062705June 27, 2005
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, Davis, Kemp, Frye, and Lanier were present.
Budget Amendments — School Construction Capital Proiects
Will Massie, Deputy Finance Officer, stated that Randolph County has established capital
project ordinances to account for school construction in each of the two public school districts. For
Northeast High School and Teachey Elementary, the County has authorized advances of County funds
to expedite the construction schedule. We anticipate issuing debt in 2006 to finance these projects.
However, when we get to June 30, we will have expenditures but no revenues to report, because the
debt proceeds are not yet available. In order to avoid a deficit fund balance at year-end, we request
amending the ordinances for offsetting transfers to and from the General Fund to cover the amounts
advanced. A transfer in to the capital projects will be recorded to match the amount advanced through
June 30; the reimbursement will be recorded as a transfer back to the General Fund after the debt is
issued.
On motion of Frye, seconded by Davis, the Board unanimously approved the following budget
amendments:
2004-05 Budget Ordinance General Fund
Budget Amendment
#54
Revenues
Increase
Decrease
Appropriated Fund Balance
$390,132
Appropriations
Increase
Decrease
Transfer To City Scbools Capital Project
$78,602
Transfer To County Scbools Capital Project
$311,330
County Schools Capihd Project Ordinance
Budget Amen
dment # 1
Revenues
Increase
Decrease
Transferfrow General Fund
$311,330
Appropriations
Increase
Decrease
Transfer To General Fund
$311,330
City Schools Ca ital Project (7rdinance
Bud etArrreridrnent
#1
Revenues
Increase
Decrease
Transferfrow General Fund
$ 78,602
Appropriations
Increase
Decrease
Transfer To General Fund
$ 78,602
Budget Amendment — Medicaid
Will Massie reported that we anticipate the County's final share of Medicaid costs to
exceed the current budget. We anticipate another $300,000 is needed to make our final payment.
Fortunately, interest rates have also risen during the past year and our investment revenues
should be ahead of budget by approximately the same amount.
On motion of Davis, seconded by Kemp, the Board unanimously approved the following
budget amendment:
2004-05 Budget et Ordinance General pond Budget Amendment
# 55
Revenues Increase
Decrease
InvestmentEarnings $ 300,000
Appropriations Increase
Decrease
Social Services $ 300,000
Budget Amendment — Libra
Will Massie reported that the State Library reallocated $467,872 to the public libraries in
North Carolina who qualify to receive State Aid. These funds are available because the
Rockingham County Public Library is no longer eligible to receive money from the Aid to Public
Libraries Fund. Randolph County's total allocation for FY 2004-05 was $193,685. We
budgeted $190,386, leaving an excess of $3,299.
On motion of Davis, seconded by Frye, the Board unanimously approved the following
budget amendment:
2004-05 Budget Ordinance General Fund Budget Amendment #56
Revenues Increase
Restricted Intergovernmental x`3,299
Appropriations Increase
Public Librag x`3,299
Budget Amendment — Health Department
Will Massie stated that the Health Department has received an additional $9,358 for the
WIC Program; these funds will be used for the Breastfeeding Peer Counselor Program.
On motion of Frye, seconded by Davis, the Board unanimously approved the following
budget amendment:
2004-05 Budget Ordinance General Fund Budget Amendment 957
Revenues Increase
Restricted Intergovernmental $9,358
Appropriations Increase
Public Health $9,358
2
Budget Amendment — Tax
Will Massie stated that the Tax Department has incurred a shortage of funds in its current
budget due to unexpected expenses in supplies and postage. The deficiency totals $2,500.
However, property tax revenue budgeted for this fiscal year have exceeded expectations, and
there are funds in this account to cover this deficiency
On motion of Kemp, seconded by Davis, the Board unanimously approved the following
budget amendment:
2004--05 Budget Ordinance General Fund Budget Amendment #58
Revenues Increase
Ad Valorem Property Taxes $2,500
Appropriations Increase
Tax $2,500
Adjustment of Collection Rate for Ash -Rand Rescue Squad
Will Massie told the Board that Randolph County supports Ash -Rand Rescue Squad
through an annual contribution. Ash -Rand has requested a $20,000 appropriation in 2005-06 to
help offset additional operating costs. However, the budget includes the same contribution as
last year --$14,225. For years the Randolph County Tax Department has prepared the ambulance
billing for services performed by Ash -Rand and has charged them a 15% collection fee. As an
alternative to increasing their contribution, Neil Allen, Emergency Services Director,
recommends that the County reduce its collection percentage from 15% to 10%. That should
generate the additional revenue for Ash -Rand and allow them to satisfy their budget needs.
On motion of Kemp, seconded by Frye, the Board unanimously approved reducing the
County's collection fee for Ash Rand Rescue Squad from 15% to 10% effective July 1, 2005.
Recognition of Buddy Fields, Retiring Fire Chief
Chairman Holmes recognized Buddy Fields, retiring fire chief for Climax Fire
Department. Mr. Fields introduced Gary McGee, new chief for the department.
Fire District Tax Rates
Recil Williamson, Chief of Westside Fire Department, spoke in support of the one-half
cent increase his board is requesting for Westside. He said they need additional revenue to pay
for construction of a new fire station they are planning to build in the Lassiter Mill Road area.
This station, which will be the third one in their district, will encompass an area that has
heretofore been too far from a station to be in Westside's tax district. This area has been a
"response district" only, meaning that Westside responds to calls in that area even though they
do not receive any tax revenues from citizens living in that area. The new station will result in
homeowners insurance premiums in that area being reduced.
In response to questions from the Board, Mr. Williamson provided the following
information:
The additional one-half cent increase last year was for a heavy-duty rescue truck, the only
one in the county.
Westside's current budget is $484,515.
The new station will not have to be equipped with new vehicles. The Department has a
reserve engine and tanker that will be placed there.
Westside's board, in the past, has been reluctant to provide an annual audit to the County
Commissioners because of the cost. There is now a new board, and Mr. Williamson will
approach them about providing an audit.
County Manager Frank Willis noted that state statutes do not allow boards of county
commissioners to require audits of volunteer fire departments; they can only request them.
On motion of Lanier, seconded by Frye, the Board voted unanimously to leave all fire district
tax rates the same: Bennett, 7¢; Climax, 9.3¢; Coleridge, 7.3¢; Eastside, 7¢; Fairgrove, 6.5¢;
Farmer, 7.5¢; Franklinville, 6.5¢; Guil-Rana 10¢; Julian, 10¢; Level Cross, 10¢; Northeast, 6.8¢;
Randleman, 10¢; Seagrove, 9.7¢; Sophia, 10¢; Southwest, 10¢; Staley, 10¢; Tabernacle, 8.7¢; Ulah,
610; Westside, 9¢.
School District Tax Rates
On motion of Frye, seconded by Kemp, the Board voted unanimously to leave the school
district tax rates the same: Asheboro City, 13.85¢; Archdale -Trinity, 8.5¢.
Citizen Comments
Chairman Holmes stated that a citizen who had not been aware of the public hearing on
the budget last week would be allowed to speak tonight.
Faye Cox, 1211 Grantville Lane, Asheboro, spoke in opposition to the proposed property
tax increase. She said too many people have lost their jobs and are barely holding on. She said
the cost for everything has gone up, and the elderly, farmers and unemployed cannot afford any
more taxes. She said foreigners are causing the additional school needs, and most of them don't
pay much in taxes because they rent.
Commissioner Frye explained to the audience that Randolph County's portion of
Medicaid expense in the 2005-06 budget is $1.4 million more than the current year's expense.
We have no control over the amount we pay for Medicaid; we don't make the rules. North
Carolina is the only state that requires counties to pay of portion of the state's share of the
Medicaid expense. The North Carolina Association of County Commissioners' legislative goals
top priority this year was for Medicaid relief for counties. It doesn't appear that the General
Assembly will do much, if anything, on Medicaid relief for counties this year. Mr. Frye also
noted that only about half of Randolph County's budget is funded by the property tax. The other
half comes from sales tax, grants, fees, and other sources.
Budget Discussion
The Board briefly discussed the proposed budget.
Frye made a motion, seconded by Davis, to adopt the FY 2005-2006 Budget Ordinance
as proposed, with the following changes: to appropriate $200, 000 from fund balance for the
Randolph County Schools and Asheboro City Schools, to be split under the ADMformula
(County Schools, $160,140; City Schools, $39, 860); and to appropriate $208, 980 from fund
balance in order to cut the proposed property tax increase from 2.75¢ to 2.5¢, with the
stipulation that any Medicaid relief received from the state go back into fund balance.
11
Commissioner Kemp requested that the motion be amended to stipulate that $20, 000 of
the amount going to the County Schools be used for the incentives program for custodial
employees, which was one of the funding requests made by the County Schools earlier.
Commissioners Frye and Davis agreed to this amendment to their motion and second. The
motion passed 4 to], with Lanier opposing. (ATTACHED: FY 2005-2006 Budget Ordinance,
as adopted.)
Commissioner Lanier stated that he opposed the motion because he has a problem raising
taxes to pay Medicaid when Medicaid is dictated by the state and federal governments. He said
someone has to take a stand on this issue.
On motion of Frye, seconded by Lanier, the Board voted unanimously to adjourn at 7:40
p. M.
J. Harold Holmes, Chairman
Phil Kemp
Arnold Lanier
Darrell L. Frye
Robert B. Davis
Alice D. Dawson, Clerk to the Board