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addressing the startup costs. Ken Chavious said that there is approximately $400,000 interest from the notes of anticipation that can be used for startup costs. John Link said that there is not a reserve fund for new staff resources. He is going to recommend that new positions not be considered until the economy improves. He does not know of any other specific cuts at this point. Commissioner Halkiotis said that regarding the money the State has withheld from the counties, he is really disappointed about what the North Carolina Association of County Commissioners (NCACC) has done so far. The League of Municipalities has stepped up their support but he does not see our association as active as they should be. Commissioner Brown asked about Orange-Person-Chatham Mental Health (OPC) and the 7% they feel will be cut by the State. Budget Director Donna Dean said that they have not heard anything from the state about this. John Link said that this might be an issue. In answer to a question from Commissioner Gordon, Personnel Director Elaine Holmes said that the County is averaging 30-35 vacant positions at any one time. She will provide Commissioner Gordon an amount of lapsed salary money. Chair Jacobs made reference to Medicaid and an article written on April 7 about Mecklenburg County cutting costs by entering into a public-private agreement. The article indicated that costs were cut significantly. John Link noted that the growth in the tax base is $2.7 million. He said that there has been an increase of 3.3% in real property valuation and a 5% increase in motor vehicle valuation. Donna Dean made reference to the homestead exemption and said that this year there is $20 million in property tax base, which will not be taxed and next year this figure will be $60 million. John Link said that on state reimbursements, he has included the full $3.1 million in his recommended budget. The NCACC recommends that cities and counties include the full amount of reimbursements in their budgets for FY 2002-03. Regarding sales tax revenues, NCACC recommends that counties project growth at very conservative levels. He will be recommending no growth in sales tax revenues. If the economy picks up, this would be a plus for us during the year. He is recommending taking $2.5 million from fund balance to balance the budget. This would bring unappropriated fund balance to between 9% and 10% of General Fund expenditures. Chair Jacobs asked if we experience a slow growth next year will we be able to depend on any monies from the fund balance and still not go below 8%. Finance Director Ken Chavious said that it will depend on sales tax revenues and windfalls we don't expect. It is possible that we would have a small cushion above 8%. He said that what affects fund balance would be the increases or decreases in sales tax and other factors. He noted that when the County sells bonds in January, he sees no problem in getting a good rate. In answer to a question, John Link said that if the County was given the authority and enacted a one-half cent sales tax on August 1, it would generate $3.6 to $3.8 million in revenues. John Link noted that because interest rates have dropped dramatically this year, his revenue projections are based on $1.2 million less being received from interest income. He said that in order to address the loss in revenue, we are looking at a 4-1/2 cent tax increase. John Link said that he did not budget for the classification and pay study implementation and will not recommend implementation unless the revenue picture improves. He also will not be recommending a