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HomeMy WebLinkAbout1993-04-16 Budget Work Session NEW HANOVER COUNTY BOARD OF COMMISSIONERS BUDGET WORK SESSION, APRIL 16, 1993 BOOK 23 PAGE 411 ASSEMBLY The New Hanover County Board of Commissioners held a Budget Work Session on Friday, April 16, 1993, at 10:30 A.M. in Room 501, located in the New Hanover County Administration Building, 320 Chestnut Street, Wilmington, North Carolina. Members present were: Commissioners Sandra Barone; WilliamA. 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 RECOMMENDED BUDGET FOR FY 1993-94 County Manager O'Neal presented the recommended budget for FY 1993-94 and emphasized the fact that no directives or priorities have been established by the Commissioners; therefore, the budget has been presented with the funding needed to provide the current level of services and programs now being rendered. After review of departmental budget requests, staff has recommended a tax increase of 3 cents to meet a funding shortfall of $2,223,000 and an additional tax increase of 2 cents to finance a portion of the debt service on the Waste-to-Energy Facility. This tax increase will allow the tipping fee to remain at its current level. The increase of 3 cents in the tax rate will fund an increase for the school system in the amount of $1,445,279 and an increase in the Department of Social Services in the amount of $731,799. The recommended budget, excluding the transfer to Environmental Management, represents a 10.4% increase over the FY 1992-93 adopted budget. The proposed budget includes a 9% increase in County funding for DSS programs. The major factor leading to the increase is mandated human services programs, especially Medicaid where an increase of $657,788 (or 27%) in County funding is estimated. The increase in expenditures for all County programs, excluding human services and education, is 7%. An increase of 7.5% is recommended for the schools. The Board of Education has tentatively requested a 13% increase in the amount of $2,345,587 in the County's contribution for operating expenditures and an additional $7,560,000 for capital expenditures. This exceeds the County's recommended amount by $7,279,946. The schools have not formally presented a requested budget and are not required by law to do so until May 15. County dollars in the Health Department budget decreased by $243,648 due to revenue related to the Rankin Clinic and the elimination of several programs. County dollars will increase by $16,702 in the Southeastern Center's budget, which is $57,623 less than requested. The recommended amount is based on all counties paying the same per capita amount. In the past, New Hanover County has paid a greater per capita amount than the other two counties. An increase of $100,000 (or 10.5%) is recommended for Cape Fear Community College, which is $156,248 less than requested. The increase will be used primarily to fund the installation of a fire alarm system. In the past, Cape Fear Community College had a local fund balance for projects of this type, but due to funds needed for operation of the college this fund balance is no longer available. Of the 41 positions requested by County Departments, a total of 9 ~ positions is recommended ln the General Fund as follows: A Tax Mapper I position in the Tax Department to assist with the continued implementation of the Mapping Program. Without NEW HANOVER COUNTY BOARD OF COMMISSIONERS BUDGET WORK SESSION, APRIL 16, 1993 BOOK 23 PAGE 412 this position, the program will continue to fall further behind. A Computer-Assisted Dispatcher position to assist with the Computer-Aided Dispatch Program. This position will be funded from the current 911 surcharge. A Zoning Enforcement Officer position to assist with the enforcement of the billboard and sign ordinance, which will require a great deal more staff time as non-conforming billboards and signs are monitored. This item was an intense public issue and the citizens expect this regulation to be enforced and monitored. A half-time Public Health Nurse I position in the Child Health Services Coordination Program and a Public Health Educator I position for Project Assist at the Health Department. If approved, both positions will be funded by grant funds. Two positions for the Support Enforcement Program at the Department of Social Services to assist with the collection of child support. These positions generate funds for the County. An Accounting Technician III position to assist with processing payments to the private sector day care providers for DSS clients. A Groundskeeper position and Tradesworker I position in the Parks Department to assist with maintenance of the expanding number of parks in the County. Reductions have been made in a number of non-county agencies. The human services agencies are funded at 70% of the FY 1992-93 level. REVENUE It is estimated that the tax base will increase by 3.4%. This is based on the most current information supplied by the Tax Department. An increase of 5% is estimated in receipts from the sales tax. This is based on information from the N. C. Association of County Commissioners and the sales tax revenue to date. No fund balance is recommended for appropriation ln this year's budget in an effort to continue to rebuild the County's fund balance. An adequate fund balance is important for the following reasons: (1) to maintain a strong financial position; (2) to have funds available in case of an emergency or unexpected event; (3) to have funds available to run the County until tax revenues are received in January of each year; (4) to maximize the investment earnings; and (5) to maintain an Aa bond rating. Inspections fees are estimated to lncrease 16% over the current budgeted amount. The transfer of funds from the Fire Service District will cover all the costs related to the Fire Marshal's acti vi ties. In previous years, only the actual fire investigation time for the Fire Marshal was charged to the Fire District. The Inspections Department will become self-supporting. Emergency Medical Services' revenues are estimated to be $100,000 lower than budget this fiscal year. This is based on actual receipts to date and changes in the method of reimbursement. MAJOR ISSUES TO BE RESOLVED PRIOR TO ADOPTION OF THE FY 1993-94 BUDGET The current recommendation for the Environmental Management Fund is that $1,482,000 or 2 cents of the tax rate will be transferred from the General Fund and $1,142,643 of the undesignated portion of the half-cent sales tax will be used to NEW HANOVER COUNTY BOARD OF COMMISSIONERS BUDGET WORK SESSION, APRIL 16, 1993 BOOK 23 PAGE 413 balance this fund. This will keep the tipping fee at the current level and fund the first year of the Maintenance Upgrade Plan. The County Manager's first budget priority is funding a pay plan adjustment for County employees. The County has a significant investment in each employee. If employees leave due to a lack of adequate compensation, there will be a significant cost to the County for the hiring and training of new employees. An amount of $2,000,000 is included for re-establishment of the merit program and a pay plan adjustment for County employees. No money for merit increases was budgeted in either FY 1991-92 or FY 1992-93. Nor was there a market adjustment made to the play plan for FY 1992-93. An adjustment of 8 percent is included in the salary projections to be used to fund a market adjustment in order to maintain a competitive pay plan and provide funds for salary growth based on merit for deserving employees. The cost of the Computer-Aided Dispatch Program (requested by the Sheriff's Department) can be funded by the 911 surcharge. While this will not impact the general fund, it will mean the County must continue to collect the 911 surcharge at least until the end of FY 1993-94. There will also be an on-going operating costs. An amount of $300,000 is included for transfer to capital proj ects. This is recommended to fund the debt service on the proposed animal control facility and a radio tower for the 800mhz communication project. The Commissioners may wish to fund other or additional capital projects. There were numerous capital needs requested and not addressed including expansion or improvements at the Health Department, Senior Center, Cooperative Extension Center, Emergency Operations Center for Emergency Services, and Department of Social Services. There may also be a need to expand the jail in the near future. The New Hanover County Schools and Cape Fear Community College are planning to present bond referendums to the voters in the next fiscal year. The County must continue to pay debt service on bonds that voters approved in recent referendums for the Museum, Senior Center, and Parks. An amount of $165,718 lS included for continued implementation of the MAPS Program. This is a geographic information system that will automate the mapping process for all county departments. The program is falling further behind and unable to function as it should with the current level of funding. A decision needs to be made to fund this program at an adequate increased level or stop funding it and lose all the resources and time that have been put into the program to date. The County has a substantial investment in this program, but the benefits will not be realized unless we are willing to adequately fund the program. Funding in the amount of $325,000 is not included for the orthophotography that will be needed for the MAPS Program. This expenditure could be spread over two years and may be shared with the General Fund and the Water and Sewer District. This could be funded in FY 1994-95 and FY 1995-96. An amount of $382,000 is included in the Sheriff's Department budget to continue implementation of the Criminal Justice Computer System. Funds for the project are from a federal grant and federally-forfeited funds received by the Sheriff's Department. An amount of $10,000 is included ln the Finance Department's budget to fund a consultant to conduct a total Quality Management Program for the department. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BUDGET WORK SESSION, APRIL 16, 1993 BOOK 23 PAGE 414 An amount of $20,000 is included in the Planning Department for water quality studies conducted as part of the County's Estuarine Management Program. An amount of $38,284 is included for a long-term disability policy to cover all County employees. Benefits equaling 60% of an employee's monthly salary, up to a maximum of $5,000 will be provided when the employee is totally disabled as a result of injury or sickness, and is under the regular care of a doctor. Benefits will be paid up to 24 months if the insured is totally disabled to perform on a full-time basis all of the material and substantial duties of his or her occupation because of disability that started while insured. Funds are not included for a position to handle the wireless communication needs of the County. Due to a recent vacancy in the MIS Department, the MIS Director is currently looking at the best way to fill this need. Plans are being formulated to recommend an additional position for this function. The investment made by the County in radios is sizeable. Our communication needs will continue to increase in complexity especially in the public safety area. Funds are not included for a Performance Auditor. This position would save the County money by providing an overall review of functions and services for improvements and efficiencies. The auditor could streamline departmental operations by eliminating steps as well as coordinating activities within and between departments. No positions are included to staff the recently expanded Museum, new Senior Center, or Myrtle Grove Branch Library. No funds are included for the outposting of DSS staff. DSS requested funds to move 37 of its employees to another location since the building is overcrowded. No funds contribution policy, the 1991-92 and estimated to are included for an increase in the County's for medical insurance. By making changes to the County's contribution remained the same between FY FY 1992-93. The medical insurance contribution lS remain constant for the next fiscal year. In summary, while services were not severely impacted ln the current year, continuation of departmental budgets at a no- lncrease, or decrease mode will seriously affect services and reduce the efficiency of County operations. Additional significant cuts cannot be made without eliminating or greatly reducing entire programs or departments. A period of questions and answers followed with the following comments received: Staff was requested to highlight any funding request that lS part of a mandated program. Concern for recommending no funding for DARE and reducing the funding requests for the beach communities. Assurance that the Inspection Department will not be making a profit. Emphasis was placed on the importance of not increasing permitting fees unless necessary. Support for a bill that has been introduced which will require insurance carriers to issue a provider number to counties for reimbursement of emergency medical services. It was concluded that more pressure should be exerted on insurance companies by the Legislature if counties are going to continue to provide health services. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BUDGET WORK SESSION, APRIL 16, 1993 BOOK 23 PAGE 415 Concern for transferring monies collected from the ~ cent sales tax from the Water and Sewer District to the Waste-to- Energy Facility. If this process continues, the Water and Sewer Fund Balance will be in a critical condition since the additional funds needed for repayment of the debt service are now being removed from this balance. Caution was expressed for continuing to transfer these funds out of the Water and Sewer District, which will eventually impact on the expansion of the Sewer System. After further discussion, the following conclusions were drawn: 1) Recommend that Staff consider requesting various departments utilizing a system or service to budget their proportionate share. For example, the 800 mhz system will benefit the firefighting services; therefore, the Fire District should budget a proportionate share for the purchase and maintenance of the system instead of removing the entire amount from the General Fund. 2) In an effort to decrease staff time and costs, the County Manager was directed to prepare a well-defined outline of the proposed FY 1993-94 Budget that can be reviewed by the public, not the recommended budget book that has been prepared in the past. 3) Schedule a Work Session for discussion of the Pay and Classification Plan. 4) Schedule a Budget Work Session on April 29, 1993, at 7:00 P.M. in the 1st Floor Assembly Room located in the New Hanover County Administration Building. The Commissioners are to submit questions and comments on the proposed budget to the County Manager by April 22, 1993. ADJOURNMENT Chairman Greer adjourned the Work Session at 12:30 P.M. Respectfully submitted, Lucie F. Harrell Clerk to the Board . . ,-. ~ MINUTES OF BUDGET WORK SESSION, APRIL 16, 1993 PAGE 415 Concern for transferring monies collected from the 1/2 cent sales tax from the Water and Sewer District to the Waste-to- Energy Facility. If this process continues, the Water and Sewer Fund Balance will be in a critical condition since the additional funds needed for repayment of the debt service are now being removed from this balance. caution was expressed for continuing to transfer these funds out of the Water and Sewer District, which will eventually impact on the expansion of the Sewer System. After further discussion, the following conclusions were drawn: 1) Recommend that Staff consider requesting various departments utilizing a system or service to budget their proportionate share. For example, the 800 mhz system will benefit the firefighting services; therefore, the Fire District should budget a proportionate share for the purchase and maintenance of the system instead of removing the entire amount from the General Fund. 2) In an effort to decrease staff time and costs, the County Manager was directed to prepare a well-defined outline of the proposed FY 1993-94 Budget that can be reviewed by the public, not the recommended budget book that has been prepared in the past. 3) Schedule a Work Session for discussion of the Pay and Classification Plan. 4) Schedule a Budget Work Session on April 29, 1993, at 7:00 P.M. in the 1st Floor Assembly Room located in the New Hanover County Administration Building. The Commissioners are to submit questions and comments on the proposed budget to the County Manager by April 22, 1993. ADJOURNMENT Chairman Greer adjourned the Work Session at 12:30 P.M. ~~~ Lucie F. Harrell Clerk to the Board ~