1991-06-06 Budget Hearings
MINUTES OF BUDGET HEARINGS, JUNE 6, 1991
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ASSEMBLY
The New Hanover County Board of Commissioners continued
Budget Hearings on Thursday, June 6, 1991, at 9:00 A.M. in the
Assembly Room of the New Hanover County Courthouse, 24 North
Third street, Wilmington, North Carolina.
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Members present were: Commissioners Jonathan Barfield, Sr.;
Robert G. Greer; William H. Sutton, Vice-Chairman E. L. Mathews,
Jr.; Chairman Fred Retchin, County Manager, Allen O'Neal; and
Clerk to the Board, Lucie F. Harrell.
Chairman Retchin called the meeting to order.
APPROVAL OF BUDGET REQUESTS FOR OUTSIDE AGENCIES AS RECOMMENDED
BY THE COUNTY MANAGER
Consensus: It was the consensus of the Board to approve the
following Budget Requests as recommended by the County Manager
for outside agencies:
Human Services/Outside Aqencies
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Domestic Violence Shelter
Lower Cape Fear Hospic
Elderhaus
Sickle Cell
Pleasure Island Senior Center
united Cerebral Palsy
Cape Fear Substance Abuse
Community Penalties
Child Advocacy Commission
After School Group (Taylor Homes)
Big Buddy (Family Services)
Wilmington Police Dept. (Gym prog.)
Sencland Alumni Assoc., Inc.
Cape Fear Gospel Rescue Mission
Rankin Community Enrichment Prog.
Rankin Park
Food Bank of Coastal Carolina
Salvation Army
Wil/New Hanover Comm. Dev. Corp.
Tileston
Forestry Service
Soil & Water Conservation
Port, waterway & Beach Commission
Cape Fear Council of Governments
Committee of 100
Local Military Units
Highway 17
Convention & Visitors Bureau
Wrightsville Beach
Coast Line & Conventidn Center
Airport Operations
Kure Beach
Carolina Beach
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Requested
FY 91-92
$30,000
$18,250
$40,000
$ 7,000
$ 4,000
$ 9,500
$ 21,250
$ 12,880
$ 27,000
$ 13,585
$ 15,000
$ 13,142
$ 53,430
$ 10,000
$ 8,500
$ 75,000
$ 55,000
$ 25,000
$207,305
$ 45,000
$ 55,615
$ 8,600
$ 1,500
$ 20,300
$ 60,000
$ 2,000
$ 1,000
$250,000
$ 74,575
$ 36,250
$694,000
$ 20,690
$ 61,151
Approved
FY 91-92
$ 30,000
$ 15,000
$ 40,000
$ 7,000
$ 4,000
$ 9,500
$ 21,250
$ 12,880
$ 20,000
$ 10,270
$ 3,990
$ 12,791
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$ 4,000
$ 8,500
$ -0-
$ 40,000
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$ 55,615
$ 8,100
$ 1,500
$ 20,300
$ 40,000
$ 2,000
$ 1,000
$250,000
$ 74,575
$ 36,250
$694,000
$ 20,690
$ 61,151
APPROVAL OF ADDITIONAL FUNDING FOR THE SOUTHEASTERN CENTER FOR
MENTAL HEALTH, DEVELOPMENTAL DISABILITIES & SUBSTANCE ABUSE
SERVICES
commissioner Barfield stated as a member of the Southeastern
Center Board of Directors, the funds requested are needed and
recommended funding the full budget request of $793,255 instead
of the $725,604 as recommended by the County Manager.
Commissioner Greer and Vice-Chairman Mathews expressed
concern for increasing this budget request since the County
Manager's recommended budget represents a sizeable increase over
last year's budget.
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-MINUTES OF BUDGET HEARINGS, JUNE 6, 1991
Motion: After further discussion, Chairman Retchin MOVED,
SECONDED by Commissioner Barfield to approve additional funding
in the amount of $67,651 to the Southeastern Center. Upon yote,
the MOTION CARRIED AS FOLLOWS:
voting Aye: Commissioner Barfield
Commissioner Sutton
Chairman Retchin
Voting Nay: Commissioner Greer
Vice-Chairman Mathews
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APPROVAL OF ADDITIONAL FUNDING FOR THE CAPE FEAR LITERACY COUNCIL
Motion: After discussion of the importance to teach adults to
read, Commissioner Sutton MOVED, SECONDED by Chairman Retchin to
approve an additional $4,000 to the budget request for the Cape
Fear Literacy Council. Upon vote, the MOTION CARRIED
UNANIMOUSLY.
APPROVAL OF ADDITIONAL FUNDING TO KEYS
Commissioner Greer and Commissioner Sutton expressed concern
for the increase in the budget request over last year's request
and stated they were opposed to the $22,200 increase.
Motion: After discussion of this being the only program of this
type for training impaired or handicapped persons to become
functioning employees, and the one-time need for the purchase of
equipment to continue to assist with the recycling programs,
Chairman Retchin MOVED, SECONDED by Vice-Chairman Mathews to
approve the budget request in the amount of $32,200 as
recommended by the County Manager. Upon vote, the MOTION CARRIED
AS FOLLOWS:
voting Aye: Commissioner Barfield
Vice-Chairman Mathews
Chairman Retchin
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voting Nay: Commissioner Greer
commissioner Sutton
DENIAL OF FUNDING FOR YWCA DAY CARE PROGRAM
Consensus: After discussion of day care programs through the
Department of Social Services, it was the consensus of the Board
to deny the funding request presented by the YWCA.
DISCUSSION OF FORESTRY SERVICE
Commissioner sutton commented on this service and inquired
as to whether this budget could become a part of the Fire Service
District Budget.
commissioner Barfield stated he would be glad to discuss
this matter with the Board of Fire Commissioners; however, he
would not recommend a change until the matter has been thoroughly
reviewed and discussed with this group.
APPROVAL OF ADDITIONAL FUNDING FOR DARE, INC.
Motion: After discussion of the importance of the investment in
the downtown area, commissioner Sutton MOVED, SECONDED by
commissioner Barfield to approve additional funding in the amount
of $4,000 for DARE, Inc. Upon vote, the MOTION CARRIED
UNANIMOUSLY.
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APPROVAL OF ADDITIONAL FUNDING FOR THE NEW HANOVER COUNTY KEEP
AMERICA BEAUTIFUL PROGRAM
commissioner sutton inquired as to the phasing out of this
program and it becoming a county agency. Commissioner Barfield
stated the program should become a part of the County's recycling
program.
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MINUTES OF BUDGET HEARINGS, JUNE 6, 1991
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Consensus: After discussion, it was the consensus of the Board
to instruct the County Manager to inform the Keep America
Beautiful Program that this is the last year the program will be
funded by the County without this program becoming a county
agency.
Motion: After discussion of this program actively promoting
recycling and clean up programs, Chairman Retchin MOVED, SECONDED
by Vice-Chairman Mathews to approve the entire funding request in
the amount of $30,630 instead of the County Manager's recommended
budget of $29,900. Upon vote, the MOTION CARRIED AS FOLLOWS:
Voting Aye: Commissioner Barfield
Commissioner Greer
Vice-Chairman Mathews
Chairman Retchin
Voting Nay: Commissioner Sutton
DENIAL OF FUNDING FOR MARINE EXPO AND APPROVAL OF ADDITIONAL
FUNDING FOR THE MARINE CRESCENT
Chairman Retchin commented on funding in the amount of
$14,300 for Marine Expo and recommended that this request be
denied and allocate additional funding to the Marine Crescent
where he feels the funds will be better utilized.
Motion: After further discussion, Chairman Retchin MOVED,
SECONDED by Commissioner Barfield to deny the funding request for
Marine Expo and approve additional funding in the amount of
$10,000 to the Marine Crescent. Upon vote, the MOTION DID NOT
CARRY AS FOLLOWS:
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Voting Aye: Commissioner Barfield
Chairman Retchin
Voting Nay: Commissioner Greer
commissioner Sutton
Vice-Chairman Mathews
Motion: After further discussion, Commissioner Sutton MOVED,
SECONDED by Commissioner Greer to deny the funding request for
Marine Expo and to approve additional funding in the amount of
$5,000 to the Marine Crescent. Upon vote, the MOTION CARRIED AS
FOLLOWS:
Voting Aye: Commissioner Barfield
Commissioner Greer
Commissioner Sutton
Vice-Chairman Mathews
Voting Nay: Chairman Retchin
DISCUSSION OF A FOOD AND BEVERAGE TAX
Discussion was held on the possibility of implementing a
food and beverage tax in the future. Commissioner Sutton stated
the opposition from restaurant owners was due to the fact that
the tax did not provide them with a direct benefit.
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Consensus: After further discussion, it was the consensus of the
Board to place this item on the pending action list for further
study and review.
BREAK
Chairman Retchin recessed the meeting from 10: 10 0' clock
A.M. to 10:59 o'clock A.M.
DISCUSSION OF FY 1991-92 PROPOSED BUDGET
Commissioner Sutton requested the County Manager to comment
on the $700,000 cuts made in the present fiscal year to offset
the projected shortfall of revenue from the State for inventory
reimbursements.
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.MINUTES OF BUDGET HEARINGS, JUNE 6, 1991
County Manager O'Neal stated a hiring freeze was
implemented, a training and travel freeze was implemented; a
number of purchases were delayed; and a change in the Library
hours was proposed.
Commissioner Sutton inquired as to the depletion of the fund
balance and contingency account at the end of the current fiscal
year. Finance Director Atkinson stated the fund balance has
decreased $1,000,000 and the balance of the contingency account
is now approximately $15,000. Emphasis was placed on adopting a
budget that will be balanced without using the appropriated fund
balance.
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commissioner Sutton inquired as to the impact on the tax
rate for replacing the fund balance. Finance Director Atkinson
stated the tax rate could be reduced by one cent if no funds are
appropriated for restoring the fund balance.
commissioner Greer stated according to his figures, last
year the County appropriated $2,250,000 out of the fund balance
and spent $3,361,000; however, $682,000 was rolled over with a
negative figure impacting the fund balance in the amount of
$2,678,124. If $2,678,124 is divided by the current tax rate, it
will cost the County 3.8 cents to remain even with another 1. 2
cents on the tax rate to replenish the fund balance by $700,000.
County Manager O'Neal stated with the reductions identified
from retirement, the Downtown Park, and the changes in the
outside agencies, the budget has already been reduced by
$779,696.
commissioner Sutton inquired as to how much the proposed tax
rate can be reduced by deleting the 4% cost of living increase,
closing or receiving adequate funds from the state for operation
of the Juvenile Detention Center, and funds saved by the
reduction in the retirement rate. County Manager O'Neal stated
these items will reduce the tax rate by 2.6 cents.
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commissioner Greer recommended going through the budget line
item by line item in order to cut the proposed budget and reduce
the tax rate.
Further discussion was held on the preparation of the
proposed budget by the Budget Team which has analyzed the line
items in each budget presented by the departments. County
Manager O'Neal assured the Board that each department budget had
been reduced as much as possible without interfering with the
quality of service being rendered.
APPROVAL OF CULTURAL & RECREATIONAL OUTSIDE AGENCY BUDGET
REQUESTS AS RECOMMENDED BY THE COUNTY MANAGER
Motion: After discussion of the budget requests recommended by
the County Manager, Chairman Retchin MOVED, SECONDED by
Commissioner Barfield to approve the following budget requests as
recommended by the County Manager for the Cultural & Recreational
outside agencies. Upon vote, the MOTION CARRIED UNANIMOUSLY.
CULTURAL & RECREATIONAL OUTSIDE AGENCIES
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Requested
FY 91-92
Approved
FY 91-92
Lower Cape Fear Council of Art
st. John's Art Gallery
Azalea Festival
Friends of Public Radio
Riverfest
Wilmington Railroad Museum
Battleship Commission
$36,000
$20,000
$ 3,500
$10,500
$ 2,000
$ 8,000
$ 3,000
$32,000
$16,500
$ 3,500
$ 9,000
$ 2,000
$ 2,500
$ -0-
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MINUTES OF BUDGET HEARINGS, JUNE 6, 1991
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ACTION DEFERRED ON
Commissioner
additional funds
shortfall. County
SCHOOL BUDGET REQUEST
Barf ield inquired as to the amount of
recommended to the school for the state
Manager O'Neal stated approximately $563,655.
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Further discussion was held on the items cut by the state
such as energy, maintenance, assistant superintendents, teachers
aides, etc. Commissioner Sutton strongly opposed the concept of
local governments having to assume the funding shortfalls from
state and federal budget cuts, particularly with reference to
mandated programs.
After further discussion, Commissioner Sutton stated he is
not ready to vote on the budget request submitted by the school
system and recommended delaying action at this time.
No action was taken.
APPROVAL OF COUNTY MANAGER' S BUDGET RECOMMENDATION FOR THE
DEPARTMENT OF SOCIAL SERVICES
Commissioner Sutton inquired as to the need for a $363,000
computer program for the Department of Social Services. County
Manager O'Neal stated the installation of an automated case
management system will be cost-effective and save the DSS in-take
staff hours of time in processing applications.
Commissioner Greer expressed concern for the increase of the
budget and stated all budget requests should be cut by a certain
percentage in order to be fair to each agency.
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Motion: After further discussion, Vice-Chairman Mathews MOVED,
SECONDED by Chairman Retchin to approve the County Manager budget
request in the amount of $7,378,817 (county dollars) for the
Department of Social Services. Upon vote, the MOTION CARRIED AS
FOLLOWS:
Voting Aye: Commissioner Barfield
Commissioner Sutton
Vice-Chairman Mathews
Chairman Retchin
Voting Nay: Commissioner Greer
APPROVAL OF ADDITIONAL FUNDS FOR THE SHERIFF' S DEPARTMENT
Budget Officer, Cam McAbee, commented on the request for
seven additional position by Sheriff McQueen and stated since
that request one position was not included, a patrol officer for
Laney High School. She stated the eight (8) positions, one van
and three used vehicles would require additional funding in the
amount of $230,989 which represents $195,364 for the new
positions and $35,625 for the van and additional vehicles.
commissioner Greer expressed opposition to adding the eight
positions at one time and recommended gradually phasing these
positions.
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Motion: Chairman Retchin commented on the need to protect the
public through crime control and MOVED, SECONDED by Commissioner
Barfield to approve additional funding of $230,989 as requested
by Sheriff McQueen. The floor was opened for discussion.
commissioner Greer reiterated, again, that the positions
should be phased in on a gradual basis, between FY 1991-92 and FY
1992-93.
After further discussion, Chairman Retchin amended the
motion to phase in the eight (8) new positions in 6-month
increments, four (4) positions to be added July 1, 1991, and four
positions being added January 1, 1992. The floor was opened for
discussion:
commissioner Sutton stressed the importance of allowing the
Sheriff, as an elected official, to determine how the funds are
to be expended.
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.MINUTES OF BUDGET HEARINGS, JUNE 6, 1991
County Manager 0' Neal stated phasing in the positions as
requested and purchasing the van and used vehicles would cost
$187,148.
Chairman Retchin called for a vote on the motion to approve
the additional funding in the amount of $187,148 with the phasing
in of positions as stated in the AMENDED MOTION and purchase of
the van and used vehicles. Upon vote, the MOTION CARRIED AS
FOLLOWS:
voting Aye: Commissioner Barfield
Commissioner Sutton
Vice-Chairman Mathews
Chairman Retchin
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voting Nay: Commissioner Greer
ACTION DEFERRED ON BUDGET REQUEST FOR CAPE FEAR COMMUNITY COLLEGE
Discussion was held on the general statutes governing
funding for Cape Fear community College.
commissioner Sutton stated he simply wants to understand
where cuts can be made in all presented budgets before making a
decision. He recommended deferral of action on the Cape Fear
Community College budget request at this time.
No action was taken.
APPROVAL OF COUNTY MANAGER'S RECOMMENDED BUDGET REQUEST FOR THE
NEW HANOVER COUNTY HEALTH DEPARTMENT
Motion: After discussion, Chairman Retchin MOVED, SECONDED by
Commissioner Greer to approve the County Manager's recommended
budget request in the amount of $3,406,603 (county dollars) for
the New Hanover County Health Department. Upon vote, the MOTION
CARRIED UNANIMOUSLY.
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DISCUSSION OF FUNDING FOR NON-MANDATED HUMAN SERVICE PROGRAMS
County Manager O'Neal commented on the request of the Board
for a list of non-mandated programs and stated they are as
follows:
Department of Aging
Human Relations
Human Services Transportation
Juvenile Services
County's Cost
$351,019
$224,747
System $ 18,839
$426,975
APPROVAL OF COUNTY MANAGER'S RECOMMENDED BUDGET REQUEST FOR NEW
HANOVER COUNTY SCHOOLS
Motion: Chairman Retchin commented on the recommended budget for
the schools and MOVED, SECONDED by Vice-Chairman Mathews to
approve the County Manager's recommended budget of $17,161,016.
The floor was opened for discussion.
Commissioner Sutton inquired as to why this action is being
taken and not deferred at this point since he feels the motion is
premature and stated he cannot support the motion due to
procedure.
Chairman Retchin stated a decision needs to be made and
called for the vote. Upon vote, the MOTION CARRIED AS FOLLOWS:
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voting Aye: Commissioner Barfield
Vice-Chairman Mathews
Chairman Retchin
voting Nay: Commissioner Greer
commissioner Sutton
DISCUSSION OF PAY AND CLASSIFICATION PLAN
Commissioner Sutton requested Staff to prepare a cost figure
on implementation of the pay plan effective April 1, 1992.
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MINUTES OF BUDGET HEARINGS, JUNE 6, 1991
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County Manager O'Neal stated he would be glad to prepare those
figures.
Human Resources Director, Andre' Mallette, reviewed and
presented background information on the current and previous pay
plans. The new plan provides for 1% merit increases instead of
only 2 1/2%, 5%, or 7 1/2%, which allows for more flexibility in
giving merit increases and provides more ranges for longevity
employees.
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A lengthy discussion was held on the pay plan and the date
of implementation.
commissioner Greer stated due to the economic condition of
the country and the lack of state and federal funds, he feels
implementation of the pay plan should be delayed until the next
fiscal year.
Assistant County Manager, Dave Weaver, commented as an
advocate for the employees, and stated the County is fortunate to
have so many dedicated employees who really care about New
Hanover County and have been patient in waiting for a new plan to
resolve some of the inequities in the current plan. No
reclassifications of positions have been approved nor has a cost
of living raise been given for the past two years due to
development of a new pay plan. He stated if the new plan is not
adopted, the morale of County employees will be badly damaged.
Motion: Chairman Retchin stated he agreed with the Assistant
County Manager and MOVED, SECONDED by Commissioner Sutton to
adopt the new Pay and Classification Plan to become effective
April 1, 1992. Upon vote, the MOTION CARRIED AS FOLLOWS:
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Voting Aye: Commissioner Barfield
Commissioner Sutton
Vice-Chairman Mathews
Chairman Retchin
Voting Nay: Commissioner Greer
MEETING RECESSED FOR LUNCH
Chairman Retchin recessed the meeting for lunch at 12: 20
o'clock P.M. until 1:26 o'clock P.M.
MEETING RECESSED TO HOLD THE REGULAR MEETING OF THE 1991 NEW
HANOVER COUNTY BOARD OF EQUALIZATION & REVIEW
Chairman Retchin called for a motion to convene from Regular
Session to hold a meeting of the 1991 Board of Equalization and
Review and to continue the Regular Meeting after adjournment of
the Board of EqualizatIon and Review for further discussion of
the budget.
Motion: commissioner Barf ield MOVED, SECONDED by Commissioner
Greer to convene from Regular Session to hold a regular meeting
of the 1991 Board of Equalization and Review and to reconvene
back to Regular Session after the Board of Equalization and
Review to discuss the budget. Upon vote, the MOTION CARRIED
UNANIMOUSLY.
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Chairman Retchin recessed the meeting from at 1:25 o'clock
P.M. until 4:10 o'clock P.M.
Chairman Retchin reconvened to Regular Session at 4:11
o'clock P.M.
DISCUSSION OF BUDGET
Chairman Retchin inquired as to the desire of the Board to
cut the proposed tax rate from 61 cents to 58 cents through the
following process: (1) implement the Pay and Classification Plan
effective April 1, 1992; (2) delete the 4% cost of living plan;
and (3) reduce the $700,000 for rebuilding the fund balance to
$350,000.
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MINUTES OF BUDGET HEARINGS, JUNE 6, 1991
County Manager O'Neal stated the items listed represent a
reduction of 2.9 cents on the proposed tax rate and that staff
can cut back to 3 cents for a tax rate of 58 cents.
Discussion was held on the apprehension of employees at the
Juvenile Services Detention Center, and County Manager 0' Neal
recommended forwarding the appropriate message to the General
Assembly without removing the operation of the facility from the
budget due to the time invol ved in working out an arrangement
with the state.
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Vice-Chairman Mathews and Commissioner Greer expressed
concern for rushing into the Juvenile Services Center matter
without time to thoroughly approach the matter with the state.
Motion: After further discussion, Chairman Retchin MOVED,
SECONDED by Commissioner Barfield to direct the County Manager to
prepare a Budget Ordinance based-on a 58 cent tax rate utilizing
the following recommendations: (1) implementation of the new Pay
and Classification Plan effective April 1, 1992; (2) delete the
4% cost of living increase from the proposed budget; (3) pay the
increased medical insurance premiums for employees; (4) utilize
monies saved from the reduction of the retirement rate; (5)
delete $150,000 for the Downtown Park; (6) rebuild the fund
balance by $350,000 instead of $700,000 as submitted in the
proposed budget. The floor was opened for discussion.
A lengthy discussion was held on adding another penny to the
tax rate. County Manager O'Neal stated an additional penny to
the tax rate would accomplish the following items: (1) implement
the pay plan effective April 1, 1992; (2) pay 1/2 of the increase
of the Blue Cross Blue Shield medical premiums for employees; and
(3) provide for a 4% cost of living increase effective July 1,
1991.
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commissioner Barfield expressed concern for funding outside
agencies whose directors make more money than the County Manager
and recommended approving the 4% cost of living increase to
County employees. He withdrew his SECOND TO THE MOTION.
Chairman Retchin WITHDREW THE MOTION.
Substitute Motion: Commissioner Barfield MOVED, SECONDED by
Chairman Retchin to direct the County Manager to prepare a Budget
Ordinance based on a 59 cent tax rate utilizing the following
recommendations: (1) usage of the $696,777 saved by a reduction
in retirement rate; (2) delete $150,000 for the Downtown Park;
implement the Pay and Classification Plan effective April 1,
1992; (3) approve a 4% cost of living increase effective July 1,
1991, (4) authorize the county to pay one-half the cost of the
increased Blue Cross Blue Shield medical insurance premiums; and
(5) restore the fund balance by $350,000 instead of $700,000 as
recommended. Upon vote, the MOTION CARRIED AS FOLLOWS:
voting Aye: Commissioner Barfield
Vice-Chairman Mathews
Chairman Retchin
voting Nay: Commissioner Greer
commissioner sutton
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After further discussion, commissioner sutton requested his
vote to reflect voting in favor of the MOTION if Staff will
pledge to file a lawsuit against the State to rectify the
inequity of funding to the county for holding juveniles in the
Detention Center as well as any other mandated programs which
have been severely cut, such as the Southeastern Center.
Motion: After further discussion, Commissioner Sutton MOVED,
SECONDED by Chairman Retchin to file a lawsuit against the State
or some other suitable method for obtaining funds for
administration of state programs. Upon vote, the MOTION CARRIED
UNANIMOUSLY.
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MINUTES OF BUDGET HEARINGS, JUNE 6, 1991
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Let the record reflect that Commissioner Sutton voted IN
FAVOR OF THE MOTION to direct the County Manager to prepare a
Budget Ordinance based on a tax rate of 59 cents.
ADJOURNMENT
Motion: Commissioner Barfield MOVED, SECONDED by Vice-Chairman
Mathews to adjourn. Upon vote, the MOTION CARRIED UNANIMOUSLY.
Chairman Retchin adjourned the meeting at 4:58 o'clock P.M.
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'-....../L~ F. Harrell
Clerk to the Board
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