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052918 BudgetMay 29, 2018 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. Commissioners Allen, Frye, Kidd, and McDowell were present. Also present were County Manager Hal Johnson; Finance Officer Will Massie; County Attorney Ben Morgan; Amanda Varner, Clerk to the Board; and Dana Crisco, Deputy Clerk to the Board. Chairman Allen announced Commissioner Stan Haywood passed away on May 22, 2018, and stated that the Board would formally recognize Commissioner Haywood's life and service at the June 4t' regular meeting of the Board of Commissioners. The purpose of this meeting was to hear a formal presentation of the Proposed FY 2018-2019 County Budget and budget requests from the County and City Schools, Randolph Community College, and Sandhills Center Mental Health. Manager's Proposed Budget Will Massie, Assistant County Manager/Finance Officer, presented the Proposed FY 2018- 2019 Budget, totaling $122,331,047 which is an increase of $297,633 over the 2017-2018 adopted budget. To fund the entire Requested Budget this year, a property tax rate of 69.65 cents would have been necessary. The next reappraisal of real property will be January 1, 2019. Property Tax Levy Summary • Estimated $10.7 billion valuation in FY 2018-19 Budget • Maintain property tax rate of 65.25 cents per $100 valuation • Collection rate 99.0% • Proposed Budget total tax levy $69,119,325 Mr. Massie said that in 2018-2019, property tax collection rates are estimated to be 99% and the collection of motor vehicle taxes has leveled off. Sales tax distributions have barely reached budget levels for 2017-2018. Mr. Massie said that management did not budget any anticipated sales tax growth for 2018-2019. 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. • Identify existing cost savings and reallocate resources to address critical needs in other departments and services. • Include the necessary funding for positions authorized in last year's budget, but no others. • Maintain current level of financial assistance to public schools and the community college. 05/29/2018 • 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 25% of the proposed 2018-19 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. He stated that the proposed appropriation for Sandhills Center was the same as last year at $844,000. Mr. Massie said departments are used to operating with lean budgets and are good at making the most of their public dollars. The Proposed Budget included additional costs where warranted, primarily for public safety. As part of this current year's budget, there were five positions added January 1; these positions are fully funded for the upcoming year. In addition, last year the Board of Commissioners stated that the four social worker trainee positions needed to be a priority in the 2018-19 budget. Accordingly, they are included in the Proposed Budget. Overall, most Randolph County departments are adequately staffed to meet the demand for services. However, six departments have made requests for a total of seventeen new positions. The positions would increase efficiency, preserve effective services, and maintain public safety. Other than the four social worker trainees, management has not recommended any new positions. There were no extra funds available to include these in the Proposed Budget. One position in the Register of Deeds was voluntarily eliminated. These seventeen departmental positions are listed on the Requests for New Positions page of the Overview section in the Proposed Budget. The Proposed Budget has 812 full-time and 27 part-time allocated positions. In addition, the 2018-19 Proposed Budget does not include any cost of living adjustment (COLA) for employees. The $11,710,345 needed to fund the County debt service requirements for fiscal year 2018-19 is 9.6% of this Proposed Budget; our Debt Policy limits this ratio to 15%. Seventy-nine percent 05/29/2018 Requested Proposed Randolph County Schools Current Expense $20,159,987 $18,625,508 Current Capital $ 2,202,130 $ 2,180,880 Construction Capital $ 750,000 $ 750,000 Asheboro City Schools Current Expense $ 5,457,000 $ 5,253,348 Current Capital $ 665,275 $ 615,120 Construction Capital $ 350,000 $ 350,000 Randolph Community College Current Expense $ 2,772,700 $ 2,592,000 Current Capital $ 402,400 $ 402,400 He stated that the proposed appropriation for Sandhills Center was the same as last year at $844,000. Mr. Massie said departments are used to operating with lean budgets and are good at making the most of their public dollars. The Proposed Budget included additional costs where warranted, primarily for public safety. As part of this current year's budget, there were five positions added January 1; these positions are fully funded for the upcoming year. In addition, last year the Board of Commissioners stated that the four social worker trainee positions needed to be a priority in the 2018-19 budget. Accordingly, they are included in the Proposed Budget. Overall, most Randolph County departments are adequately staffed to meet the demand for services. However, six departments have made requests for a total of seventeen new positions. The positions would increase efficiency, preserve effective services, and maintain public safety. Other than the four social worker trainees, management has not recommended any new positions. There were no extra funds available to include these in the Proposed Budget. One position in the Register of Deeds was voluntarily eliminated. These seventeen departmental positions are listed on the Requests for New Positions page of the Overview section in the Proposed Budget. The Proposed Budget has 812 full-time and 27 part-time allocated positions. In addition, the 2018-19 Proposed Budget does not include any cost of living adjustment (COLA) for employees. The $11,710,345 needed to fund the County debt service requirements for fiscal year 2018-19 is 9.6% of this Proposed Budget; our Debt Policy limits this ratio to 15%. Seventy-nine percent 05/29/2018 of existing debt is related to educational facilities; the remainder is for county facilities and water projects. In August 2018, Randolph County anticipates issuing approximately $35 million of debt for the Detention Center and Asheboro High School addition projects. The projected debt service of $921,625 is included in the 2018-19 Proposed Budget. Mr. Massie said that six fire departments have asked for fire district tax increases: Eastside, Guil-Rand, Julian, Level Cross, Tabernacle and Westside. County Capital Improvement Plan Mr. Massie said that current Capital Improvement projects are as follows: Randolph County Government Detention Center Renovation $18,000,000 Agri -Business Civic Center $55,000,000 Northgate Plaza renovations $ 6,300,000 Asheboro City Schools Asheboro High School Addition $17,000,000 Asheboro High School Renovation $15,000,000 Upgrades to Other Schools $ 2,500,000 Randolph County Schools Trinity Area Middle School $28,000,000 Mr. Massie said during 2017-18, the General Fund transferred $2.75 million to the priority capital projects to cover the initial design costs. It also transferred $3.7 million for the Northgate project and $2.3 million to the Capital Reserve. Another $3.6 million went to the Site Development Fund for land. This is a significant commitment of financial resources to expedite these capital projects. It will limit the General Fund's financial condition until fund balance is restored. Conservative budgeting should help us build fund balance back up to a stronger level. The County will need to be careful not to make short-term decisions that add unwelcome pressure to future budgets. County Manager Hal Johnson gave an update on the progress of the Strategic Plan and the programs it has helped implement. The Board was able to award $608,900 in community health and well-being grants in 2016 and another $20,000 in 2017. Some of these projects are complete, but most are still on-going. Another $240,000 was designated as the match for the Pathways to Prosperity grant from the Golden LEAF Foundation. The Commissioners have also used the funds committed for economic development to pay off debt on the West Randleman Business Park and to assist Seagrove-Ulah Water Authority in extending a sewer line in the southern part of the county. All these projects will be done without public tax dollars. Asheboro City Schools Presentation Dr. Terry Worrell, Asheboro City Schools (ACS) Superintendent, introduced Board members Chairman Kyle Lamb, Michael Smith, and Phillip Cheek; and staff members Mike Mize, 05/29/2018 Director of Facilities and Maintenance; and Harold Blair, Assistant Superintendent of Business and Finance. Dr. Worrell said that Asheboro City Schools is requesting $220,131 in their continuation budget for expected increases in retirement and hospital benefits. She said that $165,000 was needed to retain and recruit staff and provide a .5% salary increase for local supplements. Current expense funding of $5,457,000 is also included in their request as well as $1,015,275 in capital funding. She explained that $16,000,000 was for additions, renovations, and infrastructure upgrades at Asheboro High School and $650,275 for roofing, mechanical units, electrical, and athletic needs at other schools in the district. She also asked the Board to approve the current tax rate of 15 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. 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 $638,000 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 $615,000. The last request was for technology replacements and upgrades in the amount of $100,000. He said that for the third year in a row there was no additional Capital Outlay funding requested. The total of these four items is $1,353,000. Dr. Gainey stated that the Archdale -Trinity Supplemental Tax Council requests that the current rate of 9.54 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. 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: Chairman Mac Sherrill, Harold Holmes, Bonnie Renfro, Reynolds Lisk, Curt Lorimer, Dr. Carol Schroeder, Bob Morrison, and Shirley McAnulty. He introduced staff members Daffy Garris, Vice President for Administrative Services; Elbert Lassiter, Vice President for Workforce Development and Continuing Education; Suzanne Rohrbaugh, Vice President for Instructional Services; Chad Williams, Vice President for Student Services; Shelley Greene, Vice President for Institutional Advancement; and Hillary Pritchard, Registrar. 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 05/29/2018 Board to consider their request of $2,772,700 which is $180,700 more than FY17-18. 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 finished his presentation stating the RCC motto; creating opportunities, changing lives. Sandhills Center Presentation Victoria Whitt, Sandhills Center CEO, thanked the Board and Chairman Allen for his service on the Sandhills Center Board. Ms. Whitt stated that the Sandhills Center Board of Directors requested $844,000 in funding from Randolph County. This amount is the same as last year. She gave a brief update on the progress of the Asheboro Facility Based Crisis Center. She said that the 110 Walker Avenue building was being renovated to be a comprehensive care center. Renovations started in January with a goal of completion on October 15, 2018. The second floor has been completed for outpatient treatment with Daymark Services. The first floor will be renovated for 24-hour crisis assessment and 23 -hour observation beds. The third floor will house the 16 bed facility based crisis center which will normally keep clients for 7-10 days of treatment. In closing, she mentioned that Sandhills Center will be building a facility based crisis center for children in Richmond County with an opening in the fall of 2019. Adjournment At 7:51 p.m., there being no further business, a motion was made by Frye, seconded by Kidd to adjourn. David L. Allen, Chairman Darrell Frye Kenny Kidd Dana Crisco, Deputy Clerk to the Board Maxton McDowell 05/29/2018