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062209June 22, 2009 The Randolph County Board of Commissioners met in special budget session at 6:00 p.m. in the Commissioners Meeting Room, County Office Building, 725 McDowell Road, Asheboro, NC. Commissioners Holmes, Frye, Haywood, Kemp and Lanier were present. Close-out Budget Amendments for FY 08-09 Chairman Holmes announced that no close-out budget amendments would be needed this year. Addition of Agenda Item: Approval of Southern Health Partners Contract Chairman Holmes announced that Item B. Approval of Southern Health Partners Contract had been added to the agenda. Assistant County Manager/Finance Officer Will Massie stated that the County contracts with Southern Health Partners to provide medical services for jail inmates. The Sheriff is satisfied with the services provided and would like to renew the contract for another year. The renewal does not include a rate increase. Because the total contract exceeds the Manager's authorization limit, Commissioner approval is required. On motion of Haywood, seconded by Lanier, the Board voted unanimously to approve the renewal of the Southern Health Partners contract for the twelve months ended June 30, 2010 at the base monthly fee of $26,181.40 and authorized the County Manager to sign the contract extension. Note: Commissioner Haywood asked that the minutes show that the above contract was part of the presented budget by the Sheriff s Department. Adoption of Departmental Fee Schedules On motion of Frye, seconded by Haywood, the Board voted unanimously to leave all departmental fees unchanged, as requested. Approval of Fire District Tax Rates On motion of Frye, seconded by Haywood, the Board voted unanimously to leave all current fire district tax rates unchanged for FY 09-10, as requested. Report on County Ambulances Donovan Davis, County Emergency Services Director, answered questions from the Board about the need for better positioning of ambulance bases in the county. Currently there are no bases south of Hwy 64 and response time to remote parts of the county can be as high as 35-40 minutes. Mr. Davis said that he has already started discussions with various fire departments about the possibility of partnering with them to use some fire department facilities as locations for ambulances. He said that there were some Federal Stimulus grants available that such a project might qualify for, but the grants applications would have to be very carefully written. The Board asked Mr. Davis to do more research on ambulance repositioning in order to make a report to the Board later in the year. Discussion and Adoption of School District Tax Rates and FY 09-10 Budget Ordinance Commissioner Frye stated that he would like to find a way to fund the request for the balance needed ($58,000) to buy two new ambulances rather than the remounts, which had already been budgeted (remounts) and the Central Boys and Girls Club request for $25,000. He also said that he had heard during a State board meeting in Raleigh over the past weekend that although Counties would be affected by the State's budget, they wouldn't be as adversely affected as feared initially. He said that if the State imposed a goods and services and recreation sales tax, Counties would get their share as well, which would provide some much-needed revenue for us. Within two years, the State will transfer responsibility of roads to Counties. Counties may no longer get ADM funds. He said it also appears that the State will no longer be paying rent for local Probation and Parole offices, which would then fall to the Counties to pay. Commissioner Frye said that the budget process started months ago with the schools. Not knowing what the State would do, the schools systems included salary increases in their requested budgets from the County. He asked County Schools Superintendent Donald Andrews if he thought the State would be including salary increases for teachers. Mr. Andrews responded that he did not think the State would include salary increases in the State's final budget. If this is the case, the County Schools could use those funds in other areas or return the money to the County. Commissioner Frye suggested using some of the funds intended for raises for the schools to fund the needed ambulances and the Central Girls and Boys Club. Commissioner Kemp suggested using unused funds from the 2006 COPS financing recently earmarked for the road realignment project at Providence Grove High School to fund the Central Boys and Girls Club, the ambulances and debt service on the schools. He said that it appears that the State would not come through with the $600,000 that it had originally promised for the realignment project. On motion of Frye, seconded by Lanier, the Board voted unanimously 1) to reduce the County Schools proposed appropriation by $66,574 and the City Schools proposed appropriation by $16,426 and use this money to fund the two new ambulances ($58, 000) and the Central Girls and Boys Club ($25, 000); and 2) to set the Asheboro City School District tax rate at $0.1385 and the Archdale - Trinity School District tax rate at $0.090. The Board also indicated its intention that any unused monies from the 2006 COPS financing be used for related debt service. Commissioner Haywood thanked DSS Director Beth Duncan for the letter that her Board had sent to the Commissioners and said that they would keep the requests in mind and get to them as they were able to. Commissioner Kemp spoke, referring to the Proposed Budget Message. He stated the Message made it very clear that a significant new revenue source must be identified. He said that the loss of ADM funds from the State and the opening of the second new high school have added over $3 million to the County's budget needs. Commissioner Kemp added that although the Boards have been good stewards with the County tax dollar, no one anticipated this bad economy, and he doesn't believe it will improve soon. He said that the Board committed itself to funding the two new high schools a few years ago and now it's time to pay. Former County Manager Frank Willis warned us that the new high schools and water line would cost about 12 cents on the tax rate. Last year, although Commissioner Kemp wanted a 3 -cent increase, the Board voted for only a 2 -cent increase. He said that he hoped this Board had the intestinal fortitude to step up to the plate and vote for a 3 - cent tax increase this year. If the Board doesn't, then at least a 10 -cent increase will be required next year. Plus, no increase this year will put a terrible strain on our fund balance and will likely put ourselves in a situation we can't get out of. He argued that for a $100,000 home, a 3 -cent tax increase would cost a property owner only $30 more a year; it won't create that much of a burden for folks. Commissioner Haywood said that he wasn't on the Board of Commissioners when the decision was made to build the new high schools. He said that he was against a tax increase this year because the people in his district have told him they can't afford an increase. He said that he had rather we use our fund balance rather than the State or Federal Government taking it from us. Commissioner Lanier said that he was also against a 3 -cent increase this year because people are struggling and can't afford it. If it increases this year, businesses will go under. Commissioner Frye said that he has had ten times more calls this year asking that the tax rate not be raised than in prior years. He said that he thinks it's a real possibility that the County may see some additional revenue from some new sales tax increases that the State is proposing. Plus, he hopes the economy will improve next year. Commissioner Haywood said that the County really needs to pass the'/4-cent sales tax referendum as an alternative to a property tax hike. On motion of Frye, seconded by Haywood, the Board voted 4-1, with Kemp opposing, to adopt the FY 09-10 budget ordinance (ordinance follows below), as amended (to include the previous action above that reduced the county and city schools proposed appropriation thereby adding funding for two ambulances in the Emergency Services proposed budget and funding for the Central Girls and Boys Club and set the Asheboro City and Archdale -Trinity School Districts tax rate) and with the unchanged Ad Valorem tax rate of 55.5 cents/$100 valuation. Be It Ordained by the Board of Commissioners of Randolph County, North Carolina: Section 1. The following amounts are hereby appropriated in the General Fund of Randolph County for the fiscal year beginning July 1, 2009 and ending June 30, 2010: General Government: Governing Body $ 147,285 Administration 2,739,126 Information Technology 1,408,879 Tax 2,023,227 Elections 378,452 Register of deeds 685,180 Public Buildings 2,329,002 Public Safety: Sheriff 13, 735, 027 Emergency Services 4,868,961 Building Inspections 852,587 Day Reporting Center 665,194 Other Public Safety Appropriations 243,146 Economic and Physical Development: Planning and Zoning 606,043 Cooperative Extension Service 428,070 Soil and Water Conservation 172,137 Other Economic and Physical Development Appropriations 1,596,609 Environmental Protection: Public Works 3,225,861 Human Services: Section 2 Section 3. Section 4 Public Health 5,161,182 Social Services 19, 389, 058 Veteran Services 83,294 Other Human Services Appropriations 2,537,561 Cultural and Recreational: 18, 253, 221 Public Library 1,883,940 Other Cultural and Recreational 8,589,399 Appropriations 15,000 Education 28, 683, 506 Debt Service 16, 360, 944 Other Financing Uses: 7,402,270 Interfund Transfers Out 1.442.950 Total $111,662,221 It is estimated that the following revenues will be available in the General Fund for the fiscal year beginning July 1, 2009 and ending June 30, 2010: Ad Valorem Property Taxes $ 55, 265, 460 Local Option Sales Taxes 16, 592, 000 Other Taxes 1,314,000 Unrestricted Intergovernmental 456,900 Restricted Intergovernmental 18, 253, 221 Permits and Fees 1,122, 000 Sales and Services 8,589,399 Investment Earnings 510,000 Miscellaneous 432,771 Other Financing Sources: Appropriated Fund Balance 7,402,270 Interfund Transfers In 1.724.200 Total $111,662,221 The following amounts are hereby appropriated in the Emergency Telephone System Fund of Randolph County for the fiscal year beginning July 1, 2009 and ending June 30, 2010: E-911 System Total $ 710,000 It is estimated that the following revenues will be available in the Emergency Telephone System Fund for the fiscal year beginning July 1, 2009 and ending June 30, 2010: NC 911 Board Distributions $ 700,000 Investment Earnings 10,000 Total $ 710,000 Section 5 Section 6. Section 7. Section 8 The following amounts are hereby appropriated in the Landfill Closure Fund of Randolph County for the fiscal year beginning July 1, 2009 and ending June 30, 2010: Landfill Post -Closure Expenditures $ 86,500 It is estimated that the following revenues will be available in the Landfill Closure Fund for the fiscal year beginning July 1, 2009 and ending June 30, 2010: Investment Earnings $ 23,000 Appropriated Fund Balance 63,500 Total $ 86,500 The following amounts are hereby appropriated in the Fire Districts Fund for the fiscal year beginning July 1, 2009 and ending June 30, 2010: Tax Distributions $ 6,224,479 It is estimated that the following Fire District revenues will be available during the fiscal year beginning July 1, 2009 and ending June 30, 2010: Ad Valorem Property Taxes $ 6,224,479 Section 9. There is hereby levied for the fiscal year beginning July 1, 2009 and ending June 30, 2010, a County -wide tax rate of $ 0. SSS per $100 valuation of estimated taxable property situated in the County. The ad valorem tax is based on a total estimated property valuation of $10,100, 000, 000, with an expected collection rate of 97.2%. Section 10. For the fiscal year beginning July 1, 2009 and ending June 30, 2010, there is hereby levied in the County of Randolph a dog license fee at the rate of $3.50 per dog. Section 11. There is hereby levied for the fiscal year beginning July 1, 2009 and ending June 30, 2010, the following School District tax rates per $100 valuation of estimated taxable property situated in the special district. These levies are for the purpose of raising revenues to supplement school programs within each respective district. Fire District Net Valuation Tax Rate Estimated Approved Asheboro School District $ 2,133, 556, 095 $ 0.1385 Archdale -Trinity School District $ 2, 322, 091, 566 $ 0.0900 Section 12. There is hereby levied for the fiscal year beginning July 1, 2009 and ending June 30, 2010, the following Fire District tax rates per $100 valuation of estimated taxable property situated in the special district. These levies are for the purpose of raising revenues for fire protection within each respective district. Fire District Net Valuation Tax Rate Estimated Approved Bennett Fire District $ 42, 000, 000 0.070 Climax Fire District $ 461, 000, 000 0.100 Coleridge Fire District $ 223, 500, 000 0.073 Eastside Fire District $ 480, 000, 000 0.080 Fairgrove Fire District $ 365, 000, 000 0.065 Farmer Fire District $ 196, 000, 000 0.075 Franklinville Fire District $ 460, 600, 000 0.085 Guil-Rand Fire District $ 2, 030, 000, 000 0.100 Julian Fire District $ 87, 600, 000 0.100 Level Cross Fire District $ 227, 200, 000 0.100 Northeast Fire District $ 133, 300, 000 0.090 Randleman Fire District $ 239, 000, 000 0.100 Seagrove Fire District $ 184, 700, 000 0.100 Sophia Fire District $ 131, 500, 000 0.100 Southwest Fire District $ 61, 500, 000 0.100 Staley Fire District $ 153, 800, 000 0.100 Tabernacle Fire District $ 260, 000, 000 0.100 Ulah Fire District $ 490, 600, 000 0.061 Westside Fire District $ 643, 600, 000 0.090 Section 13. Pursuant to the requirements of North Carolina General Statute §159-9, the County Manager is appointed to serve as Budget Officer. The County Manager and the Assistant County Manager, as his designee, are hereby authorized to transfer appropriations as contained herein under the following conditions: a. The Budget Officer, or his designee, may transfer amounts between line item expenditures within a department without limitation and without a report being required. b. The Budget Officer, or his designee, may not transfer amounts between departments of the General Fund or between funds, except as approved by the Board of County Commissioners in the Budget Ordinance, as amended. Section 14. The Budget Officer, or his designee, may make cash advances between funds for periods not to exceed one hundred eighty days without reporting to the Board of Commissioners. Any advances that extend beyond one hundred eighty days must be approved by the Board. All advances that will be outstanding at the end of the fiscal year must be approved by the Board. Section 15. Copies of this Budget Ordinance shall be filed with the Clerk to the Board of Commissioners of Randolph County and furnished to the Assistant County Manager/Finance Officer for direction in the collection of revenues and the expenditure of amounts appropriated. Section 16. This Budget Ordinance will be effective on July 1, 2009. Upon motion of Commissioner Frye, seconded by Commissioner Haywood, the foregoing Budget Ordinance was passed with the following vote: Ayes: Commissioner Harold Holmes Commissioner Darrell Frye Commissioner Stan Haywood Commissioner Arnold Lanier Noes: Commissioner Phil Kemp I, Cheryl A. Ivey, Clerk to the Randolph County Board of Commissioners, do hereby certify that the foregoing Ordinance was duly adopted by the governing body of Randolph County at a special meeting on June 22, 2009, a quorum being present. The 22nd day of June, 2009. Clerk to the Board There being no further business, the Board adjourned at 7:00 p.m. J. Harold Holmes, Chairman Phil Kemp Arnold Lanier Darrell L. Frye Stan Haywood Cheryl A. Ivey, Clerk to the Board