HomeMy Public PortalAbout01-24-2009 Budgetary Planning RetreatHillsborough Board of Commissioners
FY2010 Budgetary Planning Retreat
January 24, 2009, 9:00 a.m. - 3:30 p.m.
Durham Technical College (Hillsborough Campus), Hillsborough, NC
ATTENDEES
Commissioners: Tom Stevens, Mayor; Commissioners Frances Dancy, Michael
Gering, Eric Hallman, Evelyn Lloyd, and Brian Lowen.
Staff: Eric Peterson, Town Manager; Nicole Ard, Assistant Town Manager/Public
Works Director; Donna Armbrister, Town Clerk/Director of Administration and Human
Resources; Will Baker, Assistant Utility Director; Russell Bateman, Water Plant
Supervisor; Clarence Birkhead, Police Chief; Emily Bradford, Budget and Management
Analyst; Jeff Cabe, Orange Rural Fire Department Chief; Ricky Clark, Meter Reader
Supervisor; Gary Felts, Police Lieutenant; Carolyn Glasgow, Assistant Finance Director;
Margaret Hauth, Planning Director; Ken Hines, Public Works Supervisor; Darren Koch,
Fleet Mechanic; Kenny Keel, Town Engineer/Utilities Director; Jeff Mahagan,
Wastewater Plant Superintendent; Tashia Mayo, Police Administrative Assistant David
Moore, Safety and Risk Management Officer; Jenny Overman, Billing and Collections
Supervisor; Greg Siler, Finance Director; Davis Trimmer, Police Lieutenant; Jerry
Wagner, Fire Marshal; Robert Whitted, Police Lieutenant; David Wisely, Fleet
Maintenance Supervisor; and Catherine Wright, Public Information Officer.
Facilitator: Donna Warner, UNC-CH School of Government
RETREAT TOPICS
1. Balance Scorecard Report
2. Financial Forecast
3. Departmental Redesign/Cost Containment Proposals
4. Priorities for FY 2010
BALANCED SCORECARD UPDATE
The board believes the Balanced Scorecard is a useful tool to guide their strategic
decision making and to measure outcomes of services and programs. Data from the
Balanced Scorecard will also be used to communicate with citizens about the cost of
government, giving them a better idea about what their tax dollar is buying. Eric
Peterson, town manager, will highlight certain measures from the Scorecard in
upcoming budget discussions with citizens to justify requests for change in services
To make sure Town services are line with others, the board recommended Peterson
use information from other sources including municipalities of similar size and data from
the John Locke Foundation as a basis of comparing the cost of Town programs and
services. Commissioners directed Peterson to continue measuring citizen satisfaction
with Town services.
FINANCIAL FORECAST
Commissioners learned the Town's current operating model is not sustainable due to
the decline in the national, state and local economies. This downturn will result in a
decline in revenue available. Peterson is projecting a $700,000 shortfall in water/sewer
funds; a $50,000 decline in investments; and a $100,000 estimated shortfall in sales tax
revenue. Compounding the problem is the lack of projected revenues from the Water
Stone project.
Subsequently, revenue estimates will be conservative this year and some services and
programs will be cut. Peterson hopes fiscal year 2009-2010 will be the worst and the
2010-2011 budget forecast will be better.
DEPARTMENTAL REDESIGN/COST CONTAINMENT PROPOSALS
To increase efficiencies, Town managers and department heads reviewed their
operations and made recommendations on ways to save money. Commissioners were
asked to challenge the manager and staff regarding the options presented and to look
for alternatives. Commissioners gave the following designations to the various
proposals offered by staff: worth pursuing, needs additional information or low priority.
The following is a summary of the issues and the board recommendations.
A. Water and Sewer
1. There is an estimated $700,000 shortfall projected in water/sewer funds. Board
members suggested exploring the possibility of adding other customers for
water.
2. Staff suggested considering adding a fee for irrigation systems. The law will
change July 1, 2009 requiring meters be placed on newly installed irrigation
systems.
B. Public Safety
1. Integrate COP into the patrol for a savings of 2.0 FTE
Board recommendation: worth pursuing
2. Create a STEP Program for Police Officers to improve retention.
Board recommendation: worth pursuing
3. Create corporal positions, also to improve retention.
Board recommendation: worth pursuing
C. Fire Inspection
1. Institute aself- inspection program.
Board recommendation: worth pursuing
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Fire Inspection (continued)
2. Use Orange Rural Fire Department firefighters to assist with inspections. Options
include making the firefighters Town employees and paying them benefits or
contracting with the ORFD for services.
Board recommendation: worth pursuing
3. Reduce the number of inspections to the state mandated facilities.
4. Consider merging Town services with Orange County Emergency Services.
D. Orange Rural Fire Department
1. Consider extending municipal benefits to the Orange Rural firefighters as a way
to retain workers.
E. Planning
1. Request 1.0 FTE to manage Town information technology systems.
Board recommendation: develop a long term strategy for information
technology. Develop a case for the 1.0 FTE in the short term. The board
requests additional information before a decision is made.
2. Ruffin-Roulhac Buildings: Options for administrative and meeting space
a. Paint and carpet Ruffin/Roulhac buildings
b. Consider other locations including developing the Collins land, moving
administrative offices into the police station, and sharing space with
Orange County in the Link Center.
Board recommendation: In the short term, stop pursuit of the
Ruffin/Roulhac heirs. For the long term, place this item on the spring
workshop agenda. Also, consider space for administration in next years'
budget.
3. Make code enforcement self supporting
4. Consolidate advisory boards.
Board recommendation: Commissioners understand the value of
efficiency but also want to be sure citizens are afforded access to their
town government. Margaret Hauth, Planning Director, will talk with the
advisory boards about possible courses of action.
F. Parks and Recreation
1. Fairview Park -long term interest: own and maintain the park
2. Riverwalk phase II
G. Public Works
1. Defer replacement schedule
2. Explore "green" initiative
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Public Works (continued)
3. Consider fees for bulk pick up, requests for a second container and clean up
after special events.
Board recommendation: worth pursuing
4. Reassess routes to help seniors
5. Sell metal and compost
6. Consider the administrative cost of changes. Use the web as a way to sign-up
for brush pick-up.
7. Use staff to maintain parks.
H. Administration
1. Purchase agenda management system similar to the one used by the Town of
Chapel Hill and Orange County
Board recommendation: worth pursuing
2. Curtail purchase of bottled water for meetings
Board recommendation: worth pursuing
3. Delay longevity pay and eligibility for insurance benefits
Board recommendation: worth pursuing
I. Finance and Billing
1. Add 1.0 FTE Purchasing Agent position
Board recommendation: worth pursuing
2. Initiate a credit card convenience fee
Board recommendation: worth pursuing
3. Develop program of direct deposit for payroll checks
Board recommendation: worth pursuing
ACTION ITEMS
1. Add Cost of Government to the Balanced Scorecard. Consider adding it as part
of the "Quality of Life" strategic priorities. Use this metric to identify increases
from 2008-2009 and changes in the fund balance.
2. Contact Orange County regarding the accuracy of information about the Town
shown on the 2008 county tax bill.
3. Highlight information from the Balanced Scorecard on the annual report. Include
key items to be measured and the cost of government.
4. Communicate with the public about the possible changes to programs and
services. Methods of communication to explore include face-to face
conversations, placing information on the Internet, and State of the Town
address.
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5. Develop information for the March workshop about the benefits of annexation for
potential neighborhoods.
FUTURE ISSUES FOR CONSIDERATION
1. What is growth? Is it new development? Infill? Redevelopment? What is the
Town's capacity for growth?
2. How will the Town deal with the change that growth brings? Cost/affordability?
How will the Town maintain its unique quality and small town feel? How will
Orange County's growth impact the Town?
MEETING EVALUATION
What worked well?
1. Helpful to have the briefing notebook. Material was informative.
2. Valuable to have department heads present to answer questions and share
information.
3. Time well used.
4. Didn't get bogged down. Good to have a facilitator to keep meeting moving.
5. Nice space
What needs improvement?
1. Add more time for staff feedback.
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Respectfully submitted,
Donna F. Armbrister, MMC
Town Clerk
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