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2009-05-18 Regular MeetingNEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 31 REGULAR MEETING, MAY 18, 2009 PAGE 610 ASSEMBLY The New Hanover County Board of Commissioners met in Regular Session on Monday. May 18, 2009, at 9:00 a.m. in the Assembly Room of the New Hanover County- Courthouse, 24 North Third Street, Wilinington, NC. Members present were: Chairman Ted Davis, Jr.: Vice-Chairman Jason R. Thompson: Commissioner Robert G. Greer: Commissioner William A. Caster: Commissioner Jonathan Barfield, Jr.: Count- Attorney Wanda M. Copley: Clerk to the Board Sheila L. Schuh and County Manager Bruce T. Shell. Chairman Davis called the meeting to order and welcomed everyone present. INVOCATION AND PLEDGE OF ALLEGIANCE Pastor Tracy Pryor, Covenant Moravian Church gave the invocation. Commissioner Barfield led the audience in the Pledge of Allegiance to the Flag. APPROVAL OF CONSENT AGENDA Chairman Davis asked if any- member of the Board -would like to remove am, item from the Consent Agenda. Hearing no comments, Chairman Davis called for a motion to approve the items on the Consent Agenda. Motion: Commissioner Caster MOVED, SECONDED by Vice-Chairman Thompson, to approve the items on the Consent Agenda as presented. Upon vote, the MOTION CARRIED UNANIMOUSLY. CONSENT AGENDA Approval of Minutes - Governing Body The Commissioners approved the minutes from the following meetings as presented by the Clerk to the Board: Agenda Review meeting held on April 30, 2009 Regular Session meeting held on May 4, 2009 Budget Work Session held on May 4, 2009 Adoption of State Road Resolution - Governing Body The Commissioners adopted a North Carolina Department of Transportation State Road Resolution supporting the addition of Shaw Road in New Hanover County (Division File No. 1142-N) to the state system. A copy of the resolution is hereby incorporated as part of the minutes and is contained in Exhibit Book XXXII, Page 11.1. Adoption of Resolution Approving Disposal of Surplus Property by Electronic Public Auction - Finance Department The Commissioners adopted the resolution approving the disposal of surplus property- by electronic public auction utilizing GOVDeals auction seivices after the required advertisement of the sale. A copy- of the resolution and listing of Surplus Property- is hereby incorporated as part of the minutes and is contained in Exhibit Book XXXIL Page 11.2. Ratification of Grant Application Submitted to the Port Security Grant Program - Health Department The Commissioners ratified the grant application submitted to the Port Security- Grant Program in the amount of $36,000. No local match is required. If awarded, the funds will be used to purchase the following: • Transport Vehicle with towing capacity of 5,050 pounds to transport an enclosed trailer in the amount of $24,000 • Leonard Building's Enclosed Trailer and Tire Lock in the amount of $6,000 • Translation/Commiuiication Enhancement Project SQU.ID, SQ.200 and PHRASELATOR P2 (Communication and Translation Equipment) in the amount of $6,000 Authorization to Submit a Grant Application to the Landfall Foundation - Health Department The Commissioners authorized the Health Department to submit a grant application to the Landfall Foundation in the amount of $5,300. If awarded, the Rinds will be used to purchase for the School Health Program for hand washing education supplies. No local match is required. Approval of Release of Tax Value - Tax Department The Commissioners granted the Senior Citizen/Disability Exclusion to the taxpayers as presented. Tvlor, Sandra $ 81,724 Wilborne, Joan W. 89,253 NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, MAY 18, 2009 BOOK 31 PAGE 611 Acceptance of New Hanover County and New Hanover County Fire District Tax Collection Reports - Tax Department The Commissioners accepted the following Tai Collection Reports as of April 30, 2009. New Hanover County Fire District New Hanover County Copies of the Tai Collection Reports are hereby- incorporated as a part of the minutes and are contained in Exhibit Book XXXIL Page 11.3. Approval of New Hanover County Board of Education Capital Outlay Fund Budget Amendment #7 - Budget Department The Commissioners, as requested by the New Hanover County Board of Education, approved Capital Outlay Fund Budget Amendment #7 reducing the fiuiding for the Snipes Project by $1,800,000 due to favorable bids for the project. A copy of the New Hanover County Board of Education Budget Amendment is available for review in the Budget Department. Adoption of Budget Ordinance Amendments - Budget Department The Commissioners adopted the following Budget Ordinance Amendments for fiscal year ending June 30. 2009: 09-231 - Health 2009-66 - Sheriffs Office 2009-67 - Sheriffs Office Copies of the budget ordinance amendments are hereby incorporated as part of the minutes and are contained in Exhibit Book XXXII. Page 11.4. REGULAR ITEMS OF BUSINESS ADOPTION OF RESOLUTION APPOINTING CHIEF DEPUTY EDWARD J. MCMAHON AS SHERIFF OF NEW HANOVER COUNTY EFFECTIVE JUNE 30, 2009 Chairman Davis reported that Sheriff Sidney Causey announced his resignation effective June 29, 2009. North Carolina General Statutes required the County- to appoint the sheriff and establish the salary. On May 1. 2009 the Executive Committee of the New Hanover Count-N Democratic Party made a recommendation to the Board of Commissioners that Chief Deputy Edward J. McMahon fill the unexpired term of Sheriff Causey effective June 30, 2009. The determination of the Sheriffs salary will be placed on the Boards June 22, 2009 meeting for consideration. Vice-Chairman Thompson read the resolution into the record. Chairman Davis requested a motion from the Board. Motion: Commissioner Greer MOVED, SECONDED by Commissioner Caster. to appoint Chief Deputy Edward J. McMahon as Sheriff of New Hanover County. to fill the unexpired term of Sheriff Sidney A. Causey, effective June 30, 2009. Upon vote. the MOTION CARRIED UNANIMOUSLY. Chief Deputy Ed McMahon was present to receive the resolution. A copy of the resolution is hereby incorporated as a part of the minutes and is contained in Exhibit Book XXXII, Page 11.5. PRESENTATION OF NEW HANOVER COUNTY RETIREMENT PLAQUES County- Manager Shell requested the following retired employees to step forward to receive their retirement plaque: Brenda Hewlett, Public Safety Communications - 27 years of service Steve Smith, Public Safety Communications - 31 N--ears of senti ice On behalf of the Board, Chairman Davis expressed appreciation and thanked them for their dedicated years of sei ice. PRESENTATION OF NEW HANOVER COUNTY SERVICE AWARDS County Manager Shell requested the following employees to step fon-ward to receive sei ice awards: Five Year: Tiffany Bickel, Department of Social Seivices Christine Bouffard. Inspections Lisa Carter. Tax Department Wendy- Farr. Health Department Teresa Lewis, Sheriff s Office Stephanie Monteath, Department of Social Senti ices NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, MAY 18, 2009 Holly Yeager, Department of Social Selvices Ten Year: Maisha James. Sheriff's Office Fifteen Year: Pamela Nelson, Department of Social Seib ices Cindy Reed, Department of Social Seivices Nihhi Todd. Health Department T"ent_v Year: Mark Francolim, Human Resources Sheila Merritt. Department of Social Seivices Sharon Terrell. Tai Department Beth Topping. Health Department T-vventy-Five Year: Jerry Brim. Department of Social Seivices BOOK 31 PAGE 612 On behalf of the Board. Chairman Davis presented a service award to each employee. expressed appreciation. and thanked them for their years of dedicated sere, ice. RECOGNITION OF NEW EMPLOYEES County Manager Shell requested the following new employees to stand and be introduced: Gilles Prmeau. Sheriffs Office Angel Johnson, Fire Sergi ices Denise Strickland, Department of Social Seivices On behalf of the Board. Chairman Davis welcomed the crew employees to County Government and wished them success in their new positions. ACKNOWLEDGEMENT OF RECEIPT OF LOCAL PROGRAM AWARD FOR EXCELLENCE IN EROSION AND SEDIMENTATION CONTROL Dan Sams, representative "with the North Carolina Department of Environment and Natural Resources, reported that New Hanover County is the recipient of the Local Program Award for Excellence in Erosion and Sedimentation Control. The award was presented to Engineering Specialist Beth Wetherill and Erosion Control Construction Inspector Rob Pearsall. on January 28. 2009 at Pine Needles Reception Center in Southern Pines. North Carolina. The meticulous record-keeping and extensive files maintained by the Engineering administrative staff enables this program to effectively track. inspect. and monitor all active sedimentation and erosion control permits. On behalf of the Board. Chairman Davis congratulated the New Hanover County Engineering Department. Beth Easley Wetherill and Rob Pearsall on receipt of the award. ADOPTION OF RESOLUTION ENDORSING THE MAKER CHANGE YELLOWMETER PROJECT Dan Ferrell. Project Manager for The Ten-Year Plan to End Chronic Homelessness and Reduce Homelessness in the Cape Fear Region, reported that at the Boards April 20, 2009 meeting, the Board heard a presentation on the Make a Change Yellow Meter Project. The Board is now being requested to adopt a resolution endorsing the project and directing the County Manager to coordinate efforts with the Ten-Year Plan to identify locations for the meters. No county finds are being requested. Vice-Chairman Thompson read the resolution into the record and moved for adoption. Motion: Vice-Chairman Thompson MOVED, SECONDED by Commissioner Greer. to adopt the resolution endorsing the Make a Change Yellow Meter Project. Upon vote. the MOTION CARRIED UNANIMOUSLY. Project Manager for The Ten-Year Plan to End Chronic Homelessness and Reduce Homelessness in the Cape Fear Region Dan Ferrell was present to receive the resolution. A copy of the resolution is hereby incorporated as a part of the minutes and is contained in Exhibit Book XXXII. Page 11.6. ADOPTION OF PROCLAMATION DECLARING MAY 2009 AS WORKFORCE DEVELOPMENT PROFESSIONALS MONTH IN NEW HANOVER COUNTY Chairman Davis reported that the Board has been requested by the Cape Fear Council of Governments to proclaim May 2009 as Workforce Development Professionals Month in New Hanover County. Commissioner Barfield read the proclamation into the record and moved for adoption. Motion: Commissioner Barfield MOVED, SECONDED by Vice-Chairman Thompson. to adopt the proclamation declaring May 2009 as Workforce Development Professionals Month in New Hanover County. Upon vote. the MOTION CARRIED UNANIMOUSLY. Cape Fear Council of Governments Workforce Development Director Marjie Parker was present to receive NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, MAY 18, 2009 the proclamation. BOOK 31 PAGE 613 A copy- of the proclamation is hereby incorporated as a part of the minutes and is contained in Exhibit Book XXXII, Page 11.7. ADOPTION OF PROCLAMATION DECLARING MAY 2009 AS WOMEN OF ACHIEVEMENT MONTH IN NEW HANOVER COUNTY Chairman Davis reported that the Board has been requested by the YWCA Lower Cape Fear to proclaim May 2009 as Women of Achievement Month in New Hanover County. Commissioner Greer read the proclamation into the record and moved for adoption. Motion: Commissioner Greer MOVED, SECONDED by Commissioner Caster. to adopt the proclamation declaring May 2009 as Women of Achievement Month in New Hanover County. Upon vote, the MOTION CARRIED UNANIMOUSLY. YWCA Incoming Executive Director Suesan Sullivan, Assistant Executive Director Nancy McCoy- Fennell, and Communications Director Maiv Martin were present to receive the proclamation. A copy of the proclamation is hereby incorporated as a part of the minutes and is contained in Exhibit Book XXXII, Page 11.8. PRESENTATION OF GRANT AWARD TO NEW HANOVER COUNTY FIRE SERVICES BY CONGRESSMAN MIKE MCINTYRE Congressman Mike Mchityre presented to New Hanover County Fire Seivices a Homeland Security grant award in the amount of $61,584 with a local match of $15,396 for a total amount of $76,980. The fiends will be used to purchase seventy-five sets of personal protective equipment specifically designed for wild land firefighting, provide Urban Search and Rescue Training Technical level training to fifteen firefighters, and provide NFPA 1021 Officer level II training and certification of twenty-five officers. On behalf of the Board, Chairman Davis accepted the grant award and thanked Congressman Mchityre for the presentation. ADOPTION OF PROCLAMATION DECLARING MAY 2009 AS FOSTER CARE AWARENE.4S MONTH IN NEW HANOVER COUNTY Chairman Davis reported that the Board has been requested by the Department of Social Seivices to proclaim the month of May 2009 as Foster Care Awareness Month in Nero Hanover County. Commissioner Caster read the proclamation into the record and moved for adoption. Motion: Commissioner Caster MOVED, SECONDED by Commissioner Vice-Chairman Thompson, to adopt the proclamation declaring May 2009 as Foster Care Awareness Month in Nc-rv Hanover County. Upon vote, the MOTION CARRIED UNANIMOUSLY. Department of Social Seivices Director LaVauglui Nesmith and Assistant Director Wanda Marino were present to receive the proclamation. A copy- of the proclamation is hereby- incorporated as a part of the minutes and is contained in Exhibit Book XXXII, Page 11.9. ADOPTION OF PROCLAMATION DECLARING MAY 2009 AS MENTAL HEALTH MONTH IN NEW HANOVER COUNTY Chairman Davis reported that the Board has been requested by the Southeastern Center Area Director Foster Norman to proclaim the month of May 2009 as Mental Health Month in Nt-v Hanover County. Commissioner Barfield read the proclamation into the record and moved for adoption Motion: Commissioner Barfield MOVED, SECONDED by Vice-Chairman Thompson, to adopt the proclamation declaring Mav 2009 as Mental Health Month in New Hanover County. Upon vote, the MOTION CARRIED UNANIMOUSLY. Southeastern Center Area Director Foster Norman was present to receive the proclamation. A copy of the proclamation is hereby- incorporated as a part of the minutes and is contained in Exhibit Book XXXII, Page 11.10. PRESENTATION ON MASON INLET WATERBIRD HABITAT MANAGEMENT PLAN FOR 2008 Assistant County Manager Dave Weaver reported that in 2002, New Hanover Comity- successfully relocated Mason Inlet 3,000 feet north across the southern tip of Figure 8 Island. As a requirement of the Federal permit New Hanover County was required to monitor the nesting success of waterbirds and shorebirds, document the number of nests for each species, and document the species and number of non-breeding birds using the north NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 31 REGULAR MEETING, MAY 18, 2009 PAGE 614 end of Wrightsville Beach. The contract for continued monitoring NN-ill be brought to the Board at their June 1, 2009 meeting for consideration. Walker Golder, Executive Director of the Audubon Society, presented an update of the management plan highlighting the following information: In April 2003, the Audubon Society- entered into a cooperative agreement with New Hanover County to manage the north end of Wrightsville Beach in a manner that will restore and maintain the site for nesting birds, and comply with conditions of the federal permit issued for the relocation of Mason Inlet. The 2008 nesting season revealed an increase in numbers of nests over previous years, continuing to show an overall success of the program. Human disturbances, the greatest management challenge and greatest threat to nesting waterbirds and shorebirds, have been controlled. This was directly because of management improvements made in previous seasons, the proper implementation of the Mason Inlet Waterbird Habitat Management Plan, and the Rill-time presence of Audubon staff during the nesting season. Results from the 2008 nesting season show that if suitable habitat exists and the Mason Inlet Waterbird Habitat Management Plan is implemented, nesting waterbirds NN-ill nest on the north end of Wrightsville Beach and then can be successfiil. With continued improvement observed this season, the outlook for fitture seasons looks promising as long as the current level of active management and monitoring remains in place. Full-time, active management during the nesting season should continue for the duration required by the federal permits issued for the relocation of Mason's Inlet. He requested the Board's permission to perform vegetation management, at no cost to the County, to encourage the waterbirds to remain in an area away from the public beach area. This will be done by hand, by volunteers, with the blessing of the regulatory agencies. After brief discussion, the consensus of the Board was to grant permission for the necessary vegetation management as requested. On behalf of the Board, Chairman Davis thanked Mr. Golder for the presentation. A copy of the "A'rightsvdle Beach it aterbird _llarzagenretrt Area TT aterbird Habitat A1wi geme11t 2008 A-esting Seasota " report is available for review- in the County Managers Office. PUBLIC INPUT ON THE 2011 REVALUATION Chairman Davis reported that at the Boards May 4, 2009 meeting, the Board directed staff to schedule a public input meeting to allow- the citizens to speak on whether the Board should proceed with the scheduled 2011 property revaluation or to delay the revaluation due to the current market conditions. The Commissioners received the following public input on the 2011 revaluation: Town of Carolina Beach Councilman Alan Gilbert spoke on the decrease in the fair market value of homes in the Carolina Beach area requesting the Board continue with the scheduled revaluation in 2011. He submitted into the record a letter from Carolina Beach Mayor Macon, on behalf of the Town Council, requesting the County move forward with the revaluation as scheduled. Wilmington Regional Association of REALTORS, Governmental Affairs Director Kathleen Reily presented the results of a survey question posed to the members of their organization that live in New Hanover County with thirty-two members responding as follows: approximately 63% prefer revaluation every four years and approximately 37% prefer evaluation every eight years. In response to Board questions, Councilman Gilbert responded that according to the figures he has seen, Carolina Beach can do revenue neutral, and have a tax decrease. Educating the public will be the key to understanding the revenue neutral issue as it relates to tax values and tax rates. Commissioner Greer stated that it is the Boards responsibility to establish the correct value of people's property. Town of Wrightsville Beach Mayor Steve Whalen stated that he would like to see the Board postpone the scheduled revaluation for twelve months and to reassess the situation at that time to possibly conduct the revaluation in 2012. The perception is that when property values go down, taxes will be decreased. In response to Board questions, Mayor Whalen stated that his Board has not taken a formal position on the scheduled revaluation. Town of Kure Beach Mayor Mac Montgomery° spoke in favor of the 2011 tax revaluation stating that the residents want a true value of their property. The revaluation should be conducted as scheduled. Town of Kure Beach Councilman Dean Lambeth spoke in favor of the 2011 tax revaluation as scheduled. Chairman Davis read into the record an email received from County Manager Bruce Shell that the City of Wilmington is requesting "due to the mnsettled housing and financial markets and concerns remaining from last revaluation, that the County delay the revaluation until 2012. They strongly favor that generally revaluations be NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 31 REGULAR MEETING, MAY 18, 2009 PAGE 615 done more frequently than in the past in order to keep pace with the market" In response to Board questions, County Manager Bruce Shell confirmed that his email was derived from comments he received from speaking with City of Wilmington Councilwoman Laura Padgett and City Manager Sterling Cheatham. In response to Board questions, Tax Administrator Roger Kelley and Finance Director Avril Pinder confirmed that staff is ready to proceed with the revaluation as scheduled. Previously, the Board approved additional residential and commercial appraiser positions: the addition of staff has been helpfiil in preparing for the scheduled revaluation. Chairman Davis requested direction from the Board. Motion: Vice-Chairman Thompson MOVED to delay the revaluation for twelve months. The MOTION FAILED FOR LACK OF A SECOND. A copy of the letter from the Town of Carolina Beach Mayor Joel Macon is hereby incorporated as part of the minutes and is contained in Exhibit Book XXXII, Page 11.11. BREAK Chairman Davis called for a break at 11:15 a.m. until 11:29 a.m. PRESENTATION ON METHAMPHETAMINE PROTOCOL Department of Social Seivices Assistant Director Marino and New Hanover County Sheriffs Office Lieutenant MacNeish presented the New Hanover County Methamphetainine Protocol update highlighting the following information: Strategic Plan - In an effort to combat the growing crisis of methamphetainine use and addiction in New Hanover County, the New Hanover County Methamplnetarnine Task Force has developed a plan that includes the following initiatives: • Public Awareness - Public seivice announcements will be produced by local media to promote awareness of the dangers of both methamplnetarnine use and manufacturing. • Training - Training Initiatives will be completed an ually° to bring individuals up-to-date on this public health hazard. • Response Plan - This response plan primarily focuses on children found in methamphetarnine labs and sets forth protocols for the proper and safe care of those children. • Protocol A: Scene Assessment and Notification - recognize, vacate, and notify law enforcement by calling 911. • Protocol B: Field Medical Assessment by Emergency Medical Technicians/Paramedics. • Protocol C: Emergency Department Medical Care for the purpose of evaluating and addressing problems requiring care, and to conduct the baseline exam. Immediate care must be provided. • Protocol D: On-going Follow-up - all children found at Methamplnetamine Lab Sites should be considered at risk and will have follow-up assessments at thing- days and twelve months. • Children with limited exposure are identified as living in proximity to a clandestine lab, such as a multi-unit dwelling, or by having been a casual visitor. Parents of these children are encouraged to seek care from their medical provider to discuss the potential risk and need for evaluation. Other individuals with potential risk, especially pregnant women and first responders, are encouraged to consult with their medical provider regarding any symptoms or the need for ongoing evaluation. All agencies are required to establish and implement a methamphetamine response plan for their specific agency and staff. In closing, New Hanover County Sheriffs Office Lieutenant MacNeish stated that the primary goal is the safeguard and welfare of the children. The easiest way to accomplish this is through a community approach and involvement. Chairman Davis requested a motion from the Board to adopt the Metharnplnetarnine Protocol. Motion: Commissioner Caster MOVED, SECONDED by Vice-Chairman Thompson, to adopt the New Hanover County Methamplnetainine Protocol. Upon vote, the MOTION CARRIED UNANIMOUSLY. A complete copy of the New Hanover County Methamphetarnine Protocol is on file in the Department of Social Sergi ices. PRESENTATION OF FY2009-2010 RECOMMENDED BUDGET County Manager Bruce Shell presented the Fiscal Year 2009-2010 Recommended Budget. He proposed a tax rate of 45.25 cents representing no increase from the FY08-09 tax rate. The FY09-10 budget is $21 million, or 8%, less than the FY08-09 adopted budget. In addition to the County revenue being negatively impacted by the NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, MAY 18, 2009 BOOK 31 PAGE 616 current economic conditions, the demand for seivices has increased, especially in the Human Seivices agencies. In addition to the County dealing with the effect of the economy on local revenues, actual or anticipated state reductions are impacting County and County-fiuided programs. The following is included in the recommended budget: New Hanover County Public Schools: • Funding will provide $61.9 million for current operations and $22.4 million for debt service. The Schools requested finding above this level for utilities for a new school in the amount of $212,128 and new buses costing $198,000. This budget does not accommodate that request. The County and the City of Wilmington are working to share the finnding of the Safe Light program, which should be operational during the first part of FY09-10. The County's contribution to the program of $200,000 has been deducted from the Schools finding since the revenue from the program should exceed $200,000 and will be utilized by the Schools. The Schools can use the revenue from the Safe Light program to find operational expenses. Total finnding for the Schools operation and debt sei vice is $3 million less in FY09-10 than the FY08-09 adopted budget. Cape Fear Community College: • Funding of $5.8 million is recommended for Cape Fear Community College's operations, a decrease of $0.3 million from FY08-09. In addition to the direct contribution to Cape Fear Community College, $3.9 million will be expended for debt service in FY09-10, for a total of $9.7 million. Debt sere ice for the 2005 bond referendum does not impact the FY09-10 budget. Personnel Issues: • A total of 104 positions were frozen and ten eliminated. Frozen positions, as well as any positions that become vacant, will be evaluated for essentiality to the delivery- of services. Thirteen positions were requested in the General Fund, but none were recommended. County employees will be required to take up to ten unpaid firrlough days and their personal leave accrual rate will be reduced by five days. • The County's contribution to health insurance will remain constant. The employees will have the option to pay more for their current coverage, or pay the current amount for a reduced plan. Contingencies: • Funds in the amount of $333,000 are recommended in the Contingency Account. Revenues: • The FY09-10 tax base is estimated to be $33.7 billion. This is an increase of less than 1% from FY08-09 base. The value of a penny is projected to be $3.3 million. Revenue from sales tax is expected to decrease $11.4 million, or 22.3%, between the FY08-09 adopted budget and FY09-10 recommended budget. The reduction is due to a projected decrease in sales tax receipts of 6.5% due to the economic conditions and reductions in sales tax due to the legislated Medicaid Sales Tax s-,vap. $3 million of the $11.4 million projected decrease is due to economic conditions and $8.4 million is due to the Medicaid Swap created by the North Carolina General Assembly. • FY09-10 Inspections revenue is anticipated to be $550,000 less than the FY08-09 adopted amount. In addition to a 27% decrease in staffing, reductions have been taken in the operating budget. • FY09-10 Register of Deeds revenue is anticipated to be $1.6 million less than the FY08-09 adopted amount. In addition to a 25% reduction in staffing, reductions have been made in operating expenses. Medicaid: • The three-year phase out of Medicaid, which began during FY07-08, results in the counties being relieved of the Medicaid burden effective July 1, 2009. The state will gradually assume the Article 44 sales tax to help pay for the additional costs being incurred. Counties are required to reimburse municipalities for their loss of Article 44 sales tax, including growth. The ongoing requirement to reimburse municipalities will impact fixture budgets if the legislation remains the same. In FY09-10, the County- -,a-ill have a positive benefit from the Medicaid Sales Tax swap of $1.3 million. Under the current assumptions, Ne-,a- Hanover County sales tax is projected to fall $1.3 million between FY09-10 and FY10-11 due to adjustments in sales tax with no offsetting year to year change in Medicaid, since Medicaid finds are not appropriated in FY09-10. Additional 1/t Cent Sales Tax: • The Commissioners have expressed an interest in presenting a non-binding referendum to the voters in the fall of 2009 for an additional 1/4 cent sales tax. If approved, the revenue would not impact the FY09-10 budget. The Legislature did not provide for these finds to be shared with municipalities. Fund Balance: • $2.5 million of the County find balance is appropriated. Environmental Management Fund: • The Environmental Management Fund is balanced with a $52.75 tipping fee, an increase of $1.75 from the current FY08-09 tipping fee of $51. The 3.4% increase in the tipping fee is necessary to eliminate additional Inter-find loans to the Environmental Management Fund. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, MAY 18, 2009 BOOK 31 PAGE 617 Special Fire Service District Fund: • The tax rate of 6.5 cents is recommended for the Fire Seib-ice District: a 1.5 cent increase from the FY08-09 tax rate. The ad valorem tax base in the Fire Seivice District is estimated to be $12.6 billion. Based on this estimate, each penny- of the tax rate will be worth $1.2 million. Thirteen new positions are recommended to augment staffing throughout the system and finding is included in debt seivice on an additional fire truck. Capital Improvement Program: • No additional funding is recommended for capital projects in this budget due to fiscal constraints. In closing, County- Manager Shell reported that revenue estimates are the best projection that can be made at this point in time. Staff will continue to monitor the budget during FY09-10 to adjust for any changes. Significant funding cuts have been made to the County- Departments and organizations fiunded by the County. After brief discussion, the consensus of the Board is to hold a Budget Work session in conjunction with the regularly scheduled Agenda Review meeting on June 11, 2009 at 4 p.m. in the Harrell Conference Room at the Government Center. Commissioner Barfield stated that due to the impact of loss of County- seivices he is in favor of a tax rate increase stressing that a penny increase in the tax rate on a $200,000 home equates to an increase of only $20 per year in additional taxes. Commissioner Greer stated that he believes government is too big and out of control: necessary County seivices will not be done away with. Chairman Davis stated that he feels the Board needs to hold down taxes: residents can't keep taking the hits. The Federal and State government needs to stop passing unfiunded mandates to the Counties. In response to Board questions, County Manager Bruce Shell confirmed that when the City of Wilmington and County consolidated to form the Cape Fear Public Utility- Authority- an hnterlocal Agreement was established. He reported that he is scheduled to address the Wilmington City Council at their June 2, 2009 meeting to formally request permission to delay a scheduled payment of $1.9 million for FY09-10 to the Authority. The County has received unofficial permission from Authority- staff to delay the payment for one year. He reported that he will keep the Board updated on the Wilmington City Council's decision. In response to Board questions, County Manager Shell confirmed that the County's contribution to the Safe Light program in the amount of $200,000 has been deducted from the Schools finding since the revenue from the program should exceed $200,000 and can be used to fiord operational and transportation related items. Chairman Davis reported that at the Boards Agenda Review meeting they discussed that if the County receives permission to delay the $1.9 million payment then additional finds in the amount of $400,000 could be given to the Schools as was requested for utilities for a new school and buses and also the amount of appropriated Rind balance could be reduced by $1.5 million. Commissioner Barfield voiced his concern in delaying the $1.9 million payment to the Authority- and the pattern of borrowing from find balance to run the County's operations in lieu of increasing the tax rate. Vice-Chairman Thompson stated that he would support the following changes to the recommended budget: • Fire District tax rate increase of 1.5 cents • Ten Year Plan to End Homelessness in the amount up to $25,000 with performance measures included • Increased finding for the New Hanover Soil & Water Conseivation District in the amount of $10,000 • NHC tax rate increase of .5 cent Hearing no more discussion, Chairman Davis thanked County- Manager Shell for the presentation. A copy of the FY2009-2010 Recommended Budget is available for review at www.nlncgov.com. ADOPTION OF RESOLUTIONS AMENDING THE NEW HANOVER REGIONAL MEDICAL CENTER REVENUE BONDS SERIES 2006 AND AUTHORIZING THE CONVERSION TO A FIXED RATE MODE AND SUBSEQUENT SALE OF VARIABLE RATE HOSPITAL REVENUE BONDS SERIES 2006A AND SERIES 2006B AND THE EXECUTION AND DELIVERY OF DOCUMENTS Finance Director Avril Pinder presented the history of the New Hanover Regional Medical Center Revenue Bonds Series 2006A and 2006B. Staff is now requesting the Boards consideration to convert all of the Series 2006 Bonds to a fried rate. Chairman Davis reported that before the Board is a resolution to amend New Hanover Regional Medical Centers Revenue Bonds Series 2006. The Board needs to consider and take action on a First Amendment to a Series Resolution that was adopted NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 31 REGULAR MEETING, MAY 18, 2009 PAGE 618 by the Board on September 5. 2006. The first Amendment is necessaiv to amend terms of the Series Resolution in order to facilitate the conversion of the County's Variable Rate Hospital Revenue Bonds, Series 2006A and 2006B to the Filed Rate Mode. The Series Resolution delegates to the County Manager and the County Finance Director the authority to determine certain terms of the conversion subject to limits set forth in the Series Resolution as amended and asked for a motion to adopt the resolution amending the Nt-i s, Hanover Regional Medical Center Rei,enue Bonds Series 2006. Motion: Commissioner Caster MOVED, SECONDED by Vice-Chairman Thompson, to adopt the resolution amending the NEW HANOVER REGIONAL MEDICAL CENTER REVENUE BONDS SERIES 2006. Upon vote, the MOTION CARRIED UNANIMOUSLY. Chairman Davis continued reporting that the Board also needs to consider. in connection with the conversion of the Bonds, the authorization. execution and delivery of the following: • The Preliminaiv Official Statement dated Mav_ 6. 2009 related to the conversion of the Bonds to a Fixed Rate Mode: • The draft Bond Purchase Agreement, and • The draft Sixth Amendment to Lease Agreement dated as of June 1. 2009 between the Corporation and the County. Chairman Davis asked for a motion to adopt the Resolution authorizing the conversion to a Fixed Rate Mode and subsequent sale of variable rate Hospital Revenue Bonds (New Hanover Regional Medical Center Project Series 2006A and Series 2006B) and grant authority to County officials to execute and deliver documents in connection therewith. Motion: Commissioner Barfield MOVED, SECONDED by Commissioner Caster. to adopt the resolution authorizing the conversion to a fixed rate mode and subsequent sale of variable rate hospital revenue bonds series 2006A and series 2006B and the execution and deliveiv of documents. Upon vote. the MOTION CARRIED UNANIMOUSLY. Copies of the resolutions are hereby incorporated as part of the minutes and contained in Exhibit Book XXXII, Page 11.12. COMMITTEE APPOINTMENTS Appointment to the Commission for Women Chairman Davis reported that one vacancy needs to be filled on the Commission for Women with one new application having being received and requested direction from the Board. Motion: Commissioner Barfield MOVED, SECONDED by Commissioner Caster, to appoint Lisa Thompson MCDow to seine a three-year term on the Commission for Women with the term to expire May 31, 2012. Upon vote, the MOTION CARRIED UNANIMOUSLY. Appointments to the Cooperative Extension Advisory Council Chairman Davis reported that five vacancies need to be filled on the Cooperative Extension Advisory Council with two applicants being eligible for reappointment and requested direction from the Board. Motion: Commissioner Caster MOVED, SECONDED by Commissioner Barfield, to reappoint Sheila K. Chase and Khalilah L. Thrower to seine three-year terms on the Cooperative Extension Advisory Council with the terms to expire May 31. 2012. Upon vote. the MOTION CARRIED UNANIMOUSLY. NON-AGENDA ITEMS Chairman Davis announced that time had been received to allow the public to present an item that was not listed on the regular agenda. He requested all persons speaking to limit their remarks to three minutes. Author Joseph "Skipper" Funderburg presented to the Board of Commissioners a signed copy of his book "Surfing wi the Cade Fear Coast" for placement in the New Hanover County Library. ADDITIONAL ITEMS Commissioner Caster stated that he attended a Tourism Development Authority budget meeting where it was reported that seasonal rentals are down approximately 6% from last year. He continued reporting that House Bill 593 - Change School Starting Date, has passed the House and if approved by the Senate. will grant local boards of education the authority to determine the dates of opening and closing of public schools and changing the current law which extends the tourist season. This legislation could have a negative impact on tourism trade revenue that our area depends on. After brief discussion, the consensus of the Board is to direct staff to draft a letter to the Senate, for the Chairman's signature. on behalf of the Board, stating the County's opposition to House Bill 593. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 31 REGULAR MEETING, MAY 18, 2009 PAGE 619 ADJOURNMENT There being no fiuther business, Chairman Davis requested a motion to adjourn the meeting. Motion: Commissioner Caster MOVED, SECONDED by Vice-Chairman Thompson, to adjourn the meeting. Upon vote, the MOTION CARRIED UNANIMOUSLY. Chairman Davis adjourned the meeting at 12:41 p.m. Respectfiilly submitted, Sheila L. Schult Clerk to the Board Please note that the above miiiirtes are not a verbatim recorcl of the l'eir Hanover Corrrrry Board of Commissioners rneetiltg. The entire Proceetlzngs are available for revieir and check-out at all Xeir Hanover Coulio) Libraries.