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HomeMy WebLinkAboutAgenda 06-17-2025; 8-a - Minutes 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 17, 2025 Action Agenda Item No. 8-a SUBJECT: Minutes DEPARTMENT: Board of County Commissioners ATTACHMENT(S): INFORMATION CONTACT: Draft Minutes (under separate cover) Laura Jensen, Clerk to the Board, 919- 245-2130 PURPOSE: To correct and/or approve the draft minutes as submitted by the Clerk to the Board as listed below. BACKGROUND: In accordance with 153A-42 of the General Statutes, the Governing Board has the legal duty to approve all minutes that are entered into the official journal of the Board's proceedings. Attachment 1: April 22, 2025 Budget Work Session - CIP Attachment 2: April 29, 2025 Joint Meeting with School Boards Attachment 3: May 6, 2025 Business Meeting FINANCIAL IMPACT: There is no financial impact associated with this item. ALIGNMENT WITH STRATEGIC PLAN: This item supports: • GUIDING PRINCIPLE — 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. RECOMMENDATION(S): The Manager recommends that the Board approve minutes as presented or as amended. Attachment 1 1 1 DRAFT MINUTES 2 ORANGE COUNTY 3 BOARD OF COMMISSIONERS 4 BUDGET WORK SESSION - CIP 5 April 22, 2025 6 7:00 p.m. 7 8 The Orange County Board of Commissioners met for a Budget Work Session on the CIP on 9 Tuesday, April 22, 2025, at 7:00 p.m. at the Whitted Human Services Center in Hillsborough, 10 NC. 11 12 COUNTY COMMISSIONERS PRESENT: Chair Jamezetta Bedford and Commissioners Marilyn 13 Carter, Amy Fowler, Sally Greene, and Earl McKee 14 COUNTY COMMISSIONERS ABSENT: Vice-Chair Jean Hamilton and Commissioner Phyllis 15 Portie-Ascott 16 COUNTY ATTORNEYS PRESENT: John Roberts 17 COUNTY STAFF PRESENT: County Manager Travis Myren, Deputy County Manager Caitlin 18 Fenhagen, and Clerk to the Board Laura Jensen. (All other staff members will be identified 19 appropriately below) 20 21 Chair Bedford called the meeting to order at 7:00 p.m. All commissioners were present 22 except Vice-Chair Hamilton and Commissioner Portie-Ascott. 23 24 1. Discussion of Manager's Recommended FY 2025-35 Capital Investment Plan (CIP) 25 The Board discussed the Manager's Recommended FY 2025-35 Capital Investment Plan. 26 27 BACKGROUND: Each year, the County produces a Capital Investment Plan (CIP) that 28 establishes a budget planning guide related to capital needs for the County and Schools. The 29 10-Year CIP is evaluated annually to include year-to-year changes in priorities, needs, and 30 available resources. Approval of the CIP commits the County to the first-year funding only of 31 the capital projects; all other years are used as a planning tool and serves as a financial plan 32 33 Capital Investment Plan — Overview 34 The FY 2025-35 CIP includes County Projects, School Projects, and Proprietary Projects. The 35 School Projects include Chapel Hill-Carrboro City Schools, Orange County Schools, and 36 Durham Technical Community College — Orange County Campus projects. The Proprietary 37 Projects include Water and Sewer, Solid Waste Enterprise Fund, and Sportsplex projects. 38 39 The CIP has been prepared anticipating moderate economic growth of approximately 2% in 40 property tax growth and 4% in sales tax growth annually over the next ten (10) years. The CIP 41 will rely substantially on debt financing to fund the projects and these required debt amounts are 42 fully integrated in the County's Long-Term Debt Model (page 40 in the CIP document provides a 43 bar chart of the ten-year funding plan). 44 45 The meeting discussion will focus on the specific projects in the County and Proprietary CIP. 46 Note: Page numbers are referenced below as they appear in the CIP document. See 47 Attachment A for the Overall CIP Summary (page 36), County CIP Projects Summary (page 48), 48 the Proprietary CIP Summaries (page 119), and School CIP Summary (page 131). 49 2 1 Given voter approval of the Bond in November 2024, there will also be a discussion of the 2 funding structure and new organization of the School CIP. Discussion of specific Schools CIP 3 projects is scheduled for the May 15, 2025 Budget Work Session. 4 5 Discussion at this meeting will also be directed to the Debt Service and Debt Capacity — 6 General Fund (page 171), the Water and Sewer Debt Service requirements paid with Article 46 7 Quarter Cent Sales Tax proceeds (page 172), and Debt Service requirements for Solid Waste 8 (page 173) and Sportsplex (page 174). 9 10 Travis Myren made the following presentation: 11 12 Slide #1 ORANGE COUNTY 1v0R-rUl CAROLYNA GRANGE COUNTY CAPITAL INVESTMENT PLAN PY2©25-35 Board of Commissioners'Work Session April 22, 2025 13 14 15 Slide #2 3 Purpose • Purpose of the Capital Investment Plan Board Approves Year 1 of the Plan as the FY2025 -26 Capital Budget — Ten Year Planning Horizon(FY2025-35) • Imposes Planning Discipline • No Surprises Debt Service Requirements • Amount of Funds Required in the Operating Budget • Measures Debt Capacity—Debt Service Compared to Expected General Fund Revenue • Predicts Potential Tax Increases Required to Pay Debt Service ORANGE COUNTY 2 NORlFFI CAROLINA 1 2 Slide #3 FY2O25-35 Recommended Capital Investment Plan • Plan Alignment — Countywide Strategic Plan—Priorities — Responsive Projects • Environmental Protection and Climate Action • Climate Action Plan Projects • Healthy Community - Behavioral Health Crisis Diversion Facility • Housing for All Affordable Housing Funding • Multi-modal Transportation Mountains to Sea Trail • Public Education/Learning Community School Pay-go for Planning and Design Diverse and Vibrant Economy PFPC HVAC Controls ORANGE COUNTY 3 N"R`I'H CAROLINA 3 4 5 Slide #4 4 FY2025-35 Recommended Capital Investment Plan • Total Recommended FY2025-26 Capital Expenditures -$76.3 million — County Capital $38.5 million — Proprietary Funds $3.7 million — School Capital $34.1 million GRANGE COUNTY 4 NORTH CAROLINA 1 2 3 5 1 Slide #5 FY2025-35 Recommended Capital Investment Plan • Animal Services - $818,720 Environmentai Protection and C)hrate Action (p- 52) County Long Range Facilities Plan - Department of Agriculture Recommendations Replace dog-hold enclosures-$404,460 Resurface epoxy floor-x110,000 additional protect U, cost to fund actual bid amount + $514,460 Total Dept.of Ag.Recommendations f Other Improvements Add doors between rooms for improved cleaNrg TM glass • Improve signage • Replace exterior doors - -- • $304,260 Total for Other Improvements ORANGE C6UN1TY NC)R7'H CARC-3LINA 5 2 3 Travis Myren said the Department of Agriculture recommendations listed in slide #7 are 4 required to maintain accreditation for the Animal Services department. 5 6 Slide #6 FY2025-35 Recommended Capital Investment Plan * Behavioral Health Crisis Diversion .Healthy Community County Long Range Facilities Plan Facility :i ------------ I — $22.7 million Construction in FY2025-26 �i 1 — $1,823,121 Revenue Applied from Cardinal ? L Innovations One Time Transition Funds — Staff amendment to reduce the construction budget by$285,000, consistent with BoardSY action on the CMAR contract f �' • $173,928-Gilbane pre-construction services $35.000-Payment in lieu of taxes to Town of Hillsborough to to eventually connect stubbed out road i $70,072—Closing costs and permitting '•- t -- — 6 _ 7 8 Commissioner Carter asked if there was any cost sharing in the infrastructure 9 improvements for the behavioral health crisis diversion facility. 6 1 Travis Myren said there is no cost sharing, but the storm water retention facilities will be 2 sized to accommodate both the county's development and future development. He said it must 3 be done by the county, because the county is developing their parcel first. 4 Commissioner Carter asked if it was part of closing costs. 5 Travis Myren said it is part of site costs. 6 Chair Bedford asked if there is a realtor commission cost. 7 Travis Myren said no. 8 Chair Bedford asked about the other closing and permitting costs. 9 Travis Myren said the permitting fees are to the Town of Hillsborough and to the State of 10 North Carolina. 11 Alan Dorman, Asset Management Services Director, said some of those costs include 12 contingency. 13 14 Slide #7 1=Y2025-35 Recommended Capital Investment Plan • Behavioral Health Crisis Diversion Facility Timeline COMPLETE board approves purchase and sale agreement and Construction Manager at Risk(CMAR)contract Spring 2025 Final site plan submitted to Town of Hillsborough staff for approval Summer 2025 Final construction documents prepared Fall 2025 Permitting completed Winter 2025 GMAR issues final Guaranteed Maximum Price(GMP) Winter 2425 Board considers acceptance of final GMP Contract includes four(4)Board prior Board approvals at different stages of the project Winter 2025 Construction begins Early 2027 Owner acceptance of facility ORANGE COUNTY r roa-t H CARc TTNA 15 16 17 18 7 1 Slide #8 FY2025-35 Recommended Capital Investment Plan Mission Support Container a Storage + • Board of Elections Storage - $381,000 (p. 54) — $296,000 approved in FY2024-25 to create climate-controlled storage for Q2 � 3 voting equipment a — Additional funds of$381,000 needed due to new cost estimates % _ nua6 Flood Alb- • Construction costs and small scale of project Ab- / are contributing factors y .v Ab- 2 3 Commissioner Greene asked about the increased cost for the project. 4 Chair Bedford asked if storage should be in a different location. 5 Angel Barnes, Capital Projects Manager, said the small square footage resulted in a 6 higher cost estimate and there are historic district requirements that must be included. 7 Travis Myren said they can look at alternatives, but he is confident that the Board of 8 Elections will strongly prefer to be collocated with their staff. 9 Chair Bedford said it is also a security issue for elections. 10 Commissioner Carter noted that the property is out of the flood plain and way out of the 11 500-year zone. 12 Chair Bedford asked if the basement at Elections had been elevated. 13 Alan Dorman said it is waterproof and there is nothing of value located on the lower 14 level. 15 Commissioner McKee asked if there is space that is climate controlled that could be 16 used instead. 17 Travis Myren said this is new construction and it is an expansion of an existing facility. 18 He also said that the Board of Elections would insist that the voting equipment be co-located 19 with staff. 20 Commissioner McKee said the voting equipment is currently in storage units and he 21 does not see that being any more secure there 100 feet away than it would be in an existing 22 climate-controlled building and entry controlled. He said he is not sure how many square feet 23 are needed for the machines. 24 Alan Dorman said it would be an increase of 1,200 square feet. 25 Commissioner McKee said it would be the Board of Commissioners' decision as to 26 where they are located and even if the Board of Elections does not agree, he does not see that 27 they need to spend funds to create existing space that can be used. 28 Travis Myren said yes. 29 30 8 1 9 1 Slide #9 FY2025-35 Recommended Capital Investment Plan Fnvironmenta� 'totection and Climate Actio,: • Climate Change Mitigation $267,750 All Climate Action Plan Focus Areas (p 56) Green Infrastructure Workforce development Program l — Climate mitigation grants to non-profit and public agencies through a formal competitive l„ grant process — Originally tied to 1/.cent of property tax rate Y — Manager recommends disconnecting future funding available for grants from tax rate — Future years assume 2% annual growth in amount available for grants Orange County students planting native plants to control stormwater erasion and runoff in a Carrboro neighborhood. �r1 ORANGE COUNTY NOKI-H (_AR0L1NA 9 2 3 Commissioner Greene said she had sent an email earlier in the day and discussed the 4 history of the grants. She said she hoped that the county would get back to budgeting $400,000 5 for the grant program. 6 Commissioner McKee noted that the county participates in other climate change 7 mitigation strategies. He said he supported the County Manager's recommendation. 8 Commissioner Greene said the community grant program allows the county to spread 9 money into the community to address climate change. 10 Commissioner McKee said he has concerns about raising property taxes to cover debt 11 and the impact on residents. 12 13 10 1 Slide #10 FY2025-35 Recommended Capital Investment. Plan • Climate Change Mitigation Project Status _ t FY2024-25 Awards Supplemental weatherizatiorl to Habitat for Humanity $55,000 In progress 7hadeSchools Trees for[he Triangle $50,000 In progress home repair projectsstructure Warkforce Urban Sustainability reen infrastructure and Urban Sustainability nt Program SolulioRS $58,100 In progress apprenticeship program for Salutlons $69,146 Completedrange Counly Schools lar on St.,Joseph's Solar Equity $50,1)}0 In progress Hillsborough United ch Rooftop solar Church of Christ 810,000 Completed Electrical panel for Solar Project EMPOWERment $19,800 In progress Rooftop solar Binkley Baptist Church $49,036 Completed Prairie Restoration and Ronflop solar on Peach Reforestation Projects partments Eno River Association $22;600 In progress EMPOWERment $61,623 In progress Food f=orest Jubilee Healing Farm 512,000 In progress Installation of gardens,terrace Club Nova $37,227 In progress and greenhouse Rooftop Solar on Habitat Homes Habitat for Humanity $W.OW In progress LED light campus changeover CHCCS $94,014 Completed 54-panel solar panel pedestal with battery storagr and EV Orange County Schools S1 BR,029 In progress barging stations ORANGE COUNTY NORTH CAROLINA 2 3 Chair Bedford said she wanted to discuss community resilience hubs. She said right now 4 there are just schools being used but if people need to be housed for a longer period and 5 schools need to start back would they need to house people in a different place. She asked if 6 the $212,000 is intended to buy generators. 7 Amy Eckberg, Sustainability Projects Manager, said there was some funding allocated to 8 establish some resilience centers, and they are looking at having them serve as areas that can 9 provide refuge during storms when the power is out. She said ideally, they would run off of solar 10 power. She said that the value of these centers was evident during Helene. She said they are 11 looking at the Senior Centers for the hubs. She said she was excited to announce that they just 12 received a grant for solar installation on the Cedar Grove Community Center for almost 13 $200,000 from the State Office of Energy. 14 Chair Bedford said that is wonderful. She asked if it would come back and if some of the 15 $212,000 could be used for some of the RENA expansion to create one of these hubs. 16 Amy Eckberg said yes. 17 Alan Dorman said all community centers and senior centers have whole building 18 generators. 19 Chair Bedford asked if the funds are needed then. 20 Amy Eckberg said the funds would also be used for solar and battery backup storage 21 along with other resilience features. 22 23 11 1 Slide #11 FY2025-35 Recommended Capital Investment Plan Environmental Protection and Climate Action Transportation Goals • Electric Vehicle & Infrastructure Study - $100,000 (p. 59) — Climate Action Plan includes a goal to transition the County's fleet to electric by 2035 — Study will help develop a comprehensive , implementation strategy for this transition x • Analyze the size of the fleet to right size • Review purchasing options • Identify barriers to fleet conversion • Create an EV charging infrastructure implementation plan—right number of chargers in the right places , 2 3 Commissioner Carter asked how the planning listed in slide #11 connects to future EV 4 projects. 5 Travis Myren said those future projects would be guided by this study. 6 Commissioner McKee asked if there is anyone on staff who could perform this study. 7 Travis Myren said he could not think of anyone on staff with the technical expertise. 8 Commissioner McKee said locating charging stations would be based on vehicle 9 numbers in the area and the space they would need. 10 Travis Myren said there is a need for market knowledge and staff is at capacity so there 11 is not a person available to do this work without taking from another project. 12 Commissioner McKee said some of the worst decisions he has made over the last 15 13 years have involved studies and consultants. He said he understands that he may be walking 14 past dollars to find pennies but at some point, they are going to have to start looking at pennies. 15 Chair Bedford said locating EV charging stations is a small part of the study. She said 16 reviewing purchasing options to compare strategies and figuring out what sets them up for the 17 most value is an additional part of this study. 18 Commissioner McKee said he would like a presentation for the current fleet of EVs and 19 gasoline vehicles, so they can compare apples to apples. He said he would like to see cost of 20 running the vehicles per mile and repair costs. 21 Chair Bedford said climate change should also be included. She said they have 22 reviewed elements of it, but they have not had a full presentation. She said it might be that they 23 ask the consultant to do that. 24 Travis Myren said that type of analysis is part of the scope for the consultant. 25 Commissioner McKee said he understands the trend is toward electric and he has no 26 issue with that, but he wants to make sure they follow their fiduciary duty to the public. 27 Amy Eckberg said the county is still able to take advantage of direct pay rebates and 28 that is 30%. She said they can get a huge chunk of money back for any electric vehicle 29 purchases and those funds could be re-invested. She said staff does not have the capacity to 30 figure out what their electrical capacity is and that is something that they need to study. 12 1 Chair Bedford said that this would be taken as a petition to include that in the study. 2 3 Slide #12 FY2025-35 Recommended Capital Investment Plan Environmental Protection and Climate Action Built Environment and Energy Goals • Electrical Upgrades $175,787 (p. 60) — Robert& Pearl Seymour Center-$107,437 Add additional lighting and rework/install outlets — Fuel Station-$14,850 • Full electrical system renovation — Emergency Services Station 1 -$3,500 Update distribution panel — Energy Efficiency LED Upgrades-$50,000 ORANGE COUNTY NC)RTFI C:AROCINA 4 12 5 Chair Bedford said that in year 4, costs go up dramatically for electrical upgrades. She 6 said there was also an upgrade for the Justice Center in the future, which does not seem to be 7 necessary given discussions about other Justice Center improvements. 8 Travis Myren said that any upgrades would be timed with other projects. 9 Chair Bedford said there is $1.1 million in year six for a full electrical redo at the West 10 Campus and for the Passmore Center in year seven. She asked what a full electrical redo 11 includes. 12 Angel Barnes said a full electrical redo looks at lighting fixtures, breaker panels, 13 transformers, and automatic or manual switches. She said equipment wears out over time and 14 this would look at anything from the transformer over. 15 Chair Bedford said it is like a schedule for replacing roofs. She asked why that is not 16 needed for residential. 17 Angel Barnes said it is recommended for commercial buildings. 18 Commissioner McKee asked if it is recommended maintenance. 19 Angel Barnes said yes. 20 Commissioner McKee asked if it is recommended from a safety perspective or safety 21 audit. 22 Angel Barnes said not from a safety audit. 23 Commissioner McKee asked if they moved it back and verified that there are no safety 24 issues if there is a requirement to hold to the recommendation. He said he did not believe it 25 would be necessary. 26 Chair Bedford said they pay about $55,000 every year for the inspection of roofs and 27 asked if it is possible that they can adjust and get the electric inspected. 28 Alan Dorman said if it were a safety issue they would have a different approach but that 29 it is not at this time. 13 1 Commissioner McKee said he wants to make sure they are safe, but this is a private 2 industry standard that was developed by people that sell this material. 3 Commissioner Carter asked if there are insurance implications. 4 Travis Myren said this is in the context of a 10-year plan. He said that as projects get 5 closer, they can look to see if anything can be pushed out farther. He said a 10-year plan is 6 meant to capture expected costs so the county can plan. 7 Chair Bedford said if it can be moved two years, that could save $2-$3 million dollars 8 and those could be saved for other emergency needs and it would make a difference in debt 9 service, as well. 10 Commissioner Fowler asked what the recommended frequency is for full electrical 11 redoes. 12 Angel Barnes said she would look into it. 13 Commissioner McKee said you do not want to wait for things to get bad or for buildings 14 to collapse because the county delayed necessary improvements. He said that he does not 15 want to continue the mindset of everything is fine and we can keep doing as they have been 16 doing. 17 Commissioner Carter asked if there are any operational savings from the upgrades. 18 Travis Myren said they are representing a general decline in the rate of increase based 19 on the energy efficiency. 20 Chair Bedford said that would have to do with LED lights but not necessary the 21 transformers and wires. 22 Commissioner Fowler said the lifespan is 20-30 years and she would like to know where 23 they are in that. 24 Chair Bedford said it would be good to have an inspection. 25 Alan Dorman said West Campus was built in 2009 and he said they built a lot of 26 buildings between 2007-2009. 27 Commissioner Fowler said it looks like we are using the 20-year rather than the 20-30- 28 year plan. 29 30 Slide #13 14 FY2025-35 Recommended Capital Investment Plan Mission Support • Evidence Storage Building- $3,708,500 - (p. 63) — Current evidence storage is in the former detention center facility — New building to be located at the Northern Campus on US 70 West — Includes office space for staff members who manage the evidence — Size and scope of new facility under review as part of the Justice System Space Needs Work Group ORANGE COUNTY +a NORTH CAROLINA 1 2 Travis Myren said that if the Sheriff's Office is moved to the Link Building, there will also 3 be capacity for "warm" evidence storage. He said that it would decrease the size of the 4 evidence storage building listed in slide #13 and reduce the cost to about $2.4 million. He said 5 the smaller storage building would still be needed for"cold" storage. 6 Chair Bedford asked what the timeline is for deciding on the Link Building and amending 7 the budget. 8 Travis Myren said that staff will work with the Sheriff's Office to make a final 9 determination and then they will bring that back to the Board as a budget amendment. 10 11 Slide #14 15 FY2025-35 Recommended Capital Investment Plan Erj., unmental F;ntection and Climate Action Built Environment and Energy Goals • Facades $1,365,800 (p. 64) - — Exterior doors, windows, sidewalks, - retaining walls, loading docks • Richard E whiffed Complex(Buildings A&B) -- Replacement of Exterior Windows- <, $1,045,000 — Replacement of Exterior doors&Retaining Walls-$302,450 • Gateway Center—Awning over entrance door -$15,000 • Eno Mountain Equipment Storage— SidewalklConcrete Repairs$3,350 ©RANGE COUNTY 14 NOR-rH CAROLINA 1 2 Chair Bedford asked when the last time the windows in the Whitted Building were 3 updated. 4 Alan Dorman said some were more recent, but many were from 2004. 5 6 16 1 Slide #15 FY2025-35 Recommended Capital Investment. Plan Mission Support • Facility Accessibility, Safety, and - Fire Alarm and Fire Suppression System Security Improvements - $25,600 Replacements - $511,746 (p. 68) (p. 66) — Whitted Human Services — Facility Wide Accessibility Improvements Fire Alarm System Upgrades-$305,745 • Emergency Exit Lighting-$7,920 — Future years include elevator and security — Animal Services system upgrades. • Fire Alarm System Upgrades-$173,075 — Fire door replacements Countywide - $25,000 New building code requires annual inspections leading to more replacements ORANGE COUNTY NORTH CAROLINA 2 3 4 Slide #16 FY2025-35 Recommended Capital Investment Plan Lii,aunmental Protection ane;d.Lmale Action RPsilrant Cnmrritiniry Goals • Heating, Ventilation, and Cooling (HVAC) r Projects - $427,224 (p. 74) fir. — Component Replacement-$50,000 • Proactively maintain system components to extend the life of the systems — Justice Facility Air and Heat-$373,824 • Phased replacement of 30 of the water source heat pumps across the Justice Facility • Remainder of the heat pumps are scheduled for replacement in FY2026-27 — Eno Mountain Communication Equipment Storage- $3,400 — Stores fire/EMS paging repeaters,Sheriff's Office VHF repeater,and microwave link equipment that connects to the Emergency Services Headquarters 5 6 Commissioner McKee asked the age of the heat pumps. 7 Alan Dorman said they were done around 2007. 8 Commissioner McKee asked if there are issues with the heat pumps or if this one a 9 schedule. 17 1 Alan Dorman said he would not say there are problems, but that they do not want to be 2 too conservative on replacing heat pumps. 3 Chair Bedford said they have lasted almost 20 years. 4 Commissioner Carter asked about the generator projects in the CIR She asked for a list 5 of all buildings with backup generators. 6 7 Slide #17 FY2025-35 Recommended Capital Investment Plan Environmental Protection and Climate Action Built Environment and Energy Goals • Interior Finish Replacements - $152,000 (p. 76) — Seymour Center Great Hall window coverings- $61,000 — Enclose administrative check-in area at Hillsborough Commons (DSS)-$91,000 ORANGE COUNTY NORTH CAROLINA n 8 9 Alan Dorman said the enclosure at Hillsborough Commons was to preserve client 10 confidentiality. 11 Commissioner Greene asked for more information about the improvements to the 12 Seymour Center. 13 Travis Myren said the Seymour Center could be deferred, but the Hillsborough 14 Commons was a priority. 15 Alan Dorman said the Seymour Center project would increase energy efficiency. 16 17 18 1 Slide #18 FY2025-35 Recommended Capital Investment Plan F_nvironmental Protection and Climate Action Built Environment and Energy Goals • Lake Orange — Dam Rehabilitation - $970,000 (p. 79) — Accommodate cost increases of Intake Tower project originally authorized in prior years based on an updated engineering estimate — Future years will replace existing emergency spillway and concrete spillway channel Staff will continue to seek federal and private infrastructure grants to reduce the cost ORANGE COUNTY a NOIYTH CAROLINA 2 3 Commissioner McKee asked if federal grants could offset the cost of dam rehabilitation. 4 Travis Myren said yes. 5 6 Slide #19 FY2025-35 Recommended Capital Investment Plan Built Environment and Energy Goals Resilient Community Goals • Parking Lot Improvements - $191,029 (p. 80) - - Repave Board of Elections Parking- $124,242 — Repave Emergency Services Parking Lot and Driveway -$36,787 — Other Repair, Patching, Striping, Sealing - $30,000 — Review to reduce unnecessary parking and create more green spaces ORANGE COUNTY '� NORTH CAROLINA 7 8 Commissioner Carter asked if the Elections parking lot is in the flood plain. 9 Travis Myren said yes, a portion of it. 10 19 1 Slide #20 FY2025-35 Recommended Capital Investment Plan Environmental Protacllon and Comate Action Green Community Goals Piedmont Food Processing Center- ` 17 $120,000 (p. 82) 17 — FY2024-25 Budget included replacement ofVol the HVAC system at PFPC — FY2025-26 project adds system controls for better system management and control hO — Funded from Article 46 Sales Tax Proceeds. ORANGE COUNTY 2 3 Commissioner Carter asked if the PFPC was included in an emergency preparedness 4 plan. 5 Travis Myren said he did not think so, but he would look into it. 6 Commissioner McKee asked if all the participants in the facility are private enterprises. 7 Travis Myren said yes. 8 Commissioner McKee said that probably would affect their participation in an emergency 9 preparedness plan. 10 Chair Bedford said PFPC met with Emergency Services, and they do have large 11 capacity refrigerators and commercial kitchens. 12 13 20 1 Slide #21 FY2025-35 Recommended Capital Investment. Plan Environmental Protection and Climate A Mission Support Resource Conservation Goals • Plumbing Repairs - $8,900 (p. 84) Register of Deeds Automation - $80,000 (p. 87) — Gateway Center water fountains • Including bottle filling functionality — Multiyear account to finance technology improvements in Register of Deeds Office — Collection of funds is mandated under General Statute ORANGE COUNTY 21 NORTH CAROLINA 2 3 Chair Bedford said in year four, septic will be done at the Cedar Grove Community 4 Center. She said there was a study on the septic when she first was on the Board, and it is 5 something that needs to be looked at each year. 6 7 Slide #22 FY2025-35 Recommended Capital Investment Plan Environmental Protection and Climate Action - Built Environment and Energy Goals • Roofing - $221,710 (p. 89) — Annual inspections and repair program - $55,000 — Roof Replacements& Repairs • Efland Cheeks community Center-$145,410 • Eno Mountain Comm Tower-$2,500 • Fuel Station-$18,800 _ ORANGE COUNTY NC)R"1-1-I CAROLINA zz 8 9 Chair Bedford asked about a future project for the Rogers Road Community Center. She 10 said the project seems to have grown. 21 1 Travis Myren said that to accommodate all of the programming needs, the project would 2 need to be two stories. He said that the Board could review the scope of the project. He said all 3 of the needs were addressed by the current occupants and the Board can take a closer look. He 4 said that the impervious surface does not allow them to build out, so they have to build up and 5 then they have to add elevators, and it certainly affects the costs. 6 Chair Bedford asked for this to be brought back at a future work session. 7 8 Slide #23 FY2025-35 Recommended Capital Investment Plan Environmental Protection and Climate Action county Fleet EV stations r, r • Electric Vehicle Charging Stations F for County Vehicles - $362,448 (p. 94) — 16 Charging Stations based on current and planned EV assignments-$276,488 • Asset Management Services(2) Y • Eno River Parking Beck(4) • Hillsborough Commons(2) • Bonnie B Davis Center(3) • Transportation Services(1) • whitted Building (4) — Additional Funds needed to complete staff EV charges approved in FY2024-25 I - $86,000 A— 23 9 10 Chair Bedford asked about the solar photovoltaic systems in a future year project. She 11 asked if they are already put in at new builds. 12 Travis Myren said yes. 13 Chair Bedford asked if they are in the EMS substations. 14 Travis Myren said that the county looks at feasibility for solar on all new buildings. He 15 said that he saw 1,000% tariff on solar panels, so it depends on costs right now on if any of it is 16 affordable. 17 Alan Dorman said they are working on a feasibility study now to see where they can get 18 the most solar energy per dollar. 19 Commissioner Fowler asked if the EV study would be done before the charging stations. 20 Alan Dorman said that the study would be done before implementation of any charging 21 stations. 22 Chair Bedford asked if an expansion of Southern Human Services Center is necessary. 23 She said it does not seem crowded when she visits. 24 Travis Myren said that project renovates the current space and also looks at expansion. 25 He said the exam rooms need to be upgraded. He said they could review the expansion 26 aspect. 27 Chair Bedford said she would like to see figures for the cost with and without the 28 expansion. 29 Commissioner Fowler asked if Medicaid funding would be lost if they are not spent in a 30 certain timeframe. 22 1 Travis Myren said they roll from year to year. 2 Chair Bedford said the focus of those funds are limited. 3 Commissioner Carter asked if the EV study could be presented to the Board. 4 Travis Myren said yes. 5 6 Slide #24 FY2025-35 Recommended Vehicle Replacements _nvitunmenttd flrotectiuo af)d Ghfllare Actio Transportation Goals • Vehicle Replacements - $3,567,530 total (p. 95) — Public Safety Priorities • Emergency Services $2,053,304 — Ambulances(3)-$1.744,539 — Administrative Vehicles(3)—$308,765 • Hillsborough F=ire Marshall (reimbursed) $9,000 • Sheriff's Office vehicles $598,271 • Total Public Safety $2,664,575 �1 ORANGE COUNTY 24 NORTH CAROLINA NA 8 Chair Bedford asked if all of the ambulances are new vehicles or replacements. 9 Travis Myren said all are replacements. 10 Commissioner McKee asked what administrative vehicles are and why are they so 11 expensive. 12 Travis Myren said they are primarily SUVs and trucks that must be outfitted with light 13 bars and equipment. 14 15 23 1 Slide #25 FY2025-35 Recommended Vehicle Replacements Lrrvucnrnuola"l-Volcclfuri wid C;lurraie AC;Dotl Transportation Goals — Administrative Vehicles Electric Vehicles in County Fleet AMS Service Vehicles(2) $119,950 WithFY26 Current • Cooperative Extension Van $71,906 Recommended c.pl .I.j;i. -; enl5 (2} Total County Fleet 373 373 • DEAPR Truck Replacement $54,066 Less Public safety 211 211 USS Vehicle Replacement (2) S80,319 Total Non-Public Safety 162 462 • Health Vehicle Replacement (2) $72,4©f3 Tote EV's 22 3$ Housing Replacements (2) $141,306 EV%ot County Fleet 14% 23% • Planning Replacements(3) $121,979 Strategic Plan performance measure to replace at least • Tax Admin Vehicle Replacement(1) $39,160 8non-public,safety vehiclesper year with elecfrlc • Taxes,Tags,Registration $72,338 FY2025-26 CIP recommends a total of 16 electric • Total Administrative $906,956 vehicles ORANGE COUNTY t)t.l't r CAROLINA 2S 2 3 4 Slide #26 FY2025-35 Recommended Emergency Services Projects Healthy Community Mission Support • Communication System Improvements — $300,000 (p. 97) — Multiyear plan to upgrade radios for Time Division Multiple Access(TDMA) compliance • Emergency Services • Sheriff's Office • Health Department — FY2025-26 authorization would replace 15 portable and 15 mobile radios for the Sheriff's Office ORANGE COUNTY za NORTH CAROLINA 5 6 7 24 1 Slide #27 FY2025-35 Recommended Emergency Services Projects Mission Support N • Emergency Services Replacement and Renewal — $598,955 (p. 99) — Replacement of Emergency Medical Services lif Equipment • Long range replacement schedules for mission critical -tam equipment - - EKG monitors - Automated External Defibrillators(AED) - Radiodioks 3P4 - Ras - Power Air Purifying Respirator(PAPR) ORANGE COUNTY NORTH CAROLINA 27 2 3 4 Slide #28 FY2025-35 Recommended Information Technology Projects Mission Support • Laptop and Desktop Replacements - $438,000 (p. 193) — Desktop/Laptop replacement schedule implemented in FY 2021-22 -- 219 Laptops are over five(5)years old Impact of Laptop Replacement Schedule Impact of desktop Replacement Schedule 1400 500 1200 400 — 1000 Boo — 300 600 — 200 400 — 200 — 100 a — — o FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 rY 2028-29 FY 2024.25 FY 2025.26 FY 2026.27 FY 2027.28 FY 2028.29 ■0 4 Yrs. 5,6 Yrs. ■7.9 Y($. ■10+YrS. ■0-4 Yrs. 5.7 Yrs. ■8-10Yrs. ■11+Yrs. 5 6 7 25 1 Slide #29 FY2025-35 Recommended Information Technology Projects Mission Support • Information Technology Infrastructure - $988,000 (p. 103) — Install Standardized AN in Conf. Rooms $20,000 — Wireless Expansion & Replacements $20,000 — Cyber Security Initiatives $120,000 — Server and Network Upgrades $390,000 — Laptop/Desktop Replacement Schedule $438,000 from prier slide — Project Total $988,000 ORAN(jE COUNTY 24 CAROLINA 2 3 4 Slide #30 FY2025-35 Recommended Information Technology Projects Mission Support • Information Technology Governance Council Initiatives - $145,000 (p. 104) — New technology for Departments- Up to$250,000 per year • Update the County's website to comply with the 2024 update to the Americans with Disabilities Act(ADA)final rules - headline for completing this work is April 24,2025 • Multilingual chat bot on County website • Contract management module for the County's financial system Better track contract end dates and certificates of insurance - Automates the financial processes related to contract management — Operating costs of software maintenance included by year GRANGE COUNTY 30 NORTH CAROLINA 5 6 7 8 26 1 Slide #31 cmrarkvret•drn Lang Range Parks Plan No projects recommended in FY2025-26 FY2026.27 Holk>w Rock-$224,0D0 • 50%funded by Durham County FY2027.28 Blackwood Farm Park- J $100,000 FY2027.29 Sower.c m Phase II-$3.96 mill on • """ '' • �'s FY2028-29 tittle River Park II-$100,000 j • '• •, 50%funded by Durham County s FY2029.30 Mountains to Sea-$693.000 • •� FY2030.32 Fairview Park Improvements- i $1.9 million 4 e +' FY2030.32 Upper Eno Nature Preserve- ° $438,(00 e ...... FY2032.34 MWIhouse Road-$3.45 million • 58%funded by Team of Chapel HIII s� FY2034-35 Northeast Dist.Park Planning- $277,265 e� Prnlects Outside of Ten-Year P7annirra Hodzan .e w�.. Cedar Grove Park II Planning ` Bingham Park Planning ORANGE COUNTY Twin Creeks Park Planning NORTI-I C;AItO[.INA 2 3 Commissioner Carter asked about conservation easements listed in the CIP. She 4 recalled that there was about $4 million that was unspent. She asked how that gets applied. 5 Travis Myren said that would show as "prior approved funding." 6 Kirk Vaughn said the balance of all county and school capital projects are listed in the 7 CIP as an appendix. 8 Chair Bedford said that on page 167, between conservation easements and lands 9 legacy, they are expecting to spend funds that will bring the balance down. 10 David Stancil, DEAPR Director, said there are about $400,000 worth of projects that will 11 be coming back to the Board that have been previously authorized but not finalized. He said that 12 there is also about $300,000 of projects that have been approved but have not closed yet. 13 Chair Bedford asked if that $700,000 total. 14 David Stancil said yes and that he is always conscious of what is pending and 15 encumbered. 16 Chair Bedford said about $3.4 million between the two that are holding space in 10-year 17 plan but not yet borrowed. 18 Travis Myren said yes, it is included in the debt model, and they would borrow when 19 those expenditures would occur. 20 21 27 1 Slide #32 FY2025-35 Recommended Parks, Open Space, and Trail Development Projects Environmental Protection and Climate Action • Neuse River Rules for Nutrient Management - $175,000 (p. 114) — Alternative Implementation Agreement for Falls Lake nutrient management — Each jurisdiction agrees to budget and implement projects to reduce nitrogen levels in reservoir — Gravely Hills Middle School Stormwater Wetland Retrofit .i 2 3 4 Slide #33 FY2025-35 Recommended Parks, Open Space, and Trail Development Projects Healthy Community ,,?tmiuor • Park and Recreation Facility Renovations, Repairs, and Safety Improvements - $210,000 (p. 116) -- Annual request for ongoing capital improvements • Tree repair and management • Replacement soccer equipment • EV Tools for park maintenance (ex: saws) • Cedar Grove basketball court resurfacing • River Park garden repair • Little River playground natural surface • Preventative maintenance • Fairview Park access improvements — Connection to Homemont pnve and accessibility improvements around Fairview Community Center ORANGE COUNTY sa NORTH CAROLINA 5 6 Chair Bedford asked about Fairview Park projects on page 108 of the CIP. She asked if 7 Phase II will be on the landfill part of the park. 8 David Stancil said yes and that has been reflected in the CIP. He said that once the 9 landfill issues are mitigated and the land is usable, this will be where the park is placed. 28 1 Chair Bedford said she does not think that $3 million will cover mitigation needs because 2 it had a lot of really bad chemicals listed. She asked if the $1.9 million into year 11 because she 3 does not think it will be workable. She said that she has been waiting on the state for six years. 4 David Stancil said that the state has the consultant's mitigation findings and has 5 identified a consultant to create a mitigation plan. He said that things have taken much longer 6 than expected. He said it is all paid by the state. He said that he hopes by 2026 the plan is 7 ready for the public. He said it will go through a 45-day public hearing and public comment 8 process. 9 Chair Bedford said the Board has tried to prioritize making improvements in 10 neighborhoods that have not had parks. She said that they may need to rethink Millhouse Park. 11 She said that parks are becoming more of wants instead of needs. She asked if they sold it if 12 they can make it deed restricted. She said the former mayor of Chapel Hill, Pam Hemminger, 13 had really pushed to make this a joint project and at this point, she is unsure if the Town of 14 Chapel Hill has the funds for it. She said that Alderwoman Haven-O'Donnell is pushing that it 15 could be an economic development project if it had been sold to a private developer for athletic 16 use. 17 Commissioner Greene said she would like more information and discussion on the 18 Millhouse Park project and perhaps not put it in the CIP at all. 19 Chair Bedford said she would like to have a budget work session on that. 20 Commissioner Greene said she does not think she is even ready to have a work session 21 on it because she may just recommend that it not be in the CIP until they have much more 22 information. 23 Travis Myren said it will be added to the rolling calendar to have the discussion, and it 24 will not be before June 17th. 25 Chair Bedford said there are funds that are not being spent on the Mountains to Sea 26 Trail and asked if they can be used for something different. 27 David Stancil said the $693,000 is for the very last section of the trail and in year three or 28 four. He said the existing funds are going to be spent on a project he alluded to just earlier, 29 trailheads, park trails, and a very expensive highway crossing. He said a lot of the money will 30 get used. 31 Commissioner Fowler asked if the trailhead on Hwy 54 is where Bingham Park might be. 32 David Stancil said no and that they envision that Bingham Park would be along the 33 route. He said the approved master plan for Parks and Recreation, is that the Mountains to Sea 34 Trail would connect to Bingham Park. 35 Chair Bedford said in relation to Soccer.com, she thinks that three fields for $5.4 million 36 is high. 37 David Stancil said the improvements in years seven through nine are improvements to 38 existing infrastructure. He said the first part in years three and four are for the new expansion. 39 Chair Bedford asked if it would be legal to use occupancy tax to fund some of this. 40 Travis Myren indicated that it could be used. 41 Travis Myren said the next slides are related to enterprise funds and do not impact the 42 county's general fund. 43 44 29 1 Slide #34 a Solid Waste Facilities m A. Eubanks Road District Center wicays Ro �m s B. Ferguson Neighborhood Center � m C. Bradshaw Quarry 70 Neighborhood Center N D. high Rock Neighborhood Center E. Walnut Grove District ..*.,. .o Center sa ` ORANGE COUNTY ~ NC7R'FH CAROLINA 2 3 4 Slide #35 FY2025-35 Recommended Solid Waste Projects Operational Support • Solid Waste Operations Building-$286,000 (p. 120) r , — Replacement of Crew and Vehicle Maintenance Buildings which are 25+years old _. — FY2025-26 includes professional services for building --- design and site work— Construction in FY2027-28 �V ORANGE COUNTY a5 NORTH CAROLINA 5 6 7 30 1 Slide #36 FY2025-35 Recommended Solid Waste Projects I i I I it i i s�E Eos I r----------- I A b_ ! 1 astmi 1 ern®�� ouvm m.._, 1 01!M3125 I FLOOR PLAN OPTION 7 MAINTENANCE BUILDING ADDITION ❑....• ORANGE COUNTY LANDFILL FLOOR PLAN SD-1 154ELR4M58 RP ICINPFL HIlL HC41514 3�E`-� --NEW GREW BUILDING RAS,D ONGE NTY COULANGFILL ORANGE COUNTY 36 NOR-rH CAROLINA 2 3 4 Slide #37 FY2025-35 Recommended Solid Waste Projects Environmental Protection and Climate Action Transporlatlon Goals • Saud Waste Vehicle and Equipment Replacements-$2,988,294 (p. 121) • New Ac Machine -$6,000 • Replace Front Loader#1963-$455,681 • Replace Wheel Loader#460 -$284,586 • Replace 5kidsteer#730 -$60,243 • Replace Hook Truck#1768-$297,024 • Replace Ford F250#852-$49,694 • Replace 315 D Excavator#433 -$296,604 • Replace Mower#229-$7,290 • Replace Cat 32 Excavator#462-$337,979 • Replace Mower#226-$8,500 • Replace Ford Pickup#853 -$87,565 • Replace Wheel Loader#7154 -$202,967 • Replace Automated Curbside Truck 1966 -$447,081 • Replace Automated Curbside Truck #1967-$447,081 ORANGE COUNTY 3T NORTH CAROLINA 5 6 7 31 1 Slide #38 FY2025-35 Recommended Sportsplex Projects Healthy Community • Sportsplex Projects - $470,000 — Backflow Preventer and HVAC Replacements-$150,000 (p.125) — Ice Rink Rental Skate Replacements-$35,000 (p.127) — Design of New f=amily Change Area and Roof Structure over Artificial Turf Field -$120,000 (p. 129) — Pool Vacuum and Plaster Replacement-$165,000 (p. 130) ORANGE COUNT-;' 88 NOR-rH CAROLINA 2 3 Commissioner McKee asked if the ice surface issues at the Sportsplex were addressed. 4 He said some hockey players had contacted him a year or two ago. 5 Andrew Stock of the Sportsplex said those issues were addressed and they can manage 6 it better now. 7 8 Slide #39 FY2025-35 Recommended Capital Investment Plan • Timing for County Long-Range Facility Plan Projects County Long Range Facility Plan Projects — County Long Range Facilities Plan Recommended in FY202S-35 CIP • Following O'Brien Atkins Recommendations Year or Cor struction Project County Cost Upto$90.1 million FY2027-28 Cedar GroveCondltloned $2,695,200 Seven Major Projects Storage FY2027-28 Emergency Services $33,571,484 — Cedar Grove Conditioned Storage Headquarters • Need to move storage out of EAC for FY2028-29 510 Meadowlands Admin. $3,641,385 potential reuse of EAC FY2028.29 Justice System Space Needs $16,914,576 FY2029-30 Recreation Facility $21,630,703 FY203031 Deconstruct Old Recreation Facillty 51.095.784 FY2031-32 Southern Human Services $9,628,672 TOTAL i$89.117,804 39 ORAN GE COUNTY 9 32 1 Chair Bedford asked if the county did not build a new recreation facility, what would the 2 needed repairs be. 3 Alan Dorman said $7.5 million would still be needed for repairs. 4 Chair Bedford asked what kind of programming takes place at the current gym. She 5 said it is used for basketball in the evenings. 6 David Stancil said it is used all day for preschool, afterschool, classes throughout the 7 day, and at night there is basketball and volleyball, rentals from the community, and summer 8 camps. 9 Chair Bedford said that if one of the school systems builds an elementary school or 10 middle school, there would be an option for their gym to be built with an outside door and 11 separate bathrooms and offices. She said that kind of facility would only be available after 6 12 p.m. She said it is expensive, but it was ranked high. She asked if the $7.5 million in repairs 13 would only help the county limp along with the existing facility without improvements. 14 Alan Dorman the facility is in need of improvements and the figure includes renovations 15 and they have also put off several large CIP projects. He said they can do it for less, but it would 16 be far from idea. 17 Chair Bedford asked where the new gym would be located. 18 Travis Myren said there is space by the motor pool and also where it is currently located. 19 He said the opportunity cost would be that they cannot expand programming and serve more 20 children. 21 David Stancil said the current facility is maxed out. 22 Commissioner Fowler asked if the new one is built, would the existing facility be 23 demolished. 24 Chair Bedford said yes. She said there were options for other projects to be adjusted. 25 She said she thought there should be contingency for escalating costs of capital projects. She 26 asked if there was a capital reserve fund. 27 Travis Myren said there is less than $60,000 in that fund. 28 Chair Bedford asked if there should be a contingency fund that could be tracked so staff 29 could see what specific expenditures were higher than expected. She asked if that is allowed. 30 Travis Myren said the expenditure needs to be connected to a capital project. He said 31 each project carries a contingency of about 8% of the cost of construction. 32 Kirk Vaughn said the CIP is a plan. He said once funds are borrowed, it needs to be tied 33 to a project. He said placeholders for future years do not result in borrowing until much later. 34 He said it could be a project basis or tied to a contingency project as part of the plan. 35 Commissioner Fowler confirmed that 8% contingency is included. 36 Travis Myren said yes. 37 Chair Bedford said the expenses increase each year and they have not been very 38 accurate on the operating side. 39 Kirk Vaughn said it has been an extraordinary period of expenditure and inflation. He 40 said that it has operating impacts and those are reflected on page 47. 41 Travis Myren said they cannot borrow for operating costs. 42 Chair Bedford said it has an impact on whether they should do the project. She said that 43 she learned that $23 million is county pay-go and she asked if there is a history of pay-go. She 44 said if they are framing $6.4 million causing a tax increase, it really is all of the projects together. 45 She said she did not know that they were doing prior year pay-go. 46 Kirk Vaughn said not every CIP cost is "borrowable." He said the $23 million in pay-go is 47 over 10 years. He said there is a summary of the county capital on page 49, which is an 48 incremental increase over time. 49 Travis Myren said that if it were not for the school projects there would not be a tax 50 increase. 33 1 Chair Bedford said there is an option that they could use debt for that and there is 2 flexibility. 3 4 Slide #40 FY2025-35 Recommended Capital Investment Plan • Significant Lang-Range Projects — Affordable Housing • Three Five(5)million installments throughout FY2025-35 — Community Center Space Needs • Rogers Road Expansion-$2.9 million in FY2027-FY2029 Chapel Hill and Carrboro Contributions-$1.7 million • County Share-$1.2 million — Emergency Radio System Buildout • Four New Towers+Equipment Enhancements on Five Existing-$32 million in FY2027-28 • Town Public Safety Agencies-$8 million • County Share-$24 million as C3RAN HE COUNTY NnRTAROLINA5 6 Chair Bedford asked if the Link Building project is three years out. 7 Travis Myren said it is four years out and they will bring back a recommendation on the 8 timing of it all. 9 Commissioner Fowler asked if the Chapel Hill and Carrboro contributions to the Rogers 10 Road Community Center are in addition to the $2.9 million. 11 Travis Myren said no, and that the county's portion is $1.2 million. 12 Chair Bedford said it is not confirmed that they want to participate. 13 Travis Myren said they would need an inter-local agreement and that it would need to be 14 negotiated. 15 Commissioner Fowler said that the county is including the share for the expansion. 16 Chair Bedford said the revenue is offsetting. 17 Travis Myren said they are assuming the projects will be cost shared on the same basis 18 as the original community center project. 19 Commissioner Greene said it looks like Article 46 is being used. She asked if half of 20 Article 46 is still being reserved for the schools. 21 Travis Myren said yes. 22 Chair Bedford said $500,000 debt rolled off this year for sewer. She asked if that is built 23 into Article 46 budget. 24 Travis Myren said there is an Article 46 model and if the debt service is decreasing, that 25 is getting consumed by the incentives that the county approves. He said that the thought is that 26 Article 46 pays for the incentive projects. 27 Commissioner Carter said there is no water and sewer infrastructure included in the CIP 28 after that $500,000 rolls off. 29 Travis Myren said they do not have anything firm enough to be put into a plan at this 30 point. 34 1 2 3 35 1 Slide #41 IFY2025-35 Recommended Capital Investment Plan • Significant Lang-Range Projects — Justice System Space Needs Work Group Update Based on April 9 Meeting • Justice Stakeholders All functions under one roof Secure and modem courtrooms — Short Term Plan Under Development - Concept is to move Sheriff to renovated Link Building — Current Justice System Space Needs budget can accommodate — $16.9 million in Justice System Space Needs project — $13.5 million estimate to renovate Oink Building - Backfill Sheriff's Office with District Attorney and Public Defender and perhaps others — Longterm plan New Courtrooms, Parking,Remodel existing spaces • Add Adult Probation, Juvenile Justice _ $90+million cannot be accommodated in current 10-year planORANGE COUNTY" 41 NOR7rH CAROLINA 2 3 4 Slide #42 FY2025-35 Recommended Capital Investment Plan • Significant Lang-Range Projects — Emergency Services Substations • $3.6 million in FY2025-26 for coloration with Town of Chapel Hill-Site feasibility study underway $4.4 million in FY 2029-30 for Emergency Services Hub - EMS substation plus Community Paramedlcine,Post Overdose Response Team,and Mobile Crisis Team — Lake Orange Darn—Phase 2 $3.8 million in FY2029-30 to replace emergency spillway and spillway channel Parks Projects • Soccer.com expansion in FY2027-28-$4 million • Millhouse Road park development In FY2029-30-$3.4 million total cost — Additional School Capital Needs • Total School Capital Needs-$1 billion • Continued Planning and Vigilance az ORANGE CC+UOIL I QTY NOR-5 6 7 36 1 Slide #43 FY2025-35 Recommended Capital Investment Plan FY2025-35 Recommended Expenditures by Year 1&0.000A00 $161,975,514 $164,454,928 160,060,000 $I46A73,808 140;000p00 120,000,000 Iw,O�;o,uau ■School Bond Projects 565,154,659 -School Capital ST6,379,422 ■proprietary Funds $66.77&.385 $65,46A,A82 a County Capita I E6�0(ri.000 54109,362 547,829,387 N0,000,000 $35,579,104 2o.axF.aaa 0 FY 2025.26 FY 202&27 FY 2027.28 Fr 202&29 FY 2029-30 FY 203031 FY2031.32 FY 2032-33 FY 103334 FY2034-35 ORANGE COUNTY 43 NORTH c`AROLINA 2 3 Chair Bedford discussed the three tranches and if expenditure speed impact the tax 4 needs. 5 Kirk Vaughn said that there is a slide that covers that in detail coming up. 6 7 Slide #44 FY2025-35 Recommended Capital Investment Plan Debt Service Schedule through 2025-35 $90,000,000 $80.531,]45 575.417,770 $70,006,aoa Sb],251,643 s6a,662,s99 564,838.447 06 557,182,019 $60,0w,0 $50,000,000 545,884,4 $39,920,629 540.000.000 532,460,117 Ballow on $30,ox,0ou first Bond PrFr,b $20,000,000 $10,000,000 FY2025-26 FY202&27 FY202]-26 FY2a26 29 112029-30 FY2030-31 FY2031-32 FY2032-33 FY2033-34 112034-35 ORAO44 N GE�COUN/TY 8 9 10 37 1 Slide #45 FY2025-35 Recommended Capital Investment Plan Annual Debt Service Payments on Existing and Proposed CIP Debt ssn.6Po.ano s9o.a9ouoa 6}9,6W.000 SW.pW W0 sso aao aw san.o90 uoo sla 000aoa szu aoo ow 316.000 d00 Y •EYIOrg Debt S— 4Propo�GIP Dev 3—M ORANGE COUNTY 45 NOWFI-{ CAROLINA 2 3 4 Slide #46 FY2025-35 Recommended Capital Investment Plan Debt Service to General Fund Revenue Policy Compliance FY2025-35 zo% 19.13% 18,63% 18.13% 17,76% 1].96% 17.74% 19% 16,43% 16% 14.4 14% 12.96% 12% 11 19% 10% FY2025.76 FY2026=27 FY2027.29 FY2029179 FYZ0293D FY703u.31 FY2o3132 FY703233 M.334 FY 7034-35 �PdEN Tzr9e1 �Prc]—ed ORANGE COUNTY 46 NORTH CAROLINA 5 6 Commissioner Carter asked what the statutory requirements are for debt. 7 Travis Myren said there are no legal, statutory requirements, but it is considered a best 8 practice according to government finance professional organizations. He said it also considers 9 the comfort level of rating agencies. He said there is a law about the percentage of assessed 10 valuation that can be dedicated. 38 1 Chair Bedford said they are nowhere close to that limit. 2 Travis Myren said they are not close at all. 3 4 Slide #47 FY2025-35 Recommended Capital Investment Plan Funding the Plan • Pay-Go—1.98 cent tax increase in FY2025-26 • Debt—No tax increase required in FY2025-26 • County has options for how to fund future debt service increases in the future Fisca:l Year Incremental Tax Upfront Tax Tranche 2026 2027 1.78 7.68 4.0 2028 1.77 2029 2.91 2030 1.59 4.0 2031 0.19 2032 2033 1.04 1.4 2034 0.73 _ Total 10.01 7.68 9.4 ORANGE COUNTY 47 NORTH CAROLINA 5 6 The Board indicated that they were interested in an incremental tax strategy as listed in 7 slide #47. 8 9 Slide #48 FY2025-35 Recommended Capital Investment Plan Schedule for Consideration — Work Session on Capital Investment Plan April 22 — Further Consideration through. Budget Work Sessions May-June — Approval of the Operating and Capital Budget June 17 ORANGE COUNTY 48 NOR'T'H CAROLINA 10 39 1 Slide #49 Questions? ORANGE COUNTY NORTH CAROLINA 2 3 4 Kirk Vaughn made the following presentation: 5 6 Slide #1 ORANGE COUNTY NC3RTH CAIRO LINA Schaal Capital Investment Plan FY 2025-35 April 22, 2025 Board of Commissioners Work Session s 9 40 1 Slide #2 What has changed from prior School CIPs Adoption of the School Capital Funding Policy (Page 177) & Major Project Planning Addendum (Page 181). - School CIP has been reorganized into three sections (Major Projects, High Priority Needs, Other Capital Uses) Inclusion of Major Project plans by both school districts, with county staff assisted sequencing. Phasing in of Pay-Go funds to assist Major Project funding - $6.4 M in FY 26, full $10 M in FY 27 Project-based allocations for High Priority Needs Projects. (questions about specific projects can be directed to School Staff at May 15111 Education Budget Work session 0RAN(JE COUNTY z ',k W i t t CAROLINA Z 3 4 5 6 Slide #3 Major Projects — Projects and Sequencing CHCCS — Pages 182-134 - FY 26 Carrboro Elementary, FY 27 Estes Hills Elementary and FY 31 Frank Porter Graham Elementary replacements • OCS — Pages 151-153 - Tentative plan of FY26 Elementary School Replacement, FY 30 Major'Renovation Elementary School, FY 31 Major Renovation Middle School District currently in public review of three options that differ from plan presented to the county. County used the following rules to sequence these plans Bonds must be borrowed within 7 years of referendum. May ask for 3-year extension with LGC. Once borrowed, funds must be drawn down for actual expenses within 3 years. Funds are allocated between the districts fairly and within the tax impact as presented to the public.. ORANGE COUNTY 3 NnR"I H CAROLINA 7 8 9 41 1 Slide #4 Major Projects — Projects and Sequencing • Every year, the Bond funds will be able to fund fess impactful investments. Staff wanted formula to quantify that loss in value, — Net Present Value Formula If you divine the NPV by the total funding provided to that district, you get an estimate how much each district loses from being allocated in future years. Net Present Value/Total Funding Original Tranche Model 90.78% CHCCS Sequencing 90.70% OCS Sequencing 90.71°l Both bond plans lose about the same value from being allocated in future years and are within our original tranche model. • The $300 M Bond plan spread out over 7 years is worth the same as if we funded $272 M in projects all in FY 2025-20. ORANGE COUNTY 4 NORTH CAROLINA 2 3 4 Chair Bedford asked what interest rate is assumed. 5 Kirk Vaughn said 3%. 6 7 Slide #5 Major Projects — Projects and Sequencing Bond Funding By District S80.000.000 $70.000.000 $69.13 M $60.000,000 $51.28 M $52.68 M $50,000,000 547.7© $40,000,000 35.64 M $30.000.000 526.5U M $20.000.000 510.000.000 86.0 M. 54.42 M 53.68 M s ■ 11 1 -- 5.77 M FY 2J_[ FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 ■CHCCS Funding ■OCS Funding *Planning Funds for OCS Elementary Replacement using Bond Funds, not Pay-Go ORANGE COUNTY 5 NORTH CAROLINA 8 9 10 42 1 43 1 Slide #6 Major Projects — Project Costs and Funding Source Major Projects are funded using a combination of Pay-Go and Bond Funds. CHCCS Projects Bond Funds Pay-Go Funds Total funds OCS Projects ANNElk—P-y-Go funds Total FurKis Carrboro Elementary $ 47,700,000 $ 5,300,000 $ 53,000,000 Elementary Replacement 5 57,283,000 $ 2,817,000 $ 60,100,000 Estes Hills Elementary$ 51,547,000 $11,283,000 $ 62,830,000 Major Elementary Renovation $ 27.000,000 $ 3,000,000 $ 30,000,000 Frank Porter Graham $ 63,901,300 $ 6,240,000 $ 70,141,300 Major Middle School Renovation $ 37,340,000 $ 7,660,000 $ 45,000,000 Contingency+HPN $ 11,551,700 $31,050,999 $ 42,602,699 Cont ingency+H P N $ 3,677,000 $22,649,001 $ 26,326,001 Total $174,700,000 $53,873,999 $228,573,999 Total $125,300,000 $35,126,001 $161,426,001 • Pay-Go funds provide four major uses to support the Bond Program: - Absorb soft costs like Design, Project Management Project Management included in separate S1 Mlyear project not allocated to either district pending ILA negotiations. - Extend project budgets above what the Bond could support on its own. - Improve County debt metrics once county debt exceeds 15% of GF revenues Once bond projects are done, support the districts'High Priority Needs ORANGE COUNTY 6 NORTH CAROLINA Z 3 4 5 Slide #7 Major Projects — Pay-Go Phase-in • To spread out tax burden, the Manager's Recommended CIP splits Pay-Go introduction into two steps. $6.4 M in FY 26, and an additional $3.6 M in FY 27, to reach $10 M target. To maintain $100 'M over 16-year commitment, the $3.6 M shortage in year 1 is added incrementally into the later years of the plan. Reaches$11.2 M in year 10. $6.4 M is tied to specific project activities listed below. Amount Usage Convert to Bond Proceeds? Design funds for Carrboro Elementary $5.3 M (pg.132) Yes.Can borrow design with construction in FY 27. Not directly.would need to be tied to specific Project Management Set Aside(pg. projects to be borrowed.Would increase project $1.0 M 1641 budgets. Preliminary site selection and design far Possibly.Only if construction on project occurs by FY $100 K OGS Elementary School(pg,151) 27. ORANGE 7 NORTH COUNTY r CAROLINA 6 7 8 9 44 1 Slide #8 Major Projects — Pay-Go Phase-in Staff can rework Pay-Go Phase-in to further delay tax increases. Though would need direction from 'Board in how to adjust overall plan. Four possible adjustment frameworks: t. Reduce Pay-Go in early years, reallocate funds for additional Pay-Go in backend to maintain $100 M over 10 years. Impact: Less funding available to Major Projects, increased funding for later High Priority Needs. 2. Reduce Pay-Go in early years, do not reallocate funds to future years. - Impact: Less funding available to Major Projects. 3. Delay district projects by a year, requiring later pay-go introduction. -- Impact: Increased Major Project costs due to inflation, less time to complete projects. 4. Reduce Pay-Go allocation across ten-year plan. No longer target $10 Mlyear. - Impact: Less funding available total. Worse debt metrics. ORANGE COUNTY 8 NCMI'f 1 C:AROLTNA 2 3 Chair Bedford said she thought that they would be approving projects separately and 4 considering how each one is going. 5 Kirk Vaughn said a school CIP is similar to the county's CIP, where it is a plan, but only 6 year one is approved at a time. 7 Commissioner Fowler said she thought the county needed to see the entire budget 8 before determining how to approach pay-go. She said she would like to keep as much of the 9 pay-go as possible and if they were forced to choose, she would choose #1. She said it 10 depends on the total bill and what that would mean. 11 Commissioner Carter said she preferred to look at option 1, with option 3 possibly in 12 tandem. She said there are federal cuts coming to major programs that will impact them 13 operationally and those will not be known for some time. She said that Medicaid will be 14 significantly cut so she would like to be flexible on pay-go because that may be hard for them. 15 Chair Bedford said she was thinking of a form of option 1, where pay-go is reduced in 16 the first year and borrowed. 17 Kirk Vaughn said that is option 1. He said that bond funds would fill in where the pay-go 18 was reduced. He said it would cut bond funds from a later project. 19 Commissioner Greene said she hoped they could keep all of the pay-go. She said she 20 did not support options 3 and 4. She said option 1 is her first alternative. 21 Chair Bedford said she agreed with Commissioner Greene. 22 Commissioner McKee said he is more inclined to option 2, because of concerns about 23 costs of schools. He said that options 1 and 2 were his preference. 24 Chair Bedford said that they will discuss project management in the schools in the fall. 25 She said they will have to make decisions as a Board about how to move forward. She said they 26 have agreed that the construction manager at risk has more value than the others and they may 27 need to explain that to the schools. 28 Kirk Vaughn said the current structure has the school having the contract with the 29 construction manager. 45 1 Commissioner Carter said having the construction manager at risk will mitigate some of 2 the costs. She asked if the county is still pursuing a program manager to manage all projects in 3 both school systems. 4 Travis Myren said those funds could be used for program management. He said this 5 needs to be negotiated with the districts. He said that a county staff person can be brought on 6 rather than a consultant and they can use the pay-go funds to fund salaries. 7 Commissioner McKee said projects will get more and more expensive and the county 8 will need to lock bids down to keep from escalating. 9 Chair Bedford said they spoke a bit about this at the Durham Tech meeting, and they 10 have a person working with them on resourcing and timing. 11 Commissioner McKee said it will be key to not let costs get away from us. 12 Chair Bedford said they may not get a third school, depending on expenditures. 13 Commissioner McKee said the funds will not go as far as hoped. 14 15 Slide #9 Major Projects — GIP Pages and Presentation Each of the districts three Major Projects are listed as separate project pages. The remaining funds are listed in a remainder project (Page 135,154), with a detail sheet that districts have provided to identify usages: khow Add V-1 V-2 V 1 V1r4 —6 1-1 Vr1 Vw/ V_10 Carrepra E-IrmanUr Brolacemml Ylml S S.iW:0G0 5 !l,JM.d00 Estee rolls Ekmentary Replxemml Xhiaul 5 6,263,000 5 56,51)Orkl rink Porter Gaaham BJ. uv Yhool Reolxemm;Yhvwl ; ],p1i,130 7-M= J.bcLbugle[tementary na.yap RmlRaplxemenl lMln a.iYe.. IiW 21 5 6,000,OW McfMl{Ie Ma01e XMo1 McUI Rod Repalr/ReroU[ymml{Ma+NGyml I W 3) $ 1.163 X91 Chaps H214.h— gtlumen-1 C.)lW 1) 5 6,000,000 Morris Grove Ekmrn Ury Ene Bu{presum RepFacem nClW 11 5 40ii 546 aasMO Ekm V re Xporessnn ReyUcemen;IW 11 5 (,431.211 Mary XraggsEkmeMary Xnopl rre 5yppresacn ReWacemen;IW 11 $ 3,IW.0g6 Marr Xra EkrrknUrV Xnpp1 Meal gpd ReOau{W 31 5 S!2 418 Ephevus Ekmemary WWI�OaxementlMam guJtlmglw]) 5 4416,832 ornrAt weer sono cnnh e 5 ruz 666 ihJ6ps MC0k SMm1 6u[twora.Redxemrnt{Mun/Autlilo+um71W 31 5 ].2a6.20g Phll6 sMia0k School vAC W6NPdPmp Replxrmmr{Mnnl{W ata 31 3 I.a16.NS onus;wove Pay GO Cmmgmry $ 16).363 5 4.369.494 Remainder funds will be split into specific project pages for any projects in year 1 of a future CIP. — ORANGE COUNTY 9 NORTH CAROLINA 16 17 18 19 20 46 1 Slide #10 High Priority Needs — OI P Pages and Presentation CHCCS Pages 137-144 OCS Pages 156 - 160 $4,235,042 $2,091,178 • High Priority deeds projects funded by existing annual debt funding and lottery proceeds funds. • Project based allocation - Individual Project Pages for all projects with FY 2025- 26 funding, identifying the specific project and the Woolpert definition. Summary Project for all remaining years 2 - 10 funding. New Hope Elementary-Roof Replacement Pft 0-1 Catqury Shoo Punnlen.I Ser AM.: Edir[ari- ".n—t: Orange C-ntY$ch.W, Strata�9I pggnrrl�n e trt: Public Edu Do VLearnirig Co—nily ObiKi—4 oKun$e1 DCSll P3 flllnarl A[tien Nan: MIA 51,397,610 In FY 202626 and SS94,690 in FY 702627 6twdgeted to complete a roof replacement at New Mope Elementary School.This project is Identified as level 2-Essential In the Woolpert fra me Work as adopted by the gpard of County Commis"mrs. ,a ORAINGE CTH OUNATY 2 3 4 Slide #11 Other Capital Likes — CIP Pages and Presentation CHCCS Pages 145 -148 OCS Pages 161 — 163 $3,826,002 $2,555,118 Other Capital Uses projects funded by existing Article 46 and Recurring Capital fund's. Both tax supported Pay-Go sources. Purpose or Function based allocation — Project Pages based on type of expense, regardless of location. Allocated to both districts' Technology replacements, Rental expenses and Recurring Capital allocations. „ ORANGE� C OUNATY 5 6 7 8 47 1 Slide #12 Supplemental Deferred Maintenance CHCCS - Page 149 $9,000,000 Last tranche of $60 M, allocated between districts based on ADM at point of allocation. • Funds predated current School Funding Policy, so allocated in one purpose or function project code. District provided detailed usages and alignment to Woolpert priorities on Page 150. ORANGE COUNTY 12 NORTH CAROLINA 2 3 Commissioner Carter asked what the last tranche of$60 million was for. 4 Chair Bedford said that was for maintenance needs at the schools. 5 6 Slide #13 Questions? ORANGE COUNTY NOR-I-H CAROLINA 7 8 Commissioner Fowler asked if staff could model how delaying pay-go as in option 3 on 9 slide 8 would impact the tax rate. 10 Travis Myren said they could provide that. 48 1 Kirk Vaughn said he could model different scenarios for the Board. 2 Chair Bedford said that in a previous meeting, she asked about spending speed and the 3 three tranches and was told that it does not make a difference. 4 Kirk Vaughn said the way they paid for those projects happening more quickly is it took 5 out from 29 and 30 so it was split out to remain neutral. He said if they take the first-year 6 projects and slide them back, we could not slide the savings, and it would not really change the 7 incremental tax rate. 8 9 Adjournment 10 11 A motion was made by Commissioner Greene, seconded by Commissioner Fowler, to 12 adjourn the meeting at 9:27 p.m. 13 14 VOTE: UNANIMOUS 15 16 Jamezetta Bedford, Chair 17 18 19 Recorded by Laura Jensen, Clerk to the Board 20 21 Submitted for approval by Laura Jensen, Clerk to the Board Attachment 2 1 1 DRAFT MINUTES 2 ORANGE COUNTY 3 BOARD OF COMMISSIONERS 4 JOINT MEETING WITH 5 CHAPEL HILL-CARRBORO BOARD OF EDUCATION AND 6 ORANGE COUNTY BOARD OF EDUCATION 7 April 29, 2025 8 7:00 p.m. 9 10 The Orange County Board of Commissioners met for a joint meeting with the Chapel Hill- 1 1 Carrboro Board of Education and the Orange County Board of Education on Tuesday, April 29, 12 2025 at 7:00 p.m. at the Whitted Human Services Center in Hillsborough, NC. 13 14 COUNTY COMMISSIONERS PRESENT: Chair Jamezetta Bedford, Vice-Chair Jean Hamilton 15 and Commissioners Marilyn Carter, Amy Fowler, Sally Greene, Earl McKee, and Phyllis Portie- 16 Ascott 17 COUNTY COMMISSIONERS ABSENT: None. 18 COUNTY ATTORNEYS PRESENT: John Roberts 19 COUNTY STAFF PRESENT: County Manager Travis Myren, Interim Deputy County Manager 20 Caitlin Fenhagen, and Clerk to the Board Laura Jensen (All other staff members will be 21 identified appropriately below) 22 CHAPEL HILL-CARRBORO BOARD OF EDUCATION PRESENT: Chair George Griffin, Vice- 23 Chair Riza Jenkins, and Board Members Meredith Ballew (arrived at 7:04 pm), Rani Dasi, Vickie 24 Feaster Fornville, Michael Sharp 25 CHAPEL HILL-CARRBORO BOARD OF EDUCATION ABSENT: Board Member Barbara 26 Fedders 27 CHAPEL HILL-CARRBORO SCHOOLS (CHCCS) STAFF PRESENT: Superintendent Nyah 28 Hamlett and Chief Financial Officer Jonathan Scott (All other staff members will be identified 29 appropriately below) 30 ORANGE COUNTY BOARD OF EDUCATION PRESENT: Chair Anne Purcell, Vice-Chair Andr6 31 Richmond, and Board Members Will Atherton, Carrie Doyle, Bonnie Hauser, Wendy Padilla, and 32 Sarah Smylie 33 ORANGE COUNTY BOARD OF EDUCATION ABSENT: None 34 ORANGE COUNTY SCHOOLS (OCS) STAFF PRESENT: Superintendent Danielle Jones and 35 Chief Finance Officer Rhonda Rath (All other staff members will be identified appropriately below) 36 37 Chair Bedford called the meeting to order at 7:00 p.m. All commissioners were present. 38 39 WELCOME, CALL TO ORDER, AND AGENDA OVERVIEW 40 Chair Bedford welcomed the elected officials and staff from Chapel Hill-Carrboro City 41 Schools and Orange County Schools. 42 Commissioners, school board members, and staff introduced themselves. 43 George Griffin acknowledged Nyah Hamlett, who is leaving CHCCS at the end of June. 44 He thanked her for everything she has contributed to CHCCS during her tenure. 45 Chair Bedford reviewed the agenda for the meeting. 46 47 1. School Budget Presentations 48 a. Chapel Hill-Carrboro CitV Schools 49 Nyah Hamlett is leaving her position this year. She thanked the county commissioners 50 and staff for their partnership through unprecedented financial challenges. She indicated that 51 since she started with CHCCS the budget document has grown. She said this budget presented 2 1 tonight is a collective vision of staff, the community, and students. She gave an overview of the 2 items that make up the district's expansion budget request. 3 4 Nyah Hamlett made the following presentation: 5 6 Slide #1 i • • Education'sUj •' FiscalL Operating Budget Request UL ; • • ALL rr A k - cDr. Nyah i Hamlett, • - - - nt za Jonathan S • • Officer tTRATEGIC PLAN April 2?, 2025 2022-2027 7 8 9 Slide #2 INVESTING INCUR SCHOOLS: STABILITY & GROWTH Cortinuation Budget-Keeping Our Schools Shang 3%Salary&Wage Increases-Empowering,equppirg,and investing in the people wtio shape student success Benett Increases-Covering Hsi ng healthcare and employer matching contributions 3%Inflationary Adjustment-Ensuring schools have the resources to operate effectively Expansion Brdget-Elevating CHCCSforthe hilime ,j Increasing Classified Staff Supplements-Valuing the critical contributions of classified employees In€huctional Resources Sustafrabiiy Fund-Sec,-nng hig h-clud ity,culturally responsive,future-proof materiels •.,' Reinstating IlhashN's Level Pay-Recognizing and retaining top educators fangeted Certified Supplement Increase- Strengthen recruitment and retention of easy-and mid-career eclicators Restarng School Suppod Posillil-Reinstating teacher assistants,tech facilitators,and counselors for student support this is an investment in stabiity,growth,and the future of our students and staff Chapel MlF Carr6om Cityffahoals I h-,.rg THINK (AND ACT) • 10 11 Nyah Hamlett said the growth they are pursuing today is for tomorrow. 12 3 1 Slide#3 LLI LL Continuation Requesti KeepingOur . . 2 3 Jonathon Scott said there are no legislated increases included in this budget. He said 4 allocations may look different if the General Assembly ends up passing any legislation that would 5 increase expenses for school districts. 6 7 Slide #4 CONTINUATION BUDGET COST DRIVERS A oontnuaton budget ensures that cur schools can maintain essenfid operations,sustain ourrent programs,and adjust for rising c os is Mhout disruption.It covers n ecessary expenses such as salary increases,benefits,and inflationary adjustments to keep our distrio t running effectively. Salaries 8 Wages-$1,604240 ■ Estimated 3,'salary increase for all staff ■ holudes$1,182330 for base salaries and$411,910 for local supple menti ■ Adjustments may be needed based on the final NC General Assembly budget d BenefitIncreases-$1,735,136(+7.?%increase) ■ Ei-nployyer-reaquiredooniributionsfor FICA,TSERS,andhealthins urance ■ TSERS rate rising tom 2404%to 2566'M(+6.8%horearse) ■ Health insurance pre rriums inoreasing tom$8,O95to$8,373 per employee(+34%horene) Other Non-Salaried Operating Costs-$485,389 ■ 3%inflationary odjusiment to sustain daily operations ■ Covers utilities,trans portotion,instructional moterids,techno logy,and othe r non personnel expendtures 4 Budget Estimates 8 N%efnodology ■ h the dose noe of f on-al guidancefrom the N C Ge neral Assembly,these projeotions were estimated using Ii near r egress ion andysisbased onhistoical trends and antioipatedooctchanges. Chapel IiIE<—b..Citych--9 -1 Hf LAR (AND ACT) 8 9 10 4 1 Slide #5 CONTINUATION SUMMARY Total Continuation Need: Continuation Item Cost salaries a nd wages 1,604,240 Breakdgwnl of ConWu&iron Need won.salor�Ms sx Required Matching Benefits 1,735,736 • Non-salaryopera ting Cosrs -0SS,3FF II,v i6. Toidl Budgeted Coninuaion Costi $3,824,775 P e rna IC,iriq D e fic l t a tt er R eve r7y e t_hanFa es: Budgeiory Consideration Impoot Total Con tin ation Costs before Reuen ue Chan qes b[3,824,775] sperl Pauur in la tion ary S penial 6isfiat Tax Revenue 568,384 h crease Tobi Con inu ai on Need after Rev en ue $(3,255,'41) Chan es Chap el HlF 0--.o-CSiy kh-1s Ich-,.rg THINK (AMD ACT) �. 2 3 Commissioner McKee asked for more information regarding the increase for benefits. 4 Jonathon Scott said they have a 3% increase for the local wages, they have a base rate 5 of about $1,600,000 for local wages and if they add a 1% increase to the retirement rate, then 6 have to pay that additional rate. 7 Commissioner McKee asked if the retirement rate is above and beyond the salary. 8 Jonathon Scott said there has been an increase in the retirement rate almost every year 9 since he started in the field 25 years ago. He said when he started it was about 4% and now it is 10 25%. He said it can become quite a burden on the total budget. 11 12 Slide #6 LU ===qr W LL Ellevatinig for the Fuiure i 13 5 1 Jonathon Scott said CHCCS recognizes that budgets are tight this year with everything 2 happening at the federal and state levels but have included the expansion request for 3 consideration. 4 Chair Bedford asked if the expansion budget items are listed in order of priority. 5 Jonathon Scott said no. 6 7 Slide #7 EXPANSION BUDGET - INVESTING INC OUR FUTURE An expansion budgetfunds strategic investments that go beyond maintaining current operations, allowing us to enhance oppodun lies for students and sluff,aHract and retain tap talent,and ensure long-term sustainability. This Year's Expansion Budget Request Includes: Increasing Classified Staff Supplements-$725,404 Instructional Resources Sustainability Fund-$1,306,000 z:`Reinstating Master's Level Pay-$2,350,000 Increasing Certiied Supplement(0-19 yrs]-$1,007,444 Reinstating Teacher Assistants (Grades 4-5)-$58$,500 Reinstating Instructional Tech FacilitatorS-$927,000 r Restoring Counselor Conhact Wnths-$148,320 Chcpcl 1%C—b..aySchod,Ich—rg THINK (AND ACT) � 8 9 Jonathon Scott said curriculums are becoming more subscription based now. He said that 10 math and English adoption are two of the most expensive and the state only provides $350,000 11 for textbooks. He said during the 2016 legislative session, general assembly removed master's 12 level pay to anyone new in the occupation. He said CHCCS is losing candidates to surrounding 13 jurisdictions that have the master's level pay, so CHCCS would like to institute this to retain 14 talented employees. He said they would also increase the supplement from 18% to 20% for the 15 first 15 years of employment. He said this matches what other surrounding counties are doing. 16 He said that to deal with decreasing fund balance they had to decrease force. He said that the 17 last three items are reinstating some of those positions that were cut. 18 19 6 1 Slide #8 SUMMARY OF TOTAL FUNDING REQUEST Didgetaymen cot salaries amd V s $1,604,240 Required Matclug Bend& ],735,136 Local OpedaSng Fund Expenses 5 Years Analpsls Nm-salary Clpesa rq COAs 485,394 rtit ■G m...ien ■t c 4� &.Pr�a+. i17�.011b lbtal Budgdel Cmdon Costs $3,$24 775 C1a-,sfndSWp1emertPener&gehmases 735,000 hismxrmalRe=cesSxnaandWFmd UX000 sae.OMM Rehwo,emerrt d Ma5Lee5 Level Pay 2.350.000 W Aa tar Cc fiedStpphmerv.PffcaageIrmues L007,944 tar mu w. Reirs�errtdInpadedPos3b� 1,663,820 lbtal Eq aram)idem R%uestel $7,W6,46d - �+ � ._. PY aorr Haus F,r aot5!.p„N Fxi»i tunax.a�. ��px �s xma lbtal Cff"uahm and Egwmm Neel FAi n ded Reveue aan&s inthe Special Datirt Dx (568,384) TUAlkLdOP.alm,tNetalRevmueChmges $10,303,1.55 THINK (AND ACT) 2 3 Commissioner Portie-Ascott said she was impressed by the staff retention numbers that 4 were shared earlier. She asked if there is a benchmark for the number of teachers, and if so, is it 5 being met. 6 Nyah Hamlett said they break out the EC Certified Staff numbers because this is a hard 7 to staff position. She said that EC Certified Staff are 94.8% staffed. She said overall certified 8 staffing is 99.2% staffed. She said exit surveys completed by staff have indicated that they are 9 leaving to go to other districts with Master's pay. 10 Commissioner McKee said he believes everything in the expansion budget would benefit 11 the students and staff of the district but the amount it would cost would require a large tax increase 12 for residents. He said he will have to be convinced that the expansion budget can be funded. 13 Chair Bedford explained that it was requested at School Collaboration for the districts to 14 include the expansion requests and the school boards are aware it is not likely they will be funded. 15 Commissioner Greene said she was part of the School Collaboration discussion, and they 16 wanted to see everything that the schools might need but it was also clear that this may not be 17 funded. 18 Commissioner Carter asked how inflation level spikes after the budget cycle might be 19 addressed. 20 Jonathon Scott said there are a few things available to help. He said this has happened 21 numerous times in his tenure. He said first, they would rely on fund balance, but at this time the 22 district's fund balance is low. He said the second option would be to make a request for additional 23 funding from the county. He said lastly, the district would have to look inward and likely implement 24 reductions. 25 Commissioner Carter asked what happens if there is a surplus in the budget. 26 Jonathon Scott said typically the school district would retain that surplus and likely use it 27 to replenish fund balance. 28 Commissioner McKee asked what the CHCCS current fund balance is. 29 Jonathon Scott said there will not be an update until the audit report at the end of the fiscal 30 year, but estimates it is somewhere around $40,000. 31 7 1 Slide#9 Questions? STRATEGIC PLAN Est.19t10i_ 2022-2027 2 3 4 b. Orange County Schools 5 Danielle Jones said she works alongside the Board of Education to be stewards of the 6 budget and funds they have. 7 Rhonda Rath made the following presentation: 8 9 Slide #1 Fiscal Year 2026 Local Operating Budget Request Mrs.Rhonda Rath,Chief Finance afFicer ► Orange Dr.Danielle Sones,Superintendent County Schools Apri129,2025 10 11 12 13 8 1 Slide #2 District Highlights ,W BF le M8 MA Bo 77% bo ct�COCS Schools OCS Excels In Achievement and Earned C or 'Better xs,67 4 Growth, Statewide Results Released Statewide for 2023-2024 School Year 6 Ten out of 19 schools in Crenge County SchooIS Now ■FM O t—o'. earned a school performance grade of C or higher for the 2029-2024 school year, and 12 out of 13 schools met or exceeded growth targets, well 92% rOfocsschools above the state averages for both achievement Mel or Exceeded + Growth vs.73% and growth. Statewide a FIpF{:rwa uw.ga 4'u.r.Y S^-uiq ENGAGE. C'FIALLENGE, PNSPIRE. 2 3 4 Slide #3 Budget Priorities • Recruit and retain a high quality .. ' workforce • Student proficiency and growth �` I • Allocate resources to hest meet the needs of students and staff i' Td CF4;- �.�-;1:-- CHALL ENG F. IhSPIR!:.. 5 6 7 9 1 Slide #4 Ingesting in the Future FY 2026 Budget Request Summafy � 4 Continuation Budget --� On-going Operations - Ilk + TI/c Estimated Salary Increase + Employer Required Benefit Increases • 3111G Inflationary Increasep Expansion Budget Growing 005 + Increase Certified Staff Local Supplements + Increase Classified Staff Local Supplements + Increase Bus Driver Hourly Rate of Pay )A 2 ' NG/6GE. GHXLLENGE, IHSr" 3 Rhonda Rath said the continuation budget request is increased by $1.8 million, $1.6 4 million of which would support salaries and associated benefits and $200,000 would support non- 5 personnel-related costs. 6 7 Slide #5 Local operating Continuation Budget FY26 Mill ACTUAL DAY 40 ENROLLMENT 5,915 plus CHARTER SCHOOL Funded 1,125 (IessI out of distri ct cou nty estimate {115y TOTAL STUDENT Bl WNG BASE 7,475 Continuation Hon Personnel Increase 175,000 State Mandatedlncreases 1,WOW Estimated Continuation Shortfall $ 1,815,000 Reflects: • 3.0%Estimated State salary increase • 6.8%increase in employer-required contribution to TSERS retirement(from 24.04%to 25.68%) • 3.4%increase in employer required contribution to the State health insurance premium(from$8,095 to$8,373) 3.0%increase in non-personnel related operational costs(utilities,transportation,instructional materials,etc.) 8 CHALLENGE. Ir„sPir 9 10 I 10 1 Slide #6 Local Operating Expansion Budget Request Additional Contin uation/Expan sion M Certified Teacher Supplement Increase 1,595,370 Classified Supplement Increase for lowest band 375,000 Bus Driver Hourly Increase to matth CHCCS 305,000 Total Expansion Request 2,275,370 Investment " s • Increasing Certified Teacher Local Supplement to better align OCS ' with surrounding local education agencies • Increasing Classified Local Supplement for Teacher Assistants, Custodians,YfiiceStaff,Mechanics,Technicians and Child Nutrition it Workers • Increasing Bus Driver Hourly Rate to match CHCCS 2 CHALLENGE. INSPIRE. 3 Rhonda Rath said OCS is lagging significantly behind other districts across the state in its 4 certified local supplements. She said right now, they are 12% for 0-5, 14% for-13 years, 16% for 5 13-20 years, and 18% for over 20 years. She said many other districts have a stronger 6 supplement. She said that classified staff have the lowest scale and that is 7% and they would 7 like to increase that to 9%. She said they have tried for several years to adjust those scales for 8 the staff to be more competitive. She said that they have not been able to allocate the funding to 9 correct the salary scales to be more competitive. She said OCS is struggling to retain bus drivers 10 and compete with the pay for neighboring districts. She said matching the pay offered by CHCCS 11 may benefit both districts by increasing the pool. She said that the total request is 4.1 million. 12 13 Slide #7 Local Operating Fund Balance 5,500,400 Highlights: 4,930.000 • OCS continues to review line item spending to do morewith less and 4J40,0M 4,400,WD operate with a balanced budget • IFY 2025 department budgets auo,00a reduced over$700 thousand to eliminate 1st quarter ESSE R cliff • Ongoing strategic spending projected to yield modest increase infund balance atyear end 2021 2022 2023 2024 2025 14 MO —A —5ta.dard 11 1 Rhonda Rath said the OCS fund balance was $4.3 million at the end of FY 2023-24 and 2 estimates there will be a modest increase in fund balance at the end of this fiscal year. 3 4 Slide #8 Questions? 5 ENGAGE.CHALLENGE. INSPIRE 6 Commissioner McKee reiterated that funding the expansion requests for either school 7 district is unlikely, as it would require a large increase in the tax rate. 8 Chair Bedford asked what types of cuts were made when the district cut $700,000. 9 Rhonda Rath said professional development opportunities, travel reimbursements, and 10 even some programs were cut that may not have been giving the expected return on investment. 11 Chair Bedford said she recognizes that CHCCS has looked at classes that do not have 12 enough interest. She said she did the math, and it looked like there was about a $229 per pupil 13 increase in the OCS continuation budget. She said that CHCCS was $292 per pupil. She asked 14 if she got the numbers correctly. 15 Rhonda Rath said her numbers seem correct. 16 Chair Bedford said it used to be a law that CHCCS had to formally request an increase to 17 the special district tax. She asked if they needed to get that formal request. 18 Jonathon Scott said the CHCCS school board took action to request the BOCC increase 19 to the special district tax. He said they can formalize that if needed. He said they are asking for 20 the Commissioners to amend the special tax as needed for the requested budget. 21 Commissioner Fowler asked if it would be based at 2.5% if the School Board did not 22 formally request the tax amendment. 23 Travis Myren said the special district tax will automatically reset to the revenue neutral 24 rate. 25 Chair Bedford requested that staff calculate the per pupil increase to fully fund the 26 continuation budgets for both school systems. 27 Commissioner McKee asked what happens if there is no ability to fund the expansion 28 budgets. 29 George Griffin said the districts would continue with the services they currently offer but 30 would not be able to offer anything additional. 31 Commissioner McKee asked how much of a concern losing teachers is. He also noted 32 that Orange County has a significant need for bus drivers, and this is how children get to school. 33 Anne Purcell said it is a great concern for OCS right now because teachers that have left 34 have self-reported they are going to other districts that offer higher pay. She said the issue is the 35 same with bus drivers. 36 Commissioner McKee said the districts perform higher than other districts across the state 37 consistently and receive some of the highest funding per student in the state. He said he does 12 1 not want any of that to change. He said he is trying to reconcile how they can without increasing 2 the taxes to a level that would force citizens out. 3 Anne Purcell said she and other school board members hear from residents that feel they 4 are taxed too high and those that have moved out of the county due to affordability. She said they 5 are aware of this, but they felt they still had to ask. 6 Commissioner McKee said his concern is that the impact will be felt on the lower wealth 7 and minority populations disproportionately and he does not want to make this county harder to 8 live in for those populations. 9 Commissioner Portie-Ascott asked if all bus routes are covered or if there are absences 10 caused by lack of drivers. 11 Danielle Jones said people that are not technically drivers are driving and that is how they 12 have kept the routes covered. 13 Rani Dasi said she appreciates the conversation and the care for the community. She said 14 that the converse impact of not funding the expansion budget would mean not increasing school 15 counselors. She said that is a critical need in the schools. She said it is a hard choice to make, 16 and they do not want to push community members out but also do not want to hurt students either. 17 She said the state does not fund public schools the way they need to. 18 Commissioner McKee said that given the last five years and all the changes that continue, 19 he said the angst levels are higher than he ever remembers. 20 Vickie Fornville-Feaster said she appreciates sentiment of Commissioner McKee and said 21 that she is an Orange County resident with family here for generations and while Commissioner 22 McKee said that he does not want to turn the county into a place that only the wealthy and white 23 can live, she said it has been that way. She said they are here to speak about what they can and 24 cannot do for their students. She said that the achievement gaps need to be addressed and not 25 having the staff needed to educate all the students is harmful. She said they need to have a 26 broader conversation as two school boards and the Board of Commissioners as to what they can 27 do to keep the schools healthy and to not tax residents out of the county. She said the minority 28 population continues to decline. She said they need to find a way to get beyond where they are 29 now and if they do not look at what they are doing and being intentional with the budgets, they 30 will find themselves in a deeper hole down the line. 31 Chair Bedford said next week the County Manager will present his recommended budget 32 to the BOCC. She said they are trying to look at the full picture. 33 34 Slide #9 1400sill Orange County Schools NORTH CAROLINA ENGAC==:. CHALLENGE. INSPIRE. 35 36 13 1 2. Joint Presentation Federal Funding Impacts 2 Jonathan Scott and Rhonda Rath made the following presentation: 3 4 Slide #1 Sustaining Success: Federal Investments in Education in Orange County, NC psi_ lyes 11� Jonathan Scott, Chief Financial Officer Chapel Hill-Carrboro City Schools ON Orange Rhonda Rath, County Chief Financial Officer Schools Orange County Schools noern c�n�_inn 5 6 7 Slide #2 The Power of Federal Investments in Chapel Hill-Carrboro City Schools & Orange County Schools At Chapel Hill-Carrboro City Schools and Orange County Schools,we believe that every student deserves high-quality,individualized learning and support—regardless of background, need, or circumstance. Federal funding isfoundational to delivering on that belief.These recurring dollars help us provide critical benefits to students throughout Orange County—not as one-time boosts, but aslong-term commitments tostudent support and success: + Provide nutritious mealsto thousands of students + Support exceptional children and multilingual learners in Invest in retaining and developing professional educators + Advance our shared commitment to fairness and whole-child education 8t chxx org orangauni�7l ai com 9 10 14 1 Slide #3 The Power of Federal Investments in Chapel Hill-Carrboro City Schools & Orange County Schools "Federal investments are not just dollars—they are a reflection of ourvalues. They allover us to recruit strong educators, uplift underserved students, and build learning environments where every child in our communities can thrive." —Dr. Nyah Hamlett, Superintendent, Chapel Hill-Carrboro City Schools —Dr. Danielle Jones, Superintendent, Orange County Schools 2 *.A arangsoauntynrsr,aam 3 4 Slide #4 T What's at Risk for Chapel Hill-Carrboro City Schools & Orange County Schools? If recurring federal funds are reduced, schools mayface: School Nutrition Services: o Fewer resources forfree/reduced meals and summer food programs o Increased local burden for maintaining child nutrition operations Instructional Support Programs: o Cuts to Title I may reduce readingrmath intervention and support for economically disadvantaged students o Reduced Title II funds could limit professional development and teacher support 5 ,��choes.org orangemunynrsi cam 6 Jonathon Scott explained some of the services that would be lost if T111itlerrKii I and II funds 7 were cut. 8 9 15 1 Slide #5 I What's at Risk for Chapel Hill-Carrboro City Schools �r Orange County Schools? > \� If recurring federal funds are reduced, schools may face: ' Special Education(IDEA): o Fewer funds for specialized staff, services, and materials for students with disabilities o Risk of noncompliance with mandated IDEA requirements rEarly Childhood Education: o Reduced funding for Head Start and Pre-K programs could limit access for at-risk children and families Career$Technical Education: o Fewer resources for program materials, certifications, and workforce-readiness opportunities 2 MA cMLs,org orangeo,unynrsl,com 3 Jonathon Scott said that Title I funds also help fund services for unhoused students. 4 5 Slide #6 T What's at Risk for Chapel Hill-Carrboro City Schools Sr Orange County Schools? Bottom Line: Federal reductions would shift the financial burden to local and state funding sources and risk compromising fair access for students and staff to much-needed support. 6 ehces,org orang&zunynralL m MA 7 Jonathon Scott said federal funds cover 5-6% of the districts' budgets. 8 9 16 1 Slide #7 Total Recurring Federal Funding (IFY Ending June 30, 2024*) • Chapel Hill-Carrboro City Schools Total: $9.2 million • Orange County Schools Total: $$.6 million Nutrition $2.83M $2.51M Instruction&Support $2.20M $1.85M Special Education $2.85M $2.04M Early€Childhood $1.38M $0.23M "FY20 24 is the mast recent year with f ul H audited feria ral f u rd i ng figu res. 2 the sarg flrangewvnlyTir8lAam 3 Jonathon Scott and Rhonda Rath presented the information for their respective districts. 4 Rhonda Rath said a lot of the teachers they are hiring are coming in on alternative 5 pathways. She said that means they are not going through the traditional teacher-education 6 programs. She said that the federal dollars they are using are for instructional interventionists that 7 are assisting beginning teachers and students that may be behind and need additional support to 8 achieve proficiency or growth. She said if these funds are taken away, they will have to look at 9 the internal budget and will have to be in touch with the county. 10 11 Slide #8 ThankYou. Questions? 12 �chxs.org orangax+u n1�71ra1:.om 17 1 Commissioner McKee asked if either district has been notified of federal cuts. He asked 2 what the districts consider a probable loss vs. a possible loss. 3 Rhonda Rath said OCS has lost a $30,000 grant that helped get local produce into the 4 menu at the schools. She said they are already looking at how to mitigate that so there is no 5 impact to menus or lunch prices. She said that a probable loss in Title I is 15-20% as well as 15- 6 20% in special education. 7 Jonathon Scott said CHCCS has not received any notification of cuts. He said they have 8 discussed reductions and for years there has been talk about eliminating Title I funding, so that 9 would likely be where they would start. 10 Vice Chair Hamilton thanked the districts for their presentations and for their proactive 11 work anticipating possible cuts and making plans. She said that the county will also be facing 12 similar budget cuts from federal dollars. She said those are hard and they will all need to be 13 flexible and aware of how they will respond. She said that echoing Chair Bedford, it is a difficult 14 position to be in as a county commissioner because they want to invest in the children and provide 15 services for the most vulnerable in the community, but they are also aware that they can't just 16 raise taxes to do that or bring in a big company that could bail them out. She said they are going 17 to look at everything. She said there are forces at play larger than what the county can control. 18 She said they need to focus on the basics by investing in people and the infrastructure that 19 supports people. 20 Chair Bedford asked if they would see what the county's potential federal cuts might be. 21 Travis Myren said $20 million in federal funding flows through the county budget. He said 22 that some does support positions directly. He said they also support housing choice vouchers that 23 flow through the Housing Department to residents in the form of housing vouchers. 24 Chair Bedford asked if the federal government cuts Medicaid would additional money be 25 lost. 26 Travis Myren said there is about $230 million in federal funding that provides direct 27 benefits to residents of Orange County. 28 Chair Bedford said to call senators every week and to keep speaking out at state and 29 federal level. 30 31 3. Group Discussion and Collaboration 32 Chair Bedford asked Commissioners and members of the Boards of Education to think 33 about some topics for conversation and collaboration between the elected bodies that they are 34 not normally able to have. She said their joint meeting in the spring is typically limited to budget 35 discussions, but there is opportunity at the September joint meeting to dive deeper into other 36 topics. 37 Riza Jenkins asked when the budget public hearings will be held. 38 Travis Myren said they will be held on May 13th and May 29th. 39 Laura Jensen said they will be held at Southern and Whitted, respectively. 40 Chair Bedford said the deadline for budget amendments is noon on May 28t". She said 41 the budget will be adopted on June 17th, but the decisions are made at the previous meeting when 42 the Board approved the Intent to Adopt. She thanked the school districts for their presentations. 43 44 The Board recessed the meeting for 10 minutes at 8:33 p.m to allow school board 45 members to exit the meeting room. The Board reconvened at 8:43 p.m. 46 47 4. Board of Commissioners' Closed Session 48 49 A motion was made by Vice-Chair Hamilton, seconded by Commissioner Fowler, to enter 50 into Closed Session pursuant to G.S. § 143-318.11(a)(3) "To consult with an attorney employed 18 1 or retained by the public body in order to preserve the attorney-client privilege between the 2 attorney and the public body". 3 4 VOTE: UNANIMOUS 5 6 A motion was made by Commissioner Fowler, seconded by Commissioner McKee, to 7 reconvene into regular session at 9:07 p.m. 8 9 VOTE: UNANIMOUS 10 11 Adjournment 12 13 A motion was made by Vice-Chair Hamilton, seconded by Commissioner Fowler, to 14 adjourn the meeting at 9:07 p.m. 15 16 VOTE: UNANIMOUS 17 Jamezetta Bedford, Chair 18 19 Recorded by Tara May, Deputy Clerk to the Board 20 21 Submitted for approval by Laura Jensen, Clerk to the Board Attachment 3 1 1 DRAFT MINUTES 2 ORANGE COUNTY 3 BOARD OF COMMISSIONERS 4 BUSINESS MEETING 5 May 6, 2025 6 7:00 p.m. 7 8 The Orange County Board of Commissioners met for a Business Meeting on Tuesday, May 6, 9 2025, at 7:00 p.m. at the Whitted Human Services Center in Hillsborough, NC. 10 11 COUNTY COMMISSIONERS PRESENT: Chair Jamezetta Bedford, Vice-Chair Jean Hamilton 12 and Commissioners Marilyn Carter, Amy Fowler, Sally Greene, Earl McKee, and Phyllis Portie- 13 Ascott 14 COUNTY COMMISSIONERS ABSENT: None. 15 COUNTY ATTORNEYS PRESENT: John Roberts 16 COUNTY STAFF PRESENT: County Manager Travis Myren, Deputy County Manager Caitlin 17 Fenhagen, and Clerk to the Board Laura Jensen. (All other staff members will be identified 18 appropriately below) 19 20 Chair Bedford called the meeting to order at 7:00 p.m. All commissioners were present. 21 22 1. Additions or Changes to the Agenda 23 There were no changes to the agenda. 24 25 Chair Bedford read the public charge and explained the process for making public 26 comments. 27 28 2. Public Comments (Limited to One Hour) 29 a. Matters not on the Printed Agenda 30 Beverly Scarlett read a short passage on the history of discriminatory taxation in North 31 Carolina. She said that residents are still experiencing discriminatory taxation with revaluation. 32 She described the impacts of discriminatory taxation on families. She said it was important to 33 remember land owners who are legacy land owners in the county. She asked what residents like 34 her, as legacy land owners, are supposed to do. She said it is less about race now and more 35 about socio-economic status. She said that the poorer people are getting taxed more and the 36 wealthy people are taxed less. She said she has participated in 20 appeals and shared 37 information about her research with the Board of Commissioners. 38 Soteria Shepperson thanked the JCPC committee members who have recommended 39 funding for Grow Your World, the non-profit she is co-executive director of. She said they have 40 had significant community impacts. She thanked those in the community who support Grow Your 41 World. She said they are hoping to partner with AL Stanback to provide mentoring. She described 42 some of the successes the organization had in the past year through their programs. 43 Sophie Suberman, also a co-executive director of Grow Your World, said it's easier to 44 access a vape than free afterschool mentoring. She said that opioid funding requests for county 45 and community-based programs are considered separately. She expressed concern that equity 46 is not achieved by separating funding. She said community-based programs serve those most 47 impacted by addiction. She read some of the positive comments students made about 48 participating in the mentorship program at Grow Your World. 49 Mary Leonhardi said the Styrofoam recycling program she participates in has grown and 50 needs the support of a larger organization to continue its success. She encouraged the county to 51 look into Styrofoam recycling. 2 1 Carnetta Swann said she was a lifelong resident and spoke about the burden of the recent 2 revaluation of her home. She said she felt the new valuation was incorrect and wanted to know 3 what factors were considered during the valuation of her home. 4 Eileen Williamson said she is appealing the value of the home she moved into in 1976, 5 which was also an FHA house. She described the condition of her home which she felt justified 6 lowering the value of the property. She said she had spoken with the Tax Office about an appeal. 7 Joann Mitchell said she is a Habitat for Humanity homeowner and represents 8 Homeowners United of Habitat for Humanity Orange County. She said the organization is 9 advocating for families and communities in the program. She said that people in the program are 10 low-income families. She asked the Board to consider amending the process for valuing 11 affordable housing in the county. She said that consists of twelve neighborhoods and 445 homes. 12 She said that residents in the program do not go on the open market to buy homes. She said 13 there are income restrictions for Habitat homeowners. 14 Chair Bedford said that Commissioner Greene brought up the same issue. She said they 15 are looking to see if there is legislation allowing for Habitat homes to be valued using a different 16 process. She encouraged people to apply for longtime homeowners assistance with the county 17 and described some of the requirements. 18 Horace Johnson described the new housing developments being built in Hillsborough 19 which are not affordable for many residents. He encouraged the Board to visit residents in the 20 county and learn more about what people are dealing with. He said that the African American 21 population has decreased in the county, and it is important to understand why. 22 23 b. Matters on the Printed Agenda 24 (These matters will be considered when the Board addresses that item on the agenda below.) 25 26 3. Announcements, Petitions and Comments by Board Members 27 Commissioner McKee said that he had petitioned for publication of the revenue neutral 28 rate and to have an item for specific cuts that would be necessary to achieve a revenue neutral 29 tax rate. He said that the budget presented has an increase of 6%. He said that he is again 30 petitioning that an agenda item presentation on specific cuts to make revenue neutral rate occurs 31 on May 20th. He read a passage from a letter from a resident that reiterates what he has said. 32 Commissioner Fowler noted there was an item on the consent agenda regarding screen 33 use by youth. She encouraged everyone to put their phones down more this week and develop 34 healthier habits. She said that anxiety and depression in youth increases with more screentime. 35 She said that May 9 is childcare provider day. She said that quality childcare is critical to children's 36 development. She said she is thankful for the providers in the county. 37 Commissioner Greene said she attended the dedication of the Peach Apartments. She 38 said that homes are Empowerments first rental units, and the county contributed to the project. 39 She said that she attended a dedication at the Courthouse of a portrait of Lisbon Payne Berry, the 40 first black lawyer in Orange County and likely one of the first ten Black lawyers in the state. She 41 said she was on the housing collaborative call and visited 10 farms during the April farm tour. She 42 said a lot of great things are going on with Orange County farms. 43 Vice-Chair Hamilton noted that there was a proclamation on the consent agenda for Older 44 Americans Month. She said that as an older America, thank you. She said this Board typifies the 45 contribution that older Americans make to the community and that it was more important now for 46 everyone to participate and get involved. She said she attended the Alliance Health board 47 meeting, and they have a number of resources available to support mental and physical health. 48 She said everyone experiences stress and need to look for ways to support themselves and 49 others. 50 Commissioner Portie-Ascott said she attended the Eno Arts Mill Hidden Voices exhibit that 51 showcases the survivors of sexual violence. She spoke with one of the survivors and she indicated 3 1 that she loves visiting Orange County because of the way she feels welcome. She said that 2 residents have expressed concerns about the revaluation to her and she wants to make sure 3 people hear that they are looking at a lot of needs and they are trying to take care of what is 4 needed. She said it was Teacher Appreciation Week, and she thanked educators for their work. 5 She said that it was also National Nurses Week. She said that her younger sister was a nurse 6 and that she passed away three years ago but this proclamation always makes her think of her 7 and all of the nurses in the community. 8 Commissioner Carter said she also attended the Lisbon Payne Berry. She said that a 9 number of judicial representatives and Commissioners were in attendance. She said that the Arts 10 exhibit was very moving. She said many older Americans are unpaid care givers and they save 11 the US $600 billion per year in care costs. 12 Chair Bedford said there will be a community wellness event at DSS on Saturday. She 13 said that there will be a foster family orientation on May 13 and encouraged anyone interested to 14 attend. She reviewed the upcoming budget work session and public hearing dates and described 15 how amendments may be made by commissioners. She said that it is important to hear from the 16 public during the process. 17 18 4. Proclamations/ Resolutions/ Special Presentations 19 a. Mental Health Awareness Month Proclamation 20 The Board approved a proclamation designating May 2025 as Mental Health Awareness Month 21 in Orange County. 22 23 BACKGROUND: Mental Health Awareness Month has been observed in the U.S. since 1949. 24 Each year millions of Americans face the reality of living with a mental illness. Even though mental 25 health conditions are common and treatable like physical health conditions, many people are still 26 afraid to talk about them due to the stigma associated with mental illness. In May, mental health 27 organizations and affiliates raise awareness with community events and messages of hope to 28 highlight the importance of mental health. 29 30 The Board of Commissioners is asked to proclaim May 2025 as"Mental Health Awareness Month" 31 in Orange County to shine a light on mental illness and the need for long-term improvements in 32 our mental health care system and improved access to care so no one feels alone. 33 34 The commissioners read the following proclamation in turn: 35 36 ORANGE COUNTY BOARD OF COMMISSIONERS 37 PROCLAMATION 38 MENTAL HEALTH AWARENESS MONTH 39 40 WHEREAS, mental health is part of everyone's overall health and well-being, and mental illnesses 41 are prevalent in our county, state, and nation, with one in five adults experiencing a mental health 42 issue every year; and 43 44 WHEREAS, mental health sustains an individual's thought processes, relationships, productivity, 45 and ability to adapt to change; and 46 47 WHEREAS, it is important to maintain mental health and to recognize the symptoms of mental 48 illness and seek help when it is needed; and 49 WHEREAS, early identification and treatment can make a difference in successful navigation and 50 management of mental illness and recovery; and 51 4 1 WHEREAS, stigma and the resulting discrimination is a primary obstacle to early identification 2 and effective treatment of individuals with mental illness and the ability to recover to lead full, 3 productive lives; and 4 5 WHEREAS, every person and community can help end the silence and stigma surrounding 6 mental illness that for too long has made people feel isolated, alone and discouraged people from 7 getting help; and 8 9 WHEREAS, Orange County remains engaged in the promise to address the challenges facing 10 people with mental illness; and 11 12 WHEREAS, people with lived experience of mental illness and/or substance use disorders get 13 better, live in recovery, and provide invaluable knowledge of how to improve and transform 14 systems of care, and 15 16 WHEREAS, through public education and working together to raise awareness, we can help 17 improve the lives of individuals and families affected by mental illness, and 18 19 WHEREAS, Mental Health Awareness Month is an opportunity to increase public understanding 20 of the importance of mental health and to promote the identification and treatment of mental 21 illness; 22 23 NOW THEREFORE, we, the Orange County Board of Commissioners, do hereby recognize May 24 2025 as Mental Health Awareness Month in Orange County and shine a light on mental health 25 and the need for long-term improvements in our mental health care system and improved access 26 to care so no one feels alone. 27 28 This the 61h day of May, 2025. 29 30 31 Jamezetta Bedford, Chair 32 Orange County Board of Commissioners 33 34 A motion was made by Commissioner McKee, seconded by Commissioner Fowler, to 35 approve the proclamation designating May 2025 as "Mental Health Awareness Month" in Orange 36 County and authorize the Chair to sign the proclamation. 37 38 VOTE: UNANIMOUS 39 40 Chair Bedford encouraged anyone who feels isolated and alone to reach out to the county 41 for assistance. 42 Commissioner Fowler said she hoped this proclamation would encourage people to 43 consider their own mental health and being open to seeking assistance. She said she also hoped 44 it would help the Board focus on how they can improve the community's health through 45 operational and capital budgets. 46 47 5 1 b. Presentation of Manager's Recommended Fiscal Year 2025-26 Annual Operating 2 Budget 3 The Board received a presentation on the Manager's Recommended FY 2025-26 Annual 4 Operating Budget. 5 6 BACKGROUND: Each year in the month of May, the County Manager presents the Board of 7 County Commissioners with a recommended spending plan for the next fiscal year. During the 8 meeting, the Manager provides a brief presentation of the Recommended FY 2025-26 Annual 9 Operating Budget. 10 11 The Board of County Commissioners will conduct two Public Hearings - the first at 7:00 p.m. on 12 Tuesday, May 13, 2025, and the second on Thursday, May 29, 2025 at 7:00 pm. In addition, the 13 Board has scheduled the following Budget Work Sessions: 14 15 • May 15, 2025 - Budget Work Session with Chapel Hill-Carrboro City Schools, Orange 16 County Schools, Durham Tech Community College and Outside Agencies. 17 18 • May 22, 2025 - Budget Work Session with Fire Districts and County Departments within 19 the following Functional Leadership Teams: Public Safety (Courts, Criminal Justice 20 Resource Department, and the Sheriff's Office); Human Services (Child Support, 21 Department of Aging, Health, Housing Department, Equity and Inclusion, Library Services 22 and Alliance Health), as well as the County Manager's Office. 23 24 May 27, 2025 - Budget Work Session with County Departments within the following 25 Functional Leadership Teams: Support Services (Asset Management Services, 26 Community Relations, Finance and Administrative Services, Human Resources and 27 Information Technology); General Government (Board of County Commissioners, Board 28 of Elections, County Attorney, Register of Deeds and Tax Administration); Community 29 Services (Animal Services, Cooperative Extension, Department of Environmental, 30 Agriculture, Parks and Recreation, Economic Development, Orange Public 31 Transportation, Fleet Services, Planning and Inspections, Solid Waste and Sportsplex) as 32 well as the Department of Social Services and Emergency Services departments. 33 34 • June 5, 2025 - Budget Work Session for Board to review budget amendments and finalize 35 decisions (Resolution of Intent to Adopt) on the FY 2025-26 Annual Operating Budget and 36 the FY 2025-2035 Capital Investment Plan. 37 38 • June 17, 2025 - Business Meeting for the Adoption of the FY 2025-26 Annual Operating 39 Budget and the FY 2025-2035 Capital Investment Plan. 40 41 All meetings start at 7:00 p.m. 42 43 Travis Myren made the following presentation: 44 45 6 1 Slide #1 ORANGE COUNTY NORTH CARC)I-INA Introduction of Manager's Recommended FY2025-26 operating Budget May 6, 2025 Board of orange County Commissioners 2 3 4 Slide #2 Budget Priorities for FY2025-26 1. Minimize Tax Rate Increase 2. Create Budget Flexibility in Anticipation of Economic Downturn and Potential Federal Reductions 3. Maintain County Investment in Social Safety Net Services 4. Provide Continuation Funding to Schools 5. Invest in Employee Compensation Package 6. Align Budget Investments with Strategic Plan Coals ORANGE COUNTY 2 NORTH CAROLINA 5 6 7 8 7 1 Slide #3 Revenue Neutral Tax Rate • Appeals Update Adjustment to Revenue Neutral Tax Rate — $334.9 million Requested Reductions from Informal — Decrease the Tax Base Reduction due to Appeals from Appeals 5%to 3% • Assumes all appeals are granted as requested Informal appeals closed on April 30 — Adds$624 million to the FY2025-26 Tax Base — 3% Reduction due to Appeals=$936.2 million — $601.2 million available for formal appeals ORANGE COUNTY 3 NORTH CAROLINA 2 3 Slide #4 Revenue Neutral Tax Rate — Update to Property Tax Base Property \ Reduction \ Appeals \ Appeals Real Property • Land+ImproverrentsfBuildings $29,645,160,916 $30,269,269,567 • Adjusted by 5%for expected appeals Personal Property&Public Utilities Unlicensed vehicles,trailers,campers,boats,jet $1,242,143,886 $1,242,143,886 skis,etc. Power company,gas company,railroad,etc. Motor Vehicles $1,743,029,203 $1,743,029,203 TOTAL $32,630,334,005 $33,254,442,655 ORANGE COUNTY ROLINA4 5 6 7 8 1 Slide #5 Revenue Neutral Tax Rate Property Tax Base X Property Tax Rate= Property Tax Levy Property Property Tax Rate $33,254,442,6 .- $33,254,442,655 .006264 $208,306,757 Or...62.64 cents per$100 of Assessed Value New"breakeven" percentage increase is just below 38%with updated Revenue Neutral Rate ORANGE COUNTY 5 NOWrH CAROLINA 2 3 Slide #6 Manager's Recommended Tax Rate Manager's Budget Recommends Increase of 2.95 cents over Revenue Neutral Tax Rate • 1.94 cents to support school planning and design Impact on Home @$400,000=$118.00 • 1.01 cents to support school and County operations . Impact on Home [7a $500,000=$147.50 County Tax Rate History u0 m Orange Bam=Revaluation Years 100.u0 75.DD xE.00 85.80 97.90 ii5.79 8fi.3M1 91.87 83.12 9A58 80.00 65.59 60.00 40.00 20.00 0.00 MM FY20% FY2007 FT20M FV20M FY2010 FY2D11 FY2022 FY2D13 FY201. FY2D15 FY2D16 FY2017 FY2410 FY2019 FY2620 FT2D21 FV2022 F12023 FY20N FY2025 FY2D25 Rx. 4 5 Chair Bedford asked staff to provide a scenario of what the impact would be if the school 6 capital pay-go was debt instead. 7 Travis Myren said it will be at the May work session, and they can provide more 8 information. He said they are also looking at the scenario of delaying the projects for one year. 9 Commissioner McKee asked if delaying the projects for a year eliminates the cost of the 10 pay-go. 9 1 Travis Myren said yes, for one year. 2 Commissioner McKee clarified that would eliminate the 1.94 cent increase. 3 Travis Myren yes and it would be 1 cent for operations. 4 Commissioner McKee asked what the effect would be to eliminate the 1.01 cents for 5 school and county operational needs. 6 Travis Myren said it would be $3.3 million. 7 Commissioner McKee asked what the impact would be on actual operations. 8 Travis Myren said $1.8 million on the Dept. on Aging, $3 Million for DEPR, $3 Million for 9 Housing and those would be whole departments. 10 Commissioner McKee asked if it could be spread out amongst all departments, so they 11 are not eliminating whole departments. 12 Travis Myren said yes, but at that point they would be looking at reductions in force. He 13 said they would have to talk about if there are any exceptions. He said that in the past it would 14 have exempted public safety agencies. 15 16 Slide #7 Fire District Tax Fates • Ten of Twelve Fire Districts Requested Tax Rate Increases Taxing District Requested Increase • 5400,000 Ho CEDARFY 202S Tax Rats Revenue Neutml Rate IFY 2026 Request Revenue Neutral per Year GROVE FIRE 9.00 6.54 7.54 1.00 $40.00 CHAPEL HILL FIRE 13.87 10.79 11.50 0.71 $28.40 DAMASCUS FIRE 12.80 9.79 1030 0.41 $16.40 EFLAND FIRE 14,.28 7.38 a,38 1.00 $40.00 ENO FIRE 11.98 8.71 8.71 - - LITTLE RIVER FIRE 7.39 5.35 5.35 - - NEW HOPE FIRE 13.84 10.15 12.50 2.35 $94.00 RANGE RURAL FIRE 11.49 8.21 9.21 1.00 $40.00 RANGE GROVE FIRE 8.27 5-81 7:00 1.19 $47.60 SOUTH ORANGE FIRE 9.09 6.67 8.17 1.50 $60.00 SOUTH TRIANGLE FIRE 12.80 6.75 10.20 1.45 $58.00 WHITE CROSS FIRE 13.64 10.30 14.00 3.70 $148.00 ORANGE COUNTY 7 NORTT-I OAROL7NA 17 18 Travis Myren said the increases requested by fire districts were mostly driven by needing 19 paid staff. 20 Commissioner McKee clarified that the impact of the tax increase on a $400,000 home 21 would be on top of the previous increase. 22 Travis Myren said yes it would be on top of the county increases. 23 Commissioner McKee said it would also be on top of any town rates for residents that 24 reside inside city limits. 25 Travis Myren clarified that town residents do not pay a fire district tax and only the county 26 and town rates. 27 28 10 1 Slide #8 Minimizing lax Fate increase • Departments Absorb Inflationary/Other Cost 3. Bonds, Insurance, worker's comp Increases Premiums for Bonds.and Workers Camp due to 45%increase in coats in the market-$125,691 -- 16 out of 27 Departments below FY2025-26 Base Estimated increase oast in Worker's Comp Claims based on active Budgets claims-$46,DW -- Only six departments increased their net county cost above$100,000 from base 4. Board of Elections • Municipal Election year-5122,260 1. Asset Management Services 5. sheriff's Office • Electricity-S90.575 • Water-$33,446 $1,026,250 Sheriff's Office Overtime and Temp personnel based on actual spend • Natural Gas-$24,233 $491,000 reduction in Jail Fee Revenue Contract Cost Increases-$102,834 2. Information Technology 6. Fleet Services Increased costs of existing software—Increase of$335,778 2 Automotive Mechanic FTEs and increased parts budget of$306,900 in Fleet • Added ServioesXeatures For existing applications—Increase of Fully offset by reduction of Sheriffs Office contract $49$.190 • �eWmmiaataned features and applinafi0r�—Savings of$266,837 Avoids a$150,600 cost increase in FY2025.26 OKANGE COUNTY a NC)RTI-€ CAR01,1NA 2 3 Chair Bedford asked for more information on the increased costs for the Board of Elections 4 in FY26. 5 Travis Myren said he will bring back further information and believes it is related to the 6 variety of ballots. 7 8 Slide #9 Minimizing Tax Fate Increase • Transition of General Fund Expenses to Other Funding Sources Orange Enterprises Outside Agency and transitioned to Maintenance of Effort Three tourism based Outside Agencies transitioned to Visitors Bureau Fund CJRD Clinical Coordinator Position transitioned to Opioid Fund Total Savings to the General Fund$176,084 • 10% Reduction to Training and Travel $38,940 savings generated in General Fund, $50,158 across all funds. GRANGE COUNTY 9 NO R'1'41 CAR()] INIA 9 10 11 1 Slide #10 Minimizing Tax Rate Increase • 4 Vacant Positions Eliminated or Unfunded — 2 FTEs eliminated for lawn maintenance, replaced by contract-$42,464 net savings 1 FTE unfunded for Inspections based on decreased permitting activity-$84,716 savings 1 FTE eliminated for DSS vacant for more than one year-$60,897 savings • Administrative Overhead/Indirect Costs Charged to Arts Commission and Sportsplex Offsets General Fund costs for Finance, Human Resources,Asset Management Services,etc. $32,264 Arts Commission $183,298—Sportsplex • Charge Special District for Tax Collection — County charges all other taxing jurisdictions 0.5%of total collections to collect and remit taxes — Generates$135,000 in revenue — Special District tax rate recommended to increase by 0.07 cents to fund — Impact on$400,000=$2.80 per year 10ORANGE OUTY LINA2 3 4 Slide #11 Minimizing Tax Rate Increase • 4 Positions Added to Reduce Expenses or Generate Revenue — 2 FTE Mechanics in Fleet Services;Offset by Reduction in Contract Services — 1 Facility Maintenance Technician FTE in Asset Management Services Conduct life safety checks and painting Offset by ending contracts for both services($71,585) Creates a net savings of$672 after position is funded • Avoids$35,004 in additional costs in FY2025-26 based on new quotes from fife safety check vendor — 1 Emergency Management Billing FTE in Tax Office Generated an estimated$275,000 increase in EMS billing revenue • Revenue estimates based on increased number of tickets processed In months when light-duty Emergency Services staff assisted with billing Position cost-S65,225 „ ORANGE HE CC+UOIL Ill QTY 5 6 7 8 12 1 Slide #12 Minimizing Tax Fate increase 1.25 Positions Added in other funds, not funded by General Fund revenues — 3 Program Coordinator FTE in Arts Commission • Position cost of$65,216 • Paid with Occupancy Tax funds — .25 Time Limited increase to Clinical Coordinator in Criminal Justice Resource Department • Response to increase in pretrial detention rates and increasingly complex behavioral health needs at the(Detention Center • Position funded with Opiold Settlement Funds • 3 Positions moved from Grant funding to County funding — 2 Positions from Expiring Mental Health in Policing Grant • Community Care and[Diversion Response Team Mental Health Coordinator—CJRO;Funded through Maintenance of Effort Social Worker—Sheriffs Office;funded by reclassifying existing position budgeted at a higher cost — t Community Emergency Medical Technician from Expiring Mobile Clysis Grant • Offset by additional revenue in Emergency Medical Services • Contract for Crisis Counselor in the 911 Center recommended to be eliminated ORANGE COUNTY 12 NC)RTI-1 CAROLINA 2 3 Chair Bedford asked if maintenance of effort funding has an assumed growth each year. 4 Travis Myren said no. He said that in the previous year, the county began phasing out a 5 contract for UNC Psychiatry Services. He said that reduction paid for the additions in this 6 recommended budget. 7 Commissioner Carter asked if the contract for the Crisis Counselor and the 911 center 8 was underutilized and that is why it was phased out. 9 Travis Myren said it was the least used component of the total. 10 Commissioner Carter said as they look for opportunities to save and fund those positions, 11 the 911 center position is important to appropriately route crisis calls. She said the importance of 12 rapid response is crucial. She said she had someone that reached out to her and said they were 13 unaware of those services. She petitioned the Board to try to retain that position. 14 Travis Myren said the dispatchers do not decide who gets a crisis response because those 15 are dictated by law enforcement agencies. He said there are safeties built in to establish protocols 16 for and lessen the chance of human error. 17 Commissioner Carter asked for clarification on what the Crisis Counselor position is 18 currently doing. 19 Travis Myren said there may be situations that are deescalated, and the team is not 20 dispatched to begin with, and this is a primary benefit. 21 Vice-Chair Hamilton said it would be helpful to have a better sense of how the mental 22 health system comes together. She said there may be other places that people are entering the 23 system. She suggested that as they go forward, that they think about how all of this is 24 coordinated. She suggested a work session to investigate the details and noted that this would 25 not be for this budget cycle. 26 Chair Bedford requested that staff make a note to potentially cover that topic at a future 27 retreat. She asked if it was accurate to say that those positions mean they do not have to hire 28 EMS for a short while. 29 Travis Myren said it enhances the quality of the response rather than precluding. He said 30 they serve different functions. He said that if this team is responding instead of law enforcement 13 1 that reduces the law enforcement calls. He said that some EMS calls are also dispatched to these 2 and that would be an okay assumption to make. 3 Commissioner Fowler referred to slide#8. She noted that with the expenditure increases 4 and the revenue reduction, the cost of the Sheriff's Office is increasing $1.5 million. 5 6 Slide #13 Creating Budget Flexibility • Sales Tax Projection Including Medicaid Hold Harmless — Projecting to be$765,718 under budget in FY2024-25 • $43,373,294 projected for FY2024-25 on a Budget of$44,139,012 3-month reporting delay on Sales Tax revenues from State • Impact of tariffs on April sales will not be known until July — No Growth from Budgeted Amount in FY2025-26 • Makeup the$765,718 deficit from FY2024-25 Equates to 1.8%growth from FY2024-25 projected actuals • N additional growth expected due to anticipated economic conditions If actual results are better,adjustments can be made during the year 13 OR�A�, E gCOUN�TY 7 8 9 Slide #14 Creating Budget Flexibility Actual Sales Tax Collections $50,000.000 O0 18.4% 20.0% 545,000.00060 WAW 542.64M 941.37M $44.15M 540.000.000.00 14.1% 536.M 15.0% 535.000.000.00 32AM $30.000,000.00 $27,34M $28-13M 10.0% $24.41M $25.68M $25.000,000.00 $20,000.000.00 5.0% 315,000,000.00 $10,000.000.00 0.0% $5,000.000.00 50.00 .5.0% 2017 2018 2019 2020 2021 2022 2023 2024 2025 Est. 2026 Rac, 4 Acwai -CWnge from Poor Year ORANGE COUNTY 14 NOR'T'H CAROLINA 10 14 1 Slide #15 Creating Budget Flexibility • Register of Deeds — $1,963,000 projected for FY2024-25 on$1,967,000 Budget — No increase from FY2024-25 Budget Register of Deeds Revenue %4,000,000 $3,500,000 $3,42M 53.000,000 %2,500,000 S2.35M $2,26M 42.09M $2.18M %2.000,000 $1.85M E1.99M EL94M $1.98M $1,96M $1.97M $1,500,000 %1,000,000 8500.000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 EsL 2026 Ree. ORANGE COUNTY 15 NORA-H CAROLINA 2 3 4 Slide #16 Creating Budget Flexibility • Increase to Social Justice Reserve Fund — $50,102 added to create$250,000 pool to react to negative revenue impacts • Reduction to Appropriated Fund Balance — $31,233 reduction from$7,100,000 in FY2024-25 to$7,068,767 in FY2025-26 ORANGE COUNTY 16 NORTH CAROLINA 5 6 7 15 1 Slide #17 Maintain County Investment in Social Safety Net • $24,000 increase in Longtime Homeowners Assistance program to offset the impact of the tax rate increase; does not address increased due to valuation $70,000 increase in Emergency Housing Assistance program through reallocation $25,000 increase in Partnership to End Homelessness Budget to Continue Cold Weather Cot Program $100,000 increase in Department of Social Services In Home Aid and $40,204 in the Aging In- Home Respite program $62,000 in Master Aging Plan Balance to Urgent Repair Program ORANGE COUNTY 17 NORTH CAROLINA 2 3 Chair Bedford asked for clarification on how many in-home aid hours would be funded 4 through the $100,000 increase in DSS. 5 Travis Myren said it would provide 60 total hours, but he would double check. 6 7 Slide #18 Maintain County Investment in Social Safety Net $40,000 Increase for Vaccine Supplies in the Health Department as Pandemic Grants Expire • Provide Additional Funding to Outside Agencies that Serve Social Safety Net Needs • Maintain Budgeted Funding for County Day Care Subsidies to Parents ORANGE COUNTY 18 NORTH CAROLINA 8 16 1 Travis Myren said that Outside Agencies that were best aligned with the Strategic Plan 2 outcomes received more funding. He said the overall amount is the same, but it has been 3 reallocated. 4 Commissioner Portie-Ascott referred to slide #17. She asked for more information on the 5 urgent repair program. 6 Travis Myren said there is an income limit and that it would be targeted to older residents. 7 Commissioner Portie-Ascott asked if there are additional funds to help low-income 8 households make repairs. 9 Travis Myren said there is no county increase to the program. He said through HOME 10 funding, the Housing Department is proposing additional funding. 11 12 Slide #19 Provide Continuation Funding for Schools Total Budgeted Students by District 13;000 12.115 12,741 12.319 12,233 12,160 12.387 12,174 12.238 12,351 12000 11,705 11326 11,870 11,493 11,382 7A4Z 11,253 11,141 11,01$ 11;000 10;000 50W –4–e4ccs $011 R,174 8,156 8,023 8,007 –wOCs 7,861 7.8D1 7,966 &07I 15.110 7,936 2,975 8;000 7,357 7,437 7,198 7,217 7,171 7,000 6.0m - 5,000 ]minx w9H-o9 1m¢o Mi =141 7ar.13 Wli Tois.rs wigs 1-11 X111. 1—.. -.2o -1 7p#1-]7 M7.71 NI— w—, MIN CHCCS Budgeted Student Decrease of 123 Students Budgeted student percentage decreases from 58.40%to 58.16% QCS Budgeted student Decrease of 11 students ORANGE COUNTY 19 Budgeted student percentage increases from 41.60%to 41.84% NORTH CAROLINA 13 14 Travis Myren said changing student populations in each district affects the amount 15 allocated to the districts. 16 Chair Bedford said it also affects Article 46. 17 Commissioner Carter asked what the absenteeism rate is in schools. 18 Chair Bedford said the absenteeism rate is negligible. 19 Travis Myren said the student population is affected by demographics, lower birth rates, 20 and lack of affordability, and market share; there are more choices. He said those population 21 losses are in the elementary level. 22 Commissioner Carter thought that when the County Manager said students "were not 23 showing up," that it was in reference to an absenteeism problem. 24 Travis Myren said he should have said those losses are experienced at the elementary 25 school level. He said students are not appearing in the system. 26 27 17 1 Slide #20 Provide Continuation Funding to Schools Total Recommended School District FY2024-25 FY2025.26 $Difference %Increase Approved Recommended Current Expense $108,090,282 $111,328,011 $3,237,729 3.0% Recurring Capital $3,060,000 $9,521,200 $6,461,200 211.2% Debt Service $19,182,204 $20,840,115 $1,657,911 8.6% Health&Safety Contracts $4,004,666 $4,160,806 $156,140 3.9% +Enrollment Projections TOTAL $134,337,152 $145,850,132 $11,508,233 8.6% Calculation of Percentage of General Fund Revenues Dedicated to K-12 Education Total School Funding Rec. $145,850.132 =47.9% Total General Fund Revenue $304,784,697 ORANGE COUNTY 20 ?yiti)lt 11 1 CAROLINA 2 3 4 Slide #21 Provide Continuation Funding for Schools PupilPer . Total Current Expense Budget $111,328,011 Total Countywide Budgeted Students 18,943 Per Pupil Amount $5,877 Each budgeted student funded at the same per pupil amount 1LIBudgeted' . Students Per Pupil W-01 IOCCHSCCS 11,018 $5,877 $64,752,7866 7,925 $5,877 $46,575,225 ORANGE COUNTY 21 NORTH CAROLINA 5 6 7 18 1 Slide #22 Provide Continuation Funding to Schools County Per Pupil Funding Amount History $7,060 SZ11 Increase from FY2024-25 $6,000 55,877 $5,666 $9,346 $5,060 $4,000 $3,868 $3,991 $4,165 $4,352 $4,367 $4,367 $3571 $2,957 53,069 $3,206 $3,096 $3,102 $3167 53,289 $3,000 - - 52,060 $1,000 $- .pp ,}tib13 ,itip pL5 X46 X11. ,,;tig g1a' gl0 a1ti ,yM1'4 X ,yM pry5 „y. t�16~ �,�ti �a�tiC ORANGE COUNTY 22 NORTH CAROLINA Z 3 4 Slide #23 Provide Continuation Funding to Schools CHCCS Per Pupil History with District Tax 59,000 53,217 $8,000 57,811 $7,061 $7,000 $S.769 55,990 $6,685 $6,329 ,362 56 606 54 684 SSA93 $5 060 $4,824 54,723 54,770 54,743 54f49' ■©!strict Tax Per Pupil $4,000 _ - _ _ - €quivaient $3,000 ■Courcy Per Pupil $2,606 $1,000 S- FY2007-M FY2009.10 FY2011-12 FY2013-14 FY2015-16 FY2017-18 FY2019-20 FY2021.22 FY2023-24 FY2025-26 Rer. ORANGE COUNTY 23 NORTH CAROLINA 5 6 7 8 19 1 Slide #24 Provide Continuation Increase to Schools ^- Chapel Mill-Carrboro City Schools • Assumed teacher salary increase from the State—3% • State Senate initial teacher salary increase—2.3% • Also includes$485,399 in operating cost increases Chapel Hill-Carrbaro City Schools Continuation Request FY2025-26 Manager Add New District Tax Continuation Request Difference Recommended Revenue $64,752,786 $381,198 $66,949,681 ($1,815,697) Chapel Hill-Carrboro FY2025-26 Manager Add New District Tax Expansion Request Difference Recommended Revenue $64,752,786 $381,198 $73,990,181 ($8;856.197) GRANGE COUNTY 24 NORTH CAROLINA 2 3 Travis Myren said to fully fund the continuation request, it would be an additional .95 cents. 4 Commissioner Carter asked what day the county would need to know what the state's 5 plans are for salary raises to factor that into the continuation budget. 6 Travis Myren said they would not know in time to adopt the budget. 7 Chair Bedford said they often do not know until September or October. 8 Travis Myren said June 5, but it was unlikely that the state would have that information by 9 then. 10 11 Slide #25 Provide Continuation Increase to Schools — Orange County Schools • Assumed teacher salary increase from the State—3% • State Senate initial teacher salary increase—2.3% • Also includes$175,000 in operating cost increases Orange FY2025-26 Manager Recommended Continuation Request Difference $46,575,225 $46,780,376 ($205,151) Orange County SchoolsExpansion FY2025-26 Manager Recommended Expansion Request Difference $46,575,225 $49,055,746 ($2,480,521) �� ORAINGE CAROLINA 12 20 1 Slide #26 Investing in Employees — 2%Wage Adjustment-$1,797,292 • Applies to all employees an payroll as of June 30,2025 • Adjustment is also applied to merit awards and 401K contributions — Continuation of Merit Awards-$451,000 — Continuation of Step Program • Wage rate increases based on years of service • Applies to employees of Sheriffs Office, Emergency Services,Social Services Average annual percentage increase—2.1% — Increase in Retirement Contribution - $145,035 • 14.35%Q general government employees from 13.60% • 16.10% law enforcement officers from 15.10% 26 ORANGE COUNTY NOR- CAROLINA2 3 4 Slide #27 Investing in Employees — Increase in Health Insurance Costs-$1,308,285 • 6.5% rate increase for active employees — $809,475 cost increase • Pre-65 and Post-65 Retiree Coverage — Increase due to both rate increase and additional participants — $498,810 cost increase -- Increase in Dental Insurance Costs-$16,405 • 4%increase — Retention has Improved • Turnover Rate for 15.49% in FY2023-24 • Turnover Rate for 8.59% in FY2024-25 YTD ORANGE COUNTY 27 NORTH CAROLINA 5 6 Commissioner Carter congratulated the County Manager on decreasing the turnover rate. 7 8 21 1 Slide #28 Strategic Plan Alignment • Healthy Community Housing for All —increased funding — Mental Health Diversion Coordinator-continued — Longtime Homeowners Assistance program — CJRD Clinical Coordinator-continued — Emergency Housing Assistance program — Crisis Response Community EMT-continued — Housing Choice Voucher program — Sheriffs Office Social Worker-continued — Expanded Cold Weather Cot Program — Medical Defense Course for Emergency Services — Increase in Aging and DSS In-Home Care 28 ORA HECOUN TY NOR-2 3 4 Slide #29 Strategic Plan Alignment • Diverse and Vibrant Economy Environmental Protection and — Expanded Arts Commission Climate Action programming — Variety of investments in Capital Investment Plan • Public Education/Learning — Facilities Technician for facility life safety checks Community — Planning and design funds for school replacements — New continuation funding for school districts — Southern Branch Library operations ORANGE COUNTY 29 NORTH CAROLINA 5 6 7 22 1 Slide #30 Budget Consideration Schedule FY2025-26 Budget Consideration Schedule May 13 Budget Public Hearing—Southern Human Services;Chapel HIII May 15 Work Session • Education • Outside Agencies May 22 Work Session • Fire Districts • Public Safety • Human Services • County Manager's Office May 27 Work Session • Support Services • General Government Community Services Departments of Social Services and Emergency Services May 29 Budget Public Hearing—Whitted Building;Hillsborough June 5 Work Session Resolution of Intent to Adopt. June 17 Business Meeting • Adoption of FY2025-26 Operating Budget and Capital Budget ORANGE COUNTY 3e NORTH CAROLINA 2 3 4 Slide #31 Questions? ORANGE COUNTY NORTH CAROLINA 5 6 Commissioner McKee asked what made up the $17.4 million increase that was described 7 in the County Manager's message in the budget document. 8 Travis Myren said that includes what is recommended here plus the 2.5% natural growth 9 rate. 10 Commissioner McKee asked how this plays into the shortfall. 23 1 Travis Myren said that federal reductions are unknown at this time and are not included in 2 the budget. 3 Commissioner McKee asked for clarification on how they could stay revenue neutral if 4 they were to lose $5 million sales tax. 5 Travis Myren said that the rate increase only applies to $9 million of the $17 million 6 increase. He said there is 2.5% of natural growth included in the revenue neutral and that is $8 7 million. 8 Commissioner McKee asked if that covers the $17 million. He said he is trying to get to 9 where they land on the pennies per hundred rate. He said it has to be more than 2.9 because 10 they cannot cover the $5 million shortfall with that. 11 Travis Myren said they are not budgeting for a shortfall of$5 million and it is $765,000. He 12 said that is the amount they are anticipating. He said they will make up the deficit but will not grow 13 above what is budgeting. 14 Chair Bedford said that the Chief Financial Officer gives quarterly updates on sales tax 15 revenue, and they have monthly amendments in case of need. 16 Commissioner McKee said that his concern is they can only raise the tax rate one time 17 per year. 18 Chair Bedford said that if needed they can look at hiring freezes and further reductions in 19 travel among other items for cuts or even use fund balance. 20 Commissioner McKee said that fund balance is not a fix for reoccurring expenses. 21 Chair Bedford agreed and said that is why it would have to be addressed in the next 22 budget. 23 Commissioner Fowler asked if they know the effect of tariffs. 24 Travis Myren said they would not know until July. 25 Chair Bedford asked if staff is looking into plans to prepare. 26 Travis Myren said there are some positions that would go away, but should they set a tax 27 rate, and a federal reduction occurs post that rate setting, then they would have to make a 28 reduction in the budget to pay for that. 29 Commissioner McKee said he would like to make decisions ahead of time rather than wait 30 until after the fact. 31 Commissioner Fowler said that would mean either raising taxes or cutting positions now. 32 Commissioner McKee said he is concerned about the cumulative effect of tax rate 33 increases on residents. He said he would like plan earlier to make cuts. He expressed concerns 34 about residents that cannot pay them. 35 Commissioner Portie-Ascott said the budget process can be overwhelming and that the 36 amendment process can feel like it will not be enough to reduce the effect of tax rate increases. 37 She wondered if it is possible to make an impact. 38 Chair Bedford indicated that it is possible through the amendment process. 39 Vice-Chair Hamilton said that the amendment process can get the Board where they would 40 like to go. She said she is always looking for where they can be efficient and make cuts, but she 41 also considers the impact of the cuts on the community. She said the Board will have to be 42 prepared to meet after federal cuts are made to evaluate their impacts. She said the Board should 43 follow the process that is in place. 44 Commissioner Fowler expressed appreciation to the County Manager for his efforts in 45 minimizing tax rate increases. She said reducing the tax rate increase for county operations 46 would mean finding $3 million, and $1.5 million of the increase is for the Sheriff's Office. She said 47 that would mean penalizing departments that did not contribute to the increase. 48 Commissioner McKee said that there have been instances of where the county has 49 reduced expenditures, including to the schools. He said he would be making suggestions of where 50 to cut the budget. 24 1 Commissioner Carter gave an example of the impact of revaluation on tax increases for 2 residents, just at the revenue neutral rate. She said that the cumulative impact is a lot for 3 homeowners without a lot of resources. She gave examples of areas in the budget where she 4 would like to explore reductions. 5 Chair Bedford said in previous recessions or economically difficult times, schools were 6 able to use fund balances to reduce the impacts of reductions. She gave examples of areas 7 where services might need to be reduced as the Board prioritizes needs. 8 Commissioner McKee said that July is too late to reduce the tax rate. He said he wants 9 to plan for federal cuts now and create something that residents can live with. 10 11 5. Public Hearings 12 a. Public Hearing on the Financing of Various Capital Investment Plan Projects 13 The Board will conduct a public hearing on a financing contract for up to $78.0 million to pay for 14 capital investment projects and equipment for Fiscal Year 2024-25, and to approve a related 15 resolution supporting the County's application to the Local Government Commission (LGC)for its 16 approval of the financing arrangements. 17 18 BACKGROUND: This public hearing and adoption of the attached resolution marks the first 19 formal steps in the Board's approval of the County's annual financing for capital investment 20 projects and equipment, for both County and school purposes. County staff estimates that the 21 total amount to be financed this year will be approximately $78.0 million. It should be noted that 22 all of the projects and improvements to be funded were previously approved by the Board and 23 are already moving forward in development. 24 25 The law requires that the County conduct a public hearing on the proposed financing. A copy of 26 the published hearing notice is provided at Attachment 1. The notice of public hearing was 27 advertised in the News of Orange on April 16, 2025. 28 29 After conducting the public hearing and receiving public input, the Board is asked to consider 30 adoption of a resolution (Attachment 2). This resolution formally requests the required LGC 31 approval, makes certain "findings of fact" as required under the LGC's guidelines, and authorizes 32 County staff to continue the process. County staff has been in contact with the LGC staff, and 33 staff expects no issues in receiving LGC approval. 34 35 If the Board adopts the attached resolution, staff proposes to present a resolution to the Board 36 giving final approval of the financing plans at its Business meeting on May 20, 2025. County staff 37 expects to close the financing by the end of June. 38 39 COLLATERAL: In this type of County installment financing, the County secures its obligations to 40 the bondholders by a mortgage-type interest in some or all the property being acquired or 41 improved through the financing. The County plans to secure this 2025 financing through a pledge 42 of several County and school properties. County facilities expected to be included in the collateral 43 package include the Whitted Building, the Orange County Library in Hillsborough and Blackwood 44 Farm Park. 45 46 County staff is working with both school boards to finalize the list of schools to be used as 47 collateral. The following schools are under consideration: Ephesus Elementary, Culbreth Middle 48 (from Chapel Hill—Carrboro City schools), and (from the Orange County schools)Orange Middle, 49 New Hope, Pathways, and Orange High. The County has flexibility to release schools individually 50 from the financing lien if that becomes appropriate in the future. 51 25 1 Bondholders generally require that the County offer collateral equal to at least 50% of the loan 2 amount (for example, at least $5 million of collateral for a $10 million loan). The County expects 3 to offer collateral with a value equal to at least 100% of the loan amount.The prospective collateral 4 package has an approximate value of$160.0 million. 5 6 TARIFF ISSUE 7 The municipal bond market has experienced volatility due to rising concerns over new tariffs and 8 international trade tensions. These tariffs are causing uncertainty in the broader economy and 9 leading a few investors to re-evaluate their investment strategies. This has resulted in short-term 10 fluctuations in bond yields (interest rates). Staff is working with the County's financial advisors to 11 ensure the County remains well positioned for a successful June 2025 bond issuance. The 12 financing team will closely monitor this situation and will update accordingly if borrowing costs 13 become a material concern. Recent North Carolina bond financings appear to indicate a return to 14 stability. 15 16 Gary Donaldson, Chief Financial Officer, made the following presentation: 17 18 Slide #1 ORANGE COUNTY NORTH CAROLINA Series 2025Limited Obligation Bonds Spring Financing Resolution and Public Hearing Gary Donaldson,Chief Financial Officer May 6, 2025 19 20 21 26 1 Slide #2 Purpose ➢ Conduct Public Hearing for Limited Obligation Bonds pursuant to NC Statute Section 16OA-20 Close Public Hearing ➢ Obtain Board Approval of Resolution to Proceed with Filing Local Government Commission Application for Series 2025 Limited Obligation Bonds ➢ Funds our FY 2024-25 Capital Investment Plan through this Series 2025 Limited Obligation Bonds are secured by a Deed of Trust,with a security interest in various County and School facilities. > The Series 2025 Limited Obligation Bands will fund various County projects including: 1 Orange U-nay Schools 26.250 952 10 5-year Level DS r 1,665,255 2 CH-C City Schools 30,826,756 11 7-year Level DS 2,745.083 3 Total Schools 57,077,708 12 8-year Level 65 7.010.570 4 County TS(NonVehicle) 13,968,782 13 10-year Level DS 2,099165 5 County TS Vehicles(Fleet Services) 2.590.164 14 12 year Level DS 587.742 6 Total County Tax Supported 16,578.946 15 15-year Level Prin 3,831,642 7 Sportsplax 2.455.813 16 20-year Level Prin 58.760.553 8 Solid 4V­T.e 587-742 17 Total 76,700.209 9 Grand Total 76.700209 _ ORANGE COUNTY NORTH CAROLINA 2 3 4 Slide #3 FY 2025 Projects (1/3) Project Amount Debt Amortization B C 1 Orange County Schools 2 Prior Year and F'Y 2025 Project Requests Spent/Encumbered to Date 3 51009-RECURRING CAPITAL 2.519.760 8-year Level DS 4 51010-ROOFING PROJECTS 979,724 20-year Level Prin 5 51029-MECHANICAL SYSTEMS 447,101 20-year Level Prin. 6 51030-PAVING/PARKING 548.677 20-year Level Prin 7 51034-SCHOOL SAFETY/SECURITY 159,137 20-year'Level Prin 8 51045-DEFERRED MAINTENANCE 6.596,553 20-year Level Prin 9 Subtotal 11.250,952 p FY 25 Protects under Evaluation 15.000.000 20-year Level Prin .1 Total 826.250.952 2 CH-C City Schools .3 53023-DOORS.HARWARE GANOPIE 115.203 20-year Level Prin 4 53025-CLASSROOM IMPROVEMENT 60.152 20-year Level Prin .553026-ELECTRICAL SYSTEMS 343.776 20-year Level Prin 6 54DOG-ADA REQUIREMENTS 143,906 20-year Level Prin .7 54001-ABATEMENT PROJECTS 564.433 20-year Level Prin .8 54003-ENERGY EFFICIENCY 211.792 20-year Level Prin 9 54004-FI RE/SAFETY/SECURITY 922.000 20-year Level Prin '.0 54005-INDOOR AIR QUALITY 265.282 20-year Level Prin 1154006-MECHANICAL SYSTEMS 1.004.245 20-year Level Prin 12 54008-PARKING/PARKING 172.040 20-year Level Prin 13 54010-RECURRING CAPITAL 3.540,240 8-year Level DS '4 54012-ROOFING PROJECTS 1.108.701 20-year Level Prin '.5 54013-TECHNOLOGY 2.511.798 20-year Level Prin '.6 54020-STORMWATER MANAGEMEN 129.001 20-year Level Prim 17 54021-SUSTAINABILITY I NVESTMEN 77.195 20-year Level Prim \ � '854022-DEFERRED MAINTENANCE 19.657.000 20-year Level Prin ORANGE COUNTY r9 Total 530.826.756 ORARA NORTH CAROLINA 5 27 1 Slide #4 FY 2025 Projects (2/3) Pro(eot Amount Debt Amortization u I 1' 30 flaunty Tax Supported(Non-Vehlcle) 31 DePatartment 01 Envornment.AffliNaure,Parks and Recreation 32 Blackwood Farm Park 389.683 20-year L—i Pnn 33 Fi low Park Phase 2 675.993 20-year Level Prin 34 Perry HIIIS Mini Park 182.305 24yeaf LCvel Pn0 35 Neuse!Falls takes Rules Nutrients 137 607 20-y—Level Pin 36 Subtotal 1,385389 37 38 Asset M—gemalrt Servkes 39 CetlarGmve Comm.Center Flooring 163.000 20-yiar Lev el Prin 40 Fleat Services Slop 120.000 15-year Level Pin 41 Courtroom AudioVisual upgrades 154,919 8-year Laval DS 42 Elland Cheeks Communtty Center 161221 26yeaf Level Pin 43 Electrical Upgrades 250.573 20-yeaf Level Pin 44 F—dea 607,394 20-year Level Pnn 45 Building Safety 1,166.158 20-year Level Pin 46 Fxlllty Accessibility/Safety 343.856 20-yeaf Leve Pin 47 Fire Alarm HeplaOoment5 751,869 15-year Level Prin 48 Fuel Station 53240 20y'ear Level Prin 49 Generate.,Projects 506.749 15-year Lave)Pin 50 HVAC Projects 1,547 14015-year Level Pin Irl InFinlsn Rapl—ants 153.940 20-year Level Pin 52 Parking Lot Improvements 22273 20-year Level Prin 53 Plumbing Rapalrs 49,643 2Pyear Level Prin 54 Romina 79 446 2"ar Level Pnn 55 Subtotal 5,331,449 56 57 Emergency 5-- 5S BI-Directional Antenna(BDA)upgrade 761.953 El Level DS 59 Emergency Servleea Renewal Fund 950,570 10-yea,Level DS 6 0 Publk Safety 3onware Enhancement 2.099.165 8-year Level DS 61 Viper 1`1=1 Tower Constfuctlon 494.300 20-y—Level Prin 62 Sutrlotal 4,306A18 63 64 Daher Departments 65 Information Technologies-N 14-an 1,665,255 5-yea,t.evel D5 66 Affortlahle Housing Oa-bir er4 250,000 20-year Level Pnn ORANGE D�L E�1� 1�I�1 Ill 67 County Managers Difice-Sustilnabll 50,272 15-year Level Prin NORTH ICARy1�©/{L�JtI1V�JAI ' fie 2 69 Total 13.988.782 3 4 Slide #5 FY 2025 Projects (3/3) Project Amount Debt Amortization G H 1 70 County Tax Supported Vehicles(Fleet Services) 71 Animal Services 67,298 10-year Level DS 72 Asset Management Services 148,099 10-year Level DS 73 Transportation-Car Share 35,390 10-year Level DS 74 Criminal Justice Resource Departmer 39,835 10-year bevel DS 75 Dept.of Social Services 79,670 10-year Level DS 76 Emergency Services 1,930,826 10-year Level DS 77 Health 52,335 10-year Level DS 78 Library 39,835 1D-year Level DS 79 Planning 110,418 10-year Level DS 80 DEAPR 86,456 10-year Level DS 81 Total 2,590,154 82 83 Sportsplex 84 Sportsplex-Fire Systems 241,813 15-year Level Prin 85 Sportsplex Ice Rink 1,600,000 20-year Level Prin 86 Sportsplex Pool HVAC 614,000 15-year Level Prin 87 Sportsplex Total 2,455,813 88 89 Solid Waste 90 Vehicle/Equipment Replacements 587,742 12-year Level DS 91 Total $ 587,742 ORANGE COUNTY NORTH CAROLINA 5 28 1 Slide #6 FY 2025 Projects (Total) ProNet AmaVrR DeN AmartF4a[hn P.).. _.— ...Mprlb 1- I.Pp Pmpwal DeM AmprL¢etWn S Grange fou ySclmale 36 County Tax Sapparte@ Naro-V4Mclel 70 Caunly Tu Sxppertetl V.h—IF—Serxleeaj 2PoL11—ar 12025 Proven Ragp I—,i Eea'mberetl tp D- 31 DePp[aTmenr of En roman[.Ig,bkpre.Podia ar�J Fecrea+PPn 714n'mral Sarvbea 67.298 1":,Lever 05 951009-PECGRRING CAPITAL 2,5£9,]80 SyeavLLwl DS 32 Blackenbtl Farm Pafq 319.683 20 War 1,1111, 72 S, Panel Menapmenl8evvmee 141.099 111LLvbi DS 451010-RO--l-".1— 979,724 26Wer-.1 111, 33 PetrviewPork,Phase 2 175.993 20y Level P­ 737mrepsrlation-Car5tmm 35,390 lOWar level D5 661029-MECHAMIALSYSTEM9 44T,101 20year Laval Prin 34 Perry Hib Mini Pah 182.308 24y Laval Prin 74 C[Iminal luatiw R.—Dapartmar 39.835 l0yeer La vel DS 851030-1-ING/PARKING 548.677 2.1a1 LLvel Prin 35 Noun 1Falb LL M PNe4 N-- 13].10] -All LLval Pfln 75 Dept M S11118brvlees ]9.8]0 StrWar LLVeI QS T 61034-SCHOOLSAFEIY'/SEWRNY 159.137 2p-year level Prin 36 G_, Y,385,789 78 Fmer�nry Sent®s 1930.829 lOjearlevef DS 155045-DEFTER®MAINTEMPNCE 6.596,559 -1.LLwr Pfln 37 77 Xea1F 52.336 itryaer LLVbI DS 8 SUNPIaI 11,260.862 38 Assea Manapemen[Sarriees TB LBrary 39.636 101ear lava105 10 FV25 fYejeneurMer£valuebn 18000;000 X­LLxeVPrin 39 Cuter Grave Gamlrt Grates Fberteg 193 GPfl 1.—LLrel Prin 79 Pbnning 110,4]9 LLvbl OG 11 TPtel 326.250.862 40 Fkee Sarvicae Shpp 320,OW 15yaar Leval%In BP DEAFft 66.45G l0year levelm 41 CeunreemAutlw Wuel 111V ea 15-09]9 9vear-1M 91 T'elal 2,590164 13 Cxt Chy 9pMals 42 Epenp CTaekx Cpmmpnty Ca rater 101:221 20yaar LPva Frin 92 1353023-DOOR3.11AMNARECANOPIE —1. 20year level Prin 43 EbeVlcaf Bpgretlea 250578 20-War LLrol Prin 83 Sparteplea 1953025C1A98Rf10M IMPPCRMFNT 00,152 20-Wee Levet Prin 44 Feeatlo 907,394 20War level Prin 843pertepbx-Rre SWvema 241,SL9 15yeer level Prin 15 53026-ELECINICAI SYSIEMG 343.7/0 ZP-year laxal FKn P5 Bul&In/Safery 1166.160 20-yeas Leval Fxn 65 Sportap.lea Rln4 1.GOP.000 2Pyaar level Pon 1fi 54000-RDAPEQOIREMENI9 24390fi 26year LLnlPrin 48 FeeilBy Aeeesaltllltly/Safety 393.88fi 20Wer:uvcl Prin 363pPKeple.a Pool XVAC fi14.060 15ryear LewlPM 17 101- 5®a,p33. Zp-yxar Level Prin a]Fva Al—Replepamanb 751,889 16-yeaF' S]9pprbplm Tatpl Y.4S6.813 4154003-ENEBGYEPF10— 251792 2D"Af LLveV Rn 41 Fuel Sa[I4n 5&240 20War IS 19 54004-FlRE/9AFETT/SECURRY 922000 2",LLvef Pon 49---j-je 608.749 )b-year 39 Snbn—1.2054005-INQOORAIRQU4IJTY 295,252 2bwar LLvel Nh 50 HVAC P.jJ 1.547.140 15- - 30 Ve 1N Fm011ann1 Repbumenta W.i42 12W,lnrbl OS 21 64000-M6CHANICALBYSTEMS 1,004,246 ZOjew levet Prin 51 lrrterier FnbT Repla®.mesa 163,840 2,;, - 91 T-1b 167 141 2254008-WMNG/PARRING 112,640 20-yeee Laxel Prin 52 PerMMg lM lmprewmema 22,273 20-}ear -- 23 64010-REC6RRING CMRAL 3b40;2. Byvar level DG 53 FWmbm/Repave 49,613 24 64612-ROOFING PR01EC15 1,100.]01 20y Level N1154 ReeRrM 73449 25540]9—NNOIf1GY --7. 20.War LLvel hh 55 Subfeul 839y449 2664020-5—MWATERMANPGEMEN 128001 26War level Prin 56 2754021-HIl9TAINA9NMINVfSTMEr, 77,195 zpyear LLnlPrin IS, m gency Services 2664022-DEFERRED MNNIENANCE 19,667,90q 29year Lewf Rln 666WNaNianpl pn[ennp IBDPVUp/ra0e 761.803 6yeer level DS 29 Tbtal 530929.798 59 Emerganry8 ..Renewal Funtl 950570 10yearLLw105 60 NO.Sahel9 ft-Enhaewmert 2,099.185 G'.Lawl DS 91 Vmav Patlb Tower Cbn4Vua0nn. 494.900 20year­1Prin 82 3ubt4tel 4,308,018 63 84 Other Oapemnenh 851Monnacipn TacM1rmbylas-Rlnfiaetri Y,885.256 6year Leval DS 66 A1/6Ma61a Rpuemg DewbRmenL 250.0w 2byear LLvel Nh 87 Caurrty Manage 0lixe-Surtainebil 50,272 1Eyaar Lexel Pim fib 69 dotal 13.809,762 �p�.. ORANGE COUNTY NORTH CAROLINA 2 3 4 Slide #7 Key Financing Terms ➢ Security Pledge-County Assets serve as Collateral and subject to Annual County Appropriations ➢ Maturity Term-5-20 Year maturities matches the useful life of the assets ➢ May 1 and November 1 Repayment Dates to Bank Trustee;First Interest Payment on November 1,2025 and First Principal Payment on November 1,2026,consistent with the Debt Model Estimated Interest Rates- Between 4.5%-5.5%subject to market conditions ➢ Series 2025 Limited Obligation Bonds Maximum Annual Debt Service estimated to be$8.63 million in FY 2027 ➢ Source of Repayment-Property Taxes,Solid Waste Fees and Sportsplex Fees ➢ Limited Obligation Bonds are Subordinate Lien to AAA General Obligation Bonds ➢ Current Limited Obligation Bonds-Aal/AA+/AA+from Moody's,Standard&Poor'sand Fitch Ratings ORANGE COUNTY NORTH CAROLINA 5 29 1 Slide #8 LOB Collateral Overview ➢ Security Pledge- County Assets serve as Collateral and subject to Annual County Appropriations ➢ Lenders generally require that the value of the collateral be equal to at least 50%of the financing amount(for example, at least$5 million of collateral for a $10 million loan.) ➢ The Whitted Building,Orange County Library in Hillsborough and a variety of schools serves as the collateral which far exceeds the lender's requirements. ➢ Pursuant to the County's financing document,the County can continue to borrow money against this same collateral pool as longs as a meaningful portion of the amount financed is used to improve property in the collateral pool. ORANGE COUNTY NORTH CAROLINA 2 3 4 Slide #9 Debt Service Model Metrics All CIP Projects (Tax-Supported Debt) Debt Ratios 10-year Payout Debt to AV DS to GF Revenues 2025 64.81% 1.49% 11.82% 2026 62.70% 1.30% 10.56% 2027 60.31% 1.56% 12.86% 2028 58.91% 1.84% 14.19% 2029 61.35% 1.84% 16.92% 2030 63.28% 1.67% 18.49% 2031 64.13% 1.67% 18.60% 2032 62.20% 1.86% 18.45% 2033 64.79% 1.74% 19.51% 2034 67.15% 1.51% 20.20% 2035 99.68% 1.38% 18.93% '*�� ORANGE COUNTY NORTH CAROLINA 5 30 1 Commissioner McKee said that in 2034 the county will pay 20.20% of the General Fund 2 budget towards debt service. He said this feels like the federal government, and they can do it, 3 but the county cannot. 4 Vice-Chair Hamilton said that the debt payment will be used to pay the bond which was 5 approved to invest in schools. She said that these kinds of investments are intended to improve 6 efficiency on the operational side. 7 Commissioner McKee said he was using the federal government as an example of 8 inefficiencies. 9 Vice-Chair Hamilton said that it is a different situation and should not be used as a 10 comparison to the county budget. 11 Commissioner McKee said he only used that as a reference because in 2034, the county 12 would be paying 20% toward debt service. 13 Vice Chair Hamilton said that might be fine because they may be making investments that 14 will reduce that. She said they also have the power to make budget amendments to change what 15 is going into the capital side. She said they can decide as a board to make the changes. 16 Commissioner McKee said that he does not exempt himself for voting for things the last 17 15 years that have gotten them to where they are. He said it is a cumulative thing. He said that 18 there is a point where they will reach a tipping point of where they are paying so much for the debt 19 service that they have to cut back on actual services. 20 Commissioner Fowler said the debt to assessed value is safely under the rate of 3% and 21 on the revenue side, she appreciates the pay-go because it helps provide the revenue side. She 22 said if it is converted to debt, it will not help these numbers. She said that it may be doable at half 23 and half, but she said it is important because it helps the debt service to general fund revenue 24 ratio. 25 Chair Bedford said this is why diversified revenue sources and commercial developments 26 are helpful. 27 Commissioner Fowler said it helps in some ways and in other ways it makes the problem 28 worse. 29 30 Slide #10 Questions ORANGE COUNTY NORTI I CAROLINA 31 32 33 A motion was made by Vice-Chair Hamilton, seconded by Commissioner Fowler, to open 34 the public hearing. 35 36 VOTE: UNANIMOUS 31 1 PUBLIC COMMENTS: 2 There was no one signed up to speak. 3 4 A motion was made by Commissioner McKee, seconded by Commissioner Fowler, to 5 close the public hearing. 6 7 VOTE: UNANIMOUS 8 9 A motion was made by Vice-Chair Hamilton, seconded by Commissioner Fowler, to adopt 10 the resolution supporting the application to the Local Government Commission for approval of the 11 financing. 12 13 VOTE: UNANIMOUS 14 15 Commissioner Portie-Ascott asked what the strategy is for offering more collateral than 16 what is required. 17 Gary Donaldson said 50% is the threshold for the test. He said there is a bond financing 18 of $80 million, so the test is having collateral of $40 million. He said there is more than enough 19 capacity. 20 Commissioner Portie-Ascott asked if they are offering 100% of what they are borrowing 21 as collateral. 22 Gary Donaldson said the collateral package is $160 million but the test is 40%. He said 23 that he is showing the collateral package and that includes prior debt. 24 Chair Bedford said that it includes private debt. 25 26 6. Regular Agenda 27 a. Opioid Advisory Committee Settlement Fund Use Recommendations 28 The Board received an update on the Opioid Advisory Committee (OAC); received OAC 29 recommendations for use of Opioid Settlement Funds that support Option A of the NC 30 Memorandum of Agreement on the Allocation and Use of Opioid Settlement Funds in North 31 Carolina; and directed staff to present a final spending authorization resolution at the Board's May 32 20, 2025, Business meeting. 33 34 BACKGROUND: In July 2021, a bipartisan coalition of state attorneys general announced the 35 National Opioid Settlement — a historic agreement that provides desperately needed help to 36 communities harmed by the opioid epidemic. The State of North Carolina and all 100 counties, 37 including Orange County, joined the agreement. North Carolina is receiving $1,420,932,713 in 38 opioid settlement funds from 2022 through 2038. Orange County is expected to receive 39 $12,748,445 over an 18-year period. 40 In September 2022, the BOCC approved the appointment of the Orange County Opioid Advisory 41 Committee with the following charge: 42 • Discuss opioid-related health concerns and issues impacting the residents of Orange 43 County. 44 • Advise the Board of Commissioners on options to expend funds to prevent opioid abuse 45 and remedy opioid impacts. 46 • Plan and host an annual meeting open to the public to receive input on proposed uses of 47 the settlement funds and to encourage collaboration between local governments. 48 The Board also voted to follow Option A for the use of the settlement funds per the NC 49 Memorandum of Agreement Opioid Settlement. Between Summer 2022 and Summer 2024, 50 Orange County spent $376,438 to address eight (8) of the following Option A Strategies: 51 • Collaborative Strategic Planning 32 1 • Evidence-based addiction treatment 2 . Recovery support services 3 • Early intervention 4 • Naloxone distribution 5 • Post-overdose response team 6 • Syringe Service Program 7 • Reentry Programs 8 The 2025-2026 Opioid Settlement Fund Proposal process began January 1, 2025, with the 9 availability of applications.A copy of the application is attached, along with the application scoring 10 rubric. Four (4)Application Workshops were conducted with both in-person and virtual options. 11 Technical assistance was provided to applicants during the request for proposals (RFP) process. 12 Fourteen (14) community applications were received by the deadline — February 21, 2025. 13 14 The Funding Subcommittee of the OAC reviewed applications and made recommendations to the 15 full OAC. On March 24, 2025, and April 14, 2025, the OAC discussed the Subcommittee 16 suggestions and voted to approve the five (5) following funding recommendations: 17 18 • Piedmont Health —$50,400 19 • EI Futuro—$50,000 20 • Freedom House — $72,000 21 • UNC SHAC — $37,600 22 . Reintegration Support Network— $20,000 23 24 The proposals for these five (5) applications are attached. All fourteen (14) community 25 applications and the applications scorecard are available on the Opioid Settlement Funds 26 webpage at: https://orangecountync.gov/2998/Opioid-Settlement-Funds. 27 28 Quintana Stewart, Health Director, made the following presentation: 29 30 Slide #1 ORANGE COUNTY! NC OPIOID ADVISORY COMMITTEE (OAC)_ Orange County Board of County Commissioners May 6, 2025 31 33 1 Slide #2 QVC: Memorandum of Agreement (MOA) • The MOA governsthe allocation,use,and reporting of certain opioid settlement funds in North Carolina. • To comply with the MOA,a local government receiving opioid settlement funds must do the following: • A.Establish a fund.A local government receiving opioid settlement funds must secure them in a special revenue fund.These funds are subject to audit and cannot be commingled with other funds. • B.Authorize s endin Before spending opioid settlement funds,a local government must authorize the expenditure of such funds.This must take place through a formal budget or resolution that includes certain details including the amount,time period,and specific strategy funded. • C.Understand and followthe options.A local government must spend opioid settlement funds on opioid remediation activities authorized under Option A or Option B as detailed in the MOA. • R.Report spending and impact.A local government that receives, spends,or holds opioid settlement funds during a fiscal year must file an annual financial report within go days of the end of the fiscal year.(This report is required if funds are received or held,even if they are not spent.)A local government that spends opioid settlement funds during a fiscal year must file an annual impact report within go days of the end of the fiscal year. • E.Hold annual meeting.The MOA requires that each county receiving opioid settlement funds hold at least one annual meeting open to the public,with all municipalities in the county invited to the meeting.The purpose of the meeting is to receive input from municipalities on proposed uses of the opioid settlement funds and to encourage collaboration between local governments. https:11ncdoi gov/wp-content/uploads/2o22/o3lNCACC-web-version-Final-Opioid-MOA-.pdf 2 3 4 Slide #3 Caption A- High-Impact Opioid Abatement Strategies-i.Collaborative Strategic Planning 2.Evidence-based addiction treatment 3.Recovery support services 4.Recovery housing support s.Employment-related services 6.Early intervention 7.Naloxone distribution 8.Post-overdose response team g.Syringe Service Program 3o.Criminaljustice diversion programs ,ii.Addiction treatment for incarcerated persons -iz.Reentry Programs https://www.morepowerful nc.org/wp-content/uploads/202-1/10/Exhibit-A-to-NC-MOA-3_Pdf 5 6 7 8 34 1 Slide #4 Orange County Opioid Advisory Committee Charge 0 Discuss opioid-related health Advise the Board of Plan and host an annual concerns and issues impacting Commissioners on options to meeting open to the public to the residents of Orange expend funds to prevent receive input on proposed uses County; opioid abuse and remedy of the settlement funds and to opioid impacts; encourage collaboration between local governments. 2 3 4 Slide #5 Change County is receiving$12,748,445 in opioid settlement funds from 2022 through 2038. !Past fiscal year payment ■Current fiscal year payment *Future fiscal year payment Sim Sim SMK S660K S890K S810K s7sok S;a7 S52uK S540 [c-,,,. SSou 'I S420K S30f1K 53WK LL LL u u LL LL ri LL - t LL .� j - PAYMENT TIMETABLE HTTPS;IINCOPIOIDSETTLEMENT.ORGrTRENDSIPAYMENT-SCHEDULEI 5 6 7 35 1 Slide #6 2025-2026 Opioid Settlement Fund Proposals Process • Applications for the 2025-2026 Opioid Settlement Funds became available January 1, 2025. • Application Workshops were offered; •January 61h and 15th-whitted Human Services, Hillsborough, NC •January 91h& 14th-Southern Human Services,Chapel Hill, NC • Open Question Period • February 3rd—14th,2025 • Frequently Asked Questions(FAQs)posted online and updated • February 21, 2025, 5 p.m.-Appiications Due via Email to Harm Reduction Coordinator, Tonya Stancil. • March-April 2025-QAC Funding Subcommittee review applications • May 2025-Funding Recommendations presented to BOCC • July 1, 2025-Awarded Contracts begin 2 3 4 Slide #7 Funding Proposal Application • Agency General Information • Proposal Summary(required but not scored) • Project Narrative(16 points) • Project Description&Program Sustainability(28 points) • Equity Impact(8 points) • Organizational Readiness(20 points) • Evidence of Collaborative/Partnerships(io points) • Performance Measures&Program Evaluation(18 points) • Supporting Documents Included;. • Letters of Commitment and/or Support (Up to 5 letters) • Latest Audited i Financial Statements,including Management letter(Attach letter of explanation if unable to provide) • Documentation of Tax Identification Number(can be IRS Determination Letter for non-profit agencies) • Certificate of Insurance • Non-Profit Agencies -IRS Determination letter,Verification of 501(c)(3)status form,990 Form Tax Form,Board of Directors Roster • For-Profit Agencies—Board of Directors Roster,Agency org Chart,IRS Tax Form used for latest fiscal year filing 5 6 7 8 36 1 Slide #8 SubcommitteeCriterion Discussion Criterion 3b:"Well-planned activity that is likely to lead to the .�. .•-rt- —..�_ intended opioid-related impacts,based on the evidence base ---�-.,-�- � about strategy andJoractivity effectiveness for the prioritized __ �..... .,.... .. population The"priority population"as defined for this purpose: � Selective and indicated populations(IOM terminology,for an explanation see*betow)at high risk for opioid abuse,or .,_...�....�.•^` already manifesting signs and symptoms of abuse ° ^^� •-^ Populationsactivelymisusing opioids,forwhorndrug � treatment,with or without short term or extended MAT,is appropriate Harm reduction supplies and approaches,.including .•,a..�..�.... ......... naloxone distribution Users in recovery seeking ongoing support 2 3 Quintana Stewart described the process for evaluating applications. She said that the 4 scorecard was not made available ahead of time on the county website, and she said that in the 5 future it would be. 6 7 Slide #9 Opioid Settlement Fund Applications (14) Appocations irecelved 1} Carpe Diem ($25,000) 8) Hillsborough Treatment Center($200,000) 2) C.E.C.Analytics ($35,233.40) 9) Oxford House ($40,000) 3) EI Futuro($74, 11$.29) 1o) Piedmont Health ($50,400) 4) Fathers on the Move ($20,000) 11) Recovery Support Network ($20,x26) 5) Freedom House ($144,926.1o) 12) Student Against Destructive Decisions 6) Grow Your World ($132,035.35) (SADD) ($600,000) 7) High Impact Opioid Abatement 13) Student wellness{$114, 906.24} ($44,076) 14) Student Health Action Coalition (SHAC) (s196,047) 8 9 10 37 1 Slide #10 Funding Recommendation: • Option A,Strategy 2(Evidenced-based addiction treatment) • Funding Period—July 1,2025—June 30, 2026 • Funding request—$50r400 • Funding recommendation—$50,400 • Description of Activity— Piedmont Health Services, Inc.(PHS)will use Orange Co.High Impact Opioid Abatement Strategies funding in order to provide Medication for Opioid Use Disorder(MOUD)services at no costto a total of 36 new patients in our two Orange County locations(Carrboro and Chapel Hill). As all MOUD recipients will have a diagnosis of Opioid Use Disorder,they will represent a population which faces many barriers to care, including cost of care,transportation,and stigma. Additionally,the majority of PHS patients represent low-income,uninsured,unhoused,and other historically marginalized populations. MOUD program provides support in managing cravings,reducing withdrawal symptoms and preventing relapse into active addiction. Services provided at no cost to patients. 2 3 4 Slide #11 Funding Recommendation: • option A,Strategy 6(Early Intervention) • Funding Period—July 1, 2025—June 30,2026 • Funding request—$74,115,29 • Funding recommendation--$50,000 • Description of Activity EI Futuro respectfully requests support to im lement its Oranqqe County Latino Early Intervention Program,expanding Communi y Mental HealthWorker's(CMHW)capacity to prevent and address substance use disorder(SUD)and co-occurring mental health conditions among historically marginalized Latino individuals in Orange County.Strengthening early intervention efforts,reducing stigma,and strengthening community coordination will improve outcomes for Latino youth,young adults,and their caregivers. :This initiative will train CMHWs in Screening, Brief Intervention and Referrall to Treatment(SBIRT)and Motivational Interviewing(M I)to strengthen early intervention efforts and expand access to culturally and linguistically appropriate services. 5 6 7 8 38 1 Slide #12 Funding Recommendation: Freedom House • Option A,Strategies:Lo(Criminal Justice Diversion Program) • Funding Period-July-1, 2025-June 30,2026 • Funding request-$144,926.3.o • Funding recommendation-$72,000 • Provider-Freedom House Recovery Center • Description of Activity- Freedom ctivity-Freedom House connects with individuals screened in the Orange County Detention Center who have a history of Opioid Use Disorder. The Peer Support Spec ialistassists individuaIswith getting to treatment,court appearances,linkage to community resources and other needs to curb recidivism. Funds would cover salary/benefits,cell phone service,mileage and training for a Peer Support Specialist. There is also indirect costs(office supplies&space,clinical supervision,financial oversight, assessment software licensing,insurance)totaling$$,577. Position formerly funded Opioid Settlement funds 2023-2025- 2 3 4 Slide #13 Funding Recommendation: UNC SHAC • Option A,Strategy 9(Syringe Support Program) • Funding Period-July-1,2025-June 30, 2026 • Funding request-$-196,047 • Funding recommendation-$37,600 • Description ofActivity- UNC SHAG is a harm reduction-based organization providing sterile injection supplies, fentanyl and xylazine test strips, also provides referrals to other social and health services for people who use drugs in Orange County. .Seeking funds for Syringe Support.Proqram(SSP)supplies, educational materials, marketing, travel, and continued funding for paid Program Navigator position.. Desire to open a new SHAC SSP location to increase SSP access,current distribution occurs at Interfaith Council for Social Service and University Methodist Church Hillsborough Pharmacy assists with storage needs y Formerly funded Opioid Settlement funds 2023-2025. 5 6 7 8 39 1 Slide #14 Funding Recommendation: Reintegration Support Network (RSN) • Option A,Strategy 6(Early intervention) • Funding Period—July i, 2025—lune 30, 2026 • Funding request—$20,026 • Funding recommendation—$20,000 • Description ofActivity— . Seeking support for additional mentor trainers to work with youth and emerging adults (ages 13-20)navigating substance use, mental health challenges,and/orjustice involvement. :Mentors serve as allies and peer support workers, and often have personal experience with substance use, mental health challenges,andlorjustice involvement. Mentors receive comprehensive trainin to recognize and nurture youth strengths, Utilizing SAMHSA CORE Competencies recovery-oriented, person-centered, voluntary, relationship-focused, and trauma-informed practices), active listening skills,SMART goal setting, and motivational interviewing techniques. Recognizing the profound impact of poverty and social identities on the youth we serve, RSNN_is committed to addressing the root causes of inequity through culturally responsive and person-centered services. 2 3 4 Slide #15 Next Steps: OAC to finalize funding recommendationsBOCC Funding recommendations presented to :O We have been granted upto$230,000 for community grants, s30,000 more than initially allotted. notifyBOCC decides on final funding decisions. OCHD Staff grant awardeesand work on r explainedContracts to be completed and reporting requirements to grantees by July 1, 2025. 5 6 7 40 1 Slide #16 0 2 3 Commissioner Carter referred to slide #5. She asked how the current year funding of$1 4 million is allocated, and if the $230,000 is part of that $1 million. 5 Quintana Stewart said that was correct. She said $230,000 is for community grants, and 6 the remaining funds will support county based opioid programs. 7 Chair Bedford asked the Clerk to the Board to provide the background information on 8 when that allocation was decided by the Board of County Commissioners. 9 A motion was made by Commissioner Fowler, seconded by Commissioner Greene, to 10 approve providing opioid settlement funds to the groups in the amounts specified as listed in the 11 agenda materials and presentation. 12 13 VOTE: UNANIMOUS 14 15 7. Reports 16 None. 17 18 8. Consent Agenda 19 20 • Removal of Any Items from Consent Agenda 21 • Approval of Remaining Consent Agenda 22 . Discussion and Approval of the Items Removed from the Consent Agenda 23 24 A motion was made by Commissioner McKee, seconded by Vice-Chair Hamilton, to 25 approve the consent agenda. 26 27 VOTE: UNANIMOUS 28 29 a. Minutes 30 The Board approved the draft minutes for the March 11, 2025, March 18, 2025, and March 27, 31 2025 BOCC Meetings as submitted by the Clerk to the Board. 32 b. Motor Vehicle Property Tax Releases/Refunds 33 The Board adopted a resolution to release motor vehicle property tax values for five (5) taxpayers 34 with a total of seven (7) bills that will result in a reduction of revenue. 35 c. Property Tax Releases/Refunds 36 The Board adopted a resolution to release property tax values for eight (8) taxpayers with a total 37 of ten (10) bills that will result in a reduction of revenue. 38 39 41 1 d. Older Americans Month Proclamation 2 The Board approved a proclamation joining Federal and State governments in designating the 3 month of May 2025 as Older Americans Month and a time to honor older adults for their 4 contributions to our community. 5 e. Provider Appreciation Day Proclamation 6 The Board approved a proclamation designating May 9, 2025 as Provider Appreciation Day in 7 Orange County. 8 f. Board of Health (BOH) Resolution Addressinq Social Media Use, Screen Time, and 9 Mental Health 10 The Board: 11 1) Recognized social media use among youth as a significant public health concern and 12 mental health risk as detailed in the attached resolution from the Orange County Board of 13 Health; and 14 2) Expressed support for countywide recognition of "Screen Free Week" during May 5-11, 15 2025. 16 g. Approval of Amendments to the Orange County Board of County Commissioners 17 Advisory Board Policy 18 The Board approved amendments to the Orange County Board of County Commissioners 19 (BOCC) Advisory Board Policy (Advisory Board Policy) as requested during the policy review 20 discussion at the Board's Business meeting on March 18, 2025. 21 h. Renewal of County's Lease of 1000 Corporate Drive, Hillsborough for the Orange 22 County Attorney's Office 23 The Board approved an amendment to a lease agreement for the County to continue leasing 24 space for the Orange County Attorney's Office at 1000 Corporate Drive in Hillsborough, and 25 approve and authorize the Manager to sign the lease renewal upon final review by the County 26 Attorney. 27 L Sale of 0.26 Acre Property, PIN #9862246076, Hillsborough, NC 28 The Board approved the sale of a 0.26-acre County-owned property, PIN #9862246076, located 29 in Hillsborough, NC. 30 j. Acceptance of the Sobriety Treatment and Recovery Teams (START) Grant with the 31 North Carolina Department of Health and Human Services and Approval of Related 32 Budget Amendment #8-B 33 The Board: 34 1) Accepted a grant from the North Carolina Department of Health and Human Services; 35 2) Established a clinical services coordinator position; 36 3) Authorized services contracts for a family mentor position and related supervision; and 37 4) Approved Budget Amendment#8-B. 38 k. Approval of Contract with Vaco, LLC for Fiscal and Accounting Fractional Support 39 The Board: 40 1) Approved the County entering into a contract with Vaco; LLC for Fiscal and Accounting 41 support at a cost of$45,000; and 42 2) Authorized the County Manager to execute the contract, subject to final review by the 43 County Attorney. 44 I. FY 2024-25 Apricot Case Management Software Services Contract Renewal 45 Amendment 46 The Board approved and authorized the Manager to sign the FY 2024-25 Social Solutions Global, 47 Inc. (d/b/a Bonterra) year three contract renewal amendment for Apricot Case Management 48 Software Services. 49 m. Change in BOCC Meeting Schedule for 2025 50 The Board approved changes to the Board of Commissioners' meeting calendar for 2025. 51 42 1 9. County Manager's Report 2 Projected May 13, 2025 Budget Public Hearing and Work Session Items 3 Budget Public Hearing 4 Review of Upcoming Boards and Commissions Appointments 5 6 Projected May 15, 2025 Budget Work Session Items 7 Education 8 Outside Agencies 9 10 Travis Myren had no updates. 11 12 10. County Attorney's Report 13 John Roberts said it was crossover deadline week at the General Assembly, so if a bill has 14 passed either chamber it can be discussed by the other. He said House Bill 765 has been 15 amended and is not nearly as negative for counties as the previous version. 16 17 Commissioner Fowler said that House Bill 519 about patient confidentiality for youth was 18 also passed over to the Senate. 19 20 11. *Appointments 21 None. 22 23 12. Information Items 24 • April 15, 2025 BOCC Meeting Follow-up Actions List 25 • Tax Collector's Report— Numerical Analysis 26 • Tax Collector's Report— Measure of Enforced Collections 27 • Tax Collector's Report— Foreclosure Chart and History 28 • Tax Assessor's Report— Releases/Refunds under $100 29 • Memorandum — Upcoming Trails Plan Community Visioning Sessions 30 • March 2025 Child Care Subsidy Monthly Report 31 32 13. Closed Session 33 None. 34 35 Adjournment 36 37 A motion was made by Vice-Chair Hamilton, seconded by Commissioner Fowler, to 38 adjourn the meeting at 9:40 p.m. 39 40 VOTE: UNANIMOUS 41 42 Jamezetta Bedford, Chair 43 44 45 Recorded by Laura Jensen, Clerk to the Board 46 47 Submitted for approval by Laura Jensen, Clerk to the Board