Work Session Minutes of the Town of Cary , NC
FY 2008 Proposed Budget
May 8, 2007
Conference Room
10035
316 N. Academy St.
, Cary

 

Present:  Mayor Ernie McAlister, Mayor Pro Tem Jack Smith, Council Members Marla Dorrel, Ervin Portman, Julie Robison and Nels Roseland

 

Absent:  Council Member Jennifer Robinson

 

Mayor McAlister started the meeting at 4:33 p.m.

 

The proposed budget is attached to and incorporated in these minutes as Exhibit A.

 

Town Manager Bill Coleman stated that the budget was prepared with a look at future accomplishments.  He said that during the past year council had lengthy discussions about quality of life issues and the vision statement offered by Ms. Dorrel has been incorporated.  Also included are the he basic principals discussed by council and how council wants the organization to go forward in creating and maintaining the community.  He said that staff will continue to work to further refine the goals, objectives, and work measures so that they relate to the quality of life basic principles.

 

Mr. Coleman stated that Budget Director Scott Fogleman has provided a more detailed look at the information in the summary and comparison of general and utility fund budgets to more accurately reflect the recommended increases.  (A copy of the detailed information is attached to and incorporated in these minutes as Exhibit B.)  Mr. Fogleman added that one of the biggest changes from the FY07 budget to the FY08 budget is the amount of pay-as-you-go capital transfers going from the general fund to various capital projects. 

 

Mr. Coleman said that the Town’s major costs in the operating budget are in personnel.  In particular, there are recommendations to add a number of new positions and funding for the pay plan.  He said that a small percentage has to do with moving the small capital projects to the operating budget; staff will continue to look at that as a means of operating in the future because a number of ongoing capital projects are essentially maintenance and should be funded by the tax rate yearly rather than debt funding maintenance into the future. 

 

Mr. Coleman discussed the difference between the number of positions requested and the number recommended.  He said that police department requested six patrol officers and the recommendation is to not fund those positions at this time.  In reviewing the operational and statistical information from the police department the numbers didn’t indicate any dramatic changes over time.  As a result they looked at staffing levels and noted through the course of year that the Town operated with 10-14 patrol offices under what had been authorized.  He said that they felt it was more prudent to become fully staffed and see the affects before adding new positions. 

 

Mr. Coleman said that more than one position was also requested in permits and inspections.  Several years ago there was a significant downturn in growth and eight positions were eliminated in order to staff down to the level of work being experienced.  Since that time, the number of new housing starts and inspections has increased which has resulted in the recommendation for three building inspection positions—four were requested.  He said that a large number of employees are requested in public works and utilities areas, which is in response to an expansion of the utility system, the expansion in work order requests, and an expansion in activities required to maintain the Town’s utility system and other parts of our infrastructure.  He said that the additions are necessary to ensure that we can respond on a timely basis to all of the maintenance activities requested. 

 

Mayor McAlister asked how many police officers and code inspectors were approved in the budget last year.  Mr. Coleman responded that there were three code inspectors and ten patrol positions approved last year. 

 

Mayor McAlister stated that the justification for the police officers is to be able to switch to 12 beats.  He said it is a compelling argument that if the positions approved last year weren’t filled then those should be filled first.  He asked whether not approving the extra 6 positions affects the ability to complete the conversion to 12 beats.  Mr. Coleman said he believes it does.  He said in reviewing the requests they didn’t see where 12 beats made much difference over the 10 beats if the proactive policing and response times are adequate; the beat issue didn’t seem to be significant.

 

Mayor McAlister said that he hopes they are looking at other indicators to see if those positions need to be filled before we start seeing an increase in crime statistics.  Mr. Coleman said that Assistant Town Manager Ben Shivar conducts a monthly public safety task force meeting where he reviews with the police chief and fire chief all data relevant to operations activities in those areas and it is tracked on a continuing basis.  He said they would be able to quickly respond to any needed changes.

 

Mayor McAlister asked if going to a new field technology allows the inspectors to enter data more quickly and be more efficient.  He also asked when the system is it going to be up and running and whether it will help the existing code enforcement officers to be more efficient.  Mr. Coleman said it will allow more efficient internet data.  It will allow the existing employees perform more inspections, but based experience and research it doesn’t appear that it will shorten the time spent on inspections.  He believes that the time saved in entering data will allow for higher quality inspections.

 

Ms. Dorrel asked if inspectors are assigned specific geographic zones.  Mr. Coleman said several years ago the Town went to a point system for assigning inspections.  Staff looked at variables related to inspections, locations, travel times, type of inspection, and complexity, and assigned workload based on all of those factors, including geographical location.  Currently inspections are grouped and as much as possible many are assigned to the same area where the inspectors will be.  Inspections & Permits Director Bob Strowbridge added that a benefit of having multi-trained inspectors is that they don’t have to send separate individuals; they can send only one person certified in the other areas, which has been very efficient. 

 

Mayor McAlister asked if utilizing the multi-trained inspectors saves times.  Mr. Strowbridge said that it does, but they try to limit those inspectors to the smaller inspections. He said that they like to use the single trained inspectors for the larger jobs like houses and commercial buildings to look at those more closely.

 

Ms. Dorrel asked if the ten police positions added last year were all police officer I.  Mr. Coleman said yes, they were patrol officers. 

 

Ms. Dorrel asked about the reasons for the current vacancies.  Mr. Coleman said that the police department made changes in their recruitment and selection process this year and getting those procedures and policies in place took more time.  He said the process for recruiting and selecting police officer’s is more complicated than hiring other employees; they have to perform background checks, psychological testing, and physical testing, so there’s a lot more involved.  He said that the turnover rate this year has been a little higher than in the past. 

 

Mayor Pro Tem Smith asked if there were any trends in the turnover.  Human Resources Director Vee Willis said there isn’t a definite trend; it is a combination of things Town wide.  She said the majority of people leave within the first three years.  Police Chief Scott Cunningham said in the last year we lost mainly mid-year mid-career people; several moved on to other agencies, some to federal agencies, two have had family problems which caused them to move out of the area, and a couple have left for mutually beneficial reasons. 

 

Chief Cunningham said we currently have six people in the police academy, three recently graduated from another academy, another three were recently hired.  Because of the length of time it takes they will become fully operational right before Christmas.  He said it takes about 30 weeks if they are not already certified—the basic academy is about 16 weeks, the field training program 12 weeks, and then a 2-3 week internal familiarization program.  

 

Mr. Roseland asked if the turnover is related to burnout.  Chief Cunningham said no.  He said the Town continues to hire extremely good people.  They look for a sufficient number but not an overflow to ensure quality hires. 

 

Mayor McAlister asked if the six positions aren’t filled how quickly we can respond if there is a marginal rise in the statistics.  Chief Cunningham said what will help eliminate down time is that the police department now has open recruiting and hiring process and accepts applications on a continuing basis.  The people they are currently hiring are certified and they can immediately go on the street.  He said it’s quicker to bring them on board pending open positions.

 

Mayor McAlister asked if the systemic changes make it a quicker process going forward.  Chief Cunningham said yes.  He said going forward they would be looking to hire those with their certification because the police department would be looking for a quicker turnaround. 

 

Ms. Dorrel asked about the current vacancies.  Chief Cunningham responded that there are 9 open now.  She asked if that number considers the three they are ready to hire.  Chief Cunningham said the nine include the two detectives recently approved.  He said in the last few weeks they have filled 12 positions, including a couple of over-hires.

 

Ms. Dorrel said council needs a better understanding of the transition to 12 beats to help understand the urgency for the six requested positions. Mayor McAlister asked Chief Cunningham to be prepared at next session to give a synopsis of the benefits of the 12 beats.

 

Mr. Roseland said he supports revisiting staffing recommended for the FY08 police budget.  He asked about the affects on the hiring phase if the six are not hired.  Chief Cunningham said that the one thing changed in the hiring process is that he personally interviews all candidates before the final hiring decision.  He said it’s not practical to bring everyone on in one year because they could run into trouble trying to bring on too many people at one time.  He also doesn’t anticipate condensing it down to two years because that could overload the system. 

 

Mr. Roseland asked if hiring an additional 2-4 investigators would have an impact on the violent or property crime numbers.  Chief Cunningham said that the primary emphasis would be in the patrol area because they can have more of an impact.  If only hiring a limited number of people you get a bigger bang for the buck with the detectives. 

 

Mr. Roseland said he hopes council can consider adding staff to go to the12 beats or adding detectives.  He requested information on possible options and how they would impact the numbers in a positive way.  Chief Cunningham said that the 12 beat concept is a deployment plan; it’s a detailed plan on how they would use the additional people needed to serve the community. 

 

Mayor McAlister said that at next work session they will get a better understanding of the 12 beat plan, the possible options, and trade offs between six officers verses several detectives.

 

Ms. Dorrel asked about stormwater management and whether we have adequate coverage for the best management practices (BMPs) with new developments.  Engineering Director Tim Bailey said last year the engineering department hired someone to deal strictly with stormwater issues; they have also restructured internally to have people working on environmental permitting.  He said that the LDO was also changed to require that professional engineers submit specific information and that has helped with the workload.  He said that they’ve requested the additional field staff person to help primarily with the erosion control issue.

 

Ms. Dorrel asked about the Town’s role in assuring that developers provide the required BMPs to fulfill their obligation.  Mr. Bailey said that a certificate of occupancy for building is not issued until the BMPs are in place.  He said that BMPs are in place and are working when the facilities come on line.  The Town also has good inspection program for BMPs and erosion control. 

 

Ms. Dorrel asked if they follow the development and construction of the BMPs or do they come in toward the end.  Mr. Bailey said it starts with the preconstruction conferences where developers are told up front that what they will need and that they have to have erosion control devices in place before the Town will issue the grading permit.  They are also given a check list.  He said that staff works with them along the way and reminds them when things are behind so that nothing slips through the cracks.

 

Ms. Dorrel asked how much time is spent on citizen education with the status of stormwater issues in new development.  Mr. Bailey said that more time is spent doing inspections.  He would be surprised if more than 5 to 10 percent of the field staff’s time is spent dealing with those direct development responses.  They usually deal with it based on calls and requests.  More staff time is spent dealing with ongoing issues with homeowners who have had chronic problems and concerns. 

 

Ms. Dorrel asked what happens with the BMPs after the certificate of occupancy is issued.  Mr. Bailey said they keep a chronological database and track when annual inspections are needed.  They keep all financial party information on line and send notices to the owners.  He said that they also perform follow up inspections to make sure necessary repairs are made, as well as spot checks to ensure those doing certifications are doing a good job. 

 

Mr. Roseland asked about the two technology positions requested and the new computer programs being created.  Technology Services Director Bill Stice said the systems analysts position was generated by growth and workload.  He said that they’ve requested another position for wireless technology and part of that person’s responsibility will be to absorb the new workload from building inspectors using laptops and field devices.  Also, three facilities have been added and hardware on the network side that one systems analyst was moved to a fulltime network position to manage the network, which put all of the workload on the two remaining systems analysts.  They’ve reached the saturation point.  The systems analyst would also function as a business analyst to work with each department, look at workflow processes, and ways in which technology can better improve the efficiency process.  Mr. Stice said that the database programmer would develop applications so that the backend database would be able to capture information electronically to be used throughout the organization for improvement and efficiency. 

 

Mr. Roseland asked of the three positions what percentage of time is for maintenance and what percentage is for new.  Mr. Stice said the wireless person is generated by the new automated meter reading system (AMI)—they have about 100 wireless access points for downtown that will have to be maintained.  He said that they are also adding several applications requiring wireless support.  He said the number of laptops in public safety has also been doubled and TS has reached the point were they’re having issues with overtime.  All systems analysts are cross trained to function on all of the business applications and they are on call 24 hours/7 days a week, 365 days a year at least one third of the time.  One is required to be in Town at all times in case of an emergency.  Mr. Stice said probably about 60-65 percent of the database programmer’s time would be to support the existing applications and relieve some of the GIS workload.  The rest is developing new applications and working with departments on streamlining and improving their operations.

 

Mr. Roseland asked about the automated meter reading and whether there will be less meter readers.  Mr. Coleman said the Town will be eliminating all meter readers except one.  Finance Director Karen Mills said they expect to eliminate 10 of the 12 field service staff members in customer accounting with this project.  There aren’t any positions eliminated in FY08; they anticipate some being eliminated in FY09, near the end of the project.

 

Mr. Roseland asked when the savings would be realized.  Mrs. Mills said the project has a 17 year life and they anticipate about $14 million in savings over the life of that project.  It would break even in about 8 or 9 years and pay for the cost of the system.  The costs anticipated adding staff in technology services, eliminating the meter readers, and slowing the growth of customer service clerks as the Town’s customer base increases.  Mr. Stice added that one reason for adding the wireless division this year is because the first part of the AMR system requires all the infrastructure to be in place. 

 

Mr. Coleman said that the other personnel-related issue is on the pay plan is funded.  The recommendation in the pay plan for FY08 for the average raise would be about 4.93 percent.  He said the Town doesn’t give cost of living increases and any salary increase is through the merit program.  He said that Mr. Roseland asked staff during the preview sessions to look at Capital Associates Incorporated (CAI) which does research on benefits, pay packages, etc.  Mr. Coleman said that Human Resources Director Vee Willis is familiar with that service and reported that the CAI survey for next year is being conducted now.  The results will include pay plan and budget recommendations for next year and will be available in late July or early August.  However, a very small number of municipalities participate in survey and most of the information comes from manufacturing companies. 

 

Mr. Coleman said the Town also has 401k and 457 plans whereby the town contributes five percent of salary to the 401k account for all employees.  Mrs. Willis has also done research with regard to other municipalities’ and counties’ pay increases this year which is included in the budget material.  He said their recommendation is that the pay plan be based on a dollar amount which is about 4.93 percent for the average increase.  Mr. Fogelman looked at the Town’s performance in administering the pay plan over the last several years and in 2005 the budgeted pay raise was 5.47 percent and the actually given was 4.67 percent; in 2006 the budgeted raise average was 4 percent and the performance was actually 3.54 percent; in 2007 the budgeted amount was 4.53 percent and year to date we are at about 4.22 percent.  Mr. Coleman said they’ve also calculated the amount of reduction per percent of the 4.93 and each percent of that is $529,704.  Mr. Roseland said that he asked for that information to get an indication of the recommended pay plan package since it’s the second single largest budget increase. 

 

Mr. Coleman said the actual operating budget expenditure for materials, supplies and capital equipment is fairly stagnant from last year. 

 

Mr. Portman asked the Town is funding capital from the fund balance.  Mr. Coleman responded yes. 

 

Mr. Portman asked if there’s been a policy change to cut the fund balance or if it is the result of decisions.  Mr. Coleman said that the policy direction from council was to maintain six months.  As a general rule, council has felt that any difference above six months was available for appropriation for capital projects. 

 

Ms. Dorrel said that some point council needs to consider whether the six month reserve in fund balance is an appropriate level.  Mr. Coleman said staff has discussed maintaining that at about $50 million regardless of the percentage. 

 

Ms. Dorrel said the question is whether there is an understanding that council wants to head in that direction and set up $50 million.  She said they may want to take action during the budget process to establish that policy.

 

Mr. Portman asked about the rational of the amount I the fund balance and the pros and cons of going lower or higher.  Mr. Coleman said that there are three purposes of fund balance: (1) cash flow–our biggest revenue sources is property tax and a majority of that comes in late December, January.  Fund balance is there to make sure we maintain our cash flow to meet all of the monthly expenses; (2) emergencies; and (3) to support the Town’s overall financial position which is the basis for our bond rating.  Mr. Coleman said it is essentially based on the needs and requirements of each community.  The $50 million isn’t related to anything in particular but it is a number that adequately addresses all three of the needs of the purpose of fund balance.  Mrs. Robison stated that it was a comfort level for council.  Mrs. Mills added that the six month target adopted by council served well in improving the Town’s bond ratings.  Now that the Town has AAA bond ratings council can continue to make choices.  She doesn’t think that the AAA bond rating for the general fund would be at risk as long as the choices are prudent and conservative. 

 

Mr. Portman asked about the cash flow need for fund balance.  Mrs. Mills said the Town has adequate balances because of our capital program.  She said if Cary were a community without continued grow we would dip into that at some point as cash flow changed.  The fund balance also creates interest income for the Town.

 

Ms. Dorrel asked if it would be much more favorable to the Town’s position for council to make the decision to change the policy to a cap at the time they can clearly afford to do that, wisely invest the capital in pay as you go projects, and not because of some impending issue needing addressed.  Mrs. Mills responded yes, as long as it is made within the parameters of other financial issues. 

 

Mr. Portman stated that he would like to have the 2006 and 2007 actual budget comparisons for the next work session so that council can see growth and projections. 

 

Mr. Portman asked if there was revenue in the budget this year for the redlight camera system and whether it is at risk.  Mr. Coleman said it’s very minor revenue for the Town.  Town Attorney Chris Simpson said in the background there’s always a threat of a challenge to the Town’s authority to operate the program.  She said if it were decided it were unconstitutional we could be responsible for paying to the schools all of the money collected, including what the Town paid for the operation of the system.  She said the Town has a different local act that gives us the authorization to operate the system.

 

Mr. Portman asked about the economic development funding.  Mr. Roseland said it was set up as a sinking fund to support the position for several years with the understanding that the business community would pick up the positions from their fundraising and matching efforts afterwards.  Mayor McAlister said it was $250,000 a year for three years.  He said because it was a new initiative we wanted to show a commitment by funding it for three years up front to make sure it got a good solid start. 

 

Ms. Dorrel asked about the general fund fund balance policy issue and whether it should be addressed by council.  Mrs. Robison said if addressed in the next work session it would give them time to look at the numbers and see what may be put back.  Mr. Coleman suggested that rather than having a fund balance discussion as part of the budget it be held separately through the operations committee.  He said the fund balance policy is part of the overall financial policy and has to do with overall financial management of the Town. 

 

Mr. Robison said council should discuss it as a whole; she is not comfortable with it going to the operations committee.  Mr. Roseland said when they review the capital budget if they find it to be deficient that would be a funding source that could modify the policy.  Mayor McAlister said separating it from the budget process makes the point clearer that council is doing it because it’s a good strategic decision going forward and it avoids creating the impression that it is done out of need.  Mr. Roseland said it is a significant policy decision that should be modified just as other policy decisions are done.  He said adopting the budget is the most significant policy statement council makes.  Ms. Dorrel said that what matters most is that if council is inclined to make the policy change then it should be done. 

 

Mr. Coleman said there’s about a $5 million overage between six months and what’s available at end of 07.  He said they can discuss it during the capital budget and deal with the policy issue at a later date.  Mrs. Robison said that she doesn’t see compelling reason to change the policy.  Ms. Dorrel said she doesn’t see urgency; however, it’s unfinished business and she would like to see it addressed. 

 

Mayor McAlister summarized council’s discussions by saying they will consider it as they always do during the budget but not t initiate any action to change it at this point.  Mr. Coleman said staff will do the research, create the staff report, and bring it to committee as soon as possible.  Mrs. Robison said her preference is that it comes to the full council instead of committee.  Mrs. Mills said that she can have the information ready to bring to council for the first meeting in June. 

 

Mr. Portman asked if staff has looked at service levels from the standpoint of interaction of citizens with the Town.  He said as they review the budget they need to ensure that the interactions are efficient and as good and on line as they can be.  Mr. Coleman said that is done continually throughout the year with daily feedback from citizens, through the Information Services Advisory Baord (ISAB), citizen satisfaction survey, and the operations of boards and commissions.  He said we are currently looking at implementing an on-line site plan review and some other functions.  Mr. Stice said they’ve done a pilot for putting a majority of the site plans on the Web site so that citizens can look for site plan details.  He said we also provide an e-mail notification system and the automated meter reading system will enable us to get better feedback about water usage.  He said that the ISAB is also a good feedback source. They help decide the layers of the GIS data on the Web site and they are looking at a content management system for the Web site. 

 

Mr. Portman asked about the length of time for Cary ’s review process.  Mr. Coleman said that about a year ago Cary came out on top in a survey rating reviewing process in the triangle area which done either by Durham Chamber or Homebuilders Association of Durham County.  Mr. Bailey added that people consistently compliment Cary compared to other jurisdictions.  He said they like knowing what to expect and the predictability of process.  He said that there are a lot of things we do which takes time but with everything we do internally it’s done pretty fast.  He said Cary is delegated for erosion control instead of going to the state; we are delegated for water and sewer extension permits and you can get it in a day in Cary .  Mr. Coleman said if there is a particular case or project that an individual thinks took longer than it should staff would be happy to meet with them. 

 

Ms. Dorrel asked to what extent Town staff is able and willing to act as facilitators or interveners with other agencies on behalf of citizens.  She asked if staff could act more as ombudsman for our citizens helping them work through the bureaucratic morass of dealing with other agencies that affect issues we deal with in some manner.  Mr. Coleman said there is no question that we do that at times.  He said the times it’s not done are primarily when based on our knowledge and experience there is no intervention and we can’t facilitate a solution because there isn’t one.  He said for every case where we try to intervene for a citizen who calls us because of problems they are having with different agencies there would still be numerous occasions where we wouldn’t be able to get anything done and then we become the bad guys.  Mr. Coleman said that staff tries to help people when we can.  He said it would be a very difficult policy to put guidelines or parameters on, and it would have a staffing impact.  He said if particular issues exist where we can put in more staff time it would be good to understand, but as a general rule it would be difficult to attain any positive results by doing it all the time for everyone.

 

Ms. Dorrel said we need to ensure that that we can provide contact information to help the citizen make the connection.  She suggested looking at additional ways to make it happen more consistently.  She said it would help if staff had an ombudsman frame of mind.  Mr. Coleman said we do this to some extent now.  He said as part of the orientation session we discuss our operating culture and that it is service to citizens.  He said regardless of whose function it is staff is there to provide information.  There are simple systemic things that can be done through the orientation process and departmental training process to make it more of a habit rather than a whim.  He said we can talk about the things that will make it an element of our culture by providing examples of phrases that shouldn’t be used. 

 

Mrs. Robison said she is concerned with how we check in with our citizens and whether we are devoting energy in the appropriate places.  She said we should have an organized assessment of our levels of service and look at how our budget process can report back to citizens about how well we’re doing.  Mr. Coleman said that the guiding principles that came out of the quality of life sessions will be incorporated into the current budget.  He said staff will begin revising goals and objectives and work measures to try to get more at the quality of life issues.  The budget and public information staff will take a look at what we can do using the current means with feedback from the community through technology, the citizen satisfaction survey, and other survey tools to try to get more of that information and relate it back to the budget and budget outcomes. 

 

Mr. Coleman said at the next session staff will review some of the police operations budget issues and then move into the capital budget. 

 

The work session ended at 6:31 p.m.

 

The next work session is scheduled for May 15, 2007 .