HomeMy WebLinkAboutMay_18_2006_Budget_minutesIREDELL COUNTY BOARD OF COMMISSIONERS
FY 06-07 BUDGET REVIEW MINUTES
MAY 18, 2006
The Iredell County Board of Commissioners met for a Budget Review Session
on Tuesday, May 18, 2006, at 5:30 P.M., in the Iredell County Government Center
(South Wing Conference Room), 200 South Center Street, Statesville, NC.
Present were:
Chairman Sara Haire Tice
Vice Chairman Godfrey Williams
Steve D. Johnson
Marvin Norman
Ken Robertson
Staff present: County Manager Joel Mashburn, Deputy County Manager Susan
Blumenstein, and Clerk to the Board Jean Moore.
Media present: Daniel Goldberg with the Statesville Record & Landmark and
Lee Ann Sherrill with the Iredell Citizen.
CALL TO ORDER by Godfrey Williams.
Chairman Tice arrived about a minute after the meeting started. (She had been
attending a memorial service for her pastor.)
700 Mitchell Community College (MCC): Attending the meeting to discuss
MCC's budget were Dr. Ralph Bentley (MCC Chairman of the Trustees),
Dr. Doug Eason (MCC President), and Dick Lefevre (Vice President for Finance).
Blumenstein reviewed the college's request and the recommended funding as
follows:
In regards to the upcoming bond for the college, Commissioner Johnson asked if
staggered debt cost more.
Blumenstein said yes, but it couldn't be helped. She said the Local Government
Commission needed actual bids.
Eason said construction plans had to be approved by the local college board, and
then they were sent to the state board in Raleigh where the process could take up to
three months.
When asked if the college would probably need to purchase more property in the
near future, Dr. Bentley replied yes.
Dr. Eason added the property costs would be near the amount paid out this year.
OTION by Commissioner Johnson to establish a Capital Reserve Fund for
Mitchell Community College in the amount of $250,000 in the FY 2006-07 budget and
to increase the fund by $50,000 a year for the next five years.
VOTING: Ayes — 5; Nays — 0.
2006-07 Request
2006-07 Recommended by
Current Expense
$ 2,194,059
$ 2,079,595 (formula based)
Capital Outlay (Special)
829,244
601,910 (formula based)
Project Reserve
368,690
Non GO Bond Principal
105,000
105,000
Non GO Bond Interest
24,245
24,245
GOB Principal
35,000
35,000
GOB Interest
35,000
35,000
In regards to the upcoming bond for the college, Commissioner Johnson asked if
staggered debt cost more.
Blumenstein said yes, but it couldn't be helped. She said the Local Government
Commission needed actual bids.
Eason said construction plans had to be approved by the local college board, and
then they were sent to the state board in Raleigh where the process could take up to
three months.
When asked if the college would probably need to purchase more property in the
near future, Dr. Bentley replied yes.
Dr. Eason added the property costs would be near the amount paid out this year.
OTION by Commissioner Johnson to establish a Capital Reserve Fund for
Mitchell Community College in the amount of $250,000 in the FY 2006-07 budget and
to increase the fund by $50,000 a year for the next five years.
VOTING: Ayes — 5; Nays — 0.
Dr. Eason said 47 registered nurses were recently pinned, and 40 of these had
employment contracts with Iredell Memorial Hospital. He said 254 degrees were also
conferred making this the largest graduating class in MCC's history. In addition, he
said 345 General Education Development (GED) diplomas were presented.
700 Iredell-Statesville (I -S) Schools: Dr. David Cash (School Board
Chairman), Dr. Terry Holliday (Superintendent), Kay Fulp (Finance Director), and Dr.
Kenny Miller (Maintenance Director) attended the meeting to discuss the I -S Schools'
budget.
Blumenstein reviewed the recommended budget for next year as follows:
Blumenstein said the per pupil rate would increase from $1,263 to $1,310 or
3.72%.
Dr. Cash said employee morale was better due to facility improvements. He
said it was hoped the school boards and county could continue in writing joint
resolutions requesting better state funding methods for the schools. Cash said the
system was implementing a merit pay system for the staff rather than relying on cost of
living increases.
Dr. Holliday said that contrary to local newspaper articles, there was less
turnover now than in past years. He said a full-time person was devoted to recruitment,
and with the exception to systems in Mecklenburg, Chapel Hill and Forsyth,
Iredell-Statesville was just as competitive as other units in salaries and benefits.
Holliday said Iredell-Statesville was one of the top ten counties in the state as far as
growth.
The school representatives then requested for the Facilities Task Force to
reconvene.
The commissioners agreed, and stated that Commissioner Steve Johnson and
Commissioner Marvin Norman would remain as the county's representatives. The
county manager and superintendent were asked to arrange a date and time for the
meeting.
700 Mooresville Graded School System: Individuals attending the meeting to
represent the Mooresville schools were Board of Education Chairman Karen Hart,
Superintendent Dr. Bruce Boyles, and Finance Director David Dutton.
As was done for the previous school units, Blumenstein reviewed the
recommending funding as follows:
Current Expense
Capital Outlay (Special)
Project Reserve
Non GO Bond Principal
Non GO Bond Interest
GOB Principal
GOB Interest
2006-07 Request
$ 6,630,000
722,977
670,420
1,048,725
635,660
481,970
2
2006-07 Recommended by Count
$ 6,268,350 (formula based)
673,920 (formula based)
95,535
670,420
1,048,725
635,660
481,970
2006-07 Request
2006-07 Recommended by County
Current Expense
$ 27,423,424
$ 27,381,620 (formula based)
Capital Outlay (Special)
4,701,335
419,955 (formula based)
Project Reserve
212,590
Non GO Bond Principal
2,999,585
2,999,585
Non GO Bond Interest
4,137,485
4,137,485
GOB Principal
2,275,840
2,275,840
GOB Interest
2,044,180
2,044,180
Blumenstein said the per pupil rate would increase from $1,263 to $1,310 or
3.72%.
Dr. Cash said employee morale was better due to facility improvements. He
said it was hoped the school boards and county could continue in writing joint
resolutions requesting better state funding methods for the schools. Cash said the
system was implementing a merit pay system for the staff rather than relying on cost of
living increases.
Dr. Holliday said that contrary to local newspaper articles, there was less
turnover now than in past years. He said a full-time person was devoted to recruitment,
and with the exception to systems in Mecklenburg, Chapel Hill and Forsyth,
Iredell-Statesville was just as competitive as other units in salaries and benefits.
Holliday said Iredell-Statesville was one of the top ten counties in the state as far as
growth.
The school representatives then requested for the Facilities Task Force to
reconvene.
The commissioners agreed, and stated that Commissioner Steve Johnson and
Commissioner Marvin Norman would remain as the county's representatives. The
county manager and superintendent were asked to arrange a date and time for the
meeting.
700 Mooresville Graded School System: Individuals attending the meeting to
represent the Mooresville schools were Board of Education Chairman Karen Hart,
Superintendent Dr. Bruce Boyles, and Finance Director David Dutton.
As was done for the previous school units, Blumenstein reviewed the
recommending funding as follows:
Current Expense
Capital Outlay (Special)
Project Reserve
Non GO Bond Principal
Non GO Bond Interest
GOB Principal
GOB Interest
2006-07 Request
$ 6,630,000
722,977
670,420
1,048,725
635,660
481,970
2
2006-07 Recommended by Count
$ 6,268,350 (formula based)
673,920 (formula based)
95,535
670,420
1,048,725
635,660
481,970
Dr. Boyles said the mediation formula was not serving Mooresville in a
desirable manner, due to the usage of enrollment numbers from last fall. He estimated
that 200 new students would enroll, at some point, during the upcoming year. Boyles
said that with the recommended allotment, Mooresville would have a $300,000 deficit.
He said this school year, 84 new students enrolled with most of them entering in the
early fall or near the Christmas holidays. Dr. Boyles said on a percentage basis,
Mooresville was the third fastest growing system in the state.
County Manager Mashburn said the growth showed up, but it was a year later.
Commissioner Robertson asked how the growth was handled in regards to the
teachers.
Boyles said additional teachers were added during the school year, with most of
them being hired the first month of school. He said state adjustments occurred the first
month; however, the growth standard was at least two percent or 100 students. Boyles
said if the criteria factors weren't met, the state felt the local systems, on their own,
could absorb the cost for four classrooms.
Dr. Boyles shared a handout (as follows) to further explain Mooresville's
dissatisfaction with the funding method.
Iredel! County Current Expense Appropriation Information
May 18, 2006
2006-2007 Funding Formula
The Best 1 of 2 Enrollment utilizes the highest enrollment in either the first or second
school month of the current (2005-2006) school year. The number is calculated by
taking the highest month for each individual grade and totaling those. It does not
include students who have enrolled during the current school year after month two.
North Carolina Department of Public Instruction Certified Projected Enrollment
The Best I of 2 is used as a base and a projected enrollment increase is added This
projected increase has usually been lower than the actual enrollment in the year of
projection for our district.
Statutory Provision 115C-430
"ff there is more than one local school administrative unit in a county, all
appropriations by the county to the local current expense funds of the units, except
appropriations funded by supplemental taxes levied less than countywide pursuant to a
local act of G.S. 115C-501 to 115C-511, must be apportioned according to the
membership of each unit. County appropriations are properly apportioned when the
dollar amount obtained by dividing the amount so apportioned to each unit by the total
membership of the unit is the same for each unit. The total membership of the local
administrative unit is the unit's average daily membership for the budget year to be
determined by and certified to the unit and the county board of commissioners by the
State Board of Education. "
What is the difference?
Year
1st
Month
Yr End
Growth
Best 1
of 2
State
pro ".
Diff.
Per
Pupil
Loss
2006-07
NA
NA
74
4785
5031
246
$1,310
$322,260
2005-06
4775
4859
84
4407
4611
204
$1,263
$257,652
2004-05
4452
4513
61
4280
4421
141
$1,185
NA
2003-04
4281
4280
-1
4205
4275
70
$1,162
NA
2002-03
4211
4184
-27
4124
4223
99
$1,107
NA
2001-02
4172
4170
-2
3975
4174
199
$1,107
NA
2000-01
1 4013
1 3951
-62
3834
3862
28
$1,064
NA
What does this mean to the school system?
3
We are not being funded for the actual number of students we are serving. For example,
in 2005-06 we were funded for 4613 but actually served 4786. This resulted in a loss of
funding for 173 students. At aper student appropriation of $1,263 we were underfunded
by $218,499. ff funded in 2006-2007 for 4786 (which is actually 73 students less than
we have now), 246 students would not be funded at a loss to the district of'$322,260.
Together the loss over two years would be $579,912.
----------------------------------------------End of Handout ----------------------------------------
Mrs. Blumenstein then shared a spreadsheet showing what a 2%, 2.5% and 3%
increase for the per pupil rate would be and the impact this would have on the county's
fund balance.
Mashburn emphasized that the formula (mediation agreement) used "real
numbers" from the past (fall of 2005). He said this was agreed upon by the county and
Iredell-Statesville Schools.
Some discussion occurred about changing the formula, but it was mentioned the
board of commissioners might not have authority to do this.
Commissioner Williams said he would be more inclined to offer a supplemental
increase rather than changing the formula.
The school representatives then departed, and the board members, with the
exception of Commissioner Norman, resumed their deliberations on the departmental
budgets. (Mr. Norman left the meeting at 6:40 p.m., for another engagement, but he
returned shortly thereafter.)
465 Courts: No changes from the county manager's recommended budget.
Finance Director Blumenstein noted that the court revenues were "flat." In
regards to the video arraignment equipment, Blumenstein said the purchasing agent was
evaluating the equipment bid quote submitted by the clerk of court.
470 Legal: No changes from the county manager's recommended budget.
475 Economic Development: No changes from the county manager's recommended
budget.
(Commissioner Williams had to leave the meeting at this time due to another
commitment.)
480 General Governmental: Mashburn said a mass communication system costing
$150,000 was included in the budget. He said the municipalities would be approached to
assist ($75,000) in the funding.
Rescue Squads: Blumenstein said the rescue squad funding was reviewed each year
after revaluation (50% on call volume and 50% on sq. miles).
485 Special Appropriations: Commissioner Johnson said the federal
government had agreed to base a plane at the Statesville Airport for the Civil Air Patrol.
He said the plane would be available to law enforcement and other emergency
management agencies. Johnson said the city was willing to lease a hangar, but some
improvements were needed.
MOTTO by Commissioner Johnson to appropriate $3,500 (Special
Appropriations) to the Civil Air Patrol in conjunction with hangar improvements
(hanger interior renovations and exterior ramp repairs).
VOTING: Ayes — 3; Nays — 0.
4
School Resource Officers: Blumenstein said the funding for the DARE officers
assisting in schools within the city limits had been deleted due to a new payment
method. She said the school system would send the payments directly to the
municipality rather then sending the funds to the county, and then the county sending
the check to the city.
510 Law Enforcement: Blumenstein requested that $2,500 be added to this
budget due to a domestic violence award. She said this would eliminate having to issue
a budget amendment right after the FY 06-07 budget was adopted. (The board agreed
and the funding will be used for victim's assistance.)
No changes from manager's recommended budget.
Commissioner Norman returned to the meeting at this time (7:40 p.m.)
531 Animal Control: It was mentioned that the staff would meet with the
Animal Control Director about estimated costs to operate an animal control center in
south Iredell.
Blumenstein said it was necessary recently to tie on to the city water line due to
low pressure at the animal shelter. She said the cost would be $6,000.
MOTION by Commission Johnson to approve $6,000 for utilities, electricity
and water for the animal control department.
budget.
budget.
budget.
VOTING: Ayes — 4; Nays — 0.
536 Communications: No changes from the manager's recommended budget.
542 EMS: No changes from the manager's recommended budget.
546 Emergency Management: No changes from the manager's recommended
548 Homeland Security: No changes from the manager's recommended
575 Cooperative Extension: No changes from the manager's recommended
600 Health: No changes from the manager's recommended budget.
610 Human Services Building: No changes from the manager's recommended
budget.
615 Contracted Mental Health: No changes from the manager's
recommended budget.
630 Social Services: Commissioner Norman asked about funding for the
Emergency Children's Home.
Blumenstein said $168,000 was requested, and this amount was recommended.
She said the allotment was under special appropriations. In light of a recent newspaper
article, Blumenstein said the social services director was obtaining additional
information regarding the financial needs of the children's home.
No changes from the manager's recommended budget.
635 Veterans Service: No changes from the manager's recommended budget.
5
650 Library: No changes from the manager's recommended budget.
655 Parks/Recreation: Commissioner Robertson noted that $90,000.00,
instead of $40,000.00, was being recommended for the park fund (5760.0).
Blumenstein said this was correct with the reasoning that since the funding was
available it should be specified for the parks.
No changes from the manager's recommended budget.
52 Solid Waste Disposal Fund: MOTION by Commissioner Robertson to
revise Budget Amendment #40 and not borrow money from the Solid Waste Fund for
the purchase of the 203 Stockton Street property (former Carolina Farm Credit
Building), and to instead, obtain the $499,000 from the General Fund Balance.
VOTING: Ayes — 4; Nays — 0.
Note: On April 18, 2006, Budget Amendment #40 was approved for an
interfund loan from the Solid Waste Disposal Facility to the General Fund for the
property purchase. Later, on May 18, 2006, the board decided to use funds from the
General Fund Balance.
CANCELLATION OF THE MAY 25, 2006 BUDGET MEETING: The
board cancelled the May 25 meeting due to the budget review sessions moving faster
than anticipated. On May 30, the planning department will present growth management
options, and the board will resume the review of the FY 06-07 budget.
ADJOURNMENT: Chairman Tice adjourned the budget review session at
8:30 p.m.
Approval:
6
Clerk to the Board