1996-01-18 Budget Work Session
NEW HANOVER COUNTY BOARD OF COMMISSIONERS
BUDGET RETREAT, JANUARY 18, 1996
BOOK 25
PAGE 213
ASSEMBLY
The New Hanover County Board of Commissioners held a Budget
Retreat on Thursday, January 18, 1996, at 8:30 A.M. in the Blockade
Runner Resort Hotel, Wrightsville Beach, North Carolina.
Members present were: Commissioners Sandra Barone; William A.
Caster; William E. Sisson, Jr.; vice-Chairman E. L. Mathews, Jr.;
Chairman Robert G. Greer; County Manager, Allen 0' Neal; County
Attorney, Wanda M. Copley; and Clerk to the Board, Lucie F.
Harrell.
Chairman Greer called the meeting to order.
PRESENTATION OF DEMOGRAPHIC DATA FOR NEW HANOVER COUNTY
County Manager O'Neal presented charts reflecting the growth
in population, per capita income, construction activity, the number
of school students, and retail activity from 1990-1995. Charts
were presented on the taxable property assessed value, the growth
in the general fund balance, and the increase in County funding for
school expenditures and government expenditures during the past
five years.
Discussion was held on the tremendous growth in development
which has created a demand for new schools, water, sewer, and other
services. From 1990 through 1995, general government increased by
26.4% (which includes debt service of 3.97% and non-departmental
items); human services increased by 48.9%; public safety increased
by 35.9%; economic and physical development increased by 13.1%;
cultural and recreation increased by 31.6%; and education increased
by 32%.
Finance Director, Bruce Shell, reported the figures ln the
charts were presented to show the growth in terms of total needs,
not in County costs. He reported he would be glad to prepare a
report on the net costs compared to the growth in the fund balance
to provide the Board with a better overview of the financial
posi tion of the County. He reported the highest percentage
increase in the divisions of government was 48.9% in human services
over a period of five years.
After discussion of the tremendous increase in human services
due to state and federal mandates, Commissioner Sisson requested a
report showing a breakdown reflecting the increases due to
entitlement programs and the growth in population.
County Manager O'Neal responded that a report reflecting these
figures would be prepared and forwarded to the Board.
Discussion was held on Certificates of Participation (COPS)
financing. Finance Director Shell noted that the flexible interest
rate had proven to be very beneficial to the County as of this
date. When preparing the budget, a fixed interest rate of 5.6% is
used on a long-term basis; however, the County has been paying only
3.5% which has provided an opportunity to build a cushion if
interest rates should increase.
Chairman Greer requested the Finance Director to forward a
quarterly or bi-annual report on the interest rate being received
by the County so the Board will be aware of how this method of
financing is working. Finance Director Shell responded that a
report would be prepared and forwarded to the Board.
Discussion was held on the impact of annexation on the sales
tax. Budget Director, Cam Griffin, advised that with annexation
the sales tax will decrease with the same population having to be
served with less revenue. She reported Staff would continue to
monitor the impact of annexation on the sales tax as each area lS
annexed.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS
BUDGET RETREAT, JANUARY 18, 1996
BOOK 25
PAGE 214
Discussion was held on the change in the distribution formula
of the Room Occupancy Tax from 75% beach renourishment/25% tourism
to 60% beach renourishment/40% tourism. Commissioner Caster
inquired as to the amount of funds being placed in the beach
renourishment account.
Finance Director Shell reported the Convention & Visitors
Bureau (CVB) receives 100% of the monies collected from the 40% of
the Room Occupancy Tax designated for tourism. This has increased
the CVB budget from $400,000 to over $800,000 per year. The beach
renourishment fund is still in excess of $9 million; however, this
fund is growing at 7% instead of 8% under the new distribution
formula.
DISCUSSION OF COOPERATIVE AGREEMENTS WITH THE CITY OF WILMINGTON
County Manager O'Neal reported a memorandum had been received
from the City Manager expressing an interest in negotiating
cooperative agreements in the following areas:
Utilities: The County is working with the City on the 23rd Street
site for construction of the Northside Wastewater Treatment Plant.
Currently, the City has a remaining capacity in its existing
Northside Wastewater Treatment Plant and has requested the County
to consider an interlocal agreement whereby the County and City
would fully utilize this capacity before constructing another
Northside Wastewater Treatment Plant. This interlocal agreement
would be for a period of five years after which the City and County
would collectively construct a Northside Wastewater Treatment
Plant.
County Manager O'Neal asked if the Board would like for Staff
to hold discussions with the City Staff including the Chairman and
Vice-Chairman of the Water & Sewer District; or would the Board
prefer for the County to explore this possibility when an
interlocal agreement is being negotiated? He emphasized the
importance of protecting the County's interest to guarantee that
adequate wastewater capacity will be available to meet future
growth needs in the unincorporated County.
County Engineer, Wyatt Blanchard, reported the current NPDES
permit will expire July 1, 1996, with renewal for an additional
five years. The new permit will not require the City to upgrade
its plant; therefore, this would be an excellent time for an
interlocal agreement to be negotiated.
Discussion was held on the use of the City's Southside
Wastewater Treatment Plant at a contracted cost per year. It was
concluded that the agreement has been beneficial to both the City
and County. Chairman Greer stated, in his opinion, an interlocal
agreement with shared costs and future protection for both the City
and County would be the appropriate way to address water and sewer.
He stressed the importance of moving forward with a negotiated
agreement within the next three months because of the need to begin
construction of the Northside Wastewater Treatment Plant.
County Engineer Blanchard advised that the County had two
options: (1) negotiate an interlocal agreement to fully use the
capacity of the City's Northside Wastewater Treatment Plant with a
joint expansion and upgrade of this plant; or (2) construct the
Northside Wastewater Treatment Plant on the site as proposed with
demolition of the City's plant. Also, a letter has been received
from the State assuring the County that the NPDES discharge permit
into the Cape Fear River will be renewed.
Commissioner Sisson spoke in favor of moving forward with an
inter local agreement which will address the concerns expressed by
the Airport Commission. He stated the City and County should
decide during this process whether an organization should be
established to oversee the entire utilities operation, or should
interlocal agreements be negotiated between the City and County.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS
BUDGET RETREAT, JANUARY 18, 1996
BOOK 25
PAGE 215
County Manager O'Neal reported if the County moves forward
with an interlocal agreement, he would use this agreement as the
foundation for future discussions regarding the establishment of an
organization to oversee the operation of utilities.
Consensus: After discussion of time constraints and the need to
construct the Northside Wastewater Treatment Plant, it was the
consensus of the Board to direct Staff to move forward with
preparing an interlocal agreement for full use of the existing
capacity in the City's Northside Wastewater Treatment Plant and
proceed immediately with a joint effort to construct a Northside
Wastewater Treatment Plant.
Fire Service: The City has accepted the Board's offer to jointly
examine the possibility of combining the Fire Service. The City
Council designated Councilman Frank Conlon, Councilman Charlie
Rivenbark, and Fire Chief, Sam Hill, to serve on an Advisory
Committee to study merging the Fire Service. The City has
requested the Board to designate two Commissioners to serve on the
Committee.
Chairman Greer recommended including the County Fire
Administrator as a member of the Advisory Committee when this
position is filled. Also, he suggested waiting until the position
was filled before scheduling the first meeting of the committee.
Consensus: After further discussion, it was the consensus of the
Board to move forward with examining the possibility of merging the
Ci ty and County Fire Service. Commissioner Sisson and Vice-
Chairman Mathews were appointed to serve on the Advisory Committee
as well as the new County Fire Administrator once the position is
filled.
Merging Planning DeDartments: The City Council has indicated a
desire to re-visit merging the Planning Departments when a Unified
Development Ordinance has been prepared.
Assistant County Manager, Dave Weaver, advised that the
purpose of preparing a Unified Development Ordinance was to create
an ordinance that would have the same basic standards, such as
drainage requirements. He informed the Board that a combined
Planning Department could function without a Unified Development
Ordinance; however, other differences would have to be addressed.
For example, the County Planning Board performs subdivision
reviews; whereas, the City Engineering Department administers
subdivision reviews. Also, the County Planning Department
administers Community Development Block Grant housing proj ects;
whereas, Wilmington Housing Finance and Development, Inc.
administers this program for the City.
Discussion was held on whether there would be one or two
Planning Boards. County Manager O'Neal advised that one Planning
Board could be established with representation from the various
jurisdictions within the County. Under any situation, whether
separate boards or combined, the members of the Planning Board
would rely heavily on the expertise of the Planning Staff.
Consensus: After further discussion, it was the consensus of the
Board to concur with the City and reconsider merging the Planning
Departments after development and completion of the Unified
Development Ordinance.
Establishment of a Develooment Center: Discussion was held on
establishing a joint City/County Development Center to house all
development-related departments or functions to provide "one-stop
permitting" for contractors, developers, architects, and engineers.
This type of center would provide better planning for future growth
and transportation needs as well as assist with addressing other
areas of joint concern.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS
BUDGET RETREAT, JANUARY 18, 1996
BOOK 25
PAGE 216
Further discussion was held on the cost of establishing a one-
stop permitting center. Assistant County Manager Weaver advised
that a building would have to be found to house the associated
personnel, and a computer networking program would have to be
developed.
vice-Chairman Mathews commented on the convenience of a
Development Center to the public and recommended exploring this
idea.
Commissioner Barone commented on Brunswick County receiving a
State award for this type of permitting center, and she suggested
a review of this plan during the process of studying this issue.
Consensus: After further discussion, it was the consensus of the
Board for the County Staff to work with the City Staff in preparing
a proposal to be considered for establishing a joint Development
Center by October 1, 1996.
Discussion was held on movlng zoning enforcement under the
Planning Department instead of the Inspections Department.
Commissioner Sisson reported this was the most common method used
in other jurisdictions.
County Manager 0' Neal explained that placing zoning
enforcement under the Inspections Department provided an audit of
the system, which in his opinion, had worked exceptionally well in
the community. He reported if the Board desires to move zoning
enforcement under the Planning Department, Staff will prepare a
proposal.
vice-Chairman Mathews commented on public relations and
reported the County needs to hire a qualified, courteous, well
informed person to answer phones and direct callers to the correct
departments. He reported on the numerous complaints received from
the public about being transferred from one department to another
with no satisfactory answer.
County Manager O'Neal responded that Staff would reVlew this
matter.
Interlocal Agreement With the City of Wilmington for the provision
of Recreation Services in the UnincorDorated County: The City is
interested in developing an interlocal agreement for the City to
provide recreation services on behalf of the County in the
unincorporated area. Also, the City Staff would prepare an
inventory of existing parks and identify areas in need of park
facilities; however, the City is not interested in combining the
management of park facilities at this time.
Chairman Greer reported he would not be interested ln the
County paying the City to provide recreation services ln the
unincorporated County.
Commissioner Sisson reported he felt the City was interested
in offering their services to expand current programs into certain
areas of the County. He stated an interlocal agreement of this
type could save the County money by not having to hire additional
personnel to implement these programs in the future.
Commissioner Barone objected to the County becoming involved
in the recreation business because of the cost involved with the
provision of recreational programs.
Chairman Greer agreed with Commissioner Barone.
Consensus: After further discussion, it was the consensus of the
Board to inform the City that the County was not interested ln
developing an interlocal agreement for the prOV1Slon of
recreational services by the City.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS
BUDGET RETREAT, JANUARY 18, 1996
BOOK 25
PAGE 217
Chairman Greer reported he felt the City needed financial
assistance for many of the items being requested. He expressed
concern for cost-shifting and stressed the importance of both the
City Council and Board of County Commissioners moving forward with
combining services only if the combined service will be of benefit
to the citizens and taxpayers.
Legion Stadium: The City is interested in developing a long-term
arrangement for the use of Legion Stadium by the City, New Hanover
Schools, the County, and other interested parties. The City
Council appointed Councilman Hamilton Hicks and Councilman Harper
Peterson to serve on a committee with County and School Officials
to consider various options for the use of Legion Stadium.
Discussion was held on the poor condition of the parking lot
and athletic field at Legion Stadium. Chairman Greer recommended
charging the spectators a fee that will be earmarked for
maintenance of the stadium.
Commissioner Barone advised that she had received numerous
calls from parents who were not opposed to paying a $1.00 parking
fee.
Commissioner Sisson expressed concern for the situation that
developed between the City and New Hanover County School System
last year without any of the problems being resolved.
Commissioner Barone commented on Legion Stadium being a
community facility and stated she would not be opposed to the
County contributing funds to repair the facility.
Consensus: After further discussion, it was the consensus of the
Board to designate Commissioner Barone and Commissioner Caster to
serve on a Committee to develop a long-term arrangement for the use
of Legion Stadium by the City, County, Board of Education and other
appropriate entities.
DISCUSSION OF HUMAN SERVICES TRANSPORTATION SYSTEM
Assistant to the County Manager, Ms. Pat Melvin, reported the
Castle Hayne/Wrightsboro and Rock Hill route had been most
successful. Currently, the Transit 2001 Study is underway, and it
is hoped that State dedicated funding will be provided for human
services public transportation systems. The County's
transportation system has grown from 189,000 units to an estimated
300,000 units during the next fiscal year. It is felt that New
Hanover County's Human Services Transportation System has been
operating in an efficient and cost-effective manner compared to
other systems throughout the State.
Ms. Melvin advised that the Human Services Transportation
System was feeding into the City's Transit System. Currently,
there are opportunities in the Castle Hayne area for a
public/private venture with General Electric (GE) to provide
transportation service to GE employees, such as a route for
employees going to work at 7: 00 A.M. As the system grows, it
appears that funding will be available to negotiate public-private
ventures.
County Manager 0' Neal noted that New Hanover County had
provided an incredible level of service with a minimal investment
by the County.
Discussion was held on the importance of informing the public
about the system and providing some way to better identify the
mlnl-vans. Ms. Melvin responded that radio stations were being
used to better inform the public. Also, a mini-bus will be ordered
next year, which should assist with identification of the vehicles.
Chairman Greer, on behalf of the Board, expressed appreciation
to Ms. Melvin for the success of the system.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS
BUDGET RETREAT, JANUARY 18, 1996
BOOK 25
PAGE 218
Discussion of Merging the City and County Garages: Assistant
County Manager Weaver advised there was a possibility of combining
vehicle management with the City. By utilizing the mechanics at
the City and County garages, more mechanics would be available to
perform the work, and the City's computer system could be used to
provide time management records and inventory reports. Also,
merging the garages would alleviate the need for the County to
upgrade the computer system at the County Garage.
Chairman Greer advised that a bigger system was not always
better. He reported the current system was working well,
particularly with emergency repairs.
Assistant County Manager Weaver reported with continued
growth, another mechanic will be needed and the computer system
will have to be upgraded to keep proper records and inventory of
parts.
Commissioner Caster asked if contracting out the serVlce would
be an alternative?
Assistant County Manager Weaver reported approximately two
years ago Staff reviewed contracting with a private company and
found that after downsizing, the County could perform the work at
about the same cost. Also, when emergencies occur, the County can
call in mechanics on weekends to make the necessary repairs. Under
a contracted service, this type of emergency repair service would
not be provided.
Chairman Greer inquired as to whether a record was kept on the
maintenance and repair of each vehicle?
Assistant County Manager Weaver replied that a paper record
was kept; however, with continued growth in this department, a
computer upgrade would be required.
DISCUSSION OF ANNEXATION AND ITS IMPACT ON THE FY 1996-97 BUDGET
Budget Director, Cam Griffin, reported there was a slight
possibility of annexation occurring on February 29, 1996; however,
it would probably occur on July 1, 1996. The impact of annexation
on the sales tax will create no growth in this revenue source for
FY 1996-97.
County Manager O'Neal reported with annexation of the entire
27 square miles, the sales tax for the City will increase by $2.4
million. The County and other municipalities will receive the
following decreases in the sales tax:
New Hanover County
Town of Wrightsville Beach
Town of Carolina Beach
Town of Kure Beach
$2,035,000
$ 200,000
$ 90,000
$ 85,000
Budget Director Griffin reported the impact of annexation will
be monitored by Staff and reports will be made to the Board as the
areas are annexed.
Commissioner Sisson requested direction from the Board as to
how the Fire Commission should handle budget requests from the
Volunteer Fire Departments that will be annexed by the City. He
advised that one Volunteer Fire Department had already executed a
contract with the City without informing the Fire Commission. He
presented the following items that will have to be considered
during the annexation process:
(1) Reduce the budget by the percentage of the response district
that is removed by annexation.
(2) The Volunteer Fire Departments will have to obtain a per call
amount from the City based on the current per call volume for
NEW HANOVER COUNTY BOARD OF COMMISSIONERS
BUDGET RETREAT, JANUARY 18, 1996
BOOK 25
PAGE 219
the pieces of County financed equipment that are being used to
respond to calls within the City.
(3) Continue to budget funds for the Volunteer Fire Departments
without taking annexation into consideration.
Commissioner Sisson advised that during the current fiscal
year the amount charged to the Volunteer Fire Departments by the
City to cover calls in the annexed areas will have to be refunded
by the County to the City because the Fire District tax has already
been collected from the citizens living in the annexed areas. In
order to avoid double taxation, the County will have to reimburse
the City. During FY 1996-97, the Fire District will be reduced by
the amount of land in the annexed areas and no payment will be due
to the City.
Chairman Greer recommended reducing the current budgets of the
Volunteer Fire Departments by the amount that will be due the City
ln the annexed areas.
Commissioner Sisson advised that recent equipment purchases by
the Ogden and Seagate Volunteer Fire Departments had been paid from
Fire District funds; therefore, when these areas are annexed, the
City will not be offsetting the Fire District's investment in the
equipment. Unfortunately, the City did not feel it was necessary
to discuss this matter with the Fire Commission before contracting
with the Seagate Volunteer Fire Department. The City was not aware
that the revenue stream was not based on each Volunteer Fire
Department, but on the needs of each department on an annual basis.
As of this date, Seagate will be totally eliminated as a fire
response district. The Winter Park Volunteer Fire Department will
lose approximately 40% of its fire response area, the Ogden
Volunteer Fire Department will lose 20%, and the Myrtle Grove
Volunteer Fire Department will lose 25%.
Discussion was held on the manner in which fire equipment was
addressed under the current contracts with the Volunteer Fire
Departments. Commissioner Sisson advised that if a Fire District
is eliminated, such as Seagate, the contract states that New
Hanover County can reclaim the equipment paid for and financed
since 1993.
Consensus: After discussion, it was the consensus of the Board to
deduct the amount charged by the City from the current budget of
the Volunteer Fire Departments. For FY 1996-97, the Fire
Commission should prepare budget requests according to the loss of
fire response areas in each Volunteer Fire Department because of
annexation.
Chairman Greer stated, in his opinion, the City and County
should move forward with merging the fire service.
DISCUSSION OF PORTERS NECK FIRE SUBSTATION
County Attorney Copley reported a call was received from Mr.
Tom Morgan, the Attorney representing the Ogden Volunteer Fire
Department, notifying the County that the Ogden Volunteer Fire
Department was not interested in receiving the $60,000 for
construction of the Porters Neck Fire Substation if the County
required joint ownership of the property. She advised that Mr.
Morgan was requested to forward a letter to the Board informing
them of this decision; however, no written response had been
received.
County Attorney Copley requested direction from the Board.
Chairman Greer reported he had heard on the radio that if the
County did not provide the funding, the Ogden Volunteer Fire
Department would proceed with constructing the Fire Substation. He
stated, personally, he would not have a problem with the building
NEW HANOVER COUNTY BOARD OF COMMISSIONERS
BUDGET RETREAT, JANUARY 18, 1996
BOOK 25
PAGE 220
being constructed by the fire department, particularly Slnce the
County would save $60,000.
Commissioner Caster asked if a Deed of Trust was needed?
County Attorney Copley explained that if the Ogden Volunteer
Fire Department refused to allow for joint ownership of the
property, the County could appropriate $60,000 for construction of
the building provided that a Deed of Trust was drawn that would
state, "if the Ogden Volunteer Fire Department ceases to have a
contract with the County for the provision of fire service, the
$60,000 would have to be returned." If the County does not provide
funding for the Fire Substation, there would be no contract.
Discussion was held on the ownership of equipment purchased
from Fire District funds. Commissioner Sisson advised that the
current contract with each Volunteer Fire Department states that if
a Volunteer Fire Department is disbanded, ceases to have a fire
response district wi thin the County, or the County ceases to
contract with a Volunteer Fire Department for fire protection
service, the Volunteer Fire Department must return any equipment
purchased from Fire District funds. If the title of the equipment
is in the name of the Volunteer Fire Department, a court procedure
would be required for return of the equipment if a Volunteer Fire
Department refused to return the equipment to the County.
County Attorney Copley advised that the current contract
requires return of any purchase over $5,000 since 1993.
Further discussion was held on the title of equipment
purchased with Fire District funds not being jointly owned by the
County. Chairman Greer stated he thought any purchase exceeding
$5,000 was jointly owned by the County.
Commissioner Barone responded that the County tried to
negotiate a contract for joint-ownership of any purchases over
$5,000; however, the Volunteer Fire Departments refused to sign the
contracts.
Chairman Greer reported that one way to resolve a conflict of
this type would be for the County to refuse to contract with the
Ogden Volunteer Fire Department. This action would automatically
stop any funding received from the Fire Service District.
Discussion was held on the inability of the County to perform
audi ts of the Volunteer Fire Departments because of State Law.
Commissioner Caster asked if the Fire Commission had been helpful
to the Budget Director in preparing budget recommendations?
Deputy County Manager, Andrew J. Atkinson, reported when the
Fire District was established, the intent of the County was to pay
for fire service needs within each fire district. Before the Fire
District was established, the Finance and Budget Departments could
not determine the needs of Volunteer Fire Departments. Once the
Fire District was established into seven districts, all budget
requests had to be submitted to the Fire Commission, who in return
review the requests and make funding recommendations to the Board
of County Commissioners. He reported this procedure had been
beneficial in trying to determine the needs; however, frequently
the Budget Director does not receive the information requested when
reviewing budgets.
Commissioner Sisson advised that personalities had been
removed from the budgeting process through utilization of the Fire
Commission. He informed the Board that if a Volunteer Fire
Department properly justifies its need for a piece of equipment,
the request was approved by the Fire Commission.
A lengthy discussion was held on the need for the County to
have more accountability of how Fire District funds are expended by
NEW HANOVER COUNTY BOARD OF COMMISSIONERS
BUDGET RETREAT, JANUARY 18, 1996
BOOK 25
PAGE 221
the Volunteer Fire Departments. Vice-Chairman Mathews asked what
could be done to require audits from the Volunteer Fire Departments
in order for the County to know exactly how funds are being
expended?
County Attorney Copley responded the County could approach the
local legislators about an amendment to the State Legislation.
Chairman Greer, again, reiterated that the County could refuse
to contract with a Volunteer Fire Department when a conflict area
cannot be resolved. He, also, advised that the City was interested
in working with the County to consolidate the fire service for the
entire County.
County Attorney Copley requested direction on the Porters Neck
Fire Substation. She advised that a meeting was held with all
parties involved, and the County agreed to fund $60,000 for
construction of the Fire Substation; pay $17,500 for half-ownership
of the property; enter into a mutual agreement to allow the County
to place EMS personnel on the site; and require pre-approval by the
County before co-signing a loan. At that meeting, it appeared that
these conditions were satisfactory with the Ogden Volunteer Fire
Department until a call was received from Attorney Morgan stating
otherwise.
Chairman Greer
conditions, then the
Department that New
after June 30, 1996,
stated if the Board has agreed to these
County should inform the Ogden Volunteer Fire
Hanover County will not renew its contract
with no funding received after that date.
Commissioner Caster noted that no official written
notification has been received from the Ogden Volunteer Fire
Department; therefore, this may not be the department's final
response.
After discussion of the proposed Fire Substation being
discussed for the past two years, it was generally agreed that the
Board would have to consider not renewing the contract with the
Ogden Volunteer Fire Department if this problem has not been
resolved by June 30, 1996.
DISCUSSION OF SCHOOL NEEDS
County Manager O'Neal advised that more information would be
available about school needs as budget information is developed by
the School Administrative Staff.
Commissioner Sisson commented on the need to see figures that
will bring the existing schools up to normal maintenance standards
and reported he would like a list of these needs and the cost
estimates.
Budget Director Griffin advised that by late spring, the
figures on the heating & air-conditioning and roof survey would be
available. Once these figures are presented by the School
Administrative Staff, the existing needs can be identified.
Discussion was held on the number of new schools that will not
open during the next fiscal year and the costs involved with
staffing and maintaining new schools. Concern was expressed for
the numerous State and Federal regulations that require new
positions, overload the teachers with paperwork, and limit the size
of classrooms creating a need for additional space. It was
generally agreed that until some of these regulations are changed,
the cost of schools will continue to increase.
County Manager O'Neal advised that he would be glad to contact
Mr. Bill Hance, the Assistant Superintendent of Schools, about
furnishing estimated figures on the cost of opening a new school.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS
BUDGET RETREAT, JANUARY 18, 1996
BOOK 25
PAGE 222
A lengthy discussion was held on the possibility of merging
school maintenance with the County Property Management Department
and merging the School Garage with the County Garage. County
Manager O'Neal cautioned the merging of these services under County
departments because of the liability that could be incurred by the
County. He pointed out that maintenance of school buses and school
facilities were no-win situations.
Discussion was held on the number of high-dollar items
requested in the School Budget. Commissioner Sisson commented on
having difficulty in understanding why so much emphasis was being
placed on computer technology in the elementary schools when this
technology would be outdated once the students reached the middle
school level. He stated with the exorbitant cost of software, he
felt computer courses should become an integral part of education
in the high schools so that students joining the workforce or
moving to higher levels of education would be better prepared to
use the latest technology.
Chairman Greer requested the Board to provide some form of
direction to the Budget Director as to the amount of funding for
New Hanover County Schools in FY 1996-97. He stated, personally,
he could not support the $2 million funding request.
Commissioner Sisson expressed concern for projecting a figure
without a better breakdown and explanation of expenditures. He
requested Staff to see if more details could be furnished on the
expenditures that had been presented by the School Administrative
Staff.
County Manager 0' Neal replied that Assistant Superintendent of
Schools, Bill Hance, had been most cooperative in trying to work
with the County in providing figures on the operational costs. He
agreed that more detailed information was needed and reported the
Budget Director would be working with Mr. Hance to secure this
information.
Discussion was held on the lncrease ln the debt serVlce.
Budget Director Griffin advised that the increase in the debt
service for New Hanover County Schools between FY 1995-96 and FY
1996-97 will be $1,193,630, which represents $1.35 cents on the tax
rate. The increase in the debt service for Cape Fear Community
College will be $239,892.
Chairman Greer reported it appears the County will be
requested to appropriate $2.5 million for the schools and Cape Fear
Community College in FY 1996-97. He requested Staff to provide
figures reflecting routine and preventative maintenance for all
existing schools as well as projected maintenance figures for the
new schools.
County Manager O'Neal responded that after the Budget Director
meets with the Assistant Superintendent of Schools, a detailed
report will be prepared on budget line items, the impact of state
and federal regulations on school cost projections, and maintenance
figures for existing and new schools.
Discussion was held on the status of the Siemens Building.
County Manager O'Neal reported he would contact the schools and
forward a status report on this project.
Discussion was held on cooperative agreements between New
Hanover County and the schools for the use of athletic facilities
and parks. County Manager O'Neal advised that the State of North
Carolina does not provide funding for maintenance of the athletic
fields or school facilities. He reported the County could become
more involved with use and maintenance of the parks and athletic
fields by transferring the funds now appropriated to the schools to
the Parks Department. This action would allow for better control
of maintaining the athletic fields; however, staffing in the Parks
NEW HANOVER COUNTY BOARD OF COMMISSIONERS
BUDGET RETREAT, JANUARY 18, 1996
BOOK 25
PAGE 223
Department would have to be increased. He requested direction from
the Board.
Consensus: After discussion of the need for athletic fields to be
fully utilized on a year-around basis, it was the consensus of the
Board to request the County Manager to prepare a draft
recommendation for the joint use of one or two facilities on a
trial basis.
Discussion was held on the personnel positions funded by the
County. Budget Director Griffin advised that New Hanover County
provides funding in the amount of $1,200,000 for salaries and
fringe benefits. Most of the positions are requested under the
School's policy and are not funded by the State.
A lengthy discussion was held on the lack of discipline in the
schools, which has created many of the maintenance problems,
particularly in the bathrooms. Commissioner Sisson recommended
establishing a policy that would hold parents responsible for the
destruction of school property.
Chairman Greer agreed and requested the County Attorney to
check into the legalities of creating such a policy.
County Attorney Copley advised that she would contact the
school attorney, Bill Hill, to see if some policy could be
developed to allow the schools to expel children for discipline
problems and hold parents responsible for payment of damage to
school property. Once the information is received, a report will
be prepared and forwarded to the Board.
vice-Chairman Mathews commented on the periodic visits by the
County Staff for inspection of maintenance at the schools and
requested the County Manager to include him on the next visit.
Discussion was held on maintenance personnel for Cape Fear
Community College. Chairman Greer requested the County Manager to
check into this matter and provide figures on these positions.
WELFARE REFORM
County Manager O'Neal advised there was no way to predict the
type of federal legislation that will be enacted for Welfare
Reform; however, it appears the reform will require more
responsibility and management of the programs on the local level.
Without any knowledge of federal Welfare Reform, it will be
difficult to prepare the FY 1996-97 Budget for the Department of
Social Services.
Chairman Greer commented on the federal fiscal year ending
September 30, 1995, and noted that a major concern for counties is
the spending of budgeted funds for programs in the current year
that may not receive federal reimbursement retro-active back to
October 1, 1995, which could cause a funding shortfall for many
local governments. He reported after serving on a state-wide Human
Services Task Force studying the Welfare Reform issue, no
determination has been made as to how federal funding will be cut.
Many people are in favor of change but are very reluctant to change
the system. Scare tactics are being used to frighten people into
believing that no provisions will be made to care for children and
other people in need of services. In his opinion, it has been
proven that the current Welfare System is not working; therefore,
changes must be made to control increasing costs of a program that
is not meeting the needs of the people.
Budget Director Griffin advised that the Department of Social
Services was very closely monitoring its expenditure of funds.
After further discussion of mandated programs, it was agreed
that all elected officials should challenge the system to change
NEW HANOVER COUNTY BOARD OF COMMISSIONERS
BUDGET RETREAT, JANUARY 18, 1996
BOOK 25
PAGE 224
State and Federal mandated regulations that have created tremendous
costs to local governments.
DISCUSSION OF NEW HANOVER COUNTY WATER AND SEWER DISTRICT
County Manager O'Neal expressed concern for the lack of time
spent during the budget process on the Water and Sewer District as
well as the Environmental Management Department. He requested the
Finance Director, Bruce Shell, to comment on the Water and Sewer
District.
Finance Director Shell presented the following charts:
(1) Comparison of revenues and expenditures with the difference of
expenditures over revenues covered by the transfer of the 1/2
cent sales tax. The revenues received are user fees and
impact fees. The impact fees are placed in an escrow account
to provide funding for capital projects. Currently, there is
a balance of $5.1 million in the escrow fund. Both user fees
and impact fees should continue to increase.
Discussion was held on the sales tax. Chairman Greer asked
what percentage of the 6% State sales tax was returned to the
County?
Finance Director Shell replied that 2% of the 6% sales tax is
returned to the County with one-half of a percent designated
to the schools and the remaining unrestricted one and one-half
percent transferred to the general fund with one-half percent
designated to the Water and Sewer District. Out of the
budgeted $23 million received from the sales tax revenue, $14
million is placed in the general fund with the remaining $9
million being divided as follows: $4 million to the schools
and $5 million to the Water and Sewer District.
County Manager 0' Neal reminded the Commissioners that the
sales tax receipts will be reduced once the City implements
its annexation plan.
Commissioner Sisson inquired as to what will happen when the
City annexes an area now under the County's sewer system?
Should the County give the system to the City for operation;
or should the County operate the system?
Assistant County Manager Weaver explained that the monthly
user fee was to pay for maintenance and operation of the
system; however, operation of the system had been less than
the revenues received; therefore, it would not be beneficial
to the County for the system to be given to the City. Also,
the current user fee is 10% less than the fee projected under
the original 201 Facilities Plan. The Board may wish to
consider increasing this fee. On the other hand, it does not
seem practical for two different entities to manage a sewer
system within one annexed area.
County Manager 0' Neal reported the County should consider
creating some type of utility arrangement that will allow
water and sewer to be operated under one entity to better
serve the citizens and alleviate confusion about the various
water and sewer systems.
Commissioner Sisson advised that some of the Volunteer Fire
Departments had been experiencing a problem with Mr. Dobo
placing hydrants in the older areas. It appears that Mr. Dobo
has hesitated to install the hydrants because he is
negotiating with the City for purchase of the water systems.
He reported only ten fire hydrants are involved, and he asked
if Staff could assist in being sure the hydrants are
installed, and if necessary, offer the use of County personnel
to install the hydrants with reimbursement from the Fire
District?
NEW HANOVER COUNTY BOARD OF COMMISSIONERS
BUDGET RETREAT, JANUARY 18, 1996
BOOK 25
PAGE 225
County Manager 0' Neal informed the Board that New Hanover
County could not require a privately owned system to install
the fire hydrants. Also, liability could be incurred by the
County with the use of County personnel.
Discussion was held on what will happen to the District's
customers when the City annexes an area. Assistant County
Manager Weaver replied that sewer customers will remain
customers of the District unless the sewer system is given to
the City.
(2) A chart reflecting the Water & Sewer District Debt Service was
presented. The debt service will gradually decrease from 1996
to 2005 and drop considerably in 2006.
Discussion was held on the impact fees in the escrow account
and the use of Certificates of Participation for financing the
construction of the Northside Wastewater Treatment Plant, the
Ogden Interceptor, and the NorthChase Interceptor at a
projected cost of $19 million. Finance Director Shell
reported the Board had decided to review the most attractive
financing alternative once a site has been selected for the
Northside Wastewater Treatment Plant and bids have been
received. At this time, Staff will evaluate financing
alternatives and decide if it would be more beneficial for the
County to borrow $19 million for the project with the funds in
the escrow account used to payoff the debt service, or pay
down the money in the escrow account and then borrow the
balance.
Chairman Greer requested the Finance Director to inform the
Board when the impact fees in the escrow account are used.
Also, if an agreement is negotiated with the City, the County
will still be required to construct the Ogden Interceptor at
approximately four to five million dollars.
(3) Miscellaneous Information on the Water and Sewer District:
The following charts were presented:
-Estimated taxable property assessed value, $4.1 million.
-Estimated 1996-97 sewer user fee revenue, $5.1 million.
-Estimated 1996-97 water user fee revenue, $437,000.
-Estimated 1996-97 Customer Base, 20,500.
(4) Water and Sewer District Fund Balance: The following figures
were presented:
Operating Fund:
Fund Balance 6-30-95
Reserved for City capacity NWTP
Fund Balance Available
Less Priority List
Remaining Fund Balance
$4,906,747
(200,000)
4,706,747
(4,048,450)
$ 658,297
The Operating Fund had an lncome of $990,701 in
FY 1994-95.
Escrow Fund (Impact Fees for Northside WWTP):
Fund Balance 6-30-95
$4,443,904
$4,443,904
Fund Balance Available
The remaining fund balance will be used for the
Northside WWTP in order to reduce the amount of
financing required.
The following projects were listed:
NEW HANOVER COUNTY BOARD OF COMMISSIONERS
BUDGET RETREAT, JANUARY 18, 1996
First Priority:
Upgrade Hewlett's & Bradley Creek Pump Stations
Water Line - Murrayville Road to NorthChase
Northside Wastewater Treatment Plant (COPS)
Ogden Interceptor (COPS)
Kingsland Woods
Timber Creek Force Main
Leeward Lane
Groundwater Study
1-40 Interchange
NorthChase WWTP - Transfer flow to Northside WWTP
Horndale Drive
Motts Creek Project
Ogden Water Tank
NorthChase Interceptor (COPS)
Wheel Estates Mobile Home Park
Capacity Study for Southside WWTP
SUBTOTAL
Second Priority:
8" Force Main from Weatherwood Pump Station
Bore across M.L.R. to Quailwoods (Completed)
Greenville Trailer Park/Peiffer Avenue Outfall
Upgrade Alford L.S. #40
Camelot Trailer Park
Dogwood Trailer Park
College View Trailer Park
Abandon Between the Creek Lift Station
Eagles Nest
Whisper Creek
Abandon Sun Court Lift Station
Abandon Crosswinds Lift Station
Iris Street
Cedar Island
Road up from Silva Terra
Abandon existing Millbrook Lift Station
SUBTOTAL
Less COPS
TOTAL
BOOK 25
PAGE 226
$ 408,000
$ 200,000
$12,000,000
$ 5,000,000
$ 42,000
$ 50,000
$ 30,000
$ 120,000
$ 275,000
$ 100,000
$ 60,000
$ 1,600,000
$ 100,000
$ 2,000,000
$ 120,000
$ 15,000
$22,285,000
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
35,000
10,000
66,950
120,000
15,000
23,000
65,000
16,000
129,000
121,000
31,500
30,000
25,000
35,000
35,000
6,000
763,450
$23,048,450
(19,000,000)
$ 4,048,450
Chairman Greer commented on the need of an additional position
to assist the County Engineer in handling the volume of work.
Assistant County Manager Weaver advised that a reorganization
of the Water and Sewer Department was being prepared with a request
for some new positions and reclassification of existing positions.
He reported the reorganization process was late because the
department was waiting to see if consolidation would occur.
DISCUSSION OF ENVIRONMENTAL MANAGEMENT FUND
County Manager O'Neal reported Congress had not dealt with
flow control legislation; therefore, this is an unknown issue at
the current time. As to the development of the Construction and
Debris (C&D) facility, Staff has been directed to involve the
private sector in the planning process. A proposal will be
presented to the Board that will not include a MRF Facility.
Commissioner Sisson stated he felt joint ventures could be
negotiated to include the private sector without the County having
complete control over the operation.
Chairman Greer agreed. He stated rebar was an example of a
material that needs to be removed from the incinerator because of
the damage to the facility as well as damage to hauler trucks. A
policy could be developed to prohibit rebar from coming to the
incinerator except in containers, which will require the haulers to
take the materials to the private sector for disposal of the
product.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS
BUDGET RETREAT, JANUARY 18, 1996
BOOK 25
PAGE 227
Assistant County Manager Weaver
in the past until a private hauler
smaller boxes. At that time, the
smaller boxes to remain competitive.
therefore, it would be an ideal time
containers.
reported this was the policy
came into the County with
other haulers converted to
This company has been sold;
for the haulers to use large
Chairman Greer, again, recommended adopting a policy that will
prohibit rebar from the incinerator, which will allow the haulers
to decide whether to use boxes or front-end loaders.
Discussion was held on using Keys, Inc. in lieu of the City
for processlng recyclable materials. Commissioner Caster
recommended bidding out this process. It was generally agreed to
request Staff to check into bidding out the job.
The following charts were presented:
(a) Revenue Comparisons from Tip Fees, Electrical & Steam Sales,
and Transfers to the Environmental Management Fund from FY
1991 to 1995.
(b) Expenditures Comparisons for the Landfill, WASTEC Facility,
Administrative & Recycling and Environmental Debt Service from
FY 1991 to 1995.
(c) Environmental Management Total Expenditures from FY 1991 to
1995.
(d) Environmental Management Tonnage from FY 1991 to 1995.
(e) Environmental Management Debt Service.
DISCUSSION OF EMERGENCY MEDICAL SERVICES
County Attorney Copley reported the County has withheld the
last two quarterly payments of $19,000 each to the Ogden-New
Hanover Rescue Squad because the squad has not complied to the
coverage schedule as outlined in the contract. The Legal
Department has been contacted by the Ogden-New Hanover Rescue Squad
expressing concern for withholding the payments since this
condition was not stipulated in the contract. The question to be
answered is whether the County should make a partial payment for
the services provided.
Commissioner Caster requested an explanation as to how the
County determined that the contract obligations had not been
fulfilled.
County Manager 0' Neal reported the records prove that the
schedule made by the Ogden-New Hanover Rescue Squad had not been
fulfilled as outlined in the current contract. This non-compliance
has occurred because there are not enough volunteers working during
the hours of coverage needed by the County. Since this schedule
has not been met for the past several years, he made the decision
to withhold payments for the last two quarters.
Discussion was held on the location of the two rescue squad
facilities on Military Cut-Off Road and Carolina Beach Road.
County Manager O'Neal reported these locations did not meet the
needs of the County; therefore, the Board may wish to continue with
the contractual arrangement with the Ogden-New Hanover Rescue Squad
through the current year. During this period of time, Staff can
investigate other arrangements. He pointed out that implementing
12-hour shifts in the Emergency Medical Services Department would
resolve the problem because there would be no need for housing.
County Attorney Copley reported if the County does not
contract with the Ogden-New Hanover Rescue Squad, the County will
have to implement 12-hour shifts or find new facilities.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS
BUDGET RETREAT, JANUARY 18, 1996
BOOK 25
PAGE 228
Consensus: After discussion, it was the consensus of the Board to
release the quarterly payments to the Ogden-New Hanover Rescue
Squad and inform them that unless the conditions of the contract
are met, the contract will not be renewed at the beginning of
Fiscal Year 1996-97. Staff was directed to investigate other
alternatives.
DISCUSSION OF CELLULAR TOWERS
County Attorney Copley advised that the Planning Board had
prepared a Text Amendment recommending that cellular towers could
be placed by right in B-1 and B-2 districts. In all other zoning
districts, a Special Use Permit would be required. She asked the
Board if this item should be placed on the February agenda, or if
the Board would prefer for the owners of the companies to appear
before the Planning Board with this item being addressed by the
Commissioners at the first meeting in March.
Consensus: After discussion of the need to move forward with this
issue, it was the consensus of the Board for this item to be
presented at the first meeting in February.
DISCUSSION OF THE NEW HANOVER COUNTY ARBORETUM RECEPTION CENTER
County Manager 0' Neal reported the County agreed to fund
$40,000 for construction of a Reception Center at the New Hanover
County Arboretum with the Arboretum Foundation contributing
approximately $60,000. He asked if the Board would prefer making
a contribution to the Arboretum Foundation with this agency being
responsible for the design and contracting of the building, or
would the Board prefer for the County to oversee the project, which
will require a more stringent bidding process including bonding
requirements.
County Attorney Copley advised that either the County or the
Arboretum would have to be responsible for the project; therefore,
the $40,000 should be donated with control of the project by the
Arboretum Foundation, or the County should control the entire
project according to bidding requirements under State Law.
Consensus: After discussion of the proj ect being more costly under
the State bidding requirements, it was the consensus of the Board
to donate the $40,000 to the Arboretum Foundation for construction
of the Reception Center contingent upon the Board approving the
final plan as to aesthetics.
DISCUSSION OF REQUESTED CAPITAL PROJECTS
County Manager O'Neal presented a list of requested Capital
Projects.
Discussion was held on the construction of a northeast branch
library to serve the citizens in that area of the County. This
facility would replace the Plaza East Branch Library.
Further discussion was held on the need for placement of a
branch library in the Castle Hayne/Wrightsboro area. The Board
concluded that construction of the northeast branch library should
be placed on hold until Staff could prepare recommendations to
consider placing a branch library in the Castle Hayne/Wrightsboro
area.
After a review of the other capital projects, it was concluded
that more time was needed to study each request.
Commissioner Barone advised the Board and Staff that she would
be opposed to an increase in the property tax for the FY 1996-97
budget.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS
BUDGET RETREAT, JANUARY 18, 1996
BOOK 25
PAGE 229
ADJOURNMENT
Chairman Greer adjourned the meeting at 4:30 P.M.
Respectfully submitted,
Lucie F. Harrell
Clerk to the Board