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1993-05-11 Budget Work Session ~ MINUTES OF BUDGET WORK SESSION, MAY 11, 1993 PAGE 470 ASSEMBLY The New Hanover County Board of Commissioners held a Budget Work Session on Tuesday, May 11, 1993, at 7:00 P.M. in the Assembly Room located in 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. DISCUSSION ON CHANGES IN FY 1993-94 RECOMMENDED BUDGET County Manager O'Neal presented the following recommended changes in the FY 1993-94 Budget as requested by the Board in the April 29, 1993, Budget Work Session: 1) Decrease of 2.5 cents in the recommended tax rate. 2) Increase of $750,000 in appropriated fund balance. These additional funds are a result of the current budget not being spent at the level budgeted. This occurs every year since it is impossible to know exact expenditures until June 30, 1993. The Budget Director and the department heads are to be commended for carefully monitoring the budget during the fiscal year. This budget review process has resulted in the concept that all budgeted funds do not have to be expended, and many department heads have returned unused funds to the general fund at the end of each fiscal year. . 3) Elimination of 3% pay plan market adjustment which will result in a savings of $750,000 or 2 cents on the tax rate. 4) Elimination of $10,000 for the Total Quality Management Program in the Finance Department. 5) Decrease of $193,376 in funds set aside for capital projects. The amount budgeted will fund the first two quarterly installment debt payments on the proposed animal control facility and the radio tower. 6) Elimination of $50,000 from the $100,000 requested by Cape Fear Community College. 7) Elimination of Computer-Assisted Dispatcher position in Sheriff's Department in the amount of $28,224. County Manager O'Neal reported $38,284 has been included for a disability policy. All employees will participate in the program with the County paying the premium. . Discussion was held on the proposed disability insurance policy. Finance Director, Andrew J. Atkinson, reported the County does not have a disability insurance policy, and the proposed policy would serve as an interim policy to cover an employee for the period of time from the beginning of a disability until the employee is accepted under the State Retirement Disability policy. The cost is very minimal because it is a short-term disability policy. Consensus: It was the consensus of the Board to include the Disability Policy in the recommended FY 1993-94 Budget. County Manager O'Neal reported persons representing the Food Bank and Veterans Council have strongly objected to the recommended funding for these agencies and requested that no funding be appropriated in FY 1993-94 unless the amount of funding is increased. ~ ------- / I I I I MINUTES OF BUDGET WORK SESSION, MAY 11, 1993 PAGE 471 Budget Request for Veterans Services Office Commissioner Barone reported the state District Veterans Services Office is being closed and moved to Burgaw, N. C.; therefore, no office will be in operation locally for the administration of services to New Hanover County Veterans. County Manager O'Neal reported the cost for New Hanover County to operate a Veterans Services Office with two full-time positions, a Veterans Service Officer and one full-time Clerical Assistant, is estimated to be $51,995 annually. Brunswick County employs a full time Veterans Services Officer and an Administrative Assistant at a cost of $60,582 annually. Pender County has a position for one full-time Veterans Services Officer and one Clerical Assistant at a cost of $30,699 annually. () commissioner Barone inquired as to whether a full-time Clerical Assistant would be needed in a New Hanover County Veterans Services Office? County Manager O'Neal responded that a full-time Clerical Assistant would be needed with the number of veterans living in New Hanover County. Discussion was held on alternatives to providing an office for the veterans. Commissioner Sisson reported on a conversation held with the local Director of the American Red Cross and reported this agency is the only agency mandated by the U. S. Congress to deal with veterans and their families; therefore, the possibility does exists for the County to work through the Red Cross to provide services to the local veterans with the County supplementing the salary of a staff person. County Manager O'Neal reported Deputy County Manager, Mary Gornto, has scheduled a meeting with the local Director of the Red Cross on Friday, May 14, 1993, at which time this idea will be discussed. o commissioner Barone reported on the possibility of operating a joint office with Pender County and stated after discussion with Chairman Jack Swann, he is interested in the idea and will present this item to the Pender County Board of Commissioners. One area of concern expressed by Chairman Swann was that Pender County often views New Hanover County with skepticism; therefore, the joint idea may not be viable. Also, as a matter of information, the Pender County Veterans Services Officer was accidently killed while walking along the road and at the present time this position is vacant. Chairman Greer reported on the regional concept and recommended pursuing a joint operation with Pender County. County Manager O'Neal commented on the proposed alternatives and recommended appropriating a sum of money in the FY 1993-94 Budget for the Veterans Council in order to allow time to see if an arrangement can be negotiated. commissioner Sisson recommended further study of the figures as to the demand for veteran services. It cannot be assumed that the 12,000 to 15,000 veterans living in New Hanover County will demand services. Many veterans are not interested in receiving services; however, there is a group of veterans in desperate need of services. o Consensus: After discussion of the funds that can be saved if a joint operation is negotiated, it was the consensus of the Board to leave a $20,000 funding appropriation in the FY 1993-94 Budget for the Veterans Council and authorize the County Manager to pursue working with Pender County and the American Red Cross to provide services to the veterans. i l . . . ~ MINUTES OF BUDGET WORK SESSION, MAY 11, 1993 PAGE 472 Discussion of Food Bank Funding Request County Manager O'Neal reported the current allocation to the Food Bank is $36,000 with a funding recommendation of $15,000 by the Human Services Allocation Advisory Committee. A lengthy discussion was held on the procedure used by the Human Services Allocation Advisory Committee to review non-county agencies. County Manager O'Neal reported funding was recommended at 70% of the overall figure budgeted for FY 1992-93; therefore, funds were allocated among the agencies based upon the need for the service with some agencies receiving more than 70% and others less. Discussion was held on the funding problems that have been experienced with the Food Bank. Budget Director, Cam McAbee, reported when deciding to allow the Food Bank to handle the USDA commodities distribution, the Board of County Commissioners at that time, decided that the reimbursement of $4,000 received by the County for the commodities distribution should go to the Food Bank instead of being returned to the County. Discussion was held on Mother Hubbard's Cupboard. Budget Director, Cam McAbee, reported the original purpose of this agency was to establish one place in the County to feed hungry people on an emergency basis. Presently, Mother Hubbard's Cupboard is open three afternoons a week for two hours with a reduction in the number of clients being served. This agency is not meeting the needs of the clients, and the churches have begun to stock their own pantries because Mother Hubbard's Cupboard is not opened on a daily basis. commissioner Sisson inquired as to what will happen if the Food Bank closes? Budget Director McAbee reported a large percentage of the food distributed by the Food Bank is snacks. Manufacturers receive a tax deduction for donating items; therefore, items that move slowly are donated, such as creme rinse, shampoos, drain openers, etc. The Soup Kitchen will miss the Food Bank because food can be purchased cheaper. Hopefully, another agency can be found to distribute the USDA commodities program with the $15,000 funding allocation. It was concluded that the Department of Social Services cannot assume this responsibility. Chairman Greer reported on the Food Bank passing out slips to all persons receiving food last week informing them that due to a lack of funding from New Hanover County, the Food Bank would be closed. Each person was urged to call the Commissioners and register a complaint. Chairman Greer expressed concern for this non-factual information being disbursed to the general public since the Food Bank is not a County, State, or Federal program. This is a local group who became affiliated with the Food Bank of North Carolina and assumed the responsibilities of this food program. The County contracted with the Food Bank to perform distribution of USDA commodities, which was formerly performed by the Department of Social Services. It is most unfair for the County Commissioners to receive criticism for the funding shortage of this program. Consensus: After further discussion, it was the consensus of the Board to include $15,000 in the FY 1993-94 Budget to negotiate with an agency to distribute USDA commodities. commissioner Sisson suggested increasing the tax rate to 3 cents or 2.75 cents to satisfy the needs of the human services programs. This would avoid having to pick and select which agencies to fund or cut. After discussion, it was agreed that the tax rate should not be increased more than 2.5 cents. ~ / I I MINUTES OF BUDGET WORK SESSION, MAY 11, 1993 PAGE 473 Discussion on Services Rendered by the Council of Governments Commissioner sisson expressed concern for the quality of services being rendered by the Council of Governments (COG). Problems were experienced with submittal of the County's Human Services Transportation Development Plan because of a delay in surveys, which were three months late. Fortunately, the Department of Transportation did allow the plan to be submitted without penalty or a loss of funding. The Commissioners were urged to inform the Council of Governments about the quality of services being rendered and very clearly send the message that in order to continue to receive funding, these services must improve. () Deputy County Manager, Mary Gornto, reported that COG is the lead agency for the Department of Aging with all funds received for the aging being required to go through this agency. There are two counties working with the state to allow aging funds to be forwarded directly to counties instead of having to go through the Council of Governments. No decision has been rendered as of this date. County Manager O'Neal reported he will be glad to discuss this matter with the Director of the Council of Governments. After further discussion of the Council of Governments being more beneficial to small and rural counties than to urban counties, the County Manager was requested to prepare a report on the duties and functions of the Cape Fear Council of Governments. Discussion of New Pay and classification Plan Discussion was held on the 5% merit increment for County employees. County Manager 0' Neal commented on the new pay plan and reported the plan is based upon performance. There will be no future cost-of-living increases. Future market adjustments to the pay plan will require a standard level of performance by the employee before receiving an increase. Once the plan is implemented and department heads become accustom to the new rating system, the plan will provide a great deal more flexibility, award for performance only, and save money in the future. () Discussion was held on the ability of an employee to receive a 0% to 10% merit increase. Chairman Greer expressed concern for any employees being eligible to receive a 10% merit increase and stated in, his opinion, industry is not providing increments of this size. He reported on being in favor of a merit increase for employees, but emphasized the fact that the County's payroll is $2.5 million more than two years ago; therefore, a 10% increase is not acceptable. commissioner Barone inquired as to whether the Board should place a cap on the percentage of increase? Director Mallette reported a above standard; therefore, very requested, and if so, they will Department of Human Resources. majority of employees are not few 10% increases will be be closely monitored by the Deputy County Manager Gornto reported only 5% will be budgeted for the total salaries of each department; therefore, if one employee in a department receives 10%, another employee will not receive an increase. It will be up to each department head to evaluate and award employees according to their performance, which will result in more accurate and fair evaluations. () Consensus: After a lengthy discussion, it was the consensus of the Board to include the 5% merit increase as proposed and very closely monitor 10% increases with a report being forwarded to the commissioners on the actual cost to the County for the 5% merit increase during FY 1993-94. l ~ MINUTES OF BUDGET WORK SESSION, MAY 11, 1993 PAGE 474 . Discussion of Rent Being Received for the Rankin Terrace Health Clinic Chairman Greer reported on funds being received by the Health Department for payment of rent for the Rankin Terrace Health Clinic, which now serves as an interim building for the Community Health Center. Concern was expressed for the County being asked at a later date to purchase a site for construction of this facility with the funds that have been received for rent. At the present time, the Health Department is not earmarking these funds for that purpose. Budget Director McAbee reported when the Community Health Center is operational, a decision will have to be made by the Board of County Commissioners as to whether the County will continue to fund the Health Department's current expenses? commissioner sisson suggested that any action taken on the purchase of a site should be a joint venture between the City and County since a large number of the medically underserved persons live within the city Limits. Also, he reported N. C. Senator Tom Wright serves on the Board of Directors of the Community Health Center and is committed to seeing that this facility receives state funding. Discussion was held on land acquisition. Vice-Chairman Mathews reported the Community Health Center Board of Directors is in the process of locating a site and since the new Executive Director has been hired, this process should move more quickly. . Discussion of Funding for Southeastern Center Commissioner sisson reported on the difficult budgetary constraints for Pender County and the lack of funds that may be received by the Southeastern Center. After further discussion, it was the consensus of the Board to authorize the Chairman to write a letter to the Southeastern Center explaining the need for all counties to pay the same per capita amount of the Southeastern Center's budget. Acceptance of Reducing Cape Fear Community College Funding Request Commissioner Sisson inquired as to why additional funds in the amount of $100,000 are needed for Cape Fear Community College? Budget Director McAbee reported $85,000 of the $100,000 has been requested to install a fire alarm system. Consensus: After further discussion, it was the consensus of the Board to budget an increase of only $50,000 to Cape Fear Community College instead of the $100,000 requested. Approval of New Positions Chairman Greer expressed concern for an additional Zoning Enforcement Officer position being requested by the Inspections Department and recommended elimination of this position. . commissioner Sisson commented on the citizens of the County being in favor of the Billboard and Sign Ordinance and urged the Board to approve the Zoning Enforcement Officer position in order to deal with non-conforming billboards and monitor signs. County Manager O'Neal reported on the need for an additional Zoning Enforcement Officer, not only for enforcement of the Billboard and Sign Ordinance but for enforcement of the Zoning Ordinance throughout the entire County. Vote: After further discussion, the following Commissioners were opposed to adding a new Zoning Enforcement Officer position: ~ ~ I ;' I I I MINUTES OF BUDGET WORK SESSION, MAY 11, 1993 PAGE 475 commissioner Barone Commissioner Caster Chairman Greer commissioner Barone commented on the Tax Mapper I position and inquired as to whether this position is necessary at this time? County Manager O'Neal reported on the large investment by the County for this program and stated in order to continue implementation of the MAPS Program, the position is needed. Finance Director Atkinson reported on a long-term basis, the County will be glad the MAPS program was implemented; however, on a short-term basis, it is difficult to fund the program without seeing the benefits that will be realized, particularly for the Tax Department. () Commissioner Barone inquired as to whether the Board is going to include an Assistant County Attorney position in the FY 1993-94 Budget as requested by the County Attorney. After discussion, it was agreed that an additional Assistant County Attorney position is needed due to the increased workload in the Legal Department. Consensus: After further discussion, it was the consensus of the Board to approve the following new positions in the FY 1993-94 Budget: Assistant County Attorney position. Tax Mapper I position for implementation of Mapping Program. Half-time Public Health Nurse I position in the Child Health Services Coordination Program. position to be funded by grant funds. n Public Health Educator I position for Project ASSIST. position to be funded by grant funds. Two positions for the Support Enforcement Program at the Department of Social Services to assist with the collection of child support. Accounting Technician III position to assist with processing payments to the private sector day care providers for DSS clients. Groundskeeper position at the Parks Department Tradesworker I position at the Parks Department. Discussion of capital Projects County Manager O'Neal reported two quarterly payments for the Animal Control Facility and purchase of a radio tower have been included in the proposed FY 1993-94 Budget as follows: \ I II II 'I ! Animal Control Tower Radio Tower $80,000 $28,000 Consensus: After a lengthy discussion on the need to purchase a radio tower during FY 1993-94, it was the consensus of the Board to eliminate the purchase of a radio tower during the next budget year. () Discussion of Funding Requests for Human Services and cultural , Recreational outside Agencies Discussion was held on the funding recommendations by the Human Services Allocation Advisory Committee for human services and cultural and recreational outside agencies. \ l ,-'. . . .~ ""'lIIIl M~NUTES OF BUDGET WORK SESSION, MAY 11, 1993 PAGE 476 Chairman Greer expressed appreciation for the time and effort given by the Human Services Allocation Advisory Committee in the review and preparation of funding recommendations for outside agencies; however, too often the Commissioners do not follow the recommendations of this committee. It is unfair to ask volunteers to spend hours of time reviewing and preparing budget recommendations that are not accepted; therefore, should this Committee be continued? County Manager O'Neal reported the Human Services Allocation Advisory Committee and members of staff spend months reviewing outside agency budget requests. Dissolving this Committee would save a tremendous amount of time for staff; however, the Committee has performed an outstanding job in recommending funding requests. After further discussion, it was generally agreed that this matter should be discussed in the Work Sessions to be held in late August or September for the purpose of establishing priorities and direction for preparation of the FY 1994-95 Budget. commissioner Sisson, again, recommended increasing the tax rate to 2.75 cents in order to fully fund the human services outside agencies. Vote: After a lengthy discussion, it was the consensus of the Board to accept the 90% funding recommendations presented by the Human Services Allocation Advisory Board for the Human Services outside agencies with the exception of funding for the following agencies: Agency Recommended Funding Request Elderhaus, Inc. Community Penalties Food Bank - Commodities Distribution Veterans Council $58,000 $12,347 $15,000 $20,000 Discussion was held on funding for the Cultural & Recreational outside agencies. Chairman Greer recommended decreasing the current year funding request by 10% and eliminating the $10,000 line item marked "others". Consensus: After discussion, decrease the current year Recreational outside agencies item. it was the consensus of the Board to funding request for Cultural & by 10% and eliminate the $10,000 line Discussion of Economic & Physical Development Outside Agency Funding Requests Commissioner Barone commented on the importance of DARE's contribution to the County's tax base by encouraging rehabilitation of buildings, houses, and new businesses to the downtown area and suggested this agency be funded at least $20,000. Vice-Chairman Mathews inquired as to whether the City funds DARE? Budget Director McAbee reported the City of Wilmington approved a funding allocation of $39,000 for FY 1992-93. Commissioner Caster agreed with the $20,000 funding appropriation for DARE, but inquired as to whether this type of funding will be forever or should these outside agencies be told they are going to be reduced on a gradual basis? A lengthy discussion was held on the former Board deciding to reduce these agencies by 20% each year until funding is phased out; however, the proposed action was never actually adopted or implemented. / I ~ , I ,MINUTES OF BUDGET WORK SESSION, MAY 11, 1993 PAGE 477 Chairman Greer commented on funding to the beach communities for lifeguards and recommended that funding to the beaches remain at the same level of funding as last year. Consensus: It was the consensus of the Board to accept the recommended funding requests for the Economic & Physical Development outside agencies with the following exceptions: (1) funding for the beach communities is to remain at the same level funded last year; and (2) a $20,000 funding appropriation for DARE is to be included in the budget for FY 1993-94. () SCHEDULING OF PUBLIC HEARING FOR RECOMMENDED FY 1993-94 BUDGET County Manager 0' Neal reported the changes recommended tonight will be incorporated into the recommended budget, and he requested the Board to select a date to hold a Public Hearing on the proposed budget. Consensus: After discussion of the need to hold a Public Hearing separately from a regular meeting, it was the consensus of the Board to schedule a Public Hearing on May 24, 1993, at 8:00 P.M. with a Budget Work Session preceding the Public Hearing at 7:00 P.M. to hear budget presentations from the Department of Social Services; New Hanover County Board of Health; Sheriff's Department; Southeastern Center; Cape Fear Community College; and New Hanover County Schools. The meeting will be held in the Assembly Room of the New Hanover County Courthouse and presentations for the budget requests are to be limited to ten minutes and remarks received during the Public Hearing are to be limited to three minutes. ADJOURNMENT Chairman Greer adjourned the meeting at 11:30 P.M. Sincerely, .~ rY2A-"'~ /~ '---I:~'i; F. Harrell Clerk to the Board n r'\ \ /' l