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HomeMy WebLinkAboutMay_27_2014_Budget_Session_MinutesMay 27, 2014 IREDELL COUNTY BOARD OF COMMISSIONERS BUDGET SESSION MINUTES Mav 27, 2014 The Iredell County Board of Commissioners met on Tuesday, May 27, 2014, at 4:00 PM, in the Iredell County Government Center (South Wing Conference Room), 200 South Center Street, Statesville, NC. Board Members Present Chairman Steve Johnson Vice Chairman Marvin Norman Ken Robertson Renee Griffith Gene Houpe Staff present: County Manager Ron Smith, Deputy County Manager Beth Dirks, Finance Director Susan Robertson, Assistant Finance Director Deb Alford, and Clerk to the Board Retha Gaither. CALL TO ORDER by Chairman Steve Johnson and turned the meeting over to County Manager Ron Smith. EMS — EMS Director David Cloer stated their budget includes the need for vehicles. He has prepared a plan for a 15 year pay back if they proceed with a building. It shows an estimated revenue and expenditures from Specialty Services. The projected revenue is based on a 3% increase in revenue per year. Commissioner Renee Griffith asked how much it had increased each year. Cloer they have truly been in operation for only one year. Our projection for this year is about 15% over last year, but he doesn't believe that will happen every year. Chairman Johnson asked about one line item titled Capital Other. Cloer said basically they are all fund balances. He said they have an expense line for capital buildings which is what they expect to pay back on the building loan. There is a fund balance for vehicles and a fund balance for other/regular equipment and another fund balance for what is uncommitted. He added power cots in FY19 to reduce back injuries which is estimated at $350,000. In his estimate of sustainability, they would need a 5% increase. Included in that estimate is a 7% personnel cost and a 4% operation cost. Around FY20, the bottom dollar begins to decrease which means the cost will outpace the revenue. However, that does not take into consideration any rise in fees which would offset expenses. Smith feels these numbers are high but, with diligent monitoring, adjustments could be made. May 27, 2014 Commissioner Renee Griffith asked if they could proceed with a base needs study. Smith said they are proposing to go forward with the study in this upcoming year. The money is in the FYI budget. Chairman Johnson asked if there was anything in the plan for potential moves of other EMS bases. He asked if a base had to move would they locate within a fire department as they have done in the past. Cloer said that would be his recommendation because of their locations. He stated that leasing a portion of their building has worked best. He does not foresee another free-standing EMS base. Chairman Johnson agreed with the $60,000 for the study but was hesitant to proceed with a loan until decisions are made concerning the jail. Animal Services — County Manager Ron Smith stated Brad Gates, Animal Services Director, hit the ground running. Complaints have decreased greatly and feels he has done an excellentjob. Gates said they are trying to make the shelter more of a helpful place. He is trying to move animals out and improve the relationship with the public. The officers are working to be more helpful instead of policing. They have started a program with PetSmart charities which requires extensive vaccinations that are minimal sheltering standards. One of the largest changes is to the medical line item for vaccine drugs. The PetSmart organization will pick up animals and deliver to other states for adoption. Even though the shelter is only reimbursed for the costs, the animals are removed. Every animal that is taken into the shelter will be put on a path, such as the PetSmart charities path, the adoptions path, the unadoptable path or the rescue path. Any animal that is held in the general population will require all of the vaccinations in order to prevent the spread of diseases. They plan to increase public opinion with specific events for awareness along with fund raising opportunities. Smith asked about housing the animals that will be moved or housed over time. Gates said PetSmart truck is scheduled twice monthly. Removal of 20 animals twice monthly frees a lot of space which provides a longer period of time to focus on the other animals. Commissioner Griffith asked about the housing costs. Gates said the housing isn't expensive. The budget is for food, but they receive lots of donations. If Walmart has a bag to rip they will give the food to the shelter. He said the highest expense is medication. Vice Chairman Norman asked the present euthanasia procedure. Gates said it is a product called Fatal -Plus, which is an intravenous injection. 2 May 27, 2014 Chairman Johnson asked about staff training to maintain public safety. Gates said in the past their first response was to take an animal to fix the situation. Officers are now talking to the people to try to work things out without removing the animal, if possible. They are taking their time to settle arguments, etc. Chairman Johnson asked for justification for the veterinarian position. Gates said Dr. Ball has been wonderful but is not sure she wants to renew her contract. Presently Dr. Ball is saving the County about $14,000 per year with just spay/neutering. When an animal comes in with issues it must be taken to an animal hospital, whereas a vet on staff would be on call to make that determination. Every animal being sent to PetSmart Charities must have a vet check, which Dr. Ball is handling but it is not in her contract. Right now all low cost spay/neuter is being sent to Catawba County because the Catawba County Humane Society has taken over the animal care for all of the county. A full-time vet on staff would keep that money in Iredell County. Also, a vet on staff would eliminate the kennel -tech position and one part-time position. The vet could help with microchip clinics, which is another potential revenue. The vet would provide in- house diagnostics and could be an expert witness for cruelty investigations. He said they are hoping to implement a new program for cats. Cats are trapped, spayed/neutered and then released which would reduce the cat population in problem areas, of course with a property owner's permission. The vet would also be available to train officers and shelter employees instead of paying for training outside the county. He believes the position would pay for itself. Chairman Johnson asked the salary of the kennel -tech position. Gates said $26,000 plus benefits. Chairman Johnson asked if the medical professional services at $32,000 are 100% related to not having a veterinarian on staff. Gates said yes. The vet will cover the health care for dogs and cats plus vet services for livestock. A Coggins test is about $80 and is required on donkeys and horses. Chairman Johnson feels this position would pay for itself. He expressed his appreciation to Mr. Gates for job well done. Finance Director Susan Robertson said the fuel budget has been cut $7,000 because Mr. Gates has stopped the patrolling for animals. Sheriff's Office, Jail & Crime Lab — Chief Deputy Rick Dowdle said this is the last budget presentation under the present administration and, on behalf of Sheriff Redmond, they appreciate the Commissioners' continued support. Dowdle feels the Sheriffs Office has been good stewards of the money. Dowdle asked if there were any questions concerning the Sheriff's Department. May 27, 2014 Smith said the Sheriffs Office and jail have several cuts, especially with vehicles. They asked for a couple of new positions but he is not recommending them at this time due to the upcoming change in Administration. Chairman Johnson asked what type of cars are being purchased. Dowdle said he is hoping to stay with the Tahoe which has been the best serviceable vehicle. They obtained some Caprices but are not sure about their serviceability yet. He is hoping Tahoes will be on state contract. The Tahoe would be used as a pursuit unit. He is requesting 10 vehicles with 6 or 7 of them being Tahoes. Commissioner Robertson asked the status of the propane conversion. Mike Phillips said they are trying to find a vender to convert the Tahoes. Commissioner Robertson asked if there has been a savings on the conversions. Dowdle said they have saved money but did not bring the numbers with to this meeting. Assistant Finance Director Deb Alford said they received tax rebates for two years on propane vehicles for the Sheriffs Office and ICATS. However, she understands that program sunset in December of 2013. She has not heard that it has been extended but will apply if it has. Commissioner Robertson asked if it is still economical without the rebate. Alford apologized but did not have those numbers available. Smith said ICATS went away from propane for a while because of a spike in cost. Deputy County Manager Beth Dirks said that is correct. Propane prices increased during the winter and ICATS went back to gasoline. Dowdle said the vehicle's longevity has increased with propane. Jail — Dowdle said he has asked for two positions in the jail budget. He asked for two bailiffs to help with the burdens with the court system. However, they would make it work with one if necessary. Chairman Johnson questioned the increase in building maintenance and repairs. Dowdle said the largest increase is replacing some of the cell doors that are completely worn out. They can't get parts for the 40 year old steel cells. Chairman Johnson asked about the outside confinement. 4 May 27, 2014 Smith said the new misdemeanants program may or may not be immediate but if all of the surrounding spaces are full, then the subject must stay here in the county. Chairman Johnson feels that a high price will be paid if space could be found. Dowdle said the smaller jails just will not be handle their misdemeanors and those that have built new jails are already too small. Chairman Johnson asked Dowdle if he could estimate the number this potential program would effect. Dowdle believes the number could rise by 20-25% and that may be a low number. Bert Connolly said they sent 60+ out to surroundings facilities during the third quarter which was during the winter and generally is the lowest time of the year. Chairman Johnson asked the percentage of inmates on medication. Connolly and Dowdle said about 60-80%. Commissioner Robertson asked if there are any reimbursements from Medicaid or insurance. Connolly said they have criteria they must follow but unless they have insurance it is the county's responsibility. Chairman Johnson asked County Manager Ron Smith and Bert Connolly to review the potential program and then craft a letter to legislators expressing concern over this issue. Crime Lab — Mike Phillips said it appears they are going to be very close to the revenue projections in drug cases presented in November at the Fall Work Session. However the blood alcohol cases will not meet the revenue projections. He said they stopped taking blood alcohol cases in order to complete the accreditation for the lab. He said they received their accreditation in May. They were pushing for this endorsement in order to bid for a state contract, which they have submitted. If this contract is awarded to Iredell County it will be significant. Phillips stated a site review was performed and went very well. The only recommended changes were in policy terminology. Phillips said there are $76,000 in expenses that are one-time expenses. The payment on the records management system is complete. They had to purchase a printer and a crime scope for accreditation. He said they have been aggressively marketing the lab. Nine new agencies have signed on and six more have called inquiring about work. They have also been aggressive with grant applications. Commissioner Robertson asked why testing is being done at no charge. I May 27, 2014 Chairman Johnson said the state contract would be a guarantee of revenue. Commissioner Robertson said initially the crime lab was proposed to eventually pay for itself. However, the lab has not paid for itself or broke even. He asked why lab work is being subsidized for other counties. He asked why there isn't some type of minimal charge. Phillips said they are beginning that this year. They have notified all agencies there will be a fee that must be paid up front. Commissioner Griffith ask the amount of that fee. Phillips said it would be based on the size of the department. Large departments are $5,000, medium size will be $2,500 and small departments will be $1,500 per year. Commissioner Griffith asked the price of one blood alcohol test. Phillips said $525. Commissioner Griffith asked the labor cost. Phillips said $525. Commissioner Griffith said that only covers 3 blood alcohol tests for a small department. Phillips said that is about average for a small department. Commissioner Griffith asked if other agencies would ask for more tests. Phillips said he would hope to get their drug business as well. Commissioner Griffith asked the cost of running drug test and how many they believe might be received from a small department. Phillips said the cost is the same and they have received two requests from a small department. Commissioner Griffith said automatically $1,000 is lost. Dowdle said the lab would receive any awarded court fees and that is not included in those numbers. Commissioner Griffith feels the lab fees should cover the cost of the tests whether or not court fees are awarded. Vice Chairman Marvin Norman asked how long it would be before they would hear from the state contracts. 6 May 27, 2014 Phillips said the closing date for submissions is June 6. Vice Chairman Norman asked how much business the state contract would bring. Phillips said about 100 cases per month. Finance Director Robertson asked if the work could be done with existing staff. Phillips said they may consider a dedicated analyst. Chairman Johnson asked for clarification on the cost of performing these tests. He stated that if a test cost $525 and we charge $525, there is no profit. Phillips said he misunderstood the question earlier. The test costs about $200-$250 to actually perform. Commissioner Robertson asked how many people actually work in the lab. Misty Icard said there are 2 full-time and 2 part-time. After some discussion of the crime lab, Chairman Johnson suggested to revisit the fees they are charging other counties in order to improve the revenues. If the state contract is awarded locally that will bring in a substantial amount. Johnson said the cost of operations must go down and the revenues must increase. The Sheriff s Office was instructed to return with a business plan that isn't subsidizing lab work for other counties. Smith asked about the lab employees. He suggested the budget show the actual percentage of time that is spent in the lab by each employee, especially those that may work in more than one area. Finance Director Susan Robertson said it is important to have accurate figures on the actual cost of the crime lab. Commissioner Robertson asked the Sheriffs office to have the business plan ready for the fall planning session. Robertson asked specifically for this to be placed on the agenda for the fall. Chairman Johnson asked that all information concerning misdemeanants be passed along to the Board upon receipt. Rescue Squads — Smith said all the numbers are formula based. Iredell Rescue made a request. A formula was developed for all of the rescue squads and their core funding will be based on three things: 1) square miles in their district, 2) the population in their district, and 3) whether or not they are a standalone department. In theory, the population and size will dictate the light, medium, or heavy rescue designation. There was a re -distribution of Mooresville Rescue's operating and reserve funds that were added to each district. The item titled Proposed Funds of May 27, 2014 2014 are funds that were reallocated to various districts which is how a reserve fund was developed for each district and is available now. In addition there is a capital equipment reserve appropriation to assist all of them in building for the future. There is a capital equipment fund at 3% that they must personally request. Chairman Johnson said David Saleeby was instructed to gather information about the needs of the fire and rescue departments. This information has been compiled and Johnson feels it is a process that will benefit all parties and ultimately puts some money back into the capital fund for their future needs. Commissioner Griffith said this formula takes away some turf war issues. This formula is equitable and supportive to all areas of the county. She explained that she is in favor of this process because the entire tone and direction has been shifted. Smith said the process will not be as difficult next year with this formula. Chairman Johnson commented that David Saleeby did a really good job. Volunteer Fire Departments — Smith said there is not much new. The largest change county -wide is Lake Norman who is paying the final four debt payments which will equate to a decrease. Finance Director Robertson said there is a very small reduction of $276.00 to Ebenezer. The City of Statesville is annexing a small area for a new retail store which means they will reimburse Ebenezer a pro -rata share for their debt service. Commissioner Robertson asked that Mr. Saleeby work on an estimate of how much it would cost to replace existing vehicles for each fire department and rescue unit. Finance Director Robertson said the Fire Tax Board allocates a certain amount each year, per department, for a truck fund. Each department is instructed to accumulate those funds so they will have money when it is time to replace their truck. Commissioner Robertson asked if the amount was sufficient. Chairman Johnson feels if Mr. Saleeby can keep a handle on large ticket items, such as trucks, etc., there could be a sizeable savings. However, at some point he feels Mr. Saleeby could be given the responsibility of reviewing the current expense of things like turn -out gear, hose, etc., so these items could be put on a replacement schedule and purchased through state contract. This would move away from a recommendation/board process to an administrative process. They will not be under direct county control but county oversight. Smith pointed out that Mount Mourne is requesting a tax increase from 4¢ to 4.5¢. Other — Finance Director Susan Robertson said worker's comp costs have increase greatly. However, the county now buys stop -loss insurance. Presently the county retains $650,000 on a May 27, 2014 single worker's comp claim. The fund balance is down to $359,000. The goal, over the next two years, is to return the worker's comp fund balance to equal the retention. Schools — Smith said when ISS found out they could not move funds from capital to current, they seemed satisfied with $336,000. MGSD was satisfied as well. Commissioner Robertson said he would like to see something that shows staffing ratio of teachers to students along with how much is being spent on supplies, etc. It would be helpful to have some metrics to compare to other school systems. Commissioner Griffith said some data is available that shows graduation rates increased even after previous cuts. Other data to review would be the assistant principals 5 years ago compared to now and the pupil funding five years ago and now. Commissioner Robertson suggested to commit to only half until the State's budget is finalized. Chairman Johnson suggested committing to the $I. I million. Commissioner Robertson is uncomfortable with committing until the State's budget is final concerning the worker's comp. Chairman Johnson asked the County Manager to confirm they are satisfied with $1.1 million. Commissioner Griffith made a recommendation to commit to the $1.1 million and take all the other off the table for now. Commissioner Robertson said the directive was that the schools would have to return with any other requests. Commissioner Griffith asked if the Board could specify on the bond exactly which projects the money could be used for. Finance Director Robertson said schools need to designate projects all over the county in order to pass it with the voters. 2014. Smith reported the schools said they were going to prioritize their projects. MOTION by Chairman Johnson to recess this meeting until 6:00 p.m. on Tuesday, June 3, All were in agreement. 9 May 27, 2014 Approval: 10 Clerk to the Board