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APPROVED 10/15/02 <br /> MINUTES <br /> ORANGE COUNTY BOARD OF COMMISSIONERS <br /> April 22, 2002 <br /> The Orange County Board of Commissioners met on April 22, 2002 at 7:30 p.m. in the Government <br /> Service Center in Hillsborough, North Carolina. <br /> COUNTY COMMISSIONERS PRESENT: Chair Barry Jacobs and Commissioners Margaret W. Brown, <br /> Alice M. Gordon, and Stephen H. Halkiotis <br /> COUNTY COMMISSIONER ABSENT: Moses Carey, Jr. <br /> COUNTY STAFF PRESENT: County Manager John M. Link, Jr. and Clerk to the Board Beverly A. <br /> Blythe (All other staff members will be identified appropriately below) <br /> NOTE: ALL DOCUMENTS REFERRED TO IN THESE MINUTES ARE IN THE PERMANENT AGENDA <br /> FILE IN THE CLERK'S OFFICE. <br /> 1. BUDGET AND CIP ISSUES DISCUSSION <br /> a. Maio[ Factors Affecting FY 2002-03 Budget <br /> This item was presented so that the County Commissioners could discuss various issues related <br /> to Orange County's FY 2002-03 operating budget and 2002-2012 Ten-year Capital Investment Plan (CIP). <br /> John Link said that he would be presenting the worst case scenario tonight. He made reference <br /> to Medicaid and said that based on current year expenditure patterns and taking State estimates into <br /> consideration, the anticipated increase for FY 2002-03 would be $750,000. The annual cost for salary <br /> increases and the impact of the new positions approved last year is $1.2 million. Regarding health insurance, <br /> based on about an 18% increase effective December 1, 2002, the anticipated increase would cost $275,000. <br /> The debt service is the impact of the 1997 bonds sold in the spring of 2001 and is equivalent to <br /> approximately 1.9 cents on the tax rate or $1,709,000. The $1.5 million increase for education funding would <br /> take care of the new students expected and provide Orange County $500,000 in startup costs for Cedar <br /> Ridge High School. The $500,000 takes into account the decrease in students expected in the Orange <br /> County system. There are also other ways to help Orange County with startup costs for operating expenses. <br /> Commissioner Gordon clarified that the per pupil funding would increase from $2,437 to $2,515 <br /> which is a $79 increase per pupil. John Link emphasized that this would address new students for the <br /> Chapel Hill-Carrboro City Schools and keep Orange County Schools in the same position. <br /> Commissioner Gordon said that it is expected that Orange County will have 160 fewer students <br /> and that Chapel Hill-Carrboro will have 236 more students for the 2002-03 school year. <br /> John Link clarified that if the per pupil amount stayed the same, the Orange County School <br /> system would lose $500,000 to $600,000. <br /> Commissioner Halkiotis asked if John Link has any knowledge of the fund balances of both <br /> schools systems and John Link said that he would get that information this week. Since this is an unknown <br /> he cannot suggest that the schools use their fund balance until we know what they have. <br /> Commissioner Halkiotis said that even if this projection of funds stays the same that Orange <br /> County would still have to use some of their fund balance to open Cedar Ridge High School. <br /> John Link said that as a part of the capital costs for schools, the county has appropriated an extra <br /> amount on the capital side for startup costs. He said that there is some reason to be realistic about <br />