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HomeMy WebLinkAboutMay_6_2014_Regular_MinutesMay 6, 2014 IREDELL COUNTY BOARD OF COMMISSIONERS REGULAR MINUTES Mav 6, 2014 The Iredell County Board of Commissioners met on Tuesday, May 6, 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 Renee Griffith Ken Robertson 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, Planning Director Matthew Todd, Health Director Jane Murray, ECOM Director David Martin, ICATS Director Ben Stikeleather, EMS Director David Cloer, EMS Assistant Director Steve Mauney and Clerk to the Board Retha Gaither. CALL TO ORDER by Chairman Steve Johnson MOMENT OF SILENCE was asked by Chairman Steve Johnson in memory of Commissioner David Boone. u, a �Iloment of Silence for DavidAnd'rew Boone August 29, 1949—Apri[27, 2014 Electedlerms of office to the IredeCfCounty Board of Commissioners 1992-1996,• 1996-1998,• 2012-2016 Vice Chairman of the Board 1992-1996 INVOCATION by Chairman Steve Johnson Commissioner Renee Griffith spoke in memory and honor of Commissioner Boone. She said she would be casting a "no" vote on the adoption of the agenda in honor of Mr. Boone. She continued by saying he was a loyal friend, staunch conservative, closest ally and felt he truly wanted to help his community. She said his great analytical mind would be missed and the Board may find someone to fill his seat but no one will fill his shoes. May 6, 2014 PLEDGE OF ALLEGIANCE led by Chairman Steve Johnson ADJUSTMENTS OF THE AGENDA: Chairman Johnson asked to say a few comments during the County Manager's report about the credit standing of Iredell County. OTIO by Chairman Johnson to accept the agenda as presented. VOTING: Ayes — 3; Nays — 1 (Renee Griffith voted against for Commissioner Boone) PRESENTATION OF SPECIAL RECOGNITIONS & AWARDS Chairman Steve Johnson asked David Hinson from Environmental Health, to come forward to receive a retirement plaque for his 34 years of dedicated service. David Hinson stated he was honored to serve and was thankful for all of the people he met along the journey. APPOINTMENTS BEFORE THE BOARD Information Provided by ICATS Regarding the Changes in Funding Caused by the Urban/Rural Split: ICATS Director Ben Stikeleather stated the funding is going to change because the 2010 Census designated part of Iredell County as an urban service area. The largest impact will affect customers under the age of 60 who live within the urban area, as designated by the census. There will not be any transportation options available for them. Mooresville maintains a fixed route so those customers will continue to use that route. He has approached the City of Statesville for possible funding. However, if nothing is gained from the city, ICATS may be able to provide transportation on Monday and/or Friday. He said they are working diligently with other agencies to cover as many people as possible. Although, this change will allow more options to customers in the rural sections. Chainnan Steve Johnson asked to clarify the rural area will not be impacted by the change. Stikeleather said the rural areas will have no negative impact and may even see more options. Commissioner Ken Robertson asked to clarify that urban customers will see a reduction but not a total elimination of routes. Stikeleather said the service provided to the urban area will not go away totally, if riders are under programs like Medicaid. Those customers will not be impacted. But, the grant funding in -town, especially 5310, which covers elderly and disabled individuals, will no longer be eligible in the urban area. However, he is working to find other funding. Stikeleather pointed out there are other cuts coming from the state but do not know when. He said there will be cuts in administrative and capital grants, but feels the earliest those will happen will be in 2016. 2 May b, 2014 PUBLIC HEARINGS Chairman Steve Johnson called the meeting into a public hearing. Public Hearing to Consider a Request for the Approval of Tax -Exempt Bond Financing for The North Carolina Charter Educational Foundation, Inc.: County Attorney Bill Pope explained The North Carolina Charter Educational Foundation, Inc. operates a charter school, known as Langtree. They propose to acquire some property, erect and equip some facilities which may cost as much as $20,000,000. They want to borrow money on a tax favored basis as a non-profit. However, one of the requirements of the Internal Revenue Code is that the Board of Commissioners, in the county in which this non-profit is located, hold a public hearing to give anyone the opportunity to provide input. Pope said when he first read the request he was concerned the county may be involved with issuing the bonds and/or have its credit or reputation on the line. After much research, it was confirmed the County has no pledge in its taxing authority or faith in credit in any way. The County is only facilitating a public hearing for the public to participate. He asked the bond council to bold print the following statement in the resolution, "...provided that in no event shall Iredell County, the State of North Carolina or any political subdivision thereof be liable for such Bonds nor shall the Bonds constitute a debt of Iredell County, the State of North Carolina or any political subdivision thereof." Pope said he is satisfied the County has no exposure. Brandon Lofton, attorney with Robinson, Bradshaw & Hinson from Charlotte who is serving as bond council for this issue, addressed the Board. He said it is an obligation of the Public Finance Authority of Wisconsin that is payable out of debt coming from the charter school that is operated by the North Carolina Charter Educational Foundation. He iterated this is not the county's debt and is in no way pledging its taxing power or in any way obligating itself to this debt. It is just a requirement under the internal government code that the citizens have an opportunity to voice any concerns or any opinions they may have about the project. Chairman Steve Johnson asked if the County would incur any expenses in the execution of these bonds, in their sell, or in the preparation of any paperwork. Lofton said no. Commissioner Ken Robertson asked the bond council to confirm the County would not have "reputational taint" if the school defaults on the loan. Lofton said these bonds will not be connected to Iredell County in any way. They will be offered to the public as bonds from the Public Finance Authority of Wisconsin and payable solely from revenues from the North Carolina Charter Educational Foundation. The only connection the County has is the location of the school. Commissioner Robertson clarified that Iredell County Government isn't named on the paperwork. Lofton said that is correct. May b, 2014 Commissioner Robertson asked who would own the building if the charter school discontinues operation. Lofton said the building and this loan is owned by Red Apple LLC and then ]eased to the charter school. Red Apple, LLC and the charter school are borrowing the money from the public finance authority. If there is a default on the debt the bond holders would foreclose on the property. Commissioner Robertson asked who would get the building if the bond is paid and then the charter school closes. Lofton said Red Apple, LLC would retain ownership of the building. Pope said the school is a 501(c)(3) and upon dissolution its assets have to be distributed to another 501(c)(3) organization providing the same mission. Commissioner Griffith asked if any of the bonds will pass through the County. Lofton said no. Commissioner Griffith asked to clarify this is just a technically the IRS requires. Lofton said that is correct. No citizens spoke. Chairman Johnson closed the public hearing. MOTION by Commissioner Griffith to approve. VOTING: Ayes — 4; Nays — 0 ADMINISTRATIVE MATTERS Request from the Health Department for Approval of Additions to the Clinical Services Fee Schedule: Health Director Jane Murray said the walk-in lab services program continues to do extremely well. This request is to add fees for additional tests being requested. This cash only program has generated approximately $20,000. OTIO by Vice Chairman Marvin Norman to approve. VOTING: Ayes — 4; Nays — 0 Request from the Health Department for Approval of the Iredell County Health Department Tobacco Free Zone Policy and Procedure: Health Director Jane Murray said this request concerns the administrative policy that was developed at the health Department in June of 2010, based upon a public health accreditation requirement. In preparing for the reaccreditation 4 May 6, 2014 this fall, the policy must be approved by the Board of Commissioners. The policy is a 50 -foot tobacco free zone in all buildings that provide public health services, which include the Health Department on Turnersburg Highway, the Government Center South in Mooresville, and Building Standards Center in Statesville. Commissioner Renee Griffith asked if the 50 foot requirement was stated in the general statutes. Murray said it was in the public health accreditation, but believes the standard is 30.1 feet. She said the trend in public health is tobacco free in all public buildings, property, and vehicles. She also said they would like to talk more, in the future, about other opportunities to make other public buildings tobacco free. OTION by Vice Chairman Marvin Norman to approve. VOTING: Ayes — 4; Nays — 0. Request from the Fire and Emergency Services Coordinator to Approve Eight Rescue Squad Agreements to Provide Rescue Services with Existing Rescue Service District Boundaries: Fire and Emergency Services Coordinator David Saleeby asked the following representatives from the rescue districts to join him in front: Iredell Rescue — Chief Brian Niblock, Board of Directors Chairman Joe Blevins; Lake Norman — Rescue Chief/Deputy Fire Chief Neel Brawley; Mooresville — Chief Curt Deaton, Town of Mooresville Commissioner David Coble; Mount Mourne—Chief Emeritus Steve Knox, Assistant Chief Steve Robbins; North Iredell Rescue — Chief David Cook, Deputy Chief Rawdy Cox, Board of Directors Secretary/Treasurer Cathy Mills, Board of Directors Chairman Richard Renegar; Shepherds — Chief Kelly Robinson; South Iredell — Chief Brian Weatherman, Board of Directors Chairman Gary Styers; Troutman — Fire Chief Allen Church, Rescue Chief Tom Billig, Board of Directors Chairman Keith Troutman. Saleeby stated, over the past year staff has worked with South Iredell, Lake Norman, Shepherds, and Mount Mourne Volunteer Fire Departments to create rescue districts and provide rescue services within their existing fire districts. With board approval, the Town of Mooresville began providing rescue services within their municipal boundaries in May of 2011. Troutman, Iredell and North Iredell Rescue Squads have been providing rescue services in their districts since the early 1960s. All eight of these rescue squads have provided excellent service to the County without any operating agreement or service contract. Over the past five months, all eight rescue organizations represented, have worked with Iredell County staff to create the agreements. The action requested is to approve rescue service agreements for each organization and they understand that without an approved agreement the County will no longer provide funding after June 30, 2014. Commissioner Renee Griffith stated when she first became a member of the Board she heard concerns from rescue squads about no contracts. She thanked everyone for their patience working through the process. She said the agreements should offer some assurance of future support, even though members of the Board of Commissioners will change. She thanked them for their dedicated service to h edell County. May 6, 2014 Commissioner Ken Robertson commented the Board of Commissioners has spent a lot of time trying to understand the differences in services between fire and rescue, along with learning the time involved in training for these services. He said these agreements should provide stability. Also, it is the intent of this Board, at this point, not to change the number of rescue squads nor the number of fire departments who seek to become rescue squads. Chairman Steve Johnson stated he is proud and appreciates the willingness of volunteers of this county. When citizens need them they go. While serving on a Regional Task Force for Homeland Security, Chairman Johnson said he was amazed, when meeting with other communities, about the amount of friction between emergency departments in other communities. He told the representative from Homeland Security that members of emergency services in Iredell County go, without hesitation, when they are called. The representative said that is quite unique. Chairman Johnson continued by assuring each one present that the decision to establish new rescue districts was not initiated by the Board of Commissioners and was not something they wanted to do but because of the change in demographics were compelled to do. The Town of Mooresville decided to implement first responders which was needed to serve the citizens adequately. However, that created a problem in the County with getting emergency services from downtown Mooresville out into the county. This is the reason the Board had to look for a more efficient, cost effective way to deliver those services. He said there is no plan, or even idea, to create anymore rescue service districts beyond this. Therefore, these contracts should provide assurance of funding. Once the standards are adopted everyone will operate with the same expectations. However, the Board will continue to monitor the standards required so adjustments can be made to remain in compliance. Chairman Johnson said the Board has complete faith in the ability of volunteers to provide services. MOTION by Commissioner Griffith to approve. VOTING: Ayes — 4; Nays — 0. Request from the Fire and Emergency Services Coordinator to Adopt the North Carolina Association of Rescue and EMS Standards and Definitions as the Standard Used for Rescue Certification Levels in Iredell County: Fire and Emergency Services Coordinator David Saleeby stated the North Carolina Association of Rescue and EMS is the organization which certifies and governs rescue squads. At the February 22 Board of Commissioners' Winter Retreat, the Board asked for a formal adoption of definitions of levels (light, medium, or heavy) of rescue squad certifications. There are special levels of certification currently being used by some squads and those definitions are available upon request. Commissioner Ken Robertson stated during the initial talks concerning contracts, it was decided that if the State made changes to the requirements, the County would automatically make those same changes. Saleeby said that is correct and it is stated in the agreements. If the State changes the standards, the County makes the same changes. Commissioner Robertson clarified that it would not require further action by the Board. 6 May b, 2014 Saleeby said yes, that is correct. Robertson asked if equipment, etc. is all up to speed to meet the standards. Saleeby said yes, at the levels currently certified they have everything they need. The service agreement also states that if a district adds any technical rescue or higher level, the County and the squad will come to an agreement which will be brought before the Board. Chairman Johnson asked to clarify if the standards are changed in the equipment, training, etc. to meet the new definition of light, medium, or heavy, there will be a period of time for the Board to confirm money is available for that change. Saleeby and representatives said yes. Chairman Johnson stated he is relying on them to give the Board advance notice if funding is needed to make the required changes. OTION by Vice Chairman Marvin Norman to approve the standards. VOTING: Ayes — 4; Nays — 0 Request for EMS to Approve Budget Amendment #24 to Transfer Additional Funds of $275,000 from the EMS Specialty Services Enterprise Fund to the General Fund to Pay Off the Start Up Loan: EMS Director David Cloer stated in December 2011, the County was put into a situation when a non -emergency ambulance provider decided to shut down services. At that time, he was authorized by the Board to make a plan of action to provide those services, which resulted in asking for a start-up loan for EMS Specialty Services. Cloer said he was happy to announce the request to transfer money is to pay off that initial loan, 2 '/z years ahead of schedule. Chainnan Steve Johnson said the Board fully understood the hardship the EMS staff was put under when asked to make a plan. He knew there would be a period of time before hiring and training could take place. Many staff members from EMS went above and beyond their duty to make this service work. Chairman Johnson asked Cloer to pass along to his staff the appreciation of the Board for their dedication. He also expressed appreciation for the stewardship of all staff in paying the loan off in advance. The money generated from this service will be used to improve capital operations in the EMS Department. OTIO by Commissioner Ken Robertson to approve budget amendment #34. VOTING: Ayes — 4; Nays — 0 Request from Finance to Approve a Project Ordinance for the West Iredell High School HVAC Project: Finance Director Susan Robertson said she is asking the Board to approve a project ordinance for the financing portion and for the $303,000 that Iredell-Statesville May b, 2014 Schools will contribute to the project. The project will be bid soon with construction beginning as soon as school dismisses for the summer. MOTION by Vice Chairman Norman to approve. VOTING: Ayes — 4; Nays — 0 Request for Approval of the April 15, 2014 Minutes: MOTION by Commissioner Renee Griffith to approve. VOTING: Ayes — 4; Nays — 0. ANNOUNCEMENTS OF VACANCIES OCCURRING ON BOARD & COMMISSIONS • Mitchell Community College Board of Trustees — 1 announcement • Nursing Home Advisory Board — 2 announcements • CONNECT Consortium with Centralina Council of Governments — 1 announcement APPOINTMENTS TO BOARDS AND COMMISSIONS I -CARE Board of Directors — I appointment. Commissioner Ken Robertson recommended Carolyn Gray. OTIO by Chairman Johnson to close the floor to nominations and appoint Carolyn Gray by acclamation. VOTING: Ayes — 4; Nays — 0 UNFINISHED BUSINESS (None) PUBLIC COMMENT (None) NEW BUSINESS (None) COUNTY MANAGER'S REPORT Credit Report: Chairman Steve Johnson asked to comment on a recent report from Moody's Investors Service. The report for Iredell County, even though the bond rating remains the same, the outlook has changed from "stable" to "positive." The strengths include a sizeable tax base benefitting from proximity to the growing Charlotte MSA. Another strength is a conservative budgeting practice resulting in increased fiscal flexibility. Some of the challenges are above- average employment volatility and a moderate reliance on unpredictable sales tax revenues. The 8 May b, 2014 report specifically mentions the budgetary discipline that has been maintained. The Board conservatively budgets revenue projections, conservatively budgets expenditures and maintain well within the limits while protecting the integrity of the fund balance. He said the report states the administrative policy of maintaining an 18% fund balance, although never formalized, it was the working philosophy of the Board to keep the fund balance above 18%. This report is an endorsement of that philosophy as well as the execution by all county staff. However, he said there is a word of caution and a word of encouragement. From the report, he read what could make the rating go up — strengthening of the tax base and demographic profile to levels consistent with Aa 1 rating category. One challenge of Iredell County is the difference in per capita income in different parts of the County. They would like to see uniformity in the per capita income across the County. Other counties that enjoy the Aa I Category typically have the uniform per capita income. To some degree Iredell County lacks that uniformity. However, work is being done in economic development strategies for the Statesville area. If the remainder of the county could look more like Mooresville in per capita income it would contribute to the increase of the rate. Another item that could make the rating go up is maintenance of currently healthy reserve and liquidity. Chairman Johnson thanked fellow commissioners for the difficult decisions they have had to make. He thanked the staff for the faithful executions of those decisions and policies. What could make the rating go down: ongoing structural imbalance resulting in draws on reserves. The report is saying it is good to remain liquid with cash in the bank, keep the fund balance and reserves high. Another item that would make the rating go down is material declines in tax base and demographic profile. He said it is important to continue to recruit industry and develop strategies and close the difference in the demographic per capita income. The last item to make the rating go down is significant new debt. He said there is a significant difference in the rate of increase of property tax revenues and sales tax increases. The County must be careful about significant new debt, without a significant rate of increase in property tax, a large portion would be repaid by sales tax revenues. He feels the economy is still highly volatile Commissioner Ken Robertson commented that it is rumored when different departments or agencies are at the end of the budget year, they "blow" through the money just to spend it. But, he feels it has never been that way in Iredell County. If the money is not spent it has been returned and goes to fund balance. Because of the Board actions, good leadership at the department head level and other staff to spend the least amount of money for the most value, the fund balance has remained healthy. Planning Division Memo: County Manager Ron Smith distributed a memo from Planning Director Matthew Todd. He said, recently there have been a lot more activity from the land use perspective with more rezonings over the last several months than the last several years. There have been many questions dealing with conditional zoning. Based on that, he asked Matthew Todd to clarify and answer questions about conditional zoning which can be found in the memo. 9 May 6, 2014 Iredell County Development Services PLANNING DIVISION PO BOX 788, STATESVILLE NC 28687-0788 349 N. Center Street / Building Standards Center (704) 878-3118 / FAX 928-2025 MEMORANDUM TO: Iredell County Board of Commissioners FROM: Matthew Todd, Planning Manager DATE: April 24, 2014 RE: Iredell County Land Development Code and Conditional Zoning Due to the recent discussions and questions about rezonings that have come before the Board I telt it might help to give some clarification on why the Planning Division has made a shift away from recommending conditional zoning requests. In 2011 the Iredell County Land Development Code was adopted and made effective for July 1 of that year. This document was completed in-house and took over a year of work. This document was a complete revamp and combination of several existing documents into one consolidated Code. One of the primary objectives in creating this code was to put in place requirements that could limit the amount of conditional zoning that was occurring. Typically, the same laundry list of conditions were placed on most rezonings. Staff reviewed the most common conditional requests and implemented many of them within the code. Many of the items were already required in the River Highway and Brawley School Road Overlays, but are now covered on other roads of importance in the County. The following is a list of some of the things that were changed to help limit the need for conditional zoning. • Screening along front property line - This provision is known in the code as the Landscape Roadway Yard and required along any road classified as a minor thoroughfare or higher. This would include roads such as all US and State Hwy's plus roads such as Brawley, Old Mountain, etc. • Parking locations - On major thoroughfares (alt US or State Hwy's) a minimum of 60% of parking spaces must be located in the rear or side yard. • Signage - Was changed to be based on road classification and not zoning district. This creates consistency of signage requirements within the ordinance between businesses that may be allowed in different zoning districts. • Access Management - Established minimums for driveway ingress and egress points to help alleviate concerns over impeding traffic flow by eliminating excessive stops and starts for through traffic. • Future right-of-way- Established that structures, parking lots or internal drives shall remain clear of any future right-of-way identified either on the TIP or CTP. If I can be of any assistance or if you have specific questions about this process please let me know. County Manager Ron Smith submitted the following Budget Message for FY 2015: I began the process of developing the FY2015 budget with great anticipation. If you travel around the southern end of the County you see the tell-tale signs of a strong economy. Housing starts abound, new retail stores are under construction, and heavy traffic around the commercial centers are indicators of citizens spending money and contributing to the local economy. But as the budget process began I quickly found out that this was not exactly the case. Development is increasing, although we are not seeing a significant increase to the tax base. Sales tax revenues are up; however such a cyclical funding source is unreliable and easily influenced. And the cost of providing quality services to our residents, the taxpayers of this county, continues to rise. So, my enthusiasm was dampened and we got to work on a stable, low growth budget proposal for your review and approval. 10 May 6, 2014 Fiscal Year 2014 brought us major accomplishments and equally major concerns. Over this last year we have found efficiencies in the merging of our development departments, consolidated a significant amount of debt (saving the County over $2.5 million over the next ten years), put in place contracts and funding formulas for all the rescue squads, and paid the startup loan to EMS Specialty Services back to the General Fund two years early. At the same time we have dealt with the adverse effects of NCFAST in Social Services and struggled with the rising costs of health insurance, both of which will continue as long term issues that need attention. All in all, fiscal year 2015 will likely be similar to FY2014. There are few major changes from this year's budget, other than a proposed increase to the schools, increases to our health insurance fund and dedicating a significant amount toward future and long term needs. Revenues Major revenues for FY2015 are projected to be relatively flat. Total real property values are expected to increase by 1.41% while personal property values are projected to drop by 10.45%. The decrease can be attributed to the changeover in motor vehicle tax collections and significant changes in our personal property tax base based on depreciation and the loss of valuable property. The net effect is that total ad valorem value is expected to decrease by just over $160,300,000, accounting for FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY2014 FY2015 Proj Proj $388,255 less in tax revenue. Conversely, this year we have seen a strong rebound in our sales tax revenues. Today, we find a 7% increase over this same time last year. This is a good sign and based on this we are forecasting a 15% increase in sales tax revenues over this year's budget for FY2015. Although this is an increase it must be noted that sales tax revenues account for roughly 18% of our overall revenues, while the property tax amounts to over 60%. So although we are seeing significant increases in sales tax revenues they have a lesser impact on the overall revenue picture than the property tax (graph 1). May 6, 2014 Expenditures I am proposing a 2% increase over last year's budget. This growth is lower than recent years as we have steadily come back from serious cutbacks in FY2010 (see graph 2). The majority of the expenditure increases are found in several areas, some within our control and some not. Graph 2. Total General Fund Budget $120,000,000 F' $165,000,000 $160,000,000 $155,000,000 $150,000,000' $145,000,000'' $140,000,000 F' FY FY FY FY FY FY FY 2009 2010 2011 2012 2013 2014 2015 Iredell County's budget is Graph 3. Funding by Group usually heavily influenced by $80,000,000 contributions to $70,000,000 education, public $60,000,000 safety, and human $50,000,000 services. These three $40,000,000 categories comprise over 84% of the $30,000,000 - general fund budget. $20,000,000 -------- -------- -------- -------- -------- -------- -------- Therefore, significant $10,000,000 -------- -------- -------- -------- -------- -------- -------- requests by these $0 r, t....,. Vim,,,,, ,,,, , . ...nit x..st mmmmstailhs agencies can have a FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 major effect on General Government —6—Public Safety operations. We strive ...O—Development Services — Human Services to keep the budget —,—Cultural & Recreation — Education balanced from an Debt equity perspective and keep those percentages relatively stable year-to-year. This year is no exception with those three categories rising by under one percent collectively (graphs 3 and 4). 12 May 6, 2014 Next year the County is projected to see an 18% increase in the cost of our health insurance. We plan to cover this increase through an 18% increase in our county contribution while also charging an 18% increase in the premiums for all but individual -coverage only employees. We are taking actions to drive these costs down but it will be a long term fix. Education s endin = Graph 4. Fiscal Year 2015 General Fund Budget Proposal p b comprises over 44% of the general fund budget. This year I am proposing an overall increase of 2.61%, or almost $1.4 million, to the Iredell-Statesville Schools. This includes an increase to their current expense budget of over $760,000, bringing their per pupil rate up from $1,378 to $1,425. The same rate will also apply to the Mooresville Graded School District, however it will result in a 5.43% increase in current expense funding due to an increase in students. The overall increase to MGSD is 1.69% or just over 5237,000. The overall increase to Mitchell Community College will be over $109,000 or 2.38%. Spending on education has continued to stay consistent, as a percentage of the overall budget, over the last five years (graph 5). In 2015 1 am proposing an up to 3% merit -based raise for employees. This will be administered at the time of their yearly evaluation and would be a permanent increase in their salary. We continue to lose good, experienced people and we need to make every effort possible to keep them. Combined with an increasing turnover rate and the cost of training and equipping new employees make this a sound decision. Through this budget process we received requests for over 20 new employees. Of that number, I recommend adding five full-time positions in general fund departments and three in our non -general fund departments of Solid Waste and ICATS. For the most part the recommended positions are either planned to pay for themselves or are essential to the completion of a necessary 13 May b, 2014 service. We continuously strive to find ways not to expand the workforce, however sometimes it does make sense to do so. The full-time positions recommended in the budget proposal include two in the Department of Social Services to deal with the conversion of Medicaid programs into NCFAST; one in Tax Administration to assist both the with the upcoming revaluation and as a crossover between assessment and collections; one bailiff in the Mooresville office of the Sheriff, and a full-time veterinary position at Animal Services and Control. The non -general fund positions will assist ICATS in complying with new federal standards and in Solid Waste those positions are geared toward succession planning. Aside from costs associated with education and employees, facilities can be of the largest expenditures in our budget. In the coming year I am proposing to add just over $200,000 to our building maintenance fund, which covers most of the major repairs and renovations for the County's facilities. In addition, I propose we include $250,000 in a future capital project fund to begin building our reserves for future needs. Admittedly, some of the recommended cuts were made to offset future needs for capital improvements or in anticipation of future spending. Hopefully, this approach will allow us to move forward without apprehension toward addressing future needs. Because of the slow -growth pattern that is anticipated I am proposing we allocate $1.5 million to be directed to the fund balance for future needs that may not be able to be carried by natural revenue growth. If the Board decides to move forward with the expansion of the jail this could lessen the potential debt service it would take to fund the project. Keeping an Eye on the Horizon Preliminary estimates of the 2015 revaluation indicate that the property tax base will continue to grow at only a minimal rate. The County's development departments are not seeing a significant amount of growth, of a noteworthy scale, to break the overall slow growth pattern. Home values from Statesville north are remaining stagnant, which offsets the growth somewhat in the southern end. There are many entitled lots in the Troutman area, however, according to the Town there is a 5-7 year build out in those subdivisions. I feel the revenues will follow when more, significant development begins to come out of the ground, but this new development will bring its own issues. 14 May 6, 2014 Through this year's budget we received $169,076,903 in requests and of the number $167,274,985 has been recommended for approval. I have tried to balance current needs with the need to also prepare for the future. However, as we approach budget amounts similar to previous years it is possible that we have leveled out to some degree, as our requests are not as high as last year and generally mirror our revenues. Graph 6. General Fund Revenues vs. Requests 175,000,000 170,000,000 165,000,000 160,000,000 1111 Revenues -- - 155,000,000 `" ■ Requests 150,000,000 145,000,000 FY FY FY FY FY FY 2015 2009 2010 2011 2012 2013 2014 Recommendation Based on the information in the preceding message and to complete my obligation under G.S. 195-11, I recommend that the Board of Commissioners approve the proposed FY2015 budget of $167,274,985. This will keep the current tax rate at 48.5 cents per $100 in valuation and is based on a tax base of $20,946,200,000 with a collection rate of 97.36%. The fund balance on June 30, 2014 is estimated to be $39,093,018, which is 23.37% of the recommended budget. CLOSED SESSION (None) ADJOURNMENT: MOTION by Chairman Steve Johnson to adjourn the meeting at 8:30 p.m. (NEXT MEETING: Thursday, May 8, 2014 at 5:30 p.m. in the Iredell County Government Center, 200 South Center Street, Statesville, NC) VOTING: Ayes — 4; Nays — 0. Approval: 15 Clerk to the Board