2009-04-20 Budget Work SessionNEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 31
BUDGET WORK SESSION, APRIL 20, 2009 PAGE 591
ASSEMBLY
The New Hanover County Board of Commissioners held a Budget Work Session on Monday, April 20,
2009, at 12:30 p.m. in the Assembly Room of the New Hanover County Courthouse, 24 North Third Street,
Wilmington, North Carolina.
Members present were Chairman Ted Davis, Jr.; Vice-Chairman Jason R. Thompson; Commissioner
Robert G. Greer; Commissioner William A. Caster; Commissioner Jonathan Barfield, Jr.; County Manager Bruce T.
Shell; Budget Director Cam Griffin; and Deputy Clerk to the Board Teresa P. Elmore.
Chairman Davis called the meeting to order and requested County Manager Bruce Shell to begin the budget
work session.
Budget Update
County Manager Bruce Shell stated that Staff continues to work toward balancing the budget with the
current tax rate of 45.25 cents in the General Fund. He requested Budget Director Griffin to give an update.
Budget Director Cam Griffin presented the following assumptions for the proposed budget.
·
Employees will be required to take 10 days of furlough in FY09-10 and the accrual rate for personal leave
will be reduced
·
Positions vacated due to retirement will remain vacant through FY09-10
·
Maintain currently frozen positions during FY09-10 (114 positions)
·
A reduction in force eliminated 27 positions in FY08-09
·
Freeze any position that becomes vacant that does not serve critical public safety function
·
The County contribution to Health Insurance will remain constant
·
Cost increase will be passed on to employees
·
Option of higher monthly premiums or a higher co-pay to be determined
·
Southeastern Center, County Schools, and Cape Fear Community College will be funded at 95% of FY08-
09 adopted amounts
·
Non-County agencies will be funded at 90% of their FY08-09 adopted amounts and no new agencies will
be funded
·
Fund balance in the amount of $2.5 million will be appropriated in the General Fund
·
Sales tax estimated to be 6.5% below the FY07-08 actual amount, adjusted for changes related to the
Medicaid Sales Tax Swap
Budget Director Griffin reported that Staff has worked with Departments to bring their FY09-10 operating
and capital budgets to a level where the current tax rate can be maintained. Services have been maintained where
possible, but the public will notice some difference because of the required reductions.
In addition, she noted the following:
·
Staff will continue to closely monitor FY08-09 revenues and the impact on FY09-10 projections
·
FY09-10 Recommended Budget will be presented on May 18
·
Budget Work Session scheduled on May 4, 2009
·
Fire Service District and Environmental Management Fund Budgets
·
Projected FY09-10 value of a penny in General Fund = $3.3 million
·
Projected FY09-10 value of a penny in Fire Service District = $1.2 million
Budget Calendar
Budget Director Griffin reviewed the calendar for the budget process saying the budget should be adopted
at the June 15, 2009 Board meeting. Work Sessions will be added as needed.
Mandated Programs
Budget Director Griffin provided the following information on funding levels of mandated and
discretionary services:
FY0809 Adopted Budget Classified by Funding Requirements
Mandated Service and Mandated Funding Levels $ 92,718,266 33.74%
Mandated Service Discretionary Funding Levels 162,597,019 59.17%
No Mandate Discretionary Service and Funding 19,493,334 7.09%
Total FY0809 Adopted Budget Expenditures $274,808,619 100.00%
Countywide Goals
Budget Director Griffin presented the following County goals for review and requested the Board to inform
her of any changes:
·
Provide Prompt, Courteous, and Professional Services to the Citizens of New Hanover County
·
Provide a Safe Community for all New Hanover County Citizens
·
Continue Investing in Technology for Citizens to Easily and Efficiently Conduct County Business
·
Protect the Environment and the Quality of Life Enjoyed by New Hanover County Citizens
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 31
BUDGET WORK SESSION, APRIL 20, 2009 PAGE 592
·
Ensure the Health and Welfare of all New Hanover County Citizens
·
Ensure Equality for all New Hanover County Citizens
·
Provide for the Educational, Cultural, and Recreational Needs of the Community
·
Ensure the Financial Stability and Legal Protection of the County
·
Promote Sound Economic Growth
Tax Revaluation
County Manager Shell said that he plans to present information on the 2011 Tax Revaluation at the next
Board meeting. The budget includes $264,000 for this expense. He projected that the tax rate may increase from
45.5 cents to 62 cents if a decrease in the tax base occurs.
Consensus:
The Board agreed to hear a presentation by the Finance Director and Tax Administrator at the next
meeting on whether to postpone the scheduled revaluation in 2011. A public hearing will be scheduled to hear
comments from citizens.
In further discussion, County Manager Shell reported that two commercial appraisers have been hired to
review the appraisals of commercial properties to ensure fair and equitable tax values.
Alternate Revenue Source
County Manager Shell provided information on the Local Option ¼ Cent Sales Tax:
·
July 20, 2009 last day for decision of advisory referendum on November 3, 2009 ballot
·
Schedule a referendum at Regular Board meeting
·
Notify State and Local Boards of Elections
·
County to pay for November election/referendum
·
Lose $179,583 in reimbursement from municipalities
·
The County cannot stipulate the use of the monies on the ballot
·
No restrictions on the use of the tax monies (other than public funds rules)
·
Counties cannot sunset the ¼ cent sales tax or indicate a time limitation on the ballot
·
Must be repealed by voter referendum
·
The ¼ cent sales tax would be collected by the State on sales within the County
·
Pointofsale basis; excludes exempt food
·
No mechanism in place to share with Municipalities
·
Estimated revenue for first 12 months = $7,435,092
·
Earliest date the tax could become effective = April 1, 2010
·
Assumes Board adopts a resolution to levy the tax at December Board Meeting
Consensus
: After a brief discussion, the Commissioners agreed that the sales tax option would be an alternative to
higher property taxes and they directed staff to move forward in presenting the Sales Tax Option to the voters on the
November ballot.
Outside Agency Funding Requests
County Manager Shell presented a list of the outside agencies requests for funding and his proposed
funding recommendations. A brief discussion was held on the discretionary funding for the agencies and a need to
evaluate for duplication of services and whether the services save money for the County. The Commissioners talked
about the amount of time they spend in hearing from the community on the funding issues and the pressure for
County funds.
The Commissioners reviewed the funding requests and received updates on the multi-year contracts as well
as funding for the City of Wilmington Safe Light Program.
Commissioner Caster requested the County Manager to continue funding the Blue Ribbon Commission
(Youth Violence), an agency supported by the local United Way. No other changes were proposed for the budget.
Discussion of Other Issues
The Board briefly discussed other concerns:
·
Better communication/education on main issues with the public
·
Safeguarding the Fund Balance
ADJOURNMENT
There being no further discussion, Chairman Davis adjourned the meeting at 2:00 p.m.
Respectfully submitted,
Teresa P. Elmore
Deputy Clerk to the Board