060121June 1, 2021 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, and Clerk to the Board Dana
Crisco. The meeting was livestreamed on Facebook and YouTube.
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, 2021-2022. 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. The law requires that the
budget ordinance be adopted by July 1, 2021.
The total proposed budget is $143,402,144. The budget is balanced. It maintains services at
necessary levels to address the County's most urgent needs. The proposed budget is financially
sustainable. No increase in property tax is recommended in the proposed budget. The County tax
rate remains at .6327 per $100 valuation.
Mr. Johnson stated that, in addition to the introduction to the Proposed FY 2021/22 County
Budget, presentations from Asheboro City Schools, Randolph County Schools, and Randolph
Community College will be heard. On June l Ota', budget presentations will be heard from County
Departments, and on June 14th, the Board will consider requests from Community Agencies and
the Fire Departments. Two public hearings are also scheduled for June 14th. Final review and
adoption of the County budget is scheduled for Monday, June 21st
Mr. Johnson said that no Board of Commissioners in the history of Randolph County has had
to address as many critical issues at one time at this Board of County Commissioners: multiple
capital improvement projects to enhance education and County services, expansion of Emergency
Services capabilities, renovation of courthouse facilities, the evolving needs of the Detention
Center and law enforcement, the expanding demands on Social Services and Public Health,
recruitment, training and retention of professional staff, funding challenges of economic
development, the repercussions of the opioid addiction crisis, and the public health and economic
impacts of the COVID-19 pandemic.
Two major issues not dealt with in this Proposed Budget are the use of American Rescue Plan
(ARP) funds and the debt service for the Rural Health Care Stabilization Fund. Under the recently
passed federal legislation, Randolph County is expected to receive over $27 million from the
COVID Recovery Fund. No part of this allocation is included in the General Fund Proposed
Budget because the recovery program is designed to provide short term financial resources for
local governments. Again, the challenge is not to create long term budgetary instability when the
stimulus funding is over. The bankruptcy and sale of Randolph Hospital was also not addressed
in this Budget. The County was recently approved by the Local Government Commission to obtain
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a $12 million loan through the Rural Health Care Stabilization Fund. This would allow the County
to provide financial assistance to a buyer of Randolph Hospital for capital improvements and
equipment updates. Although there are several options, no final decision has been made on how
to pay for the debt service that is anticipated to be over $1 million per year for 12 years.
Mr. Johnson said this was his 7th budget as County Manager. Every budget has brought its
special challenges. The past year of the COVID-19 pandemic was exceptionally challenging.
Last spring, when developing the current year's budget, expectations were that there would be a
significant negative economic impact from the pandemic. The federal stimulus funds boosted the
local economy through an increase in sales tax collection. As a result, the budget remained
stronger than expected during the pandemic.
The budgetary challenge this year is to, again, anticipate uncertainty in the economy. It is
unknown if the positive economic impact of federal stimulus funding will have its desired affects
or if the economy will suffer a decline after federal stimulus funding ends. The challenge facing
County Government is to prepare for any eventuality.
During the budget process, County Department Heads will update the Board on their operations
and pressures they are facing. There were 35 new positions requested by departments in this year's
budget. Due to budget constraints, the proposed budget includes costs for 9 new positions;
primarily for public safety, child protection services, internet crimes against children, and County
operations. The proposed budget has 887 full-time and 26 part-time allocated positions. The
following new positions are funded in the proposed budget:
Social Services: Social Worker for Child Protection Services (1)
Social Services: Assistant Director of Social Work (1)
Emergency Services: Paramedics (3)
Sheriff's Office: Detective for Internet Crimes Against Children (1)
Building Inspections: Code Enforcement Specialist (1)
Information Technology: Infrastructure Specialist for Security (1)
Administration: Media Specialist (1)
County services depend on qualified staff to carry out their responsibilities. The County Pay
Plan has fallen behind many local governments since the update to the classification study. The
Proposed Budget includes a 3% market adjustment, which includes a cost of living adjustment
(COLA), so that pay rates can remain competitive with adjoining local governments.
A total of $4,348,277 in capital outlay equipment were requested in the budget. Due to budget
constraints, two replacement ambulances and a Sheriff's vehicle are recommended. The total
capital outlay proposed is $598,649.
As part of the Proposed Budget, suggested funding options are provided if additional Capital
Outlay requests or positions are considered for approval.
FY 2021-2022 Proposed Budget
6/1/21
Will Massie, Assistant County Manager/Finance Officer, presented a review of County
revenues and expenditures in the Proposed FY2021-22 Budget.
Tax revaluation occurs every four years. A property tax base is a combination of properties
that include real estate and personal property values. The property valuation for FY21-22 is
projected to be $11,981,000,000. The County's property tax rate of 63.27 cents per $100 will be
maintained. The collection rate has been estimated at 99% with a total levy of $75,045,749. One
cent on the tax rate provides $1,186,119.
Through February, sales tax collections were 13% above last year. In FY21-22, there will be
an estimated 4% percent increase in sales tax collections from FY20-21. There is an estimated
$2,900,000 in Medicaid Hold Harmless. Article 46 sales tax is dedicated for capital reserve and
Randolph Community College.
Mr. Massie gave some funding options for capital outlay requests. The available Fund Balance
on June 30, 2020, was $37,394,161. This is equal to 29% of General Fund Expenditures. Amounts
over 24% are committed for capital improvements, which totals $3.7 million. The Fund Balance
Policy requires a minimum of 20% of expenditures.
Mr. Massie presented an overview of statistics regarding Asheboro City and Randolph County
Schools, including average daily membership, current expense, current capital, and construction
capital. In total, these allocations are 23.4% of the County budget at $33,540,932.
Mr. Massie said there is $17,982,424 in FY21-22 debt service that is currently scheduled.
Lottery funds are estimated at $1,600,000 for the Public School Building Capital Fund.
Seven fire departments are requesting higher fire district tax rates; Bennett, Climax, Coleridge,
Eastside, Franklinville, Guil-Rand, and Westside fire districts. Eleven fire departments are
requesting an unchanged fire district tax rate.
Mr. Massie reviewed strategic planning objectives. Landfill lease revenues are projected at
$1,112,798 in July. This amount is recommended for the Health and Well -Being Reserve.
Asheboro City Schools Presentation
Dr. Aaron Woody, Asheboro City Schools (ACS) Superintendent, recognized several Board
members who were in attendance. He thanked Commissioners for their leadership and presented
budget requests for Asheboro City Schools.
Asheboro City Schools requested $120,000 for the Continuation Budget for expected increases
in retirement and health insurance as well as for salary increases and $330,000 for the Expansion
Budget to cover a 1% Local Supplement Increase.
Total current expense funding of $6,460,459 is included in this request. Dr. Woody asked the
Board to continue supporting the tax rate of 14.39 cents for the Asheboro City Schools
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Supplemental Tax District. This County appropriation request represents an increase of $450,000
to cover the continuation budget items over the FY20-21 appropriation.
Dr. Woody gave an overview of Year 7 of the 10 Year Capital Improvement Plan and requested
total capital outlay of $983,574. This would not only cover the maintenance required but also
equipment, furniture, and technology. He said the Asheboro High School construction is in Phase
III. Some classes will be moving to the temporary mobile classrooms during the construction.
The Media Center has already been moved.
Dr. Woody thanked the Board for their continued support.
Randolph County Schools Presentation
Dr. Stephen Gainey, Randolph County Schools (RCS) Superintendent, introduced several
Board members in attendance and presented the Randolph County Schools budget request.
Dr. Gainey said RCS is requesting continuation costs of $518,000 which include increases for
insurances, retirement, salaries, charter school growth, and utilities. He said RCS would like to
offer a supplement increase of .25% to all employees in order to build on three previous increases
to equal one percent. That request requires $510,000. Capital outlay requests in the amount of
$100,000 cover increased costs in the "9 -Year Facility Upgrade/Repair Plan." The total of all
items is $1,128,000.
Dr. Gainey indicated that Trinity Middle School is close to completion and they have been
conducting tours for elected officials. 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
Dr. Shackleford, Randolph Community College (RCC) President, introduced some of the
leadership team for the College who were in attendance. He presented many ways that Coronavirus
Aid, Relief, and Economic Security (CARES) funding were used for the benefit of RCC students
while the pandemic was in full force. The funds were used for the following:
• Provided direct aid to students;
• Hired success coaches to help student retention;
• Hired a Health Coaching Firm for students;
• Signed an agreement with a Student Assistance Program;
• Upgraded Distance Education tools, including test proctoring on-line;
• Bought new software for converting hands-on classes to on-line classes;
• Upgraded classroom technology to teach both in person and virtually, as needed;
• Contracted with a sanitation company for the first few months of the pandemic;
• Installed plexiglass barriers for personal protection;
• Purchased personal protective equipment (PPE) and sanitizing cleaners and utilized
cleaning protocols using new technology;
• Enhanced modifications in filtration, ionization, and fresh air supply to deter, reduce, or
kill unhealthy spores in the buildings;
• Bought security software that RCC could not have afforded.
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Dr. Shackleford outlined the following increases requiring funding:
• Health care and retirement benefits
• Insurance and adding cyber security insurance
• Utility bills
• Need to remain competitive to retain employees
• An additional housekeeping position is needed for the additional square footage
He thanked the Board for their support and continued funding.
Adjournment
At 7:55 p.m., there being no further business, a motion was made by Allen, seconded by Kidd
to adjourn.
Darrell Frye, Chairman David Allen
Kenny Kidd
Hope Haywood
Maxton McDowell
Dana Crisco, Clerk to the Board
6/1/21