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1999-06-08 Budget Work Session NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF BUDGET WORK SESSION, JUNE 8, 1999PAGE 314 ASSEMBLY The New Hanover County Board of Commissioners held a Special Meeting to discuss the 1999-2000 Budget on Tuesday, June 8, 1999, at 5:00 p.m. in the New Hanover County Administration Building, 320 Chestnut Street, Wilmington, North Carolina. Members present were: Commissioner Buzz Birzenieks; Commissioner Ted Davis, Jr.; Commissioner Charles R. Howell; Vice-Chairman Robert G. Greer; Chairman William A. Caster; County Manager, Allen O’Neal; County Attorney, Wanda M. Copley; and Clerk to the Board, Lucie F. Harrell. Staff members present were: Deputy County Manager, Andrew J. Atkinson; Assistant County Manager, Dave Weaver; Finance Director, Bruce Shell; Budget Director, Cam Griffin; Director of Human Resources, Andre’ Mallette; and Public Information Officer, Mark Boyer. Chairman Caster called the meeting to order and reported that during the day, some breaking news had occurred regarding the overcrowding problem at the New Hanover County Jail. He requested County Attorney Copley to comment on this issue. County Attorney Copley reported that a call was received yesterday from Ms Kari L. Hamel, Staff Attorney for N. C. Prisoner Legal Services, Inc. (NCPLS) about the deplorable overcrowded situation at the New Hanover County Jail. Ms. Hamel informed Staff that overcrowding had been a problem in the County Jail for a long period of time, and that NCPLS was ready to file a lawsuit if this situation was not corrected within 48 hours. County Attorney Copley reported that in an effort to abate the crisis, she informed Ms. Hamel about the efforts being taken by the County to reduce the jail population through the Pretrial Detention Release Program and the intent of the Board of County Commissioners to award Phase II of the Jail Space Study contract with Carter Goble Associates, Inc. for planning and design of a new jail facility. Ms. Hamel was also informed about the trip scheduled on June 15, 1999 for the Commissioners to visit the jail in Florence, South Carolina, to see an example of a facility using modular jail cells. After discussion initiated by Captain Steve Smith with Ms. Hamel to extend the time frame to eight or nine days for the Sheriff to see if some of the prisoners could be relocated to other jail facilities, Ms. Hamel informed staff that the number of prisoners had to be reduced within 48 hours or a lawsuit would be filed. Chairman Caster noted that with only 48 hours to respond, he would suggest allowing the NCPLS to file the lawsuit and take the necessary actions to reduce the jail population, which will show that New Hanover County is making a good faith effort to resolve the problem. County Attorney Copley informed the Board that a significant amount of time and money will be involved in a lawsuit that probably cannot be won. Also, a lawsuit will remove control of the situation from the Board of County Commissioners into the hands of the court which could award a significant sum of money. She said at this point, it appears the injunction will probably be filed early next week. A lengthy discussion followed on what actions should be taken by the Board to resolve this complaint. Captain Smith said that calls could be made to other jail facilities to see if they would house some inmates. If housing is found in another county, the fee will be $60 per day per prisoner plus the cost of transporting inmates. Discussion was held on expanding the pre-trial detention release program. Deputy County Manager Atkinson recommended contracting with an agency to add one additional pretrial screener to review the cases to see if the Judges are willing to release some of the prisoners under the monitoring program. Commissioner Birzenieks expressed concern for releasing violent prisoners and later having a heinous crime committed in the community. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF BUDGET WORK SESSION, JUNE 8, 1999PAGE 315 Vice-Chairman Greer spoke in opposition to hiring consultants and architects for the project, and he suggested moving as quickly as possible to relocate some of the prisoners to another jail facility, approve a budget amendment to pay for the relocation and transportation of the prisoners, and find enough land to build a solid structure modular jail cell facility that will have the capability of being expanded in the future. Captain Smith reported the second phase of the contract was divided into two tasks: (1) to assess the number of cell blocks needed, the number of cells for women, the location and coordination of the cells to meet the space needs and required state standards; and (2) review the space needs for the administrative section of the jail. He assured the Board that when this study is completed, the County will have a choice of options, including construction and operational costs as well as what type of jail facility should be constructed to meet the space needs of New Hanover County. The results of the study will show exactly how the facility will look on the site. County Manager O’Neal emphasized the importance of taking the necessary steps to address the jail overcrowding. He requested the Board to approve a budget amendment in the amount of $100,000 from contingencies to house and transport prisoners from the jail to another location. Motion: Commissioner Birzenieks MOVED to approve a budget amendment in the amount of $100,000 from contingencies to the Sheriff’s Department to be used for housing and transporting inmates in the New Hanover County Jail to other locations to immediately reduce the jail population contingent upon any unspent funds being returned to the general fund. Vice-Chairman Greer said he would SECOND the motion if Commissioner Birzenieks would amend the motion to direct the County Manager and Sheriff to begin looking for land as a site for a new jail facility. County Manager O’Neal requested the Board to consider entering into Phase II of the Jail Space Study contract with Carter Goble Associates, Inc. to proceed with planning and design of a new jail facility. Chairman Caster requested Vice-Chairman Greer to explain why he was opposed to performing the second phase of the Jail Space Study contract. Vice-Chairman Greer said he felt the County should not construct an overly elaborate jail. The facility should comply to state and federal standards as well as provide a safe environment for staff and the prisoners. When consultants and architects become involved in a project, the consultant fees are quite expensive. Also, three of the County Commissioners will be attending the National Association of Counties Conference in July where contact can be made with County Commissioners across the country and with exhibitors who will have information on the latest types of jail facilities. Sheriff Joe McQueen emphasized the importance of entering into the second phase of the contract with Carter Goble Associates, Inc. to show the NCPLS that a new jail will be constructed in New Hanover County to meet current and future space needs. He stressed the importance of relieving the overcrowding of the jail which has been occurring weekly for the past two years. Vice-Chairman Greer asked how much money was involved with the second phase of the study. Captain Smith responded $58,000. Vice-Chairman Greer stated after hearing the cost of the study, he was not opposed to entering into the contract with Carter Goble Associates, Inc. County Manager O’Neal said another option to consider is contracting with a private agency to provide an additional pretrial screener for the Pretrial Detention Release Program. Vice-Chairman Greer and Commissioner Birzenieks noted that the motion would be NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF BUDGET WORK SESSION, JUNE 8, 1999PAGE 316 withdrawn if the Board wants to include contracting with a private agency to provide an additional pretrial screener. Amended Motion: After discussion of the Sheriff writing Superior and District Court Judges about moving the cases as quickly as possible to assist with the overcrowding crisis in the jail, Commissioner Birzenieks MOVED, SECONDED by Vice-Chairman Greer to approve budget amendment #99-0195 in the amount of $100,000 from contingencies to the Sheriff’s Department to be used for housing and transporting prisoners to appropriate locations contingent upon any unexpended funds being returned to the general fund; enter into Contract #99-0352 with Carter Goble Associates, Inc. for Phase II of the study; approve associated budget amendment #99-0146 to transfer funds from contingencies for the additional cost of the Phase II Jail Space Study; direct the County Manager and Sheriff to look for land to serve as a site for construction of a new jail facility; and authorize the Chairman to execute the necessary contract documents. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of the contract is on file in the Legal Department. Budget Amendment #99-0195 - Non-Departmental/Sheriff/Jail Debit Credit Non-Departmental: Contingencies$100,000 Sheriff/Jail: Contracted Services - Jail$100,000 Explanation: To transfer funds from contingencies to relieve the jail overcrowding. Budget Amendment #99-0146 - Non-Departmental/Sheriff/Administration Debit Credit Non-Departmental: Contingencies$28, 535 Sheriff/Administration: Contracted Services$28,535 Explanation: Transfer funds from contingencies for the additional cost of Phase II of the Jail Space Study for the Sheriff’s Department. The Board of County Commissioners approved $30,000 for Phase II at the February 1999 retreat; however, the total cost is $58,535. The additional cost is related to expansion beyond the jail. BREAK Chairman Caster called a break from 6:00 p.m. until 6:15 p.m. Chairman Caster called the Budget Work Session to order and noted that former Senator Franklin Block was present and would like to speak on behalf of the St. John’s Museum of Art. Mr. Block spoke on the need to raise an additional $4,500,000 for the new building to house the St. John’s Museum of Art. The total cost of the project is $10,500,000 of which $6,000,000 has been received through a donation by Mr. Bruce Cameron and his family. This fund raiser is one of the largest ever held in the county and the response from the community has been excellent. In order to receive federal and state grants, the state legislators and congressmen want to know if the local governments are supportive of the project since this support is a vital part of the grant application. In concluding his remarks, Mr. Block commented on the importance of the St. John’s NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF BUDGET WORK SESSION, JUNE 8, 1999PAGE 317 Museum of Art to the quality of life in New Hanover County, and he stated this was the only museum in the states of North Carolina and South Carolina that had sent an exhibit to the Metropolitan Museum of Art in New York. He requested the Board to consider a contribution of $150,000 for the new building, and he informed the Board that the City of Wilmington has committed to a funding contribution of $100,000 spread over a period of years. Chairman Caster expressed appreciation to Mr. Block for the presentation. Chairman Caster requested the Board to review and consider the following funding requests and funding recommendations from the Human Services Allocation Advisory Committee (HSAAC): Funding Request Submitted by Elderhaus: Commissioner Birzenieks reported that Elderhaus was the only agency making a funding request that presented a pro-formula showing the amount of savings to New Hanover County through the Elderhaus program by keeping the elderly out of rest homes and nursing homes. He requested the Board to consider increasing the Elderhaus funding by $35,800 if the funds are removed from the DSS Medicaid budget. Motion: After discussion of the services provided by Elderhaus saving a significant amount of the Medicaid cost to New Hanover County, Commissioner Birzenieks MOVED, SECONDED by Commissioner Howell to approve the entire funding request submitted by Elderhaus in the amount of $124,800, representing an increase of $35,800, contingent upon removing the additional funding from the DSS Medicaid budget. Upon vote, the MOTION CARRIED UNANIMOUSLY. Funding Request Submitted by Coastal Horizons/Crisis Line/Open House: Vice-Chairman Greer referenced the recommended funding in the amount of $75,000 instead of $92,000 for Coastal Horizons and he requested an explanation. Deputy County Manager Atkinson responded that the Human Services Allocation Advisory Committee (HSAAC) has the difficult task of allocating the same amount of funding each year to all outside agencies submitting funding requests. This process requires a complete review of each agency to determine how the dollars are spent compared to the service provided. With so many agencies continually requesting increased funding annually as well as new agencies submitting funding requests, this Committee has to determine whether the service is needed, and if so, how these dollars are being spent to provide the service. This has become a demanding task for the HSAAC. Consensus: After further discussion, it was the consensus of the Board to accept the funding recommendation of the HSAAC for Coastal Horizons/Crisis Line/Open House. Funding Requests Submitted by Cape Fear Literacy Council, Keys Community Rehabilitation Program, East Coast Solutions, Meals on Wheels Council, Community Living Wilmington, Arts Council of the Lower Cape Fear and the Wilmington Boys Choir Vice-Chairman Greer requested an explanation of the services provided by the Community Living Wilmington agency. Budget Director Griffin said this agency helps people to learn life skills so they can become independent and productive citizens. Vice-Chairman Greer asked why new outside agency funding requests are considered when the money allocated by the County for these organizations remains the same each budget year. County Manager O’Neal explained that members of the Human Services Allocation Advisory Committee (HSAAC) are assigned the task of reviewing a funding request submitted by any outside agency. Their job is to decide if a particular service is needed, if it is a duplication of another service already in place, and if County funds are being spent to provide a worthwhile service to the community in an effective and efficient manner. Consensus: After a thorough discussion of funding received by each agency from other sources, it NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF BUDGET WORK SESSION, JUNE 8, 1999PAGE 318 was the consensus of the Board to accept the funding recommendations submitted by the HSAAC for the following agencies: Coastal Horizons/Crisis Line/Open House$75,000 Cape Fear Literacy Council$20,000 Keys Community Rehabilitation Program$ -0- East Coast Solutions$ -0- Meals on Wheels Council$ -0- Community Living-Wilmington$ -0- Arts Council of the Lower Cape$25,920 Wilmington Boys Choir$ -0- Funding Request Submitted by the St. John’s Museum of Art: Vice-Chairman Greer said he could not support a funding request in the amount of $150,000 to the St. John’s Museum of Art. He suggested considering a smaller amount, and he expressed opposition to the recommended funding request of $75,000 for the N. C Aquarium at Fort Fisher. Commissioner Birzenieks commented on the number of people that come to the community to visit the St. John’s Museum of Art and he asked if there were figures available to show the number of people that visit the Museum on an annual basis. Mr. Block reported that last year more than 40,000 people visited St. John’s Museum of Art. When the new building is completed and operational, that figure is expected to increase to more than 100,000. These visitors spend money in the community and contribute to the overall economy. Currently, the Museum provides an art appreciation program to the schools and thousands of students in southeastern North Carolina participate in educational tours of the museum. There is also an instruction program for art teachers. The Museum also serves as a venue for traveling exhibitions, and it is the only institution that has been dedicated to collecting, preserving, and documenting the art of North Carolina from the 18th, 19th, 20th, and into the 21st century. Chairman Caster objected to being asked to fund agencies that are the responsibility of the State such as the N. C. Aquarium at Ft. Fisher and USS North Carolina Battleship. He also spoke in opposition to funding a private agency such as the Friends of Public Radio. Vice-Chairman Greer recommended splitting the $75,000 funding recommendation between the St. John’s Museum of Art and the N. C. Fort Fisher Aquarium. Motion: After further discussion, Vice-Chairman Greer MOVED, SECONDED by Commissioner Birzenieks to fund $37,500 to the N. C. Fort Fisher Aquarium and $37,500 to the St. John’s Museum of Art for one year. Upon vote, the MOTION CARRIED as follows: Voting Aye:Commissioner Birzenieks Commissioner Davis Commissioner Howell Vice-Chairman Greer Voting Nay:Chairman Caster Funding Request Submitted by Friends of Public Radio: Commissioner Davis requested the Board to consider a $4,000 funding recommendation to Friends of Public Radio. Commissioner Birzenieks commented on the Public Radio station being an asset to the community and he recommended providing funding to the agency. Motion: After further discussion of the funding request, Vice-Chairman Greer MOVED, SECONDED by Commissioner Birzenieks to approve a funding request in the amount of $3,000 to the Friends of Public Radio. Upon vote, the MOTION CARRIED AS FOLLOWS: NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF BUDGET WORK SESSION, JUNE 8, 1999PAGE 319 Voting Aye:Commissioner Birzenieks Commissioner Davis Commissioner Howell Vice-Chairman Greer Voting Nay:Chairman Caster Funding Requests Submitted by Friends of Felines and the Pied Piper Program: Chairman Caster commented on receiving a call about the Pied Piper Program and he requested an explanation of the services provided by this organization. Budget Director Griffin informed the Board that the Pied Piper Program has been operated by the Junior League for 50 years. The purpose of the program is to bring live theater to second graders in area schools so children have an opportunity to learn songs of the production and interact with the cast members before the production is held. Since the Junior League has become involved in the Carousel Center, it does not feel it can continue to fund the $5,000 needed for the program. Consensus: After further discussion of the Friends of Felines and Pied Piper Program, it was the consensus of the Board to accept the no funding recommendations submitted by the HSAAC. Funding Request Submitted by the Child Advocacy Commission of the Lower Cape Fear: Vice-Chairman Greer commented on the $7,000 reduction of funding recommended by the HSAAC for the Child Advocacy Commission and he requested an explanation of why these funds were reduced when this agency is known for the services provided to children. Deputy County Manager Atkinson explained that the Child Advocacy Commission receives state, federal, and Juvenile Justice Partnership funding as well as funding from the county. After a review of the program and funds received, the HSAAC felt the recommended funding was sufficient. Consensus: It was the consensus of the Board to accept the funding recommendation of $15,000 for the Child Advocacy Commission as recommended by the HSAAC. Funding Request Submitted by the Sheriff’s Department: Sheriff McQueen commented on the quality of services being provided by the Domestic Violence Task Force and the Gang Task Force, and he requested the Board to consider funding in the amount of $125,630 to keep each task force in operation. He informed the Board that no additional positions were being requested by the Sheriff’s Department because of the assistance given to the detectives by these groups. Vice-Chairman Greer recommended funding for both groups since they are cost effective. Deputy County Manager Atkinson said the Domestic Violence Task Force has saved thousands of dollars in medical, court, and jail costs through mediation with families. He noted that New Hanover County has one of the most successful programs in the state. Sheriff McQueen expressed concern for the proposed 3% market adjustment and he informed the Board that a detective at the Wilmington Police Department earns more money annually than a Sergeant with the Sheriff’s Department. He said if this inequity continues, the County will be losing law enforcement officers and the morale of the department will be destroyed. He requested the Board to consider a 5% merit increase for these law enforcement officers. County Manager O’Neal explained that a 3% market adjustment is recommended in the budget based upon performance. Also, $306,020 has been budgeted to fund a $10 per pay period contribution to a 401(k) account for employees who are not sworn law enforcement officers. It appears that City employees will receive a 4 ½ percent contribution to a 401(k) account. The sworn law enforcement officers will receive a 9 ½ percent contribution to the 401(k) account. The City also has a policy whereby a paid percentage of an employee’s accumulated sick leave is received upon retirement under the N. C. Local Government Retirement System. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF BUDGET WORK SESSION, JUNE 8, 1999PAGE 320 Human Resources Director, Andre’ Mallette, advised that for years the City has paid 25 percent of the accumulated sick leave when an employee is eligible to retire under the Local Government Retirement System. The remaining 75 percent of accumulated sick leave is forwarded to the retirement system to be applied toward additional years of service. Commissioner Birzenieks spoke in favor of the POD concept, and he requested the Board to include the percentage payment of sick leave upon retirement as part of the Pay and Classification Study. Consensus: It was the consensus of the Board for the percentage payment of sick leave to be included as part of the Pay and Classification Study. Discussion was held on whether New Hanover County was competitive with other Sheriff Departments throughout the state. Director Mallette explained that when the pay scale is adjusted, the local market is compared with salaries paid in other counties. He commented on the need for the salary scale to be competitive on the local market and said the County’s pay range for a deputy begins at $23,500 up to $33,700. The City Police Officer’s range begins at $25,000 to $34,884. Sheriff McQueen again requested the Board to allow him to give a 5% merit increase to law enforcement officers that are eligible and deserving of the increase. A lengthy discussion followed on how to resolve this inequity of pay for law enforcement officers. Commissioner Birzenieks expressed grave concern for considering a 5% merit for law enforcement officers and not for all county employees because of the morale problem that will be created. He suggested requesting the Human Resources Director to identify the positions throughout the county, including deputies, that are difficult to fill or recruit because of compensation. Once these positions have been identified, these salaries should be adjusted. A lengthy discussion was held on a market adjustment versus a merit increase. Sheriff McQueen urged the Board to include some type of merit increase in the budget for FY 1999-2000 because this will allow him some flexibility in making adjustments to salaries. Discussion was held on the current Pay and Classification Study that should be completed by January 2000. County Manager O’Neal informed the Board that policy issues will be addressed in the Pay and Classification Study regarding the award of merit increases, market adjustments, reclassifications and other compensation issues. Commissioner Birzenieks asked how many deputies will be lost if the County does not resolve the inequity of pay between the Wilmington Police Department and Sheriff’s Department. County Manager O’Neal responded that this question could not be answered. BREAK Chairman Caster called a break from 7:15 p.m. until 7:45 p.m. Chairman Caster reconvened the meeting and requested the Board to decide if salaries in the Sheriff’s Department should be addressed immediately or as part of the Pay and Classification Study that will be completed in January 2000. County Manager O’Neal noted that if the Board decides to wait until the Pay and Classification Study is completed, the increases should be implemented no later than July 1, 2000. If the salary inequity is not addressed by this time, morale problems could continue to erode at the Sheriff’s Department and positions will be lost. He stated the Board could consider eliminating the $306,020 budgeted for a $10 per pay period contribution to a 401(k) account for employees and include a merit for all county employees in lieu of a market adjustment. Chairman Caster asked if a 1% merit would more beneficial to the employee than the $10 per pay period contribution to a 401(k) account. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF BUDGET WORK SESSION, JUNE 8, 1999PAGE 321 Director Mallette responded that a 1% merit would be more beneficial to the employee. From a fixed cost point of view, the 401(k) contribution would be more beneficial for the County. Commissioner Birzenieks said the $10 per pay period contribution to each employee is minimal, and he recommended considering a 1% merit. Vice-Chairman Greer noted that Sheriff McQueen has a real concern; however, it would not be wise to take action until the Pay and Classification Study has been completed. If the Sheriff has a problem between now and the first of the year, he can approach the Board for funding assistance. Sheriff McQueen asked if he could have additional funding to balance out some of the salaries in the Sheriff’s Department. Deputy County Manager Atkinson recommended switching the market adjustment to merit to provide more flexibility in compensating the employees. He said the new Pay and Classification Study will have separate salary schedules for certain employees. This will allow more flexibility in the pay plan. Motion: After a lengthy discussion, Commissioner Birzenieks MOVED, SECONDED by Commissioner Howell to include a 2% market adjustment and a 2% merit increase in the FY 1999- 2000 budget. Upon vote, the MOTION CARRIED UNANIMOUSLY. Sheriff McQueen requested funding in the amount of $15,800 for the Medical Office Assistant position at the Jail. Budget Director Griffin commented on the Environmental Epidemiologist position requested by the Health Department and she asked if the Board wanted to fund this position. County Manager O’Neal read the justification of the position. Commissioner Howell suggested allocating this funding toward the jail position. Consensus: After discussion of the additional funding for positions requested by the Health Department, it was the consensus of the Board to fund the Medical Office Assistant position for the Jail. Funding Request Submitted by the New Hanover County Schools: County Manager O’Neal informed the Board that the budget submitted by the Board of Education was not prioritized; however, after meeting with Mr. Ed Higgins, Chairman of the Board of Education, and Chairman Caster, the following items were discussed: Teacher Supplements$2,500,000 Web Academy 400,000 Technology Facilitators 500,000 Language Arts Coordinators 500,000 Elementary School Foreign Language 500,000 Total$4,400,000 A lengthy discussion followed on supplements for teachers. Budget Director Griffin explained the schools will need $1.1 million to match the State pay increases for County funded teachers. This funding is over and above the $4,400,000 requested above. The State has recommended a 7 1/2% increase for local teachers, 8% increase for Administrative personnel, and 3% increase for classified personnel. The County will be responsible for matching the supplements for 635 county paid teachers and employees. Commissioner Birzenieks stressed the importance of informing the public about the number of teachers and school employees funded by New Hanover County. He asked if the additional $3.7 million includes enough money for teacher supplements and school maintenance. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF BUDGET WORK SESSION, JUNE 8, 1999PAGE 322 Budget Director Griffin responded the funding now appropriated to the schools would be about $100,000 short. Chairman Caster reminded the Commissioners that the Board of Education will decide how the County funding will be used. If additional funding is approved for teacher supplements and maintenance, there is to no way to be sure the Board of Education will use these funds for those purposes. Commissioner Birzenieks agreed and stated he would like to be sure that enough money is available for the teacher supplement and maintenance regardless of how the funds are used by the Board of Education. Commissioner Davis expressed grave concern for continually increasing the property tax each year, particularly when an additional 12 cents will have to be added in the next few years to pay for school bonds. County Manager O’Neal said in order to fund teacher supplements, maintenance, the language program and capital outlay, an additional $359,000 is need above the recommended budget for FY 1999-2000. He said when asking for priorities during the budget process, the only response received from the School Administrative Staff was that no priorities would be submitted because all the items are needed. Commissioner Birzenieks requested the amount of additional funding needed to pay for teacher supplements, the 7½ % State mandated salary increase to teachers, and maintenance. Budget Director Griffin responded the 7 1/2% State mandated increase for 636 county teachers and employees would equal to $1.1 million; the teacher supplements would equal to $2.5 million; and $1 million for maintenance which equals to $4.6 million. County Manager O’Neal stated the money budgeted for schools in the current operating budget is $3,466,000 which is a difference of $1,200,000 to pay for these items. A penny on the tax rate represents $1.5 million. Commissioner Birzenieks stressed the importance of remaining competitive in compensation for teachers since there is a shortfall of teachers across the country. Vice-Chairman Greer recommended reducing the teacher supplement figure to $1,500,000 instead of $2,500,000. Chairman Caster stated that 99% of the teachers are worthy of the proposed increases; however, it is difficult to believe that bad teachers are being dismissed. Comments are constantly received from parents and teachers about the need to dismiss teachers who do not perform. He said the recent example of a principal recommending dismissal of three teachers and the Board of Education reinstating two of the teachers is disheartening when the State is mandating a 7 1/2% salary increase. Commissioner Birzenieks again reminded the Board of the need to remain competitive in compensation for teachers. Commissioner Davis expressed grave concern for the schools not being accountable for the funding requested. He requested the Board to consider additional funding in the amount of $1.1 million to fund teacher supplements, the 7 1/2% State salary increase for 635 teachers and employees funded by the County, and to fund school maintenance needs. He said if the Commissioners provide the additional funding, each member of the Board will know that adequate funding was provided to pay for the salary increases for teachers and maintenance of the schools. If the Board of Education decides to use the funding for other purposes, that will become their problem. A lengthy discussion was held on increasing the tax rate by 1 cent to cover the additional $1.1 million for the School Budget. Vice-Chairman Greer requested the Board to consider the following projects NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF BUDGET WORK SESSION, JUNE 8, 1999PAGE 323 that are already underway: (1) school bond issues that have not been sold; (2) implementation of the Pay and Classification Study; (3) renovation of the Courthouse; (4) a new jail; (5) development of Veterans Park; (6) the need to rebuild the wastewater treatment plant that is running out of capacity; (7) construction of an administration building; (8) funding for maintenance, desks and supplies for new schools; (9) maintenance for new buildings at Cape Fear Community College; (10) lowering of the tip fee at WASTEC; and (11) development of Airlie Gardens. Chairman Greer stated these items are already underway and will have to be paid by the County. Chairman Caster expressed concern for continuing to increase the tax rate, and he asked County Manager O’Neal if the County budget could be cut to allow the additional school funding to be approved with a tax rate of 55 cents. County Manager O’Neal said the tax rate could be levied at 55 cents; however, this action will create the elimination of programs. He said the budget has been reviewed numerous times by staff and cannot be reduced without eliminating some programs. County Manager O’Neal said that over the past ten years, the County has responded to the demands and needs of the citizens. The County has experienced a tremendous amount of growth without a significant increase in the industrial sector. The citizens have demanded the services and very few people have come to budget hearings about increases in the tax rate for the past five years because they realize the County has to pay for these services. Commissioner Birzenieks commented on the need to implement a local option sales tax and he stated unfortunately the members of the General Assembly have not been willing to work with local governments. He also commented on consolidation and stated the competitiveness between the City and County salary schedules for law enforcement officers is a prime example of why the two governments should be consolidated. Discussion was held on the services provided by the County that are not mandated. Commissioner Birzenieks stated that if the Museum, Library, Department of Aging, and the Human Services Transportation System were eliminated, approximately $4.1 million could be saved. This would reduce the tax rate by 3 cents, but these services are needed to maintain the quality of life in New Hanover County. Discussion was held on the million dollars in funding for outside agencies. Commissioner Birzenieks commented on the services provided by these agencies and said without these organizations the cost would be higher. Further discussion was held on removing money from the fund balance. The members of the Board agreed that to remove money from the fund balance would not be prudent at this time. Consensus: After further discussion, it was the consensus of the Board to approve increasing the tax rate to 56.5 cents to provide an additional $1.1 million for the schools to fund teacher supplements and the 7 1/2% State salary increase for the 635 County funded teacher and employee positions; fund school maintenance needs; and request the County Manager to draft a letter informing the Board of Education about the desired use of the additional funding as approved by the Board of County Commissioners. County Manager O’Neal said with the additional $1.1 million in funding, New Hanover County will be contributing $50.5 million to New Hanover County Schools. ADJOURNMENT County Manager O’Neal expressed appreciation to the Board for spending the time to work on the budget. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF BUDGET WORK SESSION, JUNE 8, 1999PAGE 324 Chairman Caster adjourned the meeting at 9:30 p.m. Respectfully submitted, Lucie F. Harrell Clerk to the Board