1992-03-09 Budget Work Session
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MINUTES OF BUDGET WORK SESSION, MARCH 9, 1992
PAGE 842
ASSEMBLY
The New Hanover County Board of Commissioners held a Budget
Work Session on Monday, March 9, 1992, at 1:00 P.M. in Room 501 of
the New Hanover County Administration Building, 320 Chestnut
Street, Wilmington, North Carolina.
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Members present were: Commissioners Jonathan Barfield, Sr.;
Fred Retchin; William H. Sutton; Vice-Chairman Robert G. Greer;
Chairman E. L. Mathews, Jr.; County Manager Allen O'Neal; County
Attorney, Robert W. Pope; and Clerk to the Board, Lucie F. Harrell.
Chairman Mathews called the Work Session to order.
DISCUSSION OF DEPARTMENTAL BUDGET REQUESTS
Budget Off icer , Cam McAbee, commented on budget requests
presented by department heads with a reduction of at least 10% and
discussed the following items:
-No new positions are included in the proposed FY 1992-93
Budget. However, in the Sher iff's Department, there are three
(3) positions that were formerly covered by a grant, which
will not be covered by grant funds in FY 1992-93.
-$500,000 has been included for a portion of the County's cost
related to the burn pit project.
-$500,000 has been included for capital projects although the
projects to be funded have not been identified. The capital
project requests were $5.3 million for projects that have not
been approved for this fiscal year.
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-A very preliminary estimate of the tax base would result in
a $1,438,125 or 3.5 % increase in ad valorem taxes at the same
tax and collection rate as in FY 1991-92. Sales tax is
estimated to rise $878,544 or 10.6% over the current budgeted
amount. Receipts for the current year are expected to exceed
the amount budgeted by $656,937.
-An amount of $322,536 is requested for installment debt for
a computer system replacement.
-The County's contribution for medical insurance is estimated
at the current level.
-No contribution is requested from the General Fund to the
Resource Recovery Fund.
-An amount of $350,000 is used to repay the general fund/fund
balance for the funds used to build the Airport Terminal.
-No merit funds are budgeted for County employees.
-A penny on the property tax equals $716,625.
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Discussion was held on departmental budget requests. County
Manager O'Neal stated the departments have been most cooperative in
presenting requests reduced at least 10% and in many cases more
than 10%. He complimented all department heads for the effort
shown in reducing operating expenses.
DISCUSSION OF SALARY PROJECTIONS
Budget Officer, Cam McAbee, presented the following facts
pertaining to salary projections for FY 1992-93:
-Actual increase in salaries from FY 1991-92 to FY 1992-93 is
$395,153. The actual cost of implementing the new Pay Plan is
$1,695,985; however with the elimination of 55 positions at a
savings of $1,517,217 and an additional cost of seven
positions added during FY 1991-92 in the amount of $216,385,
the salaries increased only by $395,153.
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MINUTES OF BUDGET WORK SESSION, MARCH 9, 1992
PAGE 843
A lengthy discussion was held on the implementation of the Pay
& Classification Plan. Commissioner Sutton commented on the fact
that the Board of Commissioners agreed to adopt the new Pay Plan
and stated he is very much in favor of paying employees their
worth; however, he also feels that employees should be pleased with
new salary ranges and produce at an expected or above expected
level.
DISCUSSION OF NON-COUNTY AGENCY FUNDING REQUESTS
A lengthy discussion was held on the fact that non-county
agencies should become self-sufficient. Further discussion was
held on the importance of analyzing whether outside agencies are
providing services to the citizens that are worth the amount of
funding allocated by the County.
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The following budget requests were discussed:
ECONOMIC & PHYSICAL DEVELOPMENT FY 91-92 FY 92-93
DARE $ 24,000 $21,600
Soil & Water Conservation $ 8,100 $ 7,290
Keep America Beautiful $ 30,630 $27,546
Port, Waterway & Beach Commission $ 1,500 $ 1,350
Cape Fear Council of Governments $ 20,300 $18,270
Marine Crescent $ 10,000 $ 9,000
Committee of 100 $ 40,000 $60,000
Marine Expo $ -0- -0-
Highway 17 $ 1,000 -0-
Local Military Units $ 2,000 $ 1,800
commissioner Sutton expressed concern for duplication of
services among the various agencies such as DARE and the Committee
of 100 who have the same goals, and recommended phasing out County
funding to some of these agencies with a 20% reduction in FY 1992-
93 and 20% thereafter until no County funds are allocated.
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commissioner Barfield reiterated the importance of knowing the
tax dollars brought into the community by these agencies before
making a decision to eliminate funding.
Motion: After a lengthy discussion, Commissioner Greer MOVED, to
accept the 10% reductions as presented for the Economic & Physical
Development agencies with the exception of "Keep America Beautiful"
which will become a part of the Environmental Management Department
effective July 1, 1992, and to amend the budget request of the
Committee of 100 from $60,000 to $45,000. The floor was opened for
discussion.
commissioner Retchin stated he would second the motion if
Vice-Chairman Greer would amend the MOTION to direct Staff to
analyze the Economic & Physical Development programs to be sure
that County dollars are worth the benef its rendered by these
agencies to the overall welfare of the County.
County Manager O'Neal also recommended encouraging the
Committee to 100 to market land near the Waste-to-Energy Facility
for companies who need to purchase steam.
Amended Motion: Chairman Mathews called for a vote on the amended
motion to accept the 10% reductions as moved by Vice-Chairman Greer
and SECONDED by Commissioner Retchin with the ,exception of "Keep
America Beautiful", which is to become a part of the Department of
Environmental Management effective July 1, 1992, and to reduce
funding for the "Committee of 100" from $60,000 to $45,000. Staff
was directed to thoroughly analyze these agencies during FY 1992-93
to ensure that County dollars are worth the services and benefits
provided by these agencies to the overall welfare of the County,
and the County Manager was authorized to encourage the Committee of
100 to market land near the Waste-to-Energy Facility to companies
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MINUTES OF BUDGET WORK SESSION, MARCH 9, 1992
PAGE 844
requiring the purchase of steam. Upon vote, the MOTION CARRIED AS
FOLLOWS:
Voting Aye: Commissioner Barfield
Commissioner Retchin
Vice-Chairman Greer
Chairman Mathews
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Voting Nay: Commissioner Sutton
commissioner Sutton stated, for the record, he could not
support this MOTION, since he strongly feels that many of the human
service agencies are in dire need of funds due to economic times
and, in his opinion, some of these agencies should become self-
sufficient with no County funding.
The following budget requests were presented and discussed:
Cultural & Recreational
FY 1991-92
FY 1992-93
Arts Council of the Lower Cape Fear
st. John's Museum of Art
Azalea Festival
Friends of Public Radio
Riverfest
Wilmington Railroad Museum
$32,000
$16,500
$ 3,500
$ 9,000
$ 2,000
$ 2,500
$28,800
$14,850
-0-
$ 8,100
$ 1,800
$ 2,250
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Motion: After a lengthy discussion, Vice-Chairman Greer MOVED,
SECONDED by Commissioner Retchin to accept the Cultural &
Recreational agencies with the 10% reductions as presented and to
direct Staff to thoroughly review these agencies 'during FY 1992-93
with preparation of funding recommendations for FY 1993-94 based
upon services rendered. Upon vote, the MOTION CARRIED AS FOLLOWS:
Voting Aye: Commissioner Barfield
Commissioner Retchin
Vice-Chairman Greer
Chairman Mathews
Voting Nay: Commissioner Sutton
commissioner Sutton stated, for the record, he cannot support
this motion. Public Radio has a budget of $180,000 and broadcasts
to five other counties with a second new transmitting tower in
Robeson County. Other counties do not provide funding. Also,
Commissioner Sutton stated he discussed this matter with Public
Radio Board Members, as well as with the fund raiser, Trish Snyder,
and they are conf ident of their ability to raise these funds
privately. When human service needs have increased with people in
need of food and money is available privately for Public Radio, he
cannot vote to support the motion as approved.
Commissioner Barfield expressed concern for the salaries paid
to directors of non-county agencies and stated many directors
recei ve more than the County Manager and Administrative Staff.
Emphasis was placed on the fact that if agencies can pay salaries
of this type, then they should become self-sufficient.
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BUDGET REQUESTS FOR OTHER OUTSIDE AGENCIES
Budget Director Cam McAbee presented the following budget
requests for other outside agencies:
OTHER OUTSIDE AGENCIES
FY 1991-92
FY 1992-93
Southeastern Center
District Attorney
Judges
Clerk of Court
Cape Fear community College
New Hanover County Schools
$ 793,255
$ 5,000
$ 5,500
$ 35,720
$ 953,191
$17,161,016
$ 713,930
$ 5,000
$ 10,000
$ 29,187
$ 1,124,439
$20,325,016
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MINUTES OF BUDGET WORK SESSION, MARCH 9, 1992 PAGE 84!?
Carolina Beach $ 61,151 $ 48,921
Kure Beach $ 20,690 $ 16,552
Wrightsville Beach $ 74,575 $ 59,660
Convention visitors Bureau $ 250,000 $ 257,950
Coast Line Convention Center Lease $ 30,000 $ 18,000
Airport Operations $ 694,000 $ 280,000
Non-Secured Detention (Fringe Benefits) $ 4,424 $ 4,424
Probation Monitoring Rent $ 44,064 $ 44,064
Guardian Ad Litem Rent $ 6,972 $ 7,236 ()
Guardian Ad Litem utilities $ 1,500 $ 1,575
Consensus: After discussion of each funding request, it was the
consensus of the Board to approve the requests with exception of
the following agencies:
-Reduce the District Attorney's funding request from $5,000 to
$4,000 since this is a State office, and the County funds will
be used for the purchase of furniture.
-Reduce the funding request submitted by the Judges from
$10,000 to $4,950 since only $5,500 was funded for FY 1991-92
and this figure would represent a 10% reduction.
-Defer action on funding for Cape Fear Community College since
the actual budget request will not be submitted until April
16,1992.
-Defer action on funding for New Hanover County Schools since
the actual budget request will not be submitted until April
16,1992.
-Defer action on funding requests from the beach communities
until after hearing from the Mayor of wrightsville Beach with
reference to the recent decision to decrease County funding by
20% for FY 1992-93 and 20% each year thereafter until no
County funds are provided.
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vice-Chairman Greer commented on the amount of revenue
generated from the Room Occupancy Tax and recommended amending the
local enabling act to allow the County to utilize some of these
funds for other needs pertaining to tourism, such as the Coast Line
Convention Center, which is in desperate need of funds.
commissioner Retchin agreed and stated, however, this action
is not appropriate in the Short Session of the General Assembly,
but perhaps during the Long Session the Board should seek to amend
this act along with seeking a local enabling act to charge a Food
and Beverage Tax.
Discussion was held on the possibility of using office space
in the new Senior Center for non-county agencies for whom the
County is now paying rent. Deputy County Manager, Mary Gornto,
stated the office space in the Senior Center is a very small
portion of the facility; therefore, no unused space is available.
DISCUSSION OF FUNDING RECOMMENDATIONS BY THE HUMAN SERVICES
ALLOCATION ADVISORY COMMITTEE
Budget Director McAbee presented funding recommendations for
general fund organizations and the Community Based Alternatives
organizations. The Human Services Allocation Advisory committee
recommended three funding options.at a 50%, 70%, and 90% funding
level of the total FY 1991-92 adopted budget for non-county human
services agencies. After review, the Committee felt that the 90%
level would be the most appropriate option for the FY 1992-93
budget. There are increases and decreases from last year's funding
levels for some agencies; however, these fluctuations are based on
reviews performed by the Human Services Allocations Committee and
the need for that service in the community. Staff recommends
approval of the CBA funding recommendations to be presented at the
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MINUTES OF BUDGET WORK SE~SION, MARCH 9, 1992
PAGE, 846
meeting of March 16, 1992, and approval of the 90% funding level as
presented today.
Discussion was held on no funding recommended for the Yahweh
Center. Budget Director McAbee stated the Yahweh Center has
received the following funQs:
fY 1988-89
FY 1989-90
FY 1990-91
$15,000
$10,000
$20,900
Further discussion was held on the fact that the first,funding
request in 1988-89 was a one-time fu~ding request to assist with
start-up costs for the home.
Further discussion was held on the budget" for New Hanover
County Schools. Commissioner Sutton commented on energy costs and
requested the County M~nager to discuss this matter with. the
schools to see if this expense can be reduced.
Chairman Mathews, on behalf of the Board, expressed
appreciation to the members of Staff for an excellent presentation.
DISCUSSION OF PROPOSED SITE FOR LOCATION OF AIR'CARGO COMPLEX
Chairman Mathews reported on attending a meeting in
Kenansville with reference to the location of the proposed Air
Cargo Complex, known as the N. C. Global TransPark, on a site 10
miles southeast of Kenansville and 6 miles east of Wallace in
Duplin County. An extensive study has been performed with the site
appearing to be an ideal location. Duplin County has requested
support of this site by the New Hanover County Board of
Commissioners; however, a Letter of Intent has been submitted by
New Hanover International'Airport for obtaining the facility if an
existing airport is considered and the project is scaled down.
Chairman Mathews requested direction from the Board.
Motion: After discussion of the need for additional information on
the project and sites being considered, it was the consensus of the
Board to discuss this matter at the Regular Meeting of March 16,
1992, with representatives from Duplin County, the Committee of
100, Chamber of Commerce, City of Wilmington, and Airport Authority
before deciding on which site to support.
ADJOURNMENT
Motion: Commissioner Retchin MOVED, SECONDED by Commissioner
Barfield to adjourn. Upon vote, the MOTION CARRIED UNANIMOUSLY.
Chairman Mathews adjourned the meeting at 4:40 P.M.
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Lucie F. Harrell
Clerk to the Board
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