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