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1991-06-06 Budget Hearings MINUTES OF BUDGET HEARINGS, JUNE 6, 1991 1,.1 -.., 51q 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. . 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 . 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 . 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 -0- $ 4,000 $ 8,500 $ -0- $ 40,000 -0- -0- -0- $ 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. I j ~20 -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 () 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 () 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. () 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. ~ ../,;.. i~' j i ~' ::{ . ~ MINUTES OF BUDGET HEARINGS, JUNE 6, 1991 5'LI lw.,i;. ~ . 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: . 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. . 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. ~22. I I . I ~ . .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. n "'--~ 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. o 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 o 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- ~ MINUTES OF BUDGET HEARINGS, JUNE 6, 1991 523" 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. . 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. . 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. . 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. ,~ ,/ / 524" .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 o 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. () 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: o , 1 i' I I I [ I I \ ! ! I ~ 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. 'I!;i" . -., MINUTES OF BUDGET HEARINGS, JUNE 6, 1991 . 525<' (} ~~, if' 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. . 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: . 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. . 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. I I j 02~ I ( ~ 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. () 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. () 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 () 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. . . . ~ If .: '9.), .., , ~. " l ~' .< ~~, ft' MINUTES OF BUDGET HEARINGS, JUNE 6, 1991 527 'l\' .~, 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. , rWecVY~' '-....../L~ F. Harrell Clerk to the Board ~