1989-11-13 Budget Work Session
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MINUTES OF BUDGET WORK SESSION, NOVEMBER 13, 1989
ASSEMBLY
The New Hanover County Board of Commissioners held a Budget
Work Session on Monday, November 13, 1989, at 8:30 o'clock A.M.
in the 5th Floor Conference Room of the New Hanover County
Administration Building, 320 Chestnut Street, Wilmington, North
Carolina.
Chairman Retchin called the meeting to order.
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ADOPTION OF PROCLAMATION DESIGNATING NOVEMBER 16, 1989, AS "THE
GREAT AMERICAN SMOKEOUT DAY" IN NEW HANOVER COUNTY
Chairman Retchin introduced Mr. Claude Allison, Public
Education Chairman of the New Hanover County American Cancer
Society, stating he has requested adoption of a proclamation
designating Thursday, November 16, 1989, as the "Great American
Smoke out Day" in New Hanover County.
Mr. Allison emphasized the importance of educating our
children about health risks and the cost involved with smoking.
He commented on a pilot program performed at Roland Grise Middle
School to ascertain what factor would discourage young people
from smoking. After an analysis of data collected, it was the
conclusion that the cost of smoking was the factor to use in
discouraging students from smoking. Programs have been designed
emphasizing this point and will be presented in schools
throughout the County during the current year.
Consensus: After further discussion, it was the consensus of the
Board to adopt the proclamation designating November 16, 1989, as
"The Great American Smokeout Day" in New Hanover County.
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A copy of the proclamation is contained in Exhibit Book
XVII, Page 37.
BUDGET WORK SESSION
Acting County Manager Gornto expressed appreciation to the
Commissioners for scheduling the informal Budget Work Session
stating the purpose of the meeting is to review where we are and
where we are going.
The following items were presented and discussed:
FUND BALANCE REVIEW: Director of Finance, Andrew J. Atkinson,
stated the County is in excellent financial condition with a fund
balance in the amount of $22,580,838 as of June 30, 1989. He
explained the definition of the fund balance and emphasized the
importance of maintaining a strong fund balance in order to be
fiscally responsible with availability of funds to meet
anticipated and unanticipated expenditures and maintain a high
bond rating. The following Fund Balance Review was presented:
Fund Balance as of June 30, 1989:
$22,590,838
Less:
Restricted by General Statutes
Designated in Budget - Current Year
Portion Needed for Airport Terminal
$ 7,145,639
2,116,341
4,336,830
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Recommended Minimum Fund Balance
as per Local Government Commission (8% of this
year's budget) $ 5,384,909
AMOUNT OVER MINIMUM REQUIREMENTS
$ 3,607,119
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Average Expenditures Per Month
Unreserved/Undesignated Fund Balance
$ 5,609,280
$ 13,810,818
Number of Months Expenditures in Unreserved/
Undesignated Fund Balance
2.46
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720 MINUTES OF BUDGET WORK SESSION, NOVEMBER 13, 1989 (CONTINUED)
Percentage of Unreserved/Undesignated
Fund Balance to Total Budget
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20.52%
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$ 1,643,675
$ 470,016
3.50 I~
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$17,897,851
12,535,811
$ 5,362,040
Investment Earnings
One Cent on Tax Rate
Property Tax Increase Required to
Replace Investment Earnings
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Cash Balance for General Fund at June 30, 1989
Cash Balance for General Fund at October 30, 1989
Decrease in Cash First Quarter
Discussion was held on the collection of revenues. Finance
Director Atkinson stated the major amount of revenue is collected
in the months of December, January, and February; therefore, an
adequate fund balance must be maintained in order to meet monthly
expenditures throughout the year.
Discussion was held on investment earnings and how banks are
selected. Director Atkinson stated only three banks are
currently bidding for investments: First Union, Wachovia, and
Southern National. Once funds are available for investments,
these banks are contacted and the highest bid is accepted. Also,
Cash Management Trust, an agency established by the State
Treasurer's office, is used and does provide higher earnings than
received on Certificates of Deposit.
Consensus: After further discussion of investments, it was the nL..
consensus of the Board to direct the Finance Director to furnish
copies of the monthly Investment Reports to the Commissioners.
PROPERTY TAX ANALYSIS: Finance Director Atkinson presented a
Property Tax Analysis of the past five years (1984-1989).
Discussion was held on the revenue lost due to legislative
changes. Director Atkinson stated the County lost revenue in the
amount of $2,212,525 at the current tax rate with a reimbursement
from the State in the amount of $1,949,320.
COMPARISON OF TAX REVENUE GROWTH AND COUNTY EXPENDITURE GROWTH:
Budget Officer, Cam McAbee, presented comparisons of tax revenue
growth and county expenditures for the past five years and
presented the following budget impacts for Fiscal Year 1990-91:
Salary & Benefits
Department of Social Services
Medicaid Expansion
Children's Protective Service &
Children's Services
Museum & Health Department - Cost
of moving into expanded facilities. (to
New or Expected Programs
Transportation Development Plan
Community Develop. Block Grant Program
contributions
Airport:
Terminal Project - Increased Contribution
Airport Operating - Minimum increase
$1,608,465
$ 444,840
$ 200,000
be determined)
$ 100,000
$ 100,000 n
$ 150,245
$ 114,000
Schools
6% cost-of-living for County funded
positions as well as undetermined
expansions.
(to be determined)
Resource Recovery Fund
(to be determined)
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MINUTES OF BUDGET WORK SESSION, NOVEMBER 13, 1989 (CONTINUED)
72t. .,
Expenditures may need to be funded
by an increase in fees and/or a
contribution from the General Fund.
Expenditures will be impacted by
decisions on collections, recycling,
steam plant expansion, and landfill
cell close-out.
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Debt Service
Parks & Senior Center Projects
(Partial Year)
$ 350,000
Commissioner Barfield expressed concern for increasing fees
at the Landfill. He recommended checking into other innovative
ways to increase revenues without raising fees, or to consider
reducing the cost in some areas such as establishing a demolition
landfill. Assistant County Manager Gornto stated other methods
of raising revenue should be investigated, particularly the
possibility of selling more steam. Finance Director Atkinson
stated the sale of steam to Carolina Power & Light Company
decreased last year due to the amount of down time at the Steam
Plant and the lack of customers. Commissioner Corbett stressed
the importance of investigating ways to increase revenue and
control operational costs at the Steam Plant.
Discussion was held on the cost of adding the EMS
Department. Finance Director Atkinson commented on the amount of
reimbursement from Medicare and Medicaid stating the $37
reimbursement per trip does not increase with the rising cost of
providing emergency medical services. Further discussion was
held on 40% of the budget being allocated for salaries and the
budget percentage increase among various departments.
Commissioner Barfield requested a report comparing salaries among
counties of similar size and a comparison of budget increases
among several departments for the past five years.
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Consensus: After further discussion, it was the consensus of the
Board to request the Budget Officer to prepare a comparison of
salaries to total expenditures for several counties and a
comparison of percentage budget increases for several County
departments during the past five years.
FUTURE CONSIDERATIONS: Budget Officer McAbee presented the
following items to be considered in the future:
1. Debt Service for possible future capital projects.
2. Operation and maintenance of new buildings, which
are under construction or planned.
3. Additional personnel and equipment for operating
County departments which need adequate resources
to handle increasing workloads.
4. Maintain the fund balance to keep adequate cash
flow and sufficient reserves for emergencies and
opportunities.
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5. Continuing effort of state and federal governments
to shift program costs to the local level.
CAPITAL PROJECTS: Acting County Manager Gornto presented the
following list of current and future Capital Projects stating
hopefully this information will assist the Board in establishing
long-range planning and making budget decisions for the 1990-91
Fiscal Year:
Current Capital Projects
Total Projected
Cost
Capital Annual
Impact on
General Fund
Airport Terminal Complex
Sewer System
$ 24,068,895
$ 196,000,000
$1,500,000
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722MINUTES OF BUDGET WORK SESSION, NOVEMBER 13, 1989 (CONTINUED)
steam Plant Expansion
Museum
School Renovations & Add.
$ 27,500,000
$ 4,207,718
$ 10,007,250
$ 430,000
Future Capital Projects
Requested Capital Projects
DSS Building Expansion
Branch Library (College Square
Replacement)
$ 950,000
$ 500,000
$ 330,000
$ 220,000
$ 500,000
$ 780,000
$ 232,395
$ 500,000
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Parks (Annual Debt Service)
Senior Center (Annual Debt Ser.)
Branch Library (Mid South)
Jail Expansion (Annual Debt. Ser.)
$3,000,000
$2,000,000
$ 500,000
$7,000,000
Commissioner Barfield complimented Staff for an excellent
presentation and explanation of the financial condition of New
Hanover County.
VICE-CHAIRMAN O'NEAL EXCUSED FROM THE SPECIAL SESSION
Vice-Chairman O'Neal excused himself at 9:01 A.M.
DISCUSSION OF SCHEDULING A WORK SESSION TO ADDRESS LONG-RANGE
PLANNING AND SEEK INNOVATIVE WAYS TO RAISE REVENUES
Discussion was held on the importance of long-range planning
and innovative ways of raising revenue other than through the
property tax.
Commissioner Barfield commented on the possibility of moving
the County commissioners' offices to the Courthouse stating the
present accommodations do not reflect a good image and with the
increasing demand to meet with citizens, he feels better offices
should be provided. He recommended this time be discussed at the
proposed Work Session.
Consensus: After further discussion, it was the consensus of the LJ__
Board to request the Acting County Manager to schedule a Saturday
Work Session in January or February to discuss long-range
planning, innovative ways of raising revenues, the possibility of
moving the County commissioners' offices to the Courthouse, and
other issues recommended by the County Administrative Staff.
SCHEDULING OF WORK SESSION TO DISCUSS GUIDELINES FOR 1991 TAX
REVALUATION
Consensus: After discussion of the 1991 Tax Revaluation, it was
the consensus of the Board to schedule a Work Session to be held
on Monday, November 27, 1989, at 9: 30 A.M. in Room 501 of the
County Administration Building to discuss guidelines for the 1991
Tax Revaluation. An agenda is to be prepared in advance of the
meeting.
DISCUSSION OF COMMISSIONERS SERVING ON VARIOUS BOARDS AND
COMMISSIONS
Commissioner Mathews stated the N.C. General Statutes
require Commissioners to serve on two boards: (1) the Board of
Health; and (2) the Mental Health Board. He stated due to
conflicts concerning budgets and other areas when serving on a
board, he would recommend that commissioners not be appointed to
other Boards and be allowed to attend meetings of all appointed
boards as they so desire. He stated many well-qualified citizens [J
would like an opportunity to serve on boards; however, many times
vacancies are not available. He also commented on the amount of
time involved serving on various boards stating with increasing
demands on County Commissioners, more time should be spent in
Work Sessions addressing County concerns.
Discussion was held on the possibility of requiring Boards
to present quarterly reports on activities throughout the year.
Commissioner Corbett expressed concern for not being appointed to
serve on various boards stating he enjoys becoming involved with
community issues, yet he understands the conflict areas that can
arise.
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MINUTES OF BUDGET WORK SESSION, NOVEMBER 13, 1989 (CONTINUED) 723 .,
Finance Director Atkinson stated
Staff are often placed in an awkward
budgets which have been approved by
Commissioners serving on these boards.
the County Manager and
posi tion when reviewing
various boards who have
Consensus: After further discussion of receiving reports from
appointed boards, it was the consensus of the Board to place this
item on the agenda for the Work Session to be held on November
27, 1989.
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DISCUSSION OF REQUEST BY PENDER COUNTY FOR APPOINTMENT OF
ADDITIONAL TRUSTEES TO THE CAPE FEAR COMMUNITY COLLEGE BOARD OF
TRUSTEES
Commissioner Barfield requested the Acting County Manager to
check into the reason for denial of the request by the Pender
County Board of Commissioners for appointment of additional
trustees from Pender County to serve on the Cape Fear Community
College Board of Trustees. He stressed the importance of working
with Pender County, particularly when they are trying to
establish a satellite community college in that area.
Chairman Retchin stated the Cape Fear Community College
Board of Trustees is not denying Pender County representation on
the Board. He stated two members from Pender County currently
serve on the Board of Trustees, and the reason for denying the
request was concern for increasing the number of trustees serving
on the Board.
Consensus: After further discussion, the Acting County Manager
was requested to check into this matter and forward a report to
the Commissioners.
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ANNOUNCEMENT OF BRUNSWICK COUNTY FUNDING FOR THE DETOX CENTER
Acting County Manager Gornto announced that Brunswick County
approved $46,000 for funding of the Detox Center which was an
additional $2,000 more than requested.
ADJOURNMENT
Commissioner Barfield MOVED, SECONDED by Commissioner
Mathews to adjourn. Upon vote, the MOTION CARRIED AS FOLLOWS:
Voting Aye: Commissioner Barfield
Commissioner Corbett
Vice-Chairman O'Neal
Chairman Retchin
Absent: Vice-Chairman O'Neal
Chairman Retchin adjourned the meeting at 9:35 o'clock P.M.
Respectfully submitted,
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Clerk to the Board
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