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HomeMy WebLinkAboutJune_5_2012_Budget_Session_MinutesIREDELL COUNTY BOARD OF COMMISSIONERS BUDGET SESSION MINUTES JUNE 5, 2012 The Iredell County Board of Commissioners met for a Fiscal Year 2012-2013 budget review session on Tuesday, June 5, 2012, at 4:00 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 Ron Smith, Deputy County Manager Tracy Jackson, Finance Director Susan Blumenstein, Assistant Finance Director Deb Alford, Fire Marshal Ronny Thompson, Sheriff's Chief Deputy Rick Dowdle, Sheriff's Crime Lab Director Misty Icard, Captain Mike Philips, Animal Control Director Chris Royal, Executive Assistant Retha Gaither. and Clerk to the Board Jean Moore. Call to Order by Chairman Johnson. County Wide Fire District: Fire Tax District Board Chairman Frank Phillips said the original county wide fire district budget deleted requests from Wayside ($42,000) and West Iredell VFD ($42,000) for paid chiefs. He said later, after another discussion, it was decided the requests needed to be reinserted. Commissioner Mitchell, who is also a member of the Fire Tax District Board (FTDB), said the reason why the requests were returned to the budget was due to the belief that the board of commissioners should make the decision regarding paid chiefs. Chairman Johnson asked if the FTDB actually voted on the paid chief requests. He also asked how many currently existed. Phillips said the FTDB did not actually vote on the paid chiefs, and there appeared to be two of them. He pointed out, however, that there might be a definition or semantics difference in what the term "paid chief' actually meant. He said the FTDB had discussed paid chiefs at numerous meetings. chiefs. Commissioner Mitchell said a precedent would be set if the county started funding paid Chairman Johnson asked how paid chiefs had impacted the VFD budgets year over year. Phillips said it had never been a line item, and as a matter of fact, a discussion regarding the matter had never arisen until this year. He said that if the practice occurred at any of the VFDs in the past, the FTDB was unaware of the situation. Phillips said the money set aside for paid firemen had occurred for respondents during daytime hours and not for paid chiefs. He said some departments had indicated they used their own funds for paid chiefs, but this could not be verified through the VFD financial reports. Griffith asked which departments were paying their chiefs. Phillips said Wayside and West Iredell. He said West Iredell did not dispute that it had a paid chief. Chairman Johnson expressed concern about all of the VFDs requesting paid chiefs if Wayside and West Iredell were approved. He asked how many departments were included in the district. Phillips said 12. Johnson said paid chiefs would cost a half a million dollars a year based on paying them $40,000 to $42,000. Phillips stated the FY 13 budget, as well as the one for last year, was predicated on the numbers that the chiefs came up with. He said the FTDB believed there was a "volunteer" fire service. Mitchell asked if surrounding counties were paying their fire chiefs. Fire Marshal Ronny Thompson said some where paying them, but the funding source was unknown. Commissioner Griffith asked how the two departments started paying their chiefs. Mr. Phillips said it was suspected the VFD's Board of Directors approved the measure. Mitchell said this had been told at a FTDB meeting. Phillips said the departments were on a contractual basis with the county; however, the situation could be likened to the United Way and its funded agencies. He said that if the United Way disapproved of the way an agency was spending money, then the allocation might be reduced. Commissioner Mitchell noted that the VFDs continually advised that they were independent contractors. He said as such, some departments had indicated they could use the money in anyway they wished. Griffith asked if the county didn't have requirements on how the money could be spent. Mitchell said the FTDB had a good system, but now, the paid fire chief situation had occurred. Phillips said the budget exceeded revenues by $300,000 but the shortage could be funded due to having a carry forward balance for building debt. Phillips said eventually, Lake Norman would go off, but then, other departments would need buildings. He said the shortage couldn't be funded forever, but the district would go into the new year with $949,000 in carry forward reserve. Phillips said any special requirements that came up during the year would have to be funded. Johnson said the expenditures exceeded estimated revenues by about $300,000 a year and $900,000 was in the bank. He said that in three years there wouldn't be any money left. Phillips said it was believed that most FTDB members did not approve of paid fire chiefs. He said, however, the matter had never been voted on. Griffith asked about any documentation that explained how the tax money was supposed to be used. Phillips said it was supposed to be used for the following: 3¢ for operations; 1¢ for buildings; and 10 for trucks. Griffith said if no amendments had occured, then the funding was intended for those items. Mitchell said Davie County provided funds to its VFDs with the understanding that the money could be used in any manner, but no more funds would be given in that particular budget year. Griffith said it appeared that no one on the board of commissioners wanted to micro - manage the VFDs, but if the tax funding structure was created one way, then, it continued in that manner unless changed. She said it didn't appear to her that a couple of departments could alter 2 the structure mid -stream. Griffith said the arrangement could be set up like Davie County, but until then, Iredell should operate under the existing parameters. Vice Chairman Norman said it was being understood the VFD's board of directors had the right to pay the chiefs. Mr. Phillips said this hadn't been stated by him (Phillips), but each individual board of directors governed its VFD. Norman said, however, that tax dollars were being used. Phillips said correct. Norman said he felt the two departments should have discussed the paid chief arrangement with the county before actually taking action. Phillips said it had been stressed that buildings and trucks had to be addressed by the FTDB and commissioners. He said again, that the paid chief issue had only recently come up. He said Commissioner Mitchell became involved around November 2011, and then the fire tax board was notified. Norman asked Commissioner Mitchell about the two departments taking the action before bringing the matter to the county. Commissioner Mitchell said the departments took action on their own. Chairman Johnson said labor costs would eventually drive fire service costs along with buildings. He said some buildings were too elaborate. Johnson said that coping with labor and construction costs would be tough. He said trucks could be postponed, but people would be upset if paid firemen were sent home. Johnson said there was some reluctance on his part to allow paid firemen to begin with, but the VFDs had made a compelling argument about how difficult it was to have manpower during the daytime hours, plus it would help with the insurance ratings. Johnson said once there was a paid chief, it would be simple to hire more people under that person, and then, the service delivery cost would exceed what the county could provide in-house. Mr. Johnson also expressed concerns about the Lake Norman VFD, and the revenue impact if Mooresville annexed into the service area. Griffith asked again why the VFD board of directors didn't operate under the guidelines on how the funds should be spent. Mitchell said the VFDs had advised that the county had no control over the funding. Phillips said the two departments would not dispute that the salaries for the paid chiefs was being derived from operational expenses. Griffith asked if they had asked for an increase in operational funds. Phillips said not in the last couple of years. He said there was a small tax increase last year to cover some operational expense increases. Griffith asked where the expense overage ($300,000) was occurring. Phillips said mainly buildings. Johnson said this was primarily debt service. Griffith said it was understood that if the board approved the county wide fire district budget, it was basically being said that the commissioners were okay with paid chiefs. She asked if this was the correct understanding. Phillips said, "Not explicit but implicit." 3 Mitchell said the money would be used for that purpose, and if it occurred, more departments would request the same next year. He said the VFDs made a compelling argument due to the needed paperwork and training required by the state fire marshal. Johnson asked Mr. Phillips' recommendation. He asked if it would be to cut the two departments by $42,000 or give them what they requested with no paid chief. way. Phillips said it would be to cut the $42,000 for the two VFDs. Mitchell said he didn't know of any FTDB members who would object or vote a different Johnson asked how many paid personnel were at Wayside. Fire Marshal Thompson said two chiefs (operations and suppression) plus a secretary. He said there were at least three salaried people. Griffith asked who performed the paperwork. Thompson said the operations chief. Phillips said there was much work for a VFD, especially the legal and insurance requirements. He said no one was disputing that fact. Thompson said West Iredell had only one chief who made less money than the one at Wayside. Fire Marshal Thompson added that he wasn't pro or con either way on the paid fire chief matter. Mitchell said his belief on the paid chief situation was that the board of commis would either have to deny Wayside and West Iredell or approve the same for all the VFDs. Griffith asked how the other VFDs were accomplishing their paperwork. Phillips said it was imagined the work was divided up amongst those qualified to handle it. Commissioner Robertson said one of the chiefs had discussed the matter with him and advised that they were being paid. Phillips said it was a matter of semantics. Johnson said that when he was contacted about Wayside, the individual was not hesitant to say there was a paid chief. Chairman Johnson said as a matter of fact, the Wayside chief had advised him that the board of directors had approved the salary. Mr. Johnson said the fire chief was told that the board of directors did not fund the department. Commissioner Robertson said a West Iredell fireman had said, "Just allocate us the money, and if we allocate it to salaries, then that's our business." Vice Chairman Norman said not really, due to the money being tax dollars. Robertson said if there wasn't oversight, the risk of all the money being spent on salaries might occur, and then there would be equipment needs. He said at that point, it became a problem for the county. Johnson said that when the economic downturn occurred, the board of commissioners had pushed back capital projects, and some fund balance was used to lessen the impact. He said later some employees were terminated, but first there was some shifting to accommodate the personnel. Johnson said the FTDB was being placed in a similar position, and projects would have to be delayed if there were concerns about having enough money to pay the chiefs. He said paid personnel would increase for the VFDs, and it would be difficult for the FTDB to cut them. Johnson said another constituency would be created that would be hard to deny. He expressed concerns. 4 Griffith asked why the board of directors had deviated from the manner in which the funding was supposed to be spent. Phillips said the VFDs were simply taking the money out of their operational allocations, and this wasn't necessarily a deviation. Mitchell asked Mr. Phillips if the departments would continue to pay their chiefs if the $42,000 were deleted from the budgets. Phillips said it was believed the departments would try to continue paying the chiefs. Mitchell said the departments might divert funds or state that the money was from fundraisers. Phillips said this was possible, and then too, the VFDs might discontinue paying them. Chairman Johnson said some of the VFDs had cash. Phillips said the financial statements had not been seen in a while. He said West Iredell claimed theirs had been submitted, but the county finance office and the fire marshal's office could not find it. Johnson said some departments had several hundred thousands of dollars. Phillips said the VFDs might use that money to pay the chiefs. He said that if the departments were not funded, it would be clear the salaries were being paid out of something other than tax money. OTIO by Commissioner Mitchell to use the original FTDB budget which deleted the $84,000 (Wayside @ $42,000 and West Iredell @ $42,000) and to advise the departments that if they planned to pay the chiefs, the money would have to be taken out of their own funds. Vice Chairman Norman asked how the board of commissioners could stop a department from going ahead and paying their chief from tax dollars. Phillips said that if taken out of the budget then it was clearly being taken out of their allocation. He said it might not be known if the VFDs continued with a paid chief. He said if so, the money would be from funds they already had, or some type of fundraiser. Mr. Phillips said that to his knowledge the VFD fundraisers were down in revenue due to not many occurring. He said it would be micro -managing if the county said the VFDs could not have a paid chief. Norman asked how the county could disallow a VFD from using equipment funds to pay a chief. Phillips said he didn't know if the county could do this other than by saying the VFD was receiving an operational budget and was expected to pay for appropriate items out of it. He said then, the board would have to be on the alert when a VFD needed $10,000 due to a motor supposedly blowing up. Phillips said that if the budgets were reduced, but the VFDs continued to pay the chiefs, then the money was coming from somewhere with the source being unknown to the FTDB. He said that if a VFD came up short, then it would have to deal with it, not the FTDB. Johnson said if $300,000 more was being spent over the revenues, then the nest egg was eroding, and this was not a good time to add paid chiefs. County Finance Director Blumenstein said one reason why there wasn't VFD monitoring was due to the fact that if too much control occurred, then they (VFDs) became components of county government. She said some autonomy had always been given. Johnson said that if too much control developed, the county would have a liability when the VFDs had a problem. R Blumenstein explained that the $300,000 referred to by Mr. Phillips was just the revenue expected for the FY 13 current ad valorem taxes. She said there was other revenue that could be added, and this was the delinquent taxes. Blumenstein said $168,140 was estimated as revenue that had been levied in prior years. She said the revenue that was set aside, plus the other income, minus the expenditures, would only amount to a shortage of $155,000. Robertson referred to a spreadsheet showing the Wayside and West Iredell salaries. He said the funding formula was based on calls. Phillips said it was based on the formula created by the chiefs. Robertson said then, the two departments were not allocated anymore money due to the request to pay for their chiefs. Phillips said they were not given anymore money. Robertson asked why then was the money being taken away (proposed motion). He said there was a county obligation to fund the VFDs based on the number of calls. Robertson said the two departments had only said they were going to spend it for something different, as in paid chiefs. Johnson said there was a concern about setting a precedent. Robertson said the formula had not changed. Johnson said labor costs would soon start driving the "train," and when this occurred, county control was gone. Mr. Johnson said he wasn't trying to violate the formula rather there was an effort being made to support its integrity. Griffith asserted that not all of the VFD responses or calls were necessary. She said this sometimes padded the numbers. Robertson said figuring out when a fire truck rolled was a different issue. He said that at a past retreat there was a discussion as to why an EMS truck, a rescue squad vehicle, and two fire trucks might respond. Johnson asked the finance officer if there would be wash on the revenues/expenditures or would the county remain in a hole. Blumenstein said the county would be $155,000 short if the $84,000 remained in the budget. She said if deleted, the amount would be cut in half. Blumenstein said that in the last two or three years a transfer from the other "pennies" had occurred to fund operating costs. Johnson asked Phillips if this was okay. Phillips said it was something that had to be done to fund the fire service. Johnson mentioned the $155,000 shortage and asked why the budgets couldn't be cut three percent to balance out. Griffith said it might also be time to review the funding formula. Johnson said the commitment was made before "everyone was buying a house they couldn't afford, and the real estate bubble fell flat." Mitchell said the home values had decreased too. Johnson asked how much longer the transfer of $155,000 could continue. Mitchell asked the finance officer if three percent would be enough. 6 Blumenstein said three percent of the operations would be $86,800 and this included the $42,000 for Wayside and West Iredell. She said that if the $42,000 were deleted for both departments and everyone else was cut three percent, the budget would be balanced. Robertson asked whether or not the board of commissioners had the flexibility of saying the $42,000 could not be spent in next year's budget. Johnson said the VFDs couldn't be told what they could spend the money on. Robertson said that if the $42,000 were deleted, the VFDs could say they didn't pay anyone but now the departments had $42,000 less. He said this would be a penalty for asking for paid chiefs. Johnson said that if the board of commissioners had said yes, and the chiefs were hired, they still had $42,000 less to operate their departments. He said the shortage discussion was occurring due to the county not having the money. Norman said he agreed with Mr. Mitchell's motion. VOTING: Ayes — 3; Nays — 2 (Griffith and Robertson) MOTION by Chairman Johnson to reduce the budgets by three percent to bring them in line with the available revenues. Commissioner Griffith asked if Wayside and West Iredell would be cut an additional three percent. Robertson said he would vote for the three percent but he would be more inclined if the budgets for West Iredell and Wayside were not included. Johnson said that with the three percent, and the $84,000.00, the budget would be balanced. Blumenstein said three percent was $86,800. Mr. Johnson then withdrew his motion. SUBSTITUTE MOTION by Chairman Johnson to reduce the budgets by five percent. Commissioner Griffith asked if Wayside and West Iredell would be included in the five percent cut. Robertson said he couldn't cut West Iredell and Wayside five percent plus their $42,000. Griffith asked if the five percent created a balanced budget. She said this still didn't address the real issue. Robertson said the cut would force the departments to address the matter. Chairman Johnson said his intent was to stop the "bleeding" now. He then withdrew the substitute motion or the five percent reduction. He asked the finance director to determine how much would have to be cut from the VFDs with the exception of the two departments to bring the budget into compliance. Blumenstein was given a few minutes to compute the amount. Robertson said either side could be argued with compassion. He said, "One part was to allow people to make decisions and hold them accountable at the lowest level. Instead of the federal government, we believe it might be the state. If not the state, then at the local level. Well, the fire departments are saying, `Let us make that decision.' We are saying, `No, we believe that people ought to let us make the decisions.' It appears that we are not comfortable with others making the decisions." VA Johnson said someone had to watch over things. Griffith said that as elected officials the commissioners were tasked with the oversight. She said the VFD boards of directors were not elected. Griffith said the lowest responsibility went to the commissioners. Blumenstein said that if the $84,000 were cut, it would take a 2.56% decrease for every other department to balance out. (This excludes West Iredell and Wayside.) Phillips asked if the $290,000 in insurance was included. He said this shouldn't be cut. Blumenstein said it did. She then recomputed. Blumenstein said the actual percentage would now be 2.95% or rounded off at 3%. MOTION by Chairman Johnson to cut the departments in the county wide district by 3%, with the exception of Wayside and West Iredell. VOTING: Ayes — 5; Nays — 0. Phillips said it was being understood that West Iredell and Wayside would have their budgets reduced by $42,000 each, but the three percent cut wouldn't be imposed on them. East Alexander Fire District: Joining the board to discuss this fire district were Chief Scotty Abernathy and Chad Cochrell. Mr. Abernathy said there was a one cent tax increase request (five cents to six cents). He said in 2009, Station 2 was built on Paul Payne Store Road, and it covered all of the Riverwalk Subdivision and Stewart Rock Road. Abernathy said more people in Iredell County saved on their insurance premiums than those in Alexander County. He said previously some of the residents were in a Class 10 insurance rating, but now Stony Point had a 7. Abernathy said a 6 rating was missed due to chicken houses. He said now, however, the pumping capacity had been achieved by purchasing a truck which carried the department up to a 4,000 gallon a minute pumping capacity. Mr. Abernathy said the current five cents brought in $74,256 and the six cents would generate $89,108. He said the call volume for both counties was about the same with 520 total calls last year. Chairman Johnson asked if the people who had a 10 rating resided in Iredell County. Abernathy said yes. Johnson asked the rating now. Abernathy said a 7 and one resident had advised that his homeowner's insurance had gone from $1,800 to $875 due to the rate improvement. He said the Department of Insurance (DOI) was about caught up in the inspections. Abernathy said the DOI would probably visit next year. Johnson asked when the department went to a 7 rating, and did Mr. Abernathy think this could be lowered with the next inspection. Cochrell said the 7 occurred around 2007. Johnson asked Abernathy if he was 90% sure the department could achieve a 6 rating next time. Abernathy said yes. He said the department just about achieved at the last inspection, but the chicken houses hurt. Mitchell asked why the chicken houses impacted the ratings. Abernathy said the 3,500 gallon a minute fire flow for them. He said that when the department was previously inspected the trucks were capable of a 3,250 fire flow. Abernathy said the department probably could have pumped 3,500, but not according to the rating 8 requirements. He said that with the current 7 rating, nothing in Iredell or Alexander County was over five miles. Continuing, he said the response time was four minutes from when the pager went off to the arrival. Griffith asked why another penny was needed. Abernathy said additional debt. He said debt service started in 2009 with the new station, and the payment ran about $20,000 a year. Chief Abernathy said the department had no paid firemen. Commissioner Mitchell clarified the district desired to increase the tax rate from 5 cents to 6 cents. The board members offered no objection to the penny increase. Mt. Mourne Fire District: No one from this district attended the meeting. The district had requested to increase the tax rate from 3.5¢ to 4.0¢. The board members offered no objections to the half cent increase. Shepherd's Fire District: No one from this district attended the meeting. The current tax rate for this district is 7¢ and no increase was requested. Chairman Johnson said information had been received showing Shepherds had incurred late charges on their debt service. He mentioned a late charge of $800 that was later reversed. Johnson said late charges of $802; $802; $725; $802; and $802 had later occurred. Johnson asked the finance officer if this district was receiving its allocation on time. Blumenstein said the district received its allocation about the same date every month, and no allocation payments had been missed. She added that a direct deposit payment had been wired into Shepherd's bank account for many years. Johnson said citizens in the Shepherd's district did not intend for their tax dollars to be spent on late charges to a bank. He requested that a letter be sent to Shepherds advising that subsequent to the forthcoming budget, and heretofore, if there were any late charges the payment would be deducted from the VFD's payments and an amortization sheet would be requested each year. Troutman Fire District: Chief Allen Church, Chairman of the Troutman Fire District Board Terry Bibleheimer and Treasurer Matt Shannon attended the meeting. Bibleheimer said Mr. Church was a full-time chief and this had helped with the manpower and coverage. He said many items had been accomplished in the 2008 five-year plan which helped to achieve the 6 insurance rating. Bibleheimer said the residents outside of the Troutman town limits should be saved $1,864,000 in property insurance premiums. He said the district was requesting a tax increase from 5¢ to 6.5¢ and the extra funding would be set aside for a vehicle reserve fund. Bibleheimer said the district currently had $200,000 in reserve. He said the extra penny and a half would yield about $250,000 and it would be earmarked for reserve capital improvements. Bibleheimer said a 25 -year span was used in the plan for major apparatus. He said the tax increase would result in a property insurance premium savings of $373 for each homeowner at an additional cost of $51. Chairman Johnson said a large revenue increase occurred when Troutman split from the county wide district. He said Troutman now wanted 30% more. Bibleheimer said maybe from a penny standpoint, but it was really about increasing from $900,000 to $1.5 million. Johnson said a penny brought in $176,000. He said VFDs had requested to be fire tax districts with the justification to the citizens that the rate would be lowered due to more revenue. Johnson said, then, when the fire revenue came, the hardest people to convince that the rate should be cut were the ones who had been in favor of the district's creation. 9 Chief Church said Troutman only had one station before it became a separate district. He said now there were four to nine people working during the day. Church said to pay them it took $400,000 a year. He said that in order to make the calls people had to be paid. Bibleheimer said Troutman now had more people, vehicles and stations. Chairman Johnson mentioned what he said earlier, that once labor costs started driving the situation that control was then lost. Chief Church said that if only volunteers were relied upon, he doubted two thirds of the calls would be made during the day. Johnson asked when the next vehicle would be purchased. Bibleheimer referred to a spreadsheet and said 2013-14. Shannon said the tax increase was focused on capital needs. Johnson cautioned the Troutman officials about the economy. He said it wouldn't be surprising if the county's next revaluation brought in less money per penny than at the present. Bibleheimer said Troutman wasn't playing games, and the budget was bare bones. He said that on efficiency (average call per staffing), the department ranked number 1 and on the average budget dollar, per call made, Troutman ranked number 1 in efficiency. Bibleheimer said the department was efficiently operated. Shannon said that for a 24 hr. period, the paid staff only received compensation for 18 hrs. He said two firemen slept overnight but they were paid only for five hours. Shannon said the first shift came in at 7 a.m., the second shift arrived at 9:30 a.m. and worked through 6 p.m., and the night staff then reported to work. He said two people stayed over the weekend. Griffith asked how many calls were actually for house or vehicle fires. Church said it was about 60/40 with 60% being medical and 40% being fire. Bibleheimer said there were 1,459 calls last year. Robertson asked if any costs could be reduced. Church said the department was already trying. He asked, however, what happened if a unit responded to a chest pain call, then left, and a house fire then occurred. He said the staff would have to return to Statesville to retrieve a truck. Church said cost savings were trying to be achieved at the Statesville base because two people might be sent in an SUV, but this couldn't occur on every call. Johnson said his concern going forth was that if the economy didn't improve or it slowed even more, the indebtedness would hurt. He said this was trying to be avoided. Johnson said no one was arguing that a good deal was occurring with Troutman's five cent tax rate. He said no one was being critical of the department's operations. Chairman Johnson said he would be willing to work with the capital plan, but he could not say the equipment would be purchased on the listed dates. Johnson said his vote would be to agree to the capital, and there was agreement on a revenue stream, but if this changed (revenue stream) the capital replacement stream changed. He referred to a capital expenditure that needed replacement in 2015, and requested that the fire district request revenue projections from the county finance office. Johnson said that if the finance office did not have a level of comfort that the revenues would support the expenditure, then it should be eliminated. Continuing, he said that if the district went ahead and made the request, the commissioners would deny it. Bibleheimer said this was telling the district to live within its means. He said the district did not want further debt, and what currently existed was manageable. Bibleheimer said the proposed plan allowed for the district to not go into debt. 10 Johnson asked if a cushion amount could be maintained. Bibleheimer said it was $200,000. He asked if the cushion was being requested as the vehicles were purchased. Johnson said yes. Shannon said the chief had estimated what could be paid for a truck and this was projected out. He said three percent inflation was used. Johnson said a reasonable cost estimate for a fire truck could be provided in three to five years, if the trucks didn't change. He said, unfortunately, the department of insurance would make different requirements on what was necessary on the trucks. He asked if the district would agree to consult with the finance office about the estimated revenues when an expenditure was planned. Additionally, he asked for the board of commissioners to be notified if the fund balance fell below $200,000. Bibleheimer said the district could work with the $200,000 cushion. Rescue Squads: County Manager Smith discussed the FY 13 rescue squad requests as follows: FY 13 Department Request FY 13 Manager Recommendation Iredell $390,060 $236,802 Mooresville 235,000 141,245 North Iredel1 106,500 109,654 Troutman 75,000 70,658 Smith said all squads with the exception of Mooresville were being recommended for a three percent increase over the revised FY 11-12 budget. He said the Town of Mooresville's Fire/Rescue had assumed jurisdiction over all of the municipal area and this had impacted Mooresville Rescue's service area. Bo Winecoff, with the Mooresville Rescue Squad, said problems had occurred with the Town in regards to the April 2011 memorandum of understanding. He said the matter had been turned over to an attorney who was investigating the situation. Winecoff said the agreement stipulated the first responder program would not be changed. Pertaining to the budget, he said the department had been cut down to one person, but this wasn't what the squad wanted to do especially with the increase in patient transports and EMS backups. He said 24 people had been transported since January, but five years ago the number would have only been 12 so there had been an increase. Winecoff said the squad's budget increase was for a second person at the base, plus equipment needs due to FCC requirements which would require replacements. He said the Town of Mooresville used an 800 mhz system, and it was difficult to communicate with its personnel. Lastly, he said one vehicle was 22 years old that needed to be replaced. He said a 17 year old ambulance was recently purchased for $160,000 from an agency in Cabamrs County that no longer existed. Robertson asked what the problems were with the 22 year old ambulance. Winecoff said it was "nickel and diming" the squad. He said due to the ambulance being a 4x4 it would be taken out of service but used as a utility vehicle. Chairman Johnson asked if the squad could be viable with the recommended funding. Winecoff said the squad would make it, but he would like to have the three percent back. Johnson asked if the squad had any capital reserve. Winecoff said there was the county's capital reserve, plus the squad had two CDs as well as regular checking/savings. Mr. Johnson mentioned to Winecoff that after the budget was finalized, he would like to discuss the situation that was occurring with the Town. Sheriff's Department Crime Lab: Chief Deputy Rick Dowdle introduced Lab Director/Chemist Misty Icard. Also attending was Captain Mike Phillips. Dowdle distributed information containing crime lab statistics. Commissioner Mitchell asked about misdemeanor marijuana cases. Dowdle said the district attorney would not prosecute these cases. Icard said a small amount of marijuana was classified as an ounce and a half or less. Johnson asked how the misdemeanor marijuana cases were resolved. Dowdle said through fines and court costs. He mentioned that Tony Davis was a part time crime scene technician and should not be listed in the lab's budget. Dowdle requested that the $24,000 listed for Davis be shown in the sheriff's budget (5 10) under part-time salaries. He said the $24,000 should be taken off the $316,143 in seized funds funding the lab. Johnson asked the crime lab's total operational costs. Dowdle said $540,116 before the crime scene tech amount was deleted. Blumenstein said this amount was the total cost. Dowdle said the department would pay $316,143. Johnson asked, net to net, how much it was costing to operate the crime lab. He asked if it was $316,143 and what the costs were last year. Blumenstein said $299,885.00, but then salaries/benefits were deleted ($140,034) and other operating costs ($16,795) as well as estimated fees ($35,000) leaving $108,056 coming from seized funds. Johnson said $108,056 from seized funds was used to balance the budget. Blumenstein said this was correct for FY 12. Johnson asked if the lab could bring in more revenue. He asked if it could be predicted when there would be no seized funds needed, especially since these had been decreasing. Dowdle said more revenues were being obtained. He said it was unknown when the lab would be 100% self sufficient. Dowdle said, however, a price tag could not be estimated when solving a person's case. He said citizens wanted their breaking and entering cases solved immediately, and the local crime lab helped. Dowdle said the Assistant U.S. Attorney for the Western District of North Carolina had sent a letter about the crime lab being an asset, especially for the federal cases. He said the agencies were being told about the cost, and this was becoming evident in the increased revenues. Dowdle said without the local lab, the situation would be severe if the county had to rely on the state lab. Johnson asked if there was an estimated prediction on the revenue for next year. Icard said $120,000 was predicted. She said it was doubling every year. Icard said it sometimes took a case five years to get to court, and then probation might be attached adding another five years. She said unfortunately, if the DA or judge didn't ask for the fee it wasn't paid. Robertson said the county was losing money when the fee wasn't paid. He suggested that the lab not provide the testing if the DA failed to request the lab fee. Robertson said it was believed the crime lab provided a valuable service, but the business aspect needed to be tightened 12 up. He mentioned that when the commissioners were first approached about the proposed lab, they were told it would break even. Robertson asked if the costs would remain the same or would they increase. Griffith said the costs nearly doubled from last year. Dowdle said this was for equipment, plus some items for accreditation. Robertson said salaries increased. Dowdle said he thought the costs might decrease. Griffith asked why the DA couldn't sign a contractual agreement. Icard said the DA didn't actually bring the samples to the lab, plus the judge was the one who ordered the payment. Griffith asked about the eight phone land lines for the lab. Icard said they could only account for six. Blumenstein said the others might be fax lines. Robertson asked how much was being received in seized funds each year. Dowdle said these funds had decreased. Blumenstein said that as of May 2012, seized funds were $399,000 compared to last year at $220,000. She said prior to that it well over a million dollars. Dowdle said most of the seized funds came from the federal government. Johnson said he was understanding that crime lab operating expenses had leveled off and an increase in revenues would be achieved. Dowdle said yes sir. Chairman Johnson said there was a problem with the 4 -wheel drive vehicle request. Dowdle said he would work on the situation. Robertson asked if letters could be written to the judges about the need for the lab payments. Dowdle said this had already occurred, but it could happen again. Griffith asked if the 4 -wheel drive vehicle could be deleted from the budget request. Dowdle said the office was looking to downgrade the vehicle. Chairman Johnson said Chief Dowdle could notify the manager or finance officer about the 4 -wheel drive vehicle. Gas to Propane Conversion Program: Due to time constraints, Chairman Johnson said he would contact Dowdle about the propane program. Animal Control: No changes were made to the manager's recommended budget. Compensation of Employees During FY 13: County Manager Smith said he previously had mentioned the proposed two percent performance pay increase and the Salary Market Cycle Adjustments. 13 Robertson said it was understood the Cycle adjustments would take care of compression, and this would be for two of the four cycles. He said there was also going to be a one time only incentive performance pay increase. The board members offered no objections to the proposed compensation measures. vil Air Patrol: Chairman Johnson said this was an excellent youth program. Smith said the patrol had asked for $6,260 but the amount had been totally cut. OTION by Chairman Johnson to put $2,500 in the budget for the Civil Air Patrol. VOTING: Ayes — 5; Nays — 0. SCAN Funding: Commissioner Griffith requested that the SCAN budget be increased. Smith said SCAN had requested $10,000 but only $5,000 had been recommended. MOTIO by Commissioner Griffith to add an additional $2,500 to the SCAN budget. (The total budgeted amount will now be $7,500.) VOTING: Ayes — 5; Nays — 0. Educational Incentives: Chairman Johnson asked if the Inspections Department would be included in the two percent performance pay measure. Smith said the inspectors would be eligible for the two percent based upon their evaluations. He said educational incentives would be evaluated. Johnson asked if educational incentives would alleviate compression. Smith said yes. Robertson said that if there were compression issues then they should specifically be addressed. He said the employees shouldn't be encouraged to seek extra training, paid out of county funds, in order to have a higher salary. Robertson said especially, if there wasn't a need. Smith said during this year there hadn't been time to analyze incentives. Robertson said legitimate professional development was all right if there were needs. He said the county should avoid incentivizing what was not needed. Johnson said at the beginning of the budget process, it was agreed that any money saved from cuts would be added to capital. Blumenstein said in the general fund that only about $26,000 had been cut, and this was in the public library. OTION by Chairman Johnson to (1) instruct the staff to craft a budget ordinance incorporating the board cuts (2) for the cuts to be added to the capital reserve fund and (3) for the ordinance to be presented at the next meeting (June 19, 2012). VOTING: Ayes — 5; Nays — 0. ADJOURNMENT: The meeting adjourned at 6:45 P.M., and the board members proceeded to the Commissioners' Meeting Room for the regular 7:00 P.M. meeting. Approval: 14 Clerk to the Board