HomeMy WebLinkAbout2008-04-21 Budget Work Session
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 31
BUDGET WORK SESSION, APRIL 21, 2008 PAGE 354
ASSEMBLY
The New Hanover County Board of Commissioners held a Budget Work Session on Monday, April 21,
2008, at 1:51 p.m. in the Assembly Room of the New Hanover County Courthouse, 24 North Third Street,
Wilmington, NC.
Members present were: Chairman Robert G. Greer; Vice-Chairman William A. Caster; Commissioner Ted
Davis, Jr.; Commissioner William A. Kopp; Commissioner Nancy H. Pritchett; County Attorney Wanda M. Copley;
Clerk to the Board Sheila L. Schult; and County Manager Bruce T. Shell.
Others present were: Assistant County Manager Andre? Mallette, Assistant County Manager Chris
Coudriet, Finance Director Avril Pinder; Budget Director Cam Griffin; Senior Budget Analyst Beth Schrader; and
Budget Analyst Donna Seal.
Chairman Greer called the meeting to order and requested County Manager Bruce Shell present the FY08-
09 Recommended Budget.
County Manager Bruce Shell reported that the FY08-09 Recommended Budget has been balanced with a
45.4 cents tax rate. The 3.4 cents above the FY07-08 tax rate of 42 cents is necessary to fund increased debt service
and correct the error in the tax base.
The FY08-09 Recommended Budget is less than the FY07-08 Adopted Budget. The value of a penny is
$3.3 million. Since the Budget Work Session in March, staff has eliminated a 5.1 cents, or $16.8 million, gap in the
budget.
County Manager Shell continued highlighting the following information:
?
FY07-08 Budget was balanced with one-time revenue, which is not available for FY08-09. In FY07-08 an
amount of $1.5 million was transferred in from capital projects and the ABC Board donated $.5 million to
the County for law enforcement.
?
FY08-09 Inspections revenue is anticipated to be $2 million less than the FY07-08 adopted amount. If the
building industry picks up during FY08-09, revenue and related expenditures may need to be adjusted for
Inspections and Register of Deeds.
?
An amount of $6 million is budgeted in fund balance. It is anticipated that unreserved/undesignated fund
balance will equal $39 million, or below 15%, on June 30, 2008. The County will not use all of the fund
balance recommended to be budgeted during FY08-09; but will probably use some of it. Using fund
balance would lower the unreserved/undesignated fund balance below 15% on June 30, 2009.
?
A negative amount of $1.7 million is budgeted in the General Fund as a salary reduction factor. No
additional steps should be necessary to achieve this savings. If position turnover decreases due to economic
conditions, positions can be held vacant to achieve the savings.
?
Sales tax is budgeted at 5% over FY06-07 actual, adjusted for Medicaid/Sales Tax Swap adjustment.
FY08-09 funding resulting from the Medicaid Sales Tax Swap ($1.2 million) is budgeted to balance the
FY08-09 budget.
?
A total of fourteen positions are recommended for FY08-09 in the General Fund. The positions are
budgeted for one-half year. Funding additional requested positions would lead to a more efficient
operation of County Government.
?
The fourteen recommended positions are:
3 Health Department (positions funded by grants and Medicaid)
o
1 Finance Auditor (self funded)
o
1 IT Department
o
5 Parks
o
2 Department of Social Services (partially funded by Federal $)
o
2 Tax Appraisers
o
?
Sufficient funds are budgeted for a 1% salary adjustment. The current plan is to budget this as a 2%
increase for one-half year. This is less than ½ of the current Consumer Price Index increase.
?
No increase in funding is required for employee health insurance. This will be the second year in a row
that no increase is required. It is possible that the Health Stat program has helped to eliminate the need for
an increase in health insurance.
?
Juvenile Crime Prevention funds are currently recommended at $473,156. Juvenile Crime Prevention
funds must be reviewed by the Legislature each year prior to being included in the budget. If the
Legislature does not include these funds in the budget, there will be a funding shortfall in the Juvenile Day
Treatment Program of $201,161 and the Psychological Services Program of $271,995. New Hanover
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 31
BUDGET WORK SESSION, APRIL 21, 2008 PAGE 355
County assumed management of the Psychological Services Program from Southeastern Mental Health on
July 1, 2007.
?
The County must hold the Schools harmless for the ADM funds ($848,818) that the schools lost as part of
the Medicaid elimination program. These funds could be used to offset school debt or to fund capital
projects. The way the budget is currently recommended, neither these funds nor the school lottery funds
are used to fund the School debt. School operating increase is budgeted at 3% and capital outlay is
budgeted at $0. An increase of 3% is budgeted in school operating expenses. No funds are recommended
for school capital outlay. An increase of $2.4 million is necessary to fund increasing debt service. This
level of funding may have a negative impact on the Schools if significant salary adjustments are awarded
by the state. The Schools can use ADM Capital or Lottery funds to fund a portion of their capital needs
and debt service. Funding for the Schools operating and capital expenditures is basically constant from
FY07-08 to FY08-09. (Decrease is $86,000 or 0.1 %.) The FY08-09 Recommended General Fund budget,
excluding funding for education, is 3.3% less than the FY07-08 Adopted General Fund budget.
?
No funds are recommended for the plan to End Homelessness.
?
No new outside agencies are funded, and agencies that are currently funded are budgeted at 90% of their
FY07-08 adopted amount.
?
WAVE is budgeted at the FY07-08 adopted amount $147,710; an amount of $219,721 was requested.
?
An amount of $250,000 was requested for Thalian Hall and no funds were recommended.
?
An amount of $1,643,584 is budgeted for Southeastern Center. This is the amount that was approved two
years ago and $700,000 less than the SE Center requested.
?
No funds are recommended in the FY08-09 budget to continue the radio replacement program. Not funding
radios now will impact the County in future years.
?
No funds are included for the Wellness Program. Assumption is that the grant will be received or unused
funds can be carried over from FY07-08 Health Stat program.
?
Customer Service Training was requested at $130,000 and recommended at $30,000. There may be unused
funds to carry over from FY07-08.
?
An amount of $100,000 was requested to continue implementing the Museum Master Plan, but $50,000 is
recommended.
?
Funding for training and travel has been reduced $156,000, or 20%, from FY07-08 adopted amount.
?
Funding is not included for an additional attorney and paralegal in Department of Social Services. If the
additional attorney and paralegal added during FY07-08 and existing legal staff of Department of Social
Services is not capable of meeting the needs of the Department, the need for the requested positions may be
reviewed mid-year.
?
The budget with the recommended tax rate does not take a long-term view.
?
Not reserving funds for a shortfall when the County must continue to reimburse municipalities for their loss
of Article 44 sales tax, including growth in FY10-11, will impact the budget.
?
Employee compensation is not keeping up with CPI, which may hinder recruitment for positions and lead
to greater turnover.
?
The revenue estimates in this budget are realistic, but not conservative. Major shifts in economic
conditions may impact the budget. In FY08-09 Inspection revenue is anticipated to be $2 million less than
the FY07-08 adopted amount. Register of Deeds revenue is anticipated to be $560,000 less.
?
The Fire Service District is balanced with the current 5 cents tax rate. A total of five positions are
recommended.
In closing, County Manager Shell reported that if the Board has different priorities please let staff know.
Budget Director Cam Griffin and County Manager Shell responded to questions from the Board.
After brief discussion the Board scheduled a budget work session at 2:30 p.m. on May 15, 2008 before the
regularly scheduled Agenda Review meeting.
A copy of the April 21, 2008 FY08-09 Budget Work Session presentation is available for review in the
Budget Department.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 31
BUDGET WORK SESSION, APRIL 21, 2008 PAGE 356
ADJOURNMENT
There being no further business, Chairman Greer adjourned the meeting at 3:22 p.m.
Respectfully submitted,
Sheila L. Schult
Clerk to the Board