
21 commissioned by the BOCC and Mebane including elected officials, planning boards and
22 community leaders to address the growth potential of the area and an implementation plan.
23 Recommendations were processed over the subsequent years that were included in the major
24 2008 Comprehensive Plan and zoning updates in 2011.
25
26 The largest impetus for economic development was the 2012 referendum for Article 46 which
27 provided monies for utility extensions. A multi-year phased infrastructure plan and Capital
28 Investment Plan (CIP) was developed to slowly create a `backbone' of utilities in a
29 comprehensive manner.
30
31 Agreements were amended with Mebane in 2012 and additional agreements made with the
32 Town of Hillsborough and the City of Durham for other Economic zones.
33
34 The comprehensive public water and sewer system was sized to accommodate land use
35 demands based on existing and possible land use. These engineered utility systems are
36 designed to accommodate early-stage lower flows and upgradable as additional development
37 occurred. So as development such as the Medline Industries facility occurs, along with the
38 needs of the middle school and soccer complex, the nearby sewer lift station can be upgraded
39 as noted in prior CIP's.
40
41 The interstate corridor watershed flows east and west from Buckhorn Road and engineering is
42 designed accordingly. However, due to the Town of Hillsborough disinterest in expanding
43 sewer demand, Orange County engineered a cost-effective solution for Efland residents and
44 economic development opportunities by redirecting all flows to the City of Mebane. This work
45 has been accomplished.
46
47 Please also note the Upper Eno Watershed Map which was jointly approved by the State and
48 Orange County in 1996 that designated this eastern zone as protected, State law and Orange
49 County zoning allows up to 10% of the protected acreage to be 70% impervious cover to
50 accommodate the economic development and residential transition zones.
51
12
1 This higher density option does not allow development in critical watershed designated areas. It
2 is worth noting that Orange County has designated an area six times larger than the state rules
3 of 1996 for critical designation in this watershed.
4
5 In summary, Orange County has invested in the corridor with public utility infrastructure and has
6 a companion land use plan that intensifies growth in focused areas with supportive
7 transportation systems. The jobs and tax base created in ED zones provide opportunities for
8 residents to work in the county (and thereby limiting commuting and pollution) and bolstering tax
9 base to help pay for other land uses that need services.
10
11 See link for Efland Mebane Small Area Plan
12 https://www.oranaecountync.gov/DocumentCenter/View/4196/Efland-Mebane-Small-Area-Plan-
13 PDF
14
15 Efland Area Development/Economic Development
16
17 The Buckhorn Economic Development District continues to show success in business recruiting
18 and increased interest by investors to spur new light manufacturing, distribution and commercial
19 operations. This trend is expected to continue in the future in response to several Article 46-
20 funded water/sewer projects that have now been completed by the County, through active
21 marketing to prospective businesses, and as a result of strong interest by industrial and
22 commercial developers seeking to identify properties in Orange County. For example, in recent
23 years the Buckhorn Economic Development District has attracted in excess of $365 million
24 dollars in new taxable investment, more than 975 full-time new jobs to be created, and over 1.9
25 million square feet of new construction to be added. This activity is represented by the
26 companies Morinaga, ABB, Medline Industries, Thermo-Fisher Scientific, and Piedmont
27 Metalworks. All of these companies are creating full-time jobs with health care and related
28 employment benefits, and at salaries that are well above the Orange County living wage. ABB is
29 Orange County's single largest private employer and is currently seeking applicants to fill 400
30 new manufacturing positions that will average over$71,000 per year in salary.
31
32 The attached map entitled "Hillsborough EDD & Buckhorn EDD — Large Sites" shows the
33 location of four approved and/or in-process spec developer business parks located in the
34 Hillsborough and Buckhorn Economic Development Districts (EDDs). Each of these four
35 locations represent excellent potential for the County to attract new advanced manufacturing,
36 distribution, research and related commercial development by tenants of the same caliber as
37 companies such as Thermo-Fisher Scientific. To illustrate, the Research Triangle Logistics Park
38 in the Hillsborough EDD has been approved for up to 2.4 million square feet of development on
39 160 acres at an Interstate 40/Old NC 86 exit. Second, the Ohio-based industrial developer Al.
40 Neyer has now established two new business parks (Buckhorn Industrial Park and Mebane
41 Business Centre) located along Buckhorn Road, and with total development potential of up to
42 1.6 million square feet on 167 acres. Both of these parks were annexed and rezoned into the
43 Mebane city limits. Thermo Fisher Scientific is located here, with Medline Industries located
44 adjacent. And in Efland, the Minnesota-based developer Oppidian is currently pursuing site
45 plan approval with Orange County for authorization to build up to 918,000 square feet on
46 approximately 100 acres.
47
48 The Buckhorn EDD has several other large acreage tracks, as identified in red outline on the
49 attached "Hillsborough EDD & Buckhorn EDD — Large Sites" map. These parcels have
50 excellent development potential, existing utilities in place, immediate interstate access, and all
13
1 are currently receiving review by a variety of well-funded investor prospects that are talking with
2 landowners.
3
4 This entire Hillsborough EDD/Buckhorn EDD region received a technical review in February
5 2018 in a comprehensive SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis
6 performed by the consultant firm Timmons Engineering. The executive summary of the SWOT
7 analysis (see link below) affirmed these areas' good marketability, development potential and
8 overall strengths that can further diversify Orange County's local economy. The SWOT Analysis
9 Final Report can be located here:
10 https://www.orangecountync.gov/DocumentCenter/View/l7070/SWOT-Analysis-Overview-of-
11 the-Final-Report-PDF
12
13 Craig Benedict, Director of Planning and Inspections, made the following presentation:
14
15 Slide #1
ORANGE COUNTY
NORTH CuAROLINA
Efland Area Water and Sewer
and Possibilities for Economic
Development
BOCC Virtual Work Session
February 8, 2022
16
17
18 Slide #2
Efland Water and Sewer Presentation
ORANGE COUNTY
19 ] NORT][-NA
20
21
14
1 Slide #3
Future Lan-d Use - Buckh o rn EDD & Hillsborough E D D
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3 Craig Benedict reviewed the information in the background materials regarding the
4 history of infrastructure in the Efland area.
5
6
15
1 Slide #4
Ora nge GountyiCity of M-eba ne Uti I its+Area Service Agr-eeme nt
u
< F
Ali
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� nd�so-�rt■,or
0 e■.Pump Sr„ft�n
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2
3 Craig Benedict reviewed the existing infrastructure in the Orange County/City of Mebane
4 Utility Area Service Agreement and said there was potential for expanded infrastructure should
5 it be necessary. He said that on the map on slide #4, economic development zones are
6 represented by purple and lavender shading.
7
8
16
1 Slide #5
Watersh ed s 8uckh o rn EDD& H i Ilsboro ugh EDD
P
ti
} �• C v
Haar Creek 1
' J
1 � Lower Eno
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1
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Flaw rook i£le Cane Creek Lpkg: I
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3 Craig Benedict reviewed the information in the background materials regarding state
4 rules for watershed protection versus the higher amount Orange County. He said no EDDs are
5 located in critical watershed areas. He said that the Upper Eno watershed was designated a
6 critical area by Orange County. He said that in the late 1980s the county studied placing a
7 reservoir in the Upper Eno watershed, but that is no longer a consideration.
8 Craig Benedict referred back to slide #4. He said there is additional water and sewer
9 capacity through agreements with Mebane. He said that water and sewer lines built by the
10 county are now Mebane's responsibility to maintain.
11 Commissioner Richards asked for confirmation that the Upper Eno watershed is a
12 hypothetical area, which equates to six times more than what the state requires of the county
13 and is based on a theoretical reservoir that never came to fruition and will never come to be.
14 Craig Benedict said she was correct. He said the county has purchased a lot of
15 properties in that watershed for preservation purposes but there is no opportunity for a future
16 reservoir in that area.
17 Commissioner Richards asked for confirmation that it is county-owned land, designated
18 for preservation. She asked if she is correct that it would not be eligible for any development.
19 Craig Benedict said she was correct.
20 Commissioner Richards asked for confirmation that the West Ten Road sewer system
21 can be upgraded.
22 Craig Benedict said it can be upgraded. He said there is an upgrade planned to put
23 sewer under the interstate. He said that the engineering design pumps one way but, in the
24 future, they can pump to where there is more capacity.
17
1 Commissioner Richards asked what the tax benefit of annexation is to Mebane. She
2 asked if Mebane gets the benefits of jobs and Orange County gets the benefits of taxes. She
3 said she is trying to understand the benefits to Mebane.
4 Craig Benedict said the benefit is property taxes to Orange County and Mebane would
5 also get taxes. He said the potential jobs created are also a benefit to Mebane and Orange
6 County. He said that when properties are annexed, there is less service cost to the county as
7 Mebane would pick up some public services.
8 Commissioner Richards asked if the advantage to the county is that the county does not
9 have to fight the "no development here" people.
10 Craig Benedict said there are a few ways to look at it. He said that when the county put
11 together agreements with the City of Mebane, the city and county tried to align their
12 development standards. He said that they want to be conscious of the impact of development
13 on neighborhoods. He said it is unlikely that all of the areas on the map on slide #4 could be
14 annexed by the City of Mebane.
15 Commissioner Richards asked Craig Benedict to point out the Orange County line with
16 Alamance County on slide #4.
17 Craig Benedict pointed out the county line and discussed some of the major employers
18 along the border with Alamance County.
19 Commissioner McKee said that the tax benefit was mentioned but the sewer and water
20 flow costs go back to Mebane to help pay for their systems. He said that the designation of
21 economic development zones was discussed years ago and that during those discussions,
22 Mebane has always been a willing partner in development conversations. He said that without
23 Mebane's partnerships, none of the industries would be possible.
24 Commissioner Hamilton said that the development can come with a cost to existing
25 residents in the area, and some of the areas have been traditionally African American. She said
26 that some residents cannot afford to get water and sewer, and that Mebane is not interested in
27 annexing them since they cannot afford that. She said the water and sewer is primarily for
28 economic development, but that it leaves some residents behind. She said that she remains
29 concerned about how they are communicated with during this process.
30 Chair Price asked how many residences are still on wells and septic tanks. She said
31 she thought there were funds available to help residents hook on.
32 Craig Benedict said the 2004 agreement had twenty-seven free connections in
33 Buckhorn. He said that covered tap and connection fees. He said he has heard from new
34 residents that are not part of that 2004 agreement but there are twenty-seven taps available that
35 were in existence in 2004. He said if they are low to moderate income then they could work
36 through other departments. He said there is also a community loan fund that is an option.
37 Chair Price said that was the point of going to the community, to find out who wanted to
38 hook on.
39 Craig Benedict said there were two churches wanted to hook on — Mt. Moriah and
40 Hunters Chapel. He said that a grant received in 2005 helped with some of the infrastructure
41 costs. He said there were failing septic systems in the area, and they wanted some assistance.
42 Chair Price said she wanted to follow-up on the topic of community economic
43 development to see who might be interested in hooking on to water and sewer.
44
45 Steve Brantley, Director of Economic Development, continued the presentation:
46
47
18
1 Slide #6
Status Report on Interstate Properties in the
Efland Area and Possibilities for
Development/Economic Development
ORANGE COUNTY
o NOFM I CARMANA
2
3
4 Slide #7
Summary of New & Expanding Industrial Activity
in the Buckhorn Economic Development District
Morinaga America Foods $49 Million 90 100,000 sq_ft
APB $40 Million 400 2007000 sq_ft.
Medline Industries $60 Million 250 1.2 Million sq.ft.
Piedmont Metalworks $4.5 Million 35 40,040 sq.ft.
Thermo Fisher Scientific $192.5 Million 240 375,404 sq.ft.
Total $365 Million 975 1.915.040 sa.I't
• Morinaga curremV employs 215
Medlin Industries expecls tv employ 500AM in 5 years,
A136's growth Is an erpanslen or exlstlng manufacturing opwafiws. ABB Is Orange
Counly's largest prlvate employer.
ORANGE COUNTY
NOWrl I CAROLINA
5
6 Steve Brantley said that this slide shows the county's most recent economic
7 development successes, and that Thermo Fisher Scientific is newest. He said these are
8 examples of the types of businesses that can continue to locate in the economic development
9 districts that have been discussed. He said they pay well above the Orange County living wage
10 to their employees and provide benefits.
11
12
19
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3 Steve Brantley reviewed the current development activity in the Hillsborough EDD and
4 Buckhorn EDD.
5 Steve Brantley said that each week, his office receives 1-3 inquiries for existing office
6 buildings. He said the business parks offer more places for job expansion. He said that the
7 developers are funding site infrastructure and the buildings to lease to tenants—all of this brings
8 jobs to Orange County that would not be coming without this. He said that there are locations
9 where the government owns the land and creates a business park, but Orange County operates
10 with the developer capital. He said that these parks are helping the county because they can
11 have an existing building for a company to move into.
12 Commissioner Hamilton said she is on the Board of Health. She said there is a need for
13 water and sewer hookups because of failing sewer systems. She said it seems like some of the
14 barriers are not just the costs for hooking up but also the ongoing costs of water and sewer plus
15 annexation brings an added tax burden.
16 Commissioner McKee said that residential hookups are going to be a major concern for
17 all of them. He said that the good part is that the major infrastructure is built. He said that the
18 ongoing costs to the homes after they hookup is a major factor. He noted that one of the
19 reasons it was flipped from Hillsborough to Mebane was the cost to the user. He said that the
20 Rogers Road model can be used for costs prototypes for residents.
21 Chair Price said she was glad to have the presentation to give the history of the
22 infrastructure in the area. She said there are some very old neighborhoods in the Efland area.
20
1 She said as the county modernizes, it is important to take care of the people who have lived
2 there for generations.
3 Commissioner Fowler asked if Mebane annexed them, would they have to provide water
4 and sewer. She asked if that was discussed with Orange Water and Sewer Authority (OWASA).
5 Craig Benedict said no, once an area is annexed, it falls out of the Water and Sewer
6 Management Boundary Plan Agreement (WASMBPA) and into the city's jurisdiction.
7 Commissioner Fowler asked if it prevented development since OWASA does not have
8 lines that go out that far.
9 Craig Benedict said the WASMBPA maps were not for primary service but for crisis
10 response. He said that the future land use map was created to show who was responsible for
11 responding to water and sewer crises. He said that if Mebane decides to extend water and
12 sewer to the areas outside of the zones then they do not have to ask OWASA.
13 Chair Price referred to slide #8 and asked if there was any development in area 2.
14 Steve Brantley said that any property that is not in purple or lavender on the map is off
15 limits to him to market.
16 Craig Benedict referred to slide #3 and said that area in question, in green on the map,
17 is an agricultural designation. He referred to an area on the map that is near a resource
18 protection area but could be considered for development if there was a land use change and
19 water and sewer change. He said this is something the commissioners could consider in the
20 future.
21 Chair Price asked what would happen if a private landowner wanted to make the
22 changes rather than the commissioners.
23 Craig Benedict said that would require a land use change and a water and sewer
24 boundary use change. He said if it is a very large parcel, it could also require the involvement of
25 the state.
26 Steve Brantley said that area has a lot of potential for economic development due to
27 utilities and proximity to transportation. He said that it is owned largely by one single landowner.
28 Craig Benedict noted that the critical boundary was tweaked in 2010 and it extended
29 north of the interstate, and they were able to modify the boundary. He said that there is area in
30 blue that includes that change.
31 Commissioner McKee said the companies currently expanding in this area will generate
32 $3 million in property revenue. He said the jobs they are providing give benefits which are life
33 changing. He said the revenue can offset the cost of county services.
34 Commissioner Richards said these EDDs are the result of planning 30-40 years ago.
35 She asked what the plan is for the future. She said she is interested in balanced development
36 that supports safety net programs. She said she is concerned about what is next.
37 Commissioner Bedford referred to slide #8. She said there is an area north of interstate
38 40 that needs water and sewer to be viable for economic development. She wondered if the
39 county should move forward with that project.
40 Craig Benedict said the next project on the list is to begin designing the extension of
41 water and sewer into the area.
42 Commissioner Greene said she agreed with Commissioner Bedford's comments. She
43 asked when the county should have another joint meeting with Mebane. She said properties
44 south of West Ten Road requested annexation and then the county lost control of land use
45 designation. She said she would like to have an agreement with Mebane about what they think
46 about development below West Ten Road. She said that Mebane seems interested in
47 continuing that conversation.
48 Commissioner Hamilton said she would appreciate seeing the return on investment. She
49 said there may be other types of businesses that may bring higher wage jobs or other benefits.
50 She said she would like to know if the county can indicate the types of businesses they are
51 interested in to preserve the quality of life. She said that it is important to protect natural
21
1 resources as well. She said she would like to understand the relative impact of those
2 developments.
3 Steve Brantley said a return-on-investment paper was created by his office in 2021 and
4 he will circulate that to the commissioners. He said it shows how Article 46 funds have been
5 used along with various grants. He said Orange County controls zoning and utility lines, but that
6 the county does not own the land. He said there is a very large infrastructure cost for anyone to
7 buy the property and develop it to try to make something happen. He said that the flea market
8 site of 130 acres, the acquisition cost alone would be 14 million dollars before any infrastructure
9 is added. He said that none of the property is zoned heavy industrial and that the relatively high
10 cost of land and development automatically screens out a low wage company. He said the
11 paper will be updated before he provides it to the commissioners.
12 Chair Price said all of the development currently occurring is happening on Steve
13 Brantley's watch and efforts. She said the tax base has increased, which helps keep property
14 taxes from rising as quickly.
15 Commissioner McKee said decisions the Board makes will affect the next 40 years and
16 how the county develops.
17 Commissioner Fowler asked how ABB is doing recruiting for employees.
18 Steve Brantley said that Orange County has one of the lowest unemployment rates in
19 the state. He said that job competition is extreme. He said Medline is on track to have 250 jobs
20 filled by opening day. He said ABB will hire 400 jobs over time. He said the pandemic affected
21 the timeline for companies to hire and train.
22
23
24 3. Agricultural Preservation Board —Appointments Discussion
25 The Board discussed appointments to the Agricultural Preservation Board.
26
27 BACKGROUND: The Agricultural Preservation Board is charged to promote the economic and
28 cultural importance of agriculture in the county, and to encourage voluntary preservation and
29 protection of farmland for future production.
30
31 The Board of County Commissioners appoints all 15 members, including eight (8) At-Large
32 members, and one (1) member from each of the seven (7) Agricultural Districts in the county.
33
34 The following applicants are recommended for Board consideration:
35
NAME POSITION TYPE OF EXPIRATION
DESCRIPTION APPOINTMENT DATE
TERM
An'ail Taylor At-Large First Full Term 06/30/2024
Elizabeth At-Large First Full Term 06/30/2024
Hooten
Michael Hughes At-Large First Full Term 06/30/2024
36
37
22
1 If the individuals listed above are appointed, the following vacancy remains:
POSITION EXPIRATION VACANCY INFORMATION
DESIGNATION DATE
Cedar Grove 06/30/2023 Vacant since 11/20/2020
Voluntary
Agricultural District
2
3 Tara May introduced the item.
4 Commissioner McKee asked the Board to move the recommended applicants forward.
5 Commissioner Fowler asked about the vacant position. She asked if any existing
6 Agricultural Preservation Board members are eligible for the vacant position.
7 Tara May said she would look into the issue.
8 The Board agreed by consensus on the recommended applicants.
9
10
11 4. Chapel Hill Library Advisory Board —Appointment Discussion
12 The Board discussed an appointment to the Chapel Hill Library Advisory Board.
13
14 BACKGROUND: The Chapel Hill Public Library Advisory Board is responsible for
15 recommending long-term plans, policies, and programs of library service throughout the
16 community. It advises the Chapel Hill Mayor and Council on library matters, develops plans for
17 library facilities, and recommends operating policies of the library.
18
19 The Board of County Commissioners appoints one member to this board.
20
21 The following applicant is recommended by the Chapel Hill Town Council for Board
22 consideration:
23
NAME POSITION TYPE OF EXPIRATION
DESCRIPTION APPOINTMENT DATE
TERM
Alison Smith BOCC Appointee First Full Term 06/30/2024
24
25 If the individual listed above is appointed, no vacancies remain.
26
27 Tara May introduced the item. She said that the practice of getting recommendations
28 from the Town of Chapel Hill for this board will end after this consideration.
29 Chair Price asked if the appointee must reside in Chapel Hill.
30 Tara May responded that the BOCC appointee can be from anywhere in Orange County.
31 Commissioner Fowler said the recommended applicant, Alison Smith, lives in
32 Hillsborough. She asked about the criteria for making a recommendation. She said Virginia
33 Baeckler looked like an interesting candidate.
34 Commissioner Bedford asked if the Board would consider Virginia Baeckler or Samantha
35 Kaplan for the position. She said she was leaning towards Virginia Baeckler due to her
36 experience and the fact that she resides in Hillsborough, giving a different perspective to the
37 Chapel Hill Library Advisory Board.
38 The Board agreed by consensus on Virginia Baeckler.
39
40
23
1 5. Chapel Hill Orange County Visitors Bureau —Appointments Discussion
2 The Board discussed appointments to the Chapel Hill Orange County Visitors Bureau.
3
4 BACKGROUND: The Chapel Hill Orange County Visitors Bureau Advisory Board is charged
5 with developing and coordinating visitor services in Orange County. It also implements
6 marketing programs that will enhance the economic activity and quality of life in the community.
7
8 The Board of County Commissioners appoints all 17 members, with representation from specific
9 entities and fields.
10
11 The following individuals are presented for Board consideration:
12
NAME POSITION TYPE OF EXPIRATION
DESCRIPTION APPOINTMENT DATE
TERM
Karen Stegman Chapel Hill Town First Full Term 12/31/2024
Council
Representative
Damon Seils Carrboro Town Partial Term 12/31/2022
Council
Representative
13
14 If the individuals listed above are appointed, the following vacancy remains:
15
POSITION EXPIRATION VACANCY INFORMATION
DESIGNATION DATE
Orange County 12/31/2024 Vacant since 12/31/2021
Lodging
Association
16
17 Tara May introduced the item.
18 The Board agreed by consensus on the council representatives from the Town of Chapel
19 Hill and the Town of Carrboro as presented.
20 Commissioner Greene suggested Lisa Ganzzermiller for the vacant Orange County
21 Lodging Association position.
22 The Board agreed by consensus on Lisa Ganzzermiller for the vacant Orange County
23 Lodging Association position.
24
25
26 6. Hillsborough Planning Board —Appointment Discussion
27 The Board discussed an appointment to the Hillsborough Planning Board.
28
29 BACKGROUND: The Hillsborough Planning Board acquires and maintains information in order
30 to understand past trends, prepare and amend the comprehensive plan for the development of
31 the area, and prepares and recommends ordinances promoting orderly development.
32
33 The Board of County Commissioners appoints three (3) members residing in the Extraterritorial
34 Jurisdiction (ETJ).
35
36 The following applicant is recommended for Board consideration:
24
1
NAME POSITION TYPE OF EXPIRATION
DESCRIPTION APPOINTMENT DATE
TERM
Saru Salvi Hillsborough ETJ First Full Term 10/31/2024
2
3 If the individual listed above is appointed, no vacancies remain.
4
5 Tara May introduced the item.
6 Chair Price expressed support for the recommended applicant.
7 The Board agreed by consensus on the recommended applicant.
8
9
10 7. Human Relations Commission —Appointments Discussion
11 The Board discussed appointments to the Human Relations Commission.
12
13 BACKGROUND: The Human Relations Commission advises the Board of County
14 Commissioners on solutions to problems in the field of human relationships. It also makes
15 recommendations designed to promote goodwill and harmony among groups in the County
16 irrespective of their race, color, creed, religion, ancestry, national origin, sex, affectional
17 preference, disability, age, marital status or status with regard to public assistance.
18
19 The Board of County Commissioners appoints all twelve (12) members.
20
21 The following persons are recommended for Board consideration:
22
NAME POSITION TYPE OF EXPIRATION
DESCRIPTION APPOINTMENT DATE
TERM
Frances Castillo At-Large Second Full Term 09/30/2024
Shawnee Seese At-Large First Full Term 06/30/2024
Michael Fath At-Large First Full Term 09/30/2024
23
24 If the individuals listed above are appointed, the following vacancies remain:
25
POSITION EXPIRATION VACANCY INFORMATION
DESIGNATION DATE
At-Large 09/30/2022 Vacant since 10/13/2021
Town of Chapel 06/30/2022 Vacant since 01/07/2020
Hill
26
27 Tara May introduced the item. She said the Human Relations Commissions requested
28 more time to solicit applicants for the vacant positions.
29 Commissioner McKee said he was in support of the recommended applicants.
30 The Board agreed by consensus on the recommended applicants.
31
32
33
25
1 8. Orange County Parks and Recreation Council —Appointment Discussion
2 The Board discussed an appointment to the Orange County Parks and Recreation Council.
3
4 BACKGROUND: The Orange County Parks and Recreation Council consults with and advises
5 the Department of Environment, Agriculture, Parks and Recreation, and the Board of County
6 Commissioners on matters affecting parks planning, development and operation; recreation
7 facilities, policies and programs; and public trails and open space.
8
9 The Board of County Commissioners appoints all twelve (12) members, with representatives
10 from each of the county's townships and municipalities.
11
12 The following applicant is recommended for Board consideration:
13
NAME POSITION TYPE OF EXPIRATION
DESCRIPTION APPOINTMENT DATE
TERM
Jessie L. Chapel Hill Township Partial Term 03/31/2023
Birckhead
14
15 If the individual listed above is appointed, no vacancies remain.
16
17 Tara May introduced the item.
18 Commissioner Bedford noted that the recommended applicant lives outside of the
19 Chapel Hill Township.
20 The Board agreed by consensus to wait to fill this position while Tara May researches
21 the issue.
22
23
24 9. Orange County Planning Board —Appointments Discussion
25 The Board discussed appointments to the Orange County Planning Board.
26
27 BACKGROUND: The Orange County Planning Board studies Orange County and surrounding
28 areas to determine objectives in the development of the County, prepares and recommends
29 plans to achieve that development, and reviews development applications and makes
30 recommendations to the Board of Commissioners.
31
32 The Board of County Commissioners appoints all 12 members.
33
34 The following individuals are presented for Board consideration:
35
26
1
NAME POSITION TYPE OF EXPIRATION
DESCRIPTION APPOINTMENT DATE
TERM
Statler Gilfillen At-Large First Full Term 03/31/2025
re-appointment
WhitneyWatson At-Large Second Full Term 03/31/2025
Adam Beeman Cedar Grove Second Full Term 03/31/2025
Township
BOCC Eno Township First Full Term 03/31/2025
Appointment
BOCC At-Large Partial Term 03/31/2023
Appointment
2
3 Tara May introduced the item. She said that Whitney Watson is up for appointment to a
4 first full term, not a second full term as stated in the background agenda materials. She said
5 there was not an applicant for the vacant Eno Township position.
6 Commissioner McKee recommended Delores Bailey for the vacant at-large position.
7 The Board agreed by consensus on the recommended applicants and to appoint
8 Delores Bailey to the vacant at-large position.
9
10 A motion was made by Commissioner McKee, seconded by Commissioner Fowler, to
11 adjourn the meeting at 9:32 p.m.
12
13 Roll call ensued
14
15 VOTE: UNANMIOUS
16
17
18 Renee Price, Chair
19
20
21 Laura Jensen
22 Clerk to the Board
23
24 Submitted for approval by Laura Jensen, Clerk to the Board.
Attachment 2
1
1 MINUTES
2 ORANGE COUNTY
3 BOARD OF COMMISSIONERS
4 VIRTUAL BUSINESS MEETING
5 February 17, 2022
6 7:00 p.m.
7
8 The Orange County Board of Commissioners met for a Virtual Business Meeting on
9 Thursday, February 17, 2022 at 7:00 p.m.
10
11 COUNTY COMMISSIONERS PRESENT: Chair Renee Price, Vice Chair Jamezetta Bedford,
12 and Commissioners Amy Fowler, Jean Hamilton, Sally Greene, and Anna Richards
13 COUNTY COMMISSIONERS ABSENT: Commissioner Earl McKee
14 COUNTY ATTORNEYS PRESENT: John Roberts
15 COUNTY STAFF PRESENT: County Manager Bonnie Hammersley, Deputy County Manager
16 Travis Myren, and Clerk to the Board Laura Jensen. (All other staff members will be identified
17 appropriately below)
18
19 Chair Price called the meeting to order at 7:00 p.m.
20
21 A roll call was called; all members were present except for Commissioner McKee.
22
23 Due to current public health concerns, the Board of Commissioners is conducting a Virtual
24 Business Meeting on Thursday, February 17, 2022. Members of the Board of Commissioners
25 participated in the meeting remotely. As in prior meetings, members of the public were able to
26 view and listen to the meeting via live streaming video at
27 http://www.orangecountync.gov/967/Meeting-Videos and on Orange County Gov-TV on
28 channels 1301 or 97.6 (Spectrum Cable).
29
30 In this new virtual process, there are two methods for public comment.
31 . Written submittals by email
32 . Speaking during the virtual meeting
33
34 Detailed public comment instructions for each method are provided at the bottom of this
35 agenda. (Pre-registration is required.)
36
37 1. Additions or Changes to the Agenda
38 None.
39
40 Chair Price dispensed with reading the public charge.
41
42 2. Public Comments (Limited to One Hour)
43 a. Matters not on the Printed Agenda
44 Candace Alley introduced herself to the Board and indicated she is a certified alcohol
45 and drug counselor in Orange County. She said she is starting a program here and runs a non-
46 profit on January 4, 2022 that will hopefully become a 501(c)(3) by mid-April. She said she has
47 created a trauma-healing ecosystem that is patent pending. She wanted to introduce herself to
48 the Board and looks forward to working with Orange County through her program. She has lived
49 in Orange County since 2010 and has been a business owner here since 2016. She said she
50 has never been comfortable to ask for support of the community, but as part of her own trauma-
2
1 recovery, she is leaving here to start a peer-support supervision pilot program for the State. She
2 said she hopes to be the first trauma-healing center in Orange County. She will be doing all she
3 can to give back to the community and gain the Board's support during the budget process in
4 her business.
5 Chair Price thanked Candace Alley for coming to speak to them and verified that she
6 has is in touch with the Outside Agency Funding Program through the county.
7
8 b. Matters on the Printed Agenda
9 (These matters will be considered when the Board addresses that item on the agenda below.)
10
11 3. Announcements, Petitions and Comments by Board Members
12 Commissioner Fowler said that she attended the Triangle Area Rural Planning
13 Organization (TARPO) meeting last week, but not much happened with funding on hold. She
14 said the Agricultural Summit was Tuesday, Wednesday, and Thursday this week, and she did
15 the welcome this morning. She encouraged people to use the Visit NC Farm App, which she
16 learned about through the summit, and said she downloaded the app herself today. She said
17 she attended the Climate Council meeting this afternoon where they discussed their yearly
18 progress report that they will send to the Board of Commissioners. She said they also talked
19 about future which may include education for other cities, as well as a regional summit.
20 Commissioner Hamilton said the Capital Needs Work Group met on Wednesday
21 morning and is making progress. She said they are getting a sense of the scope of the work and
22 making timelines for information they want to receive. She said the next meeting will be March
23 16, 2022 at 8:30 AM and will focus on how the Schools Adequate Public Facilities Ordinance
24 (SAPFO) impacts the capital needs of the schools.
25 Commissioner Bedford said the Burlington-Graham MPO met this week. She attended
26 the REI Groundwater training again on Monday and noted that it is available to all
27 commissioners. She also attended the climate session during the Ag Summit and learned a lot
28 about the State Climate Office at NC State.
29 Commissioner Richards attended the Chamber of Commerce board meeting this
30 morning. She invited the commissioners to look at the chamber's calendar on their website and
31 attend their upcoming events. She highlighted the Career Academy Kickoff scheduled for
32 Tuesday morning at 8:30 AM, as well as the Chamber Annual Meeting. She said she attended
33 one day of the Ag Summit and learned about the State Climate Office and the challenges with
34 meat processing in the state. She said also attended and enjoyed the REI Groundwater training.
35 Commissioner Greene said she attended the Ag Summit, and particularly enjoyed the
36 conservation easement session and the agro-tourism discussion. She presented at the summit
37 on the work of the Broadband Task Force and started a conversation with farmers on their
38 broadband needs. Last week she attended an online session on the development of the Trinity
39 Court public housing in Chapel Hill. She said this is relevant to the county because it is being
40 redeveloped by a private partner and most units house those with project-based vouchers.
41 Chair Price said she unfortunately did not get to listen to very much of the Ag Summit, as
42 she attended the National Association of Counties (NACo) conference this week. She said there
43 was discussion on plans to bolster assistance and support for rural areas, including broadband,
44 and how to bring electric vehicles and tools into rural areas. She said there was also focus was
45 on the American Recovery Plan and how to use those funds. She said that Governor Cooper
46 held a press conference this afternoon and discussed local jurisdictions and school boards
47 lifting mask mandates in certain low risk areas, and these areas includes schools. She said that
48 she and the town mayors will meet with the Health Director tomorrow to discuss. She said that
49 Governor Cooper said more guidance will be determined by March 7th. She said that she and
50 the mayors are working in concert with each other.
51
3
1 4. Proclamations/ Resolutions/Special Presentations
2
3 a. OWASA Annual Update Presentation
4 The Board received a presentation and information from the Orange Water and Sewer Authority
5 (OWASA) on recent activities.
6
7 BACKGROUND: At the beginning of each calendar year, OWASA representatives appear
8 before the Board of Commissioners to make a presentation on recent OWASA activities. An
9 update on OWASA's Long-Range Water Supply Plan will also be provided.
10
11 OWASA Board Chair Jody Eimers and Board Member/Immediate Past Chair Ray DuBose,
12 both Orange County appointees to the OWASA Board, will present the annual update.
13 OWASA Planning and Development Manager Ruth Rouse will provide an update to OWASA's
14 Long Range Water Supply Plan (LRWSP).
15
16 Jody Eimers introduced Todd Taylor, executive director of OWASA, Ruth Rouse, and
17 Ray DuBose.
18 Jody Eimers provided a Strategic Plan update. OWASA is working on a new Strategic
19 Plan to help guide investments and priorities over the next 5-6 years. The OWASA Board of
20 Directors has held three work sessions with staff to work on the new strategic plan, which
21 included discussing input received from the community, board, and staff, as well as revising
22 mission and vision. Recently began working to narrow top six priorities for next 5-6 years.
23 Jody Eimers discussed board membership. She thanked the Commissioners for
24 appointing her and Ray DuBose to the OWASA Board of Directors. She described the board as
25 a governing body rather than an advisory body. She explained the Board's responsibilities in
26 detail. She said that Board members are compensated for their service on the board. She said
27 that all interested candidates are encouraged to apply. OWASA works to recruit diverse
28 members and the only interest needed is an interest to serve and be available. She said that
29 they appreciate assistance in recruiting board members and assistance encouraging
30 applications. She said that they have been sharing information with the NAACP and El Centro
31 Hispano on board vacancies. She said that Chapel Hill appoints five OWASA Board members,
32 Carrboro appoints two, and Orange County appoints two. She indicated that there are two
33 openings on the Board of Directors. She said that she and Ray DuBose are both on their
34 second terms and that she has been selected as chair. She highlighted the importance of filling
35 vacancies as quickly as possible due to the important work that is ongoing. She said that
36 appointments by Orange County will be made July 1 in 2023 and 2024. She invited Ray DuBose
37 to make comments.
38 Ray DuBose discussed the status of the OWASA standard collection practices and
39 affordability. He said OWASA used the local indefinite state of emergency as guidance and
40 chose to defer resuming standard bill collection practices for residential customers. He said
41 there are about 580 customers that are 60 days or more passed due with an average of $460
42 passed due. He said that customers will be given 30 days' notice before collection practices
43 begin. He said that customers that miss two billing cycles will be sent to collection. He said that
44 upon resuming standard collection practices, OWASA will provide payment plan option for those
45 who need it. He noted that utility bill assistance continues to be critical to ensuring long term
46 access to OWASA's services. He said current delinquent customers are encouraged to pay
47 what they can and to seek bill pay assistance, like the Care to Share donation program. He said
48 that he is grateful to the county for administering the emergency housing fund and the County's
49 leadership in administering the temporary Federal Low Income Household Water Assistance
50 Program (LIHWAP). He said that the emergency housing fund provided over $70,000 of billing
51 assistance for 122 households. He said that the LIHWAP has pledged over $60,000 of billing
4
1 assistance in last 2 months. He said that OWASA has been in touch with customers with
2 overdue bills to educate them on these resources.
3
4 Ruth Rouse made the following PowerPoint presentation:
5
6 Slide #1
FW
long-Range - Plan
Update:
OrangeInformation to
CommissionersBoard of County
Ruth Rouse, Planning and Development Manageri
rr. _
7
8
9 Slide #2
Key Messages
• We have a low risk of running out
of water.
■ Our largest vulnerability is in
extended drought.
•After methodical and inclusive
process,Jordan Lake is best option
to augment our current supplies.
• Partnership of local utilities is
moving forward to design and build
new treatment facilities on Jordan
La ke.
10
11
12
13
5
1 Slide#3
Ensuring Long-Range
Water Supply Resiliency
IVALUAYf LGNC-hAWIL
WATER SUFKY
FV%RITL iTRhE-TyGIfS
TO IF7ChEME WAT ER
i4PFLT REi141FNSiY � ' EYA LUSTf LOMC-hAlIGE
—- (D 4E31.04P 'I/,HQS_ _
AOOFT LGN?,L-RALIL:L HODEL FUTURE
WAVER SUP PPIL-P _Y PLAN Y i i RISIL._.ys'�v.=k=M1
J "'. ,bucim R NATIlk
C6MI+uNIrY {; FOh kL6uCInG wAT lk
L NGAGENINT ""FLY RIM
Weconsidered no community 3llJ{*FAR---�l1LLL!E S ELTGAIN E
feedback In our evaluation. u _ERNAnVe AETRhN_i_y_T74E5
L
C6►IhIU W V Irr 7 FkIOIUT IIE
WCAr EMEW ALTER"Tf4P!
2
3
4
5
6 Slide #4
Our Planned Water Supply Meets Demands
Under • Conditions
16
1A
I=- 12 Yield
10 i
C •
Ac all
.*' Baseline,lst,
DFTIflC15 and 99th
2 Percentile
Projections
4
1990 1990 2000 2010 2020 2080 2040 t050 2060 2070
Fiscal Year
7
8 Ruth Rouse said that the blue line shows the yield of local water supply and the gray
9 shaded area is the projected supply and that there are uncertainties with both. She said that the
10 blue line would shift down if there is drought. She said that the actual demands are shown in
11 black and that there has been a reduction in demand. She said that the drought in 2002
6
1 required the community to conserve and that those habits have not changed, and that the
2 community has continued to conserve since that time. She said that there are also rates that
3 incentivize conservation. She said that UNC's reclaimed water system uses highly treated
4 wastewater for non-drinking water purposes and meets over 10% of the community's needs.
5
6 Slide #5
Our Current Water Supply Risk is the Long Refill
Time of Cane Creek Reservoir
Cane Creek Reservoir has Long Refill Times
CCR&Expanded QB
Cane Creek Res
Fa Its Lake
Little RIVer RCS
mrdan Lake
Lake Benson
Lake roirhie
Unlversitytake
4 2G 40 60 as iC0 120 140 l54
VOW mL%to Drainage Area{MG/ q mI
7
8 ----------------------------------------
9
10 Ruth Rouse said that the Cane Creek Reservoir has a lot of water in it but that it is a
11 small watershed. She said this impacts the refill time and that the quarry does not have a
12 drainage area. She said that if those get drawn down at the same time, it leaves the community
13 vulnerable.
14
15
7
1 Slide #6
I`,!u 1995 2020 2045 2070
I i
University Lake.450 million gallons
Cane Creek Re5ervoir;3 billion gallons
Quarry Reservok Phase 2; 1.5 bllllon gal Ion:
Jordan Lake Alloca%lon,750 mill Ion gtllons , __ _ _ _ _ _ _ L
2
3 Ruth Rouse said that OWASA has traditionally proactively planned. She said that the
4 Cane Creek Reservoir was identified as a water supply before OWASA was formed and came
5 online 20 years afterwards. She said the existing quarry was planned in the 1990's and will not
6 come to fruition until 2030-2035. She said that they have had a Jordan Lake allocation since
7 1988 but there is no guaranteed way to get the water from the lake so if it is ever needed, there
8 may be no way of accessing it.
9
10 Slide #7
Jordan Labe Water
Quality
• Hundreds of thousands of �*
ppeople drink treated water
frorn Jordan Lake daily
• Reviewed drinking water
quality from Cary and Chatham
County
• D ri n k Ing water f rom Jord a n
Lake meets all state and federal 4
criteria
• Proposed WTP being designed
to remove contaminantsof
emerging concern
11
8
1 Ruth Rouse said that the community has a lot of concern regarding the quality of Jordan
2 Lake. She reviewed the data and stated that it meets all drinking water standards.
3
4 Slide #8
Process for NarrowingAltc. r r,.,, iv, OpTiorig
All supply and demand None
management possibilities
Alternatives with F Groundwater
• Stormwater
potential Some demand side
managerrr�nt
Best alternatives Demand side managerw--nt
Indirect potable reuse
Or afl Lake F Direct potable reuse
Deep Quarry
alternatives
F TSD
TBD
*Dircct OLIT-tftch
5
6 Ruth Rouse stated that stakeholders were asked for ideas by a consultant. She said
7 they then identified ideas with potential. She said that the Board directed them to use water
8 quality as the highest priority. She said they looked at long term impact on rates and how
9 flexible the option is to change in the future. She said they also weighed social and
10 environmental analysis. She said that after all of the external review and internal considerations
11 that Jordan Lake came out on top but there is no decision on how that will be accessed. She
12 said that everything they have worked with the Board on is very public facing.
13
14
9
1 Slide #9
15rr 1995 2020 2045 2070
University Lake;450 mill ion gal Ions
Cane Creek Re5ervoir;3 billion gallons
Quarry Reservoir Phase 2; 1.5 tAllongallons
Jordan Lake Allo.cmi*n:750 mill Ion gallons
2
3 Ruth Rouse stated that the question remains of how to best access the Jordan Lake
4 Allocation.
5
6 Slide #10
Western Intake Partnership i
• City of Durham, Chatham County,
and Torn of Pittsbora
4
• Working since 2014 on regional
approach
• Plans to build new Drinking dater
Treatment Plant
■ Phase 3: 2031
• Phase 2: 2050
• OWA A beginning discussions with
IP
7
8
10
1 Slide #11
Interests in Western Intake Partnership
Discussions
. OWASA has access to its Jordan Lake allocation.
. We maintain our allocation of Jordan Lake water.
• Intake and transmission infrastructure are built to meet OWASA's
demands.
• Impact on near-term water rates is minimized.
• Our working relationships with our utility partners are important to
OWASA, and we are committed to maintaining them.
• We share with those partners a commitment to providing our
customers high quality drinking water.
2
3
4 Slide #12
Questions Discussion
• Does the Council or community have any
questions on our long-range water supply
planning process?
Are there other interests we should include
In our discussions with the wIP?
• what feedback would you like shared with
the OWASA Sea rd of Dirertors regarding our
Long-Range water Supply Plan?
Other?
Ruth Rouse
rrovse@owasa.org
5
6 Commissioner Bedford asked if OWASA owns the land where this intake might be built.
7 Ruth Rouse said OWASA owns 125 acres, that was purchased in 1989, for a water
8 treatment plant.
9 Commissioner Bedford asked if it will be appraised at the value to see who will be
10 contributing to the project and value of the land.
11 Ruth Rouse said the board will meet next week and discuss the value of that land and
12 providing direction on how to proceed.
13 Commissioner Bedford said she and Chair Price meet quarterly with OWASA staff. She
14 said that water quality is very important to her. She said if there is no water, the quality does not
15 matter, but thinks water quality is very important. She said that after the water issues in Flint,
16 Michigan and the issues in Pittsboro recently, the public is very concerned about water quality
17 and chemical in the public drinking water. She said that it is important for staff to review the
18 website and documents so they can be advisers to the Board. She said it is a critical decision
19 and that she is glad consultants are being used in the process.
11
1 Todd Taylor said OWASA shares the same concern for water quality and the Western
2 Intake Partners are the same. He said that water quality is before anything else. He said that the
3 good news is this is a brand-new plant, so will be built with state-of-the-art technology. He said
4 the harder thing is addressing a newly developed or previously unknown chemical. He said that
5 they know about issues of emerging concerns in Jordan Lake, and they are aware of the use of
6 technology that would address those issues.
7 Commissioner Hamilton said that she wants a better understanding of the models that
8 will determine demand. She asked how much growth can happen before more water is needed.
9 She asked what demand-side management is. She asked how much the communities can grow
10 before they need more water.
11 Ruth Rouse said that demand is based on potential growth in Chapel
12 Hill and Carrboro. She said that there was major regional transportation planning that was led
13 by TJCOG that helped determine build out scenarios and the demand side management is
14 based on those models. She said that demand side management helps reduce water those
15 demands. She said models include expanding the reclaimed water system at the university. She
16 said they also look at bundling conservation type approached such as requiring submetering in
17 all multifamily residential developments and requiring EPA water savings as well. She said that
18 some of those either did not cost out or save water.
19 Commissioner Hamilton asked if models account for difference in conservation potential
20 in new vs. old builds.
21 Ruth Rouse said that the demand projections assume demand decreasing due to
22 conservation.
23 Commissioner Greene said the development community and UNC have an interest in
24 expanding the water supply for growth purposes. She asked what OWASA did to reach out to
25 individual consumers — especially those that remember that Cane Creek and the quarry were
26 created so that they would not have to turn to Jordan Lake. She asked how they conduct
27 community engagement because she has not heard many people talking about this. She said
28 that she would like to stay within the current bounds of water use. She asked about viewing the
29 community conversations and comments. She asked what the next steps for future engagement
30 are to reach out to individual consumers before making decisions. She questioned how reliable
31 the TJCOG build-out models are and suggested that OWASA rather work with the Towns of
32 Chapel Hill and Carrboro for those plans. She said that it will be a while before the quarry is
33 online but that 2030 is only 8 years from now. She said that she is skeptical of the next step for
34 Jordan Lake.
35 Ruth Rouse said OWASA did not reach out to broader community but worked with local
36 government staff in Chapel Hill and Carrboro. She said that provided a ton of demand side
37 management ideas. She said that they are doing much more in-depth outreach this time around.
38 She said they will engage advisory boards, they will come to each elected board, they are also
39 planning an event at the Chapel Hill Public Library. She said they will be engaging the Youth
40 Water Academy because the youth will be around in the future. She said there will be a much
41 more extensive community outreach this go around.
42 Todd Taylor said OWASA will also utilize social media for outreach because they want to
43 hear from the community and that a community engagement plan was approved during the last
44 meeting.
45 Commissioner Greene said the state environmental agency said that climate change
46 concern in this area of the country is not draught but flooding. She asked where the data is
47 coming from that shows draught as a major concern.
48 Ruth Rouse said that the global climate change models agree that our area, rain fall will
49 stay the same, but will come as intense storms. She said they are not in agreement on what
50 future looks like for droughts. She said that they must prepare for drought. She said that
51 regarding the TJCOG data, TJCOG coordinated the outreach, but planners from local
12
1 governments were all part of the model showing the growth that will come into communities.
2 She said that Chapel Hill and Carrboro were very involved in this process.
3 Chair Price said that over the years she has come to understand more of what TJCOG
4 does and while it is hard to estimate, looking at census data and economic development here
5 and surrounding counties, more and more people are coming to NC. She asked if heavy rains
6 really replenish the water tables and aquifers. She suggested OWASA also engage the Chinese
7 School and the Interfaith Food Council, in addition to El Centro and NAACP, regarding the open
8 positions on the OWASA Board of Directors.
9 Commissioner Hamilton asked what percentage of Chapel Hill/Carrboro residences have
10 well water and septic. She asked what would happen if everyone had OWASA water and if that
11 went into the models.
12 Ruth Rouse said the model assumed that the service area would not change. She said
13 that if service areas changed then it would change those models.
14 Todd Taylor said the model is accounting for this as best it can based on zoning for
15 future areas. He said that it is not a huge additional demand.
16 Commissioner Hamilton said it came to mind thinking about potential future flooding and
17 wells becoming unsafe.
18 Chair Price said if there is a significant recharge then some people may need to join the
19 OWASA system.
20 Ruth Rouse said single residential units would not put a huge strain on the system, but
21 larger developments would.
22 Chair Price said they will work to get information out about the available payment plans
23 and thanked OWASA staff for their presentation.
24
25 5. Public Hearings
26 None.
27
28 6. Regular Agenda
29 None.
30
31 7. Reports
32 a. Development Fiscal Impact Study
33 The Board received information on a study and hear a presentation from the consultant
34 TischlerBise, Inc.
35
36 BACKGROUND: Orange County has informally understood the fiscal impacts of new
37 development and what general land uses provided a net positive or negative revenue and
38 expenditure (cost of services).
39
40 Studies from over ten years ago made some generalizations that the combined categories of
41 residential (different densities), non-residential (combined office, industrial retail) and
42 agricultural. Results of that generalized study showed residential development cost more in
43 government services than monies received in Tax and other revenue sources, and
44 contrastingly, non-residential and agricultural were net positive in the revenue/expenditure
45 balance.
46
47 However, this type of study had its limitations because it did not analyze the varied land use
48 types with varying density or intensity, so a new study was commissioned through Tischler-Bise,
49 a national firm with expertise in this research area. This new study provides a higher resolution
50 of analysis with more land use types and by different areas. It should be noted that both studies
51 (past and present) only related to the County revenue/expenditure program and not the cost
13
1 revenue benefit realized in municipalities. This study could also be modified to include the
2 municipalities at additional expense.
3
4 This study and its findings do not have a direct relationship in the Unified Development
5 Ordinance (UDO). Whether a project has a net positive or negative is not the basis of an
6 approval or denial but may be considered in some legislative decisions.
7
8 Julie Herlands of TischlerBise, Inc. will provide a PowerPoint on the findings and address any
9 comments and questions, and County staff will also assist with questions and answers.
10
11 Craig Benedict, Planning and Inspections Director, reviewed the background information
12 for the item. He said that he is hoping staff will refine this model on an annual basis.
13
14 Julie Herlands of TischlerBise, Inc. gave the following PowerPoint presentation:
15
16 Slide #1
17
18
19 Slide #2
20
Fiscal Impact Analysis in General
• Evaluating cash flow to the public sector
o Do revenues that are generated from a development cover cost impacts?
• Based on a jurisdiction's current level of service—reflected in current budget
• Intent is to help achieve planning and fiscal goals by understanding the
connection between land use decisions and revenue generationloperating
impacts
o Models are built to address specific questions
• Fiscal impact analysis differs from Economic Impact Analysis and Municipal
Budgeting
21 Tischer I�Ise
22
23 Julie Herlands said that what they are looking at is the cost to serve. She said that not all
24 costs are affected by growth. She said they engaged in a process to see what the pressure
14
1 points are for the cost to serve. She said they look at this to achieve planning and fiscal goals,
2 and a way to understand those relationships in a way to develop a model that will address
3 questions at hand. She said that this is not an economic development model.
4
5 Slide #3
Orange County Fiscal Impact Model
• Evaluate fiscal impacts of land use
changes
Multiple scenarios allow testing and
comparing
o Propertyvalues
a Timing
o Type of land uses
Inform land use decisions and test T,sc�hlise
'What if'alternatives
• Plan for short-and long-term
operational and capital improvement
impacts
6 Tlsch erblse
7
8 Julie Herlands explained that this model has been developed specifically for Orange
9 County and turned over to staff so that they can enter inputs and perform scenarios.
10
11 Slide #4
Key Assumptions
Orange County Fiscal Year 201 9 Adopted Budget used to develop
the initial model
Revenues and Costs to Orange County are modeled
o General Fund.Special Revenue Funds,Fire Districts,Schools(County-
funded portion)
o Capital expenditures for development's share of expanded facilities
Current dollars are used to get a snapshot result (no inflation
assumed)
• Model reflects location-specific features: Values, school district,
fire district, park district
TlschierBlse
12
13 Julie Herlands said that the TischlerBise model was based on the FY 2020 budget and
14 was proportional to the project
15
16
15
1 Slide #5
Key Assumptions: Residential Default Prototypes
Avg 8fo-essed A-M.TYslr4+r _ VehMe TrL Mem
Vdu+ WIIr Par UnIL � I+rLrr+tlan larmrxTAPAdl5] arweadma 5d' '4
"IderKral land Use Prautypes P&LWe P11 IffluddAr2lKu bFl+
S.OjaF3mlw:IJdiro rp3rww Orwp Ewdop llmFeo.igl 549"EI2 5A93.00O 2.36 9.40 547E a4+46
5inprFamgr:UnlnceWi[Ld4rsn¢e County OpIrnPrv+ed} 53%200 53 WO [LOU (LOU [LOOO[i
A. rFem IFsMra h m ra•,IM 5429.753 y;YM 2Ar7 0.40 5M -0.4+46
S a Famtr::H HilL!Z.2 h{Unioprwm} 5197.5DO 319Q.0OO 4. 0.40 CLW VLW DES
3npe RemlY:Ch"-!IHPVCp7twc,Qr-Dw,!pl WOU31 $5MWO 1.0 L30 E&k -ILM IKIY
9 Rem IHI a nFn�dl 515FIlm 3164.070 D.M 0.40 9.00 -0.40 EKES
Cando-U.In[a rated Ora rCaunrr Orr,D tipl R147 3210.90O 1. 540 54% -0.1746
Contlb_IfIIOFn IlrrworiA} 3p 1A dL3O 59% -0.174CS
CoAds Chip d Hil)CaAara t nOrawml •pgu $17000 F.79 sds sdk -0JB CW_CS
Mrhdrr iFe W,Uo:r[orporsmd 4r Ca.ogllmpo.i p11.7d8 $ihY,111O MB LOO 9dk ti178[S
MuComlly Ams HFtllomip Ilmpmedi $fif6afi 570YWO .kAI3 430 56k till OCS
WUfrm'Iy Aces Ch.od HIIVCvTWm llnoruvW1 SIMV3A3150.900 J.79 Sfi5 54% -0.J0 CHCCS
ndl[NredHonePJ!'k IXIIn[[r rahpOra eCaur M wad R+ 31 32+5.990 2.25 9.M SO% -0.3244
hhSn J+[ural FJbm3 MML if liho Ilrce><o.al} 1.1%2251 $3.15MCI2.371 P.4O 54% -0.524C3
Minrdr[urdd Fnma OrLCF.apd Hi�ACsnhtro pmprewdl sol IAaj EL301 E&k ti7BCNCCS
fJl OwhK Qo<nrvli_aiva•dcho aacerdtn4re ar h+pls.?�'�+rri�pokfr,00q+4rrf[eorVS*:n•fl7ealp'r,aYwkrsBxY MMNF�S rows
r3f Il.mda.dar
r31 vS[xrd.d
fy Irc��rc�rronw+reeo-i f'ePrn"s M1'iEl 2O1e
hl 70r h.ar..4+.mrm nUml.8.rr....erraerrere.nm4ae�rdmt�emermm�.emmq
rbJ"peCa *.W_5[raotAdeawup.ar[FwiWGGmlmeAmrAW& 205'
S.rn..onm F.a K M�rO&rah.
Tisch i s e
2 .
3 Julie Herlands said that the model makes distinction between single family and
4 multifamily developments.
5
6 Slide #6
wa.Ar d wF3d.hip Trla hdl Addam� ,Wkr r.d mp VM4b&
4ir..n>4 wLr..r>q ..lJDo>¢..r�me¢l.�xiil TMb+d- .��e pl
Key NamMmt71 Lxd Lbt Pratm R.I LI Irturrdesp l7l Ft RI FL E3J Faaw'i M Sy Ft
nrhF:Linhwarparrhd O.rnr Emriy(Imp. M $Lm. $L]J 7. W. ! L ek73 IM
Assumptions: Arne:tl+'+K4rmralM C a r{arty 14r:. -tdr S. 5i4 7. 37. L 1C KM
n.d1:M4mnwhILnPr�l $Lm ye $La] 3. V. L un
aroa:KE4om. 14r:rwm•MI 525 S2r 2. 3e. L Sk KH
Nonresidential nrh F:4r.�L7lrCr atom lmpmrgl $L5F $LW 7. $7. L Sk Fi
Aeon Ch2W K&W3rrds ra 14dNYDRdl S24 SM Z. 37. L 1x. KM
dA_
LM
Default Cnrc 4r:,�a""�,tt{nng O_yyrp nx+e71 I $537. $S3a 2. A L 71O
OLIR nr Y�•�r 4n r-d) $LW. $2 3. 0. na
Prototypes W or O:p w°-b I MCI $2� $2� a ;R
CIrly O Ml myUd .ludr.p..O $•IS 3. 0. Fla
Ir-duwW:a^rcarpr and DranttCm aVPr%y 1 d 575 575. 7. 4 L L 31O
Ir &rW:unnap:.L.dC-WC rrbe Ur+nw4 $M $ 3. s sm
1r-dumr H:m!NWru00 mJrwd l 5W St6. 7. 4 L 2 3LO
I rdu&Id:x+h m mrEr aJ rim p mdl $M $]S. 7. 4. 3La
r umrW!4ra[d-4Mb,r6aro l.* El R37. 5237. 7. 4 L 2 Ma
I riwW:Chao-l"Mb,rtaro Iur.r -tM SME4 SLM 7. k9G L Z. 3LO
Ir.rermnr ur+nrp �.dC..%.{-4Vn4pn..Q $LOL �-21 M3 57af5�
-O-Oral UNrKDI1PZKtV tCDLAW I4rirL m•rm 510. WDN A 26. L 1A] 52WM
_vF xehmr-00-p M $LIS 37 Q 1a.7 !1115.13
. .:rat xaglar ft +r rm dl S2i 58. A MDL M3H 5201?37
_n.r ChQ.I Hdydr .Frn.ry j #Leo- I-21a. eo.e 5eN5.>o
_:pryl py1N x+412rrGao-llrin Va•rdf SLO3. 50. A M L 10.] 520.':37
flI Oreye ia+r..+vecc•�raracaanuw+ta+�eey4•irddW zMy4rtcw+++k+agrA`+ww>iaxwanmrrLr�Y.�r.,�r+rlu[3aNL�aho-aw+rmntduzaryprs5w
-r1.«.r�axawTM rd.Koana rauc+y
17l F+aL..r+a..�u.r.sr��Pzrr.rr.MP.rr.n r.rR rrr�oF
fll•r31MR�T4+rYorTefo�C'V"raF'>:ff�El dG77
Tisch aise ,'���° �md[mmrm.�.a�. �..�,®I.,. .L
rwxaX•'o3�x:+.1 shdnwrmaao.+[�[•'uaarr �L+ +aw3xess J+rwlsnrssoeJauMe.1d1A7
7 .�.si I LL'Ux4�4'I xLaxx.� eao.•.r a•.+..�wT.IT[n�r.r..r
8
9 Julie Herlands said that the model also distinguishes between retail, office, industrial, and
10 institutional for non-residential categories.
16
1 Slide #7
Example: Fiscal Impact of Residential
Development in Unincorporated Counter
* 20 Housing Units
a Single Family
a Condos
o Multifamily
* Location- Unincorporated County
* Schools- Orange County Schools
* Fire. Orange Rural Fire
. Parks. Cheeks/Hillsborough District Park
Tisch else -
2 t v.1 I ..k. I K&HNWA�,
3
4
5 Slide #8
PROJECTSUMMARY
Example: "INARIO COMRARI50NS RESIDENTIAL IN UNINCORPORATEd COUNTY
Residential in
1 1 1�}� finwlat MSFfY Unlle;Unl�.l w mdv3;20 WWIh:Unlr[,I
Unin . Elrcty}W[MearhlG u Oec6WMs Pvk6Fabtrt
County: REMWIPL; �26t:r rxr.'�bo�r,+S,� ��Drcur.'K;new G+w�Fi ;aGr_c+yx rr.RGro•fi�
arlw-
ummary khodMiuM11L ��ural u E�A.aI a�n�u01
PawlD"d I [hetAse NllshoP LA €hexla WllLmau
NO V4E IMITS 28
POPWATION [7 R
FM ULburr 4 3 3
hP0hffEJL.fNT1iL 9QUME FEET 8
IOR6 al F 9
REST�4FLti TitiB R F PR W FAN 4AlLIE f9�8}, �1 $MUM6
NOMES DMTWL T/.WBLE W $b
TOTAL TAKABLEFROPO"YALUE 59SOLM 54
M"NQ"m" fi�a�r PeRCefau_rAP1__r�P.11t_Il lSlid_�i 4MPlan
ItW&74 lb'b7570
TisC}l lse
7 Julie Herlands then showed how the summary snapshot would look like for information
8 sharing.
9
10
17
1 Slide#9
Example: NirIFISCAL WPACt,2a6Year cumulative Resufti
}1�y rlMU4AT11r€-5€eaa+k�io-rp�+lson€
ld rl l � Oral tau F6calWwactHJodel ftSi MnAtrNumnebRPMTEEP[bLMY
Ir
Residential
SCFhARIQ
Scenario];.ZDWOL.J'tS; 5mmirio2;29 rondo Unit, Somario3 ZDMFUniks;
in U n i n Uninc;OM-brangrAural Unln�;bt#;brangr Rural Lair c, M,6angrRural
Fire;PleeHsjrMllls PUB Firs PleeBs/Mllis Para Fire;Mett5fHills P 34
County: °err District District District
GrWO TOrhJ
Fiscal T45TALREMEhLIE3 SiAK79-2 SAUA2 Ws 90
Re��++ }�+ TOTi1L�rS LKPUNDF RE5 $1 dU3 398 S15MI930 5159MI0
•7 IL.7 NErMiWAtT s�aa�al 5137+16Z [$17d9AZ1
4f0�rL}¢q5q,'{: Fknrmr:darVe Ca F,{i_rv2PJS PFO.FCF lE4F�rf�Tesd Fea'aLNh�r2�ir�
FILYrDATF: J2,W2an
Results are 20-Year
Cumulative Totals
Tisch else
2 .. ... . h
3 Julie Herlands said that they do not include inflationary factors in the 20-year total
4 model. She said that the output is shown in current dollars. She said that is a reason that an
5 annual update of the model is important.
6
7 Slide #10
Example: Residential in Unin . County: Fiscal Results
Average Annual(20-Year)Net Fiscal Impacts
Orange[bunky Fiscal Irnpatk Analysis
s� 6&
ifs
#301
Wean L Jo-20
■kemrio 1;LU SFD Unim;lklinr.;OCS:Orancce Rural Pre;€he&k Mllh Palk Disbic7
■keoaria 3:M tanda Units:Union;=,Orar¢e Rwal Pre;CFrceicsMills pail DistriA
■5€orwM 3:N KW UnItp:Uninr,;QL5;pr2W Rural Firf;Ghp@WFW$Parr plrrlrlrk
Tisch vise
8 +kGsr I r€o�aea I nsxx.4
9
10
18
1 Slide #11
Example: Residential in Unin . County: Fiscal Results
Annual Net fiscal Impacts(All Funds)
OrangeCaunty Fiscal Impact Analysis
55
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3
4 Slide #12
Example: Fiscal Impact of Nonresidential
Development in Unin . Counter
• Nonresideritial Sample
0 100,000 si retail
0 50,000 sf office
c. 200,000 sf industrial
• Location: Unincorporated County
* Schools; NI
• Fire: Orange Rural Fire
• Parks: NJA
TISCf1 Ise 2
6
7
8
19
1 Slide #13
PRGJ ECT 5UM MARY
Example: SCENARIOCONIPAMSON5 NONRESIDENTIAL IN UNINCORPORATED-COUNTY
o resid. in 3rsvrla i!iffl Aw r 5mrrb2!W G1 3mnarlo 3!WDAOD1
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iOrt+A af11G3 ocs Ms acs
FIO DILarkm Magpilliural
Ora Rural Ora /rural
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HOUSING UNM II v 9
P kMATION U ® 0
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Peft iN 3}fi
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r10aMPSICEM1RML TAY -E�x7�PiTi'Wl4E Sd}500 4a 5145 4
[r+l., TOfALTAMMU PROPERTYVALUE SJ2,190 1 �S 0
Tis4I I � %VMrtF hN% r pngeL7rf R rratiFL7IE44LtC7erCN++++E+ls+�n4nl++5ur•c«
2 .w. . I.bx—
3 Julie Herlands said that the key indicators here are jobs created and total taxable
4 property values.
5
6 Slide #14
C ft1 � ATT PISCAL IMPACT:2�Year-CuftwIcHve RewiV
M WNLIJLATrVI-5cooldO Gor P00*01#
Ora ,lu FaollmpartModk1 NChRESDEhTIALINUNw[ORPOPATEOCMWFV
Ikonresid. in SUNARIO
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County: rAte pry DIVIA0 Pl9vid ur..w Hllli RMkID11trlat
�vnd Tvmf
Fiscal TOTALREYEN605 $7.M%654 $L287.18B $102&127
TMALIMP11MID Upl5 �1.70
$9aa $X0s49112 $2.M2.179
Results rU RWAL INWAU s6.wm $U%2AL $w m
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JAW DATE 2, MIZ
Results are 0-Year
Cumulative Totals
Tisch e Ise
7 .I... :x4 4'I xLoxx.�,
8 Julie Herlands noted that all three options have positive fiscal impacts.
9
10
20
1 Slide#15
Example: Retail in Unine. County: Fiscal Results
Annual Net Fiscal Impacts(A11 Funds)
Orange County Fiscal Impact Anal ylsis
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3
4
5 Slide#16
Example: Office and Industrial in Unin . County: Fiscal
Results
Annual Net Fist;I Impacts(All FUndsl
Orange County Fiscal Impact Analysis
#n
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525
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7
8
9
21
1 Slide#17
Wrap Up
* General findings:
a Nonresidential at default value assumptions typicallygenerates positivef seal results
a Retail generates the highest positive fiscal results of nonresidential land uses
o Certain residential development at high enough values generates positive fiscal results
a The model should be viewed as a tool
o Results and findings do not have a direct relationship in the UDO
• One piece of information among many to evaluate a project
o Other non-fiscal factors should be considered when making land use decisions such as:
job creation,jabs-housing balancelcommute times,economic benefit of local spending
from increased income
* Q&A
2
TlschlerBlse
3 Julie Herlands said there are many other factors besides the model that should be taken
4 into consideration when determining land uses.
5 Commissioner Hamilton said she appreciates the last slide highlighting that the model is
6 only one piece of information that goes into decision-making and is limited to fiscal impact. She
7 asked how jobs are factored in the model capture for cost and revenue.
8 Julie Herlands said there are services within the county purview of services that are
9 provided to the non-residential sector. She said that some cost factors are driven by the
10 presence of jobs. She said that it becomes a demand generator that then captures the effect of
11 customers. She said that public safety is an example of a cost. She said there is a portion of
12 costs and revenues that are generated and driven by employment growth.
13 Commissioner Hamilton said it sounds like a broad category, since there are different
14 types of businesses and employment. She asked how they can be sure the variable is
15 accurately capturing the cost.
16 Julie Herlands gave a public safety example to answer Commissioner Hamilton's
17 question. She said that the law enforcement side includes calls for service for residential and
18 non-residential development. She said those numbers are then used to estimate demand based
19 on vehicle trips that are generated today. She said that the model assumes that these will
20 continue in the future.
21 Commissioner Hamilton asked how the commissioners could be sure this model creates
22 coefficients that lead to a model that fits well.
23 Julie Herlands said the intent is not to get an output/dollar amount someone is costing
24 the county. She said it is the relationship between the revenues generated from the land use
25 and the consumption of services. She said that part of this is engaging in a process with
26 service providers to understand where the pressure points are. She said not every cost is
27 affected by development. She gave examples of service calls based on type of land use and
28 how that develops an average cost estimate.
29 Craig Benedict said that he did previous work like this in Florida, and they had certain
30 general assumptions for costs of service by department. He said those model inputs were then
31 tested against actuals. He said they asked the police department if they were responding to the
32 new developments at the same rate that they had assumed when they started the program. He
33 said that they found out that the newer, multifamily, and higher end multifamily did not have as
34 many police calls for service as had been estimated. He said they also found that the school
22
1 impact was less than they had predicted for those same developments. He said this data
2 collection allowed them to fine-tune the program specially for the multifamily developments. He
3 said they found out that newer multifamily developments had a net positive. He said they also
4 checked their model assumptions against actuals with industrial development, as well. He said
5 they plan to continue to do the same with this model.
6 Chair Price asked how long before the fine-tuning is done. She asked if the findings from
7 checking the model applied across the board in the future, or only the one location where it is
8 found.
9 Craig said the model starts out with generalizations and is fine-tuned on a case-by-case
10 basis.
11 Chair Price asked if TischlerBise used lessons learned from other locations in modeling
12 for Orange County, or if it was the standard model.
13 Julie Herlands said the model is built specifically for the Orange County community. She
14 said that the data has become better and to get to distinction between sizes of multifamily units
15 has been refined as data has become available. She said that she expects Orange County's
16 model will be updated annually by staff. She said that any assumptions and averages in the
17 model can be overwritten as more data becomes available.
18 Chair Price asked about the zeros listed under the key assumptions in the residential
19 model.
20 Julie Herlands said at the time, there was a gap in that data, but staff can put that
21 information in as it becomes available.
22 Chair Price said she understood the use of general data and then each user will adjust
23 as actual data becomes available. She said she was curious about national or regional trends
24 being used in the beginning. She asked about the pre-development shown.
25 Julie Herlands said the undeveloped lot is for doing a pre-development to after
26 development scenario.
27 Commissioner Bedford said some recent developments in the county have been
28 warehousing and logistics. She asked how this tool could be used to establish county costs for
29 this type of development vs. revenue. She said she thinks this could be a different use than the
30 commercial that has been shown. She said it would be interesting to be able to use this tool for
31 those uses.
32 Julie Herlands said warehouses have a different set of characteristics and parameters
33 can be directly entered into the model. She said that the trips to and from factor into the public
34 safety part of the equation because there's potentially increased vehicle accidents on roads with
35 increased traffic. She said that it does not correlate to road maintenance costs but does
36 correlate to public safety. She said the county can certainly evaluate and test those types of
37 uses.
38 Commissioner Fowler asked how the planning department is using this tool right now.
39 Craig Benedict said that this is not a direct requirement of the unified development
40 ordinance, but it can be used to understand the value of land uses. He said the numbers show
41 that retail generates nine times more revenue than industrial or office. He said this can be used
42 to assist in making legislative and economic development decisions.
43 Commissioner Fowler asked if retail includes food, even though it is taxed at a lower
44 rate.
45 Craig said it is combined in the same category as grocery stores and retail.
46 Commissioner Fowler said the model gives an idea of government spending but not
47 necessarily what's best for the community. She said they know there is a need for affordable
48 housing.
49 Bonnie Hammersley said this tool is available and staff will begin to use it as new
50 projects come in. She said they may even look at past projects and plug into the model to
51 monitor them. She said that it is important to recognize that this is a tool to use in combination
23
1 with other information. She said that it all will work together. She said that she knows that any
2 decision must include social justice, environmental impacts, and fiscal impacts. She said that as
3 they bring projects forward, they will include this data.
4 Chair Price asked if the model can be adjusted to consider changes in lifestyles since
5 pandemic, including types of jobs and how people are working.
6 Julie Herlands said that it can be and that as behaviors start to evolve, the market will
7 change, and the data can be updated to reflect those behaviors. She said that since sales tax
8 collections have changed, and as they continue to change, the data will continue to evolve.
9
10 b. Long-Term Financial Planning Operating and Debt Models
11 The Board received and reviewed information on the two County financial models — 1)
12 Operating Model and 2) Debt Model — that the Finance and Administrative Services Department
13 utilizes in providing forecasts of revenues and expenditures to the County Manager, Deputy
14 Manager and the subsequent Manager's Recommended Budget each year to the Board.
15
16 BACKGROUND: The County's use of a Long-Term Financial Models was first implemented as
17 part of the FY 2018-19 Budget Development Cycle. As noted in the attachment, Long-Term
18 Financial Planning provides local governments an important resource in ascertaining the impact
19 of changes in economic conditions, recessions and various spending scenarios.
20
21 Bond Rating Agencies and the Government Finance Officers Association consider Long-Term
22 Financial Planning to be an integral best practice for a local government to maintain financial
23 resiliency. Both the Operating and Debt Models were instrumental in assisting the County
24 through the COVID Recession and maintaining the Board Adopted Unassigned Fund Balance
25 Policy of 16%.
26
27 County staff regularly uses these two models to formulate recommendations on both the
28 Operating Budget and Capital Investment Plan.
29
30 Gary Donaldson, Chief Financial Officer, reviewed the background information for this
31 item and gave the following PowerPoint presentation:
32
33 Slide #1
ORANGE COUNTY
NORTH CiROLINA
Long-Term Operating and Deist Models
Gary Donaldson, Chief Financial Officer
February 17, 2022
34
35 Slide #2
24
Background
• 2017-Long Term Operating Model
- Operating Model first used for FY 2018-19 Budget Development
- Resourceand modeling tool to determine Revenue and
Expenditures under various economic conditions and scenarios
- Guided County through COVI D Recession
- Maintained Unassigned Fund Balance Levels at 16%Policy
• 201 B-Long Term Debt Model
- Used to determine required tax rates to support Referendum
Debt and other Capital Investment Plan projects
- Integrates key Operating Model factors and policies;Assessed
Valuation(fax Base)Growth,Value of One Penny,Debt Service
as Percentage of Revenues,Total Tax-Supported Debt as
Percentage of Assessed Value
- Sensitivity Analyses Functionality
ORANGE COUNTY
1 NOR73I CAROLINA
2
3 Slide #3
OPERATING MODEL
ORANGE COUNTY
NMFM I CAROLLNA
4
5
6 Slide #4
$funiCusr•Annual Forecasting Model
• Create baseline andaltemativerevenueandspendingforecasts-
more than 100 possible scenarios
• Analyze historic trends and correlations between economic,,financial
and operating data
• Test impact of assumptions and proposed initiatives on projected
fund balances
ORANGE COUNTY
NOWT]I CAROLINA
7
25
1 Gary Donaldson said that these are GFOA sponsored and recommended models. He
2 said that they own and utilize the models. He said that both models are dynamic and used about
3 two-thirds of the fiscal year
4
5 Slide #5
Detailed Historical Data
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ORANGE COUNTY
NC}RTl r CAR1711N.h
6
7 Gary Donaldson said that the historical data allows analysis of trends and provides basis
8 for future scenarios. He said that this allows for a more collaborative output.
9
10 Slide #6
Long-Term Financial Model
GUMS L FUM SUIT ARe FORECAST
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ORANGE COUNTY
Ni R71 r CARGLrN:k
11
26
1 Gary Donaldson said that the model can go out over 10 years, but that is typically as far
2 out as it is used.
3
4 Slide #7
Long-Term Financial Model
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ORANGE COUNTY
1%)OF 1 I CAROLINA
5
6 Gary Donaldson said that regarding personnel, they are looking at competitive staff
7 retention and this has been built into the model. He said that this is a no recession model and
8 shows sales tax is at 3.6% growth and a natural growth of 2% for property tax.
9
10 Slide #8
Forecast Assumptions Tab
ORANGE COUNTY
Ni FM I C.ARGLINA
11
27
1 Gary Donaldson said that the model allows various assumptions to be input and
2 customized. He said that it allows flexibility in terms of looking at revenue assumptions.
3
4 Slide #9
Detailed Property Tax Modeling
NI I !GONE 1 20M 1 m F
A4-REALJPERSON9LLXORP IWUSETI kki)W6S$21 M441 I)91,7G3 } 8 Jl S97 21 PS 91 0E9 2Y 72 f6 31
PERCEr+T CRWI6E LM% 13.71% 2.99% 2,19%
A-05TOR LEIICLE MUDGET] 1.296.37RMk Y.27R,S36pRR 39i Ll 1,311,
7�S 3 43 1
PLAOENTCIkWGE R99% -I.R% 2A91E 3A11%
6V-TOTAL 19.296.247Z'S 21.739530.791 22.174321.47 22b17.07,R35 23.97R1E3392
PERCENTCHANGE WAY 242'k Y2.ffix 2.0111E 24071 1.04%
EXPECT TAX RATE IPER$HDAY3 L3679 G.E579 M137 U212 fU237
P03T REVAL TAX RdITE G.M"
TAX R6TE FRW[EST 4.93CO nm 9..49E
TAX RATE FOR OPERATIONS
NEWTAXRATE 1.907 T.9212 9.1237 0.1237
PERUNTCWHdr IN TAX RATE PRO% -5.67% G.31fE 0311% 6.04%
I RR EN T LEST QLE15LAERWCGR PJ ISU2951I L67579fi6} 171A53.212 175.11t673 179.927969
CU RR EN T LEVe 17AIsCLE] ik.24W2 WAU79 kBAV.3YS i6,Ei76.1m L.10S.973
TOTAL CUMENT LEVY Y67 7 R36 L77ML 39 i3l S27 L E3 Eh3 1
CO LLEOTIOH PATE OLEALIPERV-1ORPi 9EL70A 9&7M 94.20k L9.Llh4
CO LLEOTION RATE(LEh CLES) 98187E "ARIL Dg.M%l W9DIIIII 22.907i
C11 LLI=CTIOTI51R E4�bE ICI" 15d.19R531 L65.L4 LZ 179139L.58E IT 71,1. 177.19L595
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TOT8ICURREI TCOLLECTION3 195373LE47 L75,740592 119.713.259 199.97R67d 11R5KA51
REVENUE PER ME CENT LEVY 11947i416 2,L16SEL 2.2%fm 2.H#E1.2 k2E9SO4
ORANGE COUNTY
NORT]r CAROLINA
5
6
7 Slide #10
Current Year Estimate Tab
It
RFFETWFSAAI7 7PoNN�AY
OL PR4PERT4 TwY-CURRENT L1$B91,9Li EIII Y2A291�.Ul Ell% 133A77p32 ESA7f k3.Ek 116�65b'Ll 167.SG?,17B Y is
10MUTORyEnICLES-OLMENT S,i81;f5S 460% W7,46i UO% r;393,W7 U!2% E.:A& SADNA40 Li,5 DUN! i6,43Qi66
03.DL-CROSS RECEIPTS 4DAL Si43€ 52r36 saw 3iAM 433% E,Y.Ek 47,9 Sl 9}y3S 44M
93.02-4TR61 TAXES 53EF7 25 M 5339
A1.7 7.273 33.7% 29..9M 4.193 Kam 30
•DELINDUENT T4KE5 724% ME'.VW 7 ILUI"33 53 % 57.7% 13331E 1m179 1.77ST091 W3 5 %
. 17.1L R 7% 7ZE4714A% 5D9%
dGn% BR395 1drFEW
0,ARTICLE 3A Z954.553 3fi3% JU%S63 3L Y% 3,MUW 26.S1i k3.0k 3;;Wi5 1xmY Jl6 12 S
W-ARTICLE I6 YBKD7E 3&7% Z031.399 ki 3% Z344DM 23.7% 21.2k 1b33" YG�O;.Etli i8,'I4.3.fi39
f�ARTICLE i2 W7,#L3 IE216 kf>&7,E56 3LON L.fi Ik 3151 t7.9k L,7W36 R411 AL
ORANGE COUNTY
NOV1 T r CARlOLINA
8
9 Gary Donaldson said that these estimates help compare property tax collection year to
10 year.
28
1 Slide#11
Monthly Ca hfl w Model
ORANGE COUNTY
NORTI I CARGLINA
2
3
4
5 Slide#12
Synergies with other Models
• Work with Vendor to create interfaces from
other models
* Operating impacts from Capital
Improvement Plan Database
• Debt expenses and Property Tax required
increases from Debt Model
4
ORANGE COUNTY
NOFM I CAROLINA
6
7 Commissioner Bedford asked how CARES and ARPA funding will be worked into future
8 forecasting.
9 Gary Donaldson said it has been taken out of the general fund and is in its own fund to
10 keep separate for forecasting purposes.
11 Commissioner Richards asked if there is a meeting when the Board gets to decide what
12 the underlying assumptions are.
29
1 Gary Donaldson said that the manager's presentation will go through key assumptions.
2 He said that for sales tax, estimate reports come out in March, and is tested against our own
3 model.
4 Bonnie Hammersley said that she is required to recommend a budget to the
5 commissioners per state law and will provide a preview of the assumptions she is using for the
6 budget. She said that after the presentation of the budget, commissioners may make
7 amendments to the budget. She said that most assumptions will come from this model and that
8 it has been shown to be extremely accurate. She said that the only time it was not was during
9 the current year when the county didn't anticipate the growth in sales tax due to the pandemic.
10
11 Slide #13
DEBT MODEL
ORANGE COUNTY
NORT]I CAROLINA
12
13
14 Slide #14
Capital Funding Policies
Current Policy
• Debt Policies Incorporated In the CIP
Approved Debt Financed Projects permanently in CIP and Debt Model
• Years 6-10 Projects CurrentlyLumpedSum
16 Year Average:40%County Capital and 60%SC1104ls
Prmposed Policy Changes
- Years 5-10 Projects Detailed
• Prior Approved CIP Projects Over Three Years and No Activity,
Resubmit and Manager and Board Approval(Z iFe-Safety ExeepYkm
- Years 5-10 Year Projects to be Delineated by Year and Prioritized
ORANGE COUNTY
NORTH CAROLINA
15
16
17
30
1 Slide #15
Rationale for Extending CIP from 5 to 10 Years
Near Completion of $125 Million in 2016
Referendum Approved General Obligation (GO)
Bonds;
Determine Debt Affordability and Fiscal Years for
Next Staff Recommendation for New GO
Referendum Bands; and
Stakeholders Coordination, Communications and
Long-Term Financial Planning
4
ORANGE COUNTY
T]ORTr I CARDLINA
2
3
4 Slide #16
Board Approved Debt Metrics
f Debt Service as a Percentage of Revenues
• IS% MCC Approved Policy Target
• Ensures Fixed Charges are Limited,Remaining revenues available for
Operating Budget
• Rating Agencies and Bondholders Favor a Policy
Y Total Debt as a Percentage of Assessed Value
(Tax Base)
• 3%BOCC Approved Policy Target
• Current Total Debt to Assessed Value is 1.6%
• Another Important Debt Limitation Policy that Rating Agencies and
Bondholders ravor
ORANGE COUNTY
NORT]I CARGLINA
5
6
7
8
31
1 Slide#17
Debt Model- Key Features
straightforward update to Input C I P Detail Page cornprised of
more than 140 County Capital Projects;
Input Worksheet includes, Fiscal Year of Debt Issuance,
Amortization Financing Period,and Interest Rate Assumptions;
Output+ orksheet includes-,Debt Service to Revenue % Ratio.
Total Debt to Assessed Value(Tax Base), Dash Surplus or Deficit
and Tax Rate Requirements
Reconciled to General Ledger, Financial Statements, Long-Term
Operating Model & Comprehensive Model (28 Excel worksheets)
ORANGE COUNTY
2
3
4 Gary Donaldson said that the model is very flexible for running different assumptions.
5
6 Slide #18
Debt Model- CIP Detail Worksheet
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}
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ORANGE COUNTY
NOWT]I CAR.OLINA
7
8 Gary Donaldson said that this is the input page from the debt model.
9
10
32
1 Slide #19
Debt Model- Results Page
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NORTI I CAROLINA
2
3 Gary Donaldson said that this shows the policy embedded in the model. He said that the
4 rating agencies value the fact that the county is doing this long-term planning. He said that gives
5 them a great deal of comfort with respect to long-term financial planning.
6
7 Slide #20
Debt Model- Results (Tax Fate Impact)
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ORANGE COUNTY
NOMA I CAROLINA
8
9 Gary Donaldson said that this is through the general fund since that is where debt
10 service is paid.
33
1 Slide #21
Debt Model- DIP Detail Worksheet
(Sensitivity nalvsie- lOOMI
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ORANGE COUNTY
NIORT]L C.AR AINA
2
3 Gary Donaldson said that in terms of the capabilities of putting data in the model, this
4 slide shows anticipated debt service and what that might do to policy and overall financials. He
5 said this is the page of concern because it shows what is running through the general fund. He
6 said that this will show gaps that the county would need to solve for.
7
8 Slide #22
Debt Model- Results
{ eneitivity Anallys1s= 100 }
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ORANGE COUNTY
T10RT]I CARGL[NA
9
34
1 Gary Donaldson showed how adding a sales tax increase solves for the gaps for the
2 anticipated hypothetical one hundred million debt issuance.
3
4 Slide #23
Debt Model- Results
(Sensitivity Analysis= 1 OOM Impact)
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ORANGE COUNTY
NORT1 I ChROLINA
5
6
7 Slide #24
Debt Model- Results
( ensit1vIty An a lys i sz$1 00 M with 5 Cents Tax RequIrement)
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bdl{1P YlplclSilw 2D19 l}.3�
ORANGE COUNTY
?40FM I C.iROLINA
g
9 Slide #25
35
Debt Modell — Results
(Sensitivity Analysis- 100M Debt Service Summary)
I �o.o
ti
40.0
Wo
2.0
■Existing Debt Service ■C]P Deht 5ervU ■Hypothetlaal pp E§3nd Rwrarei-dui77 DS
�4
ORANGE COUNTY
h1OW t CARDL[NA
1
2
3 Slide #26
QUESTIONS
ORANGE COUNTY
NOWF]I:CAROLLNA
4
5
6 Commissioner Bedford asked about the difference between existing debt and CIP debt.
7 Gary Donaldson said the existing debt has already been issued and that the CIP debt is
8 projects that will be financed in the future, per the CIP schedule.
9 Commissioner Bedford asked for an explanation of why if you change something in the
10 CIP, it does not make a difference in years 1-5. She also asked how 3% of the assessed value
11 of the tax base is used in finance.
12 Gary Donaldson said the Board passed that several years ago and is currently at 1.6%,
13 so well within the tax supported debt. He said that we are well within the threshold of tax
14 supported debt. He said that it compares it to the assessed value.
36
1 Commissioner Bedford asked if this shows how much they could tax if they needed.
2 Gary Donaldson said it's one measure but looking at what impact on operating budget
3 would be is going to be the deciding factor. He said that regarding her question on the CIP, to
4 understand what is being funded in years 6-10, they need to know on the county side when they
5 would plan for issuances.
6 Commissioner Bedford asked how changing debt from year 3 to year 4 never changes
7 the results.
8 Bonnie Hammersley said it is because it is already in the model as existing debt.
9 Commissioner Bedford said that she understands now.
10 Commissioner Richards said she appreciates the model. She said she is not clear on
11 where ARPA funding is considered.
12 Gary Donaldson said all that money is in a separate fund outside of the general fund, per
13 guidance from the UNC School of Government.
14 Commissioner Richards asked how to forecast for that money when it runs out.
15 Bonnie Hammersley said the reason it is not in the model is because it is not in the
16 general fund, which is the best way to handle this money according to the experts. She said that
17 because it is one time money, it cannot be historically looked at or tracked for in the future. She
18 said that she will make recommendations for the money and commissioners will either agree or
19 make a budget amendment. She said the hope is that by 2024, the demand for the services
20 funded by ARPA will have decreased and will not be needed at the same level. She said that
21 she will bring forward recommendations on where the demands are from departments.
22 Commissioner Richards asked if demand is already outspending the budget.
23 Bonnie Hammersley said her budget meetings will be in March. She said that spending
24 and demand are currently doing fine and on schedule.
25 Commissioner Richards said there is a housing need, so why would the money not be
26 invested in a way that could impact housing long term.
27 Bonnie Hammersley said there is a 3-year plan for the money and most of the money
28 that's factored in, is going to housing.
29 Travis Myren said one of the things the model can do is plan to use property tax revenue
30 to continue ARPA-funded projects into the future if they are still wanted and needed when the
31 money runs out.
32 Commissioner Hamilton said the total debt is a percentage of assessed value and would
33 be interested in knowing what percentage would be if also at 3% approved target.
34 Bonnie Hammersley said it is unusual for a county to get close to its percentage of
35 assessed value. She said that the assessed value is $22 Billion, and the county is about
36 midway to 3%.
37 Gary Donaldson said that the model is dynamic and flexible and that looking at 3% will
38 provide large numbers. He said the rating agencies look at debt service to budget. He said that
39 is the metric they look at more so rather than the total debt.
40 Bonnie Hammersley said there is an expectation from rating agencies that the county
41 would increase taxes to cover those costs.
42 Commissioner Greene said during budget season she wants to talk about how to
43 transition ARPA money and budget for those programs other ways.
44 Commissioner Bedford said it has been both CARES and ARPA money that has been
45 used for housing and other programs.
46 Bonnie Hammersley said all the CARES money has been spent.
47 Gary Donaldson noted that it all had to be spent by 12/31/21.
48 8. Consent Agenda
49
50 • Removal of Any Items from Consent Agenda
51 • Approval of Remaining Consent Agenda
37
1 Discussion and Approval of the Items Removed from the Consent Agenda
2
3 Chair Price noted corrections to consent items 8-e and 8-f. For item 8-e, there is a typo
4 in the resolution. The first "whereas" statement should read "Whereas, in November 2021 the
5 North Carolina Legislature passed and Governor Cooper signed into law the 2021-2022 State
6 Budget." For item 8-f, the expiration date for the appointment of Virginia Baeckler to the Chapel
7 Hill Library Advisory board should be June 30, 2025.
8
9 A motion was made by Commissioner Hamilton, seconded by Commissioner Fowler, to
10 approve the consent agenda with the proposed corrections.
11
12 Roll call ensued
13
14 VOTE: UNANIMOUS
15
16 a. Minutes
17 The Board approved minutes from the January 25, 2022 Assembly of Governments meeting.
18 b. Appointment of Deputy Tax Collector
19 The Board appointed Brandy Prince as a first-time Deputy Tax Collector for a partial term
20 effective February 18, 2022 and ending on June 30, 2023.
21 c. Fiscal Year 2021-22 Budget Amendment#8
22 The Board approved the budget amendment for Fiscal Year 2021-22.
23 d. Contract Amendment with Central Square for Generic XML Data Transfer Proiect with
24 Town of Chapel Hill
25 The Board approved and authorized the Manager to sign the amendment to the Central Square
26 contract and purchase of the Generic XML Data Transfer software upgrade, and authorized the
27 Manager to sign any future amendments to this contract with Central Square.
28 e. Approval of Stipends Increase for the Chapel Hill Carrboro City Schools Board of
29 Education
30 The Board approved and authorized the Chair to sign a resolution approving an increase in the
31 Chapel Hill Carrboro City School Board of Education member stipends effective July 1, 2021 as
32 follows: increase the Board Chair annual stipend to $5,124; increase the Board Vice-Chair
33 annual stipend to $4,381; increase the Board member annual stipend to $4,010.
34 f. Advisory Boards and Commissions —Appointments
35 The Board approved the recommended appointments as reviewed and discussed during the
36 February 8, 2022 Work Session.
37
38 9. County Manager's Report
39 Bonnie Hammersley said the Orange County Government Academy starts virtually on
40 February 22, 2022. She reviewed the agenda for the Board's February 22, 2022 Joint Meeting
41 with School Boards.
42 Commissioner Richards asked when schools' materials will be received.
43 Bonnie Hammersley said the Board will receive an agenda tomorrow with two
44 attachments from the schools.
45
46
38
1 10. County Attorney's Report
2 James Bryan presented on behalf of John Roberts, and indicated he has no updates to
3 report.
4
5 11. *Appointments
6 None.
7
8 12. Information Items
9 • February 1, 2022 BOCC Meeting Follow-up Actions List
10 • Memorandum Regarding Financial Report - Second Quarter FY 2021-22
11
12 13. Closed Session
13 None.
14
15 14. Adjournment
16 A motion was made by Commissioner Greene and seconded by Commissioner Fowler
17 to adjourn the meeting at 9:57 p.m.
18
19 Roll call ensued
20
21 VOTE: UNANMIOUS
22
23
24 Renee Price, Chair
25
26
27 Tara May
28 Deputy Clerk to the Board
29
30 Submitted for approval by Laura Jensen, Clerk to the Board.