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1998-01-23 Budget Retreat NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BUDGET RETREAT, JANUARY 23 & 24, 1998PAGE 286 ASSEMBLY The New Hanover County Board of Commissioners held a Budget Retreat on Friday, January 23-24, 1998, at 1:00 P.M. in the Landfall Hampton Inn & Suites Conference Room located at 1989 Eastwood Road, Wilmington, North Carolina. Members present were: Commissioners Buzz Birzenieks; Ted Davis, Jr.; 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. Chairman Caster called the meeting to order and announced before discussing the items listed on the agenda, he would like to provide time for each Commissioner to present any issue that should be addressed during the budget process. Commissioner Birzenieks noted that crime has become a major issue with the citizens, particularly around the schools. He commented on the letter received from Dr. and Mrs. Rosenberg and stated Mayor Hicks was in the process of trying to purchase the C&J Grocery Store at the corner of 10th and Castle Streets as a site for a police substation. He stressed the importance of protecting our children when attending school and stated the issue of crime will have to be addressed by the local governments and the entire community. Discussion followed on the placement of deputies in the middle schools. Deputy County Manager Atkinson advised that a deputy had been placed at the Williston School; however, deputies had not been assigned to every middle school. County Manager O’Neal advised a request for additional deputies was on the February 2, 1998, agenda. If approved, this will allow the Sheriff to place deputies at every middle school. Chairman Caster spoke on receiving a number of calls about problems being experienced with drainage, failing septic systems, and poor water quality. He stated these issues will have to be addressed and thoroughly explained to the public. The citizens cannot understand why sewer has not been provided to the entire county nor do they realize the costs that will be involved with implementation of a drainage system. Since no other items were presented, the County Manager was requested to begin with the prepared agenda. OVERVIEW OF RETREAT FORMAT County Manager O’Neal advised that he was excited about the retreat because it was an opportunity for staff to receive direction from the Board in preparing the FY 1998-99 Budget. He stated the agenda format had been changed with a title, explanation, and recommendation prepared by staff for each item. It is hoped the new format will assist the Board in reviewing the various budget items. OVERVIEW OF BUDGET PREPARATION PROCESS AND BUDGET CALENDAR Budget Director, Cam Griffin presented the Budget Calendar and reported the Board may want to meet with the Board of Education in the near future to discuss the schools needs for the upcoming year so the Budget Department will have an idea of the amount of funding that will be requested by the New Hanover County School System. Commissioner Birzenieks agreed and recommended scheduling a meeting with the Board of Education as soon as possible so both boards will be heading down the same road. County Manager O’Neal offered to arrange a meeting and asked if the Board would like for an agenda to be prepared by Chairman Caster and Chairman Lineberry or by he and Dr. Martin. Recommendation: The Board requested the County Manager and Superintendent of School to prepare the agenda for the joint meeting with the Board of Education. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BUDGET RETREAT, JANUARY 23 & 24, 1998PAGE 287 Budget Director Griffin reported the Commissioners will receive budget notebooks containing outside agency budget requests, departmental budget requests (line item details), and printouts on March 9, 1998. From March 9-27, departmental budget meetings will be held with the County Manager and Budget Team. The recommended budget will be presented to the Board of County Commissioners on May 4, 1998. Budget Work Sessions will be scheduled from May 5-17, 1998. The Public Hearing for the FY 1998-99 Budget will be held on May 18, 1998. The final budget will be adopted on June 1, 1998. In closing, Director Griffin reported that outside agency budget requests has been corrected by the Budget Department in the past with telephone calls having to be made to each agency to receive corrected figures. Since this is a time consuming process, the Board was asked if it was necessary for staff to continue to correct the forms. Recommendation: It was the recommendation of the Board for the budget staff to continue to correct figures on outside agency budget requests. Vice-Chairman Greer commented on attending a seminar on volunteers in Greensboro, North Carolina, and it became apparent that counties are not aware of the services being rendered by various groups who are requesting funding. If the Work First Family Assistance Welfare Plan is going to be administered by New Hanover County, the agencies being funded should assist with providing the services to carrying out the program. County Manager O’Neal recommended including a clause in the FY 1998-99 human services contracts that will require each agency to cooperate with the County in administering the New Hanover County Work First Family Assistance Welfare Plan. Chairman Caster commented on the need for everyone to understand the services being rendered by each organization in the community. He stated after talking to Ms. Connie Parker, it was felt that a seminar should be scheduled to bring the outside agencies together and allow each agency to explain the services being rendered. The Medical Center would be the ideal entity to develop the program, and discussion has been held with Ms. Judy O’Neal. A meeting has been scheduled for next week to see if this type of conference can be held. The Board will be informed about the progress of this concept. Commissioner Birzenieks agreed with the idea of holding a conference and stated there could be some duplication of efforts that need to be consolidated. Also, it is difficult to understand why these agencies do not develop uniform policies to access the benefits and procurement markets, which would save a great deal of money in providing employee benefits and purchasing supplies. Vice-Chairman Greer advised that many of the agencies receive funding based on the number of clients served; therefore, there is no incentive to form cooperative agreements. He requested Deputy County Manager Atkinson to contact Howard Brown, Jackie Oakes, and Ben Newton to inform them about the idea of holding a seminar so they can participate in the program. Also, the Junior League could coordinate the activities of the outside agencies as one of their projects during the year. Discussion followed on the services performed by the Human Services Allocation Committee. County Manager O’Neal advised the Human Services Allocation Advisory Committee spends a tremendous amount of time visiting outsides agencies to determine the services rendered and review budget requests submitted by these agencies. During the past five to six years, the Human Services Allocation Advisory Committee has been given the same amount of County funding to distribute among all outside agencies. The funding is allocated by a complete review of the agency and the services being rendered for the dollars received from New Hanover County. Many of the agencies become upset when increased budget requests are not approved. It is felt that most outside agencies requesting funding provide services needed to fill in gaps that cannot be provided by the County. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BUDGET RETREAT, JANUARY 23 & 24, 1998PAGE 288 Vice-Chairman Greer expressed concern for the same people serving on the Human Service Allocation Committee for a number of years. Many of the outside agencies do not feel the funding is being equitably distributed when appearing before the same committee year after year. If an entirely different group reviewed the budget requests, it might be beneficial to the outside agencies. Budget Director Griffin advised the Human Services Allocation Advisory Committee reviews the Community Based Alternative (CBA) funding in the amount of $260,000 received from the State. The State recommends funding of certain groups for distribution of the money. Also, representatives from the Southeastern Center, Health Department, and Department of Social Services are aware of the services needed and provided by the various agencies. Recommendation: After further discussion, Chairman Caster was authorized to work with Ms. Judy O’Neal and Ms. Connie Parker to see if a conference can be held. PRESENTATION OF GOALS AND OBJECTIVES FOR THE FY 1998-99 BUDGET Budget Director Griffin presented a list of objectives as outlined in the adopted budget: (1)Incorporation of the multi-year Capital Improvement Program as an integral part of the annual budget process. (2)Concentration on the infrastructure and operational requirements of the Enterprise Funds, Water & Sewer and Environmental Management, to meet the growth needs of the County. (3)Provision of funding for construction and renovation of 30 public schools (20 elementary, 6 middle, and 4 high schools) to meet facility needs based on current and anticipated population growth. (4)Enhancement of fiscal efficiency through improved electronic communication and payment systems. (5)Maintenance of tax collection rate of at least 98 percent. (6)Maintenance of a strong undesignated, unreserved fund balance equaling at least 16.7 percent of the total General Fund budget. (7)Improvement in the customer service orientation of County employees through training in service, efficiency, and effectiveness. (8)Uniformity in permitting and regulatory policies. (9)Maintenance and enhancement of the County’s high quality of life through coordination of its currently diverse planning efforts. (10)Implementation of a welfare reform program which effectively moves clients towards self- sufficiency. (11)Development of a facility needs and utilization of plan for New Hanover County. (12)Enhancement of the County’s technological resources to provide more efficient internal operations and greater public access. (13)Determination of the most efficient and cost-effective means of providing Emergency Medical Services to County citizens. Discussion followed on whether a Capital Improvement Program was needed. Budget Director Griffin informed the Board that during the bond review, concern was expressed about New Hanover County not having an adopted Capital Improvement Program. Staff has developed a three- year program, and the projects approved by the Board this year will be placed in the FY NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BUDGET RETREAT, JANUARY 23 & 24, 1998PAGE 289 1998-99 Budget. An ordinance will be adopted with a list of projects for 1998-99 and the next two years. The projects can be changed for the second and third years during the budget process. Commissioner Birzenieks asked if capital funding should be included for the vocational education program? A lengthy discussion followed on whether a separate building or multiple sites should be devoted entirely to a vocational education center. County Manager O’Neal reported on attending a meeting of the Planning Committee at Cape Fear Community College, and stated the entire focus of the Committee was to coordinate existing resources within the New Hanover County School System, Pender County School System and Cape Fear Community College to provide a vocational education program. When performing a poll, both school systems and the Community College felt that designating a building specifically for vocational education was not needed in either New Hanover or Pender counties because 80% of high school graduates go away to college, attend a two- year college or join the military. Resources are available to provide the program, but arranging schedules to move high school students into programs administered by Cape Fear Community College has not been resolved. County Manager O’Neal stated after attending the Planning Committee meeting, he had a different perspective on how vocational education can be provided. He advised that educators feel cooperative programs could be developed to provide training without excessive costs. The Committee feels that a cooperative vocational education program can be implemented in public schools by 1999. Vice-Chairman Greer expressed concern for looking inside the box instead of outside the box. He expressed concern for trying to develop the program as presented by the County Manager and stated this was not what he had in mind when he made the original recommendation. The vocational education program should be a separate unique program for New Hanover County that includes higher training levels so the school will not be designated as a vocational school. The school should be called a technology center and provide advance courses for highly intelligent high school students as well as provide vocational skills for students who do not want to attend college. This type of center will initially cost money, but in the long-term, money will be saved if all students have an opportunity to be prepared to join the work force and become productive citizens. Commissioner Birzenieks commented on the importance of the technology center to the Board of County Commissioners, and he recommended addressing this item as part of the budget for next year. Chairman Caster stressed the importance of discussing this issue with the School System and Cape Fear Community College before deciding how to approach development of a vocational education program. Discussion followed on money being set aside for development of a vocational education center. Vice-Chairman Greer advised that money had been appropriated for the vocational education center. Finance Director, Bruce Shell, reported the County requested approximately $400,000 from the State school bond issue to be used by the schools. Also, there is an additional $400,000 that has accumulated in the State bond fund that has not been requested by the County. Vice-Chairman Greer advised that he did not feel the $400,000 was to be appropriated for use by the schools. It was his understanding this funding would be appropriated to the technology center. Finance Director Shell responded this was not his understanding. Deputy County Manager Atkinson reported when the County decided to use Certificates of Participation, in lieu of bond proceeds, to purchase the entire 210 acres on Carolina Beach NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BUDGET RETREAT, JANUARY 23 & 24, 1998PAGE 290 Road for a new school site and park, the $3.2 million of bond money became available. He advised that some of these funds could have been appropriated for the vocational education program. Vice-Chairman Greer stated this was a separate issue. He recommended requesting the Clerk to the Board to check the minutes to see the official action taken by the Board. Recommendation: It was the recommendation of the Board to request the Clerk to the Board to review the minutes. Commissioner Birzenieks commented on the appointment of the Community Crime Task Force and asked if there was a budget objective to state that the Board of County Commissioners will take the necessary action to provide a safe environment through the support of law enforcement. Chairman Caster recommended including this item under Objective 9. Vice-Chairman Greer suggested combining the fourth and twelfth budget objectives. Recommendation: After further discussion, the Board recommended amending the following objectives: Objective 3: Provision of funding for construction and renovation of 30 public schools (20 elementary, 6 middle, and 4 high schools) to meet facility needs based on current and A priority of the Board of County Commissioners is the anticipated population growth. joint development of a vocational education program by the New Hanover County School System and Cape Fear Community College. Objective 9: Maintenance and enhancement of the County’s high quality of life through efforts to focus on reducing crime. coordination of its planning Combine Objectives 4 and 12. PRELIMINARY FY 1998-99 BUDGET PROJECTIONS Budget Director Griffin presented the following budget projections: The ad valorem taxes and interest are projected to increase by 7.2%. Overall revenue increased by 5.1% and expenditures increased by 12.1%. The increase in expenditures is due to a 21.1% increase for Cape Fear Community College, an 18.2% increase for New Hanover County Schools, and a 28% increase in debt service. The difference in expenses and revenues is $9,041,410, and the value of a penny on the tax rate is $1,009,400 which represents a tax increase of 8.96 cents. County Manager O’Neal emphasized the importance of the news media recognizing these figures as projections and stated this does not mean the tax rate will increase by 8.96 cents. The figures will be refined many times before the budget is adopted. Discussion was held on the status of Emergency Medical Services. Budget Director Griffin noted it was assumed that New Hanover Regional Medical Center would continue to provide a contribution of $2 million to close the gap. If the contribution should be discontinued, this would negatively impact the budget. County Manager O’Neal advised that staff was trying to perform an integrated study before making a decision on whether EMS should be under the operation of the County or the Medical Center. If the service remains under the County, the level of services should be upgraded, which will require a fully integrated emergency service. Hopefully, the County can take advantage of the many organizations that provide the current services. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BUDGET RETREAT, JANUARY 23 & 24, 1998PAGE 291 EMPLOYEE COMPENSATION Human Resources Director, Andre Mallette, reported last year Commissioner Birzenieks questioned if the County had a philosophy of compensation regarding how employees are paid according to the market. It has been the County Administration’s practice to make recommendations to the Board that will bring the pay rates up to the median of comparable local governments; hence, the County has tried to pay at 100% of the median. In practice, the County uses the current fiscal year’s compensation data to determine a market adjustment for the next fiscal year’s budget. This means the salary schedule for the next year will increase the rate of pay to what it should be for this year. Under this plan, the county has been playing catch-up because by the time the market adjustment goes into effect, the organizations surveyed have made another adjustment. In order to change this system, the Human Resources Department would like to propose a slight change in the County’s philosophy by building into the market adjustment recommendation an allowance for aging the current year’s data. For example, funding for the market adjustments could be at 103% of the current year’s median or prevailing pay rates. At a minimum, the Human Resources Department recommends funding at least 100% of the median. Since the County did not have a market adjustment for the current fiscal year, it is imperative for the salary schedule to be competitive, particularly with competition and the relatively high cost of living in New Hanover County. In order to bring the salary schedule up to the current market, it will take a 4.66% market adjustment since no market adjustment was made last year. Discussion followed on the salary adjustment of FY 1998-99. Director of Human Resources Mallette presented the following summary of the annual survey: (1)The Department of Human Resources used the North Carolina International Personnel Management Association annual survey. This survey includes compensation data from comparable local governments in North Carolina. (2)The Department of Human Resources compares the annual minimum salary for the County’s classifications to the survey respondents’ annual minimum salaries. (The annual minimum salary is the normal hiring rate.) (3)The Department of Human Resources determines the median (mid-point) annual minimum salary of the survey respondents for each of the classifications used. (4)The median rates are entered into the software program which performs a multiple linear regression analysis to establish a new pay line. (5)The difference between the current annual minimum salaries and new pay line is determined. (6)The average of the percent difference between the current and new pay lines shows the adjustment needed to the salary schedule to pull up to the market median. Commissioner Birzenieks inquired as to the cities and counties used to compare salary rates? Human Resources Director Mallette responded Asheville, Chapel Hill, Charlotte, Durham, Greensboro, Wilmington, Winston-Salem, Catawba County, Cumberland County, Durham County, Forsyth County, Gaston County, Guilford County, Mecklenburg County, Orange County and Wake County. New Hanover County has to compete with the cities and counties listed when recruiting to fill positions. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BUDGET RETREAT, JANUARY 23 & 24, 1998PAGE 292 Commissioner Birzenieks inquired as to whether the County surveys local companies for salary ranges? Director Mallette responded that only local governments are surveyed. He advised it was difficult to obtain salary information from private companies. Also, the positions in corporations are not similar to local governments. Commissioner Birzenieks emphasized the importance of New Hanover County adopting a pay philosophy program, which is common in large organizations. Human Resources Director Mallette reported after discussing the program with a representative from the Medical Center, it was found the hospital uses 103% of the prevailing pay rates. Vice-Chairman Greer spoke in favor of reviewing job descriptions and compensating according to the job performed; however, to perform a salary survey that will greatly increase the salary ranges can be quite costly to the County. Human Resources Director Mallette advised when the last Pay and Classification Study was performed, the approach used was to upgrade positions from the current salary range to the market rate. When the study was completed, there were a number of employees who did receive large salary increases. Depending upon the point of view, the employee could have agreed that he or she worked for years without receiving the true market rate for the position. The purpose of the market adjustment is to keep the salary schedule at the market so when a Pay and Classification Study is performed, there will be no large gaps in the salary schedule. Discussion followed on the elimination of the cost of living adjustment (COL). County Manager O’Neal reported since the COL was eliminated, the performance of the workforce has been improved. The employees know that in order to receive the market adjustment, they must perform at an expected level. This approach is much better than providing a COL to all employees regardless of their job performance. Commissioner Birzenieks advised that in large organizations, it was imperative to treat employees fairly from the internal and external point of views to create good morale. To have excessive employee turnover is costly because of the expense incurred with recruiting, hiring and training new employees. The primary goal should be to minimize employee turnover and retain good employees. If the salary ranges fall below 100% of the market, the County will be in trouble. Discussion followed on the cost of providing a 5% increase. Budget Director Griffin responded $1.9 million. County Manager O’Neal advised if a philosophy was adopted, he would not recommend a large tax increase. Staff understands the position of the Board and adopting a philosophy of compensation would be beneficial for future use. Recommendation: After discussion, Board agreed to adopt a philosophy of compensation and work toward maintaining 100% of the median within the financial means of the County in order to attract and keep valuable employees. This goal does not have to be reached in one year. Human Resources Director Mallette reported the last Pay and Classification Study was conducted during FY 1990-91 and implemented in April 1991. Staff recommends conducting studies every five years in order to adapt the various alterations of the plan. In order to perform a new Pay and Classification Study, the County would contract with a company to analyze salaries based on the duties and responsibilities of the various positions. These salaries would be compared to salaries paid by local governments or local salaries depending upon the request by the Human Resources Department. The company would prepare a recommendation on whether a position should be assigned a different title, a different starting and end salary range. Staff requested the Board to consider funding a Pay and Classification Study to be conducted NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BUDGET RETREAT, JANUARY 23 & 24, 1998PAGE 293 during FY 1998-99. Once the study is completed, the recommendations of the study would be funded in the 1999-2000 budget. Discussion followed on the cost of the study. Human Resources Director Mallette responded the County paid $77,000 for the last Pay and Classification Study; however, it was found that hiring a qualified firm to perform the study was worth the money. The proposed study will cost between $75,000 to $100,000. A Request for Proposals is prepared and various companies submit proposals. Staff reviews the proposals received and recommends award of the contract, which is approved by the Board of County Commissioners. MEETING RECESSED FOR LUNCH Chairman Caster recessed the meeting for lunch from 12:15 P.M. until 1:30 P.M. FORMAL ADOPTION OF A CAPITAL IMPROVEMENT PROGRAM Budget Director Griffin requested the Board to adopt an ordinance establishing a three-year Capital Improvement Program as part of the FY 1998-99 Budget. The program would improve planning and more adequately meet the capital needs of a growing county. When receiving bond ratings, staff has been informed that it would be beneficial for New Hanover County to have a multi- year planning program in place to assist the bond reviewers with identifying future project operating expenses. The FY 1998-99 Budget would include the first year of funding for the program with future funding appropriated when budgets are adopted. The following capital projects should be incorporated into the 1998-99 Budget: Emergency Management Services Building $750,000 Parks: Ogden Park 550,000 Castle Hayne Park 155,000 Pilots Ridge Park 500,000 Environmental Management: Closure of Cell 3B 500,000 Water and Sewer: Middle Sound Interceptor/Collection System 12,500,000 First Priority Projects 75,000 Total $15,850,000 Financing: General Fund $ 2,455,000 Certificates of Participation12,500,000 W&S Appropriated Fund Balance 895,000 $15,850,000 Total Budget Director Griffin advised the Board may want to add the Technology Center to the list of capital projects. County Manager O’Neal recommended adoption of the Capital Improvement Program to identify projects that need to be addressed. The list can be used for planning purposes and prioritized. After recently going through the bond review process, it is felt that ratings could have been improved if the County had formally adopted a Capital Improvement Program. Vice-Chairman Greer agreed with County Manager O’Neal and stated if a Capital Improvement Program had been in place, more points would have been added to the bond ratings because of the huge debt incurred with the school and Cape Fear Community College bond issues. Finance Director Shell advised the Finance Department continually monitors the debt in comparison to assessed values and total expenditures. However, during the bond ratings, a review was made of the existing debt plus the $163 million bond issue for Cape Fear Community College and New Hanover County Schools. The bond reviewers were concerned about not having a formally adopted plan that reflects all capital projects. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BUDGET RETREAT, JANUARY 23 & 24, 1998PAGE 294 Discussion was held on providing more space for the Emergency Management Department. County Manager O’Neal advised the back portion of the Emergency Medical Services Building was vacant because the Print Shop moved to Division Drive. Since that time, discussion occurred on moving the department in the BellSouth building on Shipyard Boulevard. It now appears, the department will be moved into the building at Second and Grace Streets above the Emergency Medical Services Department. When space needs are discussed later in the meeting, this item will be addressed. Vice-Chairman Greer commented on the space needs and expressed concern for spending $1 million on the old building located at Second and Grace Streets. In his opinion, the County will have to address its space needs instead using a piecemeal system. A lengthy discussion followed on the space needs. Deputy County Manager Atkinson advised the Judicial System has experienced tremendous growth over the last 14 years. The district Attorney has added 16 employees with no increase in space. The Clerk of Courts needs space as a result of the increased workload. The Register of Deeds and Elections offices have outgrown their space. The jail has a capacity of 209 inmates. The average occupancy has been running near 300 inmates. A separate female facility is needed, and the kitchen for the jail facility is also in need of renovation and expansion. The space needs for the judicial and jail systems are needed immediately and should be located in the downtown area, specifically in the Courthouse area. With the purchase of the third floor of the BellSouth building, approximately 14,000 square feet will be available in the Courthouse near the district Attorney’s office. The Sheriff will move the Vice and Narcotics Division to the BellSouth space. Additional space is needed for Engineering, Inspections, Planning and Water and Sewer. All four departments need to remain in the same building. A contract is already in place with BMS Architects, P.C. that has a current balance of $10,000 to $12,000 that was not used for the BellSouth building. The Board may want to consider continuing this contract to perform the space study. Commissioner Howell commented on population projections and asked when the County would have to purchase land to construct a County Complex to deal with space problems. He reminded the Board that land and construction costs would only increase. County Manager O’Neal responded this was why a space study was needed. Vice-Chairman Greer emphasized the importance of performing a space study, but stated the plan is usually placed on a shelf instead of being followed. Recommendation: After discussion, staff was requested to work with BMS Architects, P.C. to continue the contract and develop figures for the cost of a space study. DELIVERY OF SERVICES BY ANIMAL CONTROL Deputy County Manager reported the Animal Control Ad Hoc Committee reviewed ways to improve the operation of the Animal Control Center. The major objectives were to control rabies and streamline the operation of the billing and collections system. The secondary objectives were to better control dangerous dogs, nuisance problems, and the animal population. At the present time, animal control is funded by property taxes and licensing fees. This has created a burdensome billing and collections system. After reviewing the operation of the Animal Control Center, the following options were presented: NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BUDGET RETREAT, JANUARY 23 & 24, 1998PAGE 295 1.Establish a rabies control fee at $9.00 per residential real estate parcel. This option would require enabling legislation from the N. C. General Assembly. 2.Increase the ad valorem tax rate. 3.Add additional employees to maintain the existing system. 4.Require collection of license fee by veterinarians. After studying the four options, the Animal Control Ad Hoc Committee selected Option 1, establishment of a $9.00 Rabies Control Fee. The advantages of this option would be to emphasize rabies control and citizen safety; streamline the Animal Control Ordinance; improve the image of Animal Control; spread the cost of animal control among all County residents; increase the efficiency of operations; and eliminate veterinarians from the “tax collector” role. Vice-Chairman Greer recommended eliminating all fees except for fines charged to residents who violate the ordinance. These fines should be increased to pay most of the operational costs. This type of policy would allow the Animal Control Officers to be in the field responding to calls and enforcing the ordinance. Recommendation: The Board directed staff to check into the fees being charged to see which fees should be kept. OUTSIDE AGENCIES AND DISCUSSION OF HUMAN SERVICES ALLOCATION ADVISORY COMMITTEE Budget Director Griffin presented a list of outside agencies that receive funding from New Hanover County and reported that many of the outside agencies must comply to certain regulations before the funding can be received. The purpose of the Human Services Allocation Advisory Committee is to advise and make funding recommendations to outside agencies based upon the most effective utilization of County funding received for human service needs. The Committee develops funding recommendation for use of $350,000 of general fund dollars and $260,000 of State Community Based Alternatives (CBA) dollars. The CBA funding is available for programs serving court-involved youth, and strict State guidelines must be followed in allocating the funds, such as appointment of a committee to make funding recommendations. The allocation of CBA funds requires a tremendous amount of time by the members of the Committee. In closing, Budget Director Griffin advised the Board has expressed concern about the functions of the Human Services Allocation Advisory Committee, and she requested direction from the Board. County Manager O’Neal commented on the time spent by the Budget Director and Human Services Allocation Advisory Committee and stated the entire CBA funding process was inefficient. He complimented the Budget Director and the Committee for taking time to prepare the funding recommendations. Vice-Chairman Greer commented on County funding remaining the same for outside agencies and he questioned why the funding increased last year? Budget Director Griffin responded the County Commissioners approved additional funding to some outside agencies. County Manager O’Neal advised the Human Services Allocation Advisory Committee begins the budget process with no increase in County funding. Many of the outside agencies request additional funding from one year to the next, and when the recommendations are not approved by the Human Services Allocation Advisory Committee, they become upset with the NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BUDGET RETREAT, JANUARY 23 & 24, 1998PAGE 296 Committee. After a complete review of services rendered by the outside agencies, most of these agencies fill the gap in services that are not rendered by the County. Commissioner Birzenieks stated in many cases, the agencies would not be able to operate if funding was not allocated by the County. However, it would be beneficial for the agencies to develop a system for bulk purchasing and insurance coverages to save money. Recommendation: After further discussion, the Board agreed that the Human Services Allocation Advisory Committee was needed and should continue to prepare funding recommendations for outside agencies. DISCUSSION OF EMERGENCY SERVICES County Manager O’Neal requested the Board to appoint a Task Force to develop a comprehensive, integrated emergency services system for New Hanover County. In order to accomplish this goal the Commissioners need to develop a vision for emergency services in New Hanover County. It is important to acknowledge that resources are available, but are not being fully utilized. While there are some missing components of service, they are minor. A good emergency services system exists in New Hanover County. The logical progression is that coordination and integration of the individual components must be achieved if the maximum benefit of investment in resources is to be realized. The components of an integrated system would be comprised of Emergency Medical Services, the Ogden/New Hanover Rescue Squad, Emergency Management, the New Hanover County Fire Service, Volunteer Fire Departments, City of Wilmington Fire Department, 911, and non-emergency transport. The Task Force would consists of the following agencies: New Hanover County Emergency Medical ServicesDavid Nobles New Hanover County Fire ServicePhil Kouwe New Hanover County Emergency ManagementDan Summers New Hanover County Medical DirectorTed Winnneberger New Hanover Regional Medical CenterDr. Bill Atkinson/designee 911Sheriff McQueen/designee Fire CommissionTo be assigned Cape Fear Community CollegeTo be assigned Columbia Cape Fear Memorial HospitalTo be assigned City Representative (Fire - Police)To be assigned Volunteer RescueTo be assigned County Manager’s Office (Coordinator)Andy Atkinson Commissioner RepresentativeTo be assigned During the study, a recommendation should be made on where the New Hanover County Emergency Medical Services should be housed. The entire process should be reviewed on what is right instead of from a total economic perspective. With the expertise of Dr. Atkinson in the field of emergency services, the hospital will be supportive financially and organizationally of Emergency Medical Services. Vice-Chairman Greer requested an explanation of what staff was trying to do with the proposed recommendation. County Manager O’Neal reported improvements need to be made on first response by New Hanover Emergency Medical Services. If the City and County Fire Services could be used in the first responder system, it would provide a much quicker response because fire departments are located throughout in the entire county. Time is saved when the first responder does not have to come from the downtown location. Most communities have gone into an integrated emergency services system to maximize existing resources. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BUDGET RETREAT, JANUARY 23 & 24, 1998PAGE 297 Chairman Caster recommended involving the beach communities on the Task Force. Commissioner Birzenieks advised the Medical Center agreed last year to provide $2 million to New Hanover County Emergency Medical Services until the County has determined the future of this service. Since the fiscal year for the County begins July 1 and the fiscal year for the hospital begins October 1, there is some urgency in addressing the financial and control issues involved with Emergency Medical Services. Deputy County Manager advised the Task Force should have a recommendation before the end of the fiscal year. Vice-Chairman Greer commented on the expansion of the service and stated there will be tremendous costs involved with developing this type of committee. Recommendation: After discussion, the Board requested staff to be sure the cost is thoroughly reviewed when the Task Force is preparing the recommendation. DISCUSSION OF FIRE SERVICE Assistant County Manager, Dave Weaver, reported during the past two years, the Fire Service has made a transition from rural to urban fire protection. The addition of career firefighters throughout the County will significantly improve the fire protection service. As the County moves toward adding more career firefighters, along with other improvements, there will be a significant reduction in fire insurance premiums for homeowners with the ISO rating dropping from 9 to 7. It is estimated that a rating of 7 will save residents $7,200,000 in fire insurance premiums annually, which equals approximately $120 to $150 per household. Increasing the Fire Service District tax rate will allow the District to hire 21 additional full- time firefighting personnel, along with additional part-time personnel, in the next budget year at an approximate cost of $760,000. This could provide staffing of 7 individuals 24 hours per day with an additional 5 personnel during weekdays, distributed strategically throughout the Fire District. Also, increased revenue would allow for placing an additional fire station facility in the Murrayville or NorthChase area at an initial cost of $1,000,000 at an annual operating cost of $350,000. Chairman Caster requested staff to provide a statement showing the debt service for current and future bond issues. He stated a penny here and a penny there will amount to a much higher tax rate in the future. Assistant County Manager Weaver emphasized the importance of everyone understanding that if the fire service is improved and the ISO rating is reduced, the increase in the tax rate should be offset with the reduction received in the annual insurance premium paid by the homeowner. Chairman Caster advised if the Fire Service tax rate is increased, figures should be secured from the insurance companies showing the amount saved in the annual insurance premium on a $100,000 home so homeowners will be able to relate to the savings. MEETING RECESSED UNTIL MARCH 24, 1998 Chairman Caster recessed the meeting at 5:45 P.M. He requested everyone to be present at 8:30 A.M. Saturday, March 24, 1998, to complete the agenda for the retreat. MEETING RECONVENED Chairman Caster reconvened the meeting at 8:30 A.M. on March 24, 1998. Members present were: Commissioners Buzz Birzenieks; Ted Davis, Jr.; 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. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BUDGET RETREAT, JANUARY 23 & 24, 1998PAGE 298 DEVELOPMENT, DESIGN AND FUTURE PLANS FOR THE PILOTS RIDGE SCHOOL PROJECT Chairman Caster reported that County Manager O’Neal and he had discussed the Pilot Ridge project with Mr. Duke Lineberry, Chairman of the Board of Education, and Dr. Dale Martin, Superintendent of Schools. He advised there was disagreement on some items but all persons agreed to move forward with the program. County Manager O’Neal advised that staff was in the process of developing an interlocal agreement with joint and equal representation between the School System and County on the Pilots Ridge project. Vice-Chairman Greer, Commissioner Howell, Parks Director Lewis, and Assistant County Manager Weaver will serve on the Project Committee. Mr. Duke Lineberry, Ms. Janice Cavenaugh, Mr. Bill Hance, and Mr. Joe Miller will represent the School System on the Project Committee. The Board of Education has requested a deed of trust to the property or a deed substitute for ownership of the property. Also, the Board of Education would like to establish a perpetual agreement for the use, maintenance and operation of the Pilots Ridge project. County Attorney Copley advised that a deed of trust cannot be given to the School System because the land is mortgaged. A user or lease agreement can be developed between the two parties. Commissioner Birzenieks inquired as to why the deed was an issue? Assistant County Manager Weaver replied that in order for the Board of Education to meet curricula requirements for the State, the School System would need ownership of the land. Chairman Caster stated after meeting with Duke Lineberry and Janice Cavenaugh, he felt there should be no problem with the Pilots Ridge project. County Manager O’Neal advised that even though the interlocal agreement was not in place, the School System was selecting an architect for the school building and its amenities, and the County was in the process of selecting a master planner. In order to fulfill the County’s financial obligation, $500,000 should be placed in the FY 1998-99 Budget toward development of Pilots Ridge project. In closing, County Manager O’Neal reported that staff would continue to work on the interlocal agreement and advised this item should be discussed when a joint meeting is scheduled with the Board of Education. TRANSFER OF SCHOOL ATHLETIC FACILITY MAINTENANCE TO PARKS DEPARTMENT County Manager O’Neal reported that discussion has been held on developing better coordination and communication between the Board of Education and County regarding maintenance and operation of school athletic facilities. Under the present system, the New Hanover County Parks Department, the School Maintenance Section, and other public groups, such as Cape Fear Soccer, all contribute to the development and maintenance of these facilities. The present system lacks coordination and effective decision-making because every situation is different. It is not clear who is in charge; consequently, scheduling the use of the facilities has encountered problems. County and School staff have been drafting an interlocal agreement that creates a joint process for site selection, development design, construction, maintenance, and scheduling for existing and future facilities. This would be a master agreement that would eliminate many of the present conflicts, but improve maintenance by centralizing the process under the County Parks Department. In closing, County Manager O’Neal stated that staff was ready to move forward in development of the proposed interlocal agreement; however, after meeting with Chairman NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BUDGET RETREAT, JANUARY 23 & 24, 1998PAGE 299 Lineberry and Dr. Martin, it was felt this agreement should not be addressed until the Pilots Ridge project has been completed. The current agreements will remain in place and the schools will make a concentrated effort to cooperate more with scheduling. Discussion was held on expanding the Parks & Recreation Advisory Board to include a member of the Board of Education and a member of the Administrative Staff, specifically, Diane Avery. County Manager O’Neal recommended expansion of the Parks & Recreation Advisory Board to develop better communications between the two bodies. Further discussion followed on small conflicts that develop into problems when working with the Board of Education and School System. Vice-Chairman Greer expressed concern for the School System deciding to install tennis courts and other athletic fields as part of its plan for the school building because the purpose of the school/recreational park complex was to combine efforts and provide the necessary number of tennis courts, ballfields, etc. to meet the needs of the schools and community. County Manager O’Neal advised in the numerous meetings, many items had been hashed out to determine the differences and concerns by the County and School System. Unfortunately, each party does not want to see the other side of the issue; however, once the project begins, each party will realize the benefits to be gained from a cooperative effort. The Board of Education and School System do have educational requirements that involve athletic operations as part of the curriculum, which should be protected by the schools. Commissioner Howell reported on the number of complaints received from citizens regarding poor school ground maintenance. He suggested allowing the County to maintain the school grounds so that all schools can have well-maintained grounds throughout the system. Recommendation: After further discussion, it was agreed to schedule a joint meeting with the Board of Education as soon as possible to discuss issues of concern. Staff was requested to provide facts and figures on project costs and prepare an agenda for the joint meeting. BROADCASTING OF MEETING AND DISTANCE LEARNING FACILITY Public Information Officer (PIO), Mark Boyer, reported a year ago the Council of Neighborhoods Association requested the Board to broadcast meetings to provide the citizens with a better understanding of County Government. The Federal Telecommunications Act mandates cable operators to provide the necessary equipment to allow for cable-casting of programming produced by local government. As part of its franchise, the City of Wilmington mandated Time Warner to provide without charge one channel for government access with that channel being used in conjunction with New Hanover County and the Town of Wrightsville Beach. The franchise requires Time Warner to provide and maintain the technical plant to allow broadcasting from the City Council Chambers and the Assembly Room for the Board of County Commissioners. UNCW-TV was requested to develop a list of equipment needed for the County to begin its own Government Access programming. A component was added that would allow for the development of a Distance Learning Facility in the Assembly Room of the New Hanover County Courthouse. The facility could be designed to stand alone, or be fully integrated into the cable broadcasting option. Public Information Officer Boyer noted that all options were expensive. It will cost over $100,000 to use cable broadcasting not including the operation costs. To develop a combination broadcasting/Distance Learning Center will be more costly; however, the Distance Learning Center would provide many benefits such as in-service training for employees, or communicating with other Boards of County Commissioners or persons in any locations. The Center can be rented to other organizations. UNCW rents its Distance Learning Center for as much as $250 per hour. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BUDGET RETREAT, JANUARY 23 & 24, 1998PAGE 300 After checking with other counties and residents of the City, the public is pleased with the service. The City Council is pleased with the Government Access Channel and uses it to provide public information to the community about services. The City has requested a company from Raleigh to check out the Council Chambers and upstairs control room to be sure the broadcasting system is in proper order. The County may want to work with this company to check the Assembly Room to determine the cost for equipping the room to broadcast meetings. In closing, Public Information Officer Boyer stated the County will have to determine if it should pursue use of the Governmental Access Channel in conjunction with the City of Wilmington or develop its own Governmental Access Channel facilities. Also, the County must determine the feasibility of developing a combination broadcasting/Distance Learning Center in the Assembly of the Courthouse, which will be more expensive. It would be beneficial to hire a consultant to review the options and prepare a recommendation. County Manager O’Neal reported on the agenda for February 2, 1998, the Board will be requested to upfit and repaint the Courthouse. This would be an ideal time to involve the consultant being used by the City to check the Assembly Room to see what wiring and equipment would be needed to broadcast the meetings. Discussion followed on the number of persons who watch the City Council meetings. County Manager O’Neal responded that many people do watch the meetings and like the service. The City Manager reports the response from the public has been positive. Also, placing information on the access channel would be beneficial in providing factual information to the public. For example, if the County should decide to implement a Rabies Control Fee, the pertinent information for the decision made by the Board could be placed on the access channel. Commissioner Birzenieks stated if the County decides to use the Governmental Access Channel or develop its own system, standards must be implemented to provide a quality broadcasting program, which will cost money. Discussion occurred on the informational portion of the access channel. Clerk to the Board, Lucie F. Harrell advised that placing committee vacancies, public notices, and changes in ordinance would be an excellent way to better inform the public. County Attorney Copley advised the informational portion of the access channel could be used by the County without broadcasting meetings. She noted the Board may want to consider this option. Recommendation: After discussion of whether the Assembly Room will accommodate the broadcasting of meetings, staff was requested to check into capital and operating costs of using the access channel or developing its own system with a report being forwarded to the Board. MAINTENANCE PROGRAM FOR COUNTY FACILITIES Property Management does a good job with maintaining county facilities; however, the department does not have the staff or resources to perform in-depth maintenance tasks. The number of County facilities has increased as well as the service that the Department has been called upon to complete. The renovation or construction of many County facilities has been completed by the Property Management Department. The Director of Property Management feels that three additional maintenance mechanic positions for light construction and painting are needed as well as one housekeeper position for the BellSouth space to be occupied by the Sheriff’s Department. Also, approximately $50,000 to $100,000 is needed for carpet, wallpaper replacement, and windows. In closing, Budget Director Griffin recommended addressing these needs so maintenance does not fall behind. She advised the total cost of the additional positions and expenses of the expanded maintenance program will be $200,000. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BUDGET RETREAT, JANUARY 23 & 24, 1998PAGE 301 Commissioner Birzenieks commented on the decentralization of county facilities and stated if this trend continues operating and maintenance costs will continually increase. He stated a county complex would be the way to gain efficiency in operation and maintenance of county facilities. County Manager O’Neal advised the housekeeping division was stretched to the limit, and he recommended adding the additional position. Commissioner Birzenieks stressed the importance of keeping maintenance and operation costs in mind when developing the master space plan. BREAK Chairman Caster called a break from 9:55 A.M. until 10:10 A.M. COUNTY DRAINAGE SYSTEM Assistant County Manager Weaver advised the County was moving closer toward entering the drainage business in the past year with the study of the Pages Creek area and the snag and drag drainage projects as a result of Hurricane Bertha and Hurricane Fran. The County has also strengthened its drainage regulations on new development. As the County develops a drainage service, the costs for engineering, planning, and implementation will cost millions of dollars. The Pages Creek study, for example, indicated a need for several million dollars of drainage improvements just in that area with millions more needed for water quality control. After a review of financing for drainage improvements, an alternative would be to establish separate drainage districts for different drainage basins. The funding could be supported by a combination of the following measures: (1) property assessments and impact fees to be used for initial capital improvements; and (2) utility billing for maintenance and debt service. This funding method would not increase the tax rate. There is concern about possible impact of the federal NPDES requirements of Stormwater Phase II regulations. At the federal level, these regulations would not impact New Hanover County as long as the County does not own or operate drainage facilities. The State, however, may bring the County under the regulations because New Hanover County is a coastal community. If the County has to comply to federal and state regulations, the County should be able to qualify for a general permit. This permit would involve mapping, education, and regulation of land development uses but should not include drainage system improvements. Assistant County Manager Weaver advised the Board should consider developing a County drainage system that would be self-supporting and independent of property tax revenues. Discussion followed on the potential costs of the Phase II regulations. Assistant County Manager Weaver advised the County should not be involved with burdensome costs; however, the level of regulations to be placed on developers could cost the public additional money. In closing, Assistant County Manager Weaver reported the next step will be analyzing the results of the Pages Creek watershed basin performed by Dan Dawson Engineering. Once the report has been reviewed, a decision will have to be made whether to use the study as a model to establish a drainage district for the Pages Creek area. The report will also contain recommended changes in the County’s interim drainage regulations. DISCUSSION OF COUNTY WATER SYSTEM Assistant County Manager Weaver reported the District water system has grown and currently serves approximately 4,000 customers with 25 wells, 40 miles of water mains, and several elevated water tanks. The water system will dramatically expand if the District acquires Cape Fear Utilities. The number of requests by developers and individuals to connect to a water system continues to increase. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BUDGET RETREAT, JANUARY 23 & 24, 1998PAGE 302 A matter of concern is the lack of a plan for development of the water system. Water and sewer systems ideally should be developed in coordination with each other to fully serve urbanized growth and achieve cost efficiencies, such as basing the billing on water meters and capturing the revenue stream available from water systems. A planned water system is critical to ensure adequate water for fire protection and for new development. The sewer plan for the District has served the County and growth interests well in providing a dependable guideline for growth, including a funding scheme. The District needs a similar planning effort for water. One important step has been taken with the recent completion of the groundwater study by Andrew and Associates through the Groundwater Task Force. In closing, Assistant County Manager Weaver advised the Board should consider allocating approximately $100,000 to perform a drinking water plan for New Hanover County in the FY 1998- 99 Water and Sewer District Budget. Vice-Chairman Greer suggested waiting until a decision is rendered by the City and County on unification of water and sewer services. DISCUSSION OF OTHER ISSUES IMPACTING THE FY 1998-99 BUDGET Welfare Reform Deputy County Manager Atkinson advised that Welfare Reform would have an impact on the FY 1998-99 Budget. He advised there would be an increase of $1,151,292 if the Work First Family Assistance Welfare Plan for New Hanover County is implemented. A majority of the increase is related to new child day care costs in the amount of $1,129,000. In closing, Deputy County Manager Atkinson, informed the Board that since this was a new plan, it would be difficult to project figures for day care because the numbers are not known at this time. Once a day care center establishes a 2nd and 3rd shift, the start-up cost is estimated at $48,000. It appears that four day care centers will be needed to provide 2nd and 3rd shifts, which will require budgeting $192,000 to pay for the initial start-up cost. The next meeting of the Welfare Reform Ad Hoc Committee is on January 26, 1998, and the Board will be requested to formally adopt the plan. Budget Director Griffin advised that since the State Work First Program was enacted by the General Assembly, more children have become eligible to receive Medicaid. The Board will have to decide if these children should be processed through the Health Department or the Department of Social Services. Under the new legislation, there are approximately 16,000 children that are now eligible to receive Medicaid. At first, it was understood there would be no local cost, but it now appears there could be a local match. Also, the electronic benefit transfer for food stamp clients will be implemented, and the Department of Social Services will be responsible to train clients to use the system. This will require additional staff. Vice-Chairman Greer strongly objected to the County hiring additional staff for this purpose. He stated with the number of employees at the Department of Social Services, he felt that under the new welfare reform plan prepared by the County, there should be adequate employees available to train the clients to use the electronic benefit transfer for the food stamp program. Deputy County Manager Atkinson commented on the amount of fraud involved with the current food stamp program and stated in other states, the electronic benefit transfer system has greatly reduced fraud. Discussion of Community Transportation Plan Update Assistant to the County Manager, Pat Melvin, reported it was time to perform the Community Transportation Plan Update to cover a four-year period and completed during FY 1998-99. The cost of the plan will be shared by four counties in the region to hire a planning consultant to review the programs and establish the plan. The consultant will be hired by the NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BUDGET RETREAT, JANUARY 23 & 24, 1998PAGE 303 N. C. Department of Transportation and New Hanover County will be required to pay a local match of $3,000. The Department of Transportation is focusing on community transportation, which involves a system where the private operator is a one-stop shop. All agencies will call the private operator to pick up clients. If a client cannot be picked up with a van, the private operator will be responsible for paying the taxi company to pick up the client. The Department of Transportation is also focusing on expanded community involvement which will require more public forums locally and increasing the board membership to include a greater variety of people from the community. Another objective of the Department of Transportation is a review of regional local transportation services. The New Hanover County Human Services Transportation System will need to provide transportation to clients under the Work First Program that will be working 2nd and 3rd shifts. There are social and recreational transportation needs for disabled persons, and many elderly persons have unmet transportation needs because of a lack of funding. In terms of resolving these needs, a review is being made of increased funding for Transit 2001 Program which was adopted by the N. C. General Assembly during the last session. Hopefully, there will be increased funding in this program. Routes need to be expanded, particularly to the Carolina Beach area. The Wilmington Transit Authority (WTA) is reviewing services to Carolina Beach, but until contact has been made by the local government, the WTA will not plan to provide the service. Many calls are received from elderly persons in Carolina Beach who need to be transported for medical appointments or desire to come to the Senior Center. In closing, Ms. Melvin requested direction from the Board as to how the consultant should review the New Hanover County transportation plan for the next four years. Does the Board want the consultant to review a combined city and county transportation system? Chairman Caster advised that a combined transportation system was needed; however, he questioned why the County is responsible for providing transportation. The cost of transportation is quite expensive. Ms. Melvin advised the mandate requires the transportation system to coordinate services for human service agencies throughout the area instead of having 14 agencies with their own vans picking up clients and carrying them to medical appointments. It was felt that a coordinated system would be more efficient. New Hanover County is providing this service. County Manager O’Neal reported by Executive Order from the Governor, counties were requested to provide a coordinated transportation system to provide transportation to human service agencies. Most counties are providing some type of system based upon the size and resources of the county. Commissioner Birzenieks spoke in favor of developing a consolidated city and county transportation system. Discussion followed on the possibility of establishing a consolidated system. Ms. Melvin advised the Director of the Wilmington Transit Authority was interested in working toward a consolidated city and county transportation system. Since a consultant is being hired to perform the update, it would be an ideal time for a complete review and research of the issues involved with a consolidated system. Commissioner Davis inquired as to whether the City of Wilmington was interested in a consolidated system? Ms. Melvin responded the Director of the WTA has shown an interest in a combined system. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BUDGET RETREAT, JANUARY 23 & 24, 1998PAGE 304 Chairman Caster commented on the many unmet needs of the County and advised he receives numerous calls from persons who cannot understand why the sewer has not been provided to all areas of the county. He cautioned spending a large amount of money for welfare reform and transportation services when a married couple, both working and paying for day care with an annual income of $38,000 does not receive any of these services and has not been provided sewer. He stated the provision of day care and transportation services for welfare clients must be a short-term initial cost to help clients obtain a job and become self-sufficient. Many middle to upper lower income persons are beginning to resent not receiving services for their taxes. Vice-Chairman Greer commented on the administrative cost of operating the Department of Social Services and stated if a system could be devised to save the 60% administrative cost of the $10 million spent, the system could provide services to many more clients. County Manager O’Neal advised the State has approached the Work First Program as welfare reform, which is not true because Work First is only a small portion of the entire welfare program. If the State had truly reformed welfare, the entire system would be disregarded and based on another approach. Currently, the system is based on the perception that every client is a liar, and documentation of every small detail must be checked and reviewed to determine that no fraud is involved, which has greatly increased the number of employees to operate the program. He complimented the Board of County Commissioners and County Staff for working on a Work First Program for New Hanover County. Unfortunately, the Alexander vs Hill case created an unrealistic amount of documents for welfare clients. Vice-Chairman Greer reported on the letter received from the Civil Liberties Union regarding mandatory drug testing being unconstitutional and stated any welfare reform plan submitted with this requirement will be challenged by the Civil Liberties Union. Recommendation: The Board agreed to request the consultant to study the steps that would be necessary to establish a consolidated city and county transportation system. BREAK Chairman Caster called a break for lunch from 12:15 p.m. until 1:30 p.m. Discussion of County Contributions to New Hanover County Schools Budget Director Griffin advised that portions of the two half-cent sales taxes (Article 40 and 42) are required to fund school capital outlay expenditures and the remaining funding comes from the general fund. A 15 percent increase over the FY 1997-98 budgeted amount is anticipated in the general fund contribution to New Hanover County Schools. Additional debt service of $1,976,711 is included in the 15 percent. A chart was presented showing contributions from General Fund transfers and payments and the sales tax (½ cent taxes) transfer for FY 1990-91 until FY 1997-98. The General Fund transfers and payments in FY 1990-91 were $15,161,016 compared to $34,207,428 in FY 1997-98. The Sales Tax transfer in FY 1990-91 was $2,955,750 compared to $4,611,270. A lengthy discussion followed on the increase in County funding to the schools from FY 1990-91 to FY 1997-98. Vice-Chairman Greer commented on the County’s contribution increasing 50% over the past seven years, and stated that student enrollment had not doubled. Budget Director Griffin informed the Board that State regulations governing the number of students in classrooms had increased the need for space, which requires construction of costly new schools. Discussion of Vocational Education County Manager O’Neal advised he would be contacting Dr. Dale Martin and Dr. Eric McKeithan about making a presentation to the Board on the vocational education program. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BUDGET RETREAT, JANUARY 23 & 24, 1998PAGE 305 Discussion of the County 800 MHz System Deputy County Manager Atkinson reported in 1995, the Board of County Commissioners appointed a Radio Task Force to study the long-range communications needs of the county. The Task Force completed its work and submitted a report to the Board on April 3, 1995. After review, the Board adopted a resolution to appoint an 800MHZ System Management Team to develop the Motorola Trunking System. On April 7, 1997, the bid was awarded to Motorola, the only responsive bidder, for the purchase of 800 MHZ radio equipment and related options and/or accessories. The bid allows the county to purchase any needed equipment from Motorola until March 1, 1999. The Board needs to determine if the County should continue the project by equipping other potential users of the system. If funds are budgeted now, the County can take advantage of the existing contract. The Sheriff is interested in upfitting the department with the new equipment at a cost of $878,042. The Emergency Medical Services Department has requested the new equipment at a cost of $144,704. The City of Wilmington is planning to equip its fire and police departments with new equipment under the provisions of the existing contract with Motorola. The following departments are users of the 800MHZ System: County Fire Service$ 457,530 *Portable Users 179,844 Tower 300,000 Electronics 100,000 Total Expenditures$1,037,374 *Portable Users: Engineering Department, Environmental Health Division, Animal Control, Commissioners/Reserve Environmental Management In closing, Deputy County Manager Atkinson commented on the existing bid being open until March 1, 1999 and requested direction from the Board on expanding the service to the Sheriff’s Department and Emergency Medical Services as well as the City of Wilmington. Money will be saved without having to go through the bidding process. Discussion followed on the advantages of the system to the Sheriff’s Department. Deputy County Manager Atkinson advised the 800MHZ was a superior communications system in place for fire, police, and EMS to operate without having to constantly switch channels. During hurricanes or other emergency events, a system of this quality is needed. Vice-Chairman Greer recommended providing 800MHZ service to the Sheriff’s Department when the City of Wilmington Police Department becomes a user. It appears the City will request the 800MHZ service for the Wilmington Fire Department during FY 1998-99 and the Wilmington Police Department during FY 1999-2000. Deputy County Manager Atkinson reported the City should have this item on an agenda in the near future. Once the time frame is determined, the Board will be notified. Discussion of Adopting a Fund Balance Resolution Budget Director Griffin advised the bond reviewers have requested adoption of a resolution to ensure the County will maintain an available fund balance in the General Fund of no less than 8 percent at the end of each fiscal year. Adoption of this resolution will be a positive point for the county when going through a bond review. Finance Director Shell spoke in favor of adopting the resolution to ensure that a strong fund balance is maintained during a period of strong growth and increased budgets for New Hanover County. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BUDGET RETREAT, JANUARY 23 & 24, 1998PAGE 306 Vice-Chairman Greer reported the resolution was mentioned at the bond rating review, and staff feels that adoption of the fund balance resolution will be beneficial. County Manager O’Neal recommended adoption of the resolution when the Budget Ordinance is adopted. Operational Cost of Northeast Branch Library Budget Director Griffin reported the Library Director has estimated a cost of $250,000 annually to operate the Northeast Branch Library. The maximum impact on the FY 1998-99 Budget will be $125,000. Funding will need to be included in the budget. Discussion of Debt Service for New Hanover County over the Next Five Years County Manager O’Neal presented a sheet reflecting the debt service for New Hanover County for the next five years, and the Commissioners were requested to review the information at a later date. County Manager O’Neal advised that departments were in the process of submitting budget requests, and stated as the process unfolds, the Commissioners will be kept informed. He stated the Board would probably need to schedule one or two budget work sessions. Presentation of Information Presented to the Bond Rating Companies Finance Director Shell passed out a copy of the booklet that was presented to the bond rating companies. The information contained the structure of New Hanover County government with 1,240 full-time employees and 120 part-time employees. An economic and demographic profile was presented reflecting retail sales of approximately $2.7 billion for fiscal year 1997, completion of the $250 million expansion of Corning and completion of the $8 million expansion by Pharmaceutical Product Development. New Hanover Regional Medical Center is an outstanding medical facility and one of nine hospitals in North Carolina operating a Level III neonatal intensive care unit and state- designated regional trauma center providing Level II trauma services for southeastern North Carolina. The University of North Carolina at Wilmington is currently the seventh largest and one of the fastest growing in the 16-campus University of North Carolina System and is listed among the top 20 regional universities in the south according to U. S. News & World Report’s 1995 ranking. Approximately 4,000 students attend Cape Fear Community College, which is the tenth largest community college out of 58 located in North Carolina. Cape Fear Community College concentrates on customized training programs for skilled and semi-skilled workers to support the County’s growing economic base. Over the past ten years, room occupancy tax collections for the off-season have grown at an annual compound growth rate of 10.4% versus 8.6% for in-season collections. This growth is expected to continue to increase. The economy was able to withstand two hurricanes and continue to grow. New Hanover County has a strong and stable tax base with New Hanover County government maintaining a healthy fund balance. Chairman Caster, on behalf of the Board, expressed appreciation to the County staff for making an outstanding presentation to the bond reviewers. ADJOURNMENT Chairman Caster adjourned the retreat at 3:00 P.M. Respectfully submitted, Lucie F. Harrell Clerk to the Board