HomeMy WebLinkAboutMay_28_2009_Budget_MinutesIREDELL COUNTY BOARD OF COMMISSIONERS
FY 2009-10 BUDGET SESSION MINUTES
MAY 28, 2009
The Iredell County Board of Commissioners met for a Budget Review Session on
Thursday, May 28, 2009, at 6:00 P.M., in the Iredell County Government Center (South Wing
Conference Room), 200 South Center Street, Statesville, NC.
Board Members Present
Vice Chairman Marvin Norman
Steve Johnson
Scott Keadle
Ken Robertson
Absent: Chairman Godfrey Williams
Staff present: County Manager Joel Mashburn, Finance Director Susan Blumenstein,
Deputy County Manager Tracy Jackson, and Clerk to the Board Jean Moore.
CALL TO ORDER by Vice Chairman Norman.
INVOCATION by Commissioner Johnson.
Opening Remarks: County Manager Mashburn said the school officials and department
heads appeared to be "accepting" of the 09-10 funding recommendations.
Commissioner Robertson said that during the budget sessions, he wanted the following
three questions answered, "How did the staff draft the budget? What items will not be in the
budget? What items, not included in the budget, will be needed next year?"
Commissioner Johnson said he desired more information on revenue assumptions and
fuel costs.
Commissioner Keadle mentioned that at the winter planning session, he had tried to pass
a proposal where the revenues and expenditures would be balanced without using any of the fund
balance. He voiced objection to the proposed budget, especially the usage of $2 million in fund
balance.
Review of Schedules and Charts
Finance Director Susan Blumenstein highlighted sections of the schedules and charts as
follows:
Schedule A: The estimated fund balance at June 30 will be $21,502,599; however, the
budget is balanced with the usage of $2 million leaving an estimated unreserved, undesignated
fund balance of $19,502,499. Estimated FY 10 expenditures are $153,448,600 leaving a fund
balance percentage of 12.71%. Blumenstein said the staff preferred to have an 11% or higher
fund balance, and the Local Government Commission recommended that counties conclude a
fiscal year with a balance of at least 8%.
General Fund Revenues Chart: Blumenstein described the following chart that illustrates
decreases in the sales taxes, investments, and so forth.
General Fund Revenues
FY2010
FY2009
Inc (Decrease)
% Change
Ad Valorem Taxes
90,200,500
87,780,435
2,420,065
2.76%
Sales Taxes
26,377,800
34,037,655
(7,659,855)
-22.50%
Other Taxes & Licenses
1,457,000
2,191,500
734,500
-33.52%
Unrestricted Intergovernmental
745,690
118,000
627,690
531.94%
Grants & Other Restricted RE
18,363,995
19,363,675
999,680
-5.16%
Permits & Fees
3,679,385
5,795,845
2,116,460
-36.52%
Sales & Service
9,193,975
8,615,055
57$920
6.72%
Investment Earnings
1,011,700
2,512,000
1,500,300
-59.73%
Other Financing Sources
418,555
3,571,790 3,153,235
-88.28%
Appropriated Fund Balance
2,000,000
4,605,895 (2,605,895)
-56.58%
153,448600
168 591 850 15143 250
Schedule B: For FY 09-10, only four new positions were requested, and of these, three
are recommended. All three are for social services, and they will be partially funded by the state
and federal government.
Schedule C: The county departments requested $1,236,056 in capital outlay requests,
and the manager recommended $1,111,551 with some items being partially paid from grants and
state technical funding.
Mashburn mentioned that for FY 10-11, the Vehicles Services Director had mentioned
that 15 new vehicles, plus 2 new ambulances would be needed.
Schedule D: This chart showed the percent of county funds needed for the individual
departments.
Schedule F: At June 30, 2010, it is estimated that $71,104 will remain in the capital
reserve fund. The low balance is primarily due to the new animal control facility costing
$2,765,000. Blumenstein said 1.25% (general fund expenditures) or $2,107,000 was
appropriated to the capital reserve fund for 08-09; however, no money had been designated for
09-10.
Schools
Mitchell Community College: Attending the meeting on behalf of the college were
President Doug Eason and Vice President Dick Lefevre.
Blumenstein said the county used the average of what was provided for the two school
systems for the college's current expense. Out of a $69,322,575 request from the college's board
of trustees, $68,754,616 has been recommended.
Eason said the college could manage on the recommended funding. He said it was
"fair," but he wanted to voice concerns, especially about the financial situation which could
continue for the next 36 months. He said the unemployment situation was increasing enrollment,
and this was evidenced by a 31% increase for summer classes. Dr. Eason said the fall enrollment
was up 25% over this month (May). He said the state didn't fund the actual enrollment number
until a year later, plus the tuition money was sent to Raleigh's general fund. He said then, the
state used a formula to return the money to the colleges.
Commissioner Keadle mentioned a recent Charlotte Observer article that said illegal
immigrants didn't cost anything. He asked Dr. Eason to comment on this statement.
Dr. Eason said the college reviewed the regular college enrollment and found only one
illegal immigrant. He said the out-of-state tuition cost, per semester, was $3,000, and this
deterred most people away. Dr. Eason acknowledged that some of the other classes, such as
English as a second language, might have illegal immigrants.
Iredell-Statesville Schools: Blumenstein said the recommended I -SS current expense for
09-10 had been cut $2,322,803 over the current year. She said there had been a decrease in
enrollment, and one factor leading to this was the kindergarten age change. Blumenstein said a
new state law required kindergarten students to be five years old by August 31 rather than the
previous October cutoff date.
Mooresville Graded Schools: Blumenstein said the recommended MGSD current
expense for 09-10 had been cut $678,786 and a decrease in enrollment had been seen in this
system as well. In regards to capital outlay, Blumenstein said $548,615 in lottery proceeds
would be needed for debt service.
County Departments
2
The budgets for the following departments were then reviewed:
410- Commissioners
415- Administration
420- Human Resources (It was noted that fewer job postings meant reduced costs for
background checks and drug tests.)
425- Elections (There's a potential for ten elections in 09-10.)
430- Finance
436- Tax Administration
437- Tax Collector
438- Mapping/GIS
439- Reappraisal
445- Information Systems
450- Register of Deeds
455- Facilities & Support Services (The former Boggs Motor body shop will be leased
[$12,000] for approximately one year for storage.)
457- Meeting Street Service Center (Blumenstein said the City of Statesville was
proposing an 8% utility rate increase. She said Federal Energy website information
was used to determine fuel costs, and a separate contingency fund for fuel had been
created. Also, she mentioned that fuel costs were monitored on a monthly basis, and
during the past few years, usage had dropped. She said $1.76 a gallon (doesn't
include tax at 54¢) was budgeted for fuel.
458- Government Center South
460- Vehicle Service Center
465- Courts
470- Legal
475- Economic Development (Blumenstein and Mashburn described each economic
development agency being funded, and noted that membership in the Future
Forward Alliance had been cancelled.)
480- General Governmental (Funds are pooled for many line items in this department and
the county manager may transfer as needed. Regular contingency cannot be
transferred without board approval, and $250,000 is budgeted for 09-10, the same
as Fuel contingency of $150,000 has also budgeted.
485- Special Appropriations (The county manager said some agencies were not funded
(non -human service organizations) while others had funding decreases.
Commissioner Keadle voiced "extreme opposition" to funding for the North
Carolina Association of County Commissioners.
Commissioner Johnson asked if anyone had problems with the Sheriff's
Department assisting the Civil Air Patrol with seized funds, and no one voiced any
objection. (Previously, the county funded the Civil Air Patrol $7,500 out of special
appropriations, but this was eliminated in the FY 09-10 budget.)
650- Public Library: The county manager said the bookmobile had been deleted from
the budget; however, the part-time employees had been added back. He mentioned
that overtime would have to be paid to the regular employees if the part-time
workers were eliminated. Mashburn acknowledged; however, that retaining the
part-time employees might be a temporary reprieve if the economy did not
improve.
Blumenstein said the budget included funding for the new Troutman library.
655- Parks & Recreation: Mrs. Blumenstein said no funding had been recommended for
the parks' special revenue fund.
Approved:
ADJOURNMENT: Acting Chairman Norman adjourned the meeting at 8:45 p.m.
Clerk to the Board