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1996-05-30 Budget Work Session NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 25 BUDGET WORK SESSION, MAY 30, 1996PAGE 409 ASSEMBLY The New Hanover County Board of Commissioners held a Budget Work Session on Thursday, May 30, 1996, at 11:01 A.M. in Room 501 of the New Hanover County Administration Building, 320 Chestnut Street, Wilmington, North Carolina. Members present were: Commissioners Sandra Barone; William A. Caster; William E. Sisson, Jr.; Vice-Chairman E. L. Mathews, Jr.; Chairman Robert G. Greer; County Manager, Allen O'Neal; County Attorney, Wanda M. Copley; and Clerk to the Board, Lucie F. Harrell. Chairman Greer called the meeting to order and the following budget items were discussed: Discussion of Letter Received from the Community Penalties Board of Directors Chairman Greer commented on the letter received from the Community Penalties Board of Directors and inquired as to why no funding was ever recommended by the Human Services Allocation Advisory Committee for this program? Budget Director, Cam Griffin, reported the Human Services Allocation Advisory Committee spends months reviewing the services provided by all the human services agencies requesting funds and determines which agencies are providing the most services to the citizens for the funds appropriated. A major concern about the Community Penalties Program is that only 28 cases were accepted by the Judge for sentencing last year with a staff of six and one-half positions. Other cases were reviewed, but could not be referred. Also, 100% of the local match for the grant received by the Community Penalties Program is funded by the County, and it has been suggested that this match be obtained from another source. Commissioner Sisson advised that concern has been expressed about one person currently serving on the Human Services Allocation Advisory Committee having too much influence on funding decisions because of her employment with the courts. This concern has been expressed by other agencies receiving CBA funding, not just the Community Penalties Program. Vice-Chairman Mathews recommended a more frequent rotation of the members serving on the Human Services Allocation Advisory Committee. Budget Director Griffin explained that when the Human Services Allocation Advisory Committee was established it was composed of 12 members as follows: 6 members at-large and six representatives (one each) from the following agencies: Health Department Juvenile Courts Public Schools Southeastern Center Dept. of Social Services United Way She advised that six agency representatives were appointed by the directors of the agencies with the six at-large members being appointed by the Board of County Commissioners through the regular appointment process which allows persons to serve two three-year terms. Commissioner Sisson reported he felt the various agencies, such as the Southeastern Center, should also rotate members in order to avoid developing too many connections that could influence funding decisions. Vice-Chairman Mathews expressed concern for many of the employees at Community Penalties feeling uncomfortable with NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 25 BUDGET WORK SESSION, MAY 30, 1996PAGE 410 discussing funding requests with the members of the Human Services Allocation Advisory Committee. He objected to this type of communication and stated open discussion should occur between this committee and any agency requesting funding. County Manager O'Neal commented on the advantages of the Human Services Allocation Advisory Committee to the County during the budget process, and he agreed with rotation of its membership. He explained that hours of time were given by the members in trying to distribute the same amount of funding each year among a growing number of outside agency funding requests. Discussion of Recommended Funding for Outside Agencies Commissioner Caster inquired as to whether the Dispute Settlement Center had requested funding? Budget Director Griffin responded that the Dispute Settlement Center requested CBA funding but did not submit an application before the deadline. When trying to obtain the CBA application, the funding request did not comply to the CBA guidelines; therefore, no funding was recommended. Commissioner Caster commented on the $20,000 funding request by the Cape Fear River Program and inquired as to whether this agency had received a $10,000 funding allocation in the past? Budget Director Griffin responded that no County funding had ever been approved for the Cape Fear River Program; however, when submitting the $20,000 funding request for FY 1996-97, a letter was first submitted for a $10,000 funding request and then another letter was received for a $20,000 funding request. Discussion was held on the annual $50,000 payment to the Coast Line Convention Center and the number of years remaining before the lease expires. Finance Director, Bruce Shell, advised that the lease would expire in November 1996 and reported the Coast Line Convention Center Board was in the process of preparing a business plan which would recommend a review of the following options: (1)Hire a manager and redesign the rate structures. (2)Privatize the facility under a management company with the board receiving a percentage of the profit over a designated amount. A Request for Proposals is being prepared and will be mailed to see what type of response will be received for contracting out the management of the facility. Further discussion was held on the ownership of the Coast Line Convention Center. Finance Director Shell reported the building is owned by the Coast Line Associates Partnership. The facility was a $6,000,000 complex, which was financed with a UDAG grant through the City of Wilmington. The facility was constructed with the convention space being leased by the City and County to be operated as a public convention center. The annual payment of $50,000 is the County's portion of funding for leasing the convention space. The Hilton is in the process of expanding its facility and has shown an interest in managing the convention space on a short-term basis. Chairman Greer asked if the County had to continue the annual payment of $50,000, which is being used by the Coast Line Associates Partnership to pay off the bank loan? Finance Director Shell replied that the purpose of preparing a business plan was for the Convention Center to become self- sufficient; however, it has been found that convention centers across the state and country are not self-sustaining and generally operate at a deficit. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 25 BUDGET WORK SESSION, MAY 30, 1996PAGE 411 Chairman Greer commented on the change in the distribution of the Room Occupancy Tax and asked if some of the additional funds received by the Cape Fear Coast Convention & Visitors Bureau could be used by the Coast Line Convention Center? Deputy County Manager, Andrew J. Atkinson, advised that proceeds from the Room Occupancy Tax could not be used for rental of convention space. Discussion of Funding Request Submitted by the Katie B. Hines Senior Center Commissioner Barone noted that no funding was recommended for the Katie B. Hines Center last year, or for the next fiscal year, and she asked if this was because of the Center's healthy cash reserve and funding provided by the County for the operation of the Nutrition Center? Budget Director Griffin responded that New Hanover County pays rent for the Nutrition Center and provides the meals as well as transportation. Also, in-home services are provided to the seniors, and the County provided capital funding to establish the Katie B. Hines Senior Center. Discussion of Funding for Environmental Management Chairman Greer inquired as to why funding was not included in the Environmental Management budget for construction of the new cell at the Landfill? Budget Director Griffin responded that the $1.6 million borrowed to build the Construction & Demolition Center would be used to construct the cell instead of transferring funds from the general fund. Assistant County Manager, Dave Weaver, commented on the increased cost of constructing a cell and reported because of the required clay linear, the cost has increased from $800,000 to over $1,000,000. Budget Director Griffin reported the actual transfer from the general fund was down $610,000 for Environmental Management. Discussion of Recommended Funding for Friends of Public Radio and the Bellamy Mansion Commissioner Barone inquired as to why funding was continued for the Friends of Public Radio and stated it was her understanding that many agencies of this type would start raising funds from the private sector. Budget Director Griffin responded that since no specific direction had been given by the Board, the same outside agencies and funding levels were recommended; however, she would be glad to make any changes approved by the Board. Discussion was held on funding for the Bellamy Mansion. Vice- Chairman Mathews commented on the number of tourists that are visiting the Bellamy Mansion and advised that the City had planned to approve a funding request in the amount of $5,000. He requested the Board to consider a funding request of $5,000 for the Bellamy Mansion, and asked if the Board would like to reduce the recommended funding for the Friends of Public Radio by that amount? Commissioner Caster questioned why the County was funding the Friends of Public Radio as well as the Wilmington Railroad Museum, who appears to have an excellent financial position? He asked if figures were available on the assets of the Wilmington Railroad Museum? County Manager O'Neal responded no figures were available, but Staff would be glad to provide these figures before the end of the meeting. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 25 BUDGET WORK SESSION, MAY 30, 1996PAGE 412 Commissioner Sisson reported that Public Radio provides diversity in programming to the community and stated he felt this type of radio station was needed. Commissioner Barone commented on the two active fund raising groups for Public Radio and reported she could not support funding a radio station. Commissioner Sisson stated if $5,000 is removed from the Friends of Public Radio, he would recommend transferring these funds to the Big Buddy Program, which has a proven success record. Budget Director Griffin reported that the Friends of Public Radio did not receive funding from the City during FY 1995-96; however, a funding request in the amount of $11,000 has been submitted to the City for FY 1996-97. Chairman Greer recommended reducing funding on a gradual basis instead of completely eliminating all funding at one time. He stated since some members are not in favor of funding Public Radio, he would recommended reducing the recommended funding to $6,000. Commissioner Caster expressed opposition to funding Public Radio, the Wilmington Railroad Museum or the Bellamy Mansion. Commissioner Barone agreed and stated she felt the Bellamy Mansion Association had adequate funding. Consensus: After further discussion, it was the consensus of a majority of the members of the Board to reduce the recommended funding for the Friends to Public Radio from $7,290 to $6,000 and approve a funding request in the amount of $5,000 for the Bellamy Mansion. Commissioner Barone and Commissioner Caster were opposed to the consensus action. Discussion of Funding the School Land Purchase Chairman Greer inquired as to how the land purchase for the new Middle/High School Complex would be funded? County Manager O'Neal responded that when the budget was prepared, no site had been selected; therefore, no funding was included in the recommended budget. He advised that if the land could be purchased over a period of years, which appears to be possible at this time, the funding could be appropriated from the funds allocated to the School System for Capital Improvements, or from the general fund for the first principal and interest payment in the amount of $363,000 due August 1, 1996. The other option to consider is increasing the tax rate by an additional one-half cent or one cent over the recommended tax increase of one cent as presented in the FY 1996-97 Budget. He advised that one cent on the tax rate would generate revenue in the amount of $882,000 which could be used to pay the August 1, 1996, principal and interest payment with the remaining funds being appropriated to schools. Discussion of the Requested Environmental Health Specialist Position by the Health Department County Manager O'Neal reported the Health Department requested six new positions with three recommended new positions in the FY 1996-97 Budget. He advised that the Environmental Health Program Specialist position had been requested to assist with restaurant and food inspections; however, after a review of the forty positions requested, this position was not recommended because he felt an Animal Control Officer was needed more than the Environmental Health Specialist position. Discussion was held on the Ombudsman position included in the FY 1996-97 Budget under the Health Department as recommended by Chairman Greer. Commissioner Barone asked if the Ombudsman position had to be filled with a registered nurse? NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 25 BUDGET WORK SESSION, MAY 30, 1996PAGE 413 Chairman Greer advised that a registered nurse was not required in the Ombudsman position; however, this background would be quite beneficial in the review and inspection of Nursing and Domiciliary Homes. He recommended waiting until the enabling legislation was approved by the General Assembly before deciding how to fill the position. Commissioner Barone requested Staff to prepare a number of options on how to fill the Ombudsman position before deciding on the qualifications needed. She inquired as to the cost of the Ombudsman position? Budget Director Griffin responded the Ombudsman position would begin at an annual salary of $34,000 with benefits. Commissioner Sisson stressed the importance of hiring an individual with not only a Nursing degree but with diplomatic skills, political savvy, and the capability of interfacing with all types of individuals on the local and state levels of government. Discussion was held on privatizing the Parks Department. Commissioner Caster commented on the new Groundskeeper positions and inquired as to the current number of positions. County Manager O'Neal reported there are currently five Groundskeeper positions. As to privatization, some of the services such as maintaining the easements, grading, and tree service are contracted out; however, the maintenance of ball fields and scheduling of events held in the parks should be done by the Parks Department. Budget Director Griffin advised that currently there are contracts for landscaping in the amount of $70,000; tree service in the amount of $10,000 and grading in the amount of $4,000. Chairman Greer inquired as to why revenues were decreasing in the Department of Aging, Human Relations, and Transportation? Budget Director Griffin explained that until the state and federal governments have actually adopted budgets, Staff had no way to determine the funding reductions to these departments; therefore, figures were estimated and placed in the recommended budget. The reduction in the Transportation budget was due to the manner in which vans were purchased and the receipt of state and federal funds. Commissioner Barone commented on the complexity of understanding the revenues received and expenditures of the Environmental Fund. For example, she was not aware that the money borrowed for the Construction & Demolition Center was in the general fund and will now be used to construct a new landfill cell. She expressed concern for not being able to keep up with the different operations, such as the landfill, WASTEC, recycling, etc. County Manager O'Neal reported he would be glad to prepare a summary on the major changes in the Environmental Management budget and forward this information to the Board. Announcement of Invitation to Attend Special Break for Elected Officials on June 21, 1996, with Guest Speaker Andres Duany Commissioner Caster announced that Brunswick, Columbus, New Hanover and Pender counties have been invited to attend a special breakfast on June 21, 1996, at 7:30 A.M. at the University Center to start a one-day conference featuring renown urban and transportation planner, Andres Duany, who will discuss "Community Building in the Lower Cape Fear and the Technique of Traditional Town Planning". He advised that New Hanover County has been requested to participate in sponsoring the event with a $500 contribution, and reported he would address this funding request at the June 3, 1996, Board meeting. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 25 BUDGET WORK SESSION, MAY 30, 1996PAGE 414 Discussion of Personal Computers for the County Commissioners County Manager O'Neal commented on the Internet Work Session and reported discussion occurred about providing personal computers to each member of the Board. He requested direction from the Board. After further discussion, it was generally agreed that use of personal computers would be advantageous to the members of the Board. No action was taken. Discussion of Wilmington Railroad Museum County Manager O'Neal reported the Wilmington Railroad Museum maintains unrestricted net assets of over 80% of its actual expenditures with three-fourths of this amount in fixed assets. Cash holdings are at 53% of the Railroad Museum's actual expenditures. Commissioner Sisson inquired as to whether this outside agency should be funded and recommended shifting these funds to an agency with more needs. He emphasized the importance of cutting back on funding to self-supporting agencies in order to help agencies that will never be self-supporting, such as the Big Buddy Program. ADJOURNMENT Chairman Greer stated in closing, there were two major issues in the recommended budget that should be noted: (1) increasing the tax rate by one cent to pay the bond debt for the New Hanover County Schools and Cape Fear Community College; and (2) removing $3,500,000 from the fund balance to cover the remaining needs. He stressed the importance of the Board understanding that the fund balance cannot be used year after year to balance the budget. Chairman Greer adjourned the meeting at 12:06 P.M. Respectfully submitted, Lucie F. Harrell Clerk to the Board