HomeMy WebLinkAboutMarch_19_2013_Regular_MinutesIREDELL COUNTY BOARD OF COMMISSIONERS
REGULAR MINUTES
MARCH 19, 2013
The Iredell County Board of Commissioners met on Tuesday, March 19, 2013, at 7:00
PM, in the Iredell County Government Center (Commissioners' Meeting Room), 200 South
Center Street, Statesville, NC.
Board Members Present
Chairman Steve Johnson
Vice Chairman Marvin Norman
David Boone
Renee Griffith
Ken Robertson
Staff present: County Manager Ron Smith, County Attorney Bill Pope, Finance Director
Susan Blumenstein, Sheriff's Chief Deputy Rick Dowdle, Planner Rebecca Harper, Planning,
Development and Transportation Director Joey Raczkowski, and Clerk to the Board Jean Moore.
CALL TO ORDER by Chairman Johnson
INVOCATION by Chairman Johnson
POSTING OF THE COLORS BY BOY SCOUT TROOP 603 & PLEDGE OF
ALLEGIANCE: Boy Scouts Trevor Johnson, Brody Kufahl, Zachary Tollisoe, Colby Cloer,
Jakob Lambert, Timothy Stafford, Colin Lewis, and Austin McCurdy posted the colors and led
the Pledge of Allegiance. Bethlehem United Methodist Church, located at 607 Bethlehem Road,
Statesville, NC, sponsors the troop, and the scout leaders are Kimmy Lambert, Scott Johnson and
Robert Goforth.
ADJUSTMENTS OF THE AGENDA: OTION by Commissioner Griffith to
approve the agenda with the following adjustments.
Additions: • Closed Session — G.S. 143-318.11 (a) (6) — Personnel
• New Business — Commissioner Griffith, Commissioner Boone & Chairman Johnson
requested an opportunity to speak.
VOTING: Ayes — 5; Nays — 0.
ADMINISTRATIVE MATTERS
Request from the Planning Department to Call for a Public Hearing on
April 2, 2013, for the Consideration of a Release of Zoning and Subdivision Jurisdiction
to the Town of Mooresville for Alcove Road Langtree Properties, LLC: Planning,
Development and Transportation Director Joey Raczkowski presented the staff report for this
case as follows:
EXPLANATION OF THE REQUEST
Brad Howard, Alcove Road Langtree Properties LLC, has requested that the zoning and
subdivision jurisdiction of four properties totaling 24.1 acres be released to the Town of
Mooresville. The proposed use of the property is a mixture of educational, institutional,
residential, office, and retail. They are requesting the release in order to get water and sewer
from the Town of Mooresville.
OWNER/APPLICANT
OWNER: Crescent Resources, LLC APPLICANT: Brad Howard
410 Scotland Ave 229 Medical Park Road
Charlotte, N.C. 28207 Mooresville, N.C. 28117
PROPERTY INFORMATION
LOCATION: On Langtree Road
7
between Templeton Road and
Edgeway Road in Mooresville;
_
more specifically identified as
PIN #64645-67-4656, 4645-67-2481,
4645-57-8750, & 4645-57-5236.
DIRECTIONS: 1-77 South to
Langtree Road exit and turn right,
merge onto Langtree Road, on
the right.
SURROUNDING LAND USE: This
property is surrounded by
residential uses as well as a
charter school and Schumacher
Homes, which are both under
construction.
SIZE: The property is 24.1 acres.
EXISTING LAND USE: The parcels are currently vacant
ZONING HISTORY: This property was zoned R -A when county -wide zoning was established in
1990. On September 18, 2012, 2.655 acres of this property was rezoned to HB (Highway Business),
along with an adjoining 1.28 acre parcel where Schumacher Homes is currently building an
office and three show homes. The property to the north is in the Town of Mooresville's
jurisdiction.
OTHER JURISDICTIONAL INFORMATION: This property is located just inside Mooresville's short
range USA boundary. The Town has approved water and sewer extension to the property and
the Planning staff has submitted a letter of acknowledgement, both of which have been
included in the packet. This area is proposed for residential and commercial uses in the
Mt. Mourne & South Iredell Master Plan adopted by the Town of Mooresville.
OTHER SITE CHARACTERISTICS: This property is located in the Catawba/Lake Norman WSIV-CA
water supply watershed therefore there are minimum lot size/impervious coverage restrictions.
IMPACTS ON LOCAL INFRASTRUCTURE AND/OR FACILITES
TRAFFIC: The nearest location for NC DOT traffic counts is on Templeton Road, just north of this
site. In 2009, the average number of vehicles per day on this section of Templeton Road was
2300. The capacity for this section of Alcove Road is 11,000 vehicles per day.
SCHOOLS: Based on the information provided, there is no way to determine how many
residential units will be constructed when the property is developed. This area will be served by
Mt. Mourne Elementary, Brawley Middle, and Lake Norman High School. At this time, Lake
Norman High School is closed to students outside of their school boundary and Mt. Mourne is on
a watch list due to capacity. Brawley Middle is not close to capacity.
STAFF COMMENTS
STAFF COMMENTS: From a Planning perspective, this release meets the criteria for release of
zoning and subdivision jurisdiction. The release would allow the property to be developed with
water and sewer. One of the strategies in the 2030 Horizon Plan calls for the Planning staff to
direct growth to areas within the USA boundaries where water and sewer can be provided by
the towns. As other properties in this area have begun to develop (i.e., Langtree Charter
Academy and Schumacher Homes), the Planning staff has encouraged the applicant to
develop the property with municipal utilities as is called for in the Plan. Although a specific plan
for development has not been submitted to the County or the Town, the proposed uses of the
property fit into the future land use plans for the County and the Town of Mooresville. Both plans
call for residential and commercial development in this area. The Planning staff recommends in
favor of this request.
Mr. Raczkowski requested guidance from the board on how to deal with these types of
requests in the future.
Commissioner Boone said it was understood that Mooresville planned to annex the area
in June. He asked why the request was being brought before the county commissioners.
2
Raczkowski said a public hearing at the county level would give the commissioners a
chance to hear about residential densities that might occur in the fringe areas of the
municipalities.
Commissioner Robertson noted the positive aspect of having a new charter school next to
the development.
Chairman Johnson said several years ago, former County Commissioner Godfrey
Williams made a motion to hold these types of public hearings in order for citizens, as well as
the county commissioners, to have an opportunity to provide input. He said the board adopted
Commissioner Williams' motion in the form of a policy.
Commissioner Griffith asked the proposed enrollment for the charter school.
Raczkowski said 1,200 students.
OTIO by Vice Chairman Norman to call for a public hearing on April 2, 2013,
regarding the Alcove Road Langtree Properties, LLC request.
VOTING: Ayes — 5; Nays — 0.
Request from the Planning Department to Call for a Public Hearing on
April 2, 2013, for the Consideration of a Release of Zoning and Subdivision Jurisdiction to
the Town of Mooresville for Cicero & Cindy Sullivan: Planning, Development and
Transportation Director Joey Raczkowski presented the staff report for this case as follows:
EXPLANATION OF THE REQUEST
Cicero & Cindy Sullivan have requested the zoning and subdivision jurisdiction of their .66 acre
parcel be released to the Town of Mooresville. The property is currently being used for
commercial purposes. They are requesting the release in order to get water from the Town of
Mooresville. Two wells have failed on this property already. The Town officials have agreed to
extend water to the property, but they require the property to be released into their jurisdiction.
OWNER/APPLICANT
OWNER: Cicero & Cindy Sullivan
116 Shepherd Valley Road
Mooresville, N.C. 28115
PROPERTY INFORMATION
LOCATION: At the corner of Charlotte Hwy and Laura Road in Mooresville; more specifically
identified as PIN # 4658-53-3676. 1 ft
DIRECTIONS: Hwy 21 south, past
Cornelius Road on left.
SURROUNDING LAND USE: This
property is surrounded by
commercial and residential.
SIZE: The property is .66 acres.
EXISTING LAND USE: The parcel is
currently being used for commercial
purposes, including pay for internet
service, salon Images, and Affordable
Comfort Systems.
ZONING HISTORY: This property was
zoned NB in 1991. The property to the south was rezoned to NB in 1985. The property to the
southeast was rezoned to NB in 2005. The property to the northeast has been zoned RA since
1991. The property to the northwest was released into the Town of Mooresville's jurisdiction in
2007 in order to get water from the Town due to contaminated wells.
OTHER JURISDICTIONAL INFORMATION: This property is located inside Mooresville's short range
USA boundary. The Town approved water and sewer extension to the project and the Planning
3
staff has submitted a letter of acknowledgement, both of which have been included in the
packet.
OTHER SITE CHARACTERISTICS: This property is located in the Catawba/Lake Norman WSIV-PA
water supply watershed. However, since the lot is less than one acre, the impervious limitations
do not apply.
IMPACTS ON LOCAL INFRASTRUCTURE Al FACILITES
TRAFFIC: In 2010, the average number of vehicles per day on this section of Charlotte Highway
was 11,000. The capacity for this section of Charlotte Highway is 13,800 vehicles per day.
However, since this property has been used for commercial purposes since it was developed in
1991, there would be no additional traffic generated with this change.
SCHOOLS: Because this is a commercial property, there should be no direct implications on
local schools.
STAFF COMMENTS
STAFF COMMENTS: This request meets the criteria for a release of zoning and subdivision
jurisdiction. At the intersection of Charlotte Highway and Cornelius Road, former underground
storage tanks are releasing petroleum into the surrounding soils. This is contributing to the
contamination of several wells with benzene and other chemicals. The property in question has
been experiencing water quality issues due to the contamination. The Town of Mooresville has
agreed to provide water service to the properties under the condition that they are released
into the Town's zoning jurisdiction. The Planning staff recommends in favor of this request.
OTIO by Commissioner Griffith to call for a public hearing on April 2, 2013,
regarding the request of Cicero and Cindy Sullivan.
VOTING: Ayes — 5; Nays — 0.
Request from the Sheriff's Office for Approval of Budget Amendment #26 for the
Transfer of $32,000 in Seized Funds for the Following Firearms Training Range Costs:
Lease of Property @ $8,000; Fencing @ $15,000; Gravel/Signage @ $7,500; and Metal
Carport Covering @ $1,500: Sheriff's Chief Deputy Rick Dowdle requested permission to
use $32,000 in seized funds for the construction of a firing range. He said the range would be
used by the training academy participants as well as by local law enforcement officers seeking
firearms certification.
Commissioner Robertson asked if students in Mitchell Community College's Basic Law
Enforcement Training Program would be allowed to use the range.
Dowdle said, "We've not been approached by the college. We would be open if they
needed it, but only government use will be allowed."
Commissioner Boone asked the plans of the other law enforcement agencies due to the
Fraternal Order of Police selling its firing range.
Dowdle said no discussions had occurred about the matter with the other agencies.
Robertson said he did not want all of the other agencies asking for a range. He said if
public dollars were used, the other entities should be able to use the facility, assuming they
contributed the same amount of money they had been paying to the Fraternal Order of Police.
Chairman Johnson said Mr. Kidd, the firing range property owner, was willing to provide
some of the initial grading work at the site.
Dowdle said this was correct.
OTION by Vice Chairman Norman to approve Budget Amendment #26 for the transfer
of $32,000 in seized funds for the firearms range costs.
VOTING: Ayes — 5; Nays — 0.
4
Request from the Fire Marshal's Office for Approval of Budget Amendment #28 to
Appropriate Grant Funds of $1,000 from the Firefighters' Burned Children Fund: Fire
Educator Misty Sherrill requested approval of a budget amendment for the acceptance and
appropriation of $1,000 in grant funds. She said the funding would purchase fire and life safety
materials.
OT10N by Commissioner Griffith to approve Budget Amendment #28.
VOTING: Ayes — 5; Nays — 0.
Request from the Health Department for an Exception to Current Financial
Accounting Procedures In Order to Apply for Grants throughout the Calendar Year:
Interim Health Director Susan Johnson said a discussion occurred about the loss of grant funding
at a recent board of health meeting. She said there was a problem due to having to gain county
commissioner approval for grant application submissions. Ms. Johnson said the board of health
only met every other month, and this further complicated the situation due to the short turnaround
periods between notifications of grant opportunities and the deadline for applications. She
requested an on-going exception to the current financial accounting procedures in order to apply
for public health grants. Ms. Johnson said the exception would not apply to grants requiring
matching funds from the county. She said the approval would enable the health staff to indicate on
the applications that the board had approved them. Ms. Johnson said that once the health staff
submitted an application, a copy could be sent to the county finance office. She said budget
amendments would be requested if any grants were awarded.
Commissioner Robertson said it was understood the health department would not apply for
grants where matches were needed. He asked what happened if a flat amount of money was
required, or a "two to one." Robertson said the health department shouldn't miss out on
opportunities to apply for grants. He said also, the new process should include the grants that were
normally budgeted.
In reference to "flat amounts of money" mentioned by Commissioner Robertson,
Ms. Johnson asked if the health department could seek guidance from the county finance office
when completing these types of applications.
Commissioner Robertson said the health department could notify the county
sioners about the need for any county funds that had not been budgeted.
Chairman Johnson gave the following example: "There is a $50,000 grant with a 10%
local match, and the health department has the matching amount without tapping into county
revenues." He said this would be acceptable.
Robertson said correct.
County Manager Smith offered no objections to the new procedure. He said the board of
commissioners could be polled if there were questions from the county management team.
Chairman Johnson, a member of the board of health, said the new procedure would help
eliminate an obstacle or hindrance that had been mentioned in the health department's Strategic
Plan.
Commissioner Griffith asked if the new procedure would be on a permanent basis.
k,
To appropriate a grant from the Firefighters' Burned Children Fund in the Fire Marshal's office for the
purchase of fire and life safety materials.
BA#28
3/19/2013
Account#
Current Change Amended
104544488000
FBCF Grant
-
(1,000)
(1,000)
105544 551000
Fire Education Materials
10,326
1,000
11,326
Request from the Health Department for an Exception to Current Financial
Accounting Procedures In Order to Apply for Grants throughout the Calendar Year:
Interim Health Director Susan Johnson said a discussion occurred about the loss of grant funding
at a recent board of health meeting. She said there was a problem due to having to gain county
commissioner approval for grant application submissions. Ms. Johnson said the board of health
only met every other month, and this further complicated the situation due to the short turnaround
periods between notifications of grant opportunities and the deadline for applications. She
requested an on-going exception to the current financial accounting procedures in order to apply
for public health grants. Ms. Johnson said the exception would not apply to grants requiring
matching funds from the county. She said the approval would enable the health staff to indicate on
the applications that the board had approved them. Ms. Johnson said that once the health staff
submitted an application, a copy could be sent to the county finance office. She said budget
amendments would be requested if any grants were awarded.
Commissioner Robertson said it was understood the health department would not apply for
grants where matches were needed. He asked what happened if a flat amount of money was
required, or a "two to one." Robertson said the health department shouldn't miss out on
opportunities to apply for grants. He said also, the new process should include the grants that were
normally budgeted.
In reference to "flat amounts of money" mentioned by Commissioner Robertson,
Ms. Johnson asked if the health department could seek guidance from the county finance office
when completing these types of applications.
Commissioner Robertson said the health department could notify the county
sioners about the need for any county funds that had not been budgeted.
Chairman Johnson gave the following example: "There is a $50,000 grant with a 10%
local match, and the health department has the matching amount without tapping into county
revenues." He said this would be acceptable.
Robertson said correct.
County Manager Smith offered no objections to the new procedure. He said the board of
commissioners could be polled if there were questions from the county management team.
Chairman Johnson, a member of the board of health, said the new procedure would help
eliminate an obstacle or hindrance that had been mentioned in the health department's Strategic
Plan.
Commissioner Griffith asked if the new procedure would be on a permanent basis.
k,
Ms. Johnson said it would be on-going. She mentioned that if approved, the grant
exception policy would have to be presented to the board of health at its next meeting.
Vice Chairman Norman asked why the board of health didn't meet more often.
Commissioner Boone said the statute required only quarterly meetings, and normally, the
health staff did not have enough business items to hold monthly meetings. He added, too, that
many professionals served on the health board, and it was difficult for them to attend the meetings.
Boone said the board of health could hold special meetings, if needed.
MOTION by Commissioner Boone to grant the health department's request for an
exception to the current financial accounting procedures in order to apply for grants.
VOTING: Ayes — 5; Nays — 0.
Request from the EMS Department for Approval of Budget Amendment #29 for Two
Ambulance Remounts: Finance Director Susan Blumenstein said a discussion occurred at the
board's winter planning session about EMS' multi-year plan to improve the quality of vehicles. She
said the EMS Director was requesting two ambulance remounts, and the costs could be paid out of
additional revenue received in ambulance fees. Blumenstein said remounts had occurred last
summer, and under the additional quantities clause, the two projects could occur at the same cost
with the exception of the manufacturer's price.
Commissioner Boone asked if the county was exempt from the use tax.
Blumenstein said the use tax was not considered a sales tax. She said the tax was defined as
a tax for using the roads, and the county wasn't exempt.
Boone said this might be a matter that could be discussed with the county's General
Assembly representatives.
MOTION by Commissioner Griffith to approve Budget Amendment #29 for the two
ambulance remounts.
VOTING: Ayes — 5; Nays — 0.
Request from the Tax Department for Approval of the February Refunds and Releases:
County Manager Smith said the tax department had submitted the February refunds and releases
for approval.
OTION by Vice Chairman Norman to approve the February 2013 Refunds and Releases.
VOTING: Ayes — 5; Nays — 0.
Releases for the Month of February 2013
County
Solid Waste Fees
E. Alex. Co. Fire #1
Shepherd's Fire #2
Mt. Mourne Fire #3
All County Fire #4
B&F Fire #5
Breakdown of Releases:
To increase budgeted Ambulance Fees and appropriate to Vehicles & Licensed Trailers to remount two
27,453.52
ambulances.
BA#29
$
3/19/2013
$
Account #
Current Change Amended
104542 4710.00
EMS Fees
(3,400,000)
(167,000)
(3,567,000)
105542 6500.00
Vehicles & Licensed Trailers
466,574
167,000
633,574
Request from the Tax Department for Approval of the February Refunds and Releases:
County Manager Smith said the tax department had submitted the February refunds and releases
for approval.
OTION by Vice Chairman Norman to approve the February 2013 Refunds and Releases.
VOTING: Ayes — 5; Nays — 0.
Releases for the Month of February 2013
County
Solid Waste Fees
E. Alex. Co. Fire #1
Shepherd's Fire #2
Mt. Mourne Fire #3
All County Fire #4
B&F Fire #5
Breakdown of Releases:
$
27,453.52
$
104.00
$
4.63
$
192.07
$
181.83
$
1,071.04
$
205.48
6
Monthly
Total
$47,920.19
Statesville City
$
2,187.22
Statesville
$
7,518.27
Downtown
$
42.19
Mooresville Town
$
13,800.57
Mooresville
$
739.89
Downtown
$
38.16
Mooresville School
$
2,400.82
Love Valley
$
15.53
Harmony
$
-
Troutman
$
223.13
Davidson
$
-
Refunds for the Month of February 2013
Request for Approval of the March 5, 2013 Minutes: MOTION by Commissioner Boone
to approve the minutes as presented.
VOTING: Ayes — 5; Nays — 0.
APPOINTMENTS TO BOARDS AND
Centralina Economic Development Commission Board of Directors (1 appointment):
Commissioner Griffith nominated Tracy Jackson.
OTION by Chairman Johnson to close the nominations and to appoint Jackson by
acclamation.
VOTING: Ayes — 5; Nays — 0.
NEW BUSINESS
REQUEST FOR THE DRAFTING OF A RESOLUTION TO BE SUBMITTED
TO THE MECKLENBURG-UNION METROPOLITAN PLANNING ORGANIZATION
(MUMPO) STIPULATING THE BOARD'S STANCE REGARDING TOLL LANES:
Commissioner Griffith said the MUMPO met monthly, and 1-77 toll Lanes had been a topic of
discussion. She said that due to Iredell County not being a MUMPO member, the only
opportunity to provide input to the organization was at the subcommittee level. Griffith
requested that a resolution be drafted and approved by the commissioners with the contents to
include the board's position on the toll lanes.
Planning, Development and Transportation Director Joey Raczkowski offered to answer
any questions regarding the MUMPO, and the toll lane discussions held recently at some of the
meetings.
Chairman Johnson asked if the resolution could be placed on the April 2 agenda. He
asked if this timeframe would be agreeable.
VA
Breakdown of Refunds:
County
$
7,518.27
Solid Waste Fees
$
225.50
E. Alex. Co. Fire #1
$
-
Shepherd's Fire #2
$
739.89
Mt. Mourne Fire #3
$
-
All County Fire #4
$
15.04
B&F Fire #5
$
38.36
Statesville City
$
1,691.28
Statesville Downtown
$
-
Mooresville Town
$
610.80
Mooresville Downtown
$
-
Mooresville School
$
194.82
Love Valley
$
-
Harmony
$
-
Troutman
$
-
Davidson
$
-
Request for Approval of the March 5, 2013 Minutes: MOTION by Commissioner Boone
to approve the minutes as presented.
VOTING: Ayes — 5; Nays — 0.
APPOINTMENTS TO BOARDS AND
Centralina Economic Development Commission Board of Directors (1 appointment):
Commissioner Griffith nominated Tracy Jackson.
OTION by Chairman Johnson to close the nominations and to appoint Jackson by
acclamation.
VOTING: Ayes — 5; Nays — 0.
NEW BUSINESS
REQUEST FOR THE DRAFTING OF A RESOLUTION TO BE SUBMITTED
TO THE MECKLENBURG-UNION METROPOLITAN PLANNING ORGANIZATION
(MUMPO) STIPULATING THE BOARD'S STANCE REGARDING TOLL LANES:
Commissioner Griffith said the MUMPO met monthly, and 1-77 toll Lanes had been a topic of
discussion. She said that due to Iredell County not being a MUMPO member, the only
opportunity to provide input to the organization was at the subcommittee level. Griffith
requested that a resolution be drafted and approved by the commissioners with the contents to
include the board's position on the toll lanes.
Planning, Development and Transportation Director Joey Raczkowski offered to answer
any questions regarding the MUMPO, and the toll lane discussions held recently at some of the
meetings.
Chairman Johnson asked if the resolution could be placed on the April 2 agenda. He
asked if this timeframe would be agreeable.
VA
Raczkowski said the April 2, 2013 meeting would be agreeable.
Commissioner Robertson said the North Carolina Department of Transportation was
discussing a toll lane from Exit 36 to downtown Charlotte. He said the traffic congestion was
not that bad in the areas where I-77 had been widened. Robertson said his preference would be
for the Interstate to be widened from Exit 36 to Exit 23; the area of high traffic congestion. He
said the board could indicate a preference for general purpose lanes extending from Exit 36 to
Exit 23.
Chairman Johnson asked if Mr. Robertson was saying only one general purpose lane.
Robertson said two lanes except over the causeway.
Commissioner Boone said two northbound lanes and two southbound lanes.
Robertson said, "Two additional until the causeway is reached."
Boone said in total, there would be an eight -lane road.
Griffith said a resolution would strengthen the board's position. She said the county did
not have a voice past the MUMPO subcommittee.
Chairman Johnson said, "The reason I-77 hasn't been widened already is because that
when the rights-of-way were obtained, not enough land was purchased. Nobody ever dreamed
Charlotte would be a banking community, nobody dreamed Lake Norman would be a resort
community and people would live on that lake in very expensive homes and drive back -and -forth
to Charlotte. Nobody ever imagined that. It was believed I-85 from Atlanta, all the way up the
eastern seaboard, would be the highway. Folks, there are houses and commercial properties
located on the rights-of-way that would be necessary for the widening of 1-77. There are utilities
in the rights-of-way, and to merely purchase the rights-of-way to widen I-77 would be to the tune
of hundreds of millions of dollars. It will be a long time before they have that amount of money.
Now take me out of here and crucify me, but I told you the truth. The DOT will not say that
publicly, but they will in private. I take up for them a little bit. The toll lanes are indicative of
the fact that they see the predicament they are in, and this is their solution. I'm not sure it is the
best solution, but it is the only one they can offer. That's the truth of the matter, but no one is
willing to say that. People create these false hopes that if they pitch a big enough fit it will
happen. I just don't see it happening. Mr. Robertson made a good point in Mooresville the other
night. There has been inequity in the past regarding the way roads were funded around the State.
That's very true. I don't know that even if they had funded the roads more equitably in the past
there would be enough money to fund the widening of I-77 in the fashion the folks at that
meeting desire."
Chairman Johnson said Mr. Raczkowski, with assistance from Commissioner Griffith,
could prepare the resolution.
REQUEST FOR APPROVAL OF A PROCLAMATION STIPULATING
IREDELL COUNTY'S DEBT LIMITATION POLICY: Commissioner Boone made a
motion to approve the following proclamation.
WHEREAS, politicians temporarily holding elective office should not have the power to
indebt future generations, except by the express consent of the people; and
WHEREAS, local governments should abide by the spirit of Article V, Section 4(2) of the
Constitution of North Carolina; now therefore be it
PROCLAIMED, that it shall be the policy of the Board of Commissioners that Iredell
County shall not incur any future debt, unless approved by the qualified voters of the County
who vote thereon in a primary (not to include second primary) or general election, subject to the
following exceptions:
(1) The refunding of an existing debt;
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(2) Debt issued solely to fund the purposes of the Solid Waste Disposal Enterprise Fund;
(3) Debts with a term of four years or less; the total outstanding balance of all debts
incurred under this exception not to exceed $20,000,000 (twenty -million dollars);
(4) Real estate purchases in which the seller is paid in installments, if the total purchase
price is set aside in a capital projects fund or other similar account.
Commissioner Boone said, "I have a deep philosophical problem with a board like this
indebting future generations. I just don't think the five of us sitting here, or any other group of
people who are temporarily serving in office, should have the power to indebt future generations
unless it is with the consent of the people. Our republican form of government, and I say
republican with a small r --not being partisan --is supposed to operate under a system of checks
and balances that grants government enough power to perform necessary services, yet it restrains
government officials from having too much power. One of the checks on government is the
holding of frequent elections. In theory if this board, or any other group of officials, makes a
decision the voters disagree with the voters can elect a new board at the next election and undo
whatever actions they took umbrage at. If a board approves a large COPS bond issue that people
disagree with they have no remedy. Regardless of who may be elected in the future the
taxpayers will be saddled with the debt for the next 20 or so years. We often hear that one board
cannot bind a future board, but in the case of incurring debt, that's not the case. The board can
bind a future board. For that reason, one of the checks on government traditionally has been the
requirement that debt be incurred only by referendum of the voters. The North Carolina
Constitution provides that in Article V, Section 4; it prohibits state and local governments from
borrowing money without the approval of the voters in a referendum. There are certain limited
exceptions, but basically it prohibits that. Many other state Constitutions contain a similar
provision. Unfortunately in 1991, the North Carolina Supreme Court, in the case of Wayne
County Citizens Association versus Wayne County Board of Commissioners ruled that state and
local governments could approve a COPS bond without voter approval. They based this decision
on the grounds that such devices did not technically obligate the tax power of the county. Since
that court case, state and local government indebtedness has exploded. I would like to see the
state pass legislation, or better yet, amend the Constitution to once again limit state and
government borrowing without consent of the voters or to basically return to something close to
the situation before the 1991 court case. In the meantime, this board doesn't have to wait on the
state to do the right thing. I'd like to see this board declare our intent to place limits on
borrowing. I think the proclamation I just read is a reasonable measure that would give the board
the flexibility to incur a limited amount of short term debt and yet reserve to the voters the power
to issue large amounts of long-term debt. Ideally, in an ideal world, I would prefer that
everything be on a pay-as-you-go basis. I'm realistic to know though that we cannot always do
that. Although I never voted for a COPS bond during my previous service on this board, or at
least not for the general fund, I twice voted to place a bond issue on the ballot and let the people
decide. I won't rule out the possibility that I may do so again in the future, but I would be very
reluctant to vote for any large COPS bond, or any large debt, without letting the people have a
chance to vote on it. Until the economy improves, and the revenues pick up, I quite frankly
would be reluctant to place a bond issue on the ballot. For those reasons I would like to see the
board adopt this policy. It would just be a policy, and I realize a future board could change that
policy. I'd rather be bound by state legislation or a Constitutional amendment, but short of that, I
would like to see us state our intentions. I think this does give the board flexibility, but reserves
the right for the people to approve a large bond issue."
Chairman Johnson said debt limited a person's future options. He said, however, there
were times when debt was warranted such as: "Once the cost of housing prisoners outside of our
facility reaches the point that the expenditure of that money becomes equal or greater than the
amount of the debt service on the principal and interest to borrow the money to buy a jail, we
would be foolish to continue paying rent. It would be similar to paying rent for a home that
exceeds the monthly payment of the home that could be purchased. When I am satisfied that the
existing revenue stream is adequate, and the cost of housing prisoners outside of our facility
equals the amount of that debt service, I will lobby my fellow board members to borrow that
money to build a jail."
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Commissioner Robertson said the jail would serve the entire county and this was the kind
of GO bond to be on a ballot. He said the reason for COPS would be primarily for schools.
Robertson said, "The scenario that concerns me the most is that we need to build a school, and
the chances for it (referendum) passing are slim to none. The way this has been dealt with in the
past is to place other stuff on the ballot so it gets broader base support and you end up building
what you need and a lot of what you want. I could support the proclamation if the limit
was raised enough to take care of a school."
Commissioner Boone asked how much higher the limit should be.
Robertson said $30 million.
Commissioner Boone said he would amend the proclamation from $20 million to $30
million. The amended proclamation will then be as follows:
Iredel[ County Debt Limitation Policy
WHEREAS, politicians temporarily holding elective office should not have the power to
indebt future generations, except by the express consent of the people; and
WHEREAS, local governments should abide by the spirit of Article V, Section 4(2) of the
Constitution of North Carolina; now therefore be it
PROCLAIMED, that it shall be the policy of the Board of Commissioners that Iredell
County shall not incur any, future debt, unless approved by the qualified voters of the County
who vote thereon in a primary (not to include second primary) or general election, subject to the
following exceptions:
(I) The refunding of an existing debt;
(2) Debt issued solely to fund the purposes of the Solid Waste Disposal Enterprise Fund;
(3) Debts with a term of four years or less; the total outstanding balance of all debts
incurred under this exception not to exceed $30,000,000 (thirty -million dollars);
(4) Real estate purchases in which the seller is paid in installments, if the total purchase
price is set aside in a capital projects fund or other similar account.
VOTING: Ayes — 5; Nays — 0.
INSTRUCTIONS TO THE COUNTY MANAGER AND FINANCE DIRECTOR
IN REGARDS TO SCHOOL SYSTEM FUNDING FOR FY 2013-14: Chairman Johnson
made the following comments:
"We are now in the fifth year of either a recessionary environment or slow economic
growth. Tonight, I predict these conditions will persist for at least the next four years unless
there is a significant change in fiscal policy.
"There are two philosophies in contention at present. One argues for economic growth
and the other for economic equality.
"The greatest fallacy ever advanced in economic thought is that an economy is a zero
sum game. People who believe this erroneously think that if someone prospers they necessarily
do so at the expense of someone else. They have in fact idealized envy.
"Adam Smith disproved this philosophy, and this brought an end of mercantilism. This
brought about the blessings of free markets resulting in prosperity to the masses, which before
hand was unimagined.
"Today, however, enough of our leaders and apparently the electorate believe that if
some are more prosperous than others an injustice has occurred which must be remedied. They
have won the short term argument. They raised taxes and call for more.
"Reckless spending coupled with an accommodative monetary policy produced huge
deficits accompanied by one asset bubble after another rather than consistent economic growth
based on sound monetary policy.
"Any change in these policies toward a pro economic growth plan accompanied by
disciplined fiscal policy is not foreseeable.
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"Which brings us to the sequester. Spending is not being cut. The rate of increase is
being reduced. The federal government will spend more money this year than last and more next
year than this year.
"Some locally appointed and elected officials are mimicking President Chicken Little,
ringing their hands and announcing future disaster.
"After the miraculous elixir of economic growth, we are stuck with a local economy that
will not produce the revenues that many demand. Our December sales tax revenues were down
by more than 2% compared to the previous year. Property tax revenues will probably come in at
about a 2% increase. The result being the county will have very little new discretionary revenue
in the forthcoming year.
"In 2011, with spending having been reduced over the previous three years a total of $18
million since the economic decline had ensued, and revenues from property tax increases set to
fall by nearly another $5 million, I voted to raise the rate to more than revenue neutral because
no one knew how long this stagnation would continue and whether it could get worse. It hasn't
gotten much better and could be about to get worse.
"The school board has asked for $6 million more than they are receiving currently. This
is impossible for me to support. In fact, given the state of the county's revenues and what I
personally believe, there will be little, if any, growth in revenues for the foreseeable future. I
believe we will do well to maintain school funding at its present level in the forth coming budget.
"Sales tax revenues will continue to suffer as a result of the payroll tax increase recently
enacted and higher fuel prices. Crude prices are not rising. However, refineries are now forced
to buy ethanol credits which will make lower fuel costs harder to achieve.
"Personal property commercial tax revenues will continue to see only marginal
improvement resulting from lack of confidence and insufficient capital investment.
"Real estate tax revenues will continue to rise only modestly.
"An accommodative monetary policy by the Federal Reserve will continue to keep
interest rates low. These policies over time have produced asset bubbles; the tech and housing
bubbles for example. This uncertainty will be detrimental to long tern growth.
"Two years ago, I warned school officials that the government does not create wealth.
Wealth is created only by free people in free markets. I said then that the stimulus would end
and they would be right back in the same place. Early in 2009, in Mooresville, I made the
prediction that the stimulus would not work; it would not contribute to protracted economic
growth and some people tried to run me out of the place. I will depart from my traditional
magnanimity and say, `I told you so.' The Keynesian prescription has run out and the pain
lingers. The only answer to our problems is a pro economic growth strategy. There is none on
the horizon; therefore, I will say this: It is my desire to instruct the county manager and county
finance director to present us with a school budget that will maintain the per pupil expenditure
that we are giving them in this budget year. If in their experienced opinion, they believe
revenues will allow it, I want them to have the freedom to recommend the funding of any
additional students at the current level of school funding."
OTIO by Chairman Johnson to instruct the county manager and county finance
director to present the board with a school budget that maintains the per pupil expenditure that is
being given to the school systems this budget year.
Commissioner Robertson asked if Chairman Johnson was recommending that the schools
be funded the same exact dollar amount as this year, or the same per pupil.
Johnson said per pupil, unless the staff was comfortable that there would be sufficient
revenues, when all numbers were in, where they could fund the additional students at the present
rate of per pupil funding. He said for example, "One student in school brings the system one
dollar, and if another student show ups with the county staff having two dollars, then the system
is given another dollar. If they (county staff) do not feel the revenue will support the funding,
the school system will have to accept the new students without counting on county revenues."
Commissioner Boone said he understood the motion would keep the same total dollar
amount, unless the staff felt there was sufficient revenue for the additional students.
Chairman Johnson said this was correct.
Commissioner Robertson said he could vote for the motion if the per pupil remained the
same. He said there might be 400 new students.
Chairman Johnson said Mooresville had predicted about 200 more students, and Iredell-
Statesville has estimated the same. Johnson stressed how difficult it had been to build up the
county's fund balance. He said even if Mooresville received 200 more students, he would not
vote to appropriate money out of the existing county fund balance, especially due to current
economic conditions.
Robertson asked if the motion was directing the staff to provide the same dollar amount
total, or the same dollar amount per pupil.
Chairman Johnson said, "If the same number of students shows up next year as this year,
they'll get the same amount of money. If the staff feels like they will have enough additional
revenue to fund any additional students, on top of what the systems are receiving now, then the
added students will be funded at the current per pupil rate. However, if the money is not there, I
will not vote to take money out of the county fund balance to pay for it."
Commissioner Griffith said the per pupil funding would have to be lowered if the
revenues were not sufficient.
Johnson said correct. He said, otherwise, the county would have to do one of the
following: (1) raise the tax rate (2) use fund balance or (3) cut or reduce something.
VOTING: Ayes — 5; Nays — 0.
PUBLIC COMMENT PERIOD: The public was offered an opportunity to speak, but
no one accepted.
CLOSED SESSION: MOTION by Chairman Johnson at 8:10 PM, to enter into closed
session pursuant to G.S. 143-318.11 (a) (6) —Personnel.
VOTING: Ayes — 5; Nays — 0.
(RETURN TO OPEN SESSION AT 8:35 PM)
ADJOURNMENT: MOTION by Commissioner Griffith to adjourn the meeting at 8:35
PM. (NEXT MEETING: Tuesday, April 2, 2013, at 7 PM, in the Iredell County Government
Center, 200 South Center Street, Statesville, NC.)
VOTING: Ayes — 5; Nays — 0.
Approved:
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Clerk to the Board