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HomeMy WebLinkAboutMinutes 06-06-2024 - Budget Work Session 1 APPROVED 9/17/24 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS BUDGET WORK SESSION June 6, 2024 7:00 p.m. The Orange County Board of Commissioners met for a Budget Work Session on Thursday, June 6, 2024, at 7:00 p.m. at the Whitted Human Services Center in Hillsborough, NC. COUNTY COMMISSIONERS PRESENT: Chair Jamezetta Bedford, Vice-Chair Sally Greene and Commissioners Amy Fowler (arrived at 7:06 pm), Jean Hamilton, Earl McKee, Phyllis Portie-Ascott, and Anna Richards (arrived at 7:04 pm) COUNTY COMMISSIONERS ABSENT: 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 Commissioner Fowler and Commissioner Richards. A motion was made by Chair Bedford, seconded by Vice-Chair Greene to add a closed session to the end of the meeting for the purposes of: • To discuss the County's position and to instruct the County Manager and County Attorney on the negotiating position regarding the terms of a contract to purchase real property," NCGS § 143-318.11(a)(5). • Approval of Closed Session Minutes VOTE: UNANIMOUS 1. Discussion of FY 2024-25 Operating Budget • Funding Decisions on the Operating Budget Amendment List BACKGROUND: The County Manager presented the FY 2024-25 Recommended Budget on May 7, 2024. 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 2024-25. 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 2024-25 Annual Operating Budget and approve a Resolution of Intent to Adopt the FY 2024- 25 Annual Operating Budget. The Board is scheduled to adopt the final FY 2024-25 Annual Operating Budget for Orange County at its Business meeting on June 18, 2024. Travis Myren, Deputy County Manager, made the following presentation: 2 Slide #1 i ORANGE COUNTY NORTH CARC)LINA FY2024-25 Budget Intent to Adopt Work Session Board of Commissioners Work Session June 6, 2024 Slide #2 Decision Points 1. FY2024-25 Operating Budget • Consider and approve amendments to the County Manager's Recommended Operating Budget and funding for Chapel Mill-Carrboro City Schools and Orange County Schools 2. FY2024-25 Capital Investment Plan • Consider and approve amendments to the County Manager's Recommended Capital Investment Plan(CIP) 3. FY2024-25 County Fee Schedule • Consider and approve amendments to the County Manager's Recommended Fee Schedule 4. FY2024-25 Tax Rates • Adopt a Countywide Ad Valorem(Property)Tax • Adopt a Special District Tax Rate for Chapel Hill-Carrboro City Schools District • Adopt tax rates for the County Fire Districts 2 ORANGE oR rr CC0UNAY 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 FY2024-25 Operating Budget at the Business Meeting on June 18,2024 — Operating Budget for FY2024-25 — Year One(FY2024-25)of the 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 Commissioner Richards arrived at 7:04 pm. Commissioner Fowler arrived at 7:06 pm. Slide #4 Operating Budget Amendments Budget General Arnendn-ient Sponsor Page Dept Aniendnient Revenue 1,"xpense Fund Total 1{iuergegcy move Crisis Response OP-091 STAFF 144 Team expenses from ($173,000) ($173,000) Services General Fund Redirect additional $100,000 in anticipated OP-001 Hamilton 61 Dept on Aging Carol Woods Donation $100,000 ($273,000) to fund existing Aging General Fund fax penes Increase Transfer fxom Economic VB to General Fund by OP-002 Hamilton 134 Development- $164,050 to fund $164,050 ($437,050) Visitors Bureau ongoing county ex eases Reduce Travel and OP-003 Hamilton All Fend Wide Training 2%across the ($9,156) (1446,206) board Reduce budgetary OP-004 Hamilton 155 Finance and stimate for county wide ($15,000) ($461,206) Ad-in Services telephone inflation to 41/.from 51/a ORANGE COUNTY 4 NORTH CARC LINA 4 Travis Myren reviewed the budget amendment on the slide above and provided information on funding the crisis response team by grant. A motion was made by Commissioner Fowler, seconded by Vice-Chair Greene, to approve budget amendment OP-091. VOTE: UNANIMOUS Commissioner Hamilton reviewed budget amendment OPER-001 as detailed in the table on the slide above, which she sponsored. She said her goal is to decrease the tax rate increase associated with this budget. She said the money in the budget that has been accumulating from Carol Woods should be spent to support services consistent with the master aging plan. She said that she is not looking for that money to spend on other items. She said it is important to prioritize money given the needs in the community. Commissioner McKee said he understands the principle of not holding funds in reserve or building account balances but thinks the donation in the account it sits in will be designated to be spent by the Department of Aging on their initiatives. He said they received a memo from Janice Tyler accounting for why the balance is there now. He said it is because they received federal funds that had to be spent. He said those funds are no longer there and these funds will be spent faster than they were in previous years. He said he is also concerned with taxes, but it is his understanding that this and the next one would only reduce the tax rate by .17% of one penny. He said that will not make a difference. He said that he did speak with Commissioner Hamilton earlier today on this and she is aware of his concern. He asked if Commissioner Hamilton would consider withdrawing or amending this to some degree. Vice-Chair Greene said she shares Commissioner McKee's concerns and appreciates the wish to find every penny for the tax rate. She said that the MAP [Master Aging Plan] does support seniors through initiatives as well as salary time. She said this is private money from Carol Woods and they donate it to support the MAP and that she is uncomfortable shifting money out of a pot that for years has been donated for this purpose. She said she is aware that staff has already taken $75,000 and in either case, she thinks this is not the best practice. Commissioner Fowler said she understands where Commissioner Hamilton's concerns come from, but she said it would have been brought from the County Manager if it had been viable. She said that it will not make any major dent in tax rate, and it is not an ongoing endless resource that could help year after year. She said better clarity is needed and if funds are saved, there should be a line item, so it is not confusing of where they are going. She recommended that she would like to see the plan for the remaining amount. Vice-Chair Greene said the MAP meetings are dynamic meetings and decisions are made during those meetings, so it is impossible to name what they are held for 12 months in advance. Commissioner Richards said she was surprised by the amount of money that has been donated. She said she has a concern about transparency about how those funds are applied and said that it is confusing that the Department on Aging has ongoing programs that are executed by existing staff how donations are leveraged to either enhance that or create new programs. She said that what bothers her about the amendment is the fact that the Board should provide that as guidance to the department rather than withdrawing the county commitment from the fund. She said that she feels they have a responsibility for those funds. Chair Bedford asked how the $175,000 grant money and gifts from other revenues are included in this budget. Kirk Vaughn said $175,000 is in the budget and shown as a revenue and the remaining 100K is in the grant funds. He said they do not have as much of an ability to anticipate those other revenues, so they do budget amendments if and when it is necessary. Chair Bedford asked how these additional dollars interact with the expenditures. 5 Kirk Vaughn said MAP is multi-year grant fund so when they authorize the authority to spend, it stays active across fiscal years, so any grant income does not fall within balance sheet it is part of the project. Bonnie Hammersley said that they must authorize any expenditures outside of the budget, within the multiyear fund, before they can be spent. Kirk Vaughn said that the $100,000 has been recognized. Bonnie Hammersley then asked if they decided to spend $500,000 out of the $600,000 if that would have to come back to the commissioners for approval. Kirk Vaughn said that it would not unless it was over the authorized budget. He said that once the commissioners authorize the expenditure, the revenues are recognized. He said if they get a new grant, then they would do a budget action to recognize it. Commissioner Hamilton asked if the multi-year grant fund was in that number total budget number. Kirk Vaughn said no, and that a separate fund is used to recognize that and that is how it stays and accumulates. Commissioner Hamilton said therefore if they use $100,000 then that is a budget amendment that will increase the general fund amount. Kirk Vaughn said no, because any spending in or out of the fund stays within that fund and is not in the general fund. Chair Bedford said Janice Tyler said that the funds will be budgeted in addition to what county taxes are funding. Kirk Vaughn said it is an additional $100,000 on top of their existing budget. Vice-Chair Greene said they do not receive the grant money until the end of the year. Kirk Vaughn said that they are recognizing it in advance, and they anticipate receiving those funds throughout the fiscal year. Vice-Chair Greene said that the funds are not there yet. Bonnie Hammersley said they know those grants are coming in and they adopt them in the budget as a plan. She said if they did not recognize anticipated funds in the budget then they would be loaded down with amendments. She said that if the funds are not received as anticipated, a budget amendment to reflect that would be brought to the commissioners. Chair Bedford referenced the following chart provided to the Board by email: MAP EXPENSES CATEGORY PERSONNEL TITLE HOURS RATE TOTAL EMPLOYMENT SPECIALIST 20 22 440 COMMUNICATION ASSISTANT 20 20 400 OUTREACH WORKER 20 22 440 DURABLE MEDICAL EQUIPMENT ASSISTANT 20 20 400 AGING TRANSITONS PROGRAM ASSISTANT 4 20 80 TOTAL PER WEEK 1760 TOTAL PERSONNEL PLUS FICA for a full year 98498.4 HANDY HELPER PROGRAM 5000 VOLUNTEER CONNECT END OF LIFE,LGBTQ+, INTERGENERATIONAL, MENTAL HEALTH SENIOR RESOURCE TEAM(SRT)PROJECTS, PROJECT ENGAGE SENIOR LEADERSHIP TRAINING, VOLUNTEER APPRECIATION EVENT 15000 RPLACE RESPITE PROGRAM 10000 BILINGUAL SOCIAL WORKER-MANDARIN 74500 23750 BILINGUAL SOCIAL Not WORKER- SPANISH 74500 funded AGING WELL TOGETHER RADIO SHOW 52 300 15600 PiAP UNC COLLABORATION 1 18500 18500 INTERNS 2 3500 7000 DEPARTMENT MARKETING AND OUTREACH 1 5000 5000 TOTAL SPENT UNDER MAP 198348.4 Chair Bedford said $100,000 could be used from the county budget rather than this budget. She said that $300,000 could move and there is still $250,000 left. She said that it seems that all can be accomplished, and she gets the concept of supplanting, but it does not make sense to her that they are funding as much as they are with tax dollars when there is this much in funding coming in. She said she is going to support this budget amendment. Bonnie Hammersley said that over the years there have been departments that had funds like these, and they have been removed. She said that departments get grants and are required to spend them within a certain amount of time. She said this is one of the last departments with a fund like this (local funding source). She said this came forward this year because of how tight the budget was this year. She said that the library had a savings account at the bank. She said that it cannot work that way because the playing field has to be level for all departments. She said that when they bring in money, they should give it back to the residents as much as possible. She said that maybe tonight is not the night to make that decision but she agrees that the Board discuss it and develop a policy. She said that it has been her philosophy to put money coming in back to residents as much as possible. Commissioner Portie-Ascott said she reviewed the amendment in the context of the calls she gets about the property tax increase before them. She said while small, this amendment would demonstrate to them that the Board is taking this issue and its impact seriously. Vice-Chair Greene said there is more money being spent out of the account that has been leveraged. She said that the library savings account is a little different because it was not money that was donated from an outside source. Bonnie Hammersley said it was donated by the Friends of the Library, but now they manage their own account. Vice-Chair Greene said she still sees a difference here because Carol Woods is donating to provide support for the MAP and diverting the funds to something else is an issue to her. Commissioner Hamilton said she appreciates everyone's comments. She said she agrees with what Commissioner Portie-Ascott said about signaling to residents that the Board is looking everywhere to try to lower the tax increase. She said for someone on a fixed income, even small savings are important. She said there is no difference in the money being donated because it will still serve seniors in the community. Commissioner McKee said the Board is combining a policy discussion and a finance discussion. He said he does not think this is the best time to have a policy discussion and that is his issue with this amendment and some of the others proposed. He said this would only result in a symbolic decrease in the proposed tax rate increase. Chair Bedford said that if they are using ARPA funds, there would still be $250,000. She asked if there are ARPA funds. Kurt Vaughn said that they recognized the ARPA funds earlier and separate from this budget. Chair Bedford said they do not need to keep$700,000 even if$250,000 was being planned for expenditures. She said that the MAP is broad and covers many services. She said that there are other funding sources that are part of that plan, and it is not separate. She said that at a budget work session is the appropriate time to talk about policy. She said that she does not think that departments should have fund balances. Vice-Chair Greene said the MAP is fully funded through the MAP dollars. 8 Janice Tyler said no dollar amount can be put on funding the MAP because there are so many projects there. She said the commissioners have accepted the plan and they ask how much money, and she is unable to put a dollar figure on it because there are so many projects. Commissioner Fowler asked if they are all funded through this fund or through county tax dollars. Janice Tyler said the MAP has 40-50 partners with money in their budgets. She said that this is a county grassroots plan and not a departmental fund. She said that the Carol Woods money does is provide seed money for projects that do not have any funding. She said that the commissioners get the matrix quarterly and they can see the private projects that are funded. Commissioner Fowler said the budget already moves $75,000 from this fund to use for departmental expenses. She asked if that happens annually. She said that she is trying to grapple with the idea of how this is funded because they just adopted the climate plan, and they do not have a separate fund. She asked if the budget could operate by amendment as funds are received. Bonnie Hammersley said because there have been these funds, that is what they have used. She said that it is hard to define funds because it is a strategic plan. She said that it is difficult to put a price on it because some things are funded with county dollars, like positions in the Department on Aging, she said that is not separate from the MAP. She said others are funded by grants. She said that when she recommended moving the$75,000, it was her recommendation to use the funds to offset what is doing to the tax rate. She said they went in with a scalpel to remove funds from the budget. Commissioner McKee said he thinks the Board is delving into management vs. policy. He said that the professional managers have been handling this. A motion was made by Commissioner Hamilton, seconded by Chair Bedford, to approve budget amendment OPER-001. VOTE: Ayes, 3 (Commissioner Hamilton, Commissioner Portie-Ascott, Chair Bedford); Nays, 4 (Commissioner McKee, Vice-Chair Greene, Commissioner Fowler, Commissioner Richards) MOTION FAILS Commissioner Hamilton reviewed budget amendment OPER-002, which she also sponsored. She said she would like to make a change to this amendment to reduce the Visitors Bureau fund balance by$69,000 to move to the general fund. This would ensure they maintain at 15% fund balance. Chair Bedford said they asked John Roberts and there is no statutory requirement for fund balance. Travis Myren said that is right. He said that the only requirement is that 10% of occupancy tax collections must be used for tourism purposes. Commissioner Richards said 15% is what the Visitors Bureau Advisory Board has set as a goal. She said that she is on the Board this year representing the commissioners. She said that the Eno Arts Mill pays for itself, and the Arts Center is now part of the Visitor's Bureau budget. She said she is trying to understand that if this is coming from occupancy tax, and their charge is to promote, is the thought that they do not need that much. Commissioner Hamilton said she thinks they have to ask that question because of priorities. She said that there are other departments that promote tourism, and these funds do not have to go to just one department. She said that not just one should take all of the revenue. She said especially since there was a fund balance accumulated, and dollars should be spent. She said if the funds are not needed then there are other places they can use the money. 9 Commissioner Richards asked if Commissioner Hamilton is saying other departments have the responsibility to promote tourism. Commissioner Hamilton said she was taking a general view of supporting tourism. She said that it is a revenue source based on the fact that people come and stay in hotels and short- term stays. She said that how the money is used is bound by the state, but they can take a wider view of what promotes tourism. Commissioner Fowler asked if the 15% fund balance is in the bylaws of the tourism board. She asked why that is and what it is used for. Laurie Paolicelli gave some background on occupancy tax and the tourism bureau. She said that it is a very confusing entity. She said that this October she will have been with the county for 19 years. She said that the state and local levels have had major changes in this tax. She said that the tourism sector was established as a formal program in Orange County because the state created authority for the county to set a 3% tax to be used to grow the industry. She said that she was charged with growing the industry and she is proud that they have grown it as much as they have. She said that she respects the House and Senate, and they believe that funds should be used for tourism dollars. She said that they are going through financial distress and in the past 10 years, they have $200-300,000 that has gone to the Arts. She asked if it brought it heads and beds and noted that the answer is likely not. She said that they are paying money back from the general fund and this year it is $134,000. She said they have been asked to vacate a county building and pay rent, utilities, and taxes as county employees. She said that the pandemic decimated tourism. She said that the industry has not fully recovered now, and they are still behind on conferences. She said that they are a bedroom county for the entire Triangle. She said that they do a terrific job and that the funds should be left for tourism. She mentioned Steve Rights, a music creator that moved from Belgium to Orange County and PBS is trying to make a story about this. Chair Bedford asked if the 15% is in the bylaws. Laurie Paolicelli said that when she was hired, she was told that 15% or three months of operating as a reserve balance. She said that she does not necessarily agree. She said they started a handbook and when they were created, they looked at others and they had to keep it at 15%. She said that former leaders have wanted them to keep a rainy-day fund, but she is not sure they have to. She said they have always had it, and they see opportunities such as the PBS item. Commissioner Fowler asked if it was used for advertising that comes up unexpectedly. She asked if there are also advertising funds built into the existing budget. Laurie Paolicelli said that she was unaware they had a $3 million budget and said that they only have $2.3 million plus reserves, but they could get further information from Travis. She said '/2 is used for salaries, 1/3 is used for marketing, and 1/6 is used for operating and administrative costs. She said it is a very lean budget. She said none of the new projects that come up at the end of the year were budgeted for. Commissioner McKee thanked Laurie Paolicelli for the information. He said that he feels the same about this amendment that he did about the last one. He said the Board should have a discussion about a fund balance policy for departments, but now is not the appropriate time. He said if they are talking about taxes, there is reducing taxes and generating as strongly as possible, and you cannot put a dollar figure on the amount of taxes they generate for the county. Chair Bedford said she does not think all the occupancy tax should go automatically to the Visitor's Bureau. She said that she does not want them to have fund balance. She said they should be budgeted for. She said that other funds helped keep the Visitors Bureau going. She said she does not believe in rainy day funds and the department should budget for unexpected circumstances. She petitioned staff to add this discussion to a future work session. Vice-Chair Greene said she appreciates the reduction to $69,000 but agrees this conversation about whether or not departments should have a fund balance needs to happen later. 10 Commissioner Portie-Ascott said she supports this amendment for the same reasons she supported the last amendment. Commissioner McKee said there is no way the Visitors Bureau can substantially budget for adverse events, and they need the flexibility to make decisions on the fly based on the present challenge. A motion was made by Commissioner Hamilton, seconded by Chair Bedford, to approve budget amendment OPER-002. VOTE: Ayes, 3 (Commissioner Hamilton, Commissioner Portie-Ascott, Chair Bedford); Nays, 4 (Commissioner McKee, Vice-Chair Greene, Commissioner Fowler, Commissioner Richards) MOTION FAILS Commissioner Hamilton said she wanted to withdraw budget amendment OPER-003. Commissioner Hamilton reviewed budget amendment OPER-004, which she also sponsored. She said 4% inflation reflects the recommended inflationary salary increase for county employees. A motion was made by Commissioner Hamilton, seconded by Commissioner McKee, to approve budget amendment OPER-004. VOTE: UNANIMOUS Slide #5 Operating Budget Amendments Budget General Amendment Sponsor Page Dept AxiienciiiieiitReNUilLieExpeiise Fund Total Increase OP-005 Hamilton 40 Fund Wide 'PP"Priati0n0f $100,000 ($561,206) Fund Balance in General Fund McKee, Increase funding OP-006 Portic-Ascott 203 Outside Agencies to Porch- $15,000 ($546,206) and Bedford Hillsborough P&KOP 007 Bed€etd 203 Outside._grips for OC Li._.. ($10,000) ($-5-56,206) Wage OP 009 d ��McKeen 236 ASS crrT_ 0500 {$346296} ORANGE COUNTY 5 NOR-rH CA.ROLINq Commissioner Hamilton reviewed budget amendment OPER-005, which she also sponsored. 11 A motion was made by Commissioner Hamilton, seconded by Commissioner McKee, to approve budget amendment OPER-005. Commissioner Fowler said she appreciates where it comes from, and she can vote for it on the intent in which it was proposed. Chair Bedford said she is not going to support this amendment because in an ideal world you do not have to use fund balance to balance the budget. Commissioner Hamilton said there are times when the Board appropriates fund balance, and it is not used. She said in the meantime, taxes are being raised in order to get that revenue. Travis Myren said if this amendment passes, staff will just have to be $100,000 more conscious in order to maintain the 16% fund balance policy. Commissioner McKee said they use fund balance many times. He said they are not going to be killed by the $100,000. He said that if it were not for sales tax and hold harmless issues, they would not be having this conversation. Commissioner Richards asked why Commissioner Hamilton chose $100,000. Commissioner Hamilton said she was trying to balance her amendments and hopefully propose a meaningful adjustment to the proposed tax rate increase. VOTE: Ayes, 6 (Commissioner McKee, Commissioner Hamilton, Commissioner Portie-Ascott, Vice-Chair Greene, Commissioner Fowler, Commissioner Richards); Nays, 1 (Chair Bedford) MOTION PASSES Commissioner McKee reviewed budget amendment OPER-006, which he jointly sponsored with Commissioner Portie-Ascott and Chair Bedford. He said it is $15,000 back in for PORCH Hillsborough primarily because it focuses on feeding people, and it is that simple. Chair Bedford said the job has been posted that will be a food coordinator with non-profits and they can get the metrics straight. Vice-Char Greene asked if there is a corresponding reduction. Commissioner McKee said no. He said that there are a few things that are core things to him and that includes food, housing, and education. Commissioner Portie-Ascott said food insecurity is a huge issue in northern Orange County, and she is happy to be a co-sponsor. A motion was made by Commissioner McKee, seconded by Commissioner Portie-Ascott, to approve budget amendment OPER-006. VOTE: UNANIMOUS Chair Bedford said she and Commissioner McKee wanted to withdraw amendments OP- 007 and OP-008. 12 Slide #6 Operating Budget Amendments Budget Amendment Sponsor Page Dept Amendment RevenueExpense Fund Total duce transfer to County apital for Climate Mange Grant Funding. ption A:Reduce the drool portion of Climate ax$262,500.Option B: OP-009 Portie-Ascott S4 Capital teduce school portion of ($262,500) ($808,706) and Bedford Investment Plan limate tax$131,250 and educe community rojects portion$131,250. e policy will be hanged and will need to e brought back to the oard in the fall ORANGE COUNTY 6 NORTH CAROLINA Chair Bedford reviewed budget amendment OPER-009, which she jointly sponsored with Commissioner Portie-Ascott. She said the schools will hopefully be getting hundreds of millions. She said that they had used up all ARPA dollars for Emergency Housing Assistance and they went through the stages as a group. A motion was made by Chair Bedford, seconded by Vice-Chair Greene, to approve budget amendment OPER-009 option A, as described on slide #6. Commissioner Fowler said she is on the climate committee and is for everything they can do, and the beauty is they have made a heavy investment into schools and climate, and she can agree with diminishing the school side and maintaining the community side. Commissioner Hamilton said she agrees that the core things are food, housing, and education. She said that given the budget situation they are in it is hard to fund those. She said that she was a little concerned about taking money from the schools because there is not a bond yet. She said she would rather have option B because they do not know what is going to happen, but they know there are huge needs. Commissioner Richards said she is supportive of this amendment. She said the Climate Action Plan and climate tax, as they recognized, is not something the Board can implement. She said that the community has to be engaged. She said that even though the projects can be small, they make a big deal to families. She said that the school districts were slow to spend the money they had and any changes they make for capital should take climate into account. She said she is supportive of leaving the funding for the community intact. Vice-Chair Greene said she agrees with Commissioner Richards. She said that four of them saw the sustainability model at Weaver Community and they learned that there are ripple effects, and the beauty is that maybe they do not know how far they ripple out, but they are all in agreement they need to support the environment. VOTE: UNANIMOUS 13 Slide #7 Operating Budget Amendments Frtod Firr"Vncr Postie- Housing.issistancr OP-010 .iscott and 1-1 Hausiug Pmgaam !14 SD0 ($308,206)Sediord nP-f191.OP-OOG k OP-009 EsrabliAu new FHA Postie- trogmar design InOF-Ct1 ,lsma aruF l71 Housing on eppromdiwsding 500 ($308�0Gj Sedtord Inrls,Sre proposed defines Uelow�, .Adios,Tax 14ate ro balance budget with eddl$5106 from OP-099 ST.Aff .Ul 1H Sxial jusdre fimd. ($393,313) ($5,106) $0 Based-all publish d e.emIune ORANGE COUNTY 7 NnRTH 47AR01,11NA Commissioner Portie-Ascott reviewed budget amendment OPER-010, which she jointly sponsored with Chair Bedford. A motion was made by Commissioner Portie-Ascott, seconded by Chair Bedford, to approve budget amendment OPER-010. VOTE: UNANIMOUS Commissioner Portie-Ascott and Chair Bedford reviewed budget amendment OPER-011, which they jointly sponsored, to revise the EHA program design. New EHA Program Design Proposal (Revised Budget Amendment) QualilyingDocumentaoon ProdofArrears Ca rtSummons Proof of0fechergingerverllwithln threemonlhs olapplication: • DemncfHeadmnoaaehmd • IAnesa rendering theNead at Xauaehald i n ibleto work • lob lass of Xasd of Xouseheld OR Court Summons far a UWft Cllon prdeeeding4 Qualilyinglncome 30%of Pat Median Income 30%Area Medan Income HUD deflnhl on$lorfamily of lour: 39%AMI-$31750 extremely low Income 50%AMI-116i050 verylow Income BD%AMI-$B4,7001ow income Dmham-Chapel 1101,HC HUD Metro FMR Area AMI-$105,900 BafAwarasper Year FYH21-22:Moc.p Onceperycer Oreepmyeer FY2022-23:0nce peryear Maximum Award Amount $6,00D 55.000 $4,500 $4.100 average award Case Management Limited Retermistohslafservices Connections to services with written plan for longteml rent slablllry ResourcesAvailable $5,132,0.53AHPAFY2021-22 52miWm ARPAFY2D2324 5420,500-Generetrund $8,25D,538ARPAFY2022-23 $160,000-Ra fdr.WARPA 548,375permanthoap Residems5eri FY2021-22:1,69213,222 1'9 TB0-Report to the Board in SeptemberfOctober FY2022-23:574/3,374 (Mew HousehoINApphcahoni 14 Commissioner Portie-Ascott said only assisting households where there is a summons already in place prevents assistance for tenants whose landlords are trying to work with them. She said that she would like to expand the program to include residents who don't have a summons yet. She said she would like to expand support to households over 30% AMI, but would also be supportive of keeping support at this level. Travis Myren said staff went through all of the ARPA projects and found $160,000 that can be added to this program. Chair Bedford said she thinks it needs to stay at 30% AMI and supports this amendment. Vice-Chair Greene said the proposal also includes going month to month with the funds in order to make sure the program doesn't go over budget by the end of the fiscal year. Travis Myren said because they have a lot less money this is one mechanism to make sure they do not go over budget. He said that if it were depleted, the awards would be shut down. Bonnie Hammersley said making it month by month gives staff more time as they work with people that come in. Vice-Chair Greene said if they run out of money each month, the community understands what is going on instead of just running out of money early in the fiscal year. Commissioner Hamilton said she supports the amendment. She said that she sees that there is a lot of work to do in the fall. She said that it is another reason they need to discuss policy in the fall. She said that to continue this level of funding and not raise taxes, they have to think deeply about how to spend the money. A motion was made by Commissioner Portie-Ascott, seconded by Chair Bedford, to approve budget amendment OPER-011. VOTE: UNANIMOUS Travis Myren reviewed budget amendment OPER-099, which was proposed by staff. A motion was made by, seconded by, to use $115,000 general fund savings to decrease the County Manager's recommended tax rate increase. VOTE: UNANIMOUS 2. Discussion and Decision on FY 2024-25 Capital Investment Plan The Board discussed the FY 2024-34 Capital Investment Plan and accepted the Ten-Year Capital Investment Plan. 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 2024-34 CIP includes County Projects, School Projects, and Proprietary Projects. The School Projects include Chapel Hill-Carrboro City Schools, Orange County Schools, and Durham Technical Community College — Orange County Campus projects. The Proprietary Projects include Water and Sewer, Solid Waste Enterprise Fund, and Sportsplex projects. 15 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 2, 2024: • As a part of the annual budget process, adjustments are made to the allocation of school funding based on changes to the FY 2024-25 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 58.44% to 58.40% and changed the OCS percentage from 41.56% to 41.60%. The Article 46 funding has also been adjusted, which excluded Charter Students from the calculation. CHCCS's percentage changed from 61.19% to 61.45% and OCS's percentage changed from 38.81% to 38.55%. Travis Myren continued the following presentation: Slide #9 Capital Investment Plan Amendments Page ;IP 091 -mf a.. ally Update Year 2(FY2025-2G) nsench-1 evenue sosuce transfer from ardinal Reserve from 1,400,000 to 1,823,121 and ubsequently reduce the debt nancing amotuu by 423,121 IP-092 tat? 65 aNIS duce Year 3(FY2026-27) amendment acility Accessibility,Safety and ecurity Improvements by 6,000 for Blackwood Farm Park-Sectuity Cameras due to immediate need CIP-093 Start 55 SustAinability Reduce Climate Change -$51,16 -s51,16 mendment Mi6g.tio.Project in Year l (FY2024-25)to 5525,000. ils difference is reflected in he Operating Budget for otmty manager-SuswaabiGn ivision to support County 'de Climate Action Plan rojects s ORANGE COUNTY Commissioner McKee said Durham Tech has identified shortfalls so he will track where they are and where the county is during the year and possibly bring that back. Travis Myren explained budget amendment CIP-091, which was proposed by staff. A motion was made by Commissioner Fowler, seconded by Vice-Chair Greene, to approve budget amendment CIP-091. VOTE: UNANIMOUS Travis Myren explained budget amendment CIP-092, which was proposed by staff. 16 A motion was made by Commissioner Fowler, seconded by Commissioner Hamilton, to approve budget amendment CIP-092. VOTE: UNANIMOUS Travis Myren explained budget amendment CIP-093, which was proposed by staff. A motion was made by Commissioner Fowler, seconded by Vice-Chair Greene, to approve budget amendment CIP-093. VOTE: UNANIMOUS Slide #10 Capital Investment Plan Amendments Amendment Sponsor Budget Dept Amendment Revenue Expense Page UP-094 taff 134 la-ling cY- 2pdate Mebane Nf ater Line ltrtendment hispections Expzislon Year 1(FY2024-25) evenue srntrce from Article 46 as Proceeds to Debt Financurg Article 46 IP-DOA(tied to OP loitie-Ascott 55 SustaLuability duce transfer to County -$262,50 -S262,50 9) rid Bedford apital for Climate Change rani Fording. Option A: duce the-drool portion of limate Tas S262,500.Option B: duce school portion of limate tax$131,250 and reduce omnuuutp projects portion 131,250.The pohcy-will be hanged and will need to be rought back to the board in the -all. ORANGE COUNTY 10 NORTH CAROLINA Travis Myren explained budget amendment CIP-094, which was proposed by staff. A motion was made by Commissioner Fowler, seconded by Vice-Chair Greene, to approve budget amendment CIP-094. VOTE: UNANIMOUS Commissioner Portie-Ascott and Chair Bedford reviewed budget amendment CIP-001, which they jointly sponsored. A motion was made by Chair Bedford, seconded by Commissioner Portie-Ascott, to approve budget amendment CIP-001. VOTE: UNANIMOUS 17 • Funding Decisions for Chapel Hill-Carrboro City Schools and Orange County Schools o Current Expense (Per Pupil) Travis Myren continued the presentation: Slide #11 Recommended School Funding AllocationPer Pupil Special District Tax for Chapel Hill-Carrboro City Schools Total Current Expense Budget $108,090,282 District Total Countywide Budgeted Students 19,077 — No change to the Special District Per Pupil Amount $5,666 Tax Rate — Remains 19.80 cents per$100 of valuation r Budgeted Students Per Pupil Allocation — Generates a total of$28,419,218 CHCCS 11,141 $5,666 $63,124,906 OCs 7,936 $5,666 $44,965,376 ORANGE COUNTY 31 NORTFI CAROLINA 3. Discussion and Decision on the FY2024-25 County Fee Schedule Travis Myren continued the presentation: Slide #12 County Fee Schedule • No amendments proposed 2 ORA�N HE n OUNTY 18 4. Discussion and Decision on the FY 2024-25 Tax Rates • County Ad Valorem Tax • Chapel Hill-Carrboro City Schools Special District Tax • Fire District Tax Rates Travis Myren continued the presentation: Slide #13 Tax Rates Table I Fire District Tax Rates • Approve the Countywide Ad Valorem (Property)Tax •Recommended r 24-25 Rate Cedar Grove 9.00 • FY2023-24 rate based on approved operating budget amendments Chapel Hill 13.87 Damascus 12.80 EFland 10.28 • Approve the Chapel Hill-Carrboro City Schools Eno 11.98 Special District Tax Rate - 19.80 cents Little River 7.39 New Hope 13.84 • Approve the County Fire District Tax Rates in Orange Grove 8.27 Table 1 Orange Rural 11.49 South Orange 9.09 Southern Triangle 12.80 White Cross 13.84 ORANGE COUNTY 13 NORTH CAROLINA 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 2024- 25 Operating Budget) The Board took a break from the meeting at 8:51 p.m. to allow staff to draft a resolution of intent to adopt. The Board returned from break at 9:07 p.m. 6. Resolution of Intent to Adopt the FY 2024-25 Orange County Budget • Approval of Resolution of Intent to Adopt FY 2024-25 Annual Operating Budget at the Board of County Commissioners' Business Meeting on June 18, 2024 Kirk Vaughn, Budget Director, reviewed the following resolution: 19 Resolution of Intent to Adopt the FY2024-25 Orange County Budget The items outlined below summarize decisions that the Board acted upon June 6, 2024 in approving the FY2024-25 Orange County Annual Operating Budget and the FY2024-25 (Year 1) Capital Investment Plan Budget. WHEREAS, the Orange County Board of Commissioners has considered the Orange County FY2024-25 Manager's Recommended Budget and the FY2024-25 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 FY2024-25 County Manager's Recommended Budget on May 7, 2024; and to the FY2024-25 Manager's Recommended Capital Investment Plan Budget as presented on April 2, 2024; NOW THEREFORE BE IT RESOLVED, that the Orange County Board of Commissioners expresses its intent to adopt the FY2024-25 Orange County Budget Ordinance on Tuesday, June 18, 2024, based on the following stipulations: 1) Property Tax Rates a) The ad valorem property tax rate shall be set at 86.29 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. 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 11.98 • Little River 7.39 • New Hope 13.84 • Orange Grove 8.27 • Orange Rural 11.49 • 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. 4% wage increase for permanent employees in active status on June 30, 2024. Continuation of Merit Pay Program on employees' base salaries, payable in January 20 2025, at tiers of$550 for proficient performance; $825 for superior performance or $1,100 for exceptional performance. Page 236 b. A change in the salary schedule recognizing $17.65 per hour as the living wage for permanent and temporary employees and recognizing the 4% wage increase, effective July 1, 2024. Page 237 c. Increase the per pay period County contribution to non-law enforcement employees' supplemental retirement accounts to $100 per paycheck, removing the matching requirement by the County; continue the mandated Law Enforcement Officer contribution of 5.0% of salary. Page 251 d. Continue the County's required contribution to the Local Governmental Employees' Retirement System (LGERS) for all permanent employees. For FY 2024-25, the Law Enforcement Officers' (LEOS) rate increases from 14.10 to 15.10 percent of reported compensation, and all other employees' rate increases from 12.85 to 13.60 percent of reported compensation. Page 251 e. Continue to provide medical, dental, vision plans, and current voluntary benefit plans to employees. Page 254 3) Adjustments to Operating And Capital Budget lmend &"ponsorpuWgeage' .. J_ #Exp,� -nse OP-091 STAFF 144 Emergency Remove Crisis Response Team expenses ($173,000) Services from General Fund OP-004 Hamilton 155 Finance and Reduce budgetary estimate for county ($15,000) Admin Services wide telephone inflation to 4%from 5% OP-005 Hamilton 40 Fund Wide Increase appropriation of Fund Balance $100,000 OP-006 McKee,Portie-Ascott,and 203 Outside Increase funding to Porch-Hillsborough $15,000 Bedford Agencies Reduce Transfer to County Capital for OP-009 Portie-Ascott and Bedford 84 Capital Climate Change Grant Funding.Option ($262,500) Investment Plan A:Reduce the school portion of Climate Tax$262,500. Fund Emergency Housing Assistance OP-010 Portie-Ascott and Bedford 171 Housing Program using$158,000 from Crisis $420,500 Response Team and Climate Change rant. Establish new Emergency Housing OP-011 Portie-Ascott and Bedford 171 Housing Assistance program designs based on approved funding levels. Reduce Tax Rate.05 cents to balance OP-099 STAFF All All budget based on all published ($115,680) ($680) amendments 21 Amendment Sponsor Budget Page Department Amendment Revenue Expense CIP-001(tied to Portie-Ascott and Bedford 55 Sustainability OP-009) Reduce Funding for Climate Grant Program ($262,500) ($262,500) CIP-091 Staff Amendment 52 AMS Update Year 2(FY2025-26)revenue source transfer from Cardinal Reserve from 1,400,000 to 1,823,121 and subsequently reduce the debt financing amount by 423,121 CIP-092 Staff Amendment 65 AMS Reduce Year 3(FY2026-27)Facility Accessibility, Safety and Security Improvements by$6,000 for Blackwood Farm Park-Security Cameras due to immediate need CIP-093 Staff Amendment 55 Sustainability Reduce Climate Change Mitigation Project in Year 1 (FY2024-25)to$525,000. This difference is reflected in the Operating Budget for County Manager ($51,169) ($51,169) -Sustainability Division to support County wide Climate Action Plan projects CIP-094 Staff Amendment 134 Planning& Update Mebane Water Line Expansion Year 1 Inspections (FY2024-25)revenue source from Article 46 Tax Proceeds to Debt Financing-Article 46 4) Changes in County Staff Positions (Increase in FTE Approved). Department Position Name Fund Start Date FTE Library Services Library Branch Manager General Fund 7/1/2024 1.000 Library Services Librarian II General Fund 9/1/2024 1.000 Library Services Librarian II General Fund 9/1/2024 1.000 Library Services Library Associate II General Fund 7/1/2024 0.125 Library Services Library Associate II General Fund 9/1/2024 1.000 Library Services Library Assistant II General Fund 9/1/2024 1.000 Library Services Library Assistant II General Fund 7/1/2024 0.500 Library Services Library Assistant II General Fund 9/1/2024 1.000 Totals 6.625 Reduction in Force — Due to an ending of ARPA funding, the Manager recommends that the Orange County Board of Commissioners declare that a reduction in force is necessary that will result in the deletion of one position. 5) General Fund Appropriations for Local School Districts The following FY2024-25 General Fund Appropriations for Chapel Hill-Carrboro City Schools and Orange County Schools are approved: a) Current Expense appropriation for local school districts totals $108,090,282 and equates to a per pupil allocation of$5,666 1) The Current Expense appropriation to the Chapel Hill-Carrboro City Schools is $63,124,906 2) The Current Expense appropriation to the Orange County Schools is $44,965,376. b) School Related Debt Service for local school districts totals $19,182,204. c) Additional net County funding for local school districts totals $7,064,666. (1) School Resource Officers and School Health Nurses Contracts - total appropriation of$4,004,666 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. 22 (2) Recurring Capital —total pay-as-you-go funding of$3,060,000 to cover recurring capital funding at both school districts. These funds support facility improvements, equipment and furnishings and vehicle purchases for the districts. 6) Capital Investment Plan Funding for FY2024-25 (Year 1) The following FY2024-25 (Year 1) Capital Investment Plan Appropriations are approved: a) Overall Total Capital Investment Plan Funding of$51,138,858 b) County Capital Projects Funding of$15,889,808 c) School Capital Projects Funding of$32,285,071 d) Water and Sewer Projects Funding of$500,000, Solid Waste Project Funding of $2,138,979; and Sportsplex Project Funding of$325,000 7) County Fee Schedule To adopt the County Fee Schedule to include changes in the FY2024-25 Manager's Recommended Annual Operating Budget and approved by the Board of County Commissioners on June 6, 2024. A motion was made by Commissioner Hamilton, seconded by Commissioner Fowler, to approve the resolution of intent to adopt the FY 2024-25 Annual Operating Budget at the Board of Commissioners Regular Meeting on June 18, 2024. VOTE: UNANIMOUS 7. Closed Session A motion was made by Commissioner Hamilton, seconded by Commissioner Fowler, to enter into closed session pursuant to North Carolina General Statute § 143-318.11(a)(5) "to discuss the County's position and to instruct the County Manager and County Attorney on the negotiating position regarding the terms of a contract to purchase real property," and for the approval of Closed Session Minutes. RECONVENE INTO REGULAR SESSION A motion was made by Commissioner Richards, seconded by Commissioner Hamilton, to reconvene into regular session at 9:53 p.m. VOTE: UNANIMOUS Adjournment A motion was made by Commissioner Fowler, seconded by Commissioner Hamilton, to adjourn the meeting at 9:53 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