052912May 29, 2012
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.
Commissioners Holmes, Frye, Haywood and Lanier were present. Commissioner Kemp was
absent. The purpose of this meeting was to hear a formal presentation of the Proposed FY 2012-
2013 Budget and budget requests from the County and City Schools, Randolph Community College
and Sandhills Center Mental Health.
Will Massie, Assistant County Manager/Finance Officer, presented the Proposed FY 2012-2013
Budget via PowerPoint presentation. Mr. Massie said that although state and national statistics
indicate the economy is slightly improving, Randolph County is not showing such a rebound, and
he does not expect much growth in major revenue sources for at least the next year. He listed the
following factors facing Randolph County that are affecting the budget:
— Decline in property values and lack of new development which negatively impact
other taxes and fees, such as zoning permits, building inspection fees, and well and
septic permits, as well as, Register of Deeds fees.
— Growth /replacement is not keeping up with personal property depreciation -
especially vehicles
— More reliance on property taxes than ever before
— Less sales taxes as revenue source
— Less Federal and State financial assistance
— Loss of Public School Building Capital Funds
— Cost shifting from State to Counties
— Higher user fees
— Lower level of departmental services
— Farm deferrals continue to grow -28.37% of total County acreage is now farm
deferred
Mr. Massie listed the following fiscal pressures the County will continue to face:
— Less County revenues due to the poor economy
— Repercussions of State budget crisis passed on to Counties by actions of NC General
Assembly
— Increased demand for many County services
— More challenging to maintain existing services
— No one wants to raise property tax rate
— Use of reserves to balance budget won't last forever
— Impact of State Budget on the County Budget
• Loss of ADM portion of Public School Building Capital Fund
2006-07 $1,785,702
2007-08 $1,505,256
Since $ -0-
Redirected lottery proceeds
Child Support Enforcement (34% local) is now County's responsibility
Reduction in State grants
Mr. Massie reviewed the following highlights in the proposed budget:
— FY2012-2031 Proposed Budget totals $111,899,955 (0.74% increase from last year)
— Increases property tax rate by 1.4 cents to 60.0 cents per $100 valuation
— Declining sales tax growth at 2%
— Continued use of Appropriated Fund Balance
— Requested new positions —
• Sheriff: 4 new positions and one upgrade
• Emergency Services: 6 paramedics & 4 telecommunicators
• Public Works: accountant and one upgrade (only ones in the proposed budget due to
Public Works reorganization to balance current workload)
— No adjustment to employee pay plan
— 2.0% percent increase in employee medical costs
— Education — no proposed increases for Current Expense or Current Capital, although the
ratio of average daily membership (ADM) between the County Schools and City Schools
shifted by .64% for FY 12-13, resulting in more Current Expense and Current Capital
funding for the City Schools.
— Requests from outside agencies not included in the proposed budget:
• Senior Adults Assn — $10,000 Home Delivered Meals
• Family Crisis Center — $10,000 additional operating
• NC Central Park - $5,000 operating
• Innovative Opportunities — $30,000 additional operating and $49,013 capital
• YMCA - $50,000 capital
— Seven fire districts are requesting an increase in fire tax rates: Bennett, Climax, Eastside,
Fairgrove, Franklinville, Guil-Rand, Westside
Mr. Massie reviewed the following highlights in the Capital Improvement Plan:
— The County has three current capital projects: Technology, RCC Continuing Education and
Industrial Center (Article 46 Sales Tax), and Balfour School (financing method to be
determined during budget process).
Requested
Proposed
Randolph County Schools
Current Expense
$17,487,551
$ 17,168,733
Current Capital
$ 4,981,547
$ 2,215,057
Asheboro City Schools
Current Expense
$ 4,622,466
$ 4,495,284
Current Capital
$ 603,694
$ 579,967
Construction Capital
$ 2,170,913
$ 250,000
Randolph Community
College
Current Expense
$ 2,463,347
$ 2,328,000
Current Capital
$ 485,000
$ 485,000
— Requests from outside agencies not included in the proposed budget:
• Senior Adults Assn — $10,000 Home Delivered Meals
• Family Crisis Center — $10,000 additional operating
• NC Central Park - $5,000 operating
• Innovative Opportunities — $30,000 additional operating and $49,013 capital
• YMCA - $50,000 capital
— Seven fire districts are requesting an increase in fire tax rates: Bennett, Climax, Eastside,
Fairgrove, Franklinville, Guil-Rand, Westside
Mr. Massie reviewed the following highlights in the Capital Improvement Plan:
— The County has three current capital projects: Technology, RCC Continuing Education and
Industrial Center (Article 46 Sales Tax), and Balfour School (financing method to be
determined during budget process).
— Other Requested Projects by Emergency Services: Replacement of 911 Center, two new
ambulance bases, cardiac monitors, all totaling $5,920,000
Mr. Massie said that the financial crisis resulting from sub -prime mortgage failures caused the
Federal Reserve to dramatically lower interest rates, which reduces the interest earnings available to
us. The Federal Reserve has maintained the Federal discount rate during the past year near zero.
Our current average return is .56%. As we spend fund balance, we are in effect shrinking our
available cash reserves. Accordingly, we cannot expect our investment earnings to match the past
year, even if the Fed begins raising interest rates.
Mr. Massie concluded by saying that Randolph County will continue to face issues that will put
additional pressure on our property tax rate. County officials have a responsibility to communicate
the status of departmental operations to the Commissioners and to the public; the Board has the
responsibility to find the right balance between meeting the public's demand for services and the
public's desire to pay for them.
Randolph Community College (RCC)
RCC President Dr. Robert Shackleford stated that the college has continued to increase in
enrollment, largely due to the loss of jobs in the area. The college continues to do customized
curriculum training for area business partners to keep business and industries going in our area,
stating that over half of the PEMMCO employees are RCC graduates. Other area businesses, such
as Hyosung USA, Teleflex, EFI, Energizer and Technimark also use RCC for training of their
employees. Dr. Shackleford stated that RCC is adding classrooms in the following areas:
Randleman, the east side of Asheboro, Seagrove, Ramseur and Liberty.
Dr. Shackleford said that RCC's request is $135,347 over last year to cover costs and staff for
the Continuing Education portion of the campus and for retirement and health care costs increases.
He mentioned that although enrollment is expected to increase by as much as 25%, hefty state
funding cuts are expected again for next year.
Dr. Shackleford thanked the Board for their continued support of RCC and the citizens of
Randolph County.
Randolph County Schools
Donald Andrews, Randolph County Schools Superintendent, presented the Randolph County
Schools budget request, and began by outlining the strategic goals of the system:
1. Produce globally competitive students
2. Led by 21st Century Professionals
3. Healthy and Responsible Students
4. Leadership and Innovation
5. Governed and supported by 21st Century Systems
Mr. Andrews said that due to the depletion of the Jobs Education funding and an increase in the
State discretionary reduction, the outlook for Randolph County Schools appears to be a budget
deficit of more than $4 million. The Board of Education has approved a reduction / balancing plan,
which includes: reducing school supply allotments and staff development / remediation allotments,
by approximately $5.50/student, increasing child nutrition indirect cost, borrowing $250,000 from
the textbook fund, using additional $300,000 of Low Wealth allotment, allocating a portion of fund
balance as part of a two-year plan, reducing Teacher Assistants and Media Assistants to 80%
employment, and a discretionary reduction for schools based on ADM, to offset the shortfall.
Mr. Andrews stated that the County Schools are requesting $17,487,551 in Current Expense
funding, which is a $191,000 increase over last year or 1.1%, to be utilized for rising employer
insurance and retirement costs.
The Capital Outlay request totals $4,981,547 and represents a 123% increase over last year.
Funds would be used to purchase property for a Randleman area elementary school, and updates to
the four original high schools.
Mr. Andrews said that the Archdale -Trinity Special Tax District has requested that their
supplemental tax rate of $0.09 remain the same.
In conclusion, Mr. Andrews said they continue to watch the State's budget in hopes reductions in
funding will not be as significant as initially projected.
Asheboro City Schools
Dr. Diane Frost, Asheboro City Schools (ACS) Superintendent, reported that the federal
stimulus funds that assisted in filling the budget shortfalls for the past three years will be depleted in
2012-13. This is a loss of $1.3 million in funding to ACS. Also, the North Carolina General
Assembly's biennium budget calls for increasing the discretionary reduction to almost $1.6 million
in 2013-13. To offset the reductions, Dr. Frost said they are relying on strategically planned
carryover funds, relief from federal sanctions of No Child Left Behind, and one-time state fund
expenditures that will not be repeated in 2012-2013.
The ACS goal and budget request was to prepare for growth in enrollment, which is estimated at
approximately 110 students in the middle and high school population; and reinstate critical vacant
positions (3 additional teachers at $150,000, reinstate 1 maintenance position at $50,000); and funds
to cover increase in hospitalization and retirement rates at $55,000.
The ACS Board of Education is requesting $4,622,466 in current expense, which is an increase
of $255,000 over the 2011-12 amount of $4,367,466. She also asked that their Supplemental Tax
Rate remain at $.1385/100.
Dr. Frost stated that the ACS Board of Education has outlined four major priorities for capital
outlay projects over the next ten years, which was presented to the Board of Commissioners in
March 2010 and at additional meetings over the past several years, as follows:
1. Replacement of Old Balfour School (Early Childhood Development Center)
2. Additions and renovations at Asheboro High School
3. Addition at North Asheboro Middle School
4. New Elementary School
Dr. Frost expressed their appreciation to the Commissioners for their approval in March 2012
to move forward with the replacement of the Old Balfour School in order to provide a safe,
efficient, handicapped accessible school setting for learning and growing.
The ACS is requesting $2,774,607 for capital improvements for the 2012-13 school year, as
follows:
• ECDC Project (Old Balfour) $1,920,913
• Current Capital 603,694
• Construction Capital 250,000
$2,774,607
Dr. Frost thanked the Commissioners for their continued support to Asheboro City Schools.
Sandhills Mental Health
Victoria Whitt, Sandhills Director stated that their request of $844,000 is the same as last year.
She said that this is the eighth consecutive year that Sandhills has not requested an increase in
County funding.
Ms. Whitt updated the Commissioners regarding the potential merger with Guilford County,
stating that a tentative agreement has been reached and is being reviewed by legal staff
Adjournment
There being no further business, the meeting adjourned at 8:07 p.m.
J. Harold Holmes, Chairman Darrell L. Frye
Stan Haywood
Amanda Varner, Deputy Clerk to the Board
Arnold Lanier