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HomeMy WebLinkAbout1993-04-29 Budget Work Session . . . '""llllll MINUTES OF BUDGET WORK SESSION, APRIL 29, 1993 PAGE 438 ASSEMBLY The New Hanover County Board of Commissioners held a Budget Work Session on April 29, 1993, at 7:00 P.M. in the Assembly Room 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; and Clerk to the Board, Lucie F. Harrell. Chairman Greer called the Work Session to order. PRESENTATION OF NEW PAY PLAN Director of Human Resources, Andre' Mallette, reported the purpose of the new Pay Plan is to attract qualified applicants, retain top performers; and weed out poor performers. These objectives can be accomplished by adjustments to the salary schedule which will increase the hiring rate, ensure top performers are compensated at the going market rate, increase the use of the performance review process, and freeze the salary of poor performers, encouraging them to seek other employment. There will be no cost-of-living increases under the new Pay Plan. Each budget position is classified, evaluated and assigned to a pay grade, based on that evaluation. Each pay grade has a minimum rate of pay, a job rate (the mid-point), and a maximum rate. Each pay grade is divided into two ranges: (1) from the minimum rate to the job rate, referred to as the Development Range; and (2) from the job rate to the maximum rate, referred to as the Incentive Range. Advancement from minimum to maximum is based on performance. Ratings for performance are as follows: (1) below standard; (2) standard; and (3) above standard. The range of increase is from 0% to 10%. No employee rated below standard will receive a merit increase. Employees performing at the standard level in the Development Range will be eligible to receive a 0% to 5% merit increase; and employees receiving above standard ratings in the Development Range will be eligible to receive a 0% to 10% merit increase. Employees receiving a standard rating in the Incentive Range will not be eligible to receive a merit increase. Employees receiving an above standard rating in the Incentive Range will be eligible to receive a 0% to 10% merit increase. The purpose of the Pay Plan is to provide flexibility to distribute merit increases to recognize varying levels of performance. Employees are hired at the minimum rate, which is the beginning of the Development Range. Normally, in the development range, employees are learning new job skills, establishing work habi ts, and demonstrating work behaviors. Employees progress through the development range to the job rate based on the rate of development and performance. When they have arrived at the job rate, they are considered to be fully developed and qualified to perform the functions of the position as an experienced employee in that position and in the organization. Generally, the job rate is the prevailing rate paid in the job market based on an analysis of the competitive labor market and the internal relationship of position classes. This is where an employee should be able to fully perform duties and responsibilities of the position as expected. Each year a salary survey will be conducted to see if these rates should be increased. To earn a pay increase above the job rate, the employee must perform above what is expected of an experienced employee in the position. That is why any point above the job rate is in the Incentive Range. This range is for exemplary performance. ~ // MINUTES OF BUDGET WORK SESSION, APRIL 29, 1993 PAGE 439 The purpose of the new Pay Plan is to receive pay adjustments based upon performance. with market adjustments and merit increases, staff feels this plan will keep the county competitive and reward performance. Implementation of the new Pay Plan will be a learning process for administrative staff and the department heads. Based upon past performance, many departments have turned in funds at the end of the year which have not been used for merit increases; therefore, many department heads are already granting merit increases based upon performance. Chairman Greer commented on the proposed pay plan adjustment of 3% and the 5% merit to be included in the FY 1993-94 Budget and inquired as to whether all employees will be eligible to receive 8%? Finance Director, Andrew J. Atkinson, reported the 3% market adjustment will adjust the steps and grades but not necessarily the employee's salary. On the new Pay Plan there will be employees who will not receive any increase due to poor performance; however, under the old pay plan all employees would have received the 3% adjustment regardless of performance. Also, with merit increments, employees at the job rate will have to demonstrate exemplary performance in order to be eligible to receive a merit increase. This plan should save the County money and award employees according to performance. A lengthy discussion was held on the proposed $2,000,000 included in the FY 1993-94 Budget to provide a 5% merit increase for County employees and a market adjustment of 3% to the Pay Plan. County Manager O'Neal emphasized the importance of including merit increases since no funds were appropriated for merit raises during FY 1991-92 or FY 1992-93. with downsizing and budget constraints, employees have increased workloads and are deserving of a merit increase and the Pay Plan adjustment in order to be awarded for performance and allow New Hanover County to remain competitive. Discussion of Juror Parking Commissioner sisson commented on an interpretation of the state statute pertaining to juror parking by the Attorney General's office and inquired as to whether- a court decision has ever been rendered reflecting that counties must pay for jurors to park? The County is not required to pay parking for witnesses, who are subpoenaed to appear in court; therefore, why should the County pay for jurors to park at a cost of $22,000 annually when they are compensated for jury duty? Deputy County Manager, Mary Gornto, reported the state statute requires counties to provide courtrooms, furnishings, and parking. The Attorney General's office rendered an interpretation of the state statute as meaning that parking is intended for judges as well as jurors. There has not been a court decision on this matter; however, two other counties checked into this requirement with the same opinion rendered by the Attorney General's office. commissioner sisson stated, perhaps, this a matter that should be pursued. Report on Increase in ABC Revenues Commissioner Barone reported on a $45,000 increase in ABC revenues for the three quarters of this year with an anticipated increase of $62,500 for the four quarters compared to last year. This increase has occurred because of the new ABC store in the Ogden area which has drawn business from the ABC store located on Kerr Avenue. She reported some of these funds could be used to fund a Veterans Services Office. , l () () () -..... MINUTES OF BUDGET WORK SESSION, APRIL 29, 1993 PAGE 440 Discussion of Tax Revaluation Every Four Years Vice-Chairman Mathews commented on generating revenues and recommended discussing the possibility of performing tax revaluations every four years. . commissioner sisson reported a four year tax revaluation would more equally distribute the tax burden to all citizens and allow staff to more accurately project figures. After discussion, the County Manager was directed to check into performing a tax revaluation more frequently, possibly every four years, with a report being prepared and placed on the agenda as a discussion item at the regular meeting of May 17, 1993. Discussion of Revenues Collected Chairman Greer expressed concern for allowing expenditures to continue to exceed increased revenues and stated some how this over spending must be stopped. The citizens feel there are too many people on the receiving end of government without enough people on the paying end of government. Budget Director McAbee reported the Department of Social Serviqes revenues continue to increase, but its expenditures increase faster than revenues. This is not unusual for this department and other mandated programs. Also, with opening of the renovated jail, museum, and aging center, expenses have increased. . Finance Director Atkinson reported staff begins the budgetary process with trying to stretch dollars received from increased revenues to cover expenditures. The Budget Director and department heads have cut and presented reduced budget requests for the past two years. The actual operation of County government has decreased with downsizing and close monitoring of expenses; however, the County funds required for DSS and the School System have continually increased. Commissioner Barone inquired as to the requested increase for the Board of Elections? Budget Director McAbee reported the department was under budgeted and additional costs were incurred with the large voter turn out for the November election. Discussion of New Positions commissioner Barone inquired as to the need for the Tax Mapper I position. County Manager O'Neal reported on the sizeable amount of funds invested by County in this program and stated in order to continue implementation of the Mapping Program and not suffer a loss of funds invested, this position is necessary. Emphasis was placed on the future benefits that will be derived from this program, particularly to the Tax Department in drawing accurate and exact boundary lines for parcels of land. Chairman Greer recommended eliminating the proposed Zoning Enforcement Officer position. . Commissioner Sisson strongly opposed eliminating this position which is being recommended for enforcement of the Billboard and Sign Ordinance. More staff time will be required to monitor non- conforming billboards and signs; therefore, the position is necessary. Also, this was an intense public issue that the citizens expect to be enforced and monitored. After a lengthy discussion of opposition to a 5 cent tax increase, Chairman Greer presented the following recommendations to reduce the tax increase: ~ /~ MINUTES OF BUDGET WORK SESSION, APRIL 29, 1993 PAGE 441 Reduce the $100,000 funding request from Cape Fear Community College to $50,000. Eliminate the Computer-Assisted Dispatcher position in the Sheriff's Department in the amount of $28,224. Eliminate the Zoning Enforcement Officer position. Eliminate $250,000 for purchase of a new radio tower. n Eliminate $10,000 for the Total Quality Management pilot program to be conducted by the Finance Department. Eliminate the 3% Pay Plan adjustment for a total of $750,000. A lengthy discussion was held on each recommendation. Commissioner Barone reported on the amount of money and time given by staff to imple~ent the Quality Management Program in the city and recommended the Board giving a great deal of thought before implementing this program. Commissioner Sisson expressed concern for the main source of revenue being the property tax and recommended using alternative sources of revenue such as user fees and assessment of an impact fee on new development. This method allows the user to pay for the service. Chairman Greer stated seeking other sources of revenue should have been done earlier in the budgetary process; therefore, the property tax is the most viable source of additional revenue. commissioner Barone expressed opposition to a tax increase and recommended working with the funds available through additional cuts in expenditures. () County Manager O'Neal reported the Board can decide as to how the budget is to be prepared; however, for the past two years programs and the operation of County government have been cut. The items proposed in the budget are items that are necessary to move forward without stagnation. Additional cuts cannot be made without eliminating or greatly reducing entire programs or departments. Consensus: After a lengthy discussion, it was the consensus of the Board to direct the County Manager to prepare a recommended budget with a tax increase of 2.5 cents with consideration given to the recommendations presented for reduction of the proposed budget. A Budget Work Session will be held on May 11, 1993, at 7:00 P.M. in the Assembly Room of the New Hanover County Administration Building for review of the amended budget. It was also agreed that in late August or September the Board will hold Work Sessions to establish goals and priorities for the FY 1994-95 Budget. Discussion of Requests from the Board of Fire Commissioners commissioner sisson, the Commissioners' representative on the Board of Fire Commissioners, reported the Fire Board of Commissioners has requested that he present the following items: 1) Request the Budget Director to provide a breakdown of costs to the Fire Service District when transferring the County Fire Code Division into the Fire District. G \ / 2) Concern for the N. C. Forestry Service providing services within the City Limits when a portion of Fire Service District funds are used to fund the Forestry Service. Budget Director McAbee reported she will be glad to respond to these concerns. \ . . . ~ MINUTES OF BUDGET WORK SESSION, APRIL 29, 1993 PAGE 442 ADJOURNMENT Chairman Greer adjourned the meeting at 10:31 P.M. ~~Z:' LUCle F. Harrell Clerk to the Board ~