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HomeMy WebLinkAboutMinutes-06-08-2023-Budget Work Session 1 APPROVED 9/5/23 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS BUDGET WORK SESSION June 8, 2023 7:00 p.m. The Orange County Board of Commissioners met for a Budget Work Session on Thursday, June 8, 2023, at 7:00 p.m. at the Whitted Human Services Center in Hillsborough, NC. COUNTY COMMISSIONERS PRESENT: Chair Jamezetta Bedford, Vice-Chair Earl McKee (arrived at 7:03 p.m.), and Commissioners Amy Fowler, Sally Greene, Jean Hamilton, Phyllis Portie-Ascott, and Anna Richards COUNTY COMMISSIONERS ABSENT: None. COUNTY ATTORNEYS PRESENT: John Roberts COUNTY STAFF PRESENT: County Manager Bonnie Hammersley, Deputy County Manager Travis Myren, and Clerk to the Board Laura Jensen. (All other staff members will be identified appropriately below) Chair Bedford called the meeting to order at 7:00 p.m. All commissioners were present, except Vice-Chair McKee. Chair Bedford indicated that Laura Jensen will send a Doodle Poll in order to reschedule the evaluations of the Manager, Attorney, and Clerk. 1. Discussion and Decisions on FY 2023-24 Operating Budget • Funding Decisions on the Operating Budget Amendment List • Funding Decisions for Chapel Hill-Carrboro City Schools and Orange County Schools o Current Expense (Per Pupil) The Board reviewed, discussed, and made decisions regarding the FY 2023-24 Manager's Recommended Orange County Annual Operating Budget and approved a Resolution of Intent to Adopt the FY 2023-24 Orange County Annual Operating Budget. BACKGROUND: The County Manager presented the FY 2023-24 Recommended Budget on May 2, 2023. Subsequently, the Board has conducted two public hearings to receive residents' comments regarding the proposed funding plan. In addition to the public hearings, the Board heard presentations and held discussions with representatives of the County fire districts, the local boards of education, representatives of the community college, and County Functional Leadership Teams as related to the proposed funding plan for FY 2023-24. Tonight's Agenda: Tonight's work session offers the Board an opportunity to discuss the recommended budget, including discussion and review of the Budget Amendment list. As soon as these discussions are completed, the Board will deliberate and make decisions regarding the FY 2023-24 Annual Operating Budget and approve a Resolution of Intent to Adopt the FY 2023- 24 Annual Operating Budget. The Board is scheduled to adopt the final FY 2023-24 Annual Operating Budget for Orange County at its Business meeting on June 20, 2023. Travis Myren, Deputy County Manager, made the following presentation: 2 Slide#1 i ORANGE COUNTY NORTH CARC3LINA FY2023-24 Budget Intent to Adopt Work Session Board of Commissioners Work Session June 8, 2023 Travis Myren reviewed the documents at the Commissioners' places, including the Resolution of Intent to Adopt template, the fund balance policy from 2017, and a red-line version of the Outside Agencies funding policy. Vice-Chair McKee arrived at 7:03 p.m. Slide #2 Decision Points 1. FY2023-24 Operating Budget • Consider and approve amendments to the County Manager's Recommended Operating Budget 2. FY2023-24 Capital Investment Plan • Consider and approve amendments to the County Managers Recommended Capital Investment Plan(CIP) 3. FY2023-24 County Fee Schedule • Consider and approve amendments to the County Managers Recommended Fee Schedule 4. FY2023-24 Tax Rates • Adopt a Countywide Ad Valorem(Property)Tax • Adopt a Special District Tax Rate for Chapel Bill -Carrboro City Schools District • Adopt tax rates for the County Fire Districts 2 OR oNGE�COUNTY 3 Slide #3 Decision Points 5. Break to finalize the Intent to Adopt Resolution 6. Resolution of Intent to Adopt • Approve the Resolution of Intent to Adopt the FY2023 -24 Operating Budget at the Business Meeting on June 20,2023 - Operating Budget forFY202224 - Year One(FY202324)ofthe Capital Investment Plan and Acceptance of the Ten Year Plan - Countywide Property Tax,Special District Tax,and Fire District Tax Rates - County Fee Schedule ORANGE COUNTY 3 NORTH CAROLINA Slide #4 Operating Budget Amendments Amendment Sponsor Budget Department Amendment Revenue Expense General # Page Fund . OPER-001 Bedford 191 Library Non- kdd funding to Town of $ $85,000 $85,000 Departmental hapel Hill Library PER-002 Bedford 67 Asset Aillize County Capital $6,000 $6,00 $ Management Reserve to perform Services Nand Cheeks ommunity Center Feasibility Stud OPER-003 Bedford 165 Housing Dept. Provide additional $158,059 $150,00 ($8,059) unding for IFC's ermanent Supportive ousing program. upported by.07 cent ax increase ORANGE COUNTY 4 NORTH CAROLINA Chair Bedford explained the process for reviewing and approving amendments. She said the Board will actually vote tonight unlike other work sessions, but it will be on a Resolution of Intent to adopt the budget on June 20th, rather than approving the budget itself. Chair Bedford reviewed budget amendment OPER-001, which she sponsored. She said she would like to increase funding for the Chapel Hill Library by $85,000. She said there is no impact on the tax rate. 4 Commissioner Fowler said this change would bring total funding back in line with the percentage that was previously funded before the MOU ran out. Commissioner Portie-Ascott said it looks like the County Manager recommended the amount requested by the Chapel Hill Library on page 179 of the budget document. Bonnie Hammersley said the Chapel Hill Library does not send in a budget request and she recommended the base budget from the previous year. She said her recommendation was made prior to the completion of the report from the Library Task Force. Chair Bedford said since the Board did not adopt the MOU as recommended by the Library Task Force, which would have resulted in a budget amendment by staff, she brought it forward. She said the funding for this amendment would come from various sources. Commissioner Richards asked if the additional $85,000 was recommended in the County Manager's budget. Bonnie Hammersley said no, she recommended funding at the same dollar amount as the prior year. Chair Bedford said the base budget is $536,323. Bonnie Hammersley said since she did not recommend an increase, any additional funding has to be approved by a budget amendment. Commissioner Richards asked how the $85,000 will be funded. Bonnie Hammersley said there are three staff amendments that will produce $85,000 for this amendment and are on slide #7. Vice-Chair McKee said he isn't sure he will support this amendment. He said there are increased costs to the county library, and he still has issues with what he perceives as a lack of interoperability. He said he thinks the Chapel Hill Library does a great job, but it was the town's decision to build the library and it is their responsibility to fund it. He said he is aware that a number of out-of-town residents use the library, but he doesn't think he can support this. A motion was made by Chair Bedford, seconded by Commissioner Fowler, to approve budget amendment OPER-001. VOTE: Ayes, 6 (Commissioner Hamilton, Commissioner Richards, Commissioner Fowler, Chair Bedford, Commissioner Greene, Commissioner Portie-Ascott); Nays, 1 (Vice-Chair McKee) MOTION PASSES Chair Bedford reviewed budget amendment OPER-002, which she sponsored. The amendment is detailed in the table slide #4. She said the feasibility study at Efland Cheeks Community Center could show whether it's more cost effective and appropriate to enclose the back patio or get a temporary mobile unit, and staff could bring a report back to the Board to inform a decision. She said the $6,000 for the study will come from the Capital Reserve fund. A motion was made by Chair Bedford, seconded by Vice-Chair McKee, to approve budget amendment OPER-002. VOTE: UNANIMOUS Chair Bedford reviewed budget amendment OPER-003, which she sponsored. She said she would like to utilize a .07 cent tax increase to provide $150,000 to support the Interfaith Council's Permanent Supportive Housing program. She said permanent supportive housing is identified as the highest need by the Partnership to End Homelessness Leadership Team. She said permanent supportive housing involves intensive case management, often for residents with 5 no income. She said Corey Root, Housing and Community Development Director, and Rachel Waltz, Homeless Programs Coordinator, are present for any questions. A motion was made by Chair Bedford, seconded by Commissioner Greene, to approve budget amendment OPER-003. Commissioner Portie-Ascott asked how this tax increase will weigh out with other upcoming amendments that ask for a tax rate decrease. Chair Bedford said depending on the other amendments that are approved, there may not be a tax increase, or it may be less than the County Manager recommended. VOTE: UNANIMOUS Slide #5 Operating Budget Amendments BudgetAmendment Sponsor # Page Fund Total PER4)04 Fards 114 GJRD Create OC Build Pilot S90,000 $90,0 $0 Program, conditional on receiving offsetting revenue firom ABC Board($70k)and oCH Police Dept, ($20k OPER-005 Hamilton 224 Sportsplex Have Sportsplex pay back $158,000 SO ($158,000) 20%of Pandemic recovery funding to GF. OPER-005a Hamilton 224 Sportsplex ($158.059) SO $158,059 Reduce Tax Rate by.07 OPER4006 Hamilton 224 Visitors Have Visitors Bureau pay $112,000 $0 ($112,000) Bureau back 20%of Pandemic recovery funding to GF. ORANGE COUNTY 5 NORTH CAROLINA Commissioner Richards reviewed budget amendment OPER-004, which she sponsored. She said the Board had a discussion about OC Build previously with Cait Fenhagen and the Criminal Justice Resource Department. She said the expected revenue from the ABC Board and Chapel Hill Police Department is not yet approved but would like for the Board to allocate $90,000 to help with this pilot program. A motion was made by Commissioner Richards, seconded by Commissioner Fowler, to approve budget amendment OPER-004. VOTE: UNANIMOUS Commissioner Hamilton reviewed budget amendment OPER-005, which she sponsored. She said she is glad the county could cover the needs of the Sportsplex during the pandemic, but believes it is important for the Sportsplex to pay the money back now that they have financially recovered. She said every dollar spent means it is not available for other needs, and believes it is good stewardship to ask the Sportsplex to pay the money back as they are able. She said the amendment calls for 20% to be paid back next fiscal year, and a plan will be made for the full amount to be paid back so Sportsplex operations are not interrupted. 6 Vice-Chair McKee asked if the amount is to be paid back over time. Chair Bedford clarified that the full amount would be paid back overtime, and 20% is asked to be paid back next fiscal year. Commissioner Portie-Ascott asked what the expectation was when the Sportsplex was given the money. Bonnie Hammersley said the general fund is a safety net fund for enterprise funds and special revenue funds. She said the county can't leave these funds in a deficit and is required to make sure all funds are in positive stance at the end of the year. She said at the time the money was given, the Sportsplex enterprise fund was not going to be in a positive stance. She said there was no agreement or discussion that the money would or wouldn't be paid back. Travis Myren said the managing partner at the Sportsplex is aware of this amendment and didn't express any concerns. Commissioner Portie-Ascott asked if this is an outside agency. Bonnie Hammersley explained that the Sportsplex is a county department but is also an enterprise fund and the Visitors Bureau is a special revenue fund. Chair Bedford added that Solid Waste is also an enterprise fund. A motion was made by Commissioner Hamilton, seconded by Vice-Chair McKee, to approve budget amendment OPER-005. Commissioner Greene asked if this amendment has any implication on the upcoming amendment to cut $20,000 in Article 46 funding for the Durham Tech Innovation Hub. She said she doesn't plan to support that amendment. Chair Bedford said no because the amendment currently being discussed impacts the general fund, not Article 46 proceeds. VOTE: UNANIMOUS Commissioner Hamilton explained budget amendment OPER-005a, which she sponsored. She said OPER-005 will reduce the proposed tax rate and OPER-005a reflects that change. She said she hoped not to increase taxes this year and thinks it's an important exercise of good stewardship for county commissioners to find areas to save when spending more in other areas. A motion was made by Commissioner Hamilton, seconded by Commissioner Fowler, to approve OPER-005a. VOTE: UNANIMOUS Commissioner Hamilton reviewed budget amendments OPER-006 and OPER-006a, which she sponsored. She said OPER-006 calls for the Visitors Bureau to pay back the money the county provided during the pandemic using the same rationale as OPER-005. She said this would result in a tax rate reduction of .05 cents. A motion was made by Commissioner Hamilton, seconded by Commissioner Fowler, to approve budget amendments OPER-006 and OPER-006a. VOTE: UNANIMOUS Slide #6 Operating Budget Amendments Amendment Sponsor Budget Department Amendment Revenue Expense General # Page Fund Total OPER-006a Hamilton 224 Visitors ($112,890) $0 ($112,890) Bureau Reduce Tax Rate by-05 OPER-007 Hamilton 64 Article 46 Cut$20,000 in Article 46 funding for Durham Tech Innovation Hub. reallocated to County Economic Development pool, OPER4008 Fowler 299 Policies Return Fund Balance Policy to 2017 version (attached) to be _ discussed in Fall. OPER-009 Bedford NIA Policies Amend the Outside Agency Funding Policy (attached) to remove fundin target ORANGE COUNTY 6 NORTH CAROLINA Commissioner Hamilton explained budget amendment OPER-007, which she sponsored. She said she would like to withdraw this amendment. She said after reviewing the information Durham Tech sent about the Innovation Hub, she thinks the Board should support it. She added that she will bring a future petition to renegotiate the funding that the county already provides for Launch and including Durham Tech's presence at the Innovation Hub in that cost. Vice-Chair McKee said he appreciates Commissioner Hamilton for reconsidering this amendment. Commissioner Richards said there are two items related to Durham Tech that she would like to put forward as amendments at this time. She said she would like to fund $10,000 for the staff Recruitment and Retention fund and $8,000 for the Apprenticeship Coordinator position. A motion was made by Commissioner Richards, seconded by Vice-Chair McKee, to fund the Apprenticeship Coordinator position at Durham Tech in the amount of$8,249 from Article 46 funds. VOTE: UNANIMOUS Chair Bedford asked what source should be used to fund the $10,000 to fund the Recruitment and Retention position. Travis Myren said there are extra funds in the Social Justice Fund that can be used to balance the general fund. A motion was made by Commissioner Richards, seconded by Commissioner Greene, to fund the Recruitment and Retention position at Durham Tech in the amount of$10,000. VOTE: UNANIMOUS Commissioner Fowler explained budget amendment OPER-008, which she sponsored. She explained she would like to return to using the previous fund balance policy and would like 8 to have a work session in the fall to see how the County Manager's new recommended fund balance policy would work. A motion was made by Commissioner Fowler, seconded by Chair Bedford, to approve budget amendment OPER-008. VOTE: UNANIMOUS Chair Bedford explained OPER-009, which she sponsored. She said she likes the outside agencies funding process the County Manager has implemented overall. She said she would like to remove the funding target for outside agencies in order to provide more flexibility based on county needs. A motion was made by Chair Bedford, seconded by Vice-Chair McKee, to approve budget amendment OPER-009. Commissioner Greene said she is fine with seeing how this goes. VOTE: UNANIMOUS Commissioner Fowler asked if the Board should make budget amendments on outside agency funding recommendations based on the change in state law last year, and asked if staff gives feedback to applicants who were not funded. Bonnie Hammersley said staff shares the scoring matrix with outside agencies that applied which tells the applicant what they can do better. Chair Bedford said none of the commissioners serve on the boards for the outside agencies, but they might need to ask the County Attorney. Bonnie Hammersley said since none of the commissioners are on the boards for the outside agencies,they are welcome to make amendments. She said if they want to make a budget amendment on the outside agency recommendations, she would encourage them to review the scoring matrix to understand why recommendations were made. Vice-Chair McKee said previous Boards were given $500,000 and there was on-the-fly negotiating to allocate funding to agencies. He said he likes this policy better. He said some agencies have called him upset, and he understands, but the scoring is done through a matrix by individuals with knowledge of the agency's work. Commissioner Greene said there were times when an agency would come to the Chapel Hill Town Council when she served and ask for the money, and she said it becomes very politicized. She said the Board has the final say, but this process is rational and thorough and involves people who know what the needs are. Commissioner Richards said she supports this process, but her concern was how the process is made available to new agencies that haven't received funding before. She said she has since had a conversation with the County Manager about how that process works. Commissioner Portie-Ascott asked if there is a list of the outside agencies in the budget. Bonnie Hammersley said if the Board hears from outside agencies, to direct them to her and she will be happy to meet with them. Travis Myren said the specific outside agency list is not in the budget, but he can send that. Chair Bedford said the outside agency list was included in materials for the first budget work session. She added that there are thousands of non-profits that do great work, but like the County Manager said, their work needs to complement the county's work and responsibilities to receive this specific funding. 9 Slide #7 Operating Budget Amendments :Amendment Budget General # Sponsor Page Department Amendment Revenue Expense Total OPER-010 Staff 212 SS Add 50%offsetting $37,49 $ ($37,490 rl venue for new DSS �Community rTechnician FTEs. OPER-011 Staff 113 Courts Ndd One-Time $20,00 $ ($20,000 ounty Capital to ffsetbadge eaders/security ipgrades OPER-012 Staff 189 Human Reduce Funding to $0 ($20.400) ($20,400 Services Non- Social Justice Departmental Reserve Fund to balance budget TOTAL .00 $310,600 so ORANGE COUNTY 7 NORTH CAROLINA A motion was made by Commissioner Hamilton, seconded by Vice-Chair McKee to approve budget amendments OPER-010 and OPER-011. VOTE: UNANIMOUS A motion was made by Commissioner Greene, seconded by Commissioner Hamilton, to approve budget amendment OPER-012, at a new cost of$30,400. VOTE: UNANIMOUS 2. Discussion of FY 2023-24 Capital Investment Plan • Funding Decisions on the Capital Investment Plan Amendment List • Accept FY 2023-33 Capital Investment Plan and Approve the Intent to Adopt Capital Funding for FY 2023-24 The Board discussed the FY 2023-33 Capital Investment Plan, accepted the Ten Year Capital Investment Plan, and approved the Intent to Adopt Capital Funding for FY 2023-24. BACKGROUND: For over 20 years, the County has produced a Capital Investment Plan (CIP) that establishes a budget planning guide related to capital needs for the County as well as Schools. The current CIP consists of a 10-year plan that is evaluated annually to include year- to-year changes in priorities, needs, and available resources. Approval of the CIP commits the County to the first year funding only of the capital projects. All other years are used as a planning tool and serves as a financial plan. Capital Investment Plan — Overview The FY 2023-33 CIP includes County Projects, School Projects, and Proprietary Projects. The School Projects include Chapel Hill-Carrboro City Schools, Orange County Schools, and Durham 10 Technical Community College — Orange County Campus projects. The Proprietary Projects include Water and Sewer, Solid Waste Enterprise Fund, and Sportsplex projects. The CIP has been prepared anticipating moderate economic growth of approximately 2% in property tax growth and 4% sales tax growth over the next ten years. Many of the projects in the CIP will rely on debt financing to fund the projects. The items below include revisions made to the following Capital Projects since the presentation of the Manager's Recommended Capital Investment Plan on April 4, 2023: • As a part of the annual budget process, adjustments are made to the allocation of school funding based on changes to the FY 2023-24 budgeted average daily membership (ADM) percentages. At the time of the Capital Improvement Plan presentation, only FY 2022-23 ADM information was available. The impact of these numbers changed the CHCCS percentage from 58.78% to 58.44%, and changed the OCS percentage from 41.22% to 41.56%. This adjustment is accounted for prior to the Board amendment to adjust the Article 46 capital allocation policy. Travis Myren continued the following presentation: Slide #8 Capital Investment Plan Amendments AmendFi*nt X Sponsor cip Buqet Department Arniandment Revenue Expense Page IP-001 Bedford 114 Sow Capdal hangs Prrcy for allocallon of Article 46 prooeedis to S S hool ds*t try exdukg Charier Students In This prowdos CHCCSan s"lonal 375,643 n Nokg for technology coal expenses, and duces 005's fundng by the some amount_ :AP-= Greene 35 Housing forward$5M f w"for Affordable Housing S 5X0,004 S 5,000,000 mjeet from year 2(FY 2024.25)to year 1(FY 2023• 4) ORANGE COUNTY 8 NC)RTF3 t'ARC3LII1JA Chair Bedford explained budget amendment CIP-001, which she sponsored. She said this amendment proposes changing the formula for distribution of Article 46 proceeds to the school districts to exclude charter students. She said this money is used for technology and does not flow out to charter students like the per pupil funding does. She said it doesn't make sense to fund technology for students who are not in the building. She said she is not proposing changing all of capital funding to exclude charter students in the formula because there are still fixed costs associated with capital that would not change because a group of students goes to a charter 11 school. She said she would also like to hear the needs from the school capital needs consultant before making any further capital funding decisions. A motion was made by Chair Bedford, seconded by Commissioner Fowler, to approve budget amendment CIP-001. Vice-Chair McKee asked how this isn't discriminatory. Chair Bedford said capital funding does not flow out to charter students. Vice-Chair McKee said this explicitly excludes funding charters. He said this would change the allocation of Article 46 funds for each district. Chair Bedford said the total dollar amount is exactly the same. Vice-Chair McKee asked how Chapel Hill-Carrboro City Schools (CHCCS) gains funding and Orange County Schools (OCS) loses funding based on the proposed formula change. Chair Bedford said the Board funds the per pupil amount for operating for charter students, however, she said it doesn't make sense to include charter students in the ADM for technology because they are not in OCS to use the technology. Commissioner Fowler said for operations, both districts have to fund charter schools, so the per pupil amount flows out to charter schools. She said Article 46 money used for technology does not flow out to the charter schools. She said this amendment would help fund the students who are actually in the school buildings equitably, so they all get the same amount. Vice-Chair McKee said he is missing how OCS would lose funding and CHCCS would gain funding. Chair Bedford said this amendment would actually make the ADM ratios more equitable for students in each district for the purposes of technology funding. Vice-Chair McKee said he plans to vote against this amendment. He said excluding charter students got his attention. Chair Bedford said all capital dollars exclude charter students. Vice-Chair McKee said this proposes shifting money, but he doesn't understand how. Chair Bedford said this shifts money from OCS to CHCCS based on the actual number of students in the building. Vice-Chair McKee said it decreases the total funding to OCS for technology. Chair Bedford said yes it does. Commissioner Greene said it does because it's based on real numbers of students in the classroom. Commissioner Richards said another way to think of it is that $75,000 of technology funding is not needed in OCS because those students are not in OCS seats. Vice-Chair McKee said he can accept it, but still doesn't support it. Commissioner Portie-Ascott said the argument makes sense, but it seems like OCS is already under-resourced and CHCCS has more resources, so it feels wrong to take money from OCS. Vice-Chair McKee said he agrees that it doesn't feel right because CHCCS has the special district tax. VOTE: Ayes, 4 (Commissioner Richards, Commissioner Fowler, Chair Bedford, Commissioner Greene); Nays, 3 (Commissioner Hamilton, Vice-Chair McKee, Commissioner Portie-Ascott) MOTION PASSES Commissioner Greene explained budget amendment CIP-002, which she sponsored. She thanked the County Manager for proactively putting $15 million in the capital budget over the 12 years. She said this amendment is intended to make available the first $5 million in year one rather than year two of the CIP. She said she thinks this is a good idea and it's also responsive to Habitat's request on behalf of the Affordable Housing Coalition to make funding available for shovel-ready projects that would be ready to apply for this money. She said a process will need to be determined for how to allocate the money, but this amendment asks to move the money up to year one in the CIP. A motion was made by Commissioner Greene, seconded by Vice-Chair McKee, to approve budget amendment CIP-002. VOTE: UNANIMOUS Chair Bedford said in the first year of the CIP, Phase 3 for Blackwood Farm Park is included. She said she wanted staff for the Department of Environment, Agriculture, Parks and Recreation to know that the Board will likely not be able to fund similar projects in the coming years because of the state of county and school facility needs. Travis Myren continued the following presentation: Slide #9 Recommended School Funding PupilPer Special District Tax for Chapel Hill-Carrboro City Schools Total Current Expense Budget $102,942,576 District Total Countywide Budgeted Students 19,256 — 1.5 cent increase from 18.30 cents Per Pupil Amount $5,346 to 19.80 cents per$100 of valuation — Special District Tax adds$2,465 per pupil to Countywide rate Budgeted •. District District -7 Students Per Pupil � Allocation — Total Special District Tax at the new CHCCS 11,253 $5,346 $60,158,538 tax rate generates total of$27.7 million OCS 8,003 $5,346 $42,784,038 ORANGE COUNTY 9 NORTH CAROLINA 13 3. Discussion and Decision on the FY2022-23 County Fee Schedule Travis Myren continued the following presentation: Slide #10 County Fee Schedule • No amendments proposed ORANGE COUNTY 10 Ni3R-11i CARC31.11NA 4. Discussion and Decision on the FY 2023-24 Tax Rates • County Ad Valorem Tax • Chapel Hill-Carrboro City Schools Special District Tax • Fire District Tax Rates Travis Myren continued the following presentation: Slide #11 Tax Rates • Approve the Countywide Ad Valorem(Property)Tax Table I Rate County Fire District FY2023-24 rate based on approved operating budget Cedar Grove 9.00 amendments Chapel Hill 13.87 Damascus 12.80 • Approve the Chapel Hill -Carrboro City Schools Efland 10.28 Special District Tax Rate - 19.80 cents Eno 9.98 Little River 7.39 New Hope 12.57 • Approve the County Fire District Tax Rates in Orange Grove 8.27 Table 1 orange Rural 10.49 South Orange 9.09 Southern Mangle 12.80 White Cross 13.84 ORo.I TGE�COUNATY 14 Travis Myren said pending the Board's action, the Ad Valorem Tax Rate would become 83.53 cents per $100 of assessed value. Commissioner Richards asked what the change was between the County Manager's recommended tax rate increase and what the increase is after the budget amendments. Travis Myren said the increase was .46 cents and will now be .41 cents. 5. Break(to allow Budget staff to formulate the Draft Resolution of Intent to Adopt FY 2023- 24 Operating Budget) A motion was made by Chair Bedford, seconded by Commissioner Fowler, to recess the meeting for 12 minutes. VOTE: UNANIMOUS A motion was made by Commissioner Hamilton, seconded by Commissioner Fowler, to reconvene the meeting at 8:21 p.m. VOTE: UNANIMOUS 6. Resolution of Intent to Adopt FY 2023-24 Annual Operating Budget • Approval of Resolution of Intent to Adopt FY 2023-24 Annual Operating Budget at the Board of County Commissioners Regular Meeting on June 20, 2023 Kirk Vaughn, Budget Director, reviewed the following resolution: Resolution of Intent to Adopt the FY2023-24 Orange County Budget The items outlined below summarize decisions that the Board acted upon June 8, 2023 in approving the FY2023-24 Orange County Annual Operating Budget and the FY2023-24 (Year 1) Capital Investment Plan Budget. WHEREAS, the Orange County Board of Commissioners has considered the Orange County FY2023-24 Manager's Recommended Budget and the FY2023-24 Manager's Recommended Capital Investment Plan Budget; and WHEREAS, the Commissioners have agreed on certain modifications to the Manager's Recommended Budget as presented in the FY2023-24 County Manager's Recommended Budget on May 2, 2023; and to the FY2023-24 Manager's Recommended Capital Investment Plan Budget as presented on April 4, 2023; NOW THEREFORE BE IT RESOLVED, that the Orange County Board of Commissioners expresses its intent to adopt the FY2023-24 Orange County Budget Ordinance on Tuesday, June 20, 2023, based on the following stipulations: 1) Property Tax Rates a) The ad valorem property tax rate shall be set at 83.53 cents per $100 of assessed valuation. b) The Chapel Hill-Carrboro City Schools District Tax shall be set at 19.80 cents per $100 of assessed valuation. 15 c) The Fire District and Fire Service District tax rates shall be set at the following rates (all rates are based on cents per $100 of assessed valuation): • Cedar Grove 9.00 • Greater Chapel Hill Fire Service District 13.87 • Damascus 12.80 • Efland 10.28 • Eno 9.98 • Little River 7.39 • New Hope 12.57 • Orange Grove 8.27 • Orange Rural 10.49 • South Orange Fire Service District 9.09 • Southern Triangle Fire Service District 12.80 • White Cross 13.84 2) County Employee Pay and Benefits Plan Provide a County employee pay and benefits plan that includes: a. 6% wage increase for permanent employees in active status on June 30, 2023. Continuation of Merit Pay Program on employees' base salaries, payable in January 2024, at tiers of$530 for proficient performance; $795 for superior performance or $1,060 for exceptional performance. Page 238 b. Revision to Section 28-52 of the Orange County Code of Ordinances: Shared Leave. Page 260 c. Revision to Premium Equivalent Option to Co-Parenting Orange County Employees. Page 261 d. A change in the salary schedule recognizing $16.60 per hour as the living wage for permanent employees and recognizing the 6% wage increase, effective July 1, 2023. Page 262 e. Increase the per pay period County contribution to non-law enforcement employees' supplemental retirement accounts to $29.15 and the County matching employees' contributions up to $67.00 per pay period (for a maximum annual County contribution of $1,742) for all general (non-sworn law enforcement officer) employees; continue the mandated Law Enforcement Officer contribution of 5.0% of salary, and continue the County's required contribution to the Local Governmental Employees' Retirement System (LGERS) for all permanent employees. For FY 2023-24, the Law Enforcement Officers (LEOs) rate increases from 13.10 to 14.10 percent of reported compensation, and all other employees' rate increases from 12.10 to 12.85 percent of reported compensation. Page 256 f. Continue to participate in the North Carolina Health Insurance Pool (NCHIP), and continue medical and prescription third party administrators with Blue Cross Blue Shield of North Carolina (BCBSNC) and Prime Therapeutics, a division of BCBSNC, respectively. No increase to health and dental appropriations. Increase funding of 5% 16 to the Health Insurance Premium Equivalents for both active and pre-65 retirees with the amount of the increase to be fully paid by the County. Page 259 g. Add UNUM Behavioral Health benefit. Page 260 3) Adjustments to Operating And Capital Budget Adjustments to the Manager's Recommended FY2023-24 GF Operating Budget On June 8, 2023, the Board of County Commissioners approved the following changes to the Manager's Recommended annual operating budget for the 2023-24 fiscal year. The information below summarizes changes made by the Board. Revenues Increase Decrease Manager's Recommended Revenue Budget $279,194,928 Utilize County Capital Reserve to perform Efland Cheeks Community Center $6,000 Feasibility Study Provide additional funding for IFC's Permanent Supportive Housing program. $158,059 Supported by .07 cent tax increase Create OC Build Pilot Program, conditional on receiving offsetting revenue from $90,000 ABC Board($70k)and Chapel Hill Police Dept. ($20k) Have Sportsplex pay back 20%of pandemic recovery funding to General Fund $158,000 Reduce Tax Rate by .07 ($158,059) Have Visitors Bureau pay back 20%of pandemic recovery funding to General $112,000 Fund. Reduce Tax Rate by .05 ($112,890) Add 50%offsetting revenue for new DSS Community Technician FTEs. $37,490 Add One-Time County Capital to offset badge readers/security upgrades $20,000 Total Revenue Changes $581,549 $270,949 Revised Revenue Budget 279,505,528 Expenditures Increase I Decrease Manager's Recommended Expenditure Budget $279,1945928 Increase funding to Town of Chapel Hill Library $85,000 Utilize County Capital Reserve to perform Efland Cheeks Community Center $6,000 Feasibility Study Provide additional funding for IFC's Permanent Supportive Housing program. $150,000 Supported by .07 cent tax increase Create OC Build Pilot Program, conditional on receiving offsetting revenue from $90,000 ABC Board($70k)and Chapel Hill Police Dept. ($20k) Increase Durham Tech Current Expense for recruitment and retention fund $10,000 Reduce Funding to Social Justice Reserve Fund to balance budget ($30,400) Total Expenditure Changes 1 $341,000 $30,400 Revised Expenditure Budget 1 $279,5055528 17 Adjustments to the Manager's Recommended FY2023-24 CIP Budget On June 8, 2023, the Board of County Commissioners approved the following changes to the Manager's Recommended CIP Funding for Year 1 (2023-24 fiscal year). The information below summarizes changes made by the Board. Expenditures Increase I Decrease Manager's Recommended County Projects CIP Budget for Year 1 (FY 23-24) $23,888,432 County Projects: Bring forward$5M funding for Affordable Housing project from year 2(FY 2024-25)to year $5,000,000 1 (FY 2023-24) Total Expenditure Changes $5,000,000 $0 Revised County CIP Budget for Year 1 (FY 23-24) $28,888,432 Expenditures Increase I Decrease Manager's Recommended Schools CIP Budget for Year 1 FY23-24 $25,992,243 Change Policy for allocation of Article 46 proceeds to school district by excluding Charter Students in formula. This provides CHCCS an additional$75,543 in funding for technology capital expenses and reduces OCS's funding by the same amount. Total Expenditure Changes $0 $0 Revised School CIP Budget for Year 1 FY 23-24 $25,992,243 4) Changes in County Staff Positions (Increase in FTE Approved). Department Position Name Fund Start Date FTE Criminal Justice Resource Department Grant Management Specialist General Fund 7/1/2023 0.500 Criminal Justice Resource Department Admin Support II General Fund 7/1/2023 0.250 Criminal Justice Resource Department YBH Liaison General Fund 7/1/2023 0.250 Dept. of the Env,Ag, Parks, and Rec. Recreation Program Assistant General Fund 7/1/2023 1.000 Emergency Services Community Paramedic General Fund 12/1/2023 1.000 Emergency Services Crisis Resource Specialist General Fund 11/1/2023 1.000 Emergency Services Logistics Specialist General Fund 7/1/2023 1.000 Fleet Admin Support I General Fund 7/1/2023 1.000 Health Accounting Technician II General Fund 7/1/2023 1.000 Health Billing Technician General Fund 7/1/2023 1.000 Housing Community Development Specialist General Fund 7/1/2023 1.000 Housing Housing Grants Coordinator General Fund 7/1/2023 1.000 Sheriff Detention Officer General Fund 7/1/2023 4.000 Social Services Community Social Services Technician General Fund 7/1/2023 1.000 Social Services DSS Human Services Coordinator I General Fund 7/1/2023 1.000 Social Services Human Services Specialist I General Fund 7/1/2023 6.000 Social Services Human Services Supervisor I General Fund 7/1/2023 1.000 Social Services Human Services Tech General Fund 7/1/2023 1.000 Criminal Justice Resource Department OC Build Coordinator General Fund 7/1/2023 1.000 Asset Management Services Capital Projects Field Coordinator Debt Service Fund 7/1/2023 1.000 County Manager/Arts Commission Programs Coordinator Visitors Bureau Fund 7/1/2023 1.000 Planning&Inspections Property Development Coordinator Inspections Fund 7/1/2023 1.000 Solid Waste SW Facilities Tech I Solid Waste Fund 7/1/2023 1.000 Solid Waste SW Collector Supervisor Solid Waste Fund 1/1/2024 1.000 Solid Waste SW Collector Driver Solid Waste Fund 3/1/2024 3.000 Totals 33.000 18 5) General Fund Appropriations for Local School Districts The following FY2023-24 General Fund Appropriations for Chapel Hill-Carrboro City Schools and Orange County Schools are approved: a) Current Expense appropriation for local school districts totals $102,942,576 and equates to a per pupil allocation of$5,346 1) The Current Expense appropriation to the Chapel Hill-Carrboro City Schools is $60,158,538 2) The Current Expense appropriation to the Orange County Schools is $42,784,038. b) School Related Debt Service for local school districts totals $21,322,130. c) Additional net County funding for local school districts totals $6,588,025. (1) School Resource Officers and School Health Nurses Contracts - total appropriation of$3,888,025 to cover the costs of School Resource Officers in every middle and high school, and a School Health Nurse in every elementary, middle, and high school in both school systems. (2) Recurring Capital —total pay-as-you-go funding of$2,700,000 to cover recurring capital funding at both school districts. These funds support facility improvements, equipment and furnishings and vehicle purchases for the districts. The remaining $300,000 for recurring capital is provided by debt financing through the Capital Investment Plan. 6) Capital Investment Plan Funding for FY2023-24 (Year 1) The following FY2023-24 (Year 1) Capital Investment Plan Appropriations are approved: a) Overall Total Capital Investment Plan Funding of$58,436,700 b) County Capital Projects Funding of$28,888,432 c) School Capital Projects Funding of$25,992,243 d) Solid Waste Project Funding of$2,556,025; and Sportsplex Project Funding of $1,000,000 7) County Fee Schedule To adopt the County Fee Schedule to include changes in the FY2023-24 Manager's Recommended Annual Operating Budget and approved by the Board of County Commissioners on June 8, 2023. A motion was made by Vice-Chair McKee, seconded by Commissioner Fowler, to approve the resolution of intent to adopt the FY 2023-24 Annual Operating Budget at the Board of Commissioners Regular Meeting on June 20, 2023. VOTE: UNANIMOUS Chair Bedford thanked staff for their work on the budget this year. Vice-Chair McKee said having sat through some budget presentations that were less than understandable, he said the County Manager and staff need to be commended for putting together a great budget and presenting it in a way that was easily understandable. 19 Adjournment A motion was made by Commissioner Richards, seconded by Commissioner Hamilton, to adjourn the meeting at 8:30 p.m. VOTE: UNANIMOUS Jamezetta Bedford, Chair Recorded by Tara May, Deputy Clerk to the Board Submitted for approval by Laura Jensen, Clerk to the Board.