2010-05-06 Budget Work Session NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 31
BUDGET WORK SESSION OF MAY 6,2010 PAGE 823
ASSEMBLY
The New Hanover County Board of Commissioners held a Budget Work Session on Thursday, May 6,
2010, at 2:00 p.m. in the Lucie F. Harrell Conference Room of the New Hanover County Government Center, 230
Government Center Drive,Wilmington,North Carolina.
Members present were Chairman Jason R. Thompson; Vice-Chairman Jonathan Barfield, Jr.;
Commissioner Robert G. Greer; Commissioner William A. Caster; Commissioner Ted Davis, Jr.; Budget Director
Cam Griffin, County Manager Bruce T. Shell;and Deputy Clerk to the Board Teresa P.Elmore.
Chairman Thompson called the meeting to order and announced that the Board needed to clarify their vote
from the Regular Meeting that was held on May 3, 2010.
CONSENSUS VOTE CLARIFYING THE MOTION MADE AT THE BOARD'S MAY 3, 2010 MEETING
APPROVING THE AMENDMENT TO ARTICLES II, V, VI, AND VII OF THE ZONING ORDINANCE
TO DEFINE AND SPECIFY STANDARDS FOR ELECTRONIC GAMING OPERATIONS AND THE
TABLE OF PERMITTED USES ALLOWING ELECTRONIC GAMING OPERATIONS PERMITTED BY
SPECIAL USE PERMIT IN B-2 AND I-1 DISTRICTS WHEN THE STANDARDS ARE MET AND BY-
RIGHT AS AN ACCESSORY USE IN B-1,B-2,I-1 AND I-2 DISTRICTS
Chairman Thompson reported that at the Board's May 3, 2010 meeting,the Board voted 4 to 1 to approve
amending the County's Zoning Ordinance Articles II, V, VI, and VII to add standards for electronic gaming
operations and the table of permitted uses allowing electronic gaming operations by special use permit in B-2 and I-
1 Districts when the standards are met and by-right as an accessory use in B-1,B-2,I-1 and I-2 Districts.
In the motion to approve the text amendment, Commissioner Greer included a change in Section 72-40,
#11, to change "within 24 months" to "within 60 months." Chairman Thompson made the second to the motion.
The reference "within 24 months" is also noted in Section 69.19, #5, and in order for the Zoning Ordinance to be
consistent,a consensus vote from the Board is needed.
Chairman Thompson requested direction from the Board.
Consensus: The Commissioners agreed to change "within 24 months" consistently to "within 60 months" in
Section 72-40 of the Zoning Ordinance. Commissioner Davis stated that he had voted in opposition to the revisions
made to the text amendment and therefore, did not agree with the change.
BUDGET WORK SESSION
County Manager Shell presented updates to the draft recommended Budget for FY 2010-2011 and the
Commissioners discussed each of the following issues:
Assumptions for FY10-11 Budget
• Recommended increase in tax rate= 1.6 cents
0 1 cent for voter-approved bonded debt
• Union Station and Cosmetology Building=$70 million
• NEC Schools Bonded Debt= $323,793
• Salary lag same as FY09-10= $1 million
• No change in tax collection fee= 1.75%
• Successful 1/4 cent sales tax referendum
• Technical administrative changes of August 2009 may reduce first year funding from$5 million to
$4.1 million
• NCACC and School of Government working with Onslow, Duplin and New Hanover Counties to
change effective date to collect tax back to October 2010
• No change in Inspections fee plan
• 85 frozen positions-recommend to unfreeze 4 social worker/case worker positions
• Furlough Proposal
• Change manner and amount of furlough to be constant for all pay periods - Impact of 1.154%
decrease in salary
• Unpaid furloughs reduced from 10 to 3 days($250,000 per day)
• Furlough assigned by the County to accompany the Labor Day holiday; Easter holiday, and
Memorial Day holiday
• Advantages to the County for assigned furloughs
• Reduce utility usage
• Better staffing of operations
• Public will see impact
• Allow all to participate in furlough
• Less difficulty in administration of furlough
• County and Employee cost of Health Insurance increase=$900,000
0 2/3 passed on to County employees= $600,000
o County portion= $300,000
• No funding for Legion Stadium($300,000 from Schools closed pension fund available)
• No funds budgeted for arts group/council
• No funds for film festival - $40,000 requested
• Contract for Soccerplex on US Highway 421 completed-no funding included
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 31
BUDGET WORK SESSION OF MAY 6,2010 PAGE 824
• No funds for vehicle or PC replacement program
0 10 replacement vehicles recommended for Sheriff s Department
• No roadside pickup program budgeted for FYI 0-11 (program not operating)
• Reduction in optional funding for the Courts
0 Decrease of$14,500
• Outside Agencies funded at FY09-10 level
• No funding for new Outside Agencies
• No contingency for State unfunded mandates or program shifts(major concern)
• Schools recommended funding at FY09-10 level
o Requested$1.8 additional funding
• CFCC recommended funding at FY09-10 level
• Southeastern Center recommended funding at FY09-10 level
• No funding for Capital Improvement Projects
o Current CIP list to be provided to the Commissioners
• Contingency Fund(spending must be approved by the Board)_ $581,349
• Miscellaneous Fund(non-departmental expenses)= $245,000
• Funding to relocate 320 Chestnut Street workers= $150,000
• Estimated repairs= $500,000
• May need to mothball building for 3 years
• Estimated repairs at Cobb Annex= $500,000
• No Appropriated Fund Balance for Budget
• Current Fund Balance= 14.64%($44 million)
• Goal=$16.67
• No Solid Waste Transfer included to balance Budget
• Potential delays in contract
• Repayment of loan will go to Fund Balance of General Fund
Other Funding Considerations Not Included in Proposed Budget
• County Education Program for the community
• Funding for commissioning of Destroyer USS Gravely-approximately$50,000
• Cape Fear Futures= $50,000 per year for 5 years
• Sponsor local public channel
• Economic development incentives
• Soil&Water Conservation as a County Department
• Wrightsville Beach funding requests for recycling center= $130,000
• State's actions to balance State Budget for FY09-10 and FY10-11
Remaining Budget Calendar
• May 17 County Manager presents FY10-11 Recommended Budget
• June 7 Public Hearing on FY10-11 Budget
o Additional work sessions may be held as needed
• June 21 adopt FY10-11 Budget
Discussion of Funding Options
The Commissioners discussed the following options to balance the budget:
• Delay sale of Parks bonds
• Use anticipated Solid Waste Transfer funds
• Use Fund Balance
• Increase number of furlough days for County employees
• Reduce available Contingency and Miscellaneous Funds
• Increase Salary Lag
In response to Board questions, County Manager Shell stated that he was opposed to using Fund Balance to
fund the budget, as it would jeopardize the AAA bond rating that the County recently received. The AAA bond
rating will result in large savings in the sale of bonds. Rather,he recommended reducing expenses.
Consensus: After a lengthy discussion, the majority of the Commissioners directed the County Manager to balance
the budget with 1.3-cent property tax increase.
ADJOURNMENT
There being no further business, Chairman Thompson adjourned the meeting at 4:15 p.m.
Respectfully submitted,
Teresa P.Elmore
Deputy Clerk to the Board