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APPROVED 8/22/95 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS BUDGET WORK SESSION MONDAY, JUNE 12, 1995 The Orange County Board of Commissioners met in regular session for a budget work session on Monday, June 12, 1995 at 7:30 p.m. at the Homestead Community Center on Homestead Road in Chapel Hill, North Carolina. COUNTY COMMISSIONERS PRESENT: Chair Moses Carey, Jr., and Commissioners William L. Crowther, Alice M. Gordon, Stephen H. Halkiotis and Don Willhoit. OPENING COMMENTS Chair Carey convened the meeting. He announced that this work session would include a discussion of the budgets of the two school systems in Orange County plus a couple of items brought forth by citizens at the public hearings held on June 1 and June 6. This is a work session and not a meeting where the Board of County Commissioners will make their final decision on the budget. They plan to have several additional work sessions before adopting the budget. PRESENTATION BY JOHN LINK John Link summarized the County's recommendation for the two school systems. It is being recommended that the amount per pupil be increased by $69. The budget includes 2.8 million dollars to address the additional debt occurring because of selling the last of the 52 million in bonds. They plan to appropriate $900,000 interest earnings into the revenue stream of the budget to offset the tax impact. He recommended in this budget a one cent increase in the Chapel Hill- Carrboro district tax from 15.4 cents to 16.4 cents. The rationale for the increase in the district tax was based on a request from the school board and superintendent. This money would be used to cover startup costs for the new high school and elementary school which is in excess of two million dollars. He said as one addresses equity, the question that comes to mind is should this start-up cost be included as part of the general advalorem tax equation for all taxpayers to pay. Start-up costs for the Orange County system, since the CIP has been introduced, are uncertain because as he understands, the Orange County School Board has now determined to pursue a new elementary school in the old Stanback building. Also, as the County addresses equity in school operating funds, it will require a significant tax increase for the Orange County School district taxpayers. The Orange County School Board has recognized the legitimacy of the Chapel Hill-Carrboro School district tax in discussions with both school boards. They have not endorsed the idea of a supplemental district tax for Orange County. He noted that the Board of County Commissioners has the responsibility in each County for addressing the expenditures and determining how to get the revenue to meet those expenditures. The school boards identified the expenditures needed and in some cases provided recommendations on how to get the revenue. He asked if the Board of County Commissioners want consistent recommendations from the school boards on the revenue side of the budget when the schools present their budget. He