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053023 Special Budget Meeting Intro and Schools May 30, 2023 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, and Commissioners Kenny Kidd, Maxton McDowell, and Hope Haywood were present. Also present were County Manager Hal Johnson, Assistant County Manager/Finance Officer Will Massie, Deputy Clerk Jenny Parks, and Clerk to the Board Dana Crisco. The meeting was livestreamed on Facebook and YouTube. Chairman Frye welcomed attendees and explained the purpose of the meeting. 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 proposed balanced budget for the next fiscal year, 2023-2024. The law requires that the budget ordinance be adopted by July 1, 2023. The total proposed budget is $169,195,179. This is an increase of 7.89% above the current budget. However, this increase in the total budget is primarily funded by revenue growth. Growth in property development and strong sales tax collections have allowed us to address critical needs of the County. The budget is balanced. It maintains services at necessary levels and is financially sustainable. The Proposed Budget was developed with the new real estate values that have been established through the property reappraisal. The revenue neutral property tax rate of 50 cents per $100 is being proposed versus the current 2023 rate of 63.27 cents per $100. In addition to the introduction to the proposed Fiscal Year (FY) 2023/24 County Budget, there will be presentations from Asheboro City Schools, Randolph County Schools, and Randolph th Community College. On June 8, budget presentations will be heard from County Departments. th On Monday, June 12, Fire Department presentations and requests from Community Agencies th will be considered. June 12 beginning at 6:30 p.m. is the time for the Public Hearing concerning th the proposed budget. Final Budget Adoption is scheduled for Monday, June 19. Mr. Johnson said no Board of County Commissioners in the history of Randolph County has had to address as many critical and life impacting issues as this Board of Commissioners has faced over the past 9 years. There have been multiple Capital improvement projects enhancing public education and County services, expanding Emergency Services, renovating courthouse facilities and the Detention Center, and expanding Public Health, Social Services, and Juvenile Crime Prevention space. Other challenges faced are funding needed for recruitment and training of professional staff, economic development, water and sewer infrastructures, the bankruptcy of Randolph Health, and public health and economic impacts of the Opioid/Fentanyl Crisis and the COVID-19 pandemic. th Mr. Johnson said this was his ninth budget as County Manager and his 48 budget as an officer of Randolph County Government. Every budget has brought its special challenges and priorities. 5/30/23 The budgetary challenges this year are to again anticipate uncertainty in the economy. Those uncertainties still exist in this proposed budget. Challenges in the preparation of the Proposed 2023/24 Budget include labor shortages, high inflation, high food and fuel costs, supply chain difficulties, a slowing projected economy, and sustainability of County services. Funding Priorities Mr. Johnson stated that the 2023/24 Proposed Budget has several priorities to address. The first priority is to improve the retention and recruitment of County employees by effectively retaining Randolph County’s current workforce and making sure the County is competitive with other local government. A labor market and cost of living adjustment of 5%, market pay adjustment for pressure point positions, and proficiency pay and pay step progression within salary Grades are included in the proposed budget. New Positions Forty new positions were requested (32 full-time and 8 part-time). Twelve new positions are included in the proposed budget (8 full-time and 4 part-time) with 8 reclassifications. The following 12 positions are recommended for approval in the July 1, 2023 budget: Social Services: 5 Income Maintenance Caseworkers Information Technology: 1 Public Safety Specialist Tax Department: 1 Real Property Tax Appraiser Juvenile Day Reporting: 2 Part-time Case Managers 1 Transportation Aide Child Support: 1 Part-time Office Assistant Administration: 1 Strategic Program Coordinator Emergency Services (EMS) has requested positions for an in-house Paramedic Academy with one Training Officer and ten EMT Paramedic Trainees to address the timely need of training staff amid the labor and shift shortages they are experiencing. This request will be considered during the Departmental Budget presentations next week. Reclassifications Reclassifications for several positions will be included to address current job requirements and standards. Capital Outlay The issue with Capital Outlay is how much funding will be needed for recurring Capital replacement costs. The Strategic Planning Initiatives are to continue with distribution of landfill revenue ($1,278,408) for specific community initiatives linked to strategic planning and approved by Commissioners. As of today, almost 40 different programs and community organizations have been provided funding through the Strategic Planning Initiatives. Property taxes from Toyota Battery, which will be limited this fiscal year, will be an ongoing revenue source for the County. During the budget process, discussion will be whether or not a special revenue fund should be established. Tax revenues received from Toyota could be used for special purposes which would include economic development. 5/30/23 Fire District Tax All 18 fire departments are requesting to maintain their FY23 Fire District Tax rates, not the proposed FY24 revenue neutral. There is need for paid personnel and income to address higher operating and Capital replacement costs. FY 2023-2024 Proposed Budget Will Massie, Assistant County Manager/Finance Officer, presented a review of County revenues and expenditures in the Proposed FY 2023-24 Budget. The FY 2023-24 Proposed Budget expenditure is $169,195,179. Departmental revenues and restricted resources are estimated at $34,044,985 with the remainder of the budget to be funded by General County Revenues of $135,150,194. Mr. Massie broke down how general County revenues are spent: County Services 55%, Education 27%, Debt Services 11%, Continency 3%, Transfer to Other Funds 2%, and Appropriations to Outside Agencies 2%. The property taxes, under North Carolina General Statute, are the primary way for local governments to fund their operations. The tax base is a combination of real and personal property. Randolph County has a four-year cycle on revaluation of real estate, which is intended to get the values more in line with what the current value is. The last reappraisal in 2019 showed Randolph County Tax Base was $11,814,520,055. Since that time, the County has grown steadily over the past four years. The projection for next year 2023-24 is $16,643,650,878, which is an average growth over the past four years of 2.71%. This budget has a property revaluation at $16,643,650,878. It will maintain the revenue neutral rate of 50.00 cents per $100 valuation. The collection rate is 99%. One cent tax rate provides $1,647,721. The total levy is $82,386,072, which is a 5.9% rise. Mr. Massie explained the FY22-23 sales tax collections. Actual collections are about 14.7% above last year. Randolph County is about 10% above budget, which give some additional funding in the proposed budget. General Assembly’s Fiscal Research Division, which provides advice and projections for the North Carolina General Assembly, projected this year to finish out at about 5.8% and only a seven tenths of a percent growth in sales tax revenue in FY2024. They are expecting to see a substantial effect of a recession on local spending in the state. There is an estimated 2.0% growth in regular tax collections from FY2023. Sales taxes are up almost 27% of total revenues. There is an estimated $4,566,067 for Medicaid Hold Harmless. Article 46 tax is dedicated to Capital Reserve and Randolph Community College (RCC). Mr. Massie reported that the appropriated fund balance includes Capital Outlay at $1,991,150; Education at $1,250,000; Restricted Law at $67,000; and Restricted Health at $1,400,350. He gave a summary of revenues and other financing sources and shared several charts showing national trends regarding employment, wages and salaries, and benefits, and wage growth. Also included in the proposed budget is funding for essential public safety department vehicles, most Sheriff’s cars, and two replacement ambulances. The following details that funding: 5/30/23 Requested Proposed Sheriff 35 - $1,633,150 21 - $995,650 EMS Ambulances 2 - $580,000 2 - $580,000 Other 4 - $210,000 4 - $210,000 Building Inspections 3 - $90,000 3 - $90,000 Animal Services 2 - $90,000 1 - $45,000 Public Buildings 2 - $90,000 Not funded Cooperative Extension 1 - $45,000 Not funded Mr. Massie a brief overview of funding requests, current expenses, current capital, and construction capital for Asheboro City Schools and Randolph County Schools. He also gave a brief overview of the request from Randolph Community College (RCC). Education accounts for 21.5% of the total budget. Mr. Massie reported that there is no anticipation of any new debt this year. The USDA loan closing last week is built into the budget, as well as the hospital debt. The 2023-24 debt service total is $17,081,168. Mr. Massie reported on the School District Tax Fund. Archdale Trinity School Tax District revenue neutral tax rate goes to 7.03 cents from 9.22 per $100 value. Asheboro City School Tax District revenue neutral tax rate goes to 11.53 cents from 14.39 per $100 value. The Public School Building Capital Fund (Lottery funds) were cut back from $1,600,000 to $1,300,000 due to the proceeds not coming in as strong as in the past. Mr. Massie said that all 18 fire departments are requesting to maintain their FY23 fire district tax rates, not the FY24 revenue neutral. The fire departments continue to need paid personnel and have higher operating replacements costs. The Budget Ordinance will have other annual funds as in the past, with the addition of the Workforce Initiative Fund. The County received $750,000, which was contracted and distributed to the school systems, community college, and the Piedmont Workforce Board. Hopefully this funding will continue. In the Capital Improvement Plan current capital projects are in various stages of completion and no new debt is being considered during FY 23-24. For the Strategic Planning allocation, $1.2 Million is expected in July. There is $727,164 remaining that has not been committed at this time. There will an estimated $2,005,572 available sometime in July 2023. Asheboro City Schools Presentation Dr. Aaron Woody, Asheboro City Schools (ACS) Superintendent, thanked Commissioners for their leadership and presented budget requests for Asheboro City Schools. He recognized several Board of Education members and Administrators in attendance. Dr. Woody said the ACS team has spent a lot of time over the past few years engaged in forward thinking, strategic planning and looking at metrics across the community and the state. ACS has 5/30/23 a priority to educate and lift up their students and to help provide spaces for them to find their full potential and to connect in all of the economic and social opportunities that are before them. He shared several of ACS priorities and thanked the Board for their continued support of having safe, clean and updated facilities. Dr. Woody shared with the Board several items that ACS focuses on daily. Continuing their investment in their students and staff is one of their top priorities. Dr. Woody asked the Board apply the levy of taxes at a rate of 11 53 cents per $100 for the Asheboro City Schools Supplemental Tax District. Asheboro City Schools requested $320,000 for the Continuation Budget for expected increases in retirement and health insurance as well as for salary increases. Total current expense funding of $6,707,719 is included in this request. Dr. Woody gave an overview of Year 9 of the 10 Year Capital Improvement Plan and requested total capital outlay of $1,100,000. The Capital Outlay Budget Request is for $1,071,830, which is the same as the funding provided for the 2022-2023 school year. He also gave a brief update on the Asheboro High School renovation and showed photographs of the progress. Dr. Woody shared slides regarding ACS construction updates and renovations. He thanked the Board for their continued support. Randolph County Schools Presentation Dr. Stephen Gainey, Randolph County Schools (RCS) Superintendent, introduced several staff members and administrators in attendance and presented the Randolph County Schools budget request. Dr. Gainey said RCS is requesting continuation costs of $711,000 which include insurance increases, matching retirement increases, salaries, charter school growth, liability, and utilities. The breakdown of the continuation cost request is as follows, with the Capital Outlay requests being zero: Salary increases lead custodians and school treasurers - $173,000 Additional school resource officers - $114,000 Supplement increase for classified employees (1.5%) - $430,000 The total current expense and capital outlay requests from RCS is $1,428,000. Randolph Community College Elbert Lassiter, Interim President/Vice President for Workforce Development and Continuing Education for Randolph Community College (RCC), introduced members of the college leadership team in attendance. He thanked the Board for their support. Mr. Lassiter shared what RCC has done over the past year with the funds given to them by the Board. He said that behind every dollar there is a student. He shared several slides of graduation successes from RCC as well as what RCC has done this past year. The budget request for RCC includes increases in retirement, insurance, worker’s comp, social security, utilities, housekeeping staff and supplies, and facilities repairs. The budget requests for 5/30/23 FY2023-24 are for total operational funds request in the amount of $3,220,711 with the percentage increase over the prior year of 7.91%, and future capital construction/renovations and repairs in the amount of $402,400. He thanked the Board for their support and continued funding. Chairman Frye thanked Mr. Lassiter for RCC’s commitment to the school, to the County, and to the students through this interim process. He also thanked Mr. Lassiter for a job well done in acting as the Interim President of RCC and keeping things moving. Vice-Chairman Allen said that he appreciates the open dialog that the Board continues to have with the school systems. Commissioner Haywood said she recently completed a leadership class from the School of Government. She said it was interesting to hear stories from other parts of the state about communications between school board members and their county commissioners. She stated that she is proud of the relationship this Board has with the local school systems. It is not like this in other counties. Adjournment At 7:25 p.m., on motion of Allen, seconded by Kidd, the Board voted 5-0 to adjourn. ________________________________ ______________________________ Darrell Frye, Chairman David Allen _________________________________ ________________________________ Kenny Kidd Maxton McDowell _________________________________ ________________________________ Hope Haywood Jenny Parks, Deputy Clerk to the Board 5/30/23