052819 budget presMay 28, 2019 Special Meeting -Budget Presentation
The Randolph County Board of Commissioners met at 6:00 p.m. for a special budget session
in the 1909 Randolph County Historic Courthouse Meeting Room, 145 Worth Street, Asheboro,
NC. Chairman Darrell Frye, Vice -Chairman David Allen, Commissioners Kenny Kidd, Maxton
McDowell, and Hope Haywood were present. Also present were County Manager Hal Johnson,
Finance Officer Will Massie, County Attorney Ben Morgan, and Clerk to the Board Dana Crisco.
The purpose of this meeting was to hear a formal presentation of the Proposed FY 2019-2020
County Budget and budget requests from the County and City Schools and Randolph Community
College.
Manager's Proposed Budget
County Manager Hal Johnson said, in accordance with North Carolina law, the County
Manager and County Finance Officer are required to present to the Board of County
Commissioners, and the citizens of Randolph County, a balanced budget for the next fiscal year,
2019-2020. The law requires that the budget ordinance be adopted by July 1, 2019.
This is also the beginning of a process that will lead to adoption of a final budget after review
and consideration by the County Commissioners.
Mr. Johnson stated presentations from Randolph Community College and the County and City
School Systems will be heard. On June 6th, budget presentations by our County Departments will
be heard, and on June 10th, the requests from Community Agencies and Volunteer Fire
Departments will be presented. A Public Hearing is also scheduled on June 10th.
He said he had been asked over the past few days, "What is the theme of the proposed County
Budget?" He replied, "Financial sustainability."
Mr. Johnson stated that citizens depend upon their county government in times of crisis. Our
goal is always to maintain services at a level that enables the County to provide for the protection
of the public health, safety, and well-being. However, this duty is always balanced with making
hard budgeting decisions that are financially sustainable.
The total proposed budget is $129,589,564. The budget is balanced. It maintains services at
necessary levels to address our most urgent needs and is financially sustainable.
No increase in property tax is recommended in the proposed budget. In this reappraisal year,
the proposed budget retains the revenue neutral tax rate of .6327.
He said no Board of Commissioners in the history of Randolph County has had to address as
many issues at one time as this Board of County Commissioners: multiple capital improvement
projects to enhance education and County services; Emergency Services expansion and
capabilities; law enforcement and the evolving needs of the Detention Center; the Opioid
Addiction Crisis and its impacts on Public Health; the expanding role mandated by federal and
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state legislation on Social Services; employee turnover, training, and recruitment of professional
staff, economic development challenges; and the list goes on and on.
Every hour of every day, somewhere in Randolph County, a County employee is interacting
and providing a service to our citizens, usually at a time of crisis to that citizen. At the February
Planning Retreat, adequate staffing issues were the primary concerns of several County
departments.
Departments requested 37 new positions. Due to a combination of revenue growth and cost
reductions, the Proposed Budget allows for funding the following 28 new positions:
• EMERGENCY SERVICES—Employees currently work a 24 hour shift with 48 hours off.
Many counties have gone to a 12 hour work shift to improve operational efficiency and
lessen turnover. Emergency Services has developed a transition plan that will be phased -in
over four years to be able to manage the change efficiently. An additional 24 positions over
the next four years would be needed for full implementation. The Proposed Budget adds ten
positions with the 12 hour shift phasing set to begin in January 2020.
• DETENTION CENTER—Renovation and expansion of the Detention Center is one of the
projects on the County's Capital Improvement Plan and construction will soon begin. New
positions will be necessary over the next few years to manage the overcrowding, special
populations, and construction disruptions, as well as establish proper staffing once the larger
facility is complete. Eight detention officers are included in the Proposed Budget.
• SOCIAL SERVICES—There has been a 45% increase in the number of youth in foster care
and a 66% increase in the number of children who require Child Protective Services. Social
Services has requested three additional positions in the Proposed Budget to better manage
the current work load.
• VETERANS OFFICE—There are over 15,000 veterans in Randolph County. With only
one Certified Veterans Officer, this department requested additional personnel to manage
the current workload. One more Certified Veteran Officer and one part-time Processing
Assistant will greatly enhance operational efficiency and are included in the Proposed
Budget. When Elections moves out of the Shaw Building, Veterans Services will have
adequate space to better serve our veterans as well.
• ANIMAL SERVICES—The role and demands on Animal Services has expanded greatly
over the past few years. In the past, animal control was primarily responsible for picking up
stray animals in order to prevent the spread of rabies. Following widespread interest in pet
adoptions, Randolph County recently expanded the animal shelter to provide necessary
space. Animal Services has not been adequately staffed to keep up with the current demand
and added responsibilities. To continue improving services, an additional four full-time
positions and one part-time position are included in the Proposed Budget.
Once these critical positions are filled and shelter operations are progressing, there is the
opportunity to establish Animal Services as a separate department of County government,
independent of Public Health. A transition from Public Health should be conducted in
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phases which would give time for administrative and operational adjustments with
minimal disruption in the continuity of service. Funds have also been included in the
Proposed Budget that would allow a future Director to determine any necessary expansion
of existing facilities for staff and animals.
THIRD YEAR POSITION CLASSIFICATION PLAN/COLA The third and final year
of the position classification plan will update the remaining one-third of our positions to
current market pay levels. This study should improve our ability to recruit and retain
qualified individuals. This update and a 1.5% cost of living adjustment (COLA) for all
employees is included in the Proposed Budget.
AGRICULTURAL EVENT CENTER—Due to lack of financing capacity for related
phasing opportunities, this project is currently not included in the Capital Improvement Plan
schedule. Accordingly, there are no operating, construction, or debt service costs for this
project in the 2019-20 Proposed Budget. Other financing opportunities, such as options for
additional sales tax, will continue to be investigated to keep this project active.
ARTICLE 46 SALES TAX—Since July 2010 through this fiscal year, the entire proceeds
of the Article 46 Sales Tax have gone to the Randolph Community College Capital Project
fund for pay-as-you-go facility projects. This has allowed them to complete not only the
Continuing Education/Industrial Center, but also the Cosmetology School, the renovation of
the Photography Department, and the construction of an Allied Health Center. In order to
properly finance our Capital Improvement Plan, the Board of Commissioners has redirected
some of the funds toward public school projects.
Beginning in 2019-20, the Article 46 projected sales tax revenues will be divided for
two purposes, a $500,000 transfer to the RCC Capital Project fund and the remainder to
the Randolph Capital Reserve to build resources for upcoming debt service on the
Trinity Middle School. This allocation is expected for four years.
Mr. Johnson introduced County Finance Officer Will Massie to present a more detailed review
of County revenues and expenditures outlined in the Proposed 2019/2020 Budget.
Finance Officer Will Massie said the Proposed FY 2019-2020 Budget totals $129,589,564,
which is an increase of $5,574,953 over the 2018-2019 Adopted Budget. To fund the entire
Requested Budget this year, a property tax rate of 66.01 cents per $100 valuation would have been
necessary. The next reappraisal of real property will be January 1, 2025.
Property Tax Levy Summary
• Estimated $11.6 billion valuation in FY 2019-20 Budget
• Use revenue neutral property tax rate of 63.27 cents per $100 valuation
• Collection rate 99.0%
• Proposed Budget total tax levy $72,891,026
The short-term priorities included in the Proposed Budget were as follows:
• Do not increase the existing property tax burden for our citizens in order to fund operations.
• Fund departmental operations at the level necessary to maintain public safety and other
critical services that citizens require.
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• Identify existing cost savings and reallocate resources to address critical needs in other
departments and services.
• Include new positions to maximize operational efficiency and to protect public safety.
• Maintain current level of financial assistance to public schools and the community college.
• Restrict use of appropriated fund balance for recurring costs.
• Implement the goals of the County Strategic Plan when possible.
• Commit new revenue stream from landfill towards accomplishing Strategic Planning
recommendations rather than County operations.
Current direct appropriations for education make up 24.4% of the Proposed 2019-20 Budget.
Including the portion of debt service paid by the County for school facilities and the transfer to the
RCC Capital Project, the County's commitment to Education is almost 33% of total expenditures.
The $12,794,038 needed to fund the County debt service requirements for FY 2019-20 is 9.9%
of this Proposed Budget; our Debt Policy limits this ratio to 15%. Eighty percent of existing debt
is related to educational facilities; the remainder is for County facilities and water projects.
Anticipating the issuance of further debt during 2019-20, there is $1,600,000 estimated interest
expense included in the Proposed Budget.
Mr. Massie said that five fire departments have asked for the revenue neutral rate for 2019-20
taxes. Twelve fire departments are requesting an unchanged fire district tax rate. Only one fire
department is requesting an increase in the tax rate.
County Capital Improvement Plan
Mr. Massie said that upcoming Capital Improvement projects are as follows:
Randolph County Schools
Trinity Area Middle School
Randolph County Government
Detention Center Renovation
Asheboro City Schools
Asheboro High School Renovation
$37,000,000 July 2019
$30,000,000 October 2019
$15,000,000 May 2020
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Requested
Proposed
Randolph County Schools
Current Expense
$20,553,508
$19,166,808
Current Capital
$ 2,180,880
$
2,175,288
Construction Capital
$ 950,000
$
750,000
Asheboro City Schools
Current Expense
$
5,766,000
$
5,469,192
Current Capital
$ 690,000
$
620,712
Construction Capital
$ 350,000
$
350,000
Randolph Community
College
Current Expense
$
2,804,061
$
2,618,000
Current Capital
$ 402,400
$
402,400
The $12,794,038 needed to fund the County debt service requirements for FY 2019-20 is 9.9%
of this Proposed Budget; our Debt Policy limits this ratio to 15%. Eighty percent of existing debt
is related to educational facilities; the remainder is for County facilities and water projects.
Anticipating the issuance of further debt during 2019-20, there is $1,600,000 estimated interest
expense included in the Proposed Budget.
Mr. Massie said that five fire departments have asked for the revenue neutral rate for 2019-20
taxes. Twelve fire departments are requesting an unchanged fire district tax rate. Only one fire
department is requesting an increase in the tax rate.
County Capital Improvement Plan
Mr. Massie said that upcoming Capital Improvement projects are as follows:
Randolph County Schools
Trinity Area Middle School
Randolph County Government
Detention Center Renovation
Asheboro City Schools
Asheboro High School Renovation
$37,000,000 July 2019
$30,000,000 October 2019
$15,000,000 May 2020
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He closed his presentation explaining that the landfill lease revenues of $1,069,670 for FY
2019-20 would be divided into $1,000,000 going to the Capital Reserve and $69,670 being put in
the Well -Being Fund. This fund was created during Strategic Planning Implementation and will
have $101,780 available with this addition in July.
Randolph Community College (RCC) Presentation
RCC President Bob Shackleford thanked the Commissioners for their support and partnership
and commended both Asheboro City and Randolph County Schools on continuing to make a
difference in students' lives. He first introduced Board of Trustees members present: Harold
Holmes, James Gouty, Bob Morrison, and Dr. Cynthia Schroder. He also mentioned staff
members attending the meeting.
He presented some statistics showing the value a student who graduates from RCC adds to the
community not only in employment but also savings to society and tax payers. He asked the Board
to consider their request of $2,804,061 which is $212,061 more than FYI 8-19. The increase is
due to the continuing rise in the cost of insurances, retirement, and everyday supplies.
Dr. Shackleford told the Commissioners that he was grateful to have such a great relationship
with them and to have their continued support. He also commented on his close relationship with
both the Asheboro City and Randolph County Schools and stated that, "We work that closely
together and support each other."
Randolph County Schools Presentation
Dr. Stephen Gainey, Randolph County Schools (RCS) Superintendent, presented the Randolph
County Schools budget request.
Dr. Gainey said RCS is requesting continuation costs of $798,000 which include increases for
insurances, salaries, utilities, and the loss of students to Charter schools. He said RCS would like
to offer a supplement increase of .5% to all employees in an attempt to stay competitive. That
request requires $630,000. The request for technology replacements and upgrades was in the
amount of $100,000. He stated that they had not asked for Capital Outlay funding last year, but
are seeking $200,000 to cover increased costs related to the "9 -Year Facility Upgrade/Repair
Plan." The total of all items is $1,528,000.
Dr. Gainey stated that the Archdale -Trinity Supplemental Tax Council requests that the revenue
neutral rate of 9.22 cents be approved.
He then thanked the Board for their partnership and continued support and told the Board how
much he appreciated everything they have done.
Asheboro City Schools Presentation
Dr. Terry Worrell, Asheboro City Schools (ACS) Superintendent, introduced Board Chairman
Gidget Kidd and staff members.
Dr. Worrell said that Asheboro City Schools is requesting $234,831 in their continuation budget
for expected increases in retirement and hospital benefits. She said that $165,000 was needed to
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retain and recruit staff and provide a .5% salary increase for local supplements. Current expense
funding of $5,766,000 is also included in their request as well as $1,040,000 in capital funding for
roofing, mechanical units, electrical, and site improvement at schools in the district. She also
asked the Board to approve the revenue neutral tax rate of 14.39 cents for the Asheboro City
Schools Supplemental Tax District.
Dr. Worrell concluded by thanking the Board for their continued support of Asheboro City
Schools and their vision.
Having no more presentations or questions, Chairman Frye went to close the meeting. Prior to
that, he commented on the collaboration between the three school systems being the best he has
ever seen during his time as a Commissioner.
Adjournment
At 7:25 p.m., there being no further business, a motion was made by McDowell, seconded by
Allen to adjourn.
Darrell Frye, Chairman David Allen
Kenny Kidd
Hope Haywood
Maxton McDowell
Dana Crisco, Clerk to the Board
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