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HomeMy WebLinkAboutMinutes 05-13-2025-Budget Public Hearing/Work Session 1 APPROVED 718125 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS BUDGET AND CAPITAL INVESTMENT PLAN PUBLIC HEARING AND WORK SESSION May 13, 2025 7:00 p.m. The Orange County Board of Commissioners met for a Budget and Capital Investment Plan Public Hearing and Work Session on Tuesday, May 13, 2025, at 7:00 p.m. at the Southern Human Services Center in Chapel Hill, NC. COUNTY COMMISSIONERS PRESENT: Chair Jamezetta Bedford, Vice-Chair Jean Hamilton, and Commissioners Marilyn Carter, Amy Fowler, Sally Greene, Earl McKee, and Phyllis Portie- Ascott COUNTY COMMISSIONERS ABSENT: None. COUNTY ATTORNEYS PRESENT: John Roberts COUNTY STAFF PRESENT: County Manager Travis Myren, Deputy County Manager Caitlin Fenhagen, and Deputy Clerk Tara May (All other staff members will be identified appropriately below) Chair Bedford called the meeting to order at 7:00 p.m. All commissioners were present. 1. Opening Remarks Chair Bedford read the public charge and explained the process for making public comments. 2. Presentation of the County Manager's Recommended FY 2024-25 Budget County Manager Travis Myren made the following presentation: Slide #1 E ORANGE COUNTY NORTH CARC3LYNA FY2025-26 Operating Budget Public Hearing May 13, 2025 Board of Orange County Commissioners 2 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 B. Align Budget Investments with Strategic Plan Goals ORANGE H�,A [N�k COUNTY Slide #3 Revenue Neutral Tax Rate Property Tax Base X Property Tax Rate = Property Tax Levy Property Properly $33,254-442,655 .006264 $208,306,757 Or...62,64 cents per$100 of Assessed Value Breakeven percentage increase in value is just below 38% ORANGE COUNTY 3 NL31Zi-H 4;AR��LiNA 3 Slide #4 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 @ $500,000=$14T50 [aunty Tax Rate History 19o-no Orange Bars=Reaaluabon Years lmaa �.ao- ae.m g.m er.m as.7s �3> a3aa ao.00 7AA0 a 1.00 24.00 0 00 FRW� M000 n2aP MM MUM MKV mmi MM2 M01 MP MK5 F G F 7 MKO Ma19 MMD F 3 F 2 MW3 M0 F 1 R M Rec Slide #5 Fire District Tax Rates • Ten of Twelve Fire Districts Requested Tax Rate Increases !25 Tax Rn I* Revenue Neutial Rat* PY 2026 Request !! !!! Revunue Neutral pet Year CEDAR GROVE FIRE 9 w 6.54 754 1 w M.00 CHAPEL HILL FIRE 18.87 10.70 11.50 0.71 $25.40 DAMASCUS FIRE 1280 9.79 1020 041 $15.44 EFLAND FIRE 10.N 7.3e. a 38 1.00 M.00 ENO FIRE 11.9e. 8.71 8 71 LITTLE RIVER FIRE 7.N 5.35 5 35 EW HOPE FIRE 1384 10.15 1250 235 n4.00 RANGE RURAL FIRE 11.40 6.21 9 21 1 w $40.00 RANGE GROVE FIRE 8 27 5.81 700 + 1 19 $47.60 SOUTH ORANGE FIRE 9 09 6.67 e 17 _ 1.50 W.00 SOUTH TRIANGLE FIRE 12 80 8.75 1020 1 45 $55.00 k,HITE CRO-SS FIRE 13 84 10.30 14 00 8.70 $148.00 ORANGE COUNTY 5 110L3RTl3 C:ARi311NA 4 Slide #6 Strategies to Minimize Tax Rate Increase Department budgets held at or below base budgets (16 of 27 departments) r Transition General Fund expenses to other funding sou roes (5176,084) A 10°Io reduction to training and travel ($38,040) A Eliminate four (4) vacant positions (5188,077) A Charge administrative overhead to Sportsplex and Arts Commission ($215,562) A Charge Special Tax district for collecting and remitting taxes ($135,000) Add four (4) positions to reduce expenses or generate revenue ($395,447) F: ORAR c:"H n NGE U1kN } Slide #7 Strategies to Create Budget Flexibility No budgeted salles tax growth from FY2024-25 Budget No budgeted growth in Register of Deeds revenue Increase Social Justice Fund - 550,102 Reduce Appropriated Fund Balance - $31,233 ORANGE COUNTY 7 110L3RTH C:ARi311NA 5 Slide #8 Funding to Maintain Social Safety Net $24,000 increase in Longtime Homeowners Assistance program $70,000 increase in Emergency Housing Assistance program through reallocation $25,000 increase in Partnership to End Homelessness Budget to Continue Cold Weather Cots $100,000 increase in Department of Social Services In Home Aide and $40,204 in the Aging In- Home Respite program $62,000 in Master Aging Plan Balance to Urgent Repair Program $40,000 Increase for Vaccine Supplies in the Health Department as Pandemic Grants Expire ORAR c:"H n U1kN } Slide #9 Continuation Funding to Schools Total Recommended School District Funding FY2024-25 FY2025-26 $ Difference %Increase Approved Recommended Current Expense $108,090,282 $111,328.D11 $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 Genera Fund Revenues Dedicated to f4-12 Education Total School Funding Rec. $145,550,132=47.9% Total General Fund Revenue $304,784,697 ORANGE COUNTY 9 110C3RTH C:ARf311NA 6 Slide #10 Continuation Funding to Schools County Per Pupil Funding Amount History S7}i brcr�rar hcw fY9D8LA6 55�7J 56A� prri,5 �3,3i6 $6,N9 & G8 $3,431 $d 165 $4�52 $1,367 '$4.M7 $2,957 $3A� $VW $a.WE. $3,162 $3,167 ,43,Z69 SaA� Sa.ovo RAW S 4 11� ,~bit $~� �9 -.E � 41 � � � 1� � 16 ORANGE"H c:n COUNTY R Slide #11 Continuation Increase to Schools ChapelSchools FY2025-26 Manager Recommended Continuation Request Difference $65,133,98 $66,949,681 ($1,815,697) Orange County Schools FY2025-26 M an ager Recommended Continuation Request Difference $46,575,225 $46,780,376 ($205,151) ORANGE COUNTY 11 NURrH 4�AR£]L NA 7 Slide #12 Investing in Employees Y 2% Wage Adjustment - $1,797,292 r Continuation of Merit Awards - $451,000 i Increase in Retirement Contribution - $145,035 r Increase in Health Insurance Costs for Active Employees and Retirees - $1,30$r285 Increase in dental Insurance Costs - $16,405 ORANGE COUNTY NC7R1"H C.ARC?LJNA Slide #13 Strategic Plan Alignment • Healthy Community • Public Education/Learning Community — Behavioral Health & In-Home Aide Investments — Continuation and Capital Planning Funds • Housing for All • Environmental Protection and Climate — Programs to Maintain Housing Action — Capital Investments to Implement Climate Action • Diverse and Vibrant Economy Plan — Arts Commission Expansion ORANGE COUNTY 13 110L3RTH C kRi3L1NA 8 Slide #14 Budget Consideration Schedule FY2G25-26 Budget Consideration Schedule May 13 laudget Pubi ic Hearing—Southem Human Services;Chapel Hill May 15 Wank Session • Education • Outside Agencies May 22 Wank Session • Fire Districts • Public Safety • Human Services • County Manager's Office May 27 Work Seaslan Suppon Services General Government Community Services Depanmenrs of Social Services and Emergency Services May29 Budget Pubito Hearing—WhlttedBullding:Hillsborough June 5 INory(Seaskrrr Resolution of Intent to Adopt June 17 aus+ness meevng _ Adoptlon of Fy2c25-2e Operatlng Budget and Capital Budget ORANGE COUNTY 14 i~raRrH C.AxC3LJNA Slide #15 Questions' ORANGE COUNTY NL]RrH CIA ZC31A NA 9 3. Public Comments A motion was made by Commissioner McKee, seconded by Commissioner Fowler, to open the public hearing on the budget and capital investment plan. VOTE: UNANIMOUS PUBLIC COMMENTS: Brian Link asked the Board to allocate additional funds to schools. He said federal and state officials have not done what they should do for schools and urged the Board to fill the gap. He said they are $2 million short on continuation. He said he is thankful for the bond and for what the commissioners have done. He said when others do not step up, the Board can. He said there is a dialogue that the Board will be the backstop and they encouraged the school district to spend down their fund balance. He said they have done that and spent $15 million worth and now they need the backstop. He said he wants to make sure they understand the outcome. He said that this continuation is a reduction of 100 FTE positions. He said that there has been a comment about going back to business. He said that they are not business. He said they are not a charter school system. He said that there is a lot of talk about equity, and he wants to clearly point out that they are a majority, minority school system. He asked the Commissioners to fund the schools for his children. Ella Horrigan said she will be going to high school next year and chose French and Latin as two of her electives. She said next year her Latin teacher at Culbreth will have to leave because the Latin program has been cut. She said she is not the only teacher that will be losing her job. She emphasized the importance of learning another language and said she is sorry that future students will not get to take Latin. She asked the Board to increase the budget for the schools, so they can keep these types of programs. Clair Werry said she is an eighth grader at Culbreth Middle School. She said the Board has funded the continuation budget in the past, but the school board has had to make cuts anyway, including to the Latin program. She said Ms. Meyer, her Latin teacher, is one of the best teachers her students have ever had, but she will be moving to teach at a private school. She said many of her friends are also moving to private schools. She asked the Board to fund the schools. Jack Wallace said he is an eighth grader at Smith Middle School. He said the CHCCS expansion budget is not just about wants—it includes needs. He said one of the items in the expansion budget is to increase support for teaching assistants. He shared a story about the impact a teaching assistant had on him and other students in elementary school. Julia Gordon said she is an eighth grader at Culbreth Middle School. She said because of the budget cuts at CHCCS, her Latin teacher has been let go for next year. She highlighted the importance of the Latin program. She asked the Board to increase the budget for schools so that no additional cuts are made. Elizabeth Young said she volunteers with the HOME Repair fund and the list is two years long. She said HOME repair funds are important and that keeping a home in good condition costs 1/10th of the cost of building new affordable housing. She said this revaluation benefits investors at the expense of historically Black neighborhoods. She said that newer and larger homes in these same communities are undervalued, while older homes are systematically overvalued. She said that she supports the increase in the AHA. She said that the revaluation does not make the system fairer. She said that she is speaking on behalf of the Orange County Property Tax Justice Coalition, organizers from historic Black neighborhoods, and is supported by the Jackson Center, RENA, Justice United, and Habitat for Humanity. Andrea Tanner said she is the president of the PTA Council for CHCCS. She said she is here on behalf of 18 PTAs in the district to ask the Board to fully fund the continuation budget and 10 think of ways to fund some of the expansion budget. She said the best investment the Board can make is in its children and by giving the educators all they need to educate. She said the PTAs have pledged to advocate at the state level for additional funding for schools. She asked the Board to do everything they can to meet the needs of the schools in Orange County for 2025. Terri Buckner said she was gratified to hear the Board's conversation after the manager's presentation of the budget. She said it was very clear how much they care. She said that she came to present ideas. She said that she is likely the minority opinion in the room but noted that the happiest days of her career were as an educator teaching teachers how to be teachers. She said she has a short-term and a long-term suggestion. She asked the Board to postpone capital funding for the schools. She said they already spend 39.4% on the schools and that is in addition to the district tax. She said that one international study recommends 15-20% spent on education as a target. She said that shows how far out of balance they are. She said long-term, she suggests there is a public-school funding task force to get the schools back on fiscal track. She said there are a lot of smart people in this community that can work on this issue. She said there are many needs, including housing and other social services and those cannot be put off for education. Julie Werry said she has kids at Culbreth and Rashkis and serves at both schools' PTAs. She said she sees death by 1000 cuts. She said her family chose to move here because of public schools and it feels like the things that makes CHCCS so special are being taken away. She said her eighth grader has not had a math teacher all year. She said her younger child has experienced the cuts to TA's that another student talked about. She said she knows the Board supports public education and she encouraged the Board to fully fund the continuation budget and try to fund the expansion budget. William Madden said he appreciates the Commissioners and what they do. He said when it comes to funding for schools, the state legislators are the reason there is a gap, and it will likely continue to be that way. He said he wants to encourage other people to serve in Emergency Services. He said he stopped EMT about a decade ago. He said it helped him to serve people that were in great need. He asked about a program next month that encourages girls 9-12 to serve in Emergency Services. He said this program is supported by the state and several counties. He asked how this comports with the county's non-discrimination policy on sex and gender. Kari Hamel asked the Board to fully fund the continuation and expansion budgets for both school districts. She said that 50% of student body living in low-income households. The Board is responsible for the one meal that many students eat in a day. She encouraged them all to go to a school cafeteria and watch kids eat, to media centers and watch them read, and she asked the Board to have conversations before the second to last meeting. She asked that they fully fund the budget. Kristina Smith said she is a member of the Orange County Affordable Housing Coalition and previously worked at CEF. She said she is a dual student of law and social work at UNC. She said it is more important than ever that the Board continue to invest in the most vulnerable residents. She said it is imperative that children and families in OC have the resources to keep a roof over their head. She said that taxes are needed to cover these services, but increases do not impact everyone equally. She said that older homes in historically Black areas are being overvalued compared to newer homes in the same neighborhood, disproportionately impacting older Black residents. She said that if the county can provide home repair funds, it keeps people in their homes. She asked said there are too many people living unhoused in the community. Jackie Jenks, Executive Director of IFC, thanked the Board for this budget and said they have a difficult job on their hands in deciding what to fund. She said she is also a parent of three kids in the school system. She said that IFC is part of the partnership to end homelessness and they offer the only year-round shelter in the county. She said that they provide permanent supportive housing for 21 households currently and will be adding to that. She said they offer the only free hot meals in the county and free groceries through the community market. She said the 11 revaluation has disproportionately impacted residents that are already having a hard time making ends meet. She said federal funding is uncertain and noted that housing and food services must remain the top priorities. A motion was made by Chair Bedford, seconded by Commissioner Fowler, to close the public hearing on the budget and capital investment plan. VOTE: UNANIMOUS The budget public hearing portion of the meeting ended, and the Board transitioned to a work session. 4. Advisory Board on Aging —Appointments Discussion The Board discussed appointments to the Affordable Housing Advisory Board. BACKGROUND: The Advisory Board on Aging suggests policy and makes recommendations to the Board of Commissioners and the Department on Aging while acting as the liaison between older adults of the County and County government. It is charged with promoting needed services, programs, and funding that impacts older residents. The Board of County Commissioners appoints all twelve (12) members. The following individuals are recommended for Board consideration: NAME POSITION TYPE OF EXPIRATION DESCRIPTION APPOINTMENT DATE TERM Jonathan Wilner At-Large First Full Term 06/30/2028 (reappointment) Shahnaz Gigi At-Large First Full Term 06/30/2028 Rashdi (reappointment) Vibeke Talley Hillsborough Town One-year 06/30/2026 Limits Extension If the individuals listed above are appointed, no vacancies remain. Tara May introduced the item. The Board agreed by consensus on the reappointments of Jonathan Wilner and Shahnaz Gigi Rashdi. Commissioner Fowler asked if Vibeke Talley could be appointed as an ex officio member because there are other qualified applicants. Tara May said the Advisory Board Policy allows for ex officio members so that is a possibility. Commissioner Fowler asked if it would hinder Vibeke Talley's role on the board if she were to be ex officio. Tara May said she will get more information on that. Commissioner Fowler asked when the next vacancies would be if the Board chose to extend Vibeke Talley's term. Tara May said the next vacancy would be in about a year. Vice-Chair Hamilton said she knows the important role that Vibeke Talley has played on this board. She said it is not clear to her that the Tar Heel Legislative Delegate needs to be a 12 regular advisory board member. She supported the idea of appointing a new applicant and having Vibeke Talley stay involved as an ex officio member. Tara May indicated that she will research ex officio membership and bring this position back at the May 29t" work session. Vice-Chair Hamilton said she would be interested in appointing Mary Lucas. Chair Bedford asked Tara May to research the age requirements for the Advisory Board on Aging as well. 5. Affordable Housing Advisory Board —Appointments Discussion The Board discussed appointments to the Advisory Board on Aging. BACKGROUND: The Affordable Housing Advisory Board prioritizes affordable housing needs and assesses project proposals. The board also publicizes the County's housing objectives, monitors the progress of local housing programs, explores new funding opportunities, and works to increase the community's awareness of, understanding of, commitment to, and involvement in producing attractive affordable housing. The Board of County Commissioners appoints all fifteen (15) At-Large members. As a general practice, this board has decided not to make recommendations. The following individuals and position are presented for Board consideration: NAME SPECIAL TYPE OF EXPIRATION REPRESENTATIVE APPOINTMENT DATE TERM Sarah Adams At-Large Second Full Term 06/30/2028 Lynn Nilssen At-Large Second Full Term 06/30/2028 Holly Meschko At-Large Second Full Term 06/30/2028 BOCC At-Large First Full Term 06/30/2027 Appointee If the positions listed above are filled, no vacancies remain. Tara May introduced the item. The Board agreed by consensus on the recommended reappointments. Chair Bedford recommended Kat Weis for the remaining at-large position. The Board agreed by consensus. 6. Alcoholic Beverage Control Board —Appointments Discussion The Board discussed making an appointment to the Alcoholic Beverage Control Board and designating a member as Chair. BACKGROUND: The ABC Board has the authority to buy, sell, transport, and possess alcoholic beverages for the operation of its stores. This board also adopts rules for the ABC system and has the authority to hire and dismiss employees. The Board of County Commissioners appoints all five (5) At-Large members. The following individual is presented for Board consideration: 13 NAME SPECIAL TYPE OF EXPIRATION REPRESENTATIVE APPOINTMENT DATE TERM Dr. Timothy At-Large First Full Term 06/30/2027 Feeney Pursuant to G.S. 18B-700, the Board of Commissioners shall designate a member of the local ABC Board to serve as Chair. Judson Williamson (current Chair) has volunteered to be appointed as Chair for another year with support from the ABC Board members. One of the following ABC Board members may be designated as Chair: NAME POSITION DESCRIPTION EXPIRATION DATE Jennifer Sykes At-Large 06/30/2027 Judson Williamson At-Large 06/30/2027 current Chair Mike Zito At-Large 06/30/2026 Melvin Green At-Large 06/30/2026 Tara May introduced the item. Commissioner Carter said she also liked Dr. Pankratz's application. She asked what the ABC Board's reasoning was for recommending Dr. Feeney. Commissioner Fowler asked if Dr. Pankratz is serving on any other board. Tara May said she is not sure of the exact discussion the ABC Board had when deciding who to recommend. She said she can get more information to bring this back if the Board would like. She said Dr. Pankratz has applied for the Opioid Advisory Committee but has not been appointed. Chair Bedford said, having served on the ABC Board in the past, they give a lot of thought to who they recommend. She asked when the next vacancy on the ABC Board would be. Tara May said June 30, 2026. Chair Bedford said she would like to support their recommendation. Commissioner McKee agreed. The Board agreed by consensus on the recommended applicant. The Board also agreed to appoint Judson Williamson as chair. Tara May said she would relay the Board's support for Dr. Pankratz for the next vacancy. 7. Animal Services Advisory Board The Board discussed appointments to the Animal Services Advisory Board. BACKGROUND: The charge of the Animal Services Advisory Board is to advise the Board of County Commissioners on matters of concern regarding animal issues and animal services in Orange County, and to work with the Animal Services Director on various policy concerns and issues regarding County animal services. The Board of County Commissioners appoints all thirteen (13) members with representation from various related fields and municipalities. The following individuals are recommended for Board consideration: 14 NAME POSITION TYPE OF EXPIRATION DESCRIPTION APPOINTMENT DATE TERM Mary Lucas Town of Hillsborough First Full Term 06/30/2027 Allan Polak Certified Animal Second Full Term 06/30/2028 Handler/Trainer/ Technician If the individuals listed above are appointed, the following vacancy remains: POSITION EXPIRATION VACANCY INFORMATION DESIGNATION DATE At-Large 06/30/2028 Vacant since 04/24/2025 Tara May introduced the item. She indicated that the Animal Services Advisory Board did not have a chance to make a recommendation for the remaining vacant position. The Board agreed by consensus on the recommended appointments. 8. Orange County Board of Adjustment -Appointments Discussion The Board discussed appointments to the Orange County Board of Adjustment. BACKGROUND: The Board of Adjustment hears, reviews, decides appeals, and reviews any order requirement, decision, or determination made by the Zoning Officer in the performance of official duties. It also hears and decides applications for the approval of those Special Uses requiring Board of Adjustment approval, in accordance with the rules and conditions laid down in the Unified Development Ordinance (UDO), hears and decides appeals for variances from the dimensional regulations of the Unified Development Ordinance(UDO), and decides or determines other matters as may be required by the Unified Development Ordinance (UDO) or State law. The Board of County Commissioners appoints all five (5) members and two (2) alternates. The Board of Adjustment does not make recommendations for appointments. The following individuals are presented for Board consideration: NAME POSITION TYPE OF EXPIRATION DESCRIPTION APPOINTMENT DATE TERM Leon Meyers At-Large Second Full Term 06/30/2028 Holly Fraccaro Alternate First Full Term 06/30/2028 reappointment If the positions listed above are filled, no vacancies remain. Tara May introduced the item. The Board agreed by consensus to reappoint Leon Meyers and Holly Fraccaro. 15 Adjournment A motion was made by Commissioner Fowler, seconded by Chair Bedford, to adjourn the meeting at 8:08 p.m. VOTE: UNANIMOUS Jamezetta Bedford, Chair Recorded by Tara May, Deputy Clerk to the Board Submitted for approval by Laura Jensen, Clerk to the Board