Agenda - 03-06-2014 - 6a - Laserfiche WebLink

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3 1 • Adjustments in retirement contribution rate - originally thought it might go down .10% 2 but there has been recent talk that it might go up 10%; will have to find that out later 3 in the budget process 4 • Full year funding for staggered addition of some employees during the current year - 5 $638,000 for salaries and benefits 6 • Keeping current compensation plan, allowing for 2% adjustment - $2 million 7 • Adjustment for projected growth in both school systems (Chapel Hill Carrboro - 154; 8 Orange County— 90); about 250 new students, based on current per pupil funding of 9 $3,269, that equates to $817,000 10 11 With adjustment for school growth, new debt service for the Culbreth science wing and 12 the auxiliary gym, and other items, education spending would be at 48.62% of the 13 budget; considering everything like social workers and Sheriff's deputies, the total is 14 about 49.6%. 15 16 Preliminarily, total expected adjustments to expenditures would be $4.4 million on a total 17 anticipated budget of$192.1 million, with no budget shortfall or anticipated property tax 18 increase. Things that could affect this number include Affordable Care Act requirements 19 to fund certain services, certain recycling options under consideration, and funding 20 requests that will be coming later from the school systems. 21 22 Commissioner Dorosin asked if the compensation adjustment means that everyone gets 23 a raise. 24 25 Clarence Grier said yes, but that's based on what they did this year. The number could 26 go up, down, or be taken out completely. He also clarified that the sales tax figure cited 27 earlier of$1.3 million reflects anticipated growth over the $16 million budgeted this year. 28 The County expected actual receipts this year to be about $18 million. He also 29 confirmed that using $5.7 million of fund balance would likely leave fund balance at a 30 little above 17%, as he expected to be at about 20% at the end of this fiscal year if 31 things stay the way they are. 32 33 Michael Talbert said the County had set aside funds the past two years to address post- 34 employee benefits and would consider doing that again in this next budget. The County 35 has about $6 million set aside against a liability of about $64 million (that is a balance 36 sheet consideration). 37 38 Clarence Grier said he expects the current bond ratings will at least be maintained, if not 39 go up. The County is in a good financial position, a good budgetary position. The only 40 caveat he offered was that sooner or later the County will have to address the use of 41 fund balance, which equates to about 3.5 cents on the current tax rate. At some point 42 they will need a tax increase to take care of the fund balance, but he does not foresee 43 that in this upcoming year. 44 45 Chair Jacobs asked him when was the last time they had a general tax increase and 46 Clarence Grier said 2008. Discussion ensued about when other taxes such as the 47 Chapel Hill-Carrboro district tax had been raised. Commissioner Jacobs said the point 48 is, for the vast majority of Orange County residents, there has only been one general 49 property tax rate increase and that was when the school system needed funds to open 50 an elementary school. 51 52 Michael Talbert reiterated that the 1.5% increase reflected "natural" growth such as new 53 vehicles on the road and new construction coming on line. There will not be a 54 revaluation of real property until 2017. 55