WAKE COUNTY BOARD OF COMMISSIONERS. Regular Meeting. May 18, :00 P.M. Room 2700, Wake County Justice Center

Transcription

1 WAKE COUNTY BOARD OF COMMISSIONERS Regular Meeting May 18, :00 P.M. Room 2700, Wake County Justice Center Members present were: Chairman James West, Vice-Chair Caroline Sullivan, John D. Burns, Jessica Holmes, and Betty Lou Ward Members absent were: Commissioner Matt Calabria, Commissioner Sig Hutchinson, Leslie Rudd, Deputy Clerk Others attending were: Jim Hartmann, County Manager, Scott Warren, County Attorney, Denise Hogan, Clerk to the Board, David Ellis, Deputy Manager, Johnna Rogers, Deputy Manager Meeting Called to Order: Chairman James West Pledge of Allegiance Invocation: Chairman James West Items of Business Approval of Agenda John D. Burns moved, seconded by Caroline Sullivan, to approve the agenda as presented. The motion passed unanimously. Approval of the Minutes of the Commissioners' Meeting of May 4, 2015 Betty Lou Ward moved, seconded by John D. Burns, to approve the minutes of the Commissioners' Regular Meeting of May 4, The motion passed unanimously. Report on the State of the Wake County Emergency Medical Services System and Proclaim May 17-23, 2015 as Wake County Emergency Medical Services (EMS) Week 2015 in Wake County Mr. Chris Colangelo, Wake County Interim Emergency Medical Services Director, introduced Chief Steve Cohen, Cary EMS; Dr. Jeff Williams, Interim Medical Director; Mr. Jon Olson, Deputy EMS Director and Chief of Operations; Mr. Mike Bachman, Deputy Director, Office of Medical Affairs; Mr. Don Garner, Deputy EMS Director, Office of Professional Development; Mr. Jeff Hammerstein, EMS Program Coordinator, Community Outreach and Public Information; and Dr. Stephanie Trowbridge, EMS fellow. 1

2 Mr. Colangelo said that he would share an overview of the EMS plan. He shared information about cardiac arrest, acute care, and the Advanced Practice Paramedic Program. He shared EMS department facts. Operations: 89,755 Responses in CY2014 Medical Affairs 22,485 individual reports reviewed in 2014 Professional Development 1,579 Hours of classroom instruction 990 Simulations He shared graphs of the units scheduled by duty and safety level. 2

3 He shared bar graphs of ambulances available. Cardiac Arrest Mr. Colangelo shared the cardiac arrest registry map. 3

4 Mr. Colangelo said that Wake County has a 12 percent Neuro Intact Survival compared to 8 percent for the state and nation. He shared information about what makes the survival rate work. Bystander CPR Emergency Medical Dispatchers Law Enforcement Firefighter First Responders Advanced Life Support Experienced Single Responders Coordinated Hospital Care Externally Validated Patient Centered Practices 4

5 Mr. Colangelo invited the Board of Commissioners to the EMS Code: Celebrate event on May 19, at 7:00 P.M. at Raleigh Memorial Auditorium. He said that Chairman West would deliver comments at this event. He shared information about projects and publications. He shared information about the active threat response and an objective evaluation of an integrated Rescue Task Force Model He said that this information was presented at a recent national meeting. Mr. Colangelo shared information about the medications administered by first responders. Advanced Practice Paramedic 5

6 Mr. Colangelo shared information about Advanced Practice Paramedics (APP) and the alternative redirect information for treatment. Alternative Destinations -2,061 evaluated for Special Assistance/Mental Health Services -417 successfully redirected to more appropriate facility He shared a recent article from the News and Observer about how paramedics determine which patients need to go to an emergency room and which need a psychiatric facility or substance abuse clinic. He shared a statement about the Division of Medical Assistance Report. The NC DHHS has examined the Wake County EMS Advanced Practice Paramedics Pilot and believes it is good public policy for the behavioral health system. It provides quality patient care, is cost effective and creates a more integrated system. He shared potential funding sources. Department of Mental Health -Block grant funding Restructure of Medicaid Payment Schedule Contracts with Providers (e.g, Hospice, Hospitals, etc) He shared information about the reduction of familiar faces plan. Defined as an individual who summons EMS more than four times in a rolling 30 day period We work with a community wide collaborative to improve care for these patients These are documented in Care Plans 6

7 Commissioner Ward asked the reasoning for a citizen for a citizen to contact EMS more than four times in a thirty day period. Mr. Colangelo said that most are having difficulty in managing chronic illness. Vice-Chair Sullivan asked about the increased use of the medication Narcan (used for overdoses and respitory aid) by EMS and the process for locating homes for patients that visit the emergency rooms with chronic illness. Mr. Colangelo said there has been a nationwide push to increase the use of Narcan and there has been a drop in cardiac arrest because of its administration. Vice-Chair Sullivan asked if there is an increase in overdoses or other reasons for usage. Mr. Bachman said that there have been uses for overdoses and cardiac arrest. He said that patients that are "familiar faces" often have an acute problem, mental health issue, or do not have information on a medical home. He said the situation is evaluated and often times a primary care physician is consulted. He said the majority of clients are Medicaid patients. He said Community Care of Wake and Johnston Counties have case managers that interact with Medicaid patients to identify problems, primary care physicians, and resources that are available. Chairman West said that EMS is a valuable service in Wake County. Wake EMS has a good system in place. Commissioner Holmes complimented staff for exceeding the state and national average for the Wake EMS Cares Program. She said that measures are being taken that are saving lives. Commissioner Ward commended the EMS staff. She said that she values EMS staff having called upon them before. She encouraged staff to continue delivering the services that are needed. Chairman West read aloud the proclamation. Caroline Sullivan moved, seconded by Betty Lou Ward, to receive a report on the state of Wake County Emergency Medical Services and proclaims the week of May 17-23, 2015 as Wake County Emergency Medical Services (EMS) Week 2015 in Wake County. The motion passed unanimously. Chairman West asked that the EMS staff come forward to be recognized by board members. WAKE COUNTY BOARD OF COMMISSIONERS Proclamation Designation the Week of May as Wake County Emergency Medical Services Week 2015 Whereas, Wake County s emergency medical services system provides a vital public service; and 7

8 Whereas, the members of Wake County s emergency medical services teams are ready to provide lifesaving care to those in need 24 hours a day, seven days a week; and Whereas, access to quality emergency care in Wake County dramatically improves the survival and recovery rate of those who experience sudden illness or injury; and Whereas, Wake County s emergency medical services system consists of emergency physicians, emergency nurses, emergency medical dispatchers, emergency medical technicians, paramedics, firefighters, educators, administrators, and others; including hundreds of volunteers; and Whereas, the members of Wake County s emergency medical services teams, whether career or volunteer, engage in thousands of hours of specialized training and continuing education to enhance their lifesaving skills; and Whereas, Wake County residents, workers, and visitors benefit daily from the knowledge and skills of these highly trained individuals; and Whereas, it is appropriate for the Wake County Board of Commissioners to designate the week of May 17-23, 2015 as Emergency Medical Services Week; and Now, therefore, the Wake County Board of Commissioners does hereby join with other governing bodies across the United States in setting aside the week of May in recognition of the value and the accomplishments of emergency medical services teams by proclaiming the week of May as WAKE COUNTY EMERGENCY MEDICAL SERVICES WEEK 2015 And encourages the community to observe this week with appropriate programs, ceremonies, and activities. Adopted this the 18 th of May Consent Agenda James West, Chairman Resolution to Support Designation of the US 64/US 17 Corridor from Raleigh, NC to Hampton Roads, VA as a Future Interstate John D. Burns moved, seconded by Caroline Sullivan, to approve the resolution to support designation of the US 64/US 17 corridor from Raleigh, NC to Hampton Roads, VA as a future interstate. The motion passed unanimously. 8

9 Approve Resolution Recognizing Harvey Schmitt, President and CEO of the Greater Raleigh Chamber of Commerce John D. Burns moved, seconded by Caroline Sullivan, to approve a resolution honoring the services of Harvey Schmitt, President and CEO of the Greater Raleigh Chamber of Commerce, from 1994 through The motion passed unanimously. Resolution Honoring Harvey A. Schmitt On His Retirement WHEREAS, Harvey Schmitt, President & CEO of the Greater Raleigh Chamber of Commerce, will retire in the summer of 2015, a position he has held since February 1994; and 9

10 WHEREAS, the Greater Raleigh Chamber of Commerce is the Triangle s largest nonprofit business membership organization, comprised of more than 2,300 member firms representing two-third of the private sector employment in Wake County, and WHEREAS, during his tenure the budget and program of work for the Chamber has tripled, and WHEREAS, Schmitt has established and funded five consecutive, five-year strategic economic and community development programs supporting growth and development in Wake County; and WHEREAS, Schmitt played a key role in the creation of the Downtown Raleigh Alliance, Greater Raleigh Sports Council and Regional Transportation Alliance; the recruitment of the NHL Carolina Hurricanes; the recruitment of major business downtown; and in the building of the new Raleigh Convention Center, and WHEREAS, Schmitt is a founding board member of the 200 Club of Wake County, Carolina Hurricanes Kids N Community Foundation, and the Downtown Raleigh Alliance; and WHEREAS, Schmitt is former Chairman of the Board of the American Chamber of Commerce Executives Association, past chairman of the ACCEE Trustees and currently serves on the US Chamber of Commerce Committee of 100; and WHEREAS, he was awarded the Business Leader of the Year Award in 2002 from Business Leader magazine, and WHEREAS, Schmitt has contributed to the successful passage of over $3 billion in Wake County bond referendums supporting open space, libraries, Wake Technical Community College and the Wake County Public School System, and WHEREAS, Schmitt has earned the admiration and respect of peers and community leaders for his dedication, professionalism and commitment to Wake County. NOW, THEREFORE BE IT RESOLVED, that we, the Wake County Board of Commissioners, do hereby extend to Harvey Schmitt our sincere and grateful appreciation for his dedicated service to Wake County and the Greater Raleigh Chamber of Commerce, our congratulations on his well-earned retirement and our best wishes to him for continued success, happiness and good health in the years to come. ADOPTED this the 18 th day of May James West, Chairman Wake County Board of Commissioners 10

11 Approval of the Sale of Surplus Property at 515 North Taylor Street, Wake Forest, NC John D. Burns moved, seconded by Caroline Sullivan, to: 1. Declare the property at 515 North Taylor Street surplus property; 2. Accept the offer of $79,000 cash for the purchase of 515 North Taylor Street, Wake Forest, NC (REID # ); 3. Direct staff to advertise the property of upset bids in accordance with General Statute 160A-269; 4. Direct the County Manager to execute a contract for sale of that property subject to the terms and conditions acceptable to the County Attorney and in accordance with NCGS 160A-269; and 5. Authorize the Chairman to sign the deed and any other documents necessary to convey the subject property to the highest bidder, subject to the terms and conditions acceptable to the County Attorney. The motion passed unanimously. Land Acquisition for an Elementary School Site and Future Middle School Site in East Raleigh - Near East Wake County Area (E-28 together with a future Middle School Site) (Second Reading) John D. Burns moved, seconded by Caroline Sullivan, to authorize the Board of Education to purchase acres of land in East Raleigh for an elementary school (E-28) and a land bank middle school (M-XX) in an amount not to exceed $2,125,693 (including closing costs), pursuant to N.C.G.S 115C-426. The motion passed unanimously. Conveyance of a Right of Way Deed of Easement to the North Carolina Department of Transportation to Help Facilitate the Replacement of Bridge #161 on Pulley Town Road, near Rolesville, NC John D. Burns moved, seconded by Caroline Sullivan, to approve a conveyance of and authorizes the Chairman to Execute a 0.11 Acre Right-of-Way Deed of Easement to the North Carolina Department of Transportation, along Pulley Town Road, near Rolesville, subject to terms and conditions acceptable to the County Attorney. The motion passed unanimously. Regular Agenda Housing and Community Revitalization Consolidated Plan Ms. Annemarie Maiorano, Wake County Housing and Community Revitalization Director, recognized Ms. Emily Fischbein, Housing Program Specialist, that dedicated work toward the planning process of the Consolidated Plan. She described the consolidated plan. A Five-year strategic plan that determines how Wake County Housing Division will allocate its Federal and County funds 11

12 It addresses housing and community development needs It examines barriers to affordable housing It includes a one-year Action Plan Funding for projects described in the plan comes from grants from the U.S. Department of Housing and Urban Development (HUD) and from Wake County government: - CDBG: Community Development Block Grant - HOME: Home Investment Partnerships Grant - HOPWA: Housing Opportunities for Persons with AIDS - CIP: County Improvement Funds The Consolidated Plan is required by HUD in order to receive the federal grants She shared the public involvement process. She shared the consensus priorities from public housing provider meetings. 34 meetings with citizens, Human Services providers, housing professionals and town planners were conducted between July, 2014 and February, 2015 Community meetings were held at each Regional Center and in the Western Region Two public hearings included one before the Human Services Board in January, 2015 and one this Board in February, 2015 The Consolidated Plan was in Public Comment Period April 1, May 1, 2015 She shared information about consensus priorities from public and housing priority meetings and priority populations for Emergency shelter for homeless single women Housing assistance for youth aging out of foster care Central intake center for homeless individuals and families Affordable housing for working low-income Housing assistance for veterans Affordable housing for seniors maintain existing housing and new construction High: Renters 0-40% AMI (up to $31,520, family of 4) Homeless Individuals and Families Non-homeless Individuals and Families with Special Needs Medium: Renters 41-50% AMI ($31,520 - $39,400, family of 4) Homeowners 41-50% AMI Low: Renters 51-80% ($39,400 - $47,280, family of 4) Homeowners 51-80% She shared revenue information for Fiscal Year

13 She shared CDBG expenditure information. Public Facilities: $946,310 / 700 families assisted Two projects in low-income areas Towns contribute at least 20% of project cost Sprayground in Wake Forest at the Alston Massenburg Community Center Paving of Lakewood Drive in Wendell Housing Rehabilitation: $804,307 / 40 households assisted Elderly and Disabled Program Grant of up to $15,000 Serves households at or below 40% Area Median Income - $31,520, family of 4 Emergency Grants Grant of up to $5,000 Serves households at or below 40% Area Median Income - $31,520, family of 4 Public Services: $55,000 / 55 households assisted Homeless Employment Initiative Job training, placement, and Wake Tech classes for homeless men at South Wilmington Street Center Rental Assistance Three months of rental and utility assistance to rapidly rehouse working men She shared information about the HOME Investment Partnerships. Affordable Housing Development: $545,694 / 26 households assisted Tax Credit Developments Smaller developments Rental Assistance: $152,000/ 15 households assisted For youth aging out of foster care 13

14 Partnership with Human Services and Pullen Hope Center Ms. Maiorano shared information about the County Capital Improvement Plan (CIP) Expenditures. Affordable Housing Development: $643,193 / 25 households assisted Rental Assistance for Homeless and Mentally Disabled Persons: $300,000 / 52 households assisted Support Circles Coordinator Salary: $56,807 / 12 households assisted She shared information about Housing Opportunities for persons with AIDS (HOPWA) Expenditures. Rental Assistance: $527,071 / 121 households assisted Long - term assistance Short - term assistance Case management for all clients She shared the next steps. May, 2015: Plan is due to Housing and Urban Development (HUD) July, 2015: Begin implementation of the FY15-16 Action Plan Commissioner Burns thanked Ms. Maiorano and her staff for the work toward the Consolidated Plan. He praised the program for including foster care in the plan. He asked how many children leave foster care each year and how much funding would be dedicated to foster care. Ms. Maiorano said 60 children leave the foster care program and 30 do not have a solid plan. She said it is known that youth can enter the shelter, so prevention is important. Commissioner Burns said that Wake County has a moral duty to provide assistance in this area. Vice-Chair Sullivan said the program is a great partnership with Wake Technical Community College. Ms. Maiorano said there is a strong community partnership with Pullen Hope Center. Commissioner Ward asked if other counties have programs that Wake County could follow to assist with foster care. She said that she was not aware of other counties that offer rental assistance for graduating foster care youth, but can follow up with Pullen Hope Center. Commissioner Ward said many of the graduating foster care youth do not have mentors when they leave the program. Vice-Chair Sullivan said that not all counties will provide payments to families for foster children after 18 years of age. Chairman West said that foster care youth that are of age, including low income kids, often have no home or parental support system. He asked for housing alternatives for kids that have no home. Ms. Maiorano said the youth would qualify for housing that is currently available, and there may be credit issues to qualify. 14

15 Chairman West asked how the analysis of impediments fits into true needs. Ms. Maiorano said the Analysis of Fair Housing Choice will address elimination of barriers. Chairman West said there is debate with the City of Raleigh and the Consolidated Plan about the types of affordable housing in the eastern part of Wake County. He asked how the Affordable Housing Plan is related to engagement. He said the City of Raleigh has 19 Citizen Advisory Committees that report to the citizens. He said "engagement" is a term that has been used in the process. Ms. Maiorano said there have been 34 meetings with citizens, Human Services providers, housing professionals, and town planners that were conducted. The City of Raleigh has also conducted information meetings. She said that conversation should occur with partners to develop the engagement. Commissioner Holmes echoed the comments about foster care. She said the womens' shelter is a need and asked about the timeline for a shelter if there was funding available. Ms. Maiorano said securing space could occur in an existing facility, acquired, or built new. Coordination with nonprofits to determine per diem cost would be necessary. She said six to twelve months would be needed to get a facility started. Caroline Sullivan moved, seconded by John D. Burns, to approve the Consolidated Plan. The motion passed unanimously. Public Comments: Mr. Chris Parrish, Founder and President of the Nessie Foundation, (4500 Parrish Manor Drive Garner NC), asked for funding support for the Community Safe Room Building that will provide a storm shelter for the Southeast Raleigh Community. Mr. Parrish said that the Nessie Foundation is a non-profit that was formed in 2006 to serve at-risk youth and their families. He said that 66 FEMA projects have been funded across the country. He said in August 2013, FEMA awarded the project $880,553. He said that on April 16, 2011, tornadoes struck Raleigh devastating a manufactured housing community that is similar to Parrish Manor. He said that the family was supported by a local church community. He read aloud an excerpt from the North Carolina Emergency Management website that instructs on preparing for tornados. The information instructed the public to seek shelter if available or find a ditch for safety during a tornado. He said the storm shelter is a 5,000 square foot building that will provide safety for the community. He said that the Nessie Foundation works with Cooperative Extension, Wake County Human Services, Interfaith Food Shuttle, and Boys and Girls Clubs of Wake County. He said that last year the Nessie Foundation partnered with the Interfaith Food Shuttle to provide 7,000 plates of food for the needy with the mobile food truck. He said that the Parrish Manor manufactured housing community is comprised of 280 homes, 1,000 residents, and 450 children. He said that there are at risk youth in the neighborhood. Mr. Parrish spoke of a teenager that attended the Boys and Girls Club summer program that won the youth of the year. He said that Travis Whatley also attended the Boys and Girls Club summer program and would address the board. Mr. Parrish used the example of teaching a child to fish to that of teaching youth the direction they should follow. He asked the Board of Commissioners to help with the 15

16 funding on the building. He circulated materials to the board about the Community Center and Safe Room. Mr. Travis Whatley (3520 Sherford Way) said that he has lived in Parrish Manor for two years. He said that he has worked with the Nessie Foundation the past two years. He said that he assisted with lesson planning for the children. He spoke about the advantages of having the facility to be safe place for the community. A short break was taken. Presentation of the County Manager's Recommended Budget for Fiscal Year Chairman West said that the budget is important and said the county has the opportunity to engage, remain transparent and set priorities. He said the county must make efficient use of resources. Mr. Jim Hartmann, County Manager, made the following presentation of the Fiscal Year 2016 Recommended Budget for Wake County. Today, we share the results of a year-long effort, which culminates in the plan that will fund Wake County s priorities and initiatives for the upcoming year. A lot of time, effort and thoughtful discussion went into developing what I m pleased to present to you today, the Recommended Fiscal Year 2016 budget for the County. Before I get into the details of my presentation, I would like to give you some perspective on how we built this budget. Wake County s Economic Picture Most economists say that the County has made it through the recession, but some would argue that we have not fully recovered. When we talk about the recession, we will use 2008 as our benchmark year, because it is the best point from which to judge what life was like before the economic downturn. When you look at the key indicators used to measure our economic vitality, you can see why some people think the economy has not completely recovered. Compare where we are now to where we were then, and it is clear we are making strides in most areas, but we continue to lag in others. Take residential building permits, for example. Building permits drive our property valuation, and that, in turn, yields our largest revenue source, property taxes. Prior to the recession, permits reached a high of more than 11,000 and were valued at $2.4 billion. In 2008, that number was nearly cut in half and generated half the value. A year later, 16

17 that number plummeted to nearly 3,500 permits valued at $663 million. After a series of rises and falls, the volume settled at $1.27 billion in 2014, when we issued more than 5,800 permits. Home prices tell a similar story. In 2008, the average selling price was nearly $268,000. The following year, it hit a low of about $249,000 and did not see much growth until 2014, when the average selling price jumped to almost $278,000. In 2008, the unemployment rate was 4.7 percent. In 2010, it surged to a high of 8.6 percent, leaving thousands of people jobless. After years of steady decline, the unemployment rate arrived at 4.1 percent in 2014, as more people went back to work. The poverty rate in 2008 was 9.1 percent. It spiked to 12 percent in 2010 and gradually decreased from there to 10.7 percent in 2013, which is the latest figure available. It represents more than 100,000 residents a number that is larger than the population of 70 of North Carolina s counties. All these elements are major drivers for our two largest revenue sources: sales tax and property tax. In 2008, the sales tax generated $127.2 million. That figure dropped dramatically in 2010 to about $100 million, a revenue loss of $25 million that was made up by budget cuts rather than revenue enhancements. The sales tax is estimated to reach $157 million in FY2015 as consumer confidence returns and after an expansion of the sales tax base by the General Assembly. Our property tax growth averaged more than $4.2 billion prior to the recession. The base was reset with revaluation in January 2008 at the peak of the real estate market. The following year, the tax base growth plummeted, reaching a low point in FY2011 of less than $1 billion in new value. While values are expected to grow by almost $3.5 billion in FY2016, they remain significantly below pre-recession levels and may not reach those levels again in the near future. improvements and high-tech enhancements. This exemplifies what we call the new normal. Not everything is going to return to the way it was before the economic downturn. The recession caused municipal managers across the country to take a hard look at the needs of their communities, and examine how local governments delivered products and services. Many services moved to new delivery models as a result, taking advantage of business process As we embrace this new normal, we have to keep the County s population growth in 17

18 the forefront. From 2008 to 2014, we grew by nearly 134,000 people. Just this past August, we officially reached the 1-million mark. The influx shows no signs of stopping. Each day, 62 more people call Wake County home. Twenty-two of those are due to natural increase, which equates to about a kindergarten class a day. During the recession, we tried to be mindful of maintaining services without increasing the tax burden during a challenging economic time. In order to meet our commitments, we cut County department budgets and deferred tax increases of 1.3 cents for the school system and Wake Tech. In some ways, we are still playing catch up. Although we have become more efficient in some areas, our gains in efficiency are not keeping pace with the rising demand for service. We have to find opportunities to do more without further decreasing our expenditures, while, at the same time, being measured in our funding increases. That point was plainly illustrated by the budget expansion requests we received this year. Budget Expansions Departments inside the County, as well as Wake Tech, the public school system and outside organizations, asked for a combined total of $72 million in additional funding. This amount far exceeded our anticipated normal revenue growth of roughly $30 million. The challenge in balancing the budget resided in two main areas: prioritizing expenditures and determining if a tax increase was needed to fund our highest priorities. Because we made funding and staffing cuts during the recession, there were not many places left where we could further reduce our spending without cutting service. More and more people are counting on the services we offer, and we cannot justify reducing them when demand is so high. That said, I think it is important to guide you through the thoughtful and deliberate process we followed, when we built this budget. We began by looking at last year s adopted budget, and took out salary and benefits calculations and prior year one-time costs. Then, we added items that the board had approved throughout the year and updated the countywide charge backs. This left us with our FY2016 target base. At that point, we gave the departments a target budget to meet, and for needs beyond that target, they could request a budget expansion. Each department had to articulate, justify and defend their rationale for the additional funding. They had to clearly show us what their needs were and why they were important. Emergency Medical Services is a good example. EMS was given $34.5 million as a target base. Their staff identified $3.9 million in additional needs not covered by the base budget. They shared this information with us in a formal presentation, during which we asked questions and gained a better understanding of their needs. We will give you more insight on the funding EMS will receive later in this presentation. 18

19 After evaluating our base and the items outside it, we looked at our revenue growth over the past year. Property tax and sales tax generated $31.9 million. We had to keep in mind that much of our budget is already dedicated or required spending. About $10.7 million came off the top first for debt services. We allocated the rest, $21.2 million, to fund new requests. In addition to considering our immediate needs, it is also my responsibility to look at our long-term needs. Over the next several years, many large initiatives will impact our tax base or create the need for recurring revenue. The eight-year property revaluation will be completed this year, with new values set on Jan. 1, The FY2017 revenue-neutral tax rate will be established in June Just last week, we held the first of several public meetings to discuss transit options, which will require us to ask the community to increase the sales tax by one-half cent. The additional revenue will fund the plans that will meet our long-range transportation needs. In FY2017, we will issue the last of the bonds from voter-approved referenda, and our need to build public schools and community college classrooms will not diminish, given our continuing population growth. We must also look at our open space, parks and library programs to determine what the needs are for those services, because they re some of our most popular and heavily used. We have limited capacity to issue new debt without a tax increase to fund our capital priorities. We must be diligent and prudent in our planning to ensure all these efforts are done in a fiscally responsible manner to protect the County's triple, triple A bond rating. It is within this full context that this budget was developed. After careful consideration and evaluation of all the requests, the budget recommendation to you today totals $1.13 billion and includes a 2.9-cent property tax increase. Education Of the many budget expansion requests we received this year, the largest ones were for education. The total cost of Wake Technical Community College and Wake County Public School System s requests was almost $52 million. State statutes clearly define our funding role. The law (N.C.G.S 115C-426(e)) requires counties to build, equip and maintain public schools and community college facilities, as well as supplement the operating expenses of state primary schools within financial resources and consistent with the fiscal policies of the Board of County Commissioners. 19

20 It is the state s responsibility to fund school operations and instructional expenses using state revenues. Two-thirds of the Wake County Public School System s budget is funded by the state and dependent on legislative action. With the House budget just released on May 14, that makes timing challenging. It leaves the County in the same place we were last year not knowing if legislators would give teachers or other school system employees raises. A quality education system and an educated workforce are two of our most important economic development tools. They are important for all of North Carolina, not just Wake County. As I promised last year, I am committed to working with Superintendent James Merrill to develop a long-term funding plan to support the school system s strategic initiatives for improving student achievement. A brief video was shown about budget requests. Wake County Public School System Good schools are what bring families here and keep them here. Parents want the very best for their kids. At the County, our sentiment is no different. Each and every child in Wake County deserves to learn, grow and thrive in the classroom. We want to give all students the same access to an educational experience that will challenge their minds, enhance their knowledge and lay the groundwork for future success. That is why we carefully considered the Wake County Board of Education s request for a funding increase of $48.3 million. While contemplating the recommendation for school funding, we looked back at per pupil funding from both the County and the state. Here is what we found. In FY2009, the state per pupil spending in Wake County was $5,149, and the County per pupil spending was $2,255. In FY2014, the most recent year available for state expenditures, spending was $5,006 on each student. County spending per pupil will be $2,197 in Fiscal Year As you can see, spending still has not returned to prerecession levels. Our goal for this budget was to restore per pupil funding to where it was before the recession. This budget recommendation increases school operating funding by 10.1 percent to a total of $376 million, with $34.6 million in new funding. That is $2,374 per student, and it exceeds what we spent per pupil in FY2015 by $177. This represents a significant commitment to education, as it is the largest increase ever from the County to the school system s operating budget. This investment will establish a new level of funding, with a goal of moving to more stable and predictable 20

21 funding in the future. The Wake County School Board has sole discretion on how to allocate the County s appropriation. That must be done in conjunction with the final state budget, which will likely not be approved by the time the County has to adopt this budget. As the General Assembly deliberates its next biennial budget, we respectfully request that they consider increasing state per-pupil funding for all 100 counties, as North Carolina s revenue picture improves. Wake Technical Community College Wake Tech is the largest community college in our state and one of the fastest growing community colleges in the nation. It is a key place where many students go after graduating from high school to continue their path to success. It is also one of the main sources of training in our community for people seeking jobs. It is our responsibility to help the college expand and enhance educational opportunities by providing the funding needed to build and operate its facilities. The recommended budget includes an additional $2.9 million for Wake Tech, roughly an 18 percent increase over FY2015. The funds will cover instructional start-up costs for new classrooms coming on line, which the state pays for in arrears. The money will also fund the operating costs of new facilities and hiring more IT staff. This $2.9-million investment will help the college meet the demands of our growing County, while allowing it to remain a leader in secondary education, workforce training and life-long learning. Public Safety Another area receiving additional funding in the recommended budget is public safety. It will increase by nearly $4.2 million and 34 positions to help protect our growing population. More than half of that new funding, approximately $2.6 million, will go to EMS. As the number of people living in Wake County increases, so does the demand placed upon our crews. They responded to nearly 90,000 calls last year alone, which is nearly 4,100 more calls than in 2013 and another step in an upward trend we have seen for several years. We have to make adjustments to ensure we are staffed and scheduled appropriately to meet this demand, because people s lives depend on it. That is why in this budget we will implement the first year of a three-year plan to convert crews from 24-hour shifts to 12-hour shifts. To support this effort, we are providing EMS with 17 new employees, including a supervisor and three new ambulances. The move to 12-hour shifts will allow EMS to better manage peak service times, increase its availability and improve response times. In addition to increasing demand for services, we are also dealing with a changing inmate population in our jail. More and more people entering the facility have substance abuse issues, mental health problems and other health concerns. The Wake County Sheriff is responsible for the safety and wellbeing of all inmates, as well as 21

22 staff members. To ensure he meets those important requirements, the recommended budget allocates about $1 million in additional funding to hire a Health Services Administrator, six detention officers and six nurses to work at the jail. These nurses will help meet the inmates care needs while they are incarcerated and guide them towards appropriate treatment options when they are released. This is one example of how the Sheriff s Office will use the $1.4 million in additional funds and 15 new positions provided in this budget. The rest of this money will go towards adding two new deputies at the courthouse to enhance security, and increasing routing between the crisis center in Raleigh and outside treatment facilities for those with mental illness. The recommended budget also provides $162,000 in additional funding to the City- County Bureau of Investigation (CCBI). The organization not only supports the Sheriff s Office, but all law enforcement agencies in our County. This heavy workload combined with new standards that take more time to follow has generated a backlog of cases awaiting finger, hand or foot print identification. The longer the wait, the longer it takes to identify the criminals and get them off the streets. By adding a new position for a latent print examiner, we help reduce the backlog and allow new cases to be processed more efficiently. Between 2013 and 2014, CCBI increased the number of people positively identified by their prints from about 1,100 to 1,800, a 63 percent increase. By adding this new examiner, we can continue that upward trend. Human Services Equally important to public safety is the health and wellbeing of our growing County. As our population increases, so does the number of clients who depend on our services. That is why we have added $2.5 million and 25 full- and part-time employees to the recommended budget in this area. Our Human Services Department will use this new funding for multiple projects, including expanding maternal care services for pregnant women. We will extend clinic hours and add four part-time employees at our Sunnybrook location and launch a new clinic staffed with four full-time employees at the Millbrook location where care for expectant mothers is not currently available. These improvements will enable us to see 1,250 new patients annually and better serve our 4,500 existing patients by reducing the wait time for an appointment. Statistics show getting more women in to see a health care provider during the first trimester will help reduce infant deaths. Another way we will use this funding is bringing 10 new nurses to the Wake County Public School System. We are in the process of a implementing a four-year phased plan to improve the nurse-to-student ratio. Last year, we added 10 nurses, bringing the ratio down from 1:2,300 to 1:2,095. With the addition of 10 more nurses, we will lower that ratio even further to 1:1,904. These new nurses will spend time at more than 20 different schools countywide, serving children with needs ranging from allergies and illness to a lack of basic health care. By improving their health, we can help the students focus on learning. Community Services 22

23 Also important are the services that enrich the lives of those who live in Wake County. That is why the recommended budget includes a more than $2 million increase and 19 new positions for our Community Services Department. Much of the additional money will fund the opening of the Northeast Regional Library. It is located in northeast Raleigh but will also serve Rolesville and Wake Forest. The 22,000-square-foot facility is currently under construction. It was the first library from the 2007 bond that was scheduled to open to the public, but the recession forced us put those plans and all other projects the bond funded on hold until the economy improved. Now that we are in better financial times, we plan to open the library in FY2016. About $924,000 in additional funding will pay for the 19 employees required to run the new facility, a three-month operating budget and a year of replacement books. Another area impacted by the economic downtown was our library system s book budget. During the recession, we cut the funding allotted for buying new library books almost in half roughly $1.3 million. That meant collections for adults and children were not updated regularly like they had been in the past. Library staff says the age of the books directly correlates with circulation numbers. As the books get older, fewer people check them out. In this recommended budget, we provide our library system $1 million in additional funding to buy new books. Although this investment doesn t return the book budget to pre-recession levels of $2.7 million, it is a strong step in the right direction. Environmental Services When you go out to eat at a restaurant, you think about what to order probably not the safety of the food or the facility. That is our job. Our inspection team is tasked with ensuring all restaurants, hotels and residential care facilities in Wake County meet state code. Municipalities do not provide this service. Over the past few years, the number of these facilities has grown. We now have almost 1,500 more to inspect each year. In order to do that while meeting new state productivity rules, we need more employees. That is why this budget provides $528,000 to our Environmental Services Department, which will fund three new inspector positions. Another portion of those funds will go towards adding a position to the department s call center. The duties of the current four-person staff have expanded. They do more than answer phones and receive plan submittals. They also research permits, assist divisions with paperwork and mailings, and help internal customers archive information. The new position will allow this group to better meet the needs of customers inside and outside our offices. Board of Elections We are providing the Wake County Board of Elections with significant financial support in this budget to ensure we are following several new state statutes that govern the electoral process. 23

24 Last year, the General Assembly approved a bill that requires us to hold a Presidential Preference Primary in 2016 as a standalone election. That will cost $892,000. Another $405,000 is needed to pay for early voting at nine different sites for this primary. State statute has also changed the length of time in which early voting is allowed for elections in Instead of providing the required 1,658 hours over a 17-day window, we must now provide the same level of service in a 10-day time frame without adjusting our operating hours. To achieve that, we must increase the number of early voting locations from 16 to 23; and buy the equipment needed to cast and tally votes, which will cost nearly $100,000. The law also requires that we hold two local elections for municipalities in 2015 and early voting before the May primary, as well. To fulfill our responsibility to meet all these state mandates, this budget provides the Board of Elections with $2.6 million in additional funding for FY2016. Remaining Departments Lastly, the recommended budget increases funding for the remaining County departments by $1.3 million and eight positions. Of that, Information Services, which manages our web presence and technological capabilities, receives $525,000 in additional funding and five new positions. This investment will enhance our online security, improve monitoring of our server infrastructure and help staff troubleshoot computer problems, while better supporting our electronic document management needs. This budget also provides our Revenue Department with $156,000 in new funds to hire two new managers. These positions will support the completion of revaluations and help lead an anticipated shift to a four-year revaluation cycle. Along with additional funding for County departments, the recommended budget also makes a significant financial commitment to our 3,800 employees. It includes a 3- percent average performance-based pay increase totaling about $6 million and more funding for the County s share of our health insurance. This budget does not just cover our internal needs and those of our education partners. It also includes $2.3 million in funding for several external organizations, including increases for the Healing Place, the Chamber of Commerce s Economic Development Office, United Arts and Smart Start. This marks a nearly 16-percent increase over FY2015 and represents a concerted effort to return our contributions to these groups to pre-recession levels. This is the first year Smart Start will receive funding from the County. Our recommendation of $163,000 will be leveraged to access almost half a million dollars in state funds. We chose to provide this group with funding, because we believe that investing in education at all ages is important. Studies show helping children learn at an early age increases graduation rates up to 44 percent. Mr. Hartmann shared the conclusion of the presentation. 24

25 Conclusion The recommended General Fund budget for FY2016 presented to you today totals $1.13 billion. The recommended budget for all County funds totals $1.7 billion. That includes the Capital Improvement Plan that was presented to you at the May 11 work session. The 2016 General Fund budget represents a $67 million increase over the FY2015 budget. That increase is necessary. We have to meet the needs of our growing population. We have to invest more in our highest priorities: education, public safety and human services. Education funding makes up more than half of our entire budget and is receiving half of the new revenue, because we believe it is a fundamental need for our community. Overall, the Wake County Public School System will see a 10.1 percent funding increase the largest ever from the County to the school system s operating budget. With this recommended budget, the County per pupil funding to the school system will not just meet but exceed pre-recession levels. Wake Tech will see an 18 percent increase over FY2015. Of the remaining $30 million in new revenue, one-third is for debt service, which is the number-one commitment we must always ensure is fully funded. Meeting priority needs in public safety and human services, and providing funding for growing service demands round out the rest of the budget increase. There are the usual uncertainties with the state budget, but this year there is added unpredictability due to the debate over local sales taxes at the legislature. There have been two bills introduced to make the local sales tax part of a statewide sales tax and redistributing those funds on a per capita basis statewide. As this debate progresses, we must be reserved in our growth estimates for the future. I have shared a lot of important numbers with you today. Those numbers do not mean much without context, and that is what we have worked hard to provide. Every dollar and every position we recommended in this budget has a strong rationale. It represents a concerted effort to do more for our growing community through measured funding increases. It also tells the story of how we plan to preserve and enhance the unique quality of life here that makes Wake County so attractive to so many. We have provided each of you with a budget information packet that includes the budget book, as well as condensed break downs of each area receiving additional funding. These materials will also be made available to the public on our website at wakegov.com/budget. Citizens are also welcome to share their comments with us electronically on the budget webpage. The next step in this process is for you to hold public hearings on June 1 at 2 p.m. in the boardroom and at 7 p.m. at the Wake County Commons. As in past years, you will also hold a work session dedicated to the budget on June 8 at 9 a.m. On June 15, you will be asked to adopt the FY2016 budget during your normally scheduled 2 p.m. business meeting. 25

26 With that, I thank for you for your time today and your thoughtful consideration. Respectively submitted, Jim Hartmann County Manager He thanked Ms. Johnna Rogers, Deputy Manager, budget staff, and employees in the organization. Chairman West thanked the County Manager for his presentation and for the prework involved to facilitate discussion of the budget with the Wake County Public Schools. Mr. Warren said that the adoption of the actions is necessary and the public hearings will follow. John D. Burns moved, seconded by Betty Lou Ward, to receive the recommended fiscal year 2016 budget for consideration and approves the following: 1. Holds a public hearing on the budget during the Board of Commissioners regular meeting on Monday, June 1, at 2:00 p.m. in the Board Room of the Justice Center, and also at 7:00 p.m. on that day at the Commons Building; 2. Holds a budget work session on Monday, June 8, at 9:00 a.m.; and 3. Considers the budget for adoption on Monday, June 15, during the Board of Commissioners regular meeting, which begins at 2:00 p.m. The motion passed unanimously. Other Items Committee Reports Other Business Closed Session Adjourn 26