HomeMy WebLinkAboutMay_24_2011_Budget_Session_MinutesIREDELL COUNTY BOARD OF COMMISSIONERS
BUDGET SESSION MINUTES
MAY 24, 2011
The Iredell County Board of Commissioners met for a Fiscal Year 2011-12 budget
review session on Tuesday, May 24, 2011, at 6:30 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, and Clerk to the
Board Jean Moore.
CALL TO ORDER by Chairman Johnson
Estimated Fund Balance: Finance Director Susan Blumenstein estimated the county's
fund balance at June 30, 2011 to be at $28,186,668. She said the FY 11-12 budget did not
include the use of any fund balance, and the estimated revenues and recommended expenditures
were $157,558,285. Continuing, she said encumbrances as of June 30, 2011 totaled
$4,500,000.00, and the estimated unreserved, undesignated fund balance at June 30, 2012 would
be $23,686,668. Blumenstein said the recommended budget included a 15.03% fund balance for
the general fund budget of $157,558,285.
A debt service handout was distributed which showed the percent of money owed as a
percentage of the general fund budget for the past seven years. The handout indicated that with
the FY 12 recommended budget of $157,558,285, the percent of debt service was 16.49%.
Schedule of Personnel Positions: Blumenstein said 903 positions were recommended in
the proposed budget which included 5 new positions. She noted the following in reference to the
personnel schedule:
1. A human resources analyst position was reinstated.
2. One computer tech position was transferred from the Register of Deeds Office to the
Information Technology Department.
3. The county will assume the funding of 3 middle school resource officer positions, and the
Sheriff's Office has agreed to not fill 3 currently unfilled positions.
4. Three paramedic positions and one Assistant EMS Director position have been added.
5. Seven Cooperative Extension employees were removed from the list of employees, and
their salaries will be shown as contracted services with the State of North Carolina.
6. A parks grounds assistant position will become effective March 1, 2012, and this will
reduce the amount of money needed for part time field crew salaries.
Capital Outlay Requests: Blumenstein reviewed the list of capital outlay items
recommended for purchase by the county manager. She explained that computer cost differences
were due to some units being built for tougher or more rugged use, such as the lap tops used by
employees in the field. Pertaining to the sheriffs office request for ten (10) M-4 rifles costing
$20,400.00, a directive was made for the staff to obtain an inventory of the department's
weapons.
Contingency: Blumenstein said $250,000 had been budgeted for FY 12 general fund
contingency, along with $150,000 for fuel.
Review of Departmental Budgets
Commissioners Budget & Finance Budget: Commissioner Griffith asked about the
possibility of unifying the telecommunication providers for all departments.
Deputy County Manager Tracy Jackson said the county had a working group that was
reviewing the cell and phone line providers. He said some savings had already been found, but
due to having contracts, it would be difficult to combine them at the current time.
Griffith said that perhaps a review could occur on whether or not savings might be found
if the contracts were bought out.
Jackson said new hardware would either have to be bought or leased. He said desk top
sets would also have to be purchased.
County Manager Mashburn said a presentation to the board could occur about the efforts
being made to reduce telecommunication costs. He said for the time being, however, the benefits
did not justify the contract buyouts.
Griffith asked if the number of phone lines in each department had been analyzed in
terms of the number of employees working there. She said the budgeted phone costs for the
sheriffs office, health and DSS were $260,000.00, $70,990.00, and $80,000.00 respectively.
Griffith asked if at least the individual departments could be unified in regards to phone
providers.
Mashburn said the phone companies provided coverage for different areas of the county.
Blumenstein said the telephone budget for the sheriff's office was an anomaly.
Commissioner Griffith asked about dues and subscriptions. She asked if, for one year, all
subscriptions and dues could be cancelled.
Mashburn said professional dues and subscriptions assisted in staying abreast of
legislation and with training opportunities.
Griffith said that in the private sector, training and travel had been cut. She said
countywide, the budget included $200,000 for dues and subscriptions.
Human Resources: County Manager Mashburn said the number of people in the human
resources department would not change; however, one position was being added that was
currently unfunded. (A safety officer position currently listed in the human resources department
will be eliminated, and the duties will be spread out over several departments.)
Chairman Johnson asked about the increase in workers comp for all of the departments.
Blumenstein said workers comp had to be reinstated, and this caused the increase. She
said that in the departments with field -work employees, or the personnel who had to drive while
on the job, the workers comp was more expensive than for office workers.
Elections: Assistant County Manager Ron Smith said a $35,000 storage building had
been requested; however, it was deleted from the budget. He said equipment, presently stored in
a non climate controlled facility, would have been housed in it.
Tax Administration & Land Records: Chairman Johnson asked about the increase in
advertising costs.
Blumenstein said the costs were for legal ads associated with the tax listings and
advertisements for the Board of Equalization and Review meetings.
Tax Collector & Mapping Departments: Commissioner Griffith asked about the
mapping department's contracted services line item.
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Blumenstein said the $90,000 was for planimetric and orthophotography updates. She
said the work was budgeted in advance for the next revaluation, and the funds were rolled over.
(Total cost in 2013, the next revaluation year, will be $400,000 for the reval work.)
Miscellaneous Questions, Directives and Concerns
Commissioner Robertson stressed the importance of determining if taxpayer money had
been saved when the ballasts were replaced with the energy grant funds. He asked if a difference
in kilowatt hours had occurred.
Chairman Johnson directed the staff to contact the sheriff's office about the crime lab.
Johnson said that due to costs, justification needed to be provided on why the county should
continue to fund the lab. He said that if the office desired to retain the facility, a business plan
needed to be provided detailing a turnaround.
Commissioner Mitchell said at some point, he would like a discussion regarding the
sewer line at the former prison camp (satellite jail).
Chairman Johnson said the line would cost $1.5 million.
Pay Raises: Johnson, Mitchell and Griffith voiced opposition about the proposed 3.5%
pay increase for the county employees.
Commissioner Mitchell asked how much would be saved if the 3.5% were removed from
the budget.
Blumenstein said it would not quite be a penny on the tax rate.
Commissioner Griffith said that across the country, people were working harder, they
were doing more, and they were making less money. She said this was the reality, and no one
was exempt in the current economy.
Chairman Johnson said at a minimum, it would take two more years before the economy
started improving, and it would take two more years, after that, for any enacted policies to start
improving the situation.
Commissioner Griffith said 60% of her workforce had been cut. Griffith said she felt
county employees had fared much better than others due to the government's consistency, long
term, when compared to the up-and-down volatility of the private sector.
Mashburn said some people in the private sector were getting raises.
Vice Chairman Norman mentioned concerns about retaining the current county
workforce.
Commissioner Mitchell asked the county manager if there was a possibility that any
employees might look for other jobs, if no pay raises were included in the budget.
Mashburn said probably not this year; however, one IT person recently took a promotion
in a smaller county. He mentioned the government sector could not catch up as fast as the
private sector in terms of pay recovery. Mr. Mashburn said it wasn't fair for county employees
to not receive raises when agencies receiving county funds were awarding pay increases to their
personnel. He said the other agencies included the schools, mental health, and the Mooresville
library. Mashburn said that if the board preferred, the cost of living allowance request could be
replaced with a performance or merit based method for salary increases.
Commissioner Robertson said he was concerned about not having a small amount of
money for pay adjustments to reward the people who were making significant contributions
above and beyond what was needed.
Mashburn said the board previously had allowed one-fourth of the employees' positions
to be studied on a rotating four-year cycle. He said some positions had changed due to increased
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responsibilities, and $35,000 to $50,000 would be needed to make the adjustments. He asked if
the board would fund this initiative. In addition, he mentioned a new proposal pertaining to the
awarding of vacation days for employee perfonnance reviews. He said an employee might be
awarded one day of vacation for achieving "above the standard" in their job performance, and
two days could be given for an "outstanding review." Mashburn said the vacation incentive
would not cost any more money, and it would at least recognize the employees' perfonnance.
Commissioner Griffith proposed a third option. She said each department could be
encouraged to save money in their line items, and at the end of the budget year, the department
head could determine the money's distribution for pay increases.
Mashburn said that not all county departments had the same type of budget.
Griffith said the department heads did not have ownership in trying to provide raises.
She said there wasn't an incentive to save money.
In regards to Griffith's proposal, Blumenstein said that if the sheriffs office received a
grant to pay for supplies, then that department might say the non -county funding would leave
money for pay increases. She said this would place more work on finance and human resources
due to monitoring the positions, paying more invoices, and paying more for auditors.
Blumenstein said it was moving costs from one department to another. She said the finance and
human resources departments wouldn't benefit, but the sheriffs office would receive benefits.
Robertson said the department heads were expected to come in under budget, and
previously, when there was money for raises, that was how they obtained them.
Mashburn asked Blumenstein how much would remain in this year's budget.
Blumenstein said about $1.5 million would be used in fund balance out of the $2,215,000
allocation.
Mashburn asked the board if the money could be used for pay increases. He also asked if
the vacation bonus proposal was acceptable.
Chairman Johnson said the vacation days could be talked about later.
MOTION by Commissioner Johnson to cut all pay raises out of the proposed budget
( 3.5%) and to cut Crossroads Behavioral Healthcare back to the FY 10-11 budget allocation.
VOTING: Ayes — 5; Nays — 0.
Adjournment: The board adjourned the meeting at 9:30 p.m. (Next budget meeting:
Thursday, May 26, 2011 at 6:30 P.M., in the South Wing Conference Room of the Iredell
County Government Center.
Approval:
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Clerk to the Board