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1998-05-06 Budget Work Session NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BUDGET WORK SESSION, MAY 6, 1998PAGE 457 ASSEMBLY The New Hanover County Board of Commissioners held a Budget Work Session on Wednesday, May 6, 1998, at 6:00 P.M. in Room 501 of the County Administration Building, 320 Chestnut Street, 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; Budget Director, Cam Griffin; and Clerk to the Board, Lucie F. Harrell. Chairman Caster called the meeting to order. County Manager O’Neal advised that departmental budget requests had been reviewed by the Budget Department and County Manager. Tough decisions related to these requests had to be made while continuing to face the challenge of providing quality services with a reasonable tax rate. As the community continues to grow, the public expectations increase with regard to the quality of services provided. The tax base is growing, but the revenue generated does not pay for the services rendered without a minor tax increase. In the proposed budget, there is a proposed gap of 4 cents on the tax rate; however, this figure can be reduced to 1 cent. The major reason for the tax increase is due to debt service incurred with passage of recent bond issues. Vice-Chairman Greer advised the recommended budget actually has a gap of about 6.3 cents because $2,000,000 of fund balance will be used to reduce the shortfall. DISCUSSION AND PRESENTATION OF PROPOSED FY 1998-99 BUDGET County Manager O’Neal reported that one penny is worth $1,033,900 compared to last year at $987,000. The sales tax revenue has increased by 16% with $2,300,000 to balance the budget. Funds from the 911 Surcharge are budgeted at $400,000 with no proposed increase in the surcharge. The portion of the one-half cent sales tax revenue that is not restricted to schools is budgeted as a $2,000,000 transfer to the Environmental Management Fund and $4,000,000 transfer to the Water and Sewer District. This figure includes a tip fee of $28 per ton. Discussion is being held with private haulers about opportunities to carry trash out of the county. Vice-Chairman Greer advised that discussion was being held with private haulers and there could be a possibility of not having to transfer the $2,000,000 to the Environmental Management Fund. He, also, commented on the $4,000,000 portion of the half-cent sales tax that is being transferred to the Water and Sewer District and stated this was a major concern of the City. Under this procedure, the City residents are paying twice because the sales tax funds are used only by persons living outside the City Limits. Commissioner Howell asked if this concern was a fair argument? County Manager O’Neal responded there is a basis for this argument; however, the sales tax can legally be used in a specified district. He stated issues and conflicts of this type confirm the need for consolidation. Assistant County Manager, Dave Weaver, reported when the Water and Sewer District was established, an estimate was made of the value of the sewer system in the annexed areas, which approximates to the amount of sales tax revenue that has been transferred to the District. Construction of sewer lines in areas that have been annexed has greatly benefitted the City. Chairman Caster asked what sewer fee would have to be charged in order to eliminate the $4,000,000 sales tax transfer to the Water and Sewer District? Budget Director Griffin responded the current sewer fee would have to be increased by 33% to eliminate the $4,000,000 sales tax contribution to the Water and Sewer District. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BUDGET WORK SESSION, MAY 6, 1998PAGE 458 County Manager O’Neal advised that during the budget process, 62 new positions were requested with only 42 positions recommended. Seven of these are completely funded by revenue generated from the positions or grant sources. The positions recommended are as follows: Department of Aging - (2) New Positions: Two grant-funded positions to assist with the Home- Delivered Meals and the Foster Grandparent programs. These positions are 100% funded by grants. Vice-Chairman Greer expressed concern for the number of positions that are funded by grants and asked if any of these positions are terminated when funding is eliminated? County Manager O’Neal stated that grant funds have not been eliminated for any of the positions approved up to this date. He advised when employees are hired into these positions, they are told that if grant funding stops, the positions will be eliminated. Health Department - (4) New Positions: A Business Officer is needed for financial operations and automation efforts. A half-time Jail Health Nurse is needed to assist in the jail. An Animal Control Services Officer and Clerical Specialist will provide improved animal control coverage and assist with the collection of animal control fees. Both positions will be funded by animal control fees. It should be noted that if the EMS operation is transferred to the Medical Center, two positions in the Finance Department will assist with Animal Control billing. Vice-Chairman Greer strongly objected to increasing animal control fees to cover expenses and then requesting more positions. He recommended not approving these positions because of the new computer system which should resolve the problem. Information Technology - (1) New Position: A Network Engineer is needed to assist with the increasing complexity of networking the County’s computer equipment, e-mail, and Internet service. Also, a position currently budgeted in the County Manager’s Office will be transferred to serve as Assistant Director of the MIS Department. Inspections - (2) New Positions: A Clerical Specialist I and Code Enforcement Officer III are recommended. These positions will be funded by inspection fees and will assist with the efficient operation of the department. Library - (3) New Positions: Although five additional positions were requested for the new Northeast Branch Library, three are recommended and funded for one month. These positions will supplement the four Plaza East staff members once the new branch is opened on July 1, 1999. Museum - (1) New Position: An Administrative Secretary is needed to assist the Museum Director. Parks - (6) New Positions: Four Lead Groundskeepers and two Groundskeepers are recommended for maintenance of parks. Property Management - (4) New Positions: Three Maintenance Mechanics for light construction and painting are needed to ensure continued maintenance of County buildings. An additional Housekeeper is needed to maintain the BellSouth space to be occupied by the Sheriff’s Department. Sheriff`s Department- (11) New Positions: Eight telecommunicators are needed to better staff the 911 Center. An additional Cook is recommended for the Jail to lower the amount of temporary salaries needed. Two Detectives are recommended to assist the School Resource Officers with investigations. In addition to these positions, funding in the amount of $316,000 is recommended to upgrade salaries to aid in recruitment and retention of qualified personnel. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BUDGET WORK SESSION, MAY 6, 1998PAGE 459 Vice-Chairman Greer expressed concern for hiring eight telecommunicators at one time and he requested an explanation. He also requested the amount of money needed to fund the positions. Budget Director Griffin responded that eight positions were needed to provide two employees per shift. Currently, there are four shifts in the 911 Center. Funding in the amount of $250,000 will be needed to pay for the positions. Discussion followed on the base salary for deputies. Commissioner Birzenieks expressed concern for hearing on the radio that the Sheriff was losing well-trained deputies to other municipalities because the pay was better. He asked what was the starting salary for a deputy? Budget Director Griffin responded currently the base pay is $21,500 plus 33% in benefits. Director of Human Resources, Andre` Mallette reported the $316,000 recommended would raise the beginning salary for deputies to $24,453. The percentage of benefits received by law enforcement officers is higher because of the additional 5% contributed to the retirement fund pursuant to State Law. Social Services - (11) New Positions: An Attorney and Clerical Specialist are needed for Child Protective Services. Over the last ten years, there has been a 100 percent increase in the monthly average of child protective reports and a threefold increase in the number of children in custody. An Adult Home Case Manager is recommended to provide case management for residents of adult care homes. The Ombudsman position that is currently vacant in the Health Department was to perform some of the same functions. One option is to eliminate the Ombudsman position. An Automation Specialist will assist with the department’s automation efforts. Three positions (two Social Workers and an Accounting Technical II) are recommended to assist the County with being an electing county. The seven positions will be partially funded by state and federal funds. Twenty-three positions have been eliminated due to the decision to contract with a private provider for support enforcement services. Discussion followed on hiring another attorney. Commissioner Davis inquired as to how court time would be scheduled for another attorney. He advised that an additional judge would be needed to hear the cases, and he requested staff to discuss this matter with the District Attorney before filling the position. County Manager O’Neal responded that he would be glad to check with the District Attorney about this matter. Commissioner Davis asked if the budget for the Department of Social Services has been reduced by $500,000 as a result of the new positions that were approved a few months ago? County Manager O’Neal responded the positions have not been filled at this time. Commissioner Davis recommended monitoring the length of time children are placed in foster care and the number of placements per child so figures can be compared to see if the new positions have reduced the cost to New Hanover County. Transportation - (1) New Position: An Administrative Assistant I is recommended from temporary to regular status. The position will be 100 percent grant funded. Emergency Medical Services (EMS): Funding is not included in the recommended budget for Emergency Medical Services. There will be a one-time payment of approximately $500,000 for the payout of unused leave to EMS employees. A budget amendment will be required this fiscal year; therefore, funding for the unused leave is not included in the FY 1998-99 budget. There will still be EMS related expenses that the County will need to fund. The related expenses include: (1) medical examiner fees of $30,000; (2) rescue service charges of $30,000; NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BUDGET WORK SESSION, MAY 6, 1998PAGE 460 and (3) an annual contribution of $109,998 to New Hanover Regional Medical Center for rescue services. The two positions in the Finance Department that currently handle EMS billing can assist with collections in other areas. A position in the Legal Department that assists with delinquent EMS bills will be transferred to the Medical Center. The Vehicle Management employees who currently maintain the ambulances will have additional time to work on the County fleet. Commissioner Birzenieks recommended transferring the unused leave for these employees to the Medical Center. This procedure will provide some accrued vacation leave for these employees when being placed on the hospital payroll. He asked if staff had discussed the possibility of transferring unused leave? County Manager O’Neal advised that he would be glad to discuss this matter with the hospital administrative staff. Vice-Chairman Greer commented on the $30,000 appropriated for the medical examiner and requested an explanation of how doctors are selected to perform this service? Deputy County Manager Atkinson explained that four or five doctors are qualified by the State as medical examiners and respond to calls. The doctors are paid on a per call basis. County Manager O’Neal commented on the fact that most counties abandoned the Coroner position several years ago and went to the State for certification of medical examiners which has proven to be less costly to counties. After further discussion, the County Manager was requested to provide a list of certified medical examiners and the cost of services rendered. Vice-Chairman Greer requested an explanation of the $30,000 appropriation for rescue services. Budget Director Griffin explained this was a contractual arrangement with the City of Wilmington to provide rescue services. The New Hanover County Fire Service is in the process of training personnel to take over this service next year. Vice-Chairman Greer requested an explanation of the $109,998 appropriation to the Medical Center for rescue services. County Manager O’Neal explained the Medical Center does not feel that highly trained paramedics should be attending football games and other community events that are not true emergencies; however, these services are needed and funding should be provided. New Hanover County Schools: The current operating request by the School System far exceeds the available funding. The preliminary request is for an additional $16,414,047 over the current budgeted amount. This is an increase of $9,554,444, or 30.5 percent in the current operation, and $6,859,603, or 256 percent, in the current expense capital outlay. This request, with the increased funding required for debt service, would require a transfer from the General Fund of $51,386,445 representing an increase of $17,265,167 or 51 percent. A transfer of $38,637,121 is recommended, representing an increase over the current year of $4,515,843 or 13 percent. It is anticipated that the Board of Education will strongly support an increase above the recommended amount. Discussion followed on the teachers’ supplement. County Manager O’Neal advised that $1,531,649 has been recommended in the proposed FY 1998-99 budget to provide all teachers a $2,500 supplement. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BUDGET WORK SESSION, MAY 6, 1998PAGE 461 Chairman Caster commented on the deputy positions beginning at $21,000 and he inquired as to the entry level of pay for a teacher. He requested a report that would reflect the starting salary for a teacher broken down into state, federal, and local funding plus the teacher’s supplement over a period of five years. County Manager O’Neal stated he would be glad to provide a report. Discussion followed on the maintenance of schools. Commissioner Birzenieks expressed concern for hearing that contracting the maintenance service has not worked and asked who provided the maintenance service for the schools? Chairman Caster advised it appears that firm after firm is used with cancellation of contracts on a frequent basis. The major problem seems to be with employees who do not provide an acceptable level of service. Commissioner Birzenieks expressed concern for the fact that contracted services are used in the western part of the state with success. He stated it was difficult to believe that this type of service cannot be contracted in a satisfactory manner. Vice-Chairman Greer suggested using some of the participants in the Work First Program to provide this service, if New Hanover County becomes an electing county. Budget Director Griffin reported when visiting school facilities quarterly, it is quite apparent that schools with in-house maintenance are much cleaner than schools with contracted maintenance. Commissioner Birzenieks asked what changes would occur in the School System if the County approved the $16,414,047 increase over the last fiscal year? County Manager O’Neal responded he did not ask this question; however, the focus has been on improving test scores. Commissioner Davis stated during FY 1997-98, the County approved a $5,300,000 increase for the School Budget. Now, the School System is requesting an additional $16,414.047 with staff recommending only $4,515,843 for FY 1998-99. This means the County has greatly increased the budget for the School System during the past two years. County Manager O’Neal passed out a report reflecting a five-year history of County funding to the School System. The report showed an increase of 14.3 percent for current operations and 17.79 percent for capital outlay. Commissioner Birzenieks asked if the Board of Education had considered performing an employee climate survey of employees and users of the school system? County Manager O’Neal advised that to the best of his knowledge this type of survey has not been performed. Commissioner Birzenieks emphasized the importance of not becoming involved with the internal issues of the School System, but stated with Dr. Martin leaving, it would be beneficial for the new Superintendent of Schools to perform an employee climate survey to ascertain the true needs of the schools. Cape Fear Community College: Funding of $2,585,724, representing an increase of $218,510, or 9 percent, is recommended for Cape Fear Community College. The funds will be used to pay for utilities and contracted services for new buildings, deferred maintenance needs, and security for student and employee parking areas. No increase was funded for the current year. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BUDGET WORK SESSION, MAY 6, 1998PAGE 462 It should be noted that debt service in the General Fund will increase $262,584 for the bonds passed by the voters. The Community College’s funding request will increase next year as additional new facilities become operational. Commissioner Davis informed the Board that Cape Fear Community College was in need of the additional funding requested because of construction projects and new facilities. He stated that Dr. McKeithan does not request additional funding unless it is absolutely necessary. Other Funding Requests: The merit program and pay plan adjustment for deserving employees are included with 2 percent merit and 3 percent market adjustment. The county eliminated across-the- board increases five years ago. The merit and pay plan adjustment programs are entirely performance based. An amount of $345,668, representing the anticipated 8 percent increase, is included to fund the cost of the MedPoint Health Insurance Plan. It is also recommended that New Hanover County fund the increased cost of the dental insurance plan. Also, included is $30,000 to continue the county-wide training developed and operated by the Human Resources Department. The training has proved to be effective. Approximately $100,000 is recommended for a pay and classification study. The last study was conducted during FY 1990- 1991. Vice-Chairman Greer inquired as to the cost of the proposed merit and market adjustment? Budget Director Griffin responded $1,400,000. Commissioner Birzenieks asked how the County compared overall to the median market value? Human Resources Director Mallette responded an additional 2% market adjustment will be needed to meet the median market value because no market adjustment was approved last year. Discussion followed on the amount of money that could be saved if the employees paid a large portion of medical benefits. Chairman Caster expressed no desire to hurt the employees, but stated if health insurance continues to increase, why should the taxpayers absorb this cost? Vice-Chairman Greer stated if the 2 percent merit and 3 percent market adjustment will cost $1,400,000 and an additional $345,668 is needed to absorb the 8 percent increase for MedPoint, the overall cost is over $1,800,000. He asked if the employees were aware of the amount of money contributed by the County for benefits? County Manager O’Neal advised that all employees are informed about the cost of benefits, and many people have expressed appreciation for the amount of money contributed by the County. If employees are required to absorb the percentage cost in benefits, many employees will receive a reduced pay check even if they have performed well enough to receive the proposed merit and market adjustment increases. Commissioner Birzenieks advised it had been his experience that employees are truly appreciative of the company paying the percentage increase for health benefits. This a real morale booster, and if given an option, he would rather lower the salary increase. Chairman Caster stated if medical benefits continue to increase, the employees at some point will have to absorb the difference. Discussion followed on the need for a pay and classification study. County Manager O’Neal advised the study would be performed in FY 1998-1999 at a cost of $100,000 and would not be implemented until FY 1999-2000. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BUDGET WORK SESSION, MAY 6, 1998PAGE 463 Vice-Chairman Greer informed the Board that a pay and classification study should not be performed unless it was going to be implemented, which will cost a considerable sum of money. Commissioner Birzenieks commented on the need to perform the study and stated without this type of information there will be problems with recruiting, retaining employees, and overall morale. Vice-Chairman Greer respectfully disagreed with Commissioner Birzenieks and stated after owning a business and coming from the other side, he felt that every employee would like to receive better pay. However, most people are glad to have a job and receive any pay increase. He asked why New Hanover County needed a market adjustment and merit increase if the county was not competing with other counties? Commissioner Birzenieks stated with over 1,000 employees, you must perform a pay and classification study every four to five years to be sure employees are being paid fairly. Human Resources Director Mallette responded when meeting with employees, some jobs have drastically changed over a 10-year period. In many instances, new technology requires more skills. If the County continues to piecemeal reclassifications, there will be a loss of internal equity. It is important to review all positions at a scheduled time to be sure the positions are correctly classified. In the market place, many jobs are worth more, which is not fair to the employees. Vice-Chairman Greer stated he did not disagree with the statements made by Director Mallette; however, he was concerned about using the fund balance to make up the shortfall for the FY 1998-99 Budget. It appears the budget is being geared toward the 1999 revaluation which will create a windfall of revenue. It is not fair to continue to increase the budget each year and expect the taxpayers to absorb the cost. He commented on the excellent quality of County employees and stated his remarks were not against the employees; however, the County Commissioners represent at least 145,000 people who have to be protected from rising costs. County Manager O’Neal stated the pay and classification study is a process whereby the value of a position is related to pay. Over the past eight years, the tax base has grown and the population has greatly increased. This has resulted in a demand for services, and New Hanover County has responded with the provision of quality services. The workforce has not increased proportionately; however, the County Commissioners have allowed the County to move forward with automation which has reduced the need to hire new employees. He advised the cost of local government has increased in every county throughout the State of North Carolina. With continued growth, this trend will not change without an economic depression. Chairman Caster commented on the tax value of the penny increasing, and stated he would like to see the citizens get some return on this increased value. As the owner of two businesses, it will be impossible to remain in business if taxes and services continue to rise. Deputy County Manager Atkinson asked how a formula can be developed to respond to the increased demand for services from 145,000 citizens? Money is needed to continue the operation of government and meet the present demand for services. Further discussion followed on the services being rendered by New Hanover County. Vice- Chairman Greer noted that New Hanover County was not required to provide many of the services rendered. Deputy County Manager Atkinson stated the citizens have requested new schools, additional parks, branch libraries, etc. and the Commissioners have provided these needs. County Manager O’Neal reminded everyone that staff is responsible for presenting the issues, and the elected officials are responsible for evaluating and deciding on these issues. One item that occurred this year was the community growth planning effort. The primary items NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BUDGET WORK SESSION, MAY 6, 1998PAGE 464 addressed in this study were to improve education, transportation, community amenities, and provide opportunities for New Hanover County to be the best place to live. After twenty years in government, it appears that many of the responsibilities paid formerly by the State have become the responsibility of local governments. This trend has placed a great burden on cities and counties. Commissioner Birzenieks commented on the cost of health insurance and asked if the counties throughout the State formed a group to purchase medical insurance, would money be saved? County Manager O’Neal reported approximately twelve years ago, the N. C. Association of County Commissioners formed a pool to purchase liability insurance and worker’s compensation insurance. Approximately two years ago, the County could obtain better rates by negotiating outside the group. The pool is still in existence and has moved into health insurance, but the County receives better rates from other companies. Commissioner Birzenieks stated if the group should cease to exist, the premiums provided by other vendors would increase. Elections: An additional election is scheduled for September 1998. A budget amendment may be required during the next fiscal year to cover the cost of elections. At the present time, the cost of an election has not been determined. Print Shop: The Printing Assistant position will become vacant during the upcoming year because the employee is retiring. It is recommended that the position not be filled due to the impacts of changing technology in printing. The Director of the Print Shop will continue to offer some printing services with the agenda being a top priority. This will consume one-third of the position and the remaining portion will be used by the Cape Fear Museum. The Director of the Print Shop is a graphic artist and a valued employee. It is felt this combination of duties will be beneficial to the County. Eventually, the agenda and all items will be contracted out to printing companies. Southeastern Center: An increase of $107,515 is recommended to provide for the County’s portion of an additional psychiatrist and support staff. Brunswick and Pender Counties have agreed to pay their portion of the position. Outside Agencies: Funding remains at the current level; however, in the Human Services area, there is a shift in the funding among the various agencies. Public Safety: An amount of $240,660 has been included for the debt service on the 800 MHZ radio system in public safety departments. Vice-Chairman Greer asked if this was a continuation of the system from last year? Budget Director Griffin advised this funding would be used to place 800 MHZ radios in County law enforcement vehicles. The City Fire Department and City Police Department already have the 800 MHZ system. Vice-Chairman Greer stated he was not sure the 800 MHZ equipment was being used by the City Police and Fire Departments. Public Information Officer, Mark Boyer, reported after discussing this matter with Emergency Management Director, Dan Summers, the City Fire Department will go on line next week, and the City Police Department radios are on order. Fire District: Current projections indicate no tax increase will be required. Twenty-one new positions are recommended to improve the County’s insurance rating, which will lower the cost of both commercial and residential fire insurance. The protection of life and property will be greatly improved. In the future, an adjustment in the tax rate will be necessary to support the NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BUDGET WORK SESSION, MAY 6, 1998PAGE 465 Fire Service District. The Board will be kept informed on changes or expansion of these services. Vice-Chairman Greer asked if the Fire Service Fund Balance was being used? Budget Director Griffin replied the fund balance was being used; however, the homeowners will receive a decrease in fire insurance premiums. Commissioner Birzenieks spoke on his home being annexed by the City and stated after calling his insurance agent, he was informed his homeowners insurance premium would drop approximately $900. Commissioner Howell stated the average decrease in homeowners premiums should be $200. Further discussion was held on the problems with recruiting volunteer firefighters. Assistant County Manager Weaver reported many of the volunteer firefighters were being hired by the City Fire Department. Environmental Management Fund: A transfer of $2,000,000 from the general fund is projected to balance the Environmental Management Fund. An amount of $891,785 will be appropriated from the fund balance. Funds are available in the fund balance because of the FEMA funded portion appropriated for closure of Cell 1 after the two 1996 hurricanes. Debt service is budgeted at $2,918,570 in the Environmental Management Fund and $610,448 in the General Fund. Staff is working on ways to reduce the general fund transfer required to balance the Environmental Management Fund. The necessity to lower the tipping fee from $34 to $28 per ton to retain refuse in New Hanover County has complicated the issue. Water and Sewer District: Installment debt expanded by almost $1,000,000 is due to payments on Certificates of Participation that were used to fund water and sewer projects. The total customer base has increased approximately 9 percent over the prior year. The District is funded by user fees and a $4 million transfer from the undesignated portion of the one cent sales tax. County Manager O’Neal encouraged the Commissioners to urge the Wilmington City Council to move toward forming a joint water and sewer service. He stated the issue is critical for both the City and County. Capital Improvements: Funding for a number of capital projects is recommended as follows: ? Emergency Operation Center (including 911 backup system) $750,000 ? Pilots Ridge Project$500,000 ? Castle Hayne Park$155,000 ? Ogden Park$561,000 ? Renovation & equipment for automation of Courthouse$500,000 ? Other Projects$750,000 While this is over $3,000,000 in projects, needs not addressed include such major items as drainage and expansion of the Jail, Courts, and Administration Building. The Sheriff has included $20,000 in his recommended budget for a consultant to study a jail expansion. County Manager O’Neal commented on the lack of space in the Judicial Building and stated this matter must be addressed. Commissioner Davis commented on the lack of cases being prosecuted and stated if these cases were moved more quickly, the space needs may not be so critical. City of Wilmington: The City of Wilmington’s annexation plans and related court case as well as the General Assembly’s actions on annexation will significantly impact future budgets. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BUDGET WORK SESSION, MAY 6, 1998PAGE 466 Following is a list of transfers that are currently budgeted for City activities: ? Legion Stadium$150,000 ? Fourth of July Fireworks$ 8,000 ? Contributions to Skate Board Park$ 25,000 ? Storm Water Utility Fee (annual bill)$ 22,600 Vice-Chairman Greer recommended withdrawing the funding for the Skate Park. Chairman Caster advised there is a new commercial skate park in town. In his opinion, this was a mistake; however, the County agreed to provide funding to demonstrate a cooperative relationship with the City. Unknowns: ? Drainage requirements will be addressed pending receipt of study results. ? Discussions are currently occurring with School administrators concerning maintenance of school grounds by the Parks Department. ? Discussions are on-going with the City of Wilmington concerning which entity could most effectively operate a joint utility function. Chairman Caster requested the Board to consider allowing the City to transfer Legion Stadium to the County. Additional Items: ? An amount of $150,000 is budgeted in the Property Management budget to address the County’s roofing problems. ? An increase of $34,000 is included to improve maintenance of the County facilities. ? An amount of $8,000 is budgeted to prepare an informational film on County operations. ? Worker’s Compensation insurance is budgeted in non-departmental since it is difficult to predict which departments will be impacted. In closing, County Manager O’Neal requested the Board to review the New Hanover County organizational chart, which will promote the Assistant to the County Manager, Patricia Melvin, to an Assistant County Manager. Ms. Melvin will oversee the following sections: Mental Health, Veterans Services, Aging, Department of Social Services, Elections, New Hanover County Health Department, Human Relations, New Hanover County Library, and the Cape Fear Museum. Discussion was held on the Work First Program. Budget Director Griffin advised that $778,000 has been included in the budget if New Hanover County becomes an electing county. Vice-Chairman Greer recommended removing the $778,000 from the proposed budget and placing the money in the fund balance so it will be available if needed. County Manager O’Neal advised the budget presentation will be made on May 18, 1998. Once the presentation is made, the Board should schedule a Work Session to make adjustments to the proposed budget. A Public Hearing will be held on June 1, 1998 with final adoption on June 15, 1998. He requested the Board to make any recommended changes. Vice-Chairman Greer recommended removing the following new positions from the proposed budget: NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BUDGET WORK SESSION, MAY 6, 1998PAGE 467 2 Animal Control Positions 2 Inspections Positions 1 Library Position 1 Parks Position 1 Property Management Position 2 Sheriff Positions 2 DSS Positions County Manager O’Neal reported he continues to hear that more positions are needed in the Inspections Department. Commissioner Howell advised that things could be done in the Inspections Department to save time. Vice-Chairman Greer recommended the following adjustments in the proposed funding: ? Negotiate with the Medical Center to see if unused leave for EMS employees can be transferred in lieu of a one-time $500,000 payment. ? Review the Capital Improvement Program and cut by $1,500,000. It will be impossible to fund the Pilots Ridge Project, Castle Hayne Park, Ogden Park, New Hanover County Courthouse and other projects. Vice-Chairman Greer requested staff to avoid using too much fund balance and present a tax increase based upon the bonded debt service. Commissioner Davis stated he was opposed to a tax increase other than for the school bonds. After further discussion, County Manager O’Neal stated he could balance the budget with a one cent tax increase. ADJOURNMENT Chairman Caster adjourned the meeting at 9:00 p.m. Respectfully submitted, Lucie F. Harrell Clerk to the Board