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HomeMy WebLinkAboutMinutes - 20080529 APPROVED 9/16/2008 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS BUDGET PUBLIC HEARING May 29, 2008 The Orange County Board of Commissioners met on Thursday 29, 2008 at 7:30 p.m. at the Southern Human Services Center in Chapel Hill, North Carolina. The purpose of this meeting was to hold a public hearing on the County Manager's recommended 2008-2009 budget. COUNTY COMMISSIONERS PRESENT: Chair Barry Jacobs and Commissioners Moses Carey, Jr., Valerie P. Foushee, Alice M. Gordon and Mike Nelson COUNTY COMMISSIONERS ABSENT: COUNTY STAFF PRESENT: County Manager Laura Blackmon, Assistant County Manager Gwen Harvey and Clerk to the Board Donna S. Baker (All other staff members will be identified appropriately below) NOTE: ALL DOCUMENTS REFERRED TO IN THESE MINUTES ARE IN THE PERMANENT AGENDA FILE IN THE CLERK'S OFFICE. 1. Opening Remarks- Chair Chair Jacobs said that the County Commissioners have not discussed the Manager's recommendation yet and they will take comments into consideration as they discuss the budget. He said that, as far as the schools go, the Board of County Commissioners does not approve line items, but only gives an amount to the schools on a per-pupil basis. 2. Presentation of County Manager' Recommended FY 2008-09 Budget(PowerPoint Presentation)—Laura Blackmon County Manager's Recommended 2008-09 Annual Operating Budget Public Hearings May 27 and 29, 2008 Guiding Principles .Balance increasing service demands and sluggish revenue growth while keeping our community affordable for all residents. .Balance the Board of Commissioners' historic commitment to schools as the County's top funding priority with other community needs. .Provide a safe and healthy community for our growing populations including multi-cultural and economically stressed residents. .Fund staffing, operational and capital costs associated with new County facilities that will come on-line during the next fiscal year. .Offer a competitive pay and benefits package for our current permanent employees to enable them to deal with financial strains caused by rising gas, food, health care and housing costs Recommended General Fund Budget •General Fund Budget totals $188.3 million ■Original fiscal year 2007-08 budget totaled $173.6 million •Recommendation represents an 8.4 percent increase over previous year original budget FY 2008-09 Budget Requests Compared to Recommended Budget Ad Valorem and Chapel Hill-Carrboro City Schools Special District Tax Requested Recommended %Funded Budget Budget Education (includes Chapel Hill- Carrboro City Schools and Orange County Schools funding for current expense, operating and long-range capital, debt service, Fair Funding, School $111,459,950 $109,841,408 98.5% Health Nurses, Social Workers, School Resource Officers, and Orange County Satellite Campus of Durham Technical Community College current expense and debt service) County Departments and Outside Agencies (includes $100,760,803 $97,052,832 96.3% County related debt service) Little Growth Anticipated in Non-Property Tax Revenues for FY 2008-09 (bar graph) Balancing the Budget .Natural growth in real property valuation produces about $2.5 million in new property tax dollars .That growth is offset by anticipated loss of$2.5 million in sales tax revenues created by slowing consumer spending and State legislative actions .Increased property taxes and use of fund balance ("rainy day" fund) recommended to fill the gap between revenues and expenditures .Appropriating $2 million in fund balance to cover cost of purchasing vehicles and equipment for county departments .Voter authorization of new local revenues such as Land Transfer Tax and additional sales tax would have helped to defray future tax rate increases . Projected proceeds from Land Transfer Tax about $3.5 million or about 2.75 cents on FY 2008-09 tax rate .Projected proceeds from additional Sales Tax about $3 million or about 2.3E cents on FY 2008- 09 tax rate Proposed Ad Valorem Tax Rate ■Recommended tax rate of$1.038 per$100 of assessed valuation .Represents an increase of 8.8 cents over current rate of 95 cents ■One cent on property tax estimated to generate $1,271,729 .FY 2007-08 one cent equivalent = $1,247,881 Proposed Chapel Hill Carrboro City Schools District Tax Rate ■Recommended tax rate of 23 cents per$100 of assessed valuation .Covers the cost of opening new Morris Grove Elementary School and adding senior class at Carrboro High School .Represents an increase of 2.65 cents over current rate of 20.35 cents ■One cent on property tax estimated to generate $808,738 .FY 2007-08 one cent equivalent = $802,246 Education Funding Overview .402 new students projected to attend Chapel Hill Carrboro City and Orange County Schools next year .323 students in Chapel Hill Carrboro City Schools . 79 students in Orange County Schools .Brings total student membership for both districts to 18,932 .Total recommended funding for both School districts totals $91.2 million .48.5 percent of total General Fund appropriations .Increase of$6.8 million from fiscal year 2007-08 approved budget for operations, fair funding, debt service and capital .Per pupil allocation recommended at $3,256 .Increase of$187 from FY 2007-08 of$3,069 State Mandated Funding Formula General Fund Per Pupil Allocations to Each District CHCCS OCS Total Total Projected Students (including charter students) for Fiscal Year 2008-09 11,705 7,227 18,932 Multiplied by: Recommended County Per Pupil Allocation for FY 3,256 3,256 3,256 Equals: Recommended Current Expense Funding for Fiscal Year 2008-09 (Ad $38,111,480 $23,531,112 $61,642,592 Valorem Only) FY 2008-09 Recommended Increase in Current Expense Funding from Previous Year $3,176,097 $1,591,373 $4,767,470 jAd Valorem Only) Requested Current Expense Funding for FY 2008-09 (Ad $35,922,645 $23,771,912 $59,694,557 Valorem Only) Recommended Funding for FY 2008- 09 (Ad Valorem and $56,712,412 $23,531,112 $80,243,524 Special District Tax) Requested Current Expense Funding (Ad Valorem and Special District Tax)for FY $58,090,154 $23,771,912 $81,862,066 2008-09 Per Pupil Appropriation (General Fund) Historical Comparison Fiscal Years 1983-84 through 2007-08 reflect Commissioner approved per pupil appropriations Fiscal Year Per Pupil Annual $ Increase Annual % Increase Appropriation 83-84 $603 84-85 $642 $39 6.47% 85-86 $773 $131 20.40% 86-87 $871 $98 12.68% 87-88 $870 ($1) -0.11% 88-89 $967 _ $97 11.15% 89-90 $1,057 $90 9.31% 90-91 $1,175 $118 11.16% 91-92 $1,310 $135 11.49% 92-93 $1,310 $0 0.00% 93-94 $1,363 $53 4.05% 94-95 $1,451 $88 6.46% 95-96 $1,571 $120 8.27% 96-97 $1,782 $211 13.43% 97-98 $1,889 $107 6.00% 98-99 $2,040 $151 7.99% 99-00 $2,256 $216 10.59% 00-01 $2,395 $139 6.16% 01-02 $2,437 $42 1.75% 02-03 $2,516 $79 3.24% 03-04 $2,5661 $50 1.99% 04-05 $2,623 $57 2.22% 05-06 $2,796 _ $173 6.60% 06-07 $2,957 $161 5.76% 07-08 $3,069 $112 3.79% 08-09 Recommended $3,256 $187 6.09% Construction and Renovation of Schools and County Facilities Has Required County to Borrow Money - Since 1988, Commissioners have authorized $325 million in debt - Examples of Debt Funded Projects o Construction of New Schools and Renovations of Older Schools • Chapel Hill-Carrboro City Schools • New Schools — Morris Grove Elementary, Carrboro High, Rashkis Elementary, Scroggs Elementary, McDougle Middle, McDougle Elementary • Orange County Schools • New Schools— Cedar Ridge High, Pathways Elementary, New Hope Elementary, Gravelly Hill Middle - New County Parks o Efland Cheeks, Fairview, Northern - New County Buildings o Southern Human Services, Link Center, The Office and Library - Partner Projects o Homestead Aquatics Center, Southern Community Park Cost of Repaying School and County Related Debt - General Fund debt service in FY 2008-09 totals $26.1 million o 75% of total repays school related debt and 25% repays county related debt o Equivalent of 20.5 cents on tax rate o Includes $5 million for repayment of 2001 voter approved bonds • Equivalent of 3.9 cents on 2008-09 Tax Rate - Funding level for FY 2008-09 is $2 million more than current fiscal year or the equivalent of 1.6 cents on tax rate o $1.2 million for school-related projects o $800,000 for county related projects Additional Major Budget Elements .Full year of operations for Orange County Campus of Durham Technical Community College .Eleven new County facilities coming on line next fiscal year .Need for certain facilities such as Animal Services Facility and new space for Department of Social Services created by circumstances beyond County's control .Examples include parks, County Campus and Library, Animal Services Facility, and Justice Facility .Costs to staff and operate these new facilities $3 million next fiscal year .Addressing health, safety and well-being for growing populations .Transitioning long-term temporary employees to permanent status with benefits Public Hearings and Work Sessions (All Meetings Begin at 7:30 p.m.) Public Hearings— May 27th at F. Gordon Battle Courtroom, Hillsborough May 29th at Southern Human Services Center, Homestead Road, Chapel Hill Work Sessions - June 5th at Government Services Center, Cameron Street, Hillsborough June 12th at Southern Human Services Center, Homestead Road, Chapel Hill Work Session/Adoption—June 17th at Southern Human Services Center, Homestead Road, Chapel Hill Final Adoption —June 24th at Southern Human Services Center, Homestead Road, Chapel Hill Work Sessions Offer Opportunities for Commissioners to Discuss Recommended Budget .June 5 .County Manager and staff to present recommendations for to possibly reduce recommended tax rate increase .To include reduction/elimination of non-core programs and services .Discussion of other elements of County budget such as cost of new facilities, new staff, and employee pay and compensation plan .June 12 .Joint Budget Meeting with Boards of Education and Durham Technical Community College .June 17 .Further discussion of Recommended Budget .Adoption of Resolution of Intent to Adopt FY 2008-09 Budget and Tax Rate .June 24 .Adoption of FY 2008-09 Budget Ordinance Document Availability •Clerk to Board of Commissioners •County Budget Office ■Orange County Library ■Chapel Hill Public Library •Carrboro Library •Cedar Grove Library •Orange County Website ■www.co.orange.nc.us/budget Commissioner Gordon asked for a line item detail on the budget and Laura Blackmon said that it will be delivered on Monday evening. Chair Jacobs asked about the information on the reduction of services that will be brought forward on June 5th and asked Laura Blackmon for the priority services that would be cut per cent of the tax rate. Laura Blackmon said that she was going to list programs and she can categorize them as non-core programs, deletion of a position that was attached to a program, or if it was a grant program. Commissioner Gordon asked the Manager if she would have priorities with the Manager's recommendation for elimination and Laura Blackmon said that she has not developed them as priorities yet, but she and the staff could do this. 3. Public Comment Mark Peters said that he is speaking on behalf of the CHCCS PTA Council. Last year hundreds of parents spoke to the County Commissioners about what could have been a devastating loss of teachers in both districts if the original proposed budget had been adopted. He thanked the County Commissioners for what was done last year. He said that this year parents have little reason to show up. He encouraged the County Commissioners to adopt the Manager's recommendation and the schools' requested budget. He said that the PTA Council did not take a position on the transfer tax, and some parents were interested, but could not fight the real estate industry group that basically bought the referendum for a quarter of a million dollars. Kirsten Barker is a parent of children at Carrboro Elementary. She received a letter in her child's backpack the other day that the CHCCS Board was requesting an increase of$6.8 million and that the County Manager recommended an increase of$5.3 million. The letter went on to say that the $1.5 million shortfall was a reasonable recommendation and that the district could do its part to reduce the amount without having a detrimental impact on the students. She understands that the County Commissioners are now suggesting that the County Manager's budget recommendation be cut further and that the schools figure out how to operate with even less. She said that within a mile of her home, there are three new developments underway, which will create 240 new single-family homes and 86 town homes. Secondly, she works part- time and also volunteers in the school. She sees the needs of the schools first hand and she helps fill the gaps, but the gap of$1.5 million is too much to fill. She asked the Board to support the school board's request. She said that she is here on behalf of every child and not just a certain group of children. Molly Dougherty is a member of the Orange County Public Health Service Reserve Corps Community Emergency Response Team. She became a member three years ago. She asked the Board to support the Volunteer Coordinator position for this team. The volunteer corps is prepared to help the community in emergencies. The corps also helps with ongoing health events such as flu clinics and wellness screening. Chris Harlan, Chair of the Board of Health, said that she was pleased to see the third line under"Guiding Principles" regarding assuring a safe and healthy community. She spoke about a refugee health program with the Health Department. She said that the community and the health department are experiencing an increase in refugees through the federal government's refugee program. These refugees are primarily coming from Niomar or Burma and it is anticipated that more refugees may be coming into Orange County. Historically, the Health Department processes six to ten refugees each year. Since last July, it has seen more than 230 refugees and anticipates another 40 arriving in June. Every arriving refugee is required to have a communicable disease screening with the local health department within 30 days of arrival. Because of this huge increase, staffing levels do not adequately allow for the screening to take place within the required 30-day time period. She said that because it is a core health function to assess and monitor the health of refugees arriving, a half-time family nurse practitioner position is requested to provide the full health assessment within 30 days of the arrival of refugees as mandated by the federal government. In addition, the new communicable disease surveillance and reporting system will be implemented throughout the state this summer. This new system will allow for quicker response, however, it is expected to result in a 30% increase in the number of communicable disease cases reported. To provide the communicable disease screening to all of the arriving refugees within 30 days of arrival and to meet the projected 30% increase in the communicable disease workload due to the surveillance system, a full-time communicable disease nurse has also been requested. Sakari Blake said that she has been a Land Trust homeowner since 2001 and a board member since 2002, and the Chair since 2006. She thanked the County Commissioners for their support over the years. She asked the Board to grant the request of$200,000 for the FY 2008-09. The Land Trust model was adopted in 2000 in order to keep affordable homes from becoming unaffordable after the first low-income buyer sells their home. There are currently 132 homes in the Land Trust. When she purchased her home in 2001, there were only 12 houses in the Land Trust. She said that the proposed budget for 2008 has an increase since there is such a large volume of new homes and more staff is needed. She said that if the Land Trust does not get the $200,000, then it will be in a deficit because of the new office space required to support the new employees. Gary Wallach is a parent of a Culbreth Middle School student. He thanked the County Manager for her recommendation of funding the schools. He said that many boards have objected to raising the tax rate, and if the tax rate were kept just at $1, there is the potential to remove over$5 million from the proposed budget. The schools could lose as much as $2.5 million out of that. He hopes that the Board would consider raising the district tax if necessary to fill the potential loss. He said that the loss would mean cutting into needed existing programs. He said that we need to keep high quality schools and not continue to cut programs. Anne Jackson spoke on behalf of Club Nova. She thanked the County Commissioners for contributions in the past. She said that money is always a problem for Club Nova, especially with the mental health reform. She said that there are secondary problems with the clients, such as health issues, including heart disease and cancer. She is having some issues with cancer, and Club Nova has taken her to appointments for treatments and has been by her side through her treatments. She has also had access to food when she could not get to the clubhouse, etc. She said that it is nice to have a quality of life when there are problems and all of this takes money and time. She asked the Board of County Commissioners for funding this year. Nancy Phillips also spoke on behalf of Club Nova. She has been a resident since 1996. She said that she needs the support of mental health providers and the friends at Club Nova. She asked that the County Commissioners please support Club Nova. Mary Jane Seydon lives in Chapel Hill and is a board member of the Land Trust. She asked the Board to fully fund the budget request of$200,000. She said that the Land Trust will be adding 166 units of housing over the next few years, and the increase in the funding request is for staffing and office space. She thanked the County Commissioners for their past support. Robert Dowling, Executive Director of the Orange Community Housing and Land Trust, thanked the County Commissioners for their support. He said that the additional request is $21,000 to bring the total contribution to $200,000. He said that he has always asked for exactly what the Land Trust needs and never above. He said that, even with the full funding from the County Commissioners, there will still be a budget deficit of$10-30,000 because of the new office space. Joel Dunn spoke on behalf of the CHCCS. He has two children who have gone through the school system and they have had a wonderful experience. He supports the Manager's Recommended Budget and said that there are many people that care about education. He is disappointed that the land transfer tax did not pass. Jane Kerwin Frederick has four children in the CHCCS. She said that she is here because she voted for the land transfer tax and she still is lobbying for the schools. She said that many parents feel that there is no problem with the proposed budget but what they do not know is if there are cuts, then the school's request will be reduced more. She said that she wants the County Commissioners to raise her taxes for her kids and the schools. She said that the schools are what draw people to this area. She supports the Manager's recommendation. Krysia Lynes has a child at Franklin Porter Graham Elementary and said that she is pleased with the Manager's recommendation. She said that the people who live in Orange County live here because they value the schools, the parks, etc., and they demand excellent services, but the services are not free. She said that it is more important now than ever to ensure that these services are available, especially in tough economic times. She said that the hardships caused by a loss of service are every bit as real as the hardships caused by an increase in property taxes. She said that she is sure that the staff and the board of education have looked for ways to save money. She said that, since the land transfer tax referendum was defeated, it was clear that the citizens chose to pay property taxes. She asked the County Commissioners to adopt the Manager's Recommended Budget. Laura Philpot is a resident of Chapel Hill and a parent of CHCCS children. She works full-time in Raleigh and she donates time and resources through the equipment list that her children bring home. She read off the list of equipment items that are expected of every parent — headphones, baby wipes, hand sanitizer, snacks, equipment for the classroom, books, etc. She was amazed at how many things that the kindergarten teacher needed for support. She said that the class originally had 20 students and by the holidays it had 26 students with no additional staff. She said that she is expecting tax increases for the next 14 years and she is fine with her taxes going up to pay for the schools. Marty Mandell said that it is unconscionable to raise property taxes and that there are other choices. She said that if growth and the cost of growth are the root causes of a tax increase, then this is the place to look. She said that the SAPFO was supposed to pace growth with the schools is a total failure. She said that if there is space available anywhere in a school district, a development gets a building permit and it does not matter what the enrollment is in the particular school that the children would attend. She said that for this planned area, the proposed costs for new schools over the next ten years are $300 million. She said that this ordinance blatantly favors developers over educational quality and citizens' concerns. She said that to replace the word "district" with "appropriate school" in the ordinance would work the way people thought it would. Regarding the Land Transfer Tax, she understands that this did not pass because the seller had to pay the tax and not the buyer. She said that most people would have voted for it had this been the case. She said that a thoughtful Chapel Hill Herald editorial printed last fall suggested that it may be time to ask basic questions about growth, such as "how big can we grow?", "should we grow?", "can we afford it?", etc. She asked the County Commissioners to not increase taxes this year. Susan Ruch said that she has children in CHCCS and her family chose to live in Chapel Hill because of the strength and reputation of the schools. She said that she has met countless people who have chosen to live in Chapel Hill because of the excellent schools. She said that CHCCS is regarded as the best in the country, but there are also many other charms in the community. She said that no one likes an increase in taxes, especially with the cost of everything going up. However, just as costs are increasing for individuals, they are also increasing for the schools. She said that the Superintendent has created a continuation budget and an expansion budget, and the Manager has recommended a budget that is even less than the continuation budget. She asked the County Commissioners to accept the Manager's Recommended Budget. Sandy Alexander said that he is the father of four children in the CHCCS and he is PTA President at Glenwood Elementary. He said that Glenwood is faced with an old facility and technology that is lacking because it is an older school. The staff has made this school the best and the staff is the constant in this school. He said that, with the opening of Morris Grove Elementary, this has put a lot of stress on the staff and a lot of key staff members have gone to Morris Grove. He said that Glenwood School will rebound, but this is a record loss of staff this year. He is going into his third year as PTA president. He said that with the huge disparity of the old versus new school, he is very concerned with staff recruitment and retention. He said that if the school does not have adequate technology and facilities, teachers will look elsewhere. Sarah Ludingten is a resident of Carrboro and a mother of three children in the CHCCS. She is here to support the Manager's recommendation. She said that she speaks for the whole community and that their special programs and services are important at Carrboro Elementary (i.e., very diverse populations). She asked the County Commissioners to please fund the budget to the fullest extent even if it means raising the property taxes. OCS Board Chair Ted Triebel said that he is representing the OCS Board tonight. He said that the school board acknowledges the Board's unenviable duty of balancing the needs of Orange County citizens with the realities of the available revenue. He said that the school board fully understands and appreciates the Board of County Commissioners' position. He said that OCS has whittled its budget request to an amount that the rural residents will support. He said that, with the direction of the Superintendent, they recently completed an internal and external efficiency study to ensure that the school system is lean, yet providing an appropriate education. As a result, over the past two months, the school system has not filled six positions. 4. Adjournment A motion was made by Commissioner Gordon, seconded by Commissioner Foushee to adjourn the meeting at 8:54 p.m. VOTE: UNANIMOUS Barry Jacobs, Chair Donna S. Baker, CMC Clerk to the Board