Minutes 01-31-2014 - Laserfiche WebLink

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