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HomeMy WebLinkAboutMinutes 01-19-2024 - Retreat 1 APPROVED 2120/24 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS RETREAT January 19, 2024 9:00 a.m. The Orange County Board of Commissioners met for a retreat on Friday, January 19, 2024 at 9:00 a.m. at Southern Human Services Center in Chapel Hill, NC. COUNTY COMMISSIONERS PRESENT: Chair Jamezetta Bedford, Vice-Chair Sally Greene, and Commissioners Amy Fowler, Jean Hamilton, Earl McKee, 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 9:05 a.m. All commissioners were present. Laura Jensen led the Board and others in attendance in a brief ice breaker exercise. Strategic Plan Discussion — Final Draft Presentation Charline Kirongozi, of Berry Dunn consultants, made the following presentation: Slide #1 Orange County Strategic Plan Board of Commissioners Work Session January 19,2024 r� b B e r r y D u n n oru rFH COUNTY OLINA NORTH GROLINA 2 Slide #2 Mission What you do now For whom How you do it Guiding Principles Vision How does the community 1 Where you're going carry out its mission? 1%1i/ .. What you want your How does it Interact with mission to achieve the community? for your community Strategic Priorities What is the focus to move btoward the vision? Slide #3 How Does It All Fit Together? StatementMission Strategic • '• Strategic Priority •rity 2 Priority 3 Priority ® ®®®� Guiding Principles 3 Slide #4 Mission Statement, Vision Statement, and Guiding Principles The mission statement describes an organization's purpose or reason for existing. It is the public statement of the contribution it promises to make to Guiding principles are the precepts that help accomplish the community vision. It answers guide an organization throughout its life in the questions: Why do we exist?What do we do? all circumstances,irrespective of changes in its goals,strategies,type of work or the top management.They are expectations Avision statement defines your desired future state for how the County will conduct its and provides direction for where Lauderhill is going business,make decisions,and deliver as a community.It answers the question: What will programs and services to the community. Orange County look and feel like 5 years from now? 20 years from now? 5) AA Slide #5 Mission Statement and Vision Statement Mission Statement Vision Statement Orange County is a visionary leader in We are a diverse,inclusive,and healthy county providing governmental services valued by working together to strengthen our community our community,including those required by and enhance the quality of life for all residents. law,in an equitable,sustainable,innovative, and efficient way. b� 4 Slide #6 Mission Statement: Feedback FThe Mission Statement answers the question,"What do we do?" •62%of respondents somewhat agree •31%of respondents extremely agree '67 responses' I no Iviission ilalomont is actionable and couldr F I County orange County isa •64%of respondents somewhat agree `64 responses' visionary leader in •31%of respondents extremely agree providing governmental services fi4 responses'F •62%of respondents somewhat agree valued b y our •19%of respondents extremely agree community, including those required by law,in an equitable, •Remove"visionary"(12 comments)and change"to Orange County provides government services" sustainable •Add"committed to being'after"Orange County is` '64 responses' , •The statement is not specific and is vague innovatl ve,and •Remove"providing governmental services valued by our community" efficient Way. •"Add"seeks to be"before°a visionary leader" •Remove"those required by law'(15 comments)or update to'beyond those required by law' b Vice-Chair Greene said she liked the suggestion to change the statement to"beyond those required by law." Commissioner Richards asked for information about the feedback from the community on the mission statement. Charline Kirongozi said that some in the community thought"visionary" was a buzz word, and some asked what was meant by the word. Commissioner Portie-Ascott said she liked leaving the word in, because it showed a commitment to striving for better. Commissioner Fowler said some parts of county government are visionary, and some parts show the county striving to be visionary. She said she didn't feel strongly either way, but she said including the word "strive" does change the impact of the statement. Vice-Chair Greene said she didn't like the word "strive." She suggested "aims to be." Commissioner Portie-Ascott asked if the number of respondents (67) was enough to warrant changes to the mission statement. Charline Kirongozi said the mission statement was available on the social pinpoint site for community feedback. She said that at this stage there is usually less input. She said most people feel that they've had input at an earlier stage. Vice-Chair Greene asked how representative 67 responses are of the county. Charline Kirongozi said the number is not representative relative to the size of the county. Commissioner Fowler said that the word "visionary" is not in the vision statement, so it is useful to keep it in the mission statement. Commissioner Hamilton said that she didn't think the mission statement needed to be changed. She felt that it was important to focus on the performance measures and objectives. Vice-Chair Greene said she thought it was important to change the statement to "beyond those required by law." Commissioner Richards said that"visionary"felt vague and thought the word "leader"was more specific. Commissioner Hamilton said she was ok with taking "visionary" out. Commissioner Fowler said she felt "visionary" felt different than "leader." 5 Vice-Chair Greene said she felt the word "visionary" implied creativity and proactive efforts. Commissioner McKee said he wasn't concerned about the precise wording. He felt it was more important to focus on actions. The Board decided to change the mission statement to "Orange County is a visionary leader in providing governmental services valued by our community, beyond those required by law, in an equitable, sustainable, innovative, and efficient way." Slide #7 Vision Statement: Feedback The Vision Statement an swersthe question, VVI­at do we want to be in the future?" '65responses° •41%of respondents somewhat agree •48%of respondents extremely agree inspiring,The Vision Statement is ' ' ill ll We are a •44%of respondents somewhat agree '65 responses` diverse •46 of respondents extremely agree , inclusive,and needsThe Vision Statement healthy county •36%of respondents somewhat agree "63 responses' working •20%of respondents extremely agree together to ,r a mbitious,and answer the question, Where do we want to be in the future?" strengthen our -Remove healthy(14 comments)— It doesn't make sense to suggest the county(population?)Is diverse and inclusive,yet at community the same time all in good health_" •Improve to show what the County is working towards and enhance •Needs to be more aspirational •"Is this about one community or multiple?'and'what is"county"?The people of or the people working for?Needs clarity" the quality of life for all • residents. b Vice-Chair Greene asked if"healthy" should be changed to "health conscious." Commissioner Fowler said "healthy" refers to more than individuals, but that the community is also functioning in a healthy way. Commissioner McKee said "healthy" speaks to how Orange County compares to other communities. Commissioner Richards said that the vision statement is also aspirational and speaks to what the county strives to be. Charline Kirongozi said the feedback from the community questioned what kind of "healthy" was meant by the statement. She said that it is important to not over define a vision statement, because it could leave out something else that is important. Commissioner Hamilton said if people are confused about what the word healthy means, then she wondered if there is a better word that would cover the intent. Commissioner Fowler said regarding the economy, some might use the word "vibrant," but that doesn't encapsulate what they are hoping for with environmental health. She said that "healthy" can also mean improving a situation by providing necessary supports. Commissioner Hamilton said she is fine with the word "healthy," but it may come up that residents are confused. Chair Bedford said that the only synonym she found that comes close is "flourishing," but she took Commissioner Hamilton's point that the Board needed to communicate what is meant by the word "healthy." 6 Commissioner Fowler pointed out that 89% of respondents agreed with the vision statement. Commissioner Hamilton said it's a small sample size, so the percentage doesn't mean as much. Commissioner McKee said any word that is put there is open to interpretation. The Board decided not to change the vision statement. Slide #8 Guiding Principles Communication and Awareness —We provide information and opportunities for engagement in a transparent manner so that all in our community have knowledge, understanding,and a voice. Inclusivity and Engagement —We foster an environment in which all are welcomed, represented, and empowered to participate in and feel connected to their community. Dedication and Respect —We commit to our roles in public service and organizational excellence by fostering the skills,talents,and innovation of our residents, employees, volunteers, and boards needed to carry out this work. Stewardship and Advocacy —We are driven to excellence and foster opportunities to innovate and make proactive, data-supported decisions that respond to our community's diverse needs. ,#4%4 Partnership and Collaboration —We build meaningful relationships and connections that allow us to create holistic and integrated systems of support for all. Social Justice —We respect all people and strive to be equitable in all that we do. Climate Action and Sustainability—We recognize that our environment is fundamental to our being and are deliberate in protecting, preserving, and sustaining our natural resources for the continued good of all. b) Slide #9 Guiding Principles: Feedback • Most Frequently Cited Top 3 Guiding Principles Orange County should include in its Strategic Plan: • Climate Action and Sustainability • Partnership and Collaboration • Inclusivity and Engagement • The top Guiding Principles the County should reconsider are: • Dedication and Respect • Social Justice • Stewardship and Advocacy b '62 responses to Tap 3 and 32 Reponses to Reconsider' Charline Kirongozi said the community thought that stewardship should be included and should cover fiscal stewardship. She said that the community also thought some of the guiding principles should be combined where there is overlap. Commissioner Richards said she felt some of the guiding principles lacked specificity, such as "Social Justice," but she didn't want to exclude anything. Chair Bedford said she would add a little more detail to "Social Justice," and suggested that a couple of commissioners work on the description together. Vice-Chair Greene said that for "Stewardship and Advocacy," the sentence that followed did not seem related. Commissioner Hamilton said making data-supported decisions is part of stewardship, but she was not sure how advocacy fit with the description. Commissioner Richards said she thought of fiscal stewardship when she read the principle, but it is not stated in the description. Commissioner Hamilton said that "advocacy" should be part of Social Justice. Commissioner Portie-Ascott asked if the respondents thought that "Dedication and Respect" should be combined with "Social Justice." Charline Kirongozi said the comment was that"Social Justice" could fall under"Inclusivity and Engagement," and that the idea of social justice and respect was a given. Commissioner Portie-Ascott said that it is not a given to her or to others in the community. Chair Bedford said that in the interest of time it might be best to move on and come back to the guiding principles. Commissioner Hamilton said there may be time after the break to have more in-depth discussions. Commissioner Fowler asked why the respondents thought some of the principles should be combined. Charline Kirongozi said that the respondents felt there was some overlap. Vice-Chair Greene said she would like to change the Climate Action and Sustainability principle to, "We recognize that our environment is in crisis, and we are deliberate and proactive in protecting, preserving, and sustaining our natural resources." Commissioner Fowler suggested the word "critical." Vice-Chair Greene said the environment is in crisis. Chair Bedford also liked the description "in crisis." Commissioner Fowler said she would change the word in the guiding principle from "fundamental" to "critical." Vice-Chair Greene said that we are in an environmental crisis, and it is important to say it. Commissioner McKee asked how"in crisis" is defined. Vice-Chair Greene said that scientists say that if we do not reduce CO2 emissions at a rate that is sustainable, it will be detrimental to the planet. Commissioner Hamilton said she felt the phrase"to our being"was vague. She suggested the word "existence." She said she liked the word "critical," because "crisis" felt like an event like a hurricane. She said that the word "crisis" can actually increase resistance to efforts. Commissioner McKee said that was his thought as well. Vice-Chair Greene said she felt that as leaders in the county, they should set the tone for what is happening. Commissioner Fowler said the words that are chosen are important. She said some words can create pushback in the community. She said that climate action is a specific strategic priority. Charline Kirongozi said having climate change as a strategic priority shows that resources will be invested in action items to address it. Commissioner Portie-Ascott said she liked the word "critical." 8 The Board agreed to change the guiding principle statement to "We recognize that our environment is critical to our existence and are deliberate in protecting, preserving, and sustaining our natural resources for the continued good of all." Slide #10 Strategic Priorities Environmental Protection and ClimateAction:Promote sustainability and resiliency across the County and collaborate with our partners to activate our community, protect and preserve our natural resources, and reduce greenhouse gas emissions. Healthy Community:Increase equitable access to care and social safety net programming to promote the physical, social, and mental well-being of our community. UM, Housing forAll:Promote equitable and accessible housing and address housing disparities through policies, partnerships, and collaboration to create a thriving community. FrrrT,Multi-modal Transportation:Collaborate with our regional partners to expand, integrate/connect, and provide accessible public transportation options. ;�f Public Education/Learning Community:Enhance and maintain quality school operations W0 and infrastructure and cultivate lifelong learning. b J' Diverse and Vibrant Economy: Foster an environment that attracts and retains sustainable and diverse businesses and visitors, employment opportunities, and diversifies our tax base. Slide #11 Environmental Protection and Climate Action: Objectives Identify the priorities and resources necessary to implement the Climate Action Plan. Invest in our infrastructure to reduce the environmental impact of the County fleet and improve safety. Improve educational opportunities for County staff and community members on climate action and available resources to advance climate action projects. Incentivize and promote sustainable agriculture and local food systems development through supportive policy, funding,farmland protection and educational outreach. Review land use policies to promote and connect Town, County, and private trails and open spaces. Protect water supply/watersheds. Conserve and protect high priority open space, including Natural Heritage sites, nature preserves, watershed riparian buffers,and primelthreatened farmland. Include environmental stewardship objectives in the Comprehensive Land Use Plan. b 9 Slide #12 Environmental Protection and Climate Action: Feedback Pay more attention to the land,waterways and animals that are essential for human life. Add wildlife corridors as an example of open space that needs to be conserved and protected. Denser housing and increased public transportation. Emphasize water quality and wildlife corridors. Focus on environmental stewardship. Assist smaller agricultural enterprises. b Commissioner Hamilton said she would like to add investment in county and school buildings to reduce environmental impact. Chair Bedford suggested changing one objective listed in slide #11 to "Invest in our infrastructure to reduce the environmental impact of the County fleet/facilities and improve safety." Slide #13 Healthy Community: Objectives Improve harm reduction, prevention, and support services for adults and children experiencing behavioral health issues and intellectual or developmental disability. Expand access to quality, affordable healthcare services. (e.g., Medicaid expansion, crisis response, healthy living campaign). Provide social safety net programming and the resources needed for our most vulnerable community members (e.g.,veterans, unhoused people, foster children,older adults etc.). Reduce impacts and barriers for justice-involved children and adults through deflection,diversion, therapeutic interventions, and re-entry support, including housing. Invest in,support, train, and retain our community safety, health,and emergency services employees and direct care workforce. Provide sustainable, equitable, and high-quality community safety and emergency services to meet the community's evolving needs. Invest in services and programs that improve the health and quality of life of the community (e.g., recreation and public open spaces, arts, etc.) b 10 Slide #14 Healthy Community: Feedback . More focus on accessible spaces. Act in the areas of education, housing,and healthcare. Extend bike lanes. More affordable housing. . Training space for EMS. Explore freedom to roam legislation. Improve the life expectancy by 8 years in the next 5 years is not achievable. Objectives should focus on public health and preventive health services. . Decreasing poverty rate does not belong here. Suggest measures that include delivery of health services: coverage indicators like % of elders receiving indicated vaccinations, or% of diabetics achieving glucose control. . Include overdoes prevention efforts that already exists. b) Chair Bedford noted that improved training areas for EMS is already something the county is working on. Charline Kirongozi said the "Freedom to roam" suggestion is accessing publicly owned lands. Commissioner McKee said there are problems with accessing publicly owned lands without crossing private land. Commissioner Portie-Ascott asked how"freedom to roam" legislation impacts schools and people accessing school grounds during the school day. She said it can be a safety issue. Chair Bedford said it was not something the county was going to pursue. Vice-Chair Greene said the legislation is something that comes from Europe and agreed that it's not something that the county is going to pursue. Vice-Chair Greene suggested changing the first objective on slide #13 to, "Improve harm reduction, prevention, and support services for adults and children experiencing substance use disorders and/or behavioral health issues and intellectual or developmental disability," doesn't include adults and children experiencing substance use. Commissioner Fowler said it was important to be specific. 11 Slide #15 Housing for All: Objectives Locate permanent funding sources to address new and existing housing needs. Address need and any policy barriers to increase access to emergency shelter beds and other low-barrier housing including eviction diversion. Invest in permanent supporting housing. Prioritize and select County-owned land and/or facilities as part of an overall plan of facilities to create crisis, bridge, low barrier, affordable, and permanent housing. Review County ordinances, policies, agreements, and the regulatory processes to increase opportunities and reduce barriers to construct housing. Partner with public agencies to increase opportunities for public employees to buy and rent homes where they work. Expand resources and invest in housing designed for our aging and disabled residents. Preserve existing housing stock from disrepair and avoid displacement. Increase representation of people with lived experience on housing related matters. b 'Am Slide #16 Housing for All: Feedback M, Take advantage of inter-urban locations for lower cost housing. Clarify who is providing the subsidies for subsidized housing. More starter home options in the cities. Lack of affordable housing for those with moderate incomes. The review of the building process measure needs to be narrowed and clarified to ensure that it does not simply mean to streamline the process. b The Board decided not to change any of the objectives for Housing, except to make a grammatical change to "Invest in permanent supportive housing." They felt that the feedback was addressed in the objectives or in other areas of the plan or was too specific for a strategic plan. 12 Slide#17 Multi-modal Transportation: Objectives . Identify priorities and resources necessary to implement the Orange County Transit Plan. . Increase community awareness of all modes of transportation including transit, bike and pedestrian,vehicle, and all other modes. . Support road projects that address congestion and reduce commute time using the County's Complete Streets policy. Coordinate transit investments with municipal and county land use planning to reduce vehicle miles travelled and to provide more equitable access to shopping,employment, medical centers, college campuses, etc. . Invest in implementing the County's Safe Routes to Schools plan. . Update transportation related plans to provide more multi-modal options in rural Orange County. b Slide #18 Multi-modal Transportation: Feedback Make sure to include the expansion of safe and well-designed roadways. Consider adding a light rails system. Increased bus system in Hillsborough. More sidewalks and bike lanes. Less car dependability. b On slide #17, Commissioner Fowler asked why the update of transportation plans was focused on rural Orange County, rather than all of Orange County. The Board discussed that in the rural areas there are specific challenges with the lack of infrastructure to support mass transit options. They decided to change the last objective on slide #17 to "Update transportation related plans to provide more multi-modal options including rural Orange County." 13 Slide #19 Public Education/ Learning Community: Objectives 000 Foster collaborative relationships with formal and informal educational organizations and agencies to provide opportunities for community members to meet, connect, and learn together. Improve school readiness and educational outcomes by providing access, training, tools, technology, and other resources needed to thrive. Provide support for workforce development through training, tools, technology, and other resources. Improve learning environments by investing in facilities over a 10-year period that addresses repair, renovation, and educational adequacy needs. Invest in and implement a plan that supports schools operational and facility funding needs. Implement the recommendations of the Schools Safety Task Force. Invest in and expand equitable behavioral health services for children and adolescents. Invest in and expand equitable behavioral health services for teachers and staff. b Slide #20 Public Education/ Learning Community: Objectives Add more education on local history, geology,geography, and politics. Increasing access to free library services. Increase community access to adult literacy classes and English as a Second Language classes. b The Board decided not to change any of the objectives for Public Education/Learning Community. Commissioner Fowler asked if the county provides any English as A Second Language classes. Travis Myren said he thought Cooperative Extension did. Chair Bedford said she thought the Department on Aging did. Vice-Chair Greene said that the county funds a non-profit agency called Orange Literacy. 14 The Board took a break at 10:30 a.m. for 18 minutes. Slide #21 Diverse and Vibrant Economy: Objectives I ' Provide family-oriented and inclusive programming or other cultural events for residents and visitors. Review ' and revise County policies and regulations to support business investment in Orange County. Streamline and digitize business processes to facilitate efficient interactions between employers and County departments. Provide resources to small,creative, and agro-businesses that add character and quality of life to our community to attract employers, employees, and visitors. Increase access to and awareness of resources and assistance available to residents and businesses. Enhance the recruitment process to broaden applicant pools for County positions so the workforce becomes more diverse. Provide workforce and business development resources to enhance the skills of our workforce. b Slide #22 Diverse and Vibrant Economy: Feedback I ' Focus on adding to the tax base —include UNC-Chapel Hill and UNC health facilities in taxes. ' Include ways for people to maximize their earning power and upward mobility. More spaces to attend performances. b The Board noted that they could not include UNC facilities in the tax base. Commissioner Portie-Ascott asked if it is appropriate in this priority to discuss diversifying the tax base and being open to more economic development opportunities. She said that Orange County has not historically focused on economic development, meaning property owners bear the brunt of tax rate increases. Charline Kirongozi asked if it was captured in the second objective, "Review and revise County policies and regulations to support business investment in Orange County." 15 Chair Bedford asked if it should include the phrase "diversifying the tax base." Travis Myren suggested the phrase "expand and diversify the tax base." Chair Bedford said some of this is tied to the Comprehensive Land Use Plan. She said making it explicit in the strategic plan is good. Commissioner Hamilton said it should be explicitly stated. Vice-Chair Greene suggested "Continue active recruitment of businesses to increase and diversify the tax base." She said she was fine with either"increase" or"expand." Commissioner McKee said he thought it deserved a separate bullet to show it's a priority. Chair Bedford said that the suggestion of more spaces to attend performances was likely related to performances spaces for children's theater. Vice-Chair Greene said they could add something to the objectives to recognize that the arts are part of the economy. Chair Bedford thought it might be captured in the objective "Provide resources to small, creative, and agro-businesses that add character and quality of life to our community to attract employers, employees, and visitors." Commissioner Hamilton said the first objective should read "Provide family-oriented and inclusive programming and other cultural events for residents and visitors." Chair Bedford noted that the plan is for 5 years, and not everything can be done in that time frame. Charline Kirongozi made two groups of commissioners to improve the language for the Social Justice and Stewardship and Advocacy Guiding Principles. The groups worked independently on different sides of the room for about 10 minutes and then came back together to share their ideas. For the Social Justice Guiding Principle, the working group suggested the statement, "We reject oppression and inequity by ensuring fair and equitable treatment of all people." The Board accepted the change. For the Stewardship and Advocacy Guiding Principles, the working group suggested the statement, "We foster opportunities to innovate and make proactive data supported decisions and advocate to state and federal governments in response to our community's diverse needs and to make best use of our resources." After some discussion, the Board agreed on the following statement: "We make proactive data supported decisions and advocate to local, state and federal governments in response to our community's needs in a way that best utilizes our resources." Slide #23 Next Steps IFIR Complete the final plan. .s, 0 Final adoption in February 2024. I&N In alignment with the County's budgeting process, BerryDunn will develop tools to assist with performance monitoring, reporting, and implementation. b 16 The Board asked to review the draft of the performance measures and the pictures that will be in the final plan before publication. Charline Kirongozi said that the Board should get annual updates on the performance measures in the strategic plan. She said that often, local government departments will include how their requests or programs relate to the strategic plan in agenda items. Travis Myren said new agenda forms will be developed to reflect the priorities of the strategic plan. He said that new budget requests will be evaluated for how they integrate into the strategic plan. Commissioner Richards said she has been thinking about how the different county plans will be integrated into the budget process. Commissioner Hamilton said she would like to know the baseline measures for performance measures. Charline Kirongozi said that some performance measures will not have a baseline measure to begin with, but some will. Budget Preview/ Climate Action Plan Next Steps/ Housing Slide #1 ORANGE COON i Y NORTH CAROLINA FY2024-25 BUDGET PLANNING BRIEFING Board of Orange County Commissioners' Retreat January 19, 2024 17 Slide#2 ORANGE COUNTY FY 2024-25 BUDGET • Budget Terminology and Tools — CosttoContinue • Costs Associated with Continuation of current Staffing — Ten(10)Year Capital Investment Plan(CIP) • Approves Appropriations for Year 1 • Creates a Ten(10)Year Plan for Capital Expenditures — Debt Service Model Projects Debt Service Requirements and Affordability Measures based on CIP — Long Range Financial Plan • Ten(10)Year Operating Budget Projection Model based on Previous Expenditure Trends • Integrates Debt Service and Operations and Maintenance Costs from CIP ORANGE COUNTY NORTH CAROLINA Slide #3 ORANGE COUNTY FY 2024-25 BUDGET PrinciplesrReduce Alignment Bu —7et ',I Fun Plan �A— --J "rL.n,g T.7� Collaboration Financial Across Planning Departments ORANGE COUNTY NORTH CAROLINA 18 Slide #4 ORANGE COUNTY FY 2024-25 BUDGET • Strategic Focus Areas for FY2024-25 — Existing County Staff and Programs — School Districts'Continuation Needs — Strategic Plan Alignment and Implementation �1 ORANGE COUNTY NORTH CAROLINA Slide #5 ORANGE COUNTY FY 2024-25 EXPENDITURE BUDGET Transfers To Funds for Post• 3 t fARPA and CIP 0.3 k ■Personnel Services Contrib..to Other Agencies Operations 0.9% Recurring Capital ■Education ■Contribs.to Other Agencies ■Transfer to Debt Service ■Transfers To Funds for Post-ARPA and Recurring Capital CIP 0.2% ORANGE COUNTY NORTH CAROLINA Vice-Chair Greene asked what "Transfers to" meant. Kirk Vaughn, Budget Director, said it referred to transfers to other funds that were not debt service. Commissioner Richards asked if it was possible to show the percentage of funding for debt service for education. 19 Bonnie Hammersley said it was possible to change the pie chart on slide #5 to separate debt service for education from debt service for other purposes. Travis Myren said they would move that"slice"to be next to the education current expense "slice" of the pie chart. Slide #6 ORANGE COUNTY FY 2024-25 EXPENDITURE BUDGET Recurring Capital 0.3% ■Personnel Services operations Operations Personnel ■Recurring Capital Services ORANGE COUNTY NORTH CAROLINA Slide #7 ORANGE COUNTY FY 2024-25 BUDGET • Expenditure Projections — County Cost to Continue Current Staffing and Programs — School Continuation Budget Estimates — Debt Service Requirements • No increase in debt service projected for FY2024-25 • If all projects proceed,2 cents projected for FY2025-26 ORANGE COUNTY NORTH CAROLINA 20 Slide#8 COUNTY COST TO CONTINUE ESTIMATES • Known Personnel Cost Drivers Cost Driver Estimated Amount Annualized Salary Changes $4,115,000 Merit Performance Awards $440,000 Health Insurance (5.5% increase) $470,000 Retirement Contributions $1,600,000 TOTAL KNOWN COSTS $6,625,000 • Other Personnel Considerations — Across the Board Wage Adjustment- Every 1%=$800,000 — Living Wage-$17.65 — Public Safety Overtime-$1.8 million to right size �1 ORANGE COUNTY NORTH CAROLINA Travis Myren said the health insurance costs were increasing in part due to the cost of prescriptions. Slide #9 COUNTY COST TO CONTINUE ESTIMATES • Operating and Contractual Services Considerations — Opening Southern Branch Library-$800k • Planned open date in October,hire staff in July for hiring and training lead time. • Also includes costs for AMS(utilities,maintenance and custodial) — Exhausting American Rescue Plan Act Funding • Emergency Housing Assistance Program-$2 million rental assistance+$100k staff costs • Long Time Homeowner's Assistance-$250,000 • GARE Youth Program-$45,000 • ARPA Grant Coordinator -$67,000(will evaluate need for closing out ARPA projects) — Annualizing New Programs Mobile Crisis Response-Included in Annualized Salary Changes • Bridge Housing-—64,000 County Cost in PEH ORANGE COUNTY NORTH CAROLINA Bonnie Hammersley said the emergency housing assistance program will not have any funding in future fiscal years. 21 Slide #10 COUNTY COST TO CONTINUE ESTIMATES • Operating and Contractual Services Considerations — Strategic Plan Implementation • Strategic Plan Staffing-1.0 FTE • Department Director Retreat to Create Implementation Plan • Organizational Year-Form Interdisciplinary Teams Develop a Deep Understanding of the Challenges — Climate Action Plan Implementation • Capital Investment Plan-$1.1 million • Operating Budget-$1.0 million ORANGE COUNTY NORTH CAROLINA Vice-Chair Greene asked what the qualifications might be for a strategic plan employee. Travis Myren said it would require experience with performance measurement and strategic planning, and hopefully someone already familiar with the county's strategic plan. Bonnie Hammersley said other peer counties already have strategic plan managers. Commissioner Richards said it will require project management and collaboration skills, especially in the first year of implementation. Kirk Vaughn said that in other counties, the strategic plan coordinator is located in the County Manager's Office or in the Budget Office. Slide #11 SCHOOL CONTINUATION ESTIMATES Continuation Estimates - Chapel Hill Carrboro City Schools Continuation Estimate-Approximately$3 million • Audited FY 2023 Fund Balance at 4.07%,belowschool fund balance policy of 5.5%. - Orange County Schools Continuation Estimate-Approximately$2 million $3 million in expiring federal grants Supplanting with county funds would require 12%+Current Expense Increase - Includes Similar Cost Drivers to the County Cost to Continue • State Budget Provided 3%Increases for Instructional Staff - No Growth(and perhaps a decline)in Number of Funded Students ORANGE COUNTY NORTH CAROLINA 22 Slide #12 SCHOOL CONTINUATION ESTIMATES Cost to the County Depends on Continuation Target and Resulting Per Pupil Amount CHCCS Continuation OCS Continuation CHCCS Continuation Estimate $2,950,000 OCS Continuation Estimate $1,940,00 Number of Funded Students Number of Funded Students FY2023-24 1125 FY2023-24 8,003 Additional Per Pupil $262 Additional Per Pupil $242 OCS Funded Students 8,003 CHCCS Funded Students 11253 New Per Pupil $262 New Per Pup!1 $242 OCS Additional Funds $2,098,005 CHCCSAdditional Funds $2,727,83 Total Now Fundina Needed $5,048,005-Total New Fund na Needed $4,667,83Q 5%Increase in Current 4.5%Increase in Curren Expense Expensel Ex ense Slide #13 SCHOOL CONTINUATION ESTIMATES Changes in Per Pupil Amount by Year Change in Per Pupil Allocation $600.00 $538.46 $500.00 A$44100 $400.00 $302.00 $300.00 $200.00 $187.25 $112.00$131.00 $126.50 $123.00 $102.00 $100.00 $6.00 $14.75 ro� Al$(100.00) SIla4.00) �` $(200M) ORANGE COUNTY NORTH CAROLINA 23 Slide #14 ORANGE COUNTY FY 2024-25 BUDGET • Revenue Projections — Property Tax Estimates — Sales Tax Estimates — Charges for Services — Interest Income ORANGE COUNTY NORTH CAROLINA Slide #15 ORANGE COUNTY FY 2024-25 REVENUE BUDGET Other Revenue Transfers In _Approp of Fund Balance 0'3% - Charges for Service 7.2% 2.5% Intergovernmental ■Property Tax ■Sales Tax ■Intergovernmental Sales Ta ■Charges for Service ■Other Revenue 67.7 ■Transfers In ■Approp of Fund Balance ORANGE COUNTY NORTH CAROLINA 24 Slide #16 REVENUE ESTIMATES • Property Tax — 2% Natural Growth due to New Construction $3,900,000 — No Change in Collection Rates(99.2% Property;99.6%Vehicles) — No Tax Rate Increase for Debt Service �1 ORANGE COUNTY NORTH CAROLINA Slide #17 REVENUE ESTIMATES • Sales Tax Estimate Currently seeing significantly slower growth,especially in the per-capita article 40 — Point-of-delivery articles are currently growing above pre-covid rates, suggesting stronger local economy than state economy. Article FY 23 Actuals Growth FY 2024 Projection Growth FY 25 Budget Est. Budget Art.39 $ 16,430,626 4.0%$ 17,087,851 4.0%$ 17,771,365 7.1% Art.40 $ 11,785,331 3.0%$ 12,138,891 4.0%$ 12,624,447 -0.9% Art.42 $ 8,240,839 4.0%$ 8,570,473 4.0%$ 8,913,292 6.7% Art.44 $ 284,938 4.0%$ 296,335 4.0%$ 308,189 2.7% HH-44 $ 6,655,046 4.0%$ 6,921,248 4.0%$ 7,198,098 25.2% Sum/Avg $ 43,396,780 3.8%$ 45,014,798 4.0%$ 46,815,391 7.0% ORANGE COUNTY NORTH CAROLINA Commissioner Portie-Ascott asked if there is a breakdown of property tax revenue between commercial and residential. Travis Myren said he would get that information to the Board. 25 Slide #18 REVENUE ESTIMATES • Sales Tax — 7%Growth from FY 24 Budget due to right size Hold Harmless • Potential Yield of Approximately$3 million • Actual FY2023-24 Growth--3.8%from FY2022-23 Actuais • Projected FY2024-25 Growth-4%from FY2023-24 Projected Actuals — Assumes returning to pre-pandemic growth rates with stronger local economy than overall state economy �1 ORANGE COUNTY NORTH CAROLINA Slide #19 REVENUE ESTIMATES • Other Revenue Considerations — Interest Income Growth - Interest income on county deposits, due to change in interest rate environment ORANGE COUNTY NORTH CAROLINA 26 Slide #20 TOTAL ESTIMATED REVENUES AND EXPENDITURES FOR BASE BUDGET • Total Estimated Expenditures $295,663,000 • $16.1 million increase from FY2023-24 • Total Estimated Revenues $287,927,000 • $8.4 million increase from FY2023-24 • Difference $7,735,000 �1 ORANGE COUNTY NORTH CAROLINA Slide #21 TOOLS FOR BALANCING BUDGET • Refining Expenditure and • Special District Tax Rate Revenue Forecasts • Fee Increases • Cost Reductions • Phasing • Fund Balance Appropriation • Countywide Property Tax Rate ORANGE COUNTY NORTH CAROLINA Commissioner Portie-Ascott asked if there is a plan for personnel cost reductions. Travis Myren said that at this time there is not a reduction in force being considered. 27 Slide#22 LONGTERM FINANCIAL MODEL Long Term Planning for Financial Stability Two largest expenditures categories, Personnel and Education, are programmed to grow faster than the largest revenue source-Property Tax. Capital projects with operating budget impacts - Crisis Diversion Facility New Emergency Services Substations that require new staff Debt Service to Fund School and County Capital Needs �1 ORANGE COUNTY NORTH CAROLINA Slide #23 ORANGE COUNTY FY 2024-25 BUDGET FY 2024-25 BUDGET TIMELINE DA Department Director Guidelines Presentation January 5 Operating Budget Kickoff meetings January 12-13 FY2024-25 Budget Submission Deadline February 24 County Manager meeting w/Outside Agencies and Mid to Late-March Related Department Directors County Manager Meeting w/Department Directors Mid-March to Early April County Manager Meeting w/Fire Districts Early April BOCC Joint Meeting w/Boards of Education April 27 County Manager presents FY2024-25 May 2 Recommended Budget Travis Myren said that the information on slides 23 and 24 are incorrect and to disregard the dates. 28 Slide #24 ORANGE COUNTY FY 2024-25 BUDGET BUDGET P. Budget and Capital Investment Plan (CIP) May 9 &June 1 BUD ULE. Schools and Outside Agencies May 11 Fire District, Public Safety, and Human Services May 18 Support Services, General Government, May 23 Community Services, and Durham Tech Budget Amendments and Resolution of Intent to June 8 Adopt CC REGULAR MEETING FY2024-25 Operating and CIP Budget Adoption June 20 �1 ORANGE COUNTY NORTH CAROLINA Slide #25 LEADING THE WAY Draft Mission Statement Draft Vision Statement Orange County is a visionary We are a diverse, inclusive, and leader in providing governmental healthy county working together services valued by our community, to strengthen our community and including those required by law, in enhance the quality of life for all an equitable, sustainable, residents. innovative,and efficient way. Draft Guiding Principles • Communication and Awareness • Partnership and Collaboration • Inclusivity and Engagement • Social Justice Dedication and Respect • Climate Action and Sustainability • Stewardship and Advocacy ORANGE COUNTY NORTH CAROLINA Commissioner Richards said the schools have to pass a resolution in support of the bond. She said that there was not another meeting with them until April. She said it would be ideal if everyone was on the same page for the resolution of support. 29 Chair Bedford said in the past there was not much discussion by the school systems on the amounts of previous bonds. The Board took a break for lunch at 12:15 pm. The Board resumed the meeting at 1:18 pm. School and County Facilities Bond Financing Discussion Slide #1 ORANGE COUNTY NORTH CAROLINA School and County Capital Planning and Financing Scenarios Board of Commissioners Retreat January 19, 2024 Slide #2 20z SR1 Renovate I.ink Rullding $8,983,231 SR, Itnwvac Fhe wkge d Ceder Gove Corruramiry Cent.Ildld,ng t.St.age end lmargcn $4.320,006 County Facilities cy al„r°� nmi 1.H""d Sxv c 11ec.IStluct Jlu Jail Mulling Move.�7ierdr Fndence Storage to[seder l,wes.&dltl a 2026 SR3 sm ewlace parknglo! '�5' Plan w I7rc:uicntx ;owlSuoet Amex Move Adult Ptolialion&Jt venik.lustkxinw link Build. 08R4 ina Ruild a snface perking lot $551,250 Z 2027 11rr..u,1-:1 Ilicu irl All—y Ruddir J L.L1ve[),aria!Annowy inlnl ink Ruilding.Build a 5R5 aurlarz parkn0lnt $324,631 • Fifteen(15)year plan o SR Build ldy Budding al Moloi Pool Site.hit eL 9—y Servicc ml of li—gc y y 'eg 2020'1570 TS SR7 Conval.iginal Crllergelcy Services lluikliriq fa AMS S Cuunty wkk Sl.aoe facility S5,518.287 • Costs estimated for the SRB Mare parer Sioiace ow*101d f AC Buildng i;do Cede;Grove 0 first ten years 2029 SR9 Build CdnunlReoreatbnulMotayid aNvi PSpeFaewPark 817,348,851 • Option A-$130 million SR10 Rudd Tn.vspwrtrtiwlRinldin,AdddinnlnMara pod Ruikkng. 84,266299 203 • Option B-$137 million Mf11 I)—,kip VM:Prj-iy f.Alfnidahle Hnuei.J 0 MR2 D—lr-r,equal Reaeal-,ul MoledR genic Fy,rn s{urrR CIn11 A—ly Sfmre $96,197 • First five years(Short 2031 MR3 Build Addiiion to Soudlvn Ilcallh Buikkrg m Chapd!tie $16,066,726 Range)-$70 million w MR4 D—inaruct(rang—talion Building-Move inlo Motorpoe!Building Addition, $122,987 c7 = 2032 MRS Build Shu iff o}fix at Muter Pod Sde_Mave Sherdf o;d of Jvi:lve Center to M.1-pool Site $22,SS6,272 � paovale g;ramd Door d rzii:ririg Jusdoe cents.Move Clerk of C.xts to dd Sheldl GIlIce MR6 Space 82,740,762 2033 MR7 Becmeuuct p.tlm of eraiaee perking lot d dd Jd1 wile.0rild a parking garage $14,831,155 MRa Move CJRD Ord of Justice Center ground floor info lint Building.RoxwMe oil CJRU $228,018 Sparc fp Ri61no C.ut Snppai Space 703 2 MR9 Rcnovwc 3 Oieulci Ceunooma in Juaricc Ccwer g7,900,755 (1 caairo.n an Iho 2nd Bnar,2 ccuroaonc od die 1 at Rom) 30 Travis Myren said if there are multiple uses for the bond, there will have to be separate ballot questions for each purpose. Chair Bedford said she thinks Commissioner Richards was persuasive in her argument that there should only be one purpose related to school facility needs. The Board agreed. Commissioner Fowler asked about the cost estimates for the full 15-year plan. Travis Myren said staff didn't assign costs to the last 5 years because the cost estimates would be unreliable this far out. He added that if the short-range projects (in yellow in the slide above) are stretched out to complete over a 10-year period, the county can still accomplish the Development of the EAC Property for Affordable Housing in that time frame because it is a no cost item. Slide #3 School Long Range Optimization Plan OPTIONS RETURN ON INVESTMENT COSTPERYEAR X TIMELINF = TOTALINVESTMENT 0 COMFORTABLE Lb] Q&SAFE Addresses No changes No changes No additional _$44 million -5219 million 20% to classroom to student or renovated 5years of facility needs spaces capacity schools COMFORTABLE � &SAFE, PLUS 10-YEAR Addresses No changes No changes No additional •• FACILITY NEEDS ALL toclass—ro tostudent or renovated 10 years facilityneeds spaces capacity schools COMFORTABLE low, O W &SAFE, 10 0 PLUS UPGRADED Upgraded -554million �� -5541.2million LEARNINGTOOLS 2 learning tools, 4 10years Renovations nospace changes Replacement Ni schools school COMFORTABLE a 112, O&SAFE, 12 Upgraded 7 —$67 million 000 PLUS NEW learning tools Renovations gg Replacement New 15 years CONSTRUCTION and ri ht-size schools schools ,and spaces (P—Ms replacing capacity "r MCDougle ESIMS) 31 Slide #4 Comparing the Scenarios Scenario New chool One Time Tax Peak Debt Minimum 10 . .CounFunding Rate Impact Service to Year Payout Revenue Ratio Al $75 million $130 million 4.00 cents 17.4% 60.4% A2 $130 million $130 million 4.57 cents 18.0% 59.9% C1 $130 million $400 million 7.89 cents 22.0% 57.0% C2 $130 million $300 million bond 8.66 cents 19.4% 58.1% $100 million pay-go D $130 million $630 million 11.22 cents 26.6% 55.0% Middle $75 million $200 million bond 5.49 cents 17.2% 60.3% $50 million pay-go ORANGE COUNTY 4 NORTH CAROLINA Slide #5 Comparing the Scenarios Scenario New County New School One Time Tax Peak Debt Minimum 10 Title Funding Funding Rate Impact Service to Year Payout Revenue Ratio H $75 million $300 million bond 8.06 cents 18.55% 59.0% $100 million pay-go $130 million Push$17.9 million $300 million bond B in existing projects 8.47 cents 19.18% 58.2% outside of the ten $100 million pay-go year plan* "itemized list of projects on next slide ORANGE COUNTY 5 NORTH CAROLINA 32 Slide #6 Existing CIP Project Reductions Proposed Existing CIP Project Reductions Project Year Budget Cedar Grove Park,Phase II FY2029-FY30-31 $1,045,575 Covered Outdoor Fitness—Seymour FY2024-25 $200,000 Center Fairview Park Improvements FY2030-31-FY2031-32 $1,959,683 Millhouse Road Park FY2027-28-FY2028-29 $8,076,300 Mountains to Sea Trail FY2028-29 $693,000 Soccer.com Phase II FY2025-26-FY2026-27 $6,879,060 TOTAL $17,853,618 ORANGE COUNTY 6 N(W I H CAR()LINA Chair Bedford said under Scenario B, improvements to Fairview Park would be reduced, but the new county central recreation building would still be built and would be adjacent to Fairview Park, so they would still be getting quite an amenity. Slide #7 New Scenarios Scenario New County New School One Time Tax Peak Debt Minimum 10 Title Funding Funding Rate Impact Service to Year Payout Revenue Ratio $75 million H+B Push$17.9 million $300 million bond 7.87 cents 18.44% 59.2% in existing projects $100 million pay-go outside of the ten year plan F $75 million $250 million bond 7.43 cents 17.77/° $100 million pay-go ° 59.6% G $108 million' $250 million bond 7.79 cents �18.40% 59.4% $100 million pay-go *Funds the Long Rage County Plan through project MR5—New Sheriff's Office ORANGE COUNTY 7 NORTH CAROLINA 33 Slide #8 Tax Impact on $500,000 Home Scenario Title One Time Tax Rate Impact Impact on a ii ii0 home in cents Al 4.00 $200.00 A2 4.57 $228.50 C1 7.89 $394.50 C2 8.66 $433.00 D 11.22 $561.00 Middle 5.49 $274.50 H 8.06 $403.00 B 8.47 $423.50 7.87 $393.50 7.43 $371.50 7.79 $389.50 ORANGE COUNTY 8 NORTH!:AROLINA Slide #9 Bond Funding Practice Bond Allocation ADM vs.Project Based Budgeting CHCCS OCS Budgeted Average Daily Membership FY2023-24 58A4% 41.56% Project Based Option D—Phase 1 58.20% 41.80% Project Based Option C 60.08% 39.92% ORANGE COUNTY 9 NORTH CAROLINA 34 Slide #10 Charter Students and Bond Allocation Average Daily Membership Allocation Charter StudentsFY2023-24 Budget FY2023-24 Budget CHCCS OCS TOTAL CHCCS OCS TOTAL In-Facility Students 11,393 7,122 18,515 In-Facility Students 11,393 7,122 18,515 Less Out of District (350) (118) (468) Less Out of District (350) (118) (468) Plus Charter Students 210 999 1,209 Total Funded Students 11,043 7,004 18,047 Total Funded Students 11,253 8,003 19,256 %Allocation 61.19% 38,81% %Allocation 58.44% 41.56% °%Difference 2,75% (2.75%) $200 million bond $116,877,856 $83,122,144 $200 million bond amount $122,380,451 $77,619,549 amount Difference $5,502,595 ($5,502,595) ORANGE COUNTY 10 NORTH CAROLINA Commissioner McKee expressed concern with the perception of the funding percentage split between the school districts if charter students are not included in the calculation. He also asked what OCS would lose in this scenario. Commissioner Richards said that charter students are not in the buildings and therefore it doesn't make sense for them to be in the calculation. Chair Bedford said, if the bond amount is $200 million, OCS's allocation would decrease $5.5 million that would be given to CHCCS. She said she believes in continuing to flow through operating costs with charter students in the calculation but does not think it's logical to do that with capital costs because charter students are not in the school buildings. Commissioner McKee said he believes there is still a long-standing perception issue, and that people will not vote for the bond if they do not believe their school district will benefit from it. Chair Bedford said she thinks the difference in operating costs and capital costs would just have to be explained to voters. Commissioner Hamilton said she thinks funding should be done on a project basis as identified in the Woolpert report and believes that will be the best way to be good stewards of public funds. Commissioner McKee reiterated his concern about perception. Chair Bedford said she agrees with Commissioner McKee about a perception issue and thinks a 60-40 split is the best option, which is consistent with the way the Board splits operating funds between the school districts. Commissioner Richards pointed out that if funds were split by project in Scenario C, CHCCS would get 60.08% and OCS would get 39.92%, which is virtually a 60-40 split. Commissioner Hamilton said she does not want to do an arbitrary split and thinks the board should either split funding by Average Daily Membership (ADM) or by project. Commissioner Richards, Commissioner Fowler, Vice-Chair Greene, and Commissioner Hamilton indicated they are in favor of project-based funding. Commissioner McKee, Chair Bedford, and Commissioner Portie-Ascott were in favor of funding based on ADM. 35 Chair Bedford clarified that she would not like to include charter students in the ADM funding split scenario. Commissioner McKee said he thinks as long as the percentage split between school districts is reasonable, he is less concerned about perception. Commissioner Richards said the point of the bond is to improve school facilities and so the money should go where there is the biggest need, which was identified in the Woolpert study. She said she thinks residents will understand that. She added that right now, there is money that was given to OCS that has not yet been spent. Commissioner McKee said that money has now been allocated. Commissioner Richards said it took a long time and there were other projects that didn't get done because that money was sitting there. She said she thinks the bond education efforts needs to focus on the fact that the money needs to address capital needs that have been long ignored in a prioritized way. Commissioner McKee said if the bond is passed, the Board has no say in how, when, and where the money is spent, and those decisions will be totally up to the elected school boards. Commissioner Portie-Ascott said she agrees with Commissioner McKee that the bond will be a hard sell if the allocation is not at least close to 60% for CHCCS and 40% for OCS, to be consistent with the way funds have been distributed in the past. Commissioner Richards said that regardless of whether the funds are distributed on a project basis or based on ADM, the numbers are coming out around the desired 60-40 split, according to Slide #9. Commissioner McKee said that there is no legal requirement for a future Board to agree or follow this percentage for allocation. Travis Myren clarified that if the Board chooses to distribute funds by project, a budget amendment would be required for the school boards to use the funds for something else. To Commissioner McKee's point, Vice-Chair Greene said this Board can set an example and a strategy for a future Board and doesn't want perceptions to be the deciding factor in making this choice. Commissioner McKee said he agrees with Vice-Chair Greene and is not saying that the perception of things is accurate. Commissioner Hamilton said this Board can create policies and practices, so the money is used efficiently and effectively and none of it is wasted. She said a project-based allocation following the Woolpert study is the best way to go. Chair Bedford said she is fine with going project-based this time but every other capital decision in the past has been by ADM and that's why the percentages are so close across scenarios. She said it's scary to think that it will always do it one way or another. She said in this case it works to do it project-based for the bond to still pass, but if there was a bigger differential it probably wouldn't. Travis Myren said just to be clear, staff is looking for clarity on direction today. He said the Board doesn't have to make a decision on the final not to exceed amount until April, but if the Board wants alignment with the school boards' resolutions, a decision needs to be made sooner. Chair Bedford asked if resolutions from the school board are required. Gary Donaldson, Chief Financial Officer, said yes. Commissioner Richards asked what the one-time tax impact of the last bond was. Travis Myren said he thinks it was 5 cents split over several years. Commissioner McKee said it may have been 6 cents, but that it was applied over several years. He said the Board could choose to do that again this time, but if the increase is carried over several years the cumulative tax impact is higher. Commissioner Richards said the rationale for spreading out the tax increase would be that there is less impact on taxpayers at one time, even if the cumulative increase is higher. 36 Commissioner Richards asked Travis Myren to explain how the impact of a revaluation would play into this. Slide #13 Revaluation and Redistribution of Tax Responsibility • The revaluation will bring the assessed value of all property in the County up to current market rates. — The new assessed values will redistribute tax liability among property owners based on the new values. — An increase in value does not necessarily mean an increase in the amount of tax paid any individual property owner. — Increases or decreases from pre-revaluation property tax bills are determined by how a subject property value grows relative to other properties. Countywide Assessed Tax Rate per Property Ta Assessed Tax Rate per Property Tax � Value �i 00 Value I Revenue Pre-Reval $23.23 billion 0.8353 $194.01 million Pre-Reval $350,000 Wr0.8353 $2,923 Post-Reval $35.04 billion 0.5537 $194-01 million Post-Reval @ 50-84% $527,940 0-5537 $2,923 50.84% Post Reval @ 25% $437,500 0.5537 $2,422 increase Post Reval @ 65% $577,500 0.5537 $3,197 13 ORoR xECOUNATY Travis Myren skipped ahead to slide #13 after slide #10 in response to Commissioner Richards's question. Travis Myren explained that after a revaluation, the assessed value goes up and the revenue neutral tax rate comes way down to produce the same amount of property tax revenue. He said that same analysis carries forward to the individual homeowner. He explained that if the individual value of a home increases at a rate that matches the overall percentage increase of the countywide assessed value, the homeowner will not see a property tax increase post-revaluation at the revenue neutral tax rate. However, if the individual property value increases more than the percentage increase of the countywide assessed value the homeowner's property taxes will increase even at the revenue neutral tax rate. Travis Myren said that Commissioner Richards revaluation itself will not increase tax revenue, and the question is what amount on top of the revenue neutral tax rate would be required to pay the debt service on the bond. The Board discussed the impact on the Northside community during the last revaluation and the potential impact of future tax increases to Orange County residents following future revaluations. Commissioner Richards asked what others think a palatable tax increase would be. Commissioner Hamilton said the bond will go to the residents on a ballot to decide. She said they will be given the information on the tax implications and the Bond Education Committee will educate them and they will have the opportunity to give feedback. She said the Board has already received emails in support of a bond. She said the focus for her is that the Board knows the needs and needs to choose a plan that will address them--she said she personally supports option H + B. She added that the rest is up to the democratic process. Commissioner Fowler said she would like to go with Option H. She said it provides much needed funds and is realistic to get done, but also provides flexibility if needed and ensures the county keeps a good bond rating. 37 Vice-Chair Greene said she supports Option C-2. She said she doesn't want to reduce the county contribution by as much as Option H. Chair Bedford asked Kirk Vaughn, Budget Director, to calculate what Option H would look like with a $108 million in new county funding instead of$75 million. Kirk Vaughn said you could get a close estimate by adding .36 cents to the H+B tax increase. Chair Bedford said that would be 8.42 cents as a one-time tax increase but would address some of Vice-Chair Greene's concerns with option H (amended Option G) Commissioner Fowler said she could support that proposal, but it would impact the years 10-20 in the County CIP in terms of what is available for future debt service. She said she wants to choose a plan that is equitable in terms of the county as well as the school capital needs. Chair Bedford said even though it costs more to have the $100 million pay-go, it provides flexibility to future boards and thinks it is worth it for that reason. Commissioner Portie-Ascott said with the H+B option, she likes that the debt service ratio will be within the recommended range from the rating agency. She asked if once the money gets split the impact will actually be felt by the school districts. Chair Bedford said it won't solve all of the issues but will address a lot of them. Commissioner Fowler said the Board does not have to decide which county projects would be delayed today. She said she supports amended Option G, as Chair Bedford suggested. Chair Bedford said that's right because the Board revisits the CIP every year. Commissioner Richards said she can support amended Option G but doesn't like the idea of deciding which projects will be pushed off now. She said it feels like pitting county and school needs against one another. She suggested Option G but with a$300 million bond and $100 million as pay-go. Commissioner Hamilton reiterated that she supports Option H+B because this can has been kicked down the road and needs to be addressed now so other projects will have to wait. Chair Bedford said she supports amended Option G. Commissioner McKee said he supports H+B. He shared some of the conversations has had with residents about moving out of Orange County due to taxes making it unaffordable. Commissioner Portie-Ascott said she has also gotten phone calls from people who are concerned they will no longer be able to afford to live here but want something done for the schools. She said she is leaning towards Option H+B. Chair Bedford and Commissioner Fowler both said they will move to supporting option H+B. Vice-Chair Greene and Commissioner Richards said they are sticking with supporting amended Option G. Chair Bedford asked how Commissioner Richards would feel if H+B was framed as not choosing specific county projects to cut out and instead decreased the new county funding by $17.9 million. Commissioner McKee said he likes that part of H+B because it signals a willingness for the county to cut back on its own projects and he thinks that will go a long way for some residents. Vice-Chair Greene said she does not like the identified $17.9 million in county projects because it gives the community no option to provide input. She said the portion of county funding would go down. She said she would like more discussion on whether to identify specific projects or just reduce the amount of new county funding by $17.9 million because it makes a difference to her. Commissioner Fowler said she could support Option H which gets rid of the identification of county projects. Commissioner Hamilton said the Board just needs to decide the bond amount now and thinks they can hash out some of the other details later. 38 The Board went back to Slide #2 and discussed which county projects would be possible to complete depending on the amount of new county funding they decide to allocate to school facilities. 202 SR1 Renovate Ek[k Wilding S9,903,231 Renovate the wings of Cedar Grave Cerrxra rtity Cmier Bmid,ny Iw Slwogc 0w11 rnergen County Facilities SH2 ey stOfage M,eds for Itumm Scrvicca 54,320,000 Oeconsil l Uld Jail Buildin Move Slwntl Evidence Slolage to LaMar Groves.Build a 2026 SH3 surlaceperil lglul 37,1175,534 Plan UJ SR4 Oeeon64luct Court Street Annex Move Adult Probation&Juvenile Justice into I ink Build 5551,250 0ing.Build a suit ace parking lot Z 2027 SHS llerrxlrtna:t fltstrirt Attorney Building fvklve f)istrirt ANwrwv into I ink(b iildirlp flrrikl a $324,531 curince Pil lg lrn • SR6 Build EMS F-ill Building at Mona Pool Snu-Move Emerge-y Service out of Emergency 826,559,570 Service Brildl zoze SR7 Convert original rmergva y Services Building for AMS&Counly-wide Stamm I acdoy SS.S i 87 • Costs estimated for the SRB Movepa[ter Sldage ow of Old FAC Buildltg into Cedar Grove 0 first ten years 2029 SR9 Build Central Recreational Ill PoW Site or lairview Park 817,343,851 • Option A- $130 million Skin Build Tnsnstwnalioru&AdingAr"Tionto Motor I1anlBuilding. $4,266,299 203 • Option B -$137 million MRl OeMop F-AC Pmlrrty far Affordable Honing a MR2 11--sfan:t Central RerYeatiral at Whored A aeate tyre„sparx A Staff Arnenty Stx . S996,197 • First five years (Short 7031 Range) - $70 million MR3 Build Addition to Southern Health Building in Ctwpel Hill $16,086,726 C2 MR4 0econcnuct Trwneponanion Building-Moveinnw3Mtorpool Building Addition, $122,987 z z 2032 MRS Build Sherlfl n[6ce at Motd Pool See.Mwe Shenff w,t of Justice Co,ler to Motwpool SurekS22,SS6,272 Renovate ground Boa of existing Justice center.Move Gerk of Cants to old Sheriff OfficeMR6 Space <D,7622033MR7 Ueeorutruct prtico of awface poking tt N old Jail aiee.Build a perking garage 31,155 MRS Move Will out of Justice Lento ground flow into I.it*Buildirt0.Renovate old CJRO 28,018 SPam 1w 01,44ct Court Strppo"S[lace 7034 2 MR9 It--tc 3 Mail Cwrlroarna in Juaticc Corner $1 900,155 (1 cwrrt—on the 2nd Bow,2 rourtrwxru on the let Year) Travis Myren stated that if the Board were to allocate $108 million in new county funding rather than $75 million, all of the projects in yellow could still be completed, with the exception of SR10. Commissioner Hamilton suggested combining amended Option G and Option B, so $90.1 million in new county funding, $300 million bond with $100 million pay-go. Chair Bedford said this would result in an 8.23 cent one-time tax rate impact. After discussion, the Board reached consensus on this option and determined they would allocate funds on a project-based basis according to the Woolpert study. Commissioner McKee and Commissioner Portie-Ascott stated they do not support project- based funding but understand the majority of commissioners are in support. Travis Myren said the funding split for this scenario would be 60.08% CHCCS 39.92% for OCS. 39 Slide #11 Proposed Timeline Proposed Bond Referendum Schedule 1. Review schedule of approvals for a bond referendum and review 1n the County Facilities Master Plan November 9 Work Session 2. Review School Facilities Long Range Optimization Plan-Woolpert December 4th Business Meeting 3. Review Financing Scenarios December 12th Business Meeting 4. Approve a tentative plan for Bond Referendum January 16th Business Meeting January 19th Retreat 5. Staff meets with Local Government Commission on tentative January/February 2024 Bond plan 6. School Boards adopt a resolution supporting the referendum February 2024 7. Review potential adjustments to the bond referendum plan,if March 7 Business Meeting needed. March 12 Work Session March 19 Business Meeting ORANGE COUNTY 11 NORTH CAROI-INA Slide #12 Proposed Timeline ProposedBond Referendum Schedule 8. BOCC adopts preliminary resolution establishing the bond purpose(s)and sets a not to exceed bond amount(s). Neither the purpose nor the not to exceed amount may change April2"d BOCC Business Meeting following this action. 9. BOCC appoints a bond education committee and appropriates funds for outreach April 161 BOCC Business Meeting 10. Staff publishes a notice of intent to file an application for a general obligation bond By May 1 referendum 11. Staff files bond application with the Local Government Commission By May 30 12. BOCC introduces bond order and schedules a public hearing May 7"BOCC Business Meeting 13. BOCC holds public hearing on bond referendum May 2151 BOCC Business Meeting 14. BOCC adopts the bond order,formally set the ballot question and referendum date June 41 BOCC Business Meeting 15. Community vote on bond referendum November 5,2024 �� 12 ORANGE COUNTY NA Commissioner Richards asked what it would look like for pay-go to be $200 million. Travis Myren said it would result in an additional substantial tax increase because every 1 cent increase only generates $3 million. Commissioner Richards asked how to get people to support the bond when it still isn't enough to address current needs. 40 Commissioner Hamilton said the Board can educate the community about the need for more state and federal funding for education and the local impacts of choosing leaders at those levels of government. Chair Bedford and Commissioner McKee stressed the importance of commercial economic development to lessen the tax burden on homeowners. Wrap-Up Chair Bedford reminded the Board the Assembly of Governments meeting will be held at the Southern Human Services Center on Tuesday, January 23, 2024, and reviewed the agenda. Adjournment A motion was made by Vice-Chair Greene, seconded by Commissioner Hamilton, to adjourn the meeting at 2:54 p.m. VOTE: UNANIMOUS Jamezetta Bedford, Chair Recorded by Laura Jensen, Clerk to the Board and Tara May, Deputy Clerk to the Board Submitted for approval by Laura Jensen, Clerk to the Board.