2016-03-31 Budget Work Session
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33
BUDGET WORK SESSION, MARCH 31, 2016 PAGE 493
ASSEMBLY
The New Hanover County Board of Commissioners held a Budget Work Session on Thursday, March 31,
2016, at 3:04 p.m. at the New Hanover County Government Center, Harrell Conference Room, Room 601, 230
Government Center Drive, Wilmington, NC.
Members present: Chairman Beth Dawson; Vice-Chairman Jonathan Barfield, Jr.; Commissioner Skip
Watkins; Commissioner Woody White; and Commissioner Rob Zapple.
Staff members present: County Manager Chris Coudriet; County Attorney Wanda M. Copley; and Deputy
Clerk to the Board Kymberleigh G. Crowell.
Chairman Dawson called the meeting to order and requested County Manager Chris Coudriet to begin the
presentation.
County Manager Coudriet stated Chief Strategy and Budget Officer Beth Schrader will be making most of
the presentation as she has the best handle on the revenue and expense side at this point. Four topics to be covered
today include the overview of requested expenditures by function and department, the Cape Fear Community College
(CFCC) request, the WAVE Transit request, and the non-county agency requests. He asked Chief Strategy and Budget
Officer Beth Schrader to start the presentation.
Overview of Requested Expenditures by Function and Department
Chief Strategy and Budget Officer Beth Schrader presented the following FY16-17 requested expenditures
by function noting that the adopted budget for FY15-16 was $302,126,233; the revised FY15-16 is $307,949,754 and
as of today the FY16-17 requested is $324,255,255. Expenditures are about 12% in the requested budget for general
government; 19% in human services; and approximately 18% in public safety. There is 1% for both the economic and
physical development and transfers and 4% for cultural and recreation. Approximately 40% of the budget includes
educational items which are CFCC, New Hanover County Schools (NHCS) system and the associated debt. Finally
there is general fund debt service which makes up approximately 5% of the budget. The amended budget reflects
where the County stands based on the policy choices and decisions throughout the year. The requested budget
represents all internal and external requests and has not been edited in any way shape or form. For education the
formal submission of the budget has been received from CFCC, while the NHCS information is based on the Board
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of Education’s budget work sessions. The Board of Education will hold a work session the week of April 4 and will
not formally adopt its budget until the beginning of May.
Officer Schrader provided an overview of some of the larger increases noting that general government has
increased by approximately 4.44%. The general government in the requested budget assumes that 100% of the
positions are funded 100% of the time. It assumes all fifty requested positions are in the budget and a salary lag has
not been included. In response to questions, she stated there is not a specific amount used for salary lag. It is adjusted
year to year based on the number of positions during the previous 12 month history, turnover and amount of time it
takes to fill a position.
She reported an increase is being seen in the transfers directly related to the Capital Improvement Plan. There
is also a decrease in the requested budget in the economic and physical development area, which is driven by two
things: 1) the $600,000 in the current budget for CFPUA related to the Flemington water under the river boring project
and 2) the $500,000 undesignated economic development funding. Those two items were not included in the current
requested budget and based on the March 23, 2016 meeting will be added between the requested and recommended
budgets. Staff will provide a breakdown of the economic development funding as some funding is in other areas of
the budget.
CFCC Request
Officer Schrader reviewed the three components to the CFCC request which make up the total amount the
County allocates:
Contribution to current operating expense (in FY15-16 adopted budget it was just under $10.4 million)
Capital outlay projects (in FY15-16 adopted budget that accounted for almost $1.2 million)
Debt service ($14.9 million this fiscal year)
A revised request is expected from CFCC but staff is working from current information as submitted:
FY15-16 FY16-17
ADOPTED REQUESTED DIFFERENCE
Current Expense $10,376,430 $10,923,835 $ 547,405
Capital Outlay 1,154,354 2,166,872 1,012,518
Debt Service 14,948,496 17,611,491 2,662,995
Total Request $26,479,280 $30,702,198 $4,222,918
The CFCC total contribution for the FY15-16 adopted budget was approximately $26.4 million. The FY16-
17 request for current operating expense has increased to $10.9 million. This is primarily for an incremental two
months for the Humanities and Fine Arts Building operation as well as assuming five months operations for the
Emerging Technologies Building. CFCC is also requesting approximately $2.1 million for capital outlay which would
be an increase of just over $1 million versus what was funded in the current fiscal year. CFCC will be a recipient of
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33
BUDGET WORK SESSION, MARCH 31, 2016 PAGE 494
$5.9 million as part of the Connect NC Infrastructure bonds. Those funds are earmarked for what it can and cannot
be used towards:
May be used for new construction, renovation and repair.
May not be used for renovation or repair of athletic facilities (The top priority and largest dollar value
of CFCC is the replacement of the roof at the Schwartz Center which would not be eligible for bond
funds).
State has indicated that some funding may begin to be available late August 2016 time frame.
WAVE Transit Request
Officer Schrader reviewed the FY15-16 adopted and FY16-17 requested budgets for WAVE Transit. The
County contributed $275,000 for current operating expense, $5,373 for capital to assist with bus shelters and the
second year fund balance contribution of $157,822. WAVE has requested for FY16-17 that the County contribute
$390,000 for operational expenses, an increase of $115,000. She noted that County staff requested WAVE to provide
an estimated cost in the budget request for potentially putting Trillium on the northern route. The cost of $89,000
would be to expand service to Route 207 for weekend service. In response to questions about why the information
was asked for at this point, County Manager Coudriet stated that staff needed to know the cost for transportation to
that site as part of the Trillium’s analysis of whether or not it is the best location to build a facility. Although the
project may not happen this coming fiscal year, the information will be used by Trillium during the decision making
process whether to use the site it owns which already has public transportation or move to an area near the jail.
WAVE Transit - Funding
Officer Schrader reported that funding for Wave Transit comes from three primary sources:
The amount the County allocates in the adopted budget as a direct contribution
Pass through State Grant Funding from ROAP (Rural, Employment, and ED-TAP)
Vendor payments for bus tickets / bus passes - purchased through Health, DSS, Sheriff, and Senior
Resource Center
In review of the Rural Operating Assistance Program (ROAP) funding it was noted:
ROAP Funding (Rural Operating Assistance Program) is split between the Senior Resource Center
(SRC) and WAVE Transit and is comprised of three parts:
ED-TAP is Elderly and Disabled Transportation
Employment is TANF Work First Transitional / Employment Transportation Assistance
Rural General Program (RGP) – only program with a match (local 10%)
ROAP Funding Percentage Breakdown:
Historically 40% County / 60% WAVE Transit
Moved to 75% County / 25% WAVE Transit in FY15-16 due to loss of 5310 funding
100% of ROAP will go to the NHC in FY17
County Manager Coudriet stated that the reason the County needed to make the funding change was to
continue a transportation program at the SRC. The County needed the funds to effectively operate the service in the
current year at a level that was done in the prior year. The 5310 funding was lost when the County designation was
changed from rural to urban. In response to questions about the purchased services, Officer Schrader stated that it’s
everything from bus tickets for people leaving the detention center, several programs at the Health Department with
the largest purchaser being DSS with its TANF Work First program and other transportation funding they provide for
bus tickets.
In response to questions about the increase over the current budget year, Officer Schrader stated the difference
is theoretically the allocation by ROAP which now is not being allocated to the County. County staff and WAVE staff
have had conversations in regard to the upcoming fiscal year that the County would not allocate any ROAP funding
to WAVE but rather retain it and run that portion of the program. Vice-Chairman Barfield stated that WAVE’s budget
was cut by $150,000 due to losing ROAP funding. SRC Director Amber Smith reported that the department lost
$152,500 because of the change in the 5310 rural designation. The $152,500 went to the Wilmington Metropolitan
Organization (WMPO) who gave it to WAVE. County Manager Coudriet reported due to the designation change the
County is out of the ROAP business and an effort was made to get back some of those dollars. Officer Schrader also
reported that based on departments’ estimates, staff is anticipating an increase in funds to be paid as part of purchased
services to WAVE which will assist in returning it to a $1.1 million contribution/payment.
In response to questions about the two year funding, Chief Financial Officer Lisa Wurtzbacher stated the
County has fulfilled that commitment and an increase has been seen in WAVE’s fund balance. The fund balance is
not large due to a deficit in FY14 which had to be addressed first. She confirmed the fund balance contribution has
helped to get bills paid and in not having to request funds from the county. She has not seen a request this year but
unsure whether the City has.
Non-County Agency Requests
Officer Schrader reported that FY16-17 begins a new 2-Year funding window for non-county agencies. In
the FY15-16 adopted budget the County funded approximately $800,000 for non-county agencies. The requests
received for FY16-17 budget year are in excess of approximately $1.5 million. The policy questions concerning non-
county agencies are 1) does the County continue to fund current agencies, fund new agencies, or a mix? and 2) to what
level? The largest areas of increase are primarily in the human service agencies. An unprecedented number of agencies
and an unprecedented number of new agencies are requesting funding. She commended Strategy and Budget Specialist
Gwen Hill for her hard work in reaching out to the non-profits in the community that fit within the County’s strategic
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33
BUDGET WORK SESSION, MARCH 31, 2016 PAGE 495
areas to make them aware of the opportunity. County Manager Coudriet commended the Board for this year’s
approach of discussing this matter before receiving the recommended budget.
April 14, 2016 Work Session Agenda
The April 14, 2016 work session will be two hours in length and staff presented the proposed agenda:
NHCS Request
Capital Improvement Projects (CIP)
Capital Outlay Requests
Debt Schedule
Additional Topics?
The Board was reminded that the Board of Education is having a work session to finalize their budget request
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on April 5 and it will not be officially adopted until May. Staff will present the “prioritized” CIP and capital outlay
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and implications on debt service. Requests were made in preparation for the April 14 work session for staff to
provide a breakdown of the Sheriff’s Office requests, be prepared to possibly have a discussion on the fund balance
policy and to provide a compiled list of the Commissioners’ funding priorities.
County Manager Coudriet asked that the Board please share any critiquing with staff so that during the April
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14 work session the Board receives the needed information. He wants to make sure that the Board is receiving the
type of data needed to make individual decisions and as a governing body.
ADJOURNMENT
There being no further discussion, Chairman Dawson adjourned the meeting at 3:57 p.m.
Respectfully submitted,
Kymberleigh G. Crowell
Deputy Clerk to the Board
Please note that the above minutes are not a verbatim record of the New Hanover County Board of Commissioners meeting.