Minutes 03-17-2011 - Laserfiche WebLink

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APPROVED 4/19/2011 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS BUDGET WORK SESSION March 17, 2011 The Orange County Board of Commissioners met for a Budget Work Session on Thursday, March 17, 2011 at 7:00 p.m. at the Link Government Services Center in Hillsborough, N.C. COUNTY COMMISSIONERS PRESENT: Chair Bernadette Pelissier and Commissioners Valerie Foushee, Barry Jacobs, Pam Hemminger, Earl McKee and Steve Yuhasz COUNTY COMMISSIONERS ABSENT: Alice Gordon COUNTY ATTORNEY PRESENT: COUNTY STAFF PRESENT: County Manager Frank Clifton and Deputy Clerk to the Board David Hunt (All other staff inembers will be identified appropriately below) Chair Pelissier called the meeting to order at 7:05 PM. Financial Services Director Clarence Grier said that in October the County changed the plan from a ten-year to a five-year plan. Deputy Financial Services Director Michael Talbert made reference to the notebook with the five-year Capital Investment Plan. He said that the County is in a period of slow economic growth and has been through a bad recession. He said that the County is recovering, but not quickly. He said that the staff has included all of the items that the County Commissioners asked for. The Board wanted a comprehensive plan that included County capital and all proprietary funds (water and sewer utilities, solid waste, Sportsplex, and the school systems). This has all been combined into one summary document. He went through the document. He made reference to page 63 and pointed out the schedule for County debt service and debt capacity. The annual debt service is existing debt service starting at $28.6 million and gradually going down to $21.9 million in the fifth year. The inflation rate is 1% for 2012-13 and 1.5% for 2013-14 and 2014-15, and 2% in 2015-16. The annual debt service as a percent of general fund is calculated currently at 16.33%. There is not an anticipation of any additional debt for 2011-12. The percentage would then drop to 15.34%. He made reference to water and sewer utilities and said that everything will be funded from the General Fund. Solid waste is not on here because it pays its own debt service. Michael Talbert went back to page two and covered the main items of interest. Northern Human Services Center: - Northern Human Services detail on page 15. Available funds of $344,000 and the recommendation is to demolish this building. There would be a one year's notice to the existing tenant. Frank Clifton said that the big issue for this building is the septic system. It costs the County $100,000 a year to maintain the building with the daycare in there. Commissioner McKee asked if any thought had been given to declaring this excess property and divesting it. Frank Clifton said that some of this could be done, but there are issues with the park being next to it.