HomeMy WebLinkAboutMay_20_2010_Budget_MeetingIREDELL COUNTY BOARD OF COMMISSIONERS
FY 10-11 BUDGET MEETING
MAY 20, 2010
The Iredell County Board of Commissioners met in Special Session on Tuesday,
May 20, 2010, at 5:30 P.M., in the Iredell County Government Center (South Wing Conference
Room), 200 South Center Street, Statesville, NC.
Board Members Present
Chairman Marvin Norman
Vice Chairman Steve Johnson
Scott Keadle
Frank Mitchell
Ken Robertson
Staff present: County Manager Joel Mashburn, Deputy County Manager Tracy Jackson,
Finance Director Susan Blumenstein, and Clerk to the Board Jean Moore.
CALL TO ORDER by Chairman Norman
OVERVIEW OF PROPOSED BUDGET: County Manager Mashburn said there
were more concerns about the FY 10-11 projected revenues than in the past; however, the staff
was comfortable with the tax base numbers.
Blumenstein said there was much volatility from month-to-month in the sales tax
revenues. She said there was also uncertainty in the inspections budget.
Mashburn said over 16,000 lots had been platted, but it was unknown when construction
might begin.
Commissioner Keadle said last year the staff reviewed the budget by sharing information
on each department. He suggested that the board members indicate any objections upfront in an
effort to have more time to discuss these matters rather than going line -by-line on each
department.
Commissioner Johnson said that in regards to personnel, there wasn't much to revise. He
asked how the county manager had determined which computer requests to include.
Mashburn said there was a two-step process where the department heads submitted their
computer requests to the IT department. He said IT determined if the justifications for the new
computers were warranted, and then, during the county manager's review, the IT
recommendation was reviewed. Mashburn said the same process was used for vehicle requests
-- they were sent to the Director of Vehicle Services for evaluation first.
Commissioner Keadle said the board needed to determine if the motion made at the
retreat was still the direction the board wanted to take.
Commissioner Robertson said in this particular budget, he planned to ask the directors of
health and social services about any services being providing that were not required or mandated
by the state and federal government. He said if so, the board needed to determine if the service
should continue to be provided and paid for by the county. Robertson said that in regards to
planning/inspections, the board needed to be updated on the employees who remained on the
payroll to accomplish the "value added" projects. He asked if parks/recreation could be more
self-sustaining, and a concern was mentioned about law enforcement personnel who had been
hired with grant money. Robertson said that on emergency services, he wanted to make sure that
any reductions would not impact services. He said that before a 44.5¢ tax rate could be signed
off by him, he wanted to know the services that would be available and unavailable.
Commissioner Johnson and Commissioner Keadle said they were comfortable with a
44.5¢ tax rate and using $2 million in fund balance.
Commissioner Mitchell said his concerns were about Raleigh and the impact the state
budget or new legislation might have on the county.
Blumenstein then passed around a spreadsheet showing the ad valorem tax per $100 of
per capita income extending from June 2000 through June 2007. The information revealed that
for tax year 2000, the taxes per capita were $1.27 compared to $1.52 for 2007.
Keadle said that if anyone wanted to look at the spreadsheet on the basis of only net
county funds expended (the numbers were not available for income) they would be $484 for year
2000 and $781 for 2009. He said the numbers would have to be adjusted for CPI, but taxes had
been rising, for example, if a household had $100 and the government took a portion, the
government had taken $1.27 in 2000 compared to $1.52 in 2007. He said it was estimated that
the per capita numbers had flattened out in the past three years. Keadle said it was clear the
county had gone down in taxes, or had been holding them, but the FY 11 budget would probably
be a tax increase as it related to a family's budget.
Robertson said the citizens had previously indicated they wanted schools, and it was now
time to pay for them.
Commissioner Johnson asked when the law enforcement positions would become the
county's financial responsibility.
Blumenstein said that in FY 12, based on current salaries, the county would have to
assume $260,000 in job positions added at the sheriffs department. She said the approved
positions filled this year would have been the county's responsibility about mid -year FY 10-11;
however, they were hired so late, they wouldn't need to be paid for until 2012. Blumenstein said
a chemist position approved in 2008 was supposed to be funded by crime lab fees, but this year,
only $20,000 had been received. She said federal equity sharing had been budgeted to pay for
the position another year. Blumenstein said two road deputies and an information tech
consultant were approved in 2008, using federal equity sharing money, and they were funded in
the FY 09-10 budget with county funds.
Mashburn said that in the erosion and sedimentation control program, it was previously
anticipated that these positions would be covered by development; however, construction wasn't
occurring. He said the county had contracts and obligations in the program, and two people were
needed.
Blumenstein said that in planning, one position was cut to 75% and another to 60% with
two other planner positions not being funded.
Mashburn said reductions and layoffs had occurred in several departments. He said some
had been transferred into other departments, and there was the possibility that additional layoffs
might have to occur. (This would be the staff currently working on temporary projects, for
example, the lighting upgrade work.)
Commissioner Johnson said in regards to future revenues and positions being funded by
grants and other outside sources, that a policy needed to be established indicating the
departments would need a plan to fund them with grants, or seized drug funds.
Commissioner Robertson said he felt the board had been clear that when the grant funds
disappeared so did the position.
OTION by Commissioner Johnson to instruct the county manager to make all
department heads across the county aware that if there were any positions funded by external
resources, such as grants or from seized asset funds, that when the positions expired and they
were no longer being funded by external sources, that given the economic condition in which the
board finds itself, they cannot assume the positions will be funded internally from the county's
general funds.
VOTING: Ayes — 5; Nays — 0.
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600 - Health Budget: Health Director Donna Campbell and Administrative Officer
Bill Griffith discussed the FY 10-11 health budget. Campbell said the original budget had a 3%
decrease, but after the county manager's review, a 9.96% reduction (county share) was achieved.
She said this was accomplished by:
93 RIFs in the environmental division
• 1 child service coordinator resigned (A RIF was going to occur had there not been the resignation.)
• Medicaid Max funding was used to purchase equipment.
Campbell said the environmental staff hours were at 90% for the entire 09-10 year, but
they would increase to 100% at the second pay period in June. She said there was a three-week
backlog in the on-site wastewater program, but this would improve when the staff was up to
100%.
Commissioner Robertson asked if there was anything the health department could
eliminate that was not required or mandated.
Campbell said some programs were mandated, and then the health department was
required to make sure some services were provided in the community. She said the dental
program was not required, but the county had allowed the service due to being self-supporting,
plus Medicaid Max funds were used for any gaps. Mrs. Campbell said the services being
provided were either mandated or required. She said a study was being conducted on the child
service coordination program, and depending upon future Medicaid reimbursements, there might
be a reduction in force. She said the same situation was occurring with the Maternity Care
Coordinator (MCC) position.
Bill Griffith said that when the positions were approved, a commitment was made that
they would be self-supporting. He said that if Medicaid cut the reimbursements, then the health
department would have to notify the commissioners.
Campbell said at least one MCC was required.
Robertson said that if the positions could be eliminated, then evidently the county wasn't
required to provide the service.
Campbell said the study and possible RIFs had not been discussed with the state. She
said it was hoped that other agencies might be found to provide comparable services. Campbell
said every program was evaluated during the Strategic Plan process, and the health department
tried to refrain from providing any services not required, for example, the breast and cervical
cancer program was moved to Statesville Family Medicine.
Robertson asked if the health budget had been cut to the bone.
Campbell said this was a true statement.
630 - Social Services: Joining the commissioners were DSS Director Don Wall, Social
Work Program Administrator Lisa York, and Income Maintenance Supervisor Lynn Deal to
discuss the social services budget.
Commissioner Robertson asked if the county was paying for any programs not required
or mandated.
Wall said he couldn't think of any, but he would have to check. He said General Relief
was approximately $6,000 to $9,000 and the funds were from the county. Wall said this program
assisted homeowners in retaining their homes and keeping families together. He said foster care
was funded 100% by the county.
York said some foster children were provided with tutoring services, and there were other
school -related expenses. She said the county was the legal guardian of the children, so foster
care was required and couldn't be eliminated.
Robertson again asked about any services not required, but were being provided by DSS.
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Wall said he felt everything social services provided was required.
Commissioner Mitchell asked if the fraud investigators were required.
Wall said they were not required, and there were three investigators.
Commissioner Mitchell asked how many cases were prosecuted.
Wall said Superior Court prosecution was a lengthy process, and many cases were settled
through plea bargains. He estimated that four or five cases might be in Superior Court during a
month with many others in the "wings."
Mitchell asked if more fraud was occurring.
Wall said there was some increase, but not a tremendous amount.
Robertson said it appeared that if further reductions needed to be made, then positions in
the fraud department could be cut. He asked if the county funded any other positions that could
be eliminated.
Wall said he wasn't aware of any positions with 100% county funds.
Keadle asked how much the department had in total revenue.
Wall said that in FY 08-09, $16,310,000 was received and as of May 2010, the
department had received $12,565,000. He said the projected amount for next year was
$16,560,360.
Blumenstein said Medicaid did not flow through the social services budget. She said the
total budget was $25.3 million with revenue at $16.6 million, and that $8.7 million of this was
county funds.
Keadle asked how the $8.7 million was spent.
Wall said for general programs.
Mashburn said the FY 10-11 budget had been reduced by eliminating lapsed salaries that
had been budgeted. He said turnover was a problem at DSS.
Blumenstein said $362,000 in lapsed salaries had been eliminated, plus FICA and
retirement.
Robertson said that reduction couldn't be done again.
Blumenstein said this was correct. She said DSS had already made reductions before the
budget was submitted to the manager such as cuts in (1) salaries for unfunded positions (2)
professional services (3) advertising for vacant positions (4) maintenance/repairs (5) vehicle
repairs (6) postage (7) fuel (8) printing (9) training and (10) travel.
Johnson asked about the LINKS fund.
Wall said it assisted foster children with college costs and car purchases. He said the
funds were a pass-through from the state.
Keadle asked who established the salary levels for the department.
Wall said the state personnel office set the classifications and salary range. He said the
county's human resources department also provided surveys based on the market.
Mashburn said DSS and the health department had classifications created by the state.
He said DSS workers were considered county employees, but their classifications were made by
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the state. Mashburn said the county could determine how much funding could be devoted to a
particular class, but the county couldn't create the classifications.
Commissioner Keadle said that due to the economy, private sector employees had
experienced pay cuts, and to assist with the county's budgetary problems, this was another
option.
Commissioner Mitchell asked how much money would be found if a 5% cut, across-the-
board, occurred.
Mashburn said $2 million.
655 - Recreation & Parks: Mr. Mashburn said the recreational camps were not
required, but many were self supporting.
Robertson said the recreation department had a $1.2 million budget, but only $310,260 in
revenues. He said the board needed to look at other areas that could be cut if the state imposed
unfunded mandates.
Chairman Norman said he didn't think recreation was an area that needed to be cut.
Mashburn said an overall goal had been for all the county departments to be cut by 3%.
Blumenstein said recreation had actually been reduced by 5%.
MOTTO by Commissioner Keadle to instruct the Parks & Recreation Department to
present a plan for review at the next meeting to close the gap by $100,000.
VOTING: Ayes — 5; Nays — 0.
510- Sheriff's Department: Finance Director Blumenstein said that when the sheriffs
budget was first presented, there was a .7% increase, but after the county manager's review, cuts
totaling almost 3% were found.
650 - Library Department: Mashburn said there was a proposal to eliminate the part-
time employees, and this would impact the hours of operation. He said that due to Sundays
being popular days for library visits, the hours of operation during the week would be reduced.
40 - Capital Projects Fund (Jail/Courts Expansion): Mashburn said $250,000 was
recommended to be set aside for the planning of jail/courts space needs.
Blumenstein said the existing jail kitchen was small, and this was one of the problems.
710 - Debt Service: Blumenstein said debt service (710) was for county facilities (DSS,
ICGC-South, plus a $700,000 rescue squad loan), and this was a million dollars a year.
Blumenstein said the balance of the debt was in 700 — Schools, and as of June 30, 2010, the
amount of $50.9 million (voted debt) was owed for General Obligation Bonds, and $199.4
million was owed for the Certificates of Participation.
475 - Economic Development: Commissioner Johnson asked about the funding
request for the Statesville Airport.
Blumenstein said the amount carried over was for land purchases. She said $429,634 had
been requested as a federal grant match, but this was disapproved during the county manager's
review. Blumenstein $164,000 was carried over for new land, and then there was the
commitment for 50% of the debt service and one-half of the sewer line.
Mashburn said the $164,000 was discretionary because there had been no commitment.
In regards to the economic development offices, Commissioner Keadle asked about the
possibility of cuts.
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Mashburn said there were no contractual obligations with the Carolinas Partnership, but it
was different for the companies having approved incentives.
Blumenstein said that in regards to the economic development projects, the incentives
were not budgeted until the companies had almost met their investments.
Commissioner Mitchell asked if the county received any leads from the Carolinas
Partnership.
Mashburn said yes, and the office benefited the Charlotte region. He said the board had
discretion in the amounts provided to the Greater Statesville Development Corporation and the
Mooresville -South Iredell Economic Development Corporation.
485 - Special Appropriations: Finance Director Susan Blumenstein said the $1,000
request (Residents Rights Party) from the Chairman of the Nursing Home Advisory Committee
had been reduced to $500 during the county manager's review.
MOTION by Commissioner Johnson to increase the Nursing Home Advisory
Committee's request to the full $1,000 request for the Residents Rights Party.
Commissioner Robertson mentioned the cuts to emergency services and the county's low
tax rate. He said something had to give.
Commissioner Keadle said he would like a proposal to show how $100,000 could be cut
from the library.
Robertson asked where the money would come from for the Residents Rights Party.
Johnson said the $500 could come from fund balance. (The other $500 was already in
the budget.)
VOTING: Ayes — 3; Nays — 2 (Keadle & Robertson).
Information & Referral: Blumenstein said this agency had a total budget of $72,000.
She said that in 2009, the agency responded to 4,000 phone inquiries, and this equated to $18.09
per call.
MOTION by Commissioner Keadle to delete the Information and Referral line item.
VOTING: Ayes — 5; Nays — 0.
ADJOURNMENT: MOTION by Commissioner Mitchell to adjourn the meeting at
9:10 P.M.
VOTING: Ayes — 5; Nays — 0.
Approved:
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Clerk to the Board