Agenda - 09-04-2014 - 6a - Laserfiche WebLink

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7 1 • County Capital Projects 2 • School Capital Projects 3 • Health Insurance 4 • Post-employment Insurance benefit for retirees 5 • Economic Development 6 • Economy 7 • Revaluation 8 • General Fund Revenues 9 FY 2015—2016 Budget (chart) 10 Public Hearings and Work Sessions 11 (All Meetings Begin at 7:00 p.m.) (Chart) 12 13 Document Availability 14 • Clerk to Board of Commissioners 15 • County Finance &Administrative Services Office 16 • Orange County Library 17 • Chapel Hill Public Library 18 • Carrboro/McDougle Branch Library 19 • Cybrary, Carrboro 20 • Orange County Website 21 22 Clarence Grier referred to the slide on projected cash flow. He noted that the 23 manager's recommended budget showed only one quarter with positive cash flow. He said the 24 County needs fund balance to mitigate the periods of negative cash flow. He said the current 25 fund balance for the general fund is approximately $36.7 million. Referring to the slide titled 26 Orange County Budget Past 6 Fiscal Years, he noted that the County's budget has increased 27 from $177.6 million to the current $195.6 million, which is an increase of$18 million over the 28 past 6 years. He said the increase in the current year is $8 million by itself, which is the result 29 of an improving economy after the recession. 30 Clarence Grier referred to the bar graph on property tax revenue. He said the 31 components of the property tax include motor vehicles and real property. He said real property 32 has increased by 1.5 percent in the past 6 years. He said the registered motor vehicles amount 33 is projected to increase to $7.9 million due to the change in how the taxes are collected, as well 34 as increased property tax values. 35 He said that property taxes currently account for 72.9 percent of the budget and this is 36 reduced based on the increased reliance on appropriated fund balance. He said sales tax is 37 currently the second largest revenue source, followed by intergovernmental sources. He said 38 these two sources were reversed during the recession, and the improved economy has moved 39 sales tax back to the second highest spot. 40 Clarence Grier said the additional $95 per student funding funds the growth of 41 approximately 297 additional students, as well as the recommended local portion of the state's 42 recommended 3 percent raise for state employees. 43 He said the County Department of Social Services and the schools have worked out an 44 agreement for schools to hire social workers, given the loss of state revenue. This will ensure 45 that services are not lost. 46 Clarence Grier reviewed the pie chart on County expenditures and noted that education 47 is the largest expenditure at 48.7 percent. He said this is the percentage of the total budget 48 and not the general fund revenues alone.