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HomeMy WebLinkAbout2005-04-14 Budget Work Session NEW HANOVER COUNTY BOARD OF COMMISSIONERS BUDGET WORK SESSION, APRIL 14,2005 BOOK 30 PAGE 281 ASSEMBLY The New Hanover County Board of Commissioners held a Budget Work Session on Thursday, April 14, 2005, at 3: 10 p.rn. in Room 501 at the Administration Building, 320 Chestnut Street, Wilmington, North Carolina. Members present were: Chairman Robert G. Greer; Vice-Chairman William A. Caster; Commissioner William A. Kopp, Jr.; Commissioner Nancy H. Pritchett; County Manager Allen 0 'Neal; County Attorney Wanda M. Copley; and Clerk to the Board Sheila L Schult. Commissioner Ted Davis, Jr. was absent. Others present were: Budget Director Cam Griffin; Senior Budget Analyst Norma Troutman; Budget Analyst Donna Seal; Finance Director Bruce Shell; Assistant County Manager Patricia A. Melvin; Assistant County Manager Dave Weaver; Chief Deputy W. T. Parker and Public Information Officer Mark Boyer. Chairman Greer called the meeting to order and requested Budget Director Cam Griffin to present a budget overview for FY 2005-2006. PRESENTATION AND DISCUSSION OF THE FY 2005-2006 BUDGET Budget Director Griffin began the presentation by informing the Board that staff continues to refine the FY 05-06 budget with the existing tax rate. The following information provides basic information on the current state ofthe budget. Revenue: Ad Valorem Tax - The tax base growth between FY 04-05 and FY 05-06 is expected to be 3.6 percent. Transfer in from Capital Projects - An amount of $4. 8 million is recommended to be transferred in from capital projects and will be used to fund a portion of the FY 05-06 debt service. Sales Tax - Sales tax is expected to exceed the amount budgeted in FY 04-05. . Article 39 - at this time a $2.9 million increase is projected over FY 03-04 actual receipts in the locally generated one-cent sales tax. . Article 40 and 42 - at this time a three percent growth is projected in the one half-cent sales tax from FY 03 -04 actual. . Article 44 - at this time a three percent growth is projected from the FY 04-05 estimated amount. Fund Balance - It is recommended that a fund balance of$5.l million be appropriated to balance the FY 05-06 budget. Ofthis amount, the Commissioners approved $2.14 million for school improvements. The appropriation of the fund balance at this level will not jeopardize the strong financial position of the County. Umeserved/undesignated fund balance grew by $4.4 million between FY 03-04 and FY 04-05. Preliminary projections for FY 04-05 indicate a reduction in fund balance of$2 million. The County will continue to maintain a strong fund balance as well as its strong bond rating. Exuenditures: Schools - The preliminary amount recommended for the schools in FY 05-06 is an increase of $2.6 million in operating and $1 million in capital outlay for a total increase of $3.6 million. Fund balance of $800,000 is recommended for appropriation in Fund 125 in FY 05-06. The Board of Education requested an increase of$5.6 million or 11.2 percent in operating expenses. A $7.2 million request was made for funding the Schools' capital outlay for FY 05-06. This is an increase of $4.2 million over the FY 04-05 adopted amount for capital improvements. Cape Fear Community College - Funding of$5.7 million is recommended for Cape Fear Community College. This is an increase of $940,000. Department of Social Services - An increase of $1.6 million in County funds is recommended for the Department of Social Services due to projected increase in Medicaid and adoption assistance subsidy. The County cost of Medicaid is projected to increase $1.3 million or 16.3 percent from FY 04-05. Staff recommends using the state estimate for budgeting purposes. Southeastern Center for Mental Health - Funding of$1.6 million remains constant for Southeastern Center for Mental Health, Developmental Disabilities and Substance Abuse Services. Sheriff's Office - An increase of $3.4 million in County funding is recommended for the Sheriff's Office. The increase includes the full-year funding of the 37 positions added for the Detention Center in FY 04-05 ($1.6 million), 16 positions added for the Detention Center in FY 05-06 ($600,000) and funding for the Gang Task Force, which includes two positions ($91,319). Also included are increases in health insurance and merit and market adjustments. Public Safety Communications Center - An amount of$1.29 million is included for improvements to the Public Safety Communications Center as part of the move to their new location. Wireline and Wireless funds will be used to offset eligible costs. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BUDGET WORK SESSION, APRIL 14,2005 BOOK 30 PAGE 282 Board of Elections - There is an increase in Elections budget of $248,209 because of the potential for five elections being held in FY 05-06. Revenue will offset the cost ifthe municipal elections are held without County elections. Information Technology - A PC replacement program is recommended. This will provide for a more standardized PC program and will aid in installation, maintenance, and repair. Computers will be replaced on a three to four year cycle. Funds in the amount of $110,000 are included to begin the replacement of the County telephone systern. The total cost of the new system is estimated to be $1 million. The savings realized on recurring costs of operating a new integrated system would repay the cost of implementation within five years. All departmental phone costs are included in the IT budget in FY 05-06 for more efficient bill processing. Juvenile Day Treatment Center - County funding in the Juvenile Day Treatment Center will increase $173,000. This is a result of the phasing out of state money. Three positions are being eliminated, but funding can't be reduced further if the Center is to operate in a safe and efficient manner. W AVE - Funding in the amount of $149,964 for the contribution for WAVE transportation has been moved to the non-departmental section of the budget. Parks - Funds are included for improvements to Hugh MacRae Park: a walking trail - $150,000 and gazebo - $100,000. An amount of$475,000 is included for a Community Building at Ogden Park and $450,000 is included for improvements to Battle Park; Parks capital expenditures will be eligible for matching funds at a 50 percent return. Museum - Funds of $150,000 are included to implement part of the Museum's Master Plan. This will include moving the gift shop and creating a new entrance to first floor exhibits. Property Management - Funds are included to replace windows and the HV AC system at the Historic Courthouse and automate several HV AC systems. Funds are also included for a generator at the Judicial Annex to keep lift pumps and security cameras activated during power outages. Also included are funds to expand the parking lot at the Northeast Branch Library. Tax - Funds are included to begin the revaluation process. Fire Services - The Fire Service District budget is balanced with the current tax rate. Environmental Management - The Environmental Management Fund is balanced with the current tipping fee. Partial funding for construction of Cell 6C was approved in FY 04-05, with the remainder of $600,000 being recommended for FY 05-06. Water and Sewer District - The Water and Sewer District is balanced by budgeting approximately $1 million in Water and Sewer fund balance. Non-County Agencies - Funding at the FY 04-05 adopted amounts, with a few changes, will be includedfornon- County agencies. Funding applications were not sent to non-County agencies (as in FY 04-05), as funding is limited. Funds currently budgeted and undistributed in FY 04-05 for General Electric and Cellcom (Verizon) will be carried over to FY 05-06. No additional funds for these companies were budgeted in FY 05-06. An increase of $14,500 is recommended for New Hanover Soil and Water Conservation District to fund a portion of a position that was previously federally funded. Capital Improvement Program - Capital requests for FY 05-06 were all valuable projects, though no funding is recommended because of budgetary constraints. Employees - There is a significant increase projected in the cost of health insurance for County employees; negotiations are ongoing concerning the contract for health insurance. There is funding included for a 2 percent market increase and 2 percent merit increase for deserving employees. An amount of$220,000 is included for a wellness program for County employees. The program is recommended to help reduce the cost of medical insurance for County employees. There are 41 new positions recommended for FY 05-06. Ofthese positions 35 are recommended in the General Fund. The General Fund positions are as follows: . One additional Administrative Support Assistant is recommended to support the efficient operation of the Engineering Department. . One additional Fiscal Support Technician is recommended in the Legal Department to improve the collection efforts of the County. No County funds are required for this position; the additional revenue collected will offset the cost. . Two positions are recommended for the Library to provide automation support. . Eight additional positions are recommended for Inspections to meet the demand of increased building activity in the County; these positions will be funded by revenue from inspection fees. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BUDGET WORK SESSION, APRIL 14,2005 BOOK 30 PAGE 283 . Sixteen additional positions are recommended for the Detention Center to support efficient operations. . Two positions are recommended for the Gang Task Force - there is an offset of$52,000 of funding from the Schools' fund. . One Pretrial Release Coordinator is recommended to help reduce the inmate population at the new Detention Center. . One additional Custodian recommended for Property Management to assist with maintenance of County facilities. . One T elecommunicator for Public Safety Communication is recommended to meet critical service needs. . Two Parks positions are recommended to keep the increasing acreage in the County parks system up to standards. The Water and Sewer Fund positions are as follows: . Five positions are recommended in the Water and Sewer District to meet critical service needs. The Fire Services District Fund position is as follows: . One Administrative Support Specialist is recommended in Fire Services to assist with the efficient operation of the department. Budget Director Griffin reported that the City of Wilmington has adopted a resolution requesting that the New Hanover County Board of Commissioners lower the collection rate charged to the City by the County for the collection of ad valorem taxes. The current rate of two percent is requested to be lowered to one percent over the ensuring two years. Budget Director Griffin presented the remainder of the Budget Calendar for FY 05-06: April 28 - Budget work session at 2 p.rn. May 12 - Budget to Board (informally) May 16 - Board Meeting - County Manager presents recommended budget June 6 - Board Meeting - public hearing on budget June 20 - Board Meeting - Adopt FY 05-06 budget Budget Director Griffin stated that staff looks forward to working with the Commissioners during the remainder of the budget process and requested that she be notified of any specific information that would assist in that process. After brief discussion, the consensus of the Board was to review the information and continue the budget discussion on April 28, 2005 at 2 p.rn. Hearing no further comments, Chairman Greer adjourned the meeting at 4:20 p.rn. Respectfully submitted, Sheila 1. Schult Clerk to the Board