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HomeMy WebLinkAboutJune_17_2014_Regular_MinutesJune 17, 2014 IREDELL COUNTY BOARD OF COMMISSIONERS REGULAR MINUTES June 17, 2014 The Iredell County Board of Commissioners met on Tuesday, June 17, 2014, 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 Ken Robertson Renee Griffith Gene Houpe Staff present: County Manager Ron Smith, County Attorney Bill Pope, Deputy County Manager Beth Dirks, Finance Director Susan Robertson, Fire and Emergency Services Coordinator David Saleeby, Veterans Service Officer Brad Stroud, Animal Services Director Brad Gates, Fire Marshal Garland Cloer, Tax Assessor Melia Miller, Assistant Parks/Rec Director Michelle Hepler, Health Director Jane Murray, Deputy Bert Connolly, Deputy Darren Campbell and Clerk to the Board Retha Gaither. CALL TO ORDER by Chairman Steve Johnson INVOCATION by Commissioner Gene Houpe PLEDGE OF ALLEGIANCE led by John Mark Williams, Briggs McElwee and Will Clontz of Boy Scout Troup 609 at First ARP Church. ADJUSTMENTS OF THE AGENDA: There were no adjustments to the agenda MOTION by Commissioner Renee Griffith to accept the agenda as presented. VOTING: Ayes — 5; Nays — 0 Information from Anna Rice, Iredell County Council on Aging, Inc., on the County Funding Plan for the Home and Community Care Block Grant for Oder Adults: Ms. Anna Rice of the Iredell County Council on Aging, Inc. addressed the Board. She presented the FY2015 proposed Aging Funding Plan for the Board's review and consideration. She stated current statistics indicate there are 31,000 people aged 60 and over in Iredell County. In 2025, it is predicted Iredell will have 47,000 adults that are 60+ in age. The 80's age group is increasing and expected to double in the next 10 years. The challenge is to provide a range of services for this growing and diverse group of seniors. The proposed 2015 Aging Funding Plan reflects the work needed to continue to provide vital programs for Iredell County's older adults, including transportation, in-home services, respite services, nutrition services, and Senior Centers with activities and classes. These services are available through the Older American's Act and the Home and Community Care Block Grant. Older American's Act dollars require a 10% local match and Iredell County helps the Council on Aging meet this requirement. In doing so, this brings back $9 in federal monies for every dollar contributed by the County. Chairman Johnson asked what action was needed from the Board. Rice said the Board needs to approve the plan. OTIO by Commissioner Gene Houpe to approve the FY2015 Aging Funding Plan. VOTING: Ayes — 5; Nays — 0 PUBLIC HEARINGS (None) ADMINISTRATIVE MATTERS 1 June 17, 2014 Request for the Adoption of the Fiscal Year 2014-2015 Iredell County Budget Ordinance: County Manager Ron Smith stated, in accordance with G.S. 159-13, the Board is required to adopt a budget by July 1. The budget ordinance presented tonight is for $167,347,780. There is an increase of $73,000 since the first presentation on May 6, because of recognizing additional seized funds to be applied towards the crime lab and future facilities improvement fund. Commissioner Gene Houpe thanked the County Manager and staff for all the hard work generating the budget. MOTION by Vice Chairman Marvin Norman to approve. VOTING: Ayes — 5; Nays — 0 BUDGET ORDINANCE 2014-2015 IREDELL COUNTY, NORTH CAROLINA Be it ordained by the Board of Commissioners of Iredell County, North Carolina: Section 1. The following amounts are hereby appropriated in the General Fund for the operation of the County Government and its activities for the fiscal year beginning July 1, 2014 and ending June 30, 2015, in accordance with the chart of accounts heretofore established for this County: County Commissioners S 176,741 Administration 404,024 Human Resources 389,712 Elections 579,568 Finance 1,038,930 Tax Administration & Land Records 3,073,572 Information Technology Services 1,406,272 Register of Deeds 593,816 Facility Services 2,903,383 Vehicle Services 334,453 Courts 856,263 Legal 120,000 Economic Development 1,712,290 General Governmental 1,889,630 Special Appropriations 452,763 Sheriffs Department 12,651,841 Crime Lab 410,917 Jail 8,416,532 Animal Services 1,173,701 Emergency Communications 1,809,962 Emergency Medical Service 7,024,646 Fire Marshal 431,037 Emergency Management 179,691 Public Safety Outside Agencies 619,487 Building Standards 1,676,040 Planning & Erosion Control 652,989 Central Permitting 383,116 Cooperative Extension Service 381,952 Health Department 8,304,576 Human Services Building 286,445 Partners Behavioral Healthcare 565,875 Social Services Administration 25,100,865 Veterans Service 123,034 Public Library 3,231,623 Recreation & Parks 1,018,560 School Funding 74,134,320 Debt Service 1,022,710 Transfer to JCPC 37,980 Transfer- Facilities Improvement Fund 528,464 Increase Fund Balance 1,250,000 2 June 17, 2014 Total Expenditures - General Fund $ 167,347,780 Section 2. It is estimated that the following revenues will be available in the General Fund for Fiscal Year beginning July 1, 2014 and ending June 30, 2015. Taxes: Mooresville Ad Valorem — Current S 98,907,275 Ad Valorem — Delinquent 2,625,000 Interest on Delinquent Taxes 680,000 Local Option 10 Sales Tax 16,638,820 1983 Local Option 1/2¢ Sales Tax 7,190,600 1986 Local Option 1/2¢ Sales Tax 8,451,700 Municipal Hold Harmless (2,329,450) Interest on Investments 50,000 ABC 5¢ Bottle Tax 44,000 Cable TV Tax 482,625 Tax Collection Fees 785,400 Court Facility Fees 250,000 Register of Deeds Fees 1,890,370 Sheriff's Office and Jail Revenues 848,050 Crime Lab Fees 186,500 EMS (911) Fees 4,055,250 Building Standards 2,704,300 Planning 238,315 Health Department Revenues 4,665,525 Social Services Revenues 15,913,123 Recreation Fees 382,980 Other Financing Sources 546,125 Other Revenues 2,141,272 Total Revenues — General Fund $167,347,780 Section 3. There is hereby levied a tax rate of 48.50¢ per One Hundred Dollars Valuation of property listed for taxes as of January 1, 2014. Total property valuation for ad valorem tax purposes for the 2014-2015 fiscal year is estimated to be $20,946,200,000. The tax collection rate for fiscal year 2014-2015 is estimated to be 97.36%. Section 4. Schedule B taxes shall be levied in accordance with the North Carolina Revenue Act. Section 5. All ABC — 5¢ Bottle Tax Revenues received from Code 347-01 of the 2014- 2015 General Fund Revenues are hereby designated to support the County's 2014-2015 appropriation to Partners Behavioral Healthcare designated for alcoholic rehabilitation programs. Section 6. Capital Outlay funds are appropriated to the two school units as follows: Iredell- Mooresville Statesville Graded School Schools District Total Restricted Sales Taxes $ 5,652,255 $1,575,945 $ 7,228,200 71/20 Ad Valorem Tax 12,916,965 2,377,973 15,294,938 Additional Ad Valorem Tax 4,282,583 1,223,595 5,506,178 Interest on Build America Bonds 41,747 - 41,747 Lottery Proceeds - 193,494 193,494 Totals $22,893,550 $5,371,007 $28,264,557 Capital Outlay appropriated by the Board of Commissioners is to be expended for the following categories as contained in G.S. 115C -426(f): (1) Acquisition of land (2) Building acquisition and construction (3) Acquisition or replacement of furnishings and equipment (4) Acquisition of school buses June 17, 2014 (5) Acquisition of activity buses Approved Capital Expenditures for the two school units are as follows: Iredell-Statesville Schools Debt Service 1997 General Obligation Bonds $ 1,090,950 2006 General Obligation Bonds 2,439,000 2006 Certificates of Participation 2,982,406 2008 Certificates of Participation 7,772,890 2008 Installment Financing Refunding 2,623,080 2009 Build America Bond 644,970 2013 COPS Refunding (2003) 1,581,809 2013 USDA REDLG Loan 130,000 Technology Reserve 600,000 Debt Financing Costs 15,000 Total Debt Service 19,880,105 Capital Outlay General Renovations and Improvements 1,093,445 Roofing 500,000 Paving 315,000 Furniture/Equipment/Technology/Generator Matching/Safety 1,010,000 Vehicles 95,000 Total Capital Outlay 3,013,445 Total — Iredell Statesville Schools $22,893,550 Mooresville Graded School District Debt Service 1997 General Obligation Bonds 2006 General Obligation Bonds 2006 Certificates of Participation 2008 Certificates of Participation 2008 Installment Financing Refunding 2013 COPS Refunding (2003) Debt Financing Costs Total — Mooresville Graded School District $ 250,601 637,411 664,875 2,555,800 441,445 814,875 6,000 55,371,007 Deviation of more than 10% from approved Capital Expenditures will require prior approval from the Iredell County Board of Commissioners. Section 7. Current Expense funds are appropriated to the two school units as follows: Iredell-Statesville Schools 532,173,716 Mooresville Graded School District 8,970,580 Total $41,144,296 Section 8. Appropriations are made to Mitchell Community College in the fiscal year 2014-2015 budget as follows: Current Expense Capital Outlay Mitchell Community College 4 53,071,010 731,315 June 17, 2014 Property Purchase Reserve Debt Service 2006 General Obligation Bonds 2008 General Obligation Bonds 2009 Build America Bond Total Debt Service Total — Mitchell Community College 75,000 54,215 427,813 366,114 848,142 $4,725,467 Section 9. In order to carry out their duties, copies of this Budget Ordinance shall be furnished to the County Commissioners, the Finance Officer, and the Clerk to the Board. Section 10. The County Manager is hereby authorized to transfer appropriations within a fund as contained herein under the following conditions: a) The County Manager or his designee may transfer amounts between objects of expenditure within a department except that no transfers shall be made into or out of salaries and benefits without approval by the Board of County Commissioners. b) The County Manager may transfer amounts up to S10,000 between departments of the same fund with an official report on such transfer at the next regular meeting of the Board of Commissioners. c) The County Manager or his designee may transfer amounts from funds appropriated by the Board of Commissioners for performance increases and reclassifications into the salary and benefit accounts of any department. d) The County Manager or his designee may transfer amounts from funds appropriated by the Board of Commissioners for Part-time and Overtime Salaries into the salary accounts of any department. e) The County Manager may transfer amounts between the departments operated under the authority of the Sheriff of Iredell County. f) The County Manager may expend up to $100,000 for emergency needs upon the chairman's official declaration of a state of emergency. Section 11. Iredell County officials and employees will be reimbursed at a rate equal to the IRS mileage reimbursement rate for authorized travel on behalf of the county. Section 12. The Board of County Commissioners hereby authorizes the Iredell County Tax Collector to collect taxes or other fees listed on the ad valorem tax bill for the City of Statesville, Town of Mooresville, Mooresville Graded School District, Town of Harmony, Town of Love Valley, Town of Troutman, Town of Davidson and any other municipality in compliance with contracts adopted by the respective governing boards. A charge of one and one-half (1'/z) percent of all taxes or other fees collected for the taxing districts will be payable to Iredell County for the collection services. Section 13. The Board of County Commissioners hereby authorizes the Iredell County Tax Collector to process taxes received from the NC Department of Revenue's Vehicle Tax System and distribute those collections net of NCDMV collections fees to the City of Statesville, Town of Mooresville, Mooresville Graded School District, Town of Harmony, Town of Love Valley, Town of Troutman, and Town of Davidson. Section 14. The fiscal year 2014-2015 tax rates for the fire districts are levied as follows: County -wide East Alexander Mt. Mourne Shepherds Troutman 7.00¢ per $100 of valuation 6.00¢ per $100 of valuation 4.50¢ per $100 of valuation 7.00¢ per $100 of valuation 6.50¢ per $100 of valuation 5 June 17, 2014 The estimated collection rate for the four established fire districts is as follows: County- wide 96.39%; East Alexander 94.73%; Mt. Mourne 98.13%; Shepherds 96.87%; Troutman 96.39%. Fiscal year 2014-2015 property valuations within the fire tax districts for ad valorem tax purposes are estimated as follows: Section 15. The following amounts are to be appropriated for the five fire districts for fiscal year beginning July 1, 2014 and ending June 30, 2015. County -wide $ 5,385,285 East Alexander 96,445 Mt. Mourne 600,575 Shepherds 1,005,460 Troutman 1,219,475 It is estimated the following revenues will be available for the five fire tax districts for the fiscal year beginning July 1, 2014 and ending June 30, 2015. County -wide Fire Tax District Current Ad Valorem Taxes $5,178,685 Delinquent Ad Valorem Taxes 166,000 Interest on Delinquent Taxes 39,500 Investment Earnings 1,100 Appropriated Fund Balance - Total Revenue $5,385,285 East Alexander Fire Tax District Current Ad Valorem Taxes Delinquent Ad Valorem Taxes Interest on Delinquent Taxes Investment Earnings $91,410 4,000 1,000 35 Total Revenue $96,445 Mt. Mourne Fire Tax District Current Ad Valorem Taxes Delinquent Ad Valorem Taxes Interest on Delinquent Taxes Investment Earnings $587,875 10,200 2,400 100 Total Revenue $600,575 Shepherds Fire Tax District Current Ad Valorem Taxes $968,630 Delinquent Ad Valorem Taxes 30,000 Interest on Delinquent Taxes 6,730 Investment Earnings 100 Appropriated Fund Balance - Total Revenue Troutman Fire Tax District $1,005,460 Current Ad Valorem Taxes $1,175,975 Delinquent Ad Valorem Taxes 36,000 Interest on Delinquent Taxes 7,200 Investment Earnings 300 6 June 17, 2014 Total Revenue $1,219,475 Section 16. The Board of Commissioners hereby agrees to contract with existing volunteer fire departments in Iredell County to provide fire protection to the Shepherds, Mt. Mourne, County -wide, Troutman and East Alexander Fire Districts. The County Finance Officer is instructed not to release funds to the departments unless an executed contract is on file for each individual fire department. Section 17. The Board of Commissioners hereby agrees to contract with Iredell County Rescue Squad, North Iredell Rescue Squad, Troutman Rescue Squad, Lake Norman Fire & Rescue, Mooresville Fire & Rescue, Mt. Mourne Fire & Rescue, Shepherds Fire & Rescue, and South Iredell Fire & Rescue to provide rescue squad services for which they are certified and the County requires within the boundaries of the Rescue Squad Service District. The County Finance Officer is instructed not to release funds to the departments unless an executed contract is on file for each rescue squad. Section 18. The 911 Emergency Telephone System Fund was established as a self- supporting special revenue fund on July 1, 1991. Effective January 1, 2008, all revenues of the Fund are provided by allocations of service fees from the NC 911 Fund. It is estimated the following revenues will be available for the fiscal year beginning July 1, 2014 and ending June 30, 2015. NC PSAP Funds $491,884 Investment Earnings - Appropriated Fund Balance 130,836 Total Revenue $622,720 Section 19. The following amount is to be appropriated in the 911 Emergency Telephone System Fund for the operation and maintenance of the 911 System for the fiscal year 2014-2015. 911 Operations $622,720 Section 20. The Transportation Special Revenue Fund was established on July 1, 2004 to account for the grants and other special revenue received for the operation of Iredell County Transportation Service and Iredell Community Transportation. It is estimated that the following revenues will be available for the fiscal year 2014-2015. Rural Operating Assistance Grants $280,000 NC DOT Community Transportation Grant 368,967 Job Access / Reverse Commute Grant 100,000 FTA Elderly Disabled Grant (53 10) 87,500 Transportation Fees 926,193 JARC Passenger Fares 20,000 Elderly Disabled Passenger Fares (53 10) 10,000 Other Passenger Fares 4,000 Rural General Public Passenger Fares 10,000 Iredell County Kidney Dialysis Fares 5,000 ARC Passenger Fares 1,000 Appropriated Fund Balance - Total Revenue S1,812,660 Section 21. The following amounts are to be appropriated for the fiscal year 2014-2015 in the Transportation Special Revenue Fund for the operation of the Iredell County Area Transportation Service and Iredell Community Transportation. Iredell Area Transportation Service $1,250,507 Community Transportation Administration 562,153 Total Expenditures $1,812,660 Section 22. The JCPC Special Revenue fund is established to account for Juvenile Delinquency and Prevention Grants received from the State of North Carolina and passed through Iredell County to outside agencies. June 17, 2014 It is estimated the following revenues will be available for pass-through grants for the fiscal year beginning July 1, 2014 and ending June 30, 2015. Juvenile Crime Prevention Council Grant $386,796 Transfer from General Fund - Barium Springs Residential Local Match 37,980 Total Revenue $424,776 Appropriations of the fund for the fiscal year beginning July 1, 2014 and ending June 30, 2015 are: Grants to Outside Agencies $409,276 Admin Asst. PT 11,500 Administrative Costs 4,000 Total Expenditures $424,776 Section 23. The Solid Waste Disposal Enterprise Fund was established as of July 1, 1991, for the operation of a baler facility and sanitary landfill. In accordance with G.S. 153A-292, the following rates are established for the fiscal year 2014-2015. Non-residential solid waste Per ton $ 35.00 Construction/demolition Perron 35.00 Electronics Fee (CRT TV's & Monitors) Per Item 10.00 Non -friable Asbestos Per ton 35.00 Friable Asbestos Per ton 110.00 Brush < 8 inch diameter No charge No charge Brush> 8 inch diameter Per ton 35.00 Pallets Perron 35.00 Pallet Cleanup Fee Triple Tipping Fee Animal carcasses Per ton 110.00 Passenger vehicle tires @ scales Per ton 80.00 Heavy equipment tires @ scales Per ton 150.00 Commercial / demolition transportation fee from Mooresville Transfer Station Per ton 10.00 Convenience Sites — Const/Demo Per Pick Up Load 10.00 Per % Pick Up Load 5.00 NC Solid Waste Tax (all items placed in the landfill) Per ton 2.00 Special Handling Per load $35.00 *Household Waste Disposal Fee Per household $52.00 *Household Waste Disposal Fee (with elderly exemption) Per household $26.00 Household tire fees — Convenience Sites (once a year, no charge for 5 "off the rim" Passenger tire 4.00 tires) Large Tractor tire 8.00 * Household Waste Disposal Fee covers all waste delivered by the homeowner except construction / demolition and tires. Household Waste Disposal Fees will be added on all 2014 tax bills for each residence in Iredell County. "Residence" means property used or, if vacant, designed to be used as a residential dwelling for one or more persons, whether or not the property is also used for other non -dwelling purposes excluding commercial uses. The tern includes mobile homes, single family, multi- family, and other structures used or designed to be used as residential dwellings. There can be multiple residences within a single structure, such as apartments, duplexes, town houses or condominiums. The Household Waste Disposal Fee is to be collected in the same manner as property taxes in accordance with G.S. 153A-293, and it will be collected when delinquent in the same manner as delinquent real property taxes. It is estimated the following revenues will be available for the fiscal year July 1, 2014 through June 30, 2015. Tipping Fees $3,454,500 Household Waste Disposal Fees (Household Availability) 3,500,000 NC Disposal Tax 50,000 NC Electronics Management 10,000 Electronics Management Fees 1,500 NC Abandoned Mobile Home Grant 16,000 8 June 17, 2014 Recycling Sales Scrap Metal Sales White Goods Metal Sales Tire Disposal Reimbursement & Fees White Goods Reimbursement Transport Fees — Mooresville Site Commercial Waste Investment Earnings Tire Disposal Grants Twin Oaks Lease Other Revenues Appropriated Retained Earnings White Goods Total Revenue 183,500 157,000 39,000 204,500 50,000 120,000 15,000 16,800 24,000 6,500 70,000 $7,918,300 Section 24. The following amounts are hereby appropriated in the Solid Waste Disposal Fund for the fiscal year July 1, 2014 — June 30, 2015. Administration & Operations Debt Service Lined Landfill Closure Escrow Capital Outlay Transfer to General Fund Increase Fund Balance Total Expenditures $5,239,689 427,563 470,000 1,367,000 135,524 278,524 $7,918,300 Section 25. The EMS Specialty Services Enterprise Fund was established in December, 2011 to account for the operations of a convalescent transport services. Estimated revenues for the fiscal year beginning July 1, 2014 through June 30, 2015 are estimated as follows: Convalescent Transport Fees $1,303,838 Section 26. The following amounts are hereby appropriated in the EMS Specialty Services Fund for the fiscal year July 1, 2014— June 30, 2015. Salaries & Benefits $673,449 Operating Costs 265,810 Capital Outlay 201,400 Fund Balance Assigned — Equipment/Vehicle Replacement 85,894 Transfer to General Fund -Dispatcher & Indirect 77,285 Total $1,303,838 This Ordinance being duly passed and adopted this day of June 2014 IREDELL COUNTY BOARD OF COMMISSIONERS Stephen D. Johnson, Chairman Retha C. Gaither, Clerk to the Board 2014-2015 HEALTH CARE BENEFITS FUND 066 Section 1. It is estimated the following revenues will be available in the Health Care Benefits Fund for the fiscal year beginning July 1, 2014 and ending June 30, 2015. Contributions from Employer 9 $8,612,885 June 17, 2014 Contributions from Employees Contributions from Retirees Stop Loss Claims Payments COBRA Credits Investment Earnings Appropriated Fund Balance Total Revenues 917,435 96,080 1,746,000 18,500 2,000 $11,392,900 Section 2. It is estimated the following expenditures will be made in the Health Care Benefits Fund for the fiscal year beginning July I, 2014 and ending June 30, 2015. Healthcare Benefits $935,000 Health Claims Payments $6,786,300 Prescription Benefits 1,755,000 Claims Administration 678,000 Stop Loss Insurance 1,350,000 Employee Life Insurance 165,000 Employee Health Clinic 42,000 Health Savings Deposits 175,000 Professional Services 7,200 10,958,500 Wellness Wellness Coordinator Salary & Bencfits 58,955 Operating Costs 3,160 Wellness hrcentives (for FY 15) 250,000 Wellness — HRA, Nursing Services, etc. 115,085 Incentive prizes, Educational Materials 7,200 434,400 Total Expenditures $11,392,900 Adopted this day of June 2014 IREDELL COUNTY BOARD OF COMMISSIONERS Stephen D. Johnson, Chairman Retha C. Gaither, Clerk to the Board 2014-2015 PROPERTY AND LIABILITY SELF INSURANCE FUND 067 Section 1. It is estimated the following revenues will be available in the Property and Liability Self Insurance Fund for the fiscal year beginning July 1, 2014 and ending June 30, 2015. Contributions from Other Funds Appropriated Fund Balance Total Revenue $1,115,000 $1,115,000 Section 2. It is estimated the following expenditures will be made in the Property and Liability Fund for the fiscal year beginning July 1, 2014 and ending June 30, 2015. Insurance Premium $935,000 Deductible Insurance Pool 170,000 Other Expenses 10,000 Total Revenue $1,115,000 Adopted this day of June 2014. 10 June 17, 2014 IREDELL COUNTY BOARD OF COMMISSIONERS Stephen D. Johnson, Chairman Retha C. Gaither, Clerk to the Board 2014-2015 WORKERS COMPENSATION SELF INSURANCE FUND 068 Section 1. It is estimated the following revenues will be available in the Workers Compensation Self Insurance Fund for the fiscal year beginning July 1, 2014 and ending June 30, 2015. Employer Contribution Investment Earnings Appropriated Fund Balance Total Revenues $636,600 700 49,100 $686,400 Section 2. It is estimated the following expenditures will be made in the Workers Compensation Self Insurance Fund for the fiscal year beginning July 1, 2014 and ending June 30, 2015. Workers Compensation Claims $440,000 Indemnity Payments 125,000 Stop Loss Insurance 96,000 Claims Administration 25,000 Reporting Software Subscription 400 Total Expenditures $686,400 Adopted this day of June 2014. IREDELL COUNTY BOARD OF COMMISSIONERS Stephen D. Johnson, Chairman Retha C. Gaither, Clerk to the Board Iredell County, North Carolina Amended Capital Project Ordinance Iredell County Facilities Improvements Fund Be it Ordained by the Board of County Commissioners of Iredell County, North Carolina: Section 1. Funds for this Amended Capital Project Fund will be provided from the following Source: Adopted [ Amended 6/18/2013 Amendment = 6/17/2014 Transfer from General Fund $2,141,417 $528,464 $2,669,881 11 June 17, 2014 Section 2. The following costs shall be paid from this fund: Adopted Amended 6/18/2013 Amendments 6/17/2014 Building Improvements $2,141,417 $528,464 $2,669,881 Section 3. This Capital Project Fund shall continue until the projects are complete. Section 4. Payments from this Capital Project Fund shall be authorized by the County Manager or his designee. Section 5. The County Manager is authorized to allocate funds between priority improvements as needed. Section 6. This Amended project is effective upon adoption. Adopted this day of June, 2014. IREDELL COUNTY BOARD OF COMMISSIONERS Stephen D. Johnson, Chairman Retha C. Gaither, Clerk to the Board Request from the Finance Department to Approve BA #37 to Appropriate Insurance Proceeds: Finance Director Susan Robertson said there had been several accidents this year involving county equipment and vehicles. This budget amendment will recognize the $22,000 in general fund proceeds that have been received, $16,794 for ICATS; $5,338 for Solid Waste; and $1,337 for EMS. MOTION by Commissioner Renee Griffith to approve BA #37. VOTING: Ayes - 5; Nays - 0. Budget Amendment Fiscal Year 2013-14 BA#37 To appropriate insurance proceeds back to the departments where repairs were 6/17/2014 necessary for the Fiscal Year 2013-2014 Account # I Current Change Amended 12 General Fund - (22,052) (22,052) 104045 485200 Insurance Proceeds 105436 532501 Assessor - M&R - Equip 4,200 1,186 5,386 105436 532502 Assessor - M&R - Autos 2,000 5,707 7,707 105455 532502 Facility Svcs - M&R - Bldgs 4,320 1,096 5,416 10545530 532610 Facility Svcs Bldg - M&R - Bldg 51,000 1,000 52,000 10545574 532610 Library Bldg - M&R - Bldgs 8,000 5,285 13,285 105510 532502 Sheriff - M&R - Autos 88,500 2,118 90,618 105520 532502 Jail - M&R - Autos 12,029 2,137 14,166 105542 532502 EMS - M&R - Autos 32,000 1,469 33,469 105563 532502 Inspections - M&R - Autos 5,000 2,054 (16,794) 7,054 (16,794) Transportation Fund 374045 485200 Insurance Proceeds 12 June 17, 2014 375622 532502 1 ICATS - M&R - Autos 1 40,000 I 16,794 I 56,794 Solid Waste Fund To appropriate an additional allocation of Crisis Intervention funds in the DSS department (5,338) (5,338) 524750 485200 Insurance Proceeds 525751 532500 Statesville - M&R - Bldgs 417,175 85 417,260 525752 532500 Mooresville - M&R - Bldgs 383,007 - 5,253 (1,337) 388,260 (1,337) EMS SSD Fund 574045 485200 Insurance Proceeds 575542 532502 EMS SSD - M&R - Autos 8,000 1,337 9,337 Request from the Department of Social Services to Approve BA #38 to Recognize Additional Allocations: DSS Director Yvette Smith said the department received some additional funding in Crisis Intervention Program in the amount of $19,479. She is asking the board's approval of the budget amendment to recognize these funds. OTION by Vice Chairman Marvin Norman to approve BA #38. VOTING: Ayes — 5; Nays — 0. Budget Amendment Fiscal Year 2013-14 BA#38 6/17/2014 To appropriate an additional allocation of Crisis Intervention funds in the DSS department Account # program Current Chane Amended General Fund (395,844) 395,844 (19,479) 19,479 (415,323) 415,323 104630 450022 105630 554201 Crisis Intervention Revenue Crisis Intervention Expense Request from Animal Services to Approve BA #39 to Use $2,756 in Donated Funds for 4 Paws Spay/Neuter Program: Animal Services Director Brad Gates said this is the same project approved on April 1 and this request is to approve funds received from local donors. Since the last request the shelter has altered 63 animals on the spay/neuter program. The new funds will continue the life of this program. OTIO by Commissioner Ken Robertson to approve BA #39. VOTING: Ayes — 5; Nays — 0 Budget Amendment Fiscal Year 2013-14 BA#39 To appropriate donations in the Animal Services budget for the Spay/Neuter 6/17/2014 program Account # Current Chane Amended General Fund (78) (78) 104532 471428 Fundraising Revenue 104532 481202 Donations - (2,361) (2,361) 104532 481251 Donations - Spay/Neuter (317) 105532 535050 Supplies - Donated Funds 5,800 2,756 8,556 Request from Animal Services to Approve BA #40 to Use $2,512 in PetSmart Adoption Reward Funds for Advertising Animal Services Events: Animal Services Director Brad Gates said they have received $2,512 in donated funds. He is requesting this budget amendment to place those funds into the advertising budget in order to advertise special events and services, including adoptable animals and special adoptive needs animals. MOTIO by Commissioner Ken Robertson to approve BA #40. VOTING: Ayes — 5; Nays — 0 13 June 17, 2014 Budget Amendment Fiscal Year 2013-14 BA#40 6/17/2014 To appropriate PetSmart Adoption Rewards in the Animal Services budget for advertising. Account # I Current Chane Amended General Fund - 1,000 (2,512) 2,512 (2,512) 3,512 104532 481246 105532 530000 PetSmart Adoption Rewards Advertising Request from the Finance Department to Approve BA #41 for Four Iredell-Statesville Schools Lottery Applications: Finance Director Susan Robertson stated Dr. Kenny Miller submitted four applications for lottery proceeds: 1) to reimburse ISS for the final payment to the Town of Mooresville for water/sewer to Woodland Heights, 2) to reimburse $66,000 for a paving project at Lake Norman High School, 3) to reimburse $61,800 for a paving project at Cloverleaf, and 4) to reimburse $204,950 for debt service to Energy United for mechanical system controls update. These reimbursements are 100% by lottery proceeds. MOTION by Commissioner Renee Griffith to approve BA #41. VOTING: Ayes — 5; Nays — 0 Budget Amendment Fiscal Year 2013-14 BA#41 To record anticipated Lottery Proceeds and appropriate the funds to reimburse Iredell-Statesville Schools for I) Woodland Heights final installment for 6/17/2014 water/sewer $113,099 2) LNHS Paving $66,065, 3) Cloverleaf Paving $61,800, 4) EU Debt payment for mechanical systems upgrades $204,950. Account # Current Change Amended General Fund 104700 457101 Lottery Proceeds - Iredell-Statesville (1,040,996) (445,914) (1,486,910) 105700 560004 Iredell-Statesville - Lottery 1.448244 445.914 1.894.158 Request from the Finance Department to Approve the Amended Project Ordinance for the WIHS HVAC Project and to Appropriate Fees: Finance Director Susan Robertson said this request is to approve the capital project ordinance for the WINS HVAC project. This is funding of $1.3 million from the REDLG loan proceeds from USDA through Energy United. In addition ISS is contributing $303,000 for the project. The cost for general construction is $1,560,308; architect fees are $20,000; closing costs are $3,017; and contingency of $20,000. OTION by Gene Houpe to approve the amendment for the project ordinance for the WINS HVAC. VOTING: Ayes — 5; Nays — 0 Iredell County, North Carolina Amended Capital Project Ordinance West Iredell High School - HVAC Project Be it Ordained by the Board of County Commissioners of Iredell County, North Carolina: Original 6/17/14 Amended Ordinance Amendment Ordinance Section 1. Funds for this Capital Project Fund will be provided from the following sources: Financing Proceeds $ 1,300,000 Contribution from ISS 303.32: 1,300,000 303.325 $ 1,603,325 $ - S 1,603,325 Section 2. The following costs for the West ]redell High School projects shall be paid by this fund. General Construction $ 1,580,308 (20,000) S 1,560,308 Architect Fees 20,000 20,000 14 June 17, 2014 Contingency 20,000 20,000 Closing costs 3,017 3,017 S 1,603,325 S S 1,603.325 Section 3. This Capital Project Fund shall continue until the projects are complete. Section 4. Transfers between line items shall only be made upon formal action by the Iredell-Statesville Board of Education and such action shall be reported to the Iredell County Board of Commissioners at its next regularly scheduled meeting. Section 5. Payments from this Capital Project Fund shall be authorized by the County Manager or his designee. Request from the Finance Department to Compensation Claims Solutions for a Three -Year Contract: Finance Director Susan Robertson is requesting approval of a three-year contract with Compensation Claims Solutions. They are a third party administrator for the self- insured worker's compensation fund. The price will be $23,000 for FY15. It will increase to $25,000 for FY16/17. They have done very well handling claims since becoming self-insured. Based on the 4% annual increase on the last bid for fully insured, the County has saved $3.8 million. OTIO by Vice Chairman Marvin Norman to approve. VOTING: Ayes — 5; Nays — 0 Presentation of Resolutions Calling for a GO Bond Referendum by Iredell Statesville Schools, Mooresville Graded Schools and Mitchell Community College: County Manager Ron Smith said the discussion prior to this meeting was including the jail project in this same request. However, with a strong recommendation from the Local Government Commission, the jail has been removed from consideration. Based on that, the following memo has been revised to remove the jail. No board action will be needed on the presentations, but action is necessary on the next item. Iredell-Statesville Schools — Board of Education Chairman Dr. David Cash addressed the Board. On behalf of ISS, he presented a resolution calling for a GO Bond Referendum. He expressed thanks to Chairman Johnson and Vice Chairman Norman for serving on the task force that reviewed the needs and made recommendations for the school systems. They have completed several smaller projects and there are five proposed bond projects. ISS Superintendent Brady Johnson stated, in conjunction with the task force and staff reviews, there are five projects that have been identified: 1) Cool Springs Elementary which is estimated at a cost of $13.5 million. The renovations would increase the seat capacity by 200 students. 2) North Iredell High School project is an addition and renovation of the building that houses the old gym and auditorium. This project is estimated at $9.5 million. The seat capacity will increase by 150 students. 3) South Iredell High School is a similar project. North and South are mirror images of each other and were built in 1966. The auditorium would be razed, replaced and additional classrooms would be added. The seat capacity will increase by 150. South Iredell is a little more in need. The IB program was placed at South and has attracted students from all over the County. Currently the campus has one mega -unit, one quad, and during the summer six classrooms will be added to the Career Academy in Troutman. Those six classrooms are designed to handle the overload at South Iredell HS. 4) Northview IB School and Statesville Middle School is a combination project. The IB Program was opened five years ago. The Statesville IB campus is located on the Northview campus which was a K-2 school. The school is overcrowded with a number of mobile units. It does not have an auditorium or gym which means students are bused to the YMCA, daily, for PE classes. The proposal is to move the current Statesville Middle School into a new facility on the campus of Third Creek Elementary School. The new Statesville Middle School will have a capacity of 650 seats. Old Statesville Middle will be renovated and students from Northview will be moved to the newly renovated school. The proposal for Northview is minor renovations and move the alternative school from Monticello to Northview. The Monticello campus could then be put on the market. 5) A similar project is in the southern end between Mount Mourne IB and Brawley Middle School. The proposal is to move the current Brawley Middle to a new school on the campus of Woodland Heights. Then renovate the current Brawley Middle and move the IB school from Mount Mourne into Brawley Middle. The current Mount Mourne 15 June 17, 2014 property could be available for another choice program or sell. Both projects are estimated at $23.5 million. The total is $79.5 million. Kenny Miller, from ISS, clarified one item about the NIRS and SIHS projects. He said the footprint of the auditoriums will increase and will include replacing the canopies. Commissioner Renee Griffith asked if Cool Springs was designated on the last bond. Miller said no. The last bond that was passed was Phase I. It was a bond referendum and COPS (Certificate of Participation) which was completed on time and on budget. Phase 11 was entirely under COPS. Phase III was never funded which included Cool Springs and Union Grove. Union Grove was funded by paying off a previous debt service, but not Cool Springs. Commissioner Griffith asked about issues of moving the alternative school's teenage students into the Northview campus which was a K-2 school. Miller said the alternative school has approximately 100 students which can vary daily. The alternative school does not need a gym and the small cafeteria would be adequate. Commissioner Griffith stated projects two and three on the list does not appear to have been on the radar for the task force. Miller said they were on the radar in Phase V. There were Phases IV, V and VI. Phase IV was a number of smaller, maintenance related upgrades. There was also a technology phase. However, since then they have received a $20 million grant for technology. They completed the REDLG project and used several million dollars in lottery funds for maintenance which meant they could move some projects up that were originally three years away. Most projects in Phase IV are complete. Commissioner Ken Robertson stated he had several questions, some of which came from citizens. He said some have questioned the wisdom of spending this much money on a bond now because if student population increases there would be no money for expansion for a growing population. What is the total of proposed additional seats? Brady Johnson said the new Statesville Middle will have a capacity of 650. The Mount Mourne/Brawley project will have a capacity of 800 seats. Miller said Northview IB has about 500 students moving into the Statesville Middle campus with a capacity of 680. There are approximately 420 Statesville Middle that will move to the new campus with a capacity of 650, which means there will be approximately 360+ new seats. He said the middle school population is the area of concern at the moment. Commissioner Robertson stated ISS proposes $47 million to renovate these existing schools to house IB programs. Why do you have to renovate to house an IB program? Brady Johnson said the IB program is much more than curriculum. Those programs require additional staff development for the teachers. They do not have the resources to open an IB program and do training with extra materials that are required in multi sites all over the county. They have chosen to have a Statesville Campus and a Mooresville Campus. The South Iredell diploma program is in the middle. Miller said there isn't a lot of renovation needed and will be done internally with reoccurring capital. It is mainly painting, upgrades, and fix -ups. Commissioner Robertson asked if the $23.5 million is primarily the cost of new construction and why seats are being added if student population is decreasing. Brady Johnson stated when talking about building schools it is necessary to look years ahead. He believes Iredell County is poised to see the same growth as before the recession which was 900 students per year. There are currently four charter schools in the county that serve 1,600 students. At any moment one of those schools could close and those students would then return to the public system. He added that public schools now must be ready to be competitive and be able to market their schools. 16 June 17, 2014 Commissioner Robertson asked if a charter school building could be bought, if the school closes. Brady Johnson said it may be possible and that decision would be brought before the Board of Commissioners. However, it is getting a little more complicated because there are some charter schools that are for profit. Those buildings are owned by investors. Miller said there are no charter schools scheduled to open during the next school year. The State is estimating a potential student growth of 165, but the State is usually low. In addition there are 2,000 housing units just inside the Mooresville City limits that are not in Mooresville Graded that are on the books right now. This does not include Perth Church Road and other areas. Commissioner Robertson stated Mitchell Community College has a program where a lot of high school seniors can earn college credits. Is that not relieving some of the pressure at the high school level? Brady Johnson said it does some. There are approximately 525 students in the early college program. There are two early colleges, one is located on the campus of Statesville High School and the other is located on the campus of Mitchell Community College. However, Statesville High School, South Iredell High School, and Lake Norman High School are all currently at or over capacity. Commissioner Robertson stated that the public is being told the future is science, technology, engineering, and math. However, this bond has two different auditoriums for ISS, which leads one to think about music, acting, dancing, etc. Wouldn't this money be better spent for chemistry/physics labs and agricultural programs? Brady Johnson believes there needs to be a balance for a holistic experience. They built science laboratories at NIHS and SIHS in 2001. Statesville High School added additional science classrooms in the new portion of their renovation in 2006. In 2007 and 2009 further renovations at NIHS and SIHS added science classrooms when the new gyms were built. Miller said science labs were added to West Iredell High School as well. He said the auditoriums have been pushed aside for a long time. The State recommends an auditorium should be large enough to seat half of the student population. Commissioner Robertson asked if the addition of 200 more students renders the existing auditorium worthless. Miller said both of the two auditoriums have structural issues. North High's auditorium is settling and the doors no longer work correctly. Engineers say it is not dangerous but correcting the problem would cost more than to raze and replace. South High's has a crack in the foundation. It will not fall but repairs would be costly. Commissioner Robertson asked how they know the construction cost estimates are in-line with the standard best practice. Miller said no one can predict but they have a good track record. Rob Jackson, Construction Manager, has a decade of experience. His estimates have been very good. They try to look at escalation between plans and actual building. Chairman Johnson said the DPI publishes estimations of construction costs. They suggest a 5% per year for escalation. Commissioner Robertson stated charter schools don't ask for bonds to build and renovate their buildings. Why does the public school system? Brady Johnson said that it is the way the State has chosen to structure the charter schools. Charter schools have a great deal of flexibility that public schools do not. Charter schools are not required to have athletic programs, participate in child nutrition, nor provide transportation. Money they save in those areas can be used elsewhere. Iredell County actually has a for-profit charter school that is traded on the stock exchange. Public schools are at the mercy of the tax payers and the county commissioners when it comes to building. 17 June 17, 2014 Commissioner Robertson stated that the list shows HVAC upgrades and roofs. Miller said Cool Springs' HVAC is included in the complete process, because if a building is razed HVAC will have to be replaced. He said they have been replacing roofs with annual reoccurring capital. Commissioner Robertson asked the age of Cool Springs' building. Miller said the oldest portions were built pre -40s. The later section was in late 80s or early 90s and all will remain intact. Commissioner Robertson said the promise of renovations at Cool Springs and Mooresville Senior was left off of the previous bond. Why spend money on promises that wasn't kept on previous bonds. Miller said it was in phases. Phase I was GO bonds and COPS. Phase II was COPS and Phase III was never funded. Commissioner Robertson quoted from an email he received... "Does any of this money go to hire more staff in the central office?" Also, "If you fired half of the staff in central office could we eliminate the need for the bond?" Brady Johnson said no to both questions. Miller said if all staff was fired there still would not be enough to pay for the bond. Commissioner Robertson said everyone agrees the economy is in difficult shape. Historically there have been COPs or a GO about every three years. However, it has been six years since the last one. The economy is still sluggish. Can you wait another four years? Brady Johnson said it would not be wise. He believes construction cost rise daily. Just on Cool Springs alone, the estimated cost has risen $1 million in six years. While some of the cases are not dangerous to students, there are situations that are vulnerable. Example, Cool Springs Elementary is an open campus. The mobile units have flimsy locks and can be breached easily. Also, the mobile units are designed to be temporary fixes to long term problems. They depreciate rapidly and not as efficient as a brick/mortar classroom. The covered walkways at North and South were built in 1966 and are literally crumbling. He stated that even if the requests are approved tonight it will be at least two years before these improvements are ready for children to move into. Commissioner Robertson stated this is another question asked of him. How much of this bond is needed to implement the Common Core curriculum? Brady Johnson said not one penny. Commissioner Robertson asked how long the facilities task force had been meeting prior to making these recommendations. Miller said the actual task force finished two years ago. One year ago this list was presented to the Board. The task force was called back together last month to update the needs and plans. As they move forward, the task force will reconvene to review the next steps. Commissioner Robertson asked if this task force was only for Iredell Statesville or for both school systems. Miller said it involved Mooresville Graded and Iredell Statesville. At the time Mitchell was not in the initial planning part but they are included from this point forward. Commissioner Robertson stated Chairman Johnson and Vice Chairman Norman served on that committee. He asked if any other members were present here tonight and how many were on the task force. Miller said that is correct and four other members were present at the meeting. There were 14 members altogether. 18 NIRS. June 17, 2014 Commissioner Griffith asked the total enrollment and the capacity of the auditorium at Miller said 1,100 and the auditorium seats 470. Commissioner Gene Houpe asked if everyone had been proactive years ago with Lake Norman, wouldn't it have been better to make the footprint larger in anticipation of growth. Miller said yes he agrees. The building was built for 1,200 and when it opened enrollment was almost 1,200. Within a year enrollment was 1,300-1,400 and today it is close to 1,900. Commissioner Houpe feels being proactive is a better use of tax payer's dollars and save more money in the long -run. For instance with the jail, if a little over $1 million more had been spent on the footprint and be able to build additional floors it would have saved money because now a new jail will be $20 million. Brady Johnson said they could add classrooms to Lake Norman with mobile units, but it would not fix the problem. He agrees it is prudent to expand a footprint of a school with the future in mind. Chairman Johnson stated in the discussion of 1996 and 2006 one would think there was no such thing as a limited resource, but there was a limited resource. He agrees with Brady Johnson, that once the core facility of any building becomes stressed, there is little to remedy the problem. As for the jail, additional cells can be added but it remains that 850 meals are being prepared in the same space that was built for a fraction of the number. Lake Norman was built on the recommendation of the school board on the recognition there was a limited resource. There is some logic on limiting the size of the school because of ancillary operation costs. Miller said yes there is an upper limit due to operation costs. Comr nssioner rioupe stressea mat ne oenevcs Demg proactive is oener mar 9 Igr�lting A for Iredell- SLnlesviIleSchools Learning Iredell-StutesviIIC Schools District - Resolution I ne I I cdcll-s I a IQ,t-ilto Schools District Board of ISduct.uon hereby requests that the Board of ConiIII "movers of lmdeI HCounty adopt an 0 1 d C I Lott honzine g nuaI of) ligtwon bonds of the Count% mtd the callint, of a relerendum thereon for 579.500.000. at which such order gill lie submited to the qualified voters of Iredell C ousts. 1 he que,tion to lie put to a note S11,111 be sihslantioll. ;Lo lollowv: -Shall the oder adopted on June 9"i 2014, authorizing not exceeding S79.�00.000 School Bolick of thr Courih of Imdell. North Carolnm. for the purpose of providing funds, toeeihcr kith and other available lunch ton erecting additional sehool buildings. reinodaling, cnlargine and rccons[ructine esistimz, school buildin providing necc1str� utiliues and anJuuin> necessary land and equipment theraline in order to provide additional school facilities lorthe h dcll Staten dle School IJistrict in the County of hedell. and authorizine, the let -c of rases in ;m nnxxim stdiieient to pay the principal of and the interest on said bonds be approved'.. Adopted on .hme 9.3014 C n.uun.m. Bomd of Cducalum Date 19 being reactive. June 17, 2014 I Icgr7lting A ��� for fiedelI-steles i Ile schools Learning II edell-states, iIle Schools DistI ict 2014 Proposed Bond Projects I'n�cct I Cool Springy 17emcla, c $13500D00 hoiccu 22 MI IS AndillIM11I11Af19 59500.000 P,o SI1 f.S Audltoriunr.-ArG 59500.000 Ili oiect 4 \orill' Ill' 13 Vllddl- 'lliIOOl llallici 111 \fiddle School 5 7500.000 Vele SMS con:Irt 11111 on tlla campus of Thud C izck 11ancntan Project 5 VIc A1oume 113 Vfiddle School IBlaole, Afiddle Sohool 523500.000 Ve¢ B%1IS conetmctcd on the campus of l6'oo11land 11<11111 Iaementa, c '101AL 579,510,000 Mooresville Graded School District — Roger Hiatt, Mooresville Graded School Board, addressed the Board. He thanked them for past support and asked for continued support moving forward. Mooresville Graded School District Superintendent Dr. Mark Edwards recognized four additional Board members in attendance. He said the first recommendation is two major projects related to the request for a GO bond. The first is Mooresville High School at $40 million. It includes two urgent matters that are safety issues with deterioration of the auditorium and gymnasium. The auditorium and gym were built when the enrollment was 600-800 students but they anticipate the enrollment in 2017/2018 to be 2,200-2,400. He said in the area of East Mooresville Intermediate School there are two different developments that could result in several hundred new homes and it is estimated there will be 2.3 children per household. The other project is a new middle school with enrollment estimated at 1,200-1,400. DPI is projecting significant growth for MGSD and DPI is usually low. The high school project includes several major parts. The first is the auditorium and gym. There is only one auditorium in Mooresville and it serves all of the schools. The projected cost is $9.6 million with a programing capacity of 1,800. He said they called DPI for their recommendation. DPI said 50% of student enrollment, but if it is a one auditorium community, then build according to the needs. The gym will cost $8.8 million. The gym and auditorium are used for classroom programing. They have a fine arts program, 220 band members, 120+ member choral program, ROTC program, and drama. There are some cosmetic repairs, i.e. paint in all classrooms, replace ceiling grids and tiles, damaged floors, asbestos abatement, plumbing, engineering systems, restrooms, electrical, HVAC and duct work. Engineers have stated both buildings need to be replaced as soon as possible. The middle school project would not be completed until 2020 but project enrollment will continue to increase. Dr. Edwards said, after serving on the state board, that during the past year several charter schools closed for not meeting their responsibilities to students and tax payers. Charter schools do not have to comply with state standards for their facilities. He said six years ago, a second high school was mentioned. However, they made some program changes to use the old middle school, Magnolia Annex, as a double footprint for the high school. Part of the plan is to move the programing at NF Woods over to the Magnolia campus which will bring efficiencies. Today students are being transported several times a day, by bus, to NF Woods which presents issues with extra fuel and lost instructional time. The move will bring an estimated savings of $100,000 per year in operational costs plus gain instructional time. Edwards said they have spent $500,000 in repairs on the auditorium over the last ten years with $124,000 for the roof. He believes there is a direct correlation between quality of life, good education, crime and safety. Over the last six years, Mooresville has seen $3.5 million in education tourism. Students have received $15.5 million in scholarships over the last five years. MGSD's graduation rate was 93.4% which was second in the State, African-American students' graduation rate was 98% which was number one in the State and the graduation rate of students from poverty at 91 % was third in the State. 20 June 17, 2014 Chairman Johnson said his research states an auditorium should be 1/3 to 1/2 the average daily membership. The formula recommends eight square feet per student along with a list of additional square footage for various functions in the auditorium. Mooresville is asking for 45,000 square feet for the auditorium. His figures with the current student population along with the higher range of all recommendations for other activities only brought the auditorium to 30,000 square feet. Even with the projected enrollment at 2,400 and increasing the numbers for the other activities, it still estimates at 30,000 square feet. He read directly from DPI and the State Board of Education, "Large joint school/community use auditoriums are discouraged. Large auditoriums are much more costly per square foot due to increase volume and structural span and special building code requirements. It is generally believed that multiple performances to smaller groups are more successful than single performances to a large group." Johnson asked an engineer about this issue. The engineer said the load factor on the roof span goes into another class of construction where the walls and footing have to be stronger. Generally speaking any auditorium over the capacity of 1,000 will dramatically increase the cost per square foot. Johnson asked for justification for the larger auditorium request. MacGray Auditorium at Statesville High School was built larger because the City wanted to use it and therefore the City of Statesville contributed money to the construction. He feels if Mooresville plans to use it then they should contribute to the construction. He asked if it was equitable for the County to pay for it through the school fund. Edwards said two proposals were presented. One for ISS and one for MGSD with very little appreciable cost difference. The auditoriums for ISS were $9 million and the Mooresville auditorium is $9.6 million. Mooresville High School will be serving 2,200-2,400 students and Iredell-Statesville will serve approximately 1,000-1,200. The reason for a larger building is based on program needs and classroom space. One item that was removed from the proposal was a parking area. Another desired item that is not included is a cross -walk to the Magnolia Annex. He has met with Town of Mooresville officials and talked with them about support. Chairman Johnson stated the Board is being asked to put $40 million on a ballot. If the Board votes in favor, $40 million will be on the bond. If someone decides to contribute money, then it could be used to help pay the debt. However, there would be no incentive to give if the tax payers have already been asked for $40 million. He doesn't feel there is a comparison between the projects. MGSD has $2.2 million for site preparation and between the renovation and the gym/auditorium there is $6.7 million for project allowance which is unheard of. Edwards said the project allowance includes the site survey, architect and engineer, asbestos abatement alone is going to be significant, kitchen equipment including loose furniture, and 5% contingency. This is the standard recommendation from the American Education Architectural Design. It is also a standard recommendation related to projects where there is significant demolition. The ground around the auditorium is soft which will require significant costs. Edwards said he stands by his recommendation. Chairman Johnson disagrees that a 20% project allowance is specific detail. He believes the request for this larger auditorium is not necessary for the operation of the school. This project has driven the whole discussion, up to this point, on whether there should be a bond at all. ISS has been more concerned about current expense, but if a bond is going to be put on the ballot then they would bring their projects forwarded. Typically items are funded on the ADM (Average Daily Membership) basis. In order to minimize the inequity of the school bond the Board must make sure the project is reasonable. MGSD has 22% of the students and requesting 45% of the money. If the project could be reduced to be more reasonable in regard to equity and reduce the amount of indebtedness it would be much better for the tax payers. Edwards believes it is reasonable. Three auditoriums have been presented and the cost difference is only $600,000. He said this is the request to meet the needs of the students. Commissioner Houpe stated Lake Norman High School was almost to capacity within a year of construction. He understands Chairman Johnson's concerns. He feels the Board should be proactive in a project in the south end of the county based on history. He feels $40 million is a high end of the realm. He stated some projects from the last bond were cancelled because of the economy. The Board will still be in control in the future if the economy slipped again. The projects are done in phases which can be stopped or slowed. He stated if the bond is put on the ballot and voters choose to vote for it, he is asking all school systems to hold costs down and use only the money they need to use. In his opinion the voters have the right to decide. He believes, with the history of growth in the south end of the County, the request from MGSD is probably a fair assessment. 21 June 17, 2014 Commissioner Robertson stated the middle school project will probably give an additional 1,200-1,400 students. He asked if seats would be gained with the work at Mooresville Senior High School and eliminating NF Woods. Edwards said by redesigning the CTE (Career & Technical Education) Programing, there is space at the Magnolia Annex that will need work, but they will gain functional program space. It is not a box with 25 seats, but they will gain more functionality and costs efficiencies. Commissioner Robertson asked if this project would enable them to actually increase the number of students at the high school. Edwards said yes. He believes the footprint will max at 2,400 and they could serve up to 2,400 students in this facility. Commissioner Robertson asked if the students who participated in the pre -college program relieved any of the pressures to provide classroom seats. Edwards said there were 27 students that participated. He has been in discussion with Mitchell about expanding that program. MGSD and MCC have shared facilities. He said the recommendation for sharing facilities results in cost efficiencies. The auditorium and gym will be shared facilities. Commissioner Robertson said MCC was thinking of an auditorium for Mooresville. He asked if the auditorium would be available to MCC. Edwards yes. They have a strong relationship with MCC. They also have a positive relationship with the Town of Mooresville. They have had several conversations with the Town asking for their help with parking. Commissioner Robertson asked about science, technology, engineering, and math. The STEM study will enable students to get a good paying job while auditoriums are for singing, dancing, and/or acting which is not a huge industry here. He asked if there is any sacrifice in STEM in order to build the auditorium. Edwards said no. He said an investment made years ago has made large dividends when they moved into their digital conversion along with science, technology, math and on-line resources related to science. Last year the pass rate for biology for all students was 95%. One student received a large scholarship to North Carolina State University in Math and Science. In 2002 they added science space but they use a lot of virtual labs which helps to involve more students and has been successful. Commissioner Robertson stated charter schools don't ask for money but MGSD does. He asked if a charter school were to close and the building was available for purchase then would it be usable for the public school system. Edwards said charter schools do not have to meet the same specifications/standards from DPI. He does not know if the standards are higher or lower but believes they are built so they could be converted into office space or some other type of office function. Commissioner Griffith stated education requirements, because it is an educational building, stem from the zoning and regulations that are put out by the building department. What they are referring to is the added programing space that a charter school does not have. The buildings are built for specific codes for education purposes. The building could be used for other educational purposes. However, if a public school takes over the building space may not be there for the programs they are required to house. Commissioner Robertson asked why they need a new gym. Edwards said the one concrete beam which is the sole source of the foundation of the gym would not meet code today. The gym was built when the school capacity was 600-800. They have a wide range of physical and health education programing for that space. They also have one of the largest ROTC programs in the country which is continuing to grow and they use the gym. 22 June 17, 2014 Commissioner Robertson reiterated that the questions he is asking are questions that have been asked of him. He asked why HVAC was included. Why hadn't they maintained so they wouldn't have to include this on the bond? Did you take maintenance money to buy laptops instead of maintaining the buildings? Edwards said they did use current expense money to pay for the digital conversion. They took approximately $180-$200 per student on a lease purchase basis. They stopped buying text books. They used capital money for the infrastructure which is allowed and in fact encouraged by state standards. Edwards said the digital footprint has translated to higher achievement, higher graduation rates, more scholarships and articles by The New York Times and Fox News reporting MGSD as one of the best in the nation. Commissioner Robertson asked if maintenance funds were diverted to pay for laptops. Edwards said no. They have replaced a chiller at Mooresville High School. They have spent a grand total of $667,000 on Mooresville High School on preventive maintenance over the past several years. Commissioner Robertson stated an engineering firm measured the maximum deflection of the beam under the gym while a basketball game was in action. He asked what the deflection of that particular floor beam was. Edward said it was just over a seven inch deflection. They have put perimeters on student behavior and limit the number of people who enter. The seven inch deflection is alarming and is a safety issue. Commissioner Robertson stated it costs a lot more money to demolish, remove debris, and/or renovate than it does to start anew. Since some parts of the complex is over 60 years old, why don't they just walk away and find new property and build all new? Edwards said their plans to use the Magnolia Annex secures that site. Mooresville High School is also an iconic structure and institution. The community believes it is the heart of the community. They reviewed the costs of a 2,400 capacity high school and it was $64-$68 million. Commissioner Robertson asked if any of the bond money will be used to hire more staff in the central office. Edwards said no. Commissioner Robertson asked if the staff was cut in half would it help pay for the project. Edwards said that would only be four people, so no. Commissioner Robertson asked the risk if they delayed another two to four years. Edwards said there are two factors. The first is safety. He believes if there is a small tremor or earthquake the auditorium would go down. Also, the cost will continue to rise. Commissioner Robertson said someone asked him about the lottery money. They wanted to know what the schools are doing with the lottery money and why it isn't being used to build schools. Edwards said the lottery proceeds range from $300,000 to $350,000 per year and it is used to pay for debt service. Commissioner Robertson asked if the bond money was going to be used to pay for Common Core curriculum. Edwards said no. Commissioner Robertson congratulated Dr. Edwards on the incredible positive press and reputation they have helped Iredell County earn by some of the incredible things happening at MGSD. 23 June 17, 2014 Commissioner Houpe stated he is concerned with the equity issue. When Statesville High School was renovated, the City of Statesville contributed. If additional funding is received and if the size of the project is reduced if would be appreciated. He asked the citizens to look at the bonds objectively and look at the needs for both systems. ever rhea Mooresville Graded School District eYery ds'1 REVISED June 9, 2014 A RESOLUTION OF THE SCHOOL BOARD OF MOORESVILLE GRADED SCHOOL DISTRICT, IREDELL COUNTY, NORTH CAROLINA, REQUESTING THE ISSUANCE BY THE BOARD OF COMMISSIONERS OF IREDELL COUNTY OF NORTH CAROLINA FOR $72,000,000 IN GENERAL OBLIGATION BONDS TO BE SUBMITTED TO THE VOTERS OF IREDELL COUNTY FOR AND ON BEHALF OF SUCH BOARD FOR THE PURPOSE HEREINAFTER STATED. The Mooresville Graded School District Board of Education requests that the Board of Commissioners of Iredell County adopt an order authorizing general obligation bonds of the County, and the calling of a referendum thereon for $72,000,000, at which such order will be submitted to the qualified voters of Iredell County on Tuesday, November 4, 2014. WHEREAS, this School Board of Mooresville Graded School District, Iredell County, North Carolina, deems it necessary and essential that $72,000,000 of such bonds be issued to provide funds for erecting additional school buildings, remodeling, enlarging, and reconstructing existing school buildings, as well as providing necessary utilities and acquiring necessary land. BE IT RESOLVED BY THE SCHOOL BOARD OF MOORESVILLE GRADED SCHOOL DISTRICT, IREDELL COUNTY, NORTH CAROLINA, on the SIXTH day of June 2014. 1, the undersigned Chair of the School Board of Mooresville Graded School District, Iredell County, North Carolina, do hereby certify that the foregoing constitutes a true and correct copy of a resolution duly adopted and entered in the minutes of said Board at meeting held on the Sixth day of June, 2014. 4 /% June 6, 2014 Chain an, oard of Education Date Mooresville Graded School District 2014 Proposed Bond Projects REVISED—June 9, 2014 Project 1 Year 2014-2015 $40,000,000 (Two year project) Mooresville High School renovation/construction of Performing Arts Center. Begin construction in May 2015. End construction in May 2017. Project 2 Year 2017-2018 $32,000,000 (Two year project) Begin construction of New Middle School in June of 2017. Completion in May 2019. *Total- $72,000,000 Mitchell Community College — Dr. Ralph Bentley of the Mitchell Community College Board of Trustees addressed the Board. He said MCC is in great need of a health science building that will house all of the science and health programs. The population is aging and the demand is 24 June 17, 2014 greater for trained health providers. The MCC Board has studied this for some time and feel it is their greatest need. MCC President Dr. Tim Brewer gave a brief overview of their decision. MCC is asking for $12 million to build a health science building. He said in 2007/2008 they were provided, by the state legislators, a sum of money to do advance planning for future capital needs. At that point the legislators had mentioned a state-wide bond referendum for public universities and community colleges. They immediately listed the number one priority as an allied health building. MCC has a strong nursing program and most of the building will accommodate the current needs of that program. It will also provide an opportunity to expand allied health and put all health programs in one place. The desired future programs would include CT and Ultrasound, Paramedics, Physical Therapy Assistants, Occupational Therapy Assistants, and Respiratory Therapy Assistants. The idea is to expand what they are already offering. Commissioner Robertson asked to clarify that these programs are presently active but they are just in different buildings. Brewer said that is correct. Commissioner Robertson asked why they had to be in the same building. Brewer said one of the main designs for this building is a mock hospital floor and clinical space. If it is all in one location, it will allow the students of different programs to work together in a simulated hospital scenario. The building design will include a bay and an ambulance for paramedics. They have invested quite a sum of money in simulation technology. This project would allow a more realistic situation. Commissioner Robertson asked what would happen to all the space being used for those programs now. Brewer said they have had to close off part of the Cherry Street building because of HVAC issues. The cost of replacing the HVAC is more than the worth of the building. An evaluation of the building, years ago, stated they would be better off to build than to renovate. That building will most likely be demolished and used for parking. The nursing program is housed in the science building. That lab space was built in 1970. The State Board of Nursing allows 120 slots for students but because of the limited facilities they only have 90-95 students. A new facility will allow them to reach 120 and possibility go up to a 150 -person capacity. Dr. Bentley said the Cherry Street building was donated by the Davis Hospital Foundation. It does not meet any code or standard. Brewer said they currently house the nursing program in the Greer Science Building. A new facility will enable them to expand on the natural science offerings which are areas of growth at MCC. Many students are transfers. They need and require space for chemistry and biology labs. Commissioner Robertson asked for clarification on an earlier statement concerning the disbelief of a need for capital. Chairman Johnson said that statement was not made. He said earlier that the primary concern of ISS was current expense. He did not say they had no concern about capital. But they have stated that if they had to choose one or the other they would like to increase the current expense fund. Dr. Cash said that is correct. He said in a grossly underfunded education system there are dire needs in both areas but for the moment, the current expense is a priority. There are definitely capital needs which will continue to grow and be more expensive later. 25 June 17, 2014 RESOLUTION WIiBRFAS, quality education and training are important to the economic vitality of Iredell County; and, W1 IFRFAS. increased demands related to the field of allied health and the technical skills needed for employees in this field are impacting the need for educational facilities; and, WHEREAS, Mitchell Community College has completed advanced planning for the construction of an Allied I lealth Building to support this growing sector in our county; and. WHEREAS, the Mitchell Community College Board of trustees has identified a new Allied i-lealth Building as the number one building priority for the college; and, W1 IFREAS, the cost of construction for a new Allied Health Building is $12,000,000; and, WI II REAS, the construction of a new Allied Health Building could be scheduled to commence at any point within the next five years; I I IFRIT016', BF 11 RFiSOINFD by the Board of Trustees of Mitchell Commmllity College on this C day of,j, ,e in the year„% e 1u that we tuuy support tile piacemera of me 00110 referendum question on the Novem4_014 ballot allot and encourage all voters to support the referendum in order to ensure a brighter and more productive future for the citizens of Iredell County. 6�� Ralph I.. Bentley, Chairman Mitchell Community College Board of I rustees Request Adoption of a Resolution Making Certain Findings Relating to the Authorization and Issuance of School Bonds, and Community College Bonds, and Authorize the Finance Director to File Application: Finance Director Susan Robertson presented an updated copy of the resolution and the notice of intent. The first step by the Board of Commissioners will be to adopt the preliminary findings resolution. Robertson said the financial information estimates a 5.5¢ tax increase if it is placed early, with the first issue. The Notice of Intent should be published on June 20. It will notify the public that the County intends to submit this application to the local government commission. Within that is the same information that will be included in the questions on the ballot to go to referendum on November 4, 2014. When it goes to referendum the money will not be available immediately. Additional steps are required. Bonds aren't issued until bids are in hand. This resolution starts the process to submit the application and due to the Local Government Commission by July 1. The Board will be presented with a bond order on July 15 for the first reading. At the first meeting in August, a public hearing will be held along with a request to adopt a bond order to move forward. Commissioner Robertson asked to clarify that if a motion was made but later discovered the costs are lower than expected, then the County is not required to borrow the full amount. Finance Director Robertson said that is correct. Commissioner Robertson clarified the amount of the bond is a worst case scenario. Finance Director Robertson said yes and it is a "not to exceed" number. OTIO by Commissioner Ken Robertson to adopt a resolution making certain findings and determinations authorizing the filing of an application with the local government commission and appointing bond counsel in connection with the proposed issuance of school bonds and community college bonds by the County. 26 June 17, 2014 Chairman Johnson asked to make a statement to clear some things. He said when money is requested, they tend to describe the results in the terms they choose. No one has said that Mooresville High School does not need serious renovation. There just seems to be a difference in opinion on the cost. He said he has learned that facts do not speak for themselves. Johnson said, with his background in economics, he is resistant to borrow $163.5 million in the current economic climate. This amounts to almost 100% of the annual county budget. In the just approved FY 14/15 budget, total real property values are expected to rise by only 1.4%. Personal property values are expected to decline 10.45%. A sufficient percentage is the depreciation and loss of property value in capital equipment, which is manufacturing equipment, and it is not being replaced. He said in order to take a look at the pulse of the local economy look at how capital equipment investment is coming into the community. It is the best indicator of how much confidence businesses have. In the future if that capital investment has increased then they expect things to be good, but if it is not then they are worried. The net effect is that property tax values are expected to decrease in total by $160.3 million. These numbers came from the County Manager's budget message. Sales tax revenues are expected to rise 7% but represent only 8% of the total revenue, while property taxes represent over 60%. The accommodating monetary policy of the Federal Reserve as it relates to bond purchases and artificially low interests rates can hold the economy temporarily but only pro- growth physical policy will cause the economy to grow. Such policy enactment is not in the offering and therefore we cannot expect, in the foreseeable future, a significant growth in property tax or sales tax revenues. In a historical four year property value cycle, one year of revaluation and three non -valuation, one can expect an increase of revenue of over 40%. Taking the amount of money per penny of revenue for 2015 projected in this budget of $2,039,325 and applying historical averages we can expect a penny on the tax rate in the historical cycle to bring in $2,914,641 leaving the tax rate the same. However, on the spread sheet provided for the consideration of this referendum the per penny in 2019 is not $2,914,641 but only $2,143,706 or nearly $800,000 less which means the debt load for the next several years much be borne by the existing tax payers and tax base with virtually no help from economic expansion. There is little or no possibility of tax relief in the future compared to the late 1990s and early 2000s when hundreds of millions of dollars were spent on school buildings. The tax rate was lower in 2011 than it was in 1994. Remember that in Moody's assessment of our financial condition, one of the things that could make their outlook go down, concerning our credit rating, was the incurring of significant new debt. Incurring new debt of $163.5 million is significant. Nevertheless, an argument can be made to allow the voters to decide. However, it is the inequity of this proposal that is worthy of consideration. He understands it is not possible to totally get equity because of the problems with the structural integrity of some aspects of the Mooresville High School building. But in analyzing and talking to people who are experts in construction, and some in public school construction, this project is significantly over sized for the student population. It will be significantly used by the community, and if that is the case, the community should help contribute to the cost and it should not exacerbate the equity of school financing. Davie County is buying land and building a high school for $56 million. In comparison, the CATS building in Troutman is 42,000 square feet and the proposed auditorium at MGSD is 3,000 more square feet. Therefore, with the recommendation of DPI and the State Board of Education and the exacerbation of the equity, he cannot support this bond referendum. Commissioner Houpe believes all questions and concerns are valid. These are critical needs, some can no longer be delayed because of safety and liability. This board, with Commissioner Boone, promised to put a bond on the ballot in November 2014 and the Board needs to keep their word. The inequity has been explained. The community is contributing. Everybody pays taxes. He believes the voters are smart enough to decide if they want this bond or not. They deserve the opportunity to approve or not. He understands Chairman Johnson's concerns and shares them. if the bonds pass and the economy takes a down turn, the Board of Commissioners have the authority to slow or stop the projects, so as not to put the county and the tax payers in an undue burden. Commissioner Griffith believes the citizens, when voting, will look at their checkbooks and determine if they can afford the bond. Not every bond that has been presented to the citizens have passed and believes the citizens are intelligent to determine affordability. Vice Chairman Marvin Norman thanked everyone for coming and bringing all of the information. He thanked the presenters for all the work they have done. Vice Chairman Norman seconded the motion. VOTING: Ayes — 4; Nays — 1 (Chairman Steve Johnson) 27 June 17, 2014 Chairman Johnson made one more comment. He said it is now the policy of the Board to proceed with these bonds and he will assist in this endeavor and not impede the progress of these bonds as they move forward. He accepts the policy, even though he did not vote for it, he will assist in the process in any way possible. Commissioner Houpe thanked the staff for all the work done and yet to do. RESOLUTION MAKING CERTAIN FINDINGS AND DETERMINATIONS, AUTHORIZING THE FILING OF AN APPLICATION WITH THE LOCAL GOVERNMENT COMMISSION AND APPOINTING BOND COUNSEL IN CONNECTION WITH THE PROPOSED ISSUANCE OF SCHOOL BONDS, COMMUNITY COLLEGE BONDS AND LAW ENFORCEMENT FACILITIES BONDS BY THE COUNTY BE IT RESOLVED by the Board of Commissioners (the "Board") for the County of Iredell, North Carolina (the "County"): Section 1. The Board does hereby find and determine as follows: (a) Preliminary studies have been completed to demonstrate the need for financing the cost of various public school improvements, community college improvements and law enforcement facilities improvements for the County. (b) The Board wishes to commence the procedures for the authorization of school bonds, community college bonds and law enforcement facilities bonds to finance such capital projects. (c) The capital projects to be funded by the proposed bonds are necessary and expedient, and the amount of proposed bonds is adequate and not excessive to fund said capital projects. (d) The debt management and the budgetary and fiscal management policies of the County have been carried out in compliance with applicable law. (e) The increase in taxes, if any, necessary to service the proposed debt will not be excessive. Section 2. The County Manager and the Director of Finance and Administration of the County are each hereby authorized and directed to file an application of the County with the North Carolina Local Government Commission for approval of not exceeding $151,500,000 School Bonds, $12,000,000 Community College Bonds and $23,000,000 Law Enforcement Facilities Bonds of the County. The Clerk to the Board is hereby authorized to publish a notice of intent to file such application in the manner provided by law, and any action heretofore taken to publish such notice is hereby approved, ratified and confirmed. Section 3. The law firm of Womble Carlyle Sandridge & Rice, LLP is hereby appointed to serve, but solely at the pleasure of the Board, as bond counsel to the County in connection with the authorization, sale and issuance of the proposed bonds. Section 4. The appropriate officers of the County are hereby authorized and directed to do any and all things necessary, appropriate or convenient to carry into effect the provisions of this resolution. Section 5. This resolution shall take effect immediately upon its passage. Request from Tax Administration to Approve Refunds and Releases for May: MOTION by Commissioner Griffith to approve. Smith said charter schools have impacted the refunds for the month of May. VOTING: Ayes — 5; Nays — 0 Request for Approval of the May 20 & 22, 2014 Minutes: MOTIO by Commissioner Renee Griffith to approve with a few corrections to the May 22 minutes. VOTING: Ayes — 5; Nays — 0. 28 June 17, 2014 ANNOUNCEMENTS OF VACANCIES OCCURRING ON BOARD & COMMISSIONS APPOINTMENTS TO BOARDS AND COMMISSIONS Juvenile Crime Prevention Council (5 Appointments) — Commissioner Renee Griffith nominated Mark Vaughn, Paula Patterson, Vicki Dame, Leigh Byers and Dan Miglin. MOTION by Chairman Johnson to close the floor to nominations and appoint Mark Vaughn, Paula Patterson, Vicki Dame, Leigh Byers and Dan Miglin by acclamation. VOTING: Ayes — 5; Nays — 0 Iredell County Planning Board (3 Appointments) — Commissioner Gene Houpe nominated Jeff McNeely, Harry Tsumas, and Dennis Hutchens. MOTION by Chairman Johnson to close the floor to nominations and appoint Jeff McNeely, Harry Tsumas, and Dennis Hutchens by acclamation. VOTING: Ayes — 5; Nays — 0 Region F Aging Advisory Committee (2 Appointments) — Commissioner Gene Houpe nominated Barbara Barrier and Liz Burns. MOTION by Chairman Johnson to close the floor to nominations and appoint Barbara Barrier and Liz Burns by acclamation. VOTING: Ayes — 5; Nays — 0 Mooresville Planning Board (1 Appointment) — Commissioner Gene Houpe nominated Allen Brawley. MOTION by Chairman Johnson to close the floor to nominations and appoint Allen Brawley by acclamation. VOTING: Ayes — 5; Nays — 0 UNFINISHED BUSINESS (None) PUBLIC COMMENT Fawn Strunk stated she had attended two previous Board of Commissioners' meetings but someone said she could not speak at either one. She stated she is shocked at the lack of input tax payers have when talking about the largest debt offering in the County's history. She feels the tax payers need more voice. According to the news, the property taxes will rise by 14%. High property taxes cause foreclosures. She is voicing opposition to putting the bond or debt referendum on the ballot for ISS and MGSD in the form they are currently worded. She feels they are inequitable with Mooresville getting half of the funds for 22% of the students. She is very concerned over the wording on the referendum. She doesn't understand who chooses the wording. The devil is in the details of the wording. Many people will be confused by the word Bond. People invest money in bonds as an asset. She asked if the wording will make clear that these bonds will be debt and will increase property taxes by approximately 14% and may result in foreclosures if the property owner cannot pay. Will it be clear that homes will be the collateral for the debt being proposed? Who chooses the wording and will it be clear that the 14% will be taxed on homes and real estate? She asked that the word "debt" be used as an explanation so people can understand what the word bond is referring to. She strongly opposes ISS and MGSD having a debt request on the ballot. If it does appear, tax payers should understand it is not an asset and they are approving debt. Again, she stressed it should be made clear especially since the newspaper stated it is the biggest debt offering in the County's history. She thanked Chairman Johnson for his "no" vote. 29 June 17, 2014 Chairman Johnson apologized for any misunderstanding with the Board meetings. He asked Ms. Strunk to contact the Clerk or himself. Although he may disagree with other members of the Board, he believes none of them would deny anyone the opportunity to speak. Chairman Johnson asked the County Manager and the Finance Director if the Board would approve the wording that goes on the ballot. Finance Director Susan Robertson said that is correct. Chairman Johnson told Ms. Strunk she is welcome to address the Board at any time in the future regarding that wording. Commissioner Renee Griffith stated that the County's web site has all phone numbers and contact information for all of the Commissioners. All members are accessible and encourage voters to make contact. NEW BUSINESS (None) COUNTY MANAGER'S REPORT County Manager Ron Smith stated he will be out of town, Monday, June 30 through Friday, July 4. He asked the Board to appoint Deputy County Manager Beth Dirks as Acting County Manager while he is away. MOT10N by Chairman Steve Johnson to appoint Beth Dirks as the Acting County Manager in the absence of County Manager Ron Smith. VOTING: Ayes — 5: Nays — 0 CLOSED SESSION MOT10N by Chairman Steve Johnson to go into Closed Session pursuant to G.S. 143- 318.11 (a) (6) Personnel at 9:50 p.m. VOTING: Ayes — 5; Nays — 0 (RETURNED TO OPEN SESSION AT 10:07) Personnel —MOTION by Commissioner Ken Robertson to change the salary of the Register of Deeds to $64,566 which is a Grade 78, Step 29. VOTING: Ayes — 5; Nays — 0 ADJOURNMENT: OTION by Chairman Steve Johnson to adjourn the meeting at 10:09 p.m. (NEXT MEETING: Tuesday, July 15, 2014 at 7:00 p.m. in the Iredell County Government Center, 200 South Center Street, Statesville, NC) VOTING: Ayes — 5; Nays — 0. Approval: 30 Clerk to the Board