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HomeMy WebLinkAboutJune_9_2011_Budget_Session_MinutesIREDELL COUNTY BOARD OF COMMISSIONERS BUDGET SESSION MINUTES JUNE 9, 2011 The Iredell County Board of Commissioners met for a Fiscal Year 2011-12 budget review session on Thursday, June 9, 2011, 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 Steve Johnson Vice Chairman Marvin Norman Renee Griffith Frank Mitchell Ken Robertson Staff present: County Manager Joel Mashburn, Assistant County Manager Ron Smith, Deputy County Manager Tracy Jackson, Finance Director Susan Blumenstein, Facilities and Recreation Director Robert Woody, Library Director Steve Messick, and Clerk to the Board Jean Moore. CALL TO ORDER & INVOCATION by Chairman Johnson Finance Director Blumenstein distributed a handout containing budgetary changes that had occurred during the previous budget review sessions. The proposed tax rate had decreased from the county manager's recommendation of 50¢ to 49.16¢ after the changes. Bucket Truck for Facility Services: Chairman Johnson said a bucket truck was previously deleted from the budget. He said Statesville had a 35 ft. truck that was not needed, and it would be made available to the county. Johnson said that if a 50 ft. bucket truck were needed, it could be rented. MOTION by Chairman Johnson to delete the bucket truck from the budget with the understanding that Statesville would allow the staff to use an unused 35 ft. truck. Commissioner Robertson asked if the budget had enough money to lease a truck. Facilities & Recreation Director Robert Woody said there was a line item for rentals budgeted at $8,000.00, but the manager's proposal decreased it to $7,000 for FY 12. Amended Motion by Chairman Johnson: OTION to delete the bucket truck ($62,000) but to increase the rental line item back up to $8,000. VOTING: Ayes — 5; Nays — 0. Library: Commissioner Robertson asked about the book purchases totaling $375,000 (reference materials (&. $60,000; children's materials @ $120,000; adult fiction @ $102,000; reference/North Carolina @ $15,000 and adult/nonfiction @ $78,000). Robertson said he was having difficulty purchasing library books when the state was not going to purchase textbooks. Library Director Messick said the materials were needed. He said, however, there was no formal arrangement with the schools or local college requiring that an up-to-date supply of reference books be maintained. He mentioned that some of the costs ($40,000) paid for on-line data fees. Messick said these types of materials ranged from practice tests for the SAT as well as for foreign language guides. Messick said the Friends of the Library supported the youth summer reading program, and the new books requested for the children would actually be placed in the children's section of the library. He said that having a new flow of books was why the public came to the library, and 40% of the materials checked out were fiction. He said that if cuts occurred, he would not want this to set the groundwork for future budgets. Mashburn suggested for the board to suggest an amount that needed to be deleted from the budget and to allow the library staff to determine the cuts. MOTTO by Commissioner Robertson to reduce the appropriation for new library books by $202,000 and for the library director to be given latitude in determining which areas to cut. VOTING: Ayes — 5; Nays - 0. Note: The board gave Mr. Messick full leverage in determining the cuts -- they could be spread out over all of the libraries. Finance Director Blumenstein said the reduction would affect the Mooresville Library's pro -rata appropriation. She said the Mooresville library would be reduced by $127,180. Messick said the reduction would also reduce the state revenue but only around $20,000. Facility Services: The county manager informed the board that $235,000 was budgeted for building maintenance, and some of this was for painting. Deputy County Manager Jackson said soffit painting had been delayed the last couple of years, and the metal was now corroding. He said that if the soffits weren't painted soon, they would have to be rebuilt by hand. Parks & Recreation: Parks and Recreation Director Robert Woody presented the following two proposals for fee increases. Proposal # 1 Proposal #2 19 MOTIO by Commissioner Robertson to adjust the recreation fees as described in Proposal #2 over a three-year period. VOTING: Ayes — 5; Nays — 0. Commissioner Robertson asked about the arrangement between America's Park and the county for use of the baseball fields. Woody said he had not talked to anyone affiliated with the organization, but there was a need for the fields. Robertson said the county might have to contact the organization. He said the America's Park officials had promised the county free usage of the fields when they were not in use. Mr. Robertson said that Mr. Woody might have to contact the organization. Statesville Airport: Chairman Johnson asked Finance Director Blumenstein how much remained, that was undesignated, in the airport fund. Blumenstein said $42,512. Johnson requested that this be left in the budget in case any grants were received. He said the fencing project could be accomplished. Fire Services Mt. Mourne VFD: Blumenstein said a tax rate of 5¢ was budgeted and the revenue neutral rate was 3.75. East Alexander VFD: Blumenstein said a tax rate of 5¢ was budgeted and the revenue neutral rate was 3.75. (It was mentioned that the Riverwalk Development had added to the valuation, but most other properties had declined in value.) Shepherds VFD: Blumenstein said a tax rate of 7¢ was budgeted, and the revenue neutral rate was 7¢. She said the department had a 6.5 rate in FY 11. 6.5¢) Troutman VFD: (This department was previously discussed. The tax rate will be 5¢.) County -Wide District: (This department was previously discussed. The tax rate will be ICATS/Transportation: These budgets were briefly discussed. No changes occurred. 911: Deputy County Manager Jackson said some money was included in the budget for improvements, but more would be necessary in the future. Blumenstein said the cost per land line and cell phone line was 80¢. Debt Service, Transfers to Other Funds, Health Benefits Fund, Workers Comp: All of these were mentioned but no changes occurred. Solid Waste: Blumenstein said the sticker fee would cost $52. She mentioned there was money in the fund balance, which was good, because the county needed to start saving for a new cell. Chairman Johnson asked for a mid -year report on the workers comp. Recap on the Budgetary Changes Blumenstein updated the board on the budget changes that had occurred as follows: 3 •Facility Services: Budget was cut $61,000 (Deletion of $62,000 bucket truck but added $1000 for truck rental) •General Government: Cut $1,473,841 for all salary increases, reclassifications, and certificates. *Sheriff. Cut $35,900 (Dare/GREAT Program @ $3,500 along with Canine @ 2,000 and rifles @ $20,400) •Rescue Squads: Cut by $27,310 in new money, and after July 1, capital reserve will be transferred in order for all squads to be fully funded. •Crossroads Behavioral Healthcare: Cut by $57,930 or to the current year funding level. •Library: Cut by $202,000 (covers main library, Harmony and Troutman) *Mooresville Library: Cut by $127,180 She said this brought the total cuts to $1,785,161. She said an additional $38,000 in revenue would be included for recreation due to the fee increases. Blumenstein said that with the adjustments, there would be a tax rate of 49¢. Johnson said he understood that at 49¢ there might be a possibility of having $1.9 million in fund balance. He requested the finance director to make sure her numbers were correct to insure that nothing had been counted twice. Mashburn said the $1.9 million was an estimate. Blumenstein said it was fairly certain that $1.8 million would be in the fund balance. She mentioned that a sales tax update would be provided after the first quarter distribution. Robertson asked how much "wiggle room" was in the budget. Blumenstein said about 16.4% or $25 million. Johnson asked Blumenstein the county's payroll costs on a daily basis. She said for the general fund it was $131,800. Johnson mentioned concerns about the daily expenses and how fast a million dollars could be spent. Robertson mentioned the possibility of offering employees voluntary unpaid furlough days, especially if the departments had a slow down. He said approval would be at the department head's discretion. Robertson said the budget would not be altered and the savings could go into the fund balance. He said the number of days allowable could be determined by the management team. County Manager Mashburn suggested for the unpaid furlough day proposal to not be included in the budget ordinance, but instead, the personnel ordinance could be modified. He said the proposal should only be allowed for nonexempt personnel. Robertson added one caveat as follows: At budget time next year, a department's budget would not reflect the unpaid furlough days. IT, Health, Inspections, & Planning A discussion occurred on the number of employees employed in these departments, but no changes occurred. DSS Fraud Unit: Commissioner Mitchell asked if a detective could be assigned or loaned to the social services' fraud unit. Mr. Mashburn said this could probably be worked out, but he had concerns about supervision. He asked if the sheriff, or the social services director, would supervise the detective. Blumenstein mentioned that deputies, or School Resource Officers, were based or loaned out to the schools. 4 Commissioner Griffith Offers Cost Cutting Proposals: Mrs. Griffith mentioned the following proposals: 1. With the exception of the jail, sheriffs department, and EMS, to operate the county offices from 9 to 5 Monday through Friday, instead of 8 to 5. 2. Modify what the county contributes to employees' insurance and to increase what the employee pays. No action occurred on the proposals. School Funding: Chairman Johnson said the proposed budget now had a 49¢ tax rate and it was estimated that $1.8 million would be available for fund balance. He asked the tax rate if the schools were appropriated $1,330 per pupil. Blumenstein said 48.14¢. Johnson asked the per pupil rate if the county had a 48.25 tax rate. Blumenstein said $1,338 per pupil, and this left Mitchell College alone. Robertson asked Blumenstein the tax rate with the per pupil rate at $1,356. Blumenstein said 48.57¢. Robertson asked how much at $1,348 per pupil. Blumenstein said 48.45¢. Johnson said that with a 48.25 tax rate, the per pupil rate was $1,338.00, and the estimated fund balance was $1.8 million. He said that with the county's daily payroll, he didn't think $1.8 million was enough, and a better number would be $2 million for the fund balance. Chairman Johnson suggested for the tax rate to be 48.5 and the per pupil rate to be $1,338 with the excess placed in fund balance. He asked Blumenstein the budget's total amount. Commissioner Robertson mentioned that he would have liked for the per pupil rate to have been higher. Blumenstein said $154,636,800. Johnson said this was about three percent over last year. OTIO by Chairman Johnson to instruct the staff to craft a budget ordinance with a tax rate of 48.5 cents, a per pupil appropriation of $1,338.00, and for Mitchell College to be held harmless in total funding but with the difference between what the manager recommended and the formula to be done as a special appropriation. (This will occur annually, if necessary.) VOTING: Ayes — 5; Nays — 0. Adjournment: The meeting adjourned at 9:00 PM. (Next Meeting: Tuesday, June 21, 2011 at 7:00 PM, in the Iredeil County Government Center, 200 South Center Street, Statesville, NC. Approval: 5 Clerk to the Board