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Home My WebLink AboutAgenda 06-03-2025; 8-h - Fiscal Year 2024-25 Budget Amendment #10 1 ORD-2025-021 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 3, 2025 Action Agenda Item No. 8-h SUBJECT: Fiscal Year 2024-25 Budget Amendment #10 DEPARTMENT: County Manager's Office ATTACHMENT(S): INFORMATION CONTACT: Attachment 1. Year-to-Date Budget Kirk Vaughn, (919) 245-2153 Summary PURPOSE: To approve budget, grant, and capital project ordinance amendments for Fiscal Year 2024-25. BACKGROUND: County Manager—Arts Commission 1. The Art Commission is receiving funding of$8,000 from the Town of Chapel Hill and $8,000 from the Town of Carrboro toward expenses associated with the Uproar temporary outdoor artwork exhibition scheduled for this summer. This budget amendment recognizes this contribution and appropriates $16,000 within the Article 46 Fund, outside the General Fund. ALIGNMENT WITH STRATEGIC PLAN: This item supports: • GOAL 2: HEALTHY COMMUNITY OBJECTIVE 7. 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.) • GOAL 6: DIVERSE AND VIBRANT ECONOMY OBJECTIVE 1. Provide family-oriented and inclusive programming or other cultural events for residents and visitors. Transportation/Fleet Services 2. In the summer of 2024, four(4) Transportation Mobility on Demand vehicles were damaged by a cleaning company and subsequently totaled by the County's insurance company. The County's insurance policy provided $233,157 to purchase replacement vehicles. This amendment recognizes the receipt of these funds and provides spending authorization in the County Capital Fund, amending the following Capital Ordinance. 2 Vehicle Replacements ($233,157) - Project# 12000 Revenues for this project: Current FY 2024-25 FY 2024-25 FY 2024-25 Amendment Revised Alternative Financing $5,391,253 $5,391,253 Contribution from Hillsborough $18,000 $18,000 Insurance Reimbursement $26,502 $233,157 $259,659 Sale of Fixed Assets $22,570 $22,570 Total Project Funding $5,458,325 $233,157 $5,691,482 Appropriated for this project: Current FY 2024-25 FY 2024-25 FY 2024-25 Amendment Revised Vehicle Replacement Project Expenditures $5,458,325 $233,157 $5,691,482 Total Costs $5,458,325 $233,157 $5,691,482 ALIGNMENT WITH STRATEGIC PLAN: This item supports: • GOAL 4: MULTI-MODAL TRANSPORTATION OBJECTIVE 1. Identify priorities and resources necessary to implement the Orange County Transit Plan. OBJECTIVE 2. Increase community awareness of all modes of transportation including transit, bike and pedestrian, vehicle, and all other modes. OBJECTIVE 4. 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. OBJECTIVE 6. Update transportation related plans to provide more multi-modal options including rural Orange County. Health 3. The Orange County Health Department receives Medicaid Maximization funds from the North Carolina Department of Health and Human Services, Division of Health Benefits and the Prepaid Health Plans, related to Medicaid Cost Settlement reports and the Medicaid Transformation Quarterly Directed Payments. Local Health Departments submit an annual Medicaid Cost Settlement report to the North Carolina Department of Health and Human Services to reconcile the State portion of the amount of Medicaid reimbursement owed to each Health Department for the cost of providing medical and dental services to Medicaid recipients. Medicaid Cost Settlement payments, as one-time payments, are budgeted toward capital improvements like renovations of Health Department facilities that serve Medicaid eligible patients. An additional $474,134 of Medicaid Maximization funding and $132,585 of interest income will be recognized, amending the project ordinance in the County Capital Fund, outside of the General Fund: 3 Medicaid Maximization Funds ($606,719) - Project#30012 Revenues for this project: Current FY 2024-25 FY 2024-25 FY 2024-25 Amendment Revised Medicaid Maximization Funds $14,360,971 $474,134 $14,835,105 Interest Income $0 $132,585 $132,585 Total Project Funding $14,360,971 $606,719 $14,967,690 Appropriated for this project: Current FY 2024-25 FY 2024-25 FY 2024-25 Amendment Revised Transfer to GF $14,360,971 $606,719 $14,967,690 Total Costs $14,360,971 $606,719 $14,967,690 ALIGNMENT WITH STRATEGIC PLAN: This item supports: • MISSION STATEMENT — 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. Department on Aging 4. The Department on Aging will use Master Aging Plan (MAP) Funding to increase the full- time equivalent (FTE) for the Human Services Coordinator from .75 to 1.0 through June 30, 2026 for the expansion of the Respite Program and Dementia Friendly Community Initiative. Funding for this time limited FTE is within the Multi-Year Grant Fund, outside of the General Fund. This budget amendment extends the .25 Time Limited FTE through June 30, 2026 ALIGNMENT WITH STRATEGIC PLAN: This item supports: • GOAL 2: HEALTHY COMMUNITY OBJECTIVE 7. 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.) Sportsplex 5. The County will replace the domestic water boiler and competition pool boiler at the Sportsplex due to current conditions and long lead times for replacements. Based on current bid pricing, the total project cost will be debt financed at $95,000. This budget amendment appropriates $95,000 in debt financing and increases the following Sportsplex Facility Maintenance/Replacement Project Ordinance within the Sportsplex Renewal & Replacement Capital Fund by $95,000. 4 Sportsplex Facility Maintenance/Replacements ($95,000) - Project#36001 Revenues for this project: Current FY 2024-25 FY 2024-25 FY 2024-25 Amendment Revised Alternative Financing $147,354 $95,000 $242,354 Total Project Funding $147,354 $95,000 $242,354 Appropriated for this project: Current FY 2024-25 FY 2024-25 FY 2024-25 Amendment Revised Capital Project Expenditures $147,354 $95,000 $242,354 Total Costs $147,354 $95,000 $242,354 ALIGNMENT WITH STRATEGIC PLAN: This item supports: • GOAL 1: ENVIRONMENTAL PROTECTION AND CLIMATE ACTION OBJECTIVE 2. Invest in our infrastructure to reduce the environmental impact of the County fleet/facilities and improve safety. • GOAL 2: HEALTHY COMMUNITY OBJECTIVE .7 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.) Miscellaneous 6. The FY 2024-25 Approved Budget included Wage Increase funds of$3,200,000, Merit Pay Adjustment of $440,000 and a Salary Savings allocation of -$4,469,900. This budget amendment provides for the allocation of these funds within the affected departments in the General Fund. 7. The County has identified that it will receive $450,000 in additional interest income, due to a higher interest rate environment. It is proposed that the County use $150,000 of these funds to offset increased utility expenses in the Asset Management Services department, $225,000 for Risk Management due to increased Worker's Compensation Premiums and Claims, and $75,000 to provide a backstop to the Inspection Fund due to slowing permitting activity. This increases the authorization in the General Fund by $450,000 and the Inspection Fund by $75,000. ALIGNMENT WITH STRATEGIC PLAN: This item supports: • MISSION STATEMENT — 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. Other Funds 8. The Health and Dental Fund, which funds employee and retiree health insurance, has experienced higher activity for Pre-65 Retirees for FY 2024-25 and is expected to exceed budget by$400,000. This amount will be covered using existing fund balance in the Health & Dental Insurance Fund, outside of the General Fund. 5 9. The Housing Choice Voucher Fund has received more revenue from the federal government due to placing more clients into vouchers than anticipated. This recognizes $1,000,000 in additional revenue and authorizes expenses in the Housing Choice Voucher Fund, outside of the General Fund. 10.The Chapel Hill-Carrboro City Schools District Tax Fund provides all tax revenue by the special district tax levy generated directly to the school district. That levy is estimated to generate an additional $500,000 above the original budget. This increases the revenue in the District Tax Fund, outside of the General Fund. 11.The County pays monthly fees for document retention and storage in the Orange-Person- Chatham (OPC) Retiree Health Fund, outside of the General Fund. This amendment increases the authorization in the fund by $19,000, due to increases in storage costs. 12.The Sportsplex Fund continues to experience improved revenue performance recovering from the pandemic. This recognizes $1,000,000 in additional revenue, which will support inflationary expenses experienced by the Sportsplex, and improves the position of the enterprise fund. ALIGNMENT WITH STRATEGIC PLAN: This item supports: • MISSION STATEMENT — 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. FINANCIAL IMPACT: The budget, grant, and capital ordinance amendments increase the authorization in the General Fund by $450,000, the Health and Dental Fund by $400,000, the Housing Choice Voucher Fund by $1,000,000, the County Capital Fund by $839,876, The Inspections Fund by $75,000, the Sportsplex Operations Fund by $1,000,000, the Sportsplex Renewal and Replacement Fund by $95,000, the Article 46 Fund by $16,000, The Chapel Hill- Carrboro City Schools District Tax Fund by $500,000 and the OPC Retiree Health Fund by $19,000. RECOMMENDATION(S): The Manager recommends the Board approve the budget, grant, and capital project ordinance amendments for Fiscal Year 2024-25. 6 Year-To-Date Budget Summary Fiscal Year 2024-25 Sportsplex Chapel Hill- Housing Sportsplex OPC Employee Renewal Article 46 Carrboro Choice County Inspection Operations Retiree Fund Budget Summary General Fund Health and and Sales Tax City Schools Dental Fund Voucher Capital s Fund Enterprise Replaceme Fund District Tax Health Fund Fund Fund ntFund Fund Original Budget Revenue $286,304,076 $14,872,653 $7,542,500 $15,889,808 $1,381,840 $5,214,172 $220,000 $6,391,998 $28,419,218 $4,454 Interfund Transfer Revenue $1,006,039 $3,172,894 $384,377 $799,669 Fund Balance Appropiation $7,100,000 Total Original Budget $294,410,115 $18,045,547 $7,542,500 $15,889,808 $1,766,217 $5,214,172 $1,019,669 $6,391,998 $28,419,218 $4,454 Additional Revenue Received Through Budget Amendment#10(June 3rd) Grant Funds $797,276 $1,063,896 $1,306,694 $338,500 Non Grant Funds $669,923 -$773,262 $1,000,000 $557,354 $17,700 $500,000 Additional Interfund Transfer Revenue $143,779 $129,920 $75,000 Additional Fund Balance Appropriation $2,241,528 $400,000 $11,735 $21,671 $19,000 Total Amended Budget $298,262,621 $18,445,547 $8,618,131 $16,553,160 $1,841,217 $6,235,843 $1,577,023 $6,748,198 $28,919,218 $23,454 Dollar Change in 2024-25 Approved Budget $3,852,506 $400,000 $1,075,631 $663,352 $75,000 $1,021,671 $557,354 $356,200 $500,000 $19,000 Change in 2024-25 Approved Budget 1 1.31%1 2.69%1 14.26%1 4.17%1 5.43%1 19.59%1 54.66%1 5.57%1 1.76% 426.58%