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HomeMy WebLinkAbout1989-11-13 Budget Work Session 719 " / 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. I 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. I 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 I 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 * * * * * * * 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 ~ 720 MINUTES OF BUDGET WORK SESSION, NOVEMBER 13, 1989 (CONTINUED) Percentage of Unreserved/Undesignated Fund Balance to Total Budget * * * * * 20.52% * * $ 1,643,675 $ 470,016 3.50 I~ * * I I l j $17,897,851 12,535,811 $ 5,362,040 Investment Earnings One Cent on Tax Rate Property Tax Increase Required to Replace Investment Earnings * * * * * 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) ~ 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. I 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. I 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. I 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 ~ 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 n 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. , :~ 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. I 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. I 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, cf:~~ Clerk to the Board I i ~