Agenda - 09-02-2021; 8-a - Minutes

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41 1 Bonnie Hammersley said Department Directors work closely with the community, so in 2 most cases Department Directors will inform an agency of the funding opportunity. 3 Commissioner Fowler referred to CIP years 6-10, and asked if the schools needs are 4 included. She said the schools are projecting much higher numbers than those that are within 5 the CIP. 6 Bonnie Hammersley said the CIP includes whatever numbers the schools provide to the 7 County. 8 Commissioner Fowler asked where the Chapel Hill Library is listed in the Recommended 9 Budget Document. 10 Paul Laughton said it is in the non-departmental section, on page 337 of the document. 11 Commissioner Fowler asked if Commissioners budget is included in the Clerk's budget. 12 Paul Laughton said yes, and the Commissioners are a separate line in personnel 13 services. 14 Commissioner Dorosin said the process for outside agencies is better, and having 15 systematized and objective standards is better and fairer. He said Chapel Hill is proposing a 3- 16 cent tax increase, and asked if Hillsborough and Carrboro are proposing anything similar. He 17 said he is concerned about the amount of tax increase being proposed, even with the very tight 18 budget. He said he is worried about putting a tax increase on residents. He said given the 19 federal money coming in, could short-term cuts be made now to reduce the needed tax 20 increase, knowing budget amendments could be made in coming months. 21 Bonnie Hammersley said the primary source of revenue (73.7°/x) is property tax. She 22 said 77% of that is residential, and 12% is sales tax. She said there is no way to get more 23 property tax revenue without raising taxes. She said sales tax revenue accounts for$24 million 24 of a $279 million budget, which is the challenge. She said staff knows there is no raise again 25 this year, but her priorities are to protect employee positions and also serve the residents. She 26 said when the economy goes south, people come to local government for assistance. She said 27 the budget team initially said the increase would have to be 4.15 cents, but was able to lower it 28 by putting in more one-time money. She said she hopes the recovery of the economy will be 29 good and that maybe a tax increase will not be needed next year. She said she understands 30 what Commissioner Dorosin is saying, and staff will pull together and discuss his concerns. 31 She explained that a penny tax increase is $2 million, which is a lot of money to try to cut out, 32 especially when the money is spread out across departments. 33 Commissioner Dorosin said he understands the money would have to come from a lot of 34 different parts to come up with the $2 million. He said he would like to explore using ARPA 35 funds more effectively to avoid a tax increase. 36 Bonnie Hammersley said ARPA funding has permissible uses, and it can only be used 37 accordingly, or the County will have to repay the money to the federal government. She said 38 there are many things on the Departments' lists of needs that are not permissible uses for 39 ARPA funding. She said she understands the Commissioners position and the challenge the 40 Board faces. 41 Commissioner Bedford said some of the request for ARPA funding must be new. She 42 asked if there could be $2 million of normal expenses to substitute in ARPA funds instead of a 1 43 cent tax increase. 44 Bonnie Hammersley said staff has already gone through and scrubbed the budget with 45 everything that is permissible, and the recommended budget accounts for that work. She said 46 the ARPA money can also be used for revenue replacement, but that amount will not be known 47 under the year-end. 48 Gary Donaldson said the budget uses some ARPA funds to get it to break even, 49 including for the Sportsplex and Visitor's Bureau. He said the ARPA funds cannot be used to 50 substitute a tax rate for general fund.