HomeMy WebLinkAbout5-9-12-2016 Budget Session MinutesIREDELL COUNTY BOARD OF COMMISSIONERS
SPECIAL BUDGET MEETING MINUTES
May9&12,2016
The Iredell County Board of Commissioners met on Monday, May 9, 2016, at 12:00 PM,
in the South Wing Conference Room of the Government Center, 200 South Center Street,
Statesville, NC.
Board Members Present
Chairman James B. Mallory III
Vice Chairman Marvin Norman
Tommy Bowles
Steve Johnson
Ken Robertson
Staff present: County Manager Ron Smith, Finance Director Susan G. Robertson,
Assistant Finance Director Deb Alford, Budget Analyst Susan Cornell, and Clerk to the Board
Retha Gaither.
CALL TO ORDER: Chairman James Mallory reconvened the meeting from Tuesday,
May 3, 2016.
County Manager Ron Smith introduced Katie Ayers a Political Science Major and intern
from UNC -Greensboro. She will be shadowing in each department during the summer.
Smith turned the session over to Finance Director Susan Robertson.
Finance Director Robertson said everything is on target as predicted. The estimated
undesignated fund balance at June 30, 2016, is $38,442,700. There was a $5 million appropriation
from fund balance to the jail capital project fund. Revenues are as expected but disappointing with
sales taxes. The recommended budget is S 190,382,760 with the fund balance at 20.19%. With the
$696,905 assigned to the Future Years Jail Operations, the total will be $1,775,000 in reserve to
transition to the new jail.
Chairman Mallory asked to clarify that the multi-year estimates and anticipated fund
balance will dip down to approximately 18%.
Finance Director Robertson said that is correct. New positions recommended for FYI are
as follows: one in Finance for Purchasing, two in the Sheriff's Department, eight new paramedics
in EMS to transition all bases to 12 -hour shifts, one in Environmental Health, five in DSS (all are
at or more than 50% reimbursement) for a total of 17 new positions in General Fund Departments.
Commissioner Robertson asked about fluid movement of DSS staff in relationship to the
demand of services.
Smith said verifications have become more difficult because of NC FAST which is another
layer of complications on DSS. They had to create a flexible schedule in order to access NCFAST
during less demanding hours. The Director is really good to shift duties to 611 a need in staffing.
May 9 & 12, 2016
Chairman Mallory stated that much of the personnel demand is driven by neglect and abuse
cases that doesn't bear a relationship to the unemployment rate. DSS will be shifting some
employees to the Government Center South to provide more convenient services to that area.
Smith said the DSS Director will take staff from Statesville to move to the Mooresville
office. The Statesville office is overcrowded.
Chairman Mallory said most of that is due to paper. However, they are in the process of
digitizing records.
Smith said the State does not make it easy to hire and/or retain employees. They have to
approve each potential candidate at DSS. He mentioned a letter from the Fire Service which
endorses the need for additional EMS employees. The transition from 24-hour to 12 -hour shifts
was not done all at once. A truck at Statesville and a truck at Mooresville was shut down at night
and the Rescue Squad was seeing a lot of standbys. Blair was able to help the rescue side with
scheduled changes but the Mooresville truck needs to be active again.
Finance Director Robertson said there is one position recommended for Solid Waste.
Commissioner Bowles asked if EMTs are working toward paramedic status.
Smith said EMS Administration is trying to get everyone to paramedic level.
Finance Director Robertson discussed the Capital Outlay Requests. Some departments
were able to hold for another year and some departments had some unspent funds in the current
year that could be used for those requests.
Commissioner Johnson questioned the need for a wave runner in the Sheriffs Department.
He feels a less expensive model would be sufficient. He asked how Parks and Recreation would
be using a new truck. If it is to pull a trailer then a'/4 ton would be necessary but if it is for
maintenance then they would not need a 3/4 ton. He stated that Ford trucks are having issues with
spark plugs and suggested to stay away from Ford trucks right now.
Smith said he believes it is needed to pull a trailer.
Commissioner Bowles asked if a lot of used vehicles were purchased.
Assistant Finance Director Deb Alford said yes, they do buy used for the landfill.
Commissioner Johnson suggested rotating trucks from other departments even if it is done
prematurely. That ensures that the vehicle was well maintained.
Finance Director Robertson said the overall increase in General Fund Expenditures is
2.95%.
Commissioner Robertson stated that Cooperative Extension has lost several agents and
some agents are being shared with two or three other counties. Most of the time when the State
cuts a position the Board has not tried to fill it. However, he believes this Board should take a hard
look and consider working with Coop Extension. This Board should be prepared to make the
decision to fund the positions and that person would work for Iredell County only.
Finance Director Robertson explained the net county funds are revenues that are not
assigned or earned or specifically restricted to a specific use. Comparing this year to last year the
May 9 & 12, 2016 2
budget ends in the same balance as seen in the last few years. In FYI 54.95% of the budget was
for education and this year the recommendation is 55.54%. She explained that Medicaid Max funds
have always been received for the Health Department. Those have been held has a designation in
the fund balance because it was understood that Medicaid Max funds could not be spent on
anything except for the programs in which they were earned. After some research, it was
discovered that it is county money. Therefore, it is proposed in this budget year, a certain amount
of county funds must be budgeted as "Maintenance of Effort" which is now $3.5 million. Keep
$750,000 as a reservation of fund balance and the remaining would be moved to establish a capital
project fund for a new health department building. The baseline "Maintenance of Effort" that must
be spent in county funds is $3,062,300. Currently, there's about $2.3 million that could be moved
to a capital project fund leaving $750,000. Money is received each year but the amount varies due
to when the DHHS audits the program. They send additional funds to maximize what was earned
for providing a service. As funds are earned during the year the account will maintain what is
needed to operate the program and the excess will be moved to the Capital Project Fund.
Smith said the time is coming to take a good look at the Health Department in terms of
building, location, etc. DSS and Health serve the same clients which seems logical to put these
two departments close together.
Chairman Mallory asked the estimate of money received annually.
Finance Director Robertson said it varies but approximately $750,000 to $900,000 per year.
It was the general consensus of the Board to proceed with moving this money to a capital
project fund.
Commissioner Johnson suggested to think about the location now, because property will
be more expensive in the future. This should be an item for the Fall Planning Session.
Finance Director Robertson explained how 10 of ad valorem tax is spent — 55% for
Education, 15% for Sheriff and Jail, 9% for DSS and Health, EMS 3%, Library 2%, Facility
Services 4%, Economic Development 2%, Tax Administration 2%, Capital Improvement I%, and
Other 7%. General Fund Expenditures by Function "Net County Funds" are spent as follows:
Education 55%, Public Safety 20%, General Governmental 11%, Human Services 9%,
Cultural/Recreational 3%, Capital Improvement 1%, Debt Service 1%, Facility Improvements 0%,
and Planning & Development I%. In property valuations there is an estimated 1.77% increase in
real property and 10.34% in personal property with the majority in motor vehicles. There is a slight
increase in public service companies for a total taxable value increase of 3.26%. There were over
31,000 building permits issued last year but only 9% of those permits pertain to things that would
change valuation such as new construction, demolition, and swimming pools. The only tax rate
increase requested is from Mt. Mourne Fire Department for 1.02% which equals 6¢.
Commissioner Robertson asked the reason for that request.
Commissioner Bowles said it is for staff.
Commissioner Johnson asked how much discussion has been concerning the subscription
fees for the fire departments to participate with UASI.
Smith said Mooresville has made the decision to go with UASI. The VIPER direction is
not viable for them in that they cannot communicate with the public works departments. The south
May 9 & 12, 2016 3
end fire departments are tied in with Mooresville. It will cost, but Iredell County doesn't have
much say in the process.
Commissioner Johnson asked if state grants are forfeited if there isn't just one system.
Commissioner Bowles said that is the radio system, not a PSAP (Public Safety Answering
Point). The fire departments have included it in their budgets assuming the County will pay for it.
The UASI is a Charlotte regional system and they feel if anything catastrophic happens they will
be included. They feel UASI has more flexibility in talking to other departments. Basically both
radio systems will be there.
Commissioner Johnson expressed concerns about losing grant money.
Smith doesn't believe it will jeopardize grant money, it is more about consolidating
dispatch or PSAP. He feels the County will still qualify.
Commissioner Bowles stated the ECOM Director had said it was possible to have two radio
systems but shouldn't have three. The VIPER and UASI is doable. The south end feels they need
to communicate with Charlotte in the case of a catastrophic event.
Commissioner Johnson asked for a prediction on sales tax for the next year.
Finance Director Robertson said the overall increase for sales tax is 5% over what was
projected for this year, not 5% over what was budgeted. It appears sales tax will be about $1.5
million short this year. June's sales tax will not be received until September, so therefore, it is a
guessing game.
Chairman Mallory asked about on-line sales.
Finance Director Robertson said face-to-face retail sales are down and believe it is just due
to consumer reluctance. It is estimated there will be 434 foreclosures in this fiscal year, but last
year there were only 297, which is a 45% increase in foreclosures. There were 163 bankruptcies
and are estimating 190 this year which affects taxes.
Chairman Mallory asked how the state proportioned the sales tax revenues.
Finance Director Robertson said it is on per capita basis. Iredell County does not
necessarily receive from Iredell County citizen's on-line purchases. The new taxes on services is
given to the poorer counties and Iredell does not receive any of those revenues. The State kicked
in about $17 million over what was expected to be received from the expanded base and Iredell
County will receive a small portion but the net effect is that Iredell loses money.
Commissioner Johnson cautioned that the number to review is the rate of increase in
consumer debt as compared to the rate of growth in real wages. Currently that number is zero,
which means it is the end of a business cycle. Fiscal policy can change but monetary policy can't
change because you can't go lower than zero.
Finance Director Robertson said food prices have not gone down, actually they have gone
up which is taking the savings that many households had from the decreased fuel prices. There
isn't much sales tax on food.
May 9 & 12, 2016 4
Commissioner Robertson stated the when the bubble burst, almost 1% of the GDP (Gross
Domestic Product) growth was due to consumers making home equity loans to purchase vacations
and not durable goods.
Commissioner Johnson said another number to look at is the FIRE Index (finance,
insurance, and real estate). When that number becomes 25% of the gross disposable product it
means it is the end of a business cycle. That number is currently at 26%.
Chairman Mallory recessed the meeting for five minutes.
Education:
Iredell Statesville Schools: Board of Education Chairman Dr. David Cash thanked the
Board for this opportunity.
Superintendent Brady Johnson thanked the Board for the long term commitment to
education and support for the 21,000 families in Iredell County. In celebration, Cool Spring
Elementary moved into their new building last week. There are still plenty of mobile units and
earth to move to make parking lots which will happen over the summer. The ribbon cutting is
planned for August, 2016. G. L. Wilson is ahead of schedule and under budget. In building the
budget they used 2009 as a benchmark. Currently, there are 300 less students, 136 less teachers
and 128 less teacher assistants. The graduation rate went down a few points but they are working
on bridging those gaps. The budget requests a 6% increase. This is the first year that the A -F Report
Card has impacted this district. There are six schools with a D or F rating, therefore, $600,000 has
been budgeted for the low performing schools. They are also asking to restore the local supplement
to the employees. Currently teachers are at 6% supplement and if approved it would be a 6 3/4%
supplement. The classified employees receive 4.6%. There are 20 maintenance positions vacant
and the budget addresses restoring those. Also, instructional technology positions. There are 21
charter schools which is an increase from 12 the year before.
Commissioner Bowles asked the game plan to recover a failing school.
Superintendent Johnson said they will discuss it with the school improvement team and
tailor the funds to specific needs. Different schools want assistants in the class room, reading
specialists, or behavior technicians.
Chairman Mallory said the grade is driven by a system focused on performance and not
improvement on performance. He asked if the money is being spent just because someone tacked
on a grade or if there really is a need to address.
Superintendent Johnson said it is both. There are children that are behind for multiple
reasons. There is a direct correlation between children in low performing schools and the poverty
rate. Labeling schools has done a disservice to the employees of that school. NB Mills was graded
F but 100% of the teachers have met or exceeded growth targets set by the State, which is very
impressive. The grading of these schools scare parents to the point they leave and go to charter or
private schools. It also creates challenges to find people willing to work in those schools.
Chairman Mallory said you can throw dollars but there is a point of diminishing returns. If
they are doing the most they can do then there won't be an appreciable difference just by throwing
dollars. However, the community can acknowledge the success of those teachers and
administrators in those environments to counter act those arbitrary assessments.
May 9 & 12, 2016 5
Superintendent Johnson said he did not want to give a false impression that there isn't a
need in most schools. The need is tremendous and there is a lot of turnover in those schools. At
NB Mills, 25% of the students will not be there in June to take the test. The families are very
mobile and move around a lot. Many of those children have issues outside of the classroom that
would benefit from extra counseling, nurses and social workers. Many kindergarteners begin
school years behind students from the upper or middle class families. Money may not be the
answer to a lot of things, but the teachers will say they have a need.
Chairman Mallory said that target population exist in all schools and the focus should be
placed on those children no matter what school they are in. He stated that if a quarter percent
supplemental rate increase was given every year it would take about eight years to get back to the
pre -recession amount.
Superintendent Johnson said they would like to move faster than that. ISS is only proposing
this year, conservatively, to bring back a quarter, but they would like to move faster if possible.
There are 2,700 employees and a quarter cent is a lot of money. The supplement rose to eight
percent over a decade moving very slowly a quarter or half cent at a time. NC has taken strides
with beginning teacher pay. ISS teacher pay dropped to about 48`h in the nation. Beginning teachers
were making about $32,000 per year when all neighboring states were paying much more. The
General Assembly has addressed that and beginning teacher pay is about $35,000. There are many
career teachers who will never make over $50,000 in their entire career. Therefore, there is a
teacher shortage. They are hiring many more lateral entry applicants. This means the applicant
does not have a state license. They may have a bachelor's degree in content but they have never
spent one day training as a teacher. There are more than a 1,000 classified employees who work
for poverty level wages. These are bus drivers, maintenance workers, teacher assistants, cafeteria
workers, etc. The State of North Carolina has not touched their salaries. More and more employees
are taking second jobs or moving to neighboring counties who pay better. A quarter percent is not
a lot but it would be a symbolic message to the employees that they are trying to begin to rebuild
the supplement.
Commissioner Robertson said a lot of money and effort went in to putting laptops in the
classroom. He asked if it had been worth it.
Superintendent Johnson said it is the second full year of that program and feels they are
heading in the right direction. The teachers are more responsive to the students. One teacher
records portions of the instruction so that students can view it again on-line if they have problems
when they get home. There has been a loss of text book funding for years. It has dropped from $75
per child to $15 per child. There are lots of free material on the intemet and children today prefer
to learn electronically.
Commissioner Johnson asked about the sustainability of the laptop program. The
agreement was an increase of $600,000 annually for a period of three years which would total $1.8
million and then the program would cash flow. After some research, he feels the resale prediction
was a too optimistic. He asked if the plan had been adapted to correspond to the market.
Superintendent Johnson said they have adapted the plan and will be using the devices
longer than initially thought. At the national level three years is the rule of thumb, but this is the
second year of full implementation. They feel they can get another two years with the devices
which will make the devices four to five years old before having to refresh. The sustainability plan
May 9 & 12, 2016 6
was presented to the Board of Education in February and will be brought back to them in June.
Once it is approved it will be shared with the Board of Commissioners. The plan is very solid and
will continue into the future without an undue burden on the school system.
Commissioner Johnson asked if the adjustments made are sustainable at the level of
funding agreed upon.
Superintendent Johnson said he feels the $600,000 is sufficient. ISS realizes that they will
have to stick with and live up to the budget. When they decided to become a one-to-one district
they realized there would be sacrifices in other areas and are willing to make those sacrifices to
sustain the technology plan.
Commissioner Johnson expressed his concern about maintaining the integrity of the
sustainability plan. The temptation will be to divert other capital moneys to the program. He does
not want the buildings neglected.
Superintendent Johnson said he would not allow that to happen. The buildings belong to
the community. Parents want the buildings to be safe and functional for their children. Therefore,
ISS has great facilities and they are well taken care of. There are needs but the buildings will not
be sacrificed for technology.
Commissioner Johnson encouraged ISS to stay well ahead of any issues. If they discover
that the sustainability plan is not working, then the Board of Commissioners need to know as soon
as possible. The Board may be able to help if the Board knows in advance.
Commissioner Bowles asked if the grants were over.
Superintendent Johnson said they are running out. This year they have corresponded with
the Feds and they have a one year extension on the technology grant. Cuts at the federal level mean
there are not as many grants as there used to be and the amounts have decreased.
Commissioner Robertson feels that parents should be willing to come in and help.
Commissioner Johnson quoted author John Levine who said that public education is one
of the few endeavors in the culture today where productivity has actually gone down over the last
generation. Levine said 100% of the loss in productivity is contributed directly to federal and state
regulations. Despite the fact they have implemented technology and despite the fact of
improvement and best practices in teaching they are barely treading water. He feels the best thing
that can happen in public education is deregulation. ISS knows more of what students need than
bureaucrats in Washington. In spite of all the efforts to reform there are still three departments to
deal with... Department of Public Instruction, the State School Board and the State Superintendent.
He congratulated Brady Johnson on his efforts but so much of the money is consumed in
complying with regulations. He spoke directly to Dr. Cash and said they may not have agreed on
everything but he never questioned his (Cash) integrity or commitment to the school children in
this county. Johnson expressed his respect for his (Cash) efforts and honesty. On a personal level
he felt they communicated well, open and honest. He quoted John Calvin, who said "You can tell
character by what you do in the dark and what you do for people who never know you." Dr. Cash
has presented those qualities.
May 9 & 12, 2016
Superintendent Johnson said they are being very sensitive to the rebuilding of the American
economy in the school system. The STEM program initiative is important and they are reaching
out to the community for assistance.
Assistant Superintendent Dr. Kenny Miller presented the traditional capital outlay budget
and a three year staggered option. There is a back log of facility needs. If rated, facilities may rate
a B on the surface, but underneath there are needs. Eighteen hot water heaters have been replaced
this year. The capital budget has been impacted by large maintenance repairs rather than equipment
replacements. Instead of replacing the chiller they replaced a compressor which may run $15,000
as opposed to a new chiller at $120,000.
Superintendent Johnson said the idea presented by Dr. Miller is worthy of a discussion at
a later date because it may actually save tax payer money. (Re: suggesting $10 million debt for
maintenance items.)
Chairman Mallory said any play in the budget is predicated on the anticipated increase in
revenues. He expressed his appreciation to the superintendent and staff who created different
educational options, all of which are responding to the needs of students and parents. He suggested
to look forward and not backward. In the next ten years, take a look at the structure to manage and
deliver the programs and how the organization can change in culture relative to the regulatory
burden. As managers, the Board can help filter and come up with common sense solutions that
apply in Iredell County. What ISS has done with the ACT initiative and linking educational outputs
with the desired business outcomes for students to be employed is highly commendable. It needs
to be understood, that is the future and take a look at the structure to manage and deliver that
product effectively and efficiently. If there is a contract to consider, then is ISS optimally
structured? He expressed that he would personally be willing to invest to ensure high speed and
low drag. He stated that computers are capital expenditures. Lifecycle replacement is a capital
expenditure, not current expense. It is managed differently and should be in that budget column.
Mooresville Graded School District: Board of Education Member Greg Whitfield
addressed the Board and expressed his appreciation.
Superintendent Dr. Mark Edwards expressed his appreciation to appear before the Board.
For five consecutive years MGSD has ranked in the top three in overall academic achievement in
the State. Mooresville is seeing growth. Houses are selling unbelievably fast. They enrolled more
students the week after spring break than the previous five years combined. Along with that growth
is the need for new teaching positions. Another thing is the strong alternative education program
called "My Way." It serves about 60 students, who most likely would have dropped out of school.
They attend classes at Woods with special programing. The graduation rate for that program is
95%. The graduation rate is consistently among the top in the State. Currently it primarily serves
Juniors and Seniors but they are seeing middle school students that need alternative programing.
Currently, MGSD does not have a full time nurse in every school. They've been trying to add one
nurse position, and one roving custodian. They anticipate a salary increase for teachers but nothing
for non-certified employees, which is roughly half of the K-12 employees. The summer conference
is sold out and that revenue is used for professional development. They need salary increases but,
typically, raises mean cuts in other areas. Top priority is teacher salary increases but there are other
needs. The construction is on time and within budget. He complimented County Manager Ron
Smith and the good working relationship with him and all of county government.
May 9 & 12, 2016 8
Chairman Mallory asked about the turnover in teachers.
Edwards said they aggressively recruit. Science and Math are challenging and there is an
opening in science right now. They are seeing fewer and fewer out of state applicants. Anyone that
can retire is retiring. The teacher of the year, taught for 17 years, and has resigned to work for a
trucking company because of salary. Some teachers have left to work in other states where pay is
better. College enrollment for educators is down by 30-35% across the State.
Commissioner Bowles asked about the sustainable plan for replacing laptops.
Edwards said they built a ten year plan, nine years ago, within the operating budget. It was
built specifically to the operating budget. There have been two refreshes over that period of time
and they've experienced good luck with selling the machines. There is a sustainable long term plan
both for the devices and the wireless infrastructure. They have become dependent on that resource
and have seen corresponding achievement results with it. The struggle is not with the devices or
with the technical infrastructure but with human capital in providing professional development.
They do not receive any funding from the state for professional development. The money raised
from the summer conference is used to pay teachers to come in during the summer for professional
development. They've had good luck with the sale of their devices which goes toward the leases
of new machines. The machines are used for four years plus they encourage students to take good
care of them.
Chairman Mallory asked about putting this in the operating budget which is contrary to
normal business practices. He feels there is more flexibility in capital budgets than with per pupil
allocations based on the funding scheme.
Edwards said the wireless infrastructure is in the capital budget. In terms of operational,
they no longer purchase text books or materials. All of which is digital now. The model is to spend
$200-$250 per pupil every year to cover the hardware, the content, and professional development.
That enterprise supports students and parents at home as well.
Commissioner Johnson asked the anticipated impact on the current expense operational
budget once the construction is complete.
Edwards said stopping the bus run between the high school and NF Woods would realize
approximately $100,000.
Commissioner Johnson asked if the square footage of the operational space will be
increased.
CFO Terry Haas said yes and that the shuttle drivers will become custodial.
Commissioner Johnson asked the actual operation costs of the building, i.e. lights,
maintenance, etc.
Haas said they believe the savings of not running the buses will be offset by the increased
cost of the square footage.
Edwards said real efficiencies will be in instructional time. Students are on the buses
multiple times a day. There will be 40 new class rooms.
Commissioner Bowles asked if the enrollment at MGSD has ever gone down.
May 9 & 12, 2016
Edwards said no.
Vice Chairman Norman asked if charter schools had affected MGSD.
Edwards said there is some affect, but the charter school students who live in Mooresville
never went to school in MGSD.
Commissioner Bowles asked if the next big project would be an elementary school.
Edwards said the facility plan has a middle and elementary school. They have purchased
property for both. They expect to hear complaints from parents within the next 24 months about
building a new school.
Commissioner Bowles asked if they were going to close Magnolia Street.
Edwards said they have researched the cost of a bridge, tunnel, and/or crossing guards.
They have settled on crossing guards. The City's rules will not allow a complete shut -down
because of emergency vehicles.
Chairman Mallory asked about tracking students after graduation and if the business
community's needs are being met.
Edwards said they have a software called Naviance which has been a catalyst for increased
scholarships and can track those students. Another program called Next Tier is being researched.
This program tracks all students. He feels they could benefit from more formal data, but feedback
from employers indicates they are very pleased with the quality of graduates. They just completed
mock interviews with 800 students. Employers want good attitudes, hard workers, be on-time,
work well with others and MGSD try to create the conditions for the students to think beyond.
Mitchell Community College: President Tim Brewer introduced John Wilkinson,
Maintenance Supervisor.
Commissioner Johnson said it is usually some type of maintenance that catches everyone
by surprise. He asked if there are any current needs that have not been acknowledged.
Wilkinson said they set aside funds for the chiller and need to prepare a three, five, and ten
year plan for all the buildings. The main building will need some updating. Director of Facilities
Lackey went through with contractors and created a roofing report last year. They did the same
thing with all of the houses owned/used by Mitchell. A capital request from last year is to install a
generator in the Student Service Center which will be completed this summer. The first phase of
Life Safety is a combination of fire alarms, tamper -proof sprinklers, and a mass notification system
which will also be completed this summer.
Commissioner Johnson asked the cost of a chiller if it had to be replaced.
Wilkinson said the most expensive one is $250,000 and then the next size down is about
$200,000.
Brewer said an engineer reviewed the structure of the main building which is 35,000 square
feet. Currently it is sound but there needs to be a plan. There may be historical challenges when
making repairs. A full study, with estimates, has been done on all the old homes and structures.
MCC received $3.2 million from the state. Plans for those funds are to renovate the gym in
May 9 & 12, 2016 10
Mooresville to potentially include closing in the courtyard that is adjacent to it. That will allow
some additional office space for business and administration.
Wilkinson said plans include reconfiguring the first floor and the front. Enclosing the
courtyard will allow a much nicer ramp to the first floor. The estimate is $1.8 million.
Brewer said there would be more classroom space. Mooresville has grown. Also, in
thinking about the future, the Mooresville campus is land locked and land purchases need to be on
the radar.
Chairman Mallory asked about limitations placed with the State bonds.
Brewer said they could not use any for land purchase. Anything done had to have a match,
and/or had to be used for a state project already approved. The funding was set on a tier funding
process. The lower tiered counties received more money. Iredell is Tier 3. It was also based of
FTE. The largest restrictions were that it couldn't be used for new construction unless there was a
match.
Commissioner Johnson asked if there was a sunset on spending this money.
Wilkinson said June of 2022.
Commissioner Johnson feels it is impractical to do anything immediately adjacent to the
property in Mooresville.
Brewer said they may have to think outside of the box in the long run. The Mooresville
campus has not reached its maximum but it will eventually. They have been creative with
scheduling and weekend classes.
Chairman Mallory asked about the overall enrollment.
Brewer said enrollment is down. They look at two numbers — headcount and FTE. FTE is
down between 5 and 6 percent fall to fall. This year they realized about a $1 million deficit over
last year. The head count has stabilized which means that when the economy is bad, the enrollment
spikes as seen in 2013. In 2008 there were 2,800 students and peaked at 4,100. Currently there are
approximately 3,000 students. In 2008 there were 75 full time faculty, 2013 there were 96 full time
faculty and currently there are 85. Another use for the bond money is a metal building for
classroom and lab space for the agriculture program which has grown tremendously. If the Ag
program ever goes off campus the building will be converted to maintenance and facilities.
Commissioner Robertson asked if the students in the Ag program have family farms or will
they work for another farmer.
Brewer said it is a mix. There are some heritage farms but not all of them. MCC has an
articulation agreement with AT&T and another college in the eastern part of the state who is more
interested in Ag education.
Chairman Mallory said the discussion earlier was concerning filling some positions with
the Cooperative Extension. It was suggested earlier that MCC's Ag program and Coop Extension
personnel should be thinking outside the box to have this service.
May 9 & 12, 2016 11
Commissioner Robertson said this program may give the County another way of meeting
the needs.
Brewer said the remainder of the bond funds will be used for structural studies. The D.
Matt Thompson building needs renovations. Some funds will be used to off -set the cost of other
buildings. They want to renovate Mooresville.
Wilkinson said they would bring that information back to the Board of Commissioners to
map out a plan.
Commissioner Johnson suggested to keep in mind that when square footage is added it will
impact the budget down the road.
Brewer said they are still reviewing how HB2 will affect their federal funding. Over 50%
of the students received federal funding. As a whole if MCC lost federal funding it would be
approximately $33 million which is about 2% of a $4.1 billion budget.
General Governmental:
County Manager Ron Smith went through each department's budget. A theme to notice is
that increases are mainly due to salary and benefit changes. In preparing the budget, five previous
years of spending habits were reviewed. In the Election's Office it was decided to delay the
purchase of new voting machines. A new purchasing tech is needed in Finance. Operating
expenditures in Finance have increased due to the new time keeping software. The Information
Technology's director will be retiring. As mentioned earlier there will be a study of the system by
the School of Government. Vehicle Services was denied a new position and the tire mounting
equipment has been delayed. Economic Development includes $500,000 for product development.
General Governmental includes the salary scale adjustment and shift differential pay in Emergency
Services. Also, includes a pay study. Special Appropriations increase is nominal. Fort Dobbs went
from $10,000 to $20,000 to be used for construction of a new fort.
Development Services:
Smith said Building Standards was adjusted to market in March of 2016. They are
researching software to dispatch inspectors automatically. Planning Board members'
compensation was increased to $75.00 per meeting.
Human Services:
Smith said the Health Department is adding an Environmental Health Specialist and three
reclassifications. The bathroom tiles have been pulled from the budget for further consideration.
There was some discussion of whether to continue to update the Health Department or look deeper
into the potential to consolidate with the Department of Social Services. Social Services includes
five new positions with three being 50% reimbursable and two are 75% reimbursable. Also, they
have seven reclassifications.
Cultural and Recreational:
digital.
Smith said Library changes are basically in salaries.
Commissioner Bowles asked the future of the Library in regards to actual books versus
May 9 & 12, 2016 12
Smith said the numbers have dropped but they are pushing more towards computers. There
are a lot of job seekers using the computers.
Smith said Parks and Ree is putting $25,000 back to the Parks Fund. Facility Services have
decreased operating expenses. Buildings were previously pulled from respective departments in
order to better maintain and track expenditures.
Commissioner Johnson asked questions concerning the Statesville Airport under Economic
Development. The recommended budget is $168,335 which includes $25,500 for land purchase,
but it really isn't needed.
Finance Director Robertson said Iredell County was responsible for reimbursing the City
50% of the sewer line extension at the airport which was paid in full ($47,500) in December 2015.
Projects arise periodically and typically grants are received, but the City and County each pay a
5% match. Therefore, instead of making cuts for airport expansion, the difference ($25,500) would
remain in the budget when another grant opportunity was presented. However, if it isn't needed it
can be cut.
Commissioner Johnson said it really isn't needed. As Chairman of the Airport Committee
he explained the next airport project will cost $3.2 million for development, but in order to begin,
the airport will need to spend $600,000 locally for the state to fund the remainder. Design work
and property acquisition has no sunset clause. However, the actual work of moving dirt does have
a clause. Of the $600,000, the most the County could lose without a reimbursement is
approximately $55,000 which will be on the actual moving of the dirt, but he doesn't believe there
will be any loss. The leverage will be $3.2 million. A portion will go for land acquisition. In the
future, he would like to use the $112,500 to purchase 3.2 acres with a reimbursement from the
state. Take that reimbursement turn it around and apply to the improvement of the next piece of
property. Therefore leaving that amount the same all the time. Johnson said rumors are that the
FFA is pushing the smaller jets out of the hub, in Charlotte. The Airport Committee wants those
jets in Statesville because that is where the market is. Once the 3.2 acres are developed there could
be $40 million worth of airplanes parked there within six years. The vision for the airport is to
develop along the east side of the south way taxi -way, extensions of water/sewer, and a road. When
the utilities are complete and the entire side is developed for hangers it will be a ready-made
industrial site.
Chairman Mallory asked if the FFA is taking Iredell County out of the Atlanta control.
Commissioner Johnson said no, but something is changing. In regards to the appropriation
of money, Iredell has been moved out of Atlanta and into Memphis for appropriations. Aviation
DOT can't guarantee anything but feels the project will be funded by the state. The City will
contribute $112,500 and the County will contribute $112,500 per year and the Airport Committee
is contributing $75,000 per year of their discretionary design money. They will keep $75,000 for
emergencies but if it is not needed elsewhere they will contribute the other $75,000 as well.
Chairman Mallory recessed the meeting at 5:03 PM until Thursday, May 12 at 12:00 PM.
Thursday, May 12, 2016,12:00 PM
May 9 & 12, 2016 13
The Iredell County Board of Commissioners met on Thursday, May 12, 2016, at 12:00 PM,
in the South Wing Conference Room of the Government Center, 200 South Center Street,
Statesville, NC.
Board Members Present
Chairman James B. Mallory III (arrived at 12:40 PM)
Vice Chairman Marvin Norman
Tommy Bowles
Steve Johnson (arrived at 1:05 PM)
Ken Robertson
Staff present: County Manager Ron Smith, Finance Director Susan G. Robertson,
Assistant Finance Director Deb Alford, Budget Analyst Susan Cornell, and Clerk to the Board
Retha Gaither.
CALL TO ORDER: Chairman James Mallory reconvened the meeting at 12:40 PM from
Monday, May 9, 2016.
Finance Director Susan Robertson explained Debt Expenditures and Transfers to Other
Funds. Debt Service is the annual payments on debt that has been borrowed for general fund
functions. There are two outstanding with Bank of America for Government Center South and the
Department of Social Services. There is an IBM lease outstanding that pays off in FYI 8. At the
end of FYI the total debt outstanding for these general fund functions is just over $1.5 million
which will all be paid in full in FY20. The Capital Improvement Funding is recommended at
$1,533,293 with $125,000 used for the Public Safety Complex. It is recommended to transfer an
additional $337,745 into the Facilities Improvement Fund for projects identified by Facility
Services.
Smith reviewed the Capital Improvement Plan projects which includes renovations at
Government Center South for DSS offices.
Commissioner Bowles asked if the new jail would eliminate inmates at the leased annex
on Highway 21 and if so, could it be used as storage.
Smith said if the County stops using the annex as a jail then it will have to be brought up
to standards should it ever be needed again.
Commissioner Bowles asked if it could be used for the Board of Elections.
Smith said the Elections storage must be climate controlled.
Commissioner Bowles asked the number of DSS clients served in the Mooresville area.
Smith said probably 35-40%. Half of Environmental Health is there along with WIC and
other Health services.
Commissioner Robertson asked about the generator at the Cooperative Extension in FY 17-
18 and Building Standards in FYI 8-19.
Smith said the Cooperative Extension building would be used as an emergency shelter in
the event of a disaster. Currently the only shelter that can be relied on is South Iredell High School.
The generator for Building Standards is debatable and has been moved out several years. They
May 9 & 12, 2016 14
would need to do damage assessments in emergency situations but not sure if a generator is an
absolute necessity.
Chairman Mallory said a group discussion with Emergency Management is necessary to
create a long term plan for generator capacity in the event of a disaster.
Smith said the commitment is for the FY16-17 budget only and the public hearing is
scheduled for June 7, 2016.
Finance Director Susan Robertson reviewed the County Wide Fire Tax revenues and
expenditures. This year there was a 1.6% increase in valuation for the County Wide Fire Tax
District. This budget, as recommended, will result in an overall 26.6% fund balance by June 30,
2017.
Commissioner Bowles said everything hinges on the new funding model and indications
are that it will be some type of hybrid.
Vice Chairman Norman asked if the ISO money would continue to be $60,000.
Finance Director Robertson said yes, but some stations get a little more. Trinity gets
$85,000.
Vice Chairman Norman asked if that would be done every year.
Commissioner Bowles asked if it costs as much to sustain the rating as it does to achieve
it.
Commissioner Robertson understood that the 10 was to be used for buying things to get a
better rating. Once that was achieved the money would go to the next fire department that had a
plan to get to a better rating. He didn't believe the 10 was intended to sustain the rating.
Smith said things have changed with how the ISO works. The difference in ratings is not
as broad as it once was. The funding discussion needs to confirm if it is worth the money.
Commissioner Johnson said one should always remember who is sitting at the table when
insurance laws are written ... insurance companies. They tweak the law to their advantage. They
will make it harder and harder to achieve and maintain those ratings. The process did free -up some
money in the fire service for them to begin to address other legitimate needs of the community and
it has created a point of contention between fire and rescue squads.
Chairman Mallory said all of this revolves around missions and roles and allocating
resources based on those missions. Then enforcing those missions and expecting accountability,
equipment, training, etc.
Commissioner Robertson understood that when all of the necessary equipment was bought
for the improvements then the 1¢ would go away. The requests for more staff is a different
discussion concerning the penny and the Board has not had that discussion. The penny was meant
for project "A" but has been morphed into project `B."
Commissioner Johnson said the fire departments need to justify project `B."
Commissioner Robertson said the improvement of ratings has been beneficial for all even
if home owners' insurance didn't change that much. He was in favor of a well defined purpose but
May 9 & 12, 2016 15
if that purpose has gone away and now there is another purpose then the Board should have that
discussion.
Chairman Mallory believes it will be defined with the new funding model. It will be based
on the level of services required and what it takes to get to that base level of services which the
funding will be based on. Then if there are additional requests they will be reviewed and perhaps
allow the voters in those districts to have a voice.
Commissioner Bowles asked how it was presented to the fire departments in the beginning
because he wasn't on the Board at that time.
Commissioner Robertson said once all the needed equipment to get the better rating was
purchased the penny would go away.
Commissioner Bowles said that needs to be conveyed to the subcommittees that are
meeting now. It seems to be the general knowledge of the fire departments that they will continue
to get this for the ISO rating.
Commissioner Robertson heard a few years ago that they thought this money was a bonus
or reward for getting a better rating. It wasn't meant as a reward.
Commissioner Bowles doesn't believe the funding can disappear entirely because of the
maintenance of the necessary equipment. He believes a better place to discuss this would be in the
committee where the funding formula is being created.
Smith said the committee will begin in earnest as soon as the budget process is over.
Commissioner Johnson suggested to consider an alternative for the money. Maybe bank
the money until everything settles down.
Commissioner Robertson is not proposing to change it but the original intent has diverged.
Vice Chairman Norman asked the total amount of money being paid out.
Finance Director Robertson said $750,425 is recommended for appropriation next year
which leaves $16,400 unspent.
Commissioner Bowles said the funding model is the key. These are individual corporations
contracting with Iredell County to provide fire service. Once the quarterly checks are cut they can
spend it however they see fit. That is where the discretion comes in as to whether they will buy
equipment or manpower. The individual board of directors must decide the best use of those funds.
Commissioner Robertson feels it has already moved from primarily volunteer to primarily
paid
Commissioner Johnson said if there is an increasing move to full time paid fire service then
someone needs to review the justification of the existence of some of the fire stations. Are they
really needed? Can some be combined? If someone is there 24/7 the response time is greater, then
it needs to be in the conversation.
Commissioner Bowles believes there are experts on staff to make those decisions and
determine the process. The next year in Iredell County may see a paradigm shift.
May 9 & 12, 2016 16
Airport: Commissioner Johnson took a moment to share information from the Airport
meeting. He said they may have a tenant which means an acceleration of the process. This
acceleration may have an impact on what is/isn't reimbursable. The money that may be exposed
and non -reimbursable increased about $60,000. If the tenant confirms it will be well worth the
$60,000.
Public Safety Expenditures:
Sheriff: Sheriff Campbell presented an annual report which gives a path of what the
department wants to do in the future, what it has been done in the past and overall comparisons.
The educational trailer is still being built and was purchased with seized funds. It will be used by
elementary and middle school students. The volatile prescription pill abuse will be in the middle
and elementary schools. There is no SRO presence in elementary schools but there have been over
10,000 school checks without any additional cost to the tax payers. Officers went through the
schools to understand the layouts in the event of an active shooter. The report shows the officer
ratio is still the same at 1.6 deputies per 1,000 citizens which is the same as in 2005. The
department continues to have problems maintaining employees from the one to six year level. Shift
differential would be a great asset. There are two reclassifications at the patrol level status. There
is a request for a new domestic violence investigator.
Chairman Mallory asked about resources and/or strategies concerning the opioid addiction
issues.
Campbell said heroin addiction is directly driven to pharmaceutical sales. Heroin affects
the body just like pain medication which begins in pain clinics. There is a direct correlation with
prescription drugs, pain management clinics, and heroin addiction. Once the prescriptions run out
the only alternative is to go to heroin, which comes straight from Mexico, Dominican Republic,
and New York. First there needs to be enforcement with the pain clinics through legislation. There
is a state-wide system that doctors can access but it seems to be too much trouble. Iredell County's
overdose deaths are comparable to Davie County — 10 to 14 per 100,000. Catawba and other
mountain counties have much larger numbers. Fentanyl is another problem and have seen children
overdose on it. It hasn't happened within the past two years but there have been deaths from the
patches. The largest problem is Oxycodone and Hydrocodone from pain clinics. Six or seven years
ago there were probably only one or two pain management clinics in Iredell. Today there are close
to 20.
Chairman Mallory said there have been discussions about whether or not to have
individuals armed for potential response. He asked about the access denial that can be placed on
doors and whether there are issues with the fire marshal.
Campbell said it is a broad subject. The only thing they can do is have a presence. There is
a product they plan to test called RhinoWare which is a door barricade system that can be operated
by a kindergarten student. It can barricade one door from the inside but there have been some
issues from the local fire and building inspectors.
Chairman Mallory encouraged the Sheriff's Office to work with the Fire Marshal to arrive
at a reasonable accommodation to provide an additional level of security for schools.
Campbell said they have had conversations and will continue.
May 9 & 12, 2016 17
Vice Chairman Norman asked to clarify there are resource officers in the middle and high
school but not in the elementary school.
Campbell said yes, they provide officers for middle and high but not elementary. One of
the reclassifications is an officer that attended SRO training. This officer spends a lot of time in
elementary schools for mentoring and would like for him to take it county -wide. The SROs are
funded through the Sheriff's Office with a reimbursement from the school system only for the
officer in the high schools.
Commissioner Bowles expressed his thanks to the Sheriff for the commitment to Drug Free
Iredell, Project Lazarus and the task force subcommittee for substance abuse. Captain Bill Hamby
will be serving on the task force.
Commissioner Robertson asked about the efficiency of the propane conversion in the
vehicles.
money.
Campbell said he is a fan of the propane. There have been no problems and it has saved
Jail: Chairman Mallory asked about the facility on Highway 21 and the grandfather clause.
Bert Connolly said as long as inspections are up-to-date everything is good. It is not
required to keep inmates there but the inspections must be up-to-date with the State who come
twice a year. The Health Department will inspect as well.
Chairman Mallory said that may be an opportunity at some point in time as programs are
developed for the mentally ill.
Connolly said if it is used for inmates then improvements will be required. If the City wants
a high fee for the sewer hook on fee it may be cheaper to pump and haul.
Campbell said pump & haul has decreased drastically because of the repairs in the septic
field.
Commissioner Johnson said there is a cost associated with the annex even if it is just sitting
there.
Connolly said it will need to be kept climate controlled, painted, fire panel, etc. Basically
it must be maintained as "ready to use" when the inspector comes in. It is a 1930s facilities and is
far from ideal.
Commissioner Bowles asked when the lease expires.
Connolly said 2043.
Campbell said the Sheriff's Association procurement program has been successful. There
was enough savings to get leases on narcotics vehicles. It is ultimately desired to get away from
the lease at Ebenezer and use the annex for $1/per year until 2043.
The Board took an eight minute break.
The Board reconvened.
May 9 & 12, 2016 18
Public Safety/ECOM/EM/EMS: County Manager Ron Smith said the Public Safety
Administration will disband. David Saleeby will be moving to Project Management. Dennis
Hutchens will be conducting data analysis on a part time basis and he will be moving to the Fire
Marshal's Office. Animal Services is losing about $10,000 worth of donations from Wal-Mart.
There are also some additional fees in the spay/neuter program due to legislation. The ECOM
business officer position has been put on hold. It may be reviewed again in mid -year. The CAD
has been included in capital improvements. Next year will be a heavier year for ECOM. At some
point they will need an IT person on staff, especially when they move into the new building. EMS
will be hiring eight new staff to complete the eight hour shifts and get back to full coverage. They
are reviewing to make multiple remounts in the future. The part-time contractual program with a
temp agency did not work and EMS will be hiring their own part-time employees.
Chairman Mallory asked if body transport would be more efficient in-house as opposed to
contracting.
EMS Director Blair Richey said they are researching options.
Smith said EMS Specialty Services is an enterprise fund and everything is working
satisfactorily. There is a new director in the Fire Marshal's Office, Kent Greene, who also is
responsible for Emergency Management. A new truck is in the budget but they will not be looking
at the large SUV/Tahoe types. It will be a pick-up truck in order to keep all the equipment in the
back. The Outside Public Safety agencies are rescue squads. As already known, Iredell Rescue,
North Iredell Rescue and Troutman Fire and Rescue have been joined by the Mooresville
Departments that are all doing rescue. Since FYI there has been a formula based on square miles
and a percentage of population. Year to year each department is seeing an overall increase. As part
of the appropriation for Iredell Rescue, the $55,000 debt is included with the expectation they will
pay in the end instead of this year. Appropriations are: Iredell Rescue $312,505; North Iredell
Rescue $119,328; Troutman Fire and Rescue $76,579; Mooresville Fire and Rescue $70,077;
Shepherds Fire and Rescue $29,998; Lake Norman Fire & Rescue $30,513; Mt. Mourne Fire and
Rescue $19,838; and South Iredell Fire and Rescue $13,702.
Chairman Mallory asked about the grant that Iredell Rescue has applied for to purchase
turn out gear.
Commissioner Bowles said there's been no response yet.
Smith said Stony Point/East Alexander, Shepherds and Troutman are all proposing to stay
at the same fire tax rate. Mt. Mourne has proposed to go from 5 Yz cents to 6 cents and last year
they went from 4 '/z to 5 %. They asked for %2 cent increase for personnel along with user fees of
about $11,000 to utilize UASI system. Mt. Mourne's district is being infiltrated with Mooresville's
district which will continue due to multiple development.
Commissioner Bowles said Mooresville has purchased property on Langtree for a new
station.
Commissioner Johnson stated that as Mooresville continues to annex it infringes on Mt.
Mourne's tax base. He asked if the request for a tax increase is attributed to the loss of tax base.
Smith said he understood that the increase is to provide personnel.
Commissioner Robertson said their pool of volunteers is diminishing.
May 9 & 12, 2016 19
Commissioner Johnson asked to clarify that if a town annexes or takes over a local fire tax
base, then that fire station's debt is calculated as a portion of the county -wide fire district. If
Mooresville takes over are they responsible, percentage wise, for any debt that Mt. Mourne owns?
Fire/Emergency Management Director Kent Greene said it would be the same. Whatever
percentage of property or valuation they annex they would have to pay a similar percentage of the
existing debt.
Public Safety Director David Saleeby believes there is no debt at Mt. Mourne except for
the purchase of trucks.
Greene said Mooresville approached Mt. Mourne about entering into an agreement similar
to the one with Shepherds where they co -locate. Shepherds pays the Town so the personnel from
the town provides coverage for rapid response. Mt. Mourne's plan was to charge the Town rent to
have them in their station.
Greene said Mooresville is planning to build a station on Langtree Road which would be
less than half a mile from the current Mt. Mourne station. If it is the potential to have the closest
station respond, it would be very difficult to justify the existence of Mt. Mourne with a fully staffed
career station just a half mile away.
Commissioner Johnson stated his concerns about where water and sewer, treatment plant
locations in the future, which will give Mooresville all of the substantial increase in tax base in
that fire district. Mt. Mourne will be left with the out -lying areas.
Greene stated that once that happens the current station will absolutely be in the wrong
location.
Commissioner Bowles stated the agreement between Shepherds and Mooresville is a stop
gap measure and is a great idea.
Greene said Mooresville's long range plan is considering co -locating with Shepherd's
Station #2.
Commissioner Johnson suggested to have a discussion with Mt. Mourne and Mooresville.
Rather than Mooresville build a fire station on Langtree Road, have a discussion to locate that fire
department where it would best serve Mooresville and the County. Co -locate and contract with
Mooresville to serve the area.
Greene said Mooresville has a 30 -year master plan for fire departments which basically
encompasses the entire south portion. The final plan has 14 fire stations.
Commissioner Bowles said everywhere else in the county there is an ability to take over
existing fire departments with some kind an agreement and they are all located in good places
except for Mr. Mourne.
Greene said the new funding model will see changes before the next budget year. Mt.
Mourne runs more mutual aid, actually twice as much, as any other unit in the County. A vast
majority goes to Davidson. The theory is that rather than Davidson staffing as they should, they
are relying on Mt. Mourne to provide resources.
May 9 & 12, 2016 20
Chairman Mallory said mutual aid is not what it used to be. They are expecting them to
turn out on every call.
Commissioner Bowles asked to clarify out -of -county mutual aide. Is it automatic back-up?
Do they call for it or does Mt. Mourne respond as soon as Davidson gets a call? Do they contribute
anything to Mt. Mourne Fire Department?
Greene said it depends on the call type and they do not contribute anything.
Commissioner Robertson asked if they would go to a fire right on the County line.
Commissioner Bowles said they would roll if there was a structure fire inside of Davidson
City limits or downtown Davidson.
Greene said he could review Mt. Mourne and Davidson's numbers to determine if they
were reciprocal, but would bet they are not.
Chairman Mallory suggested a conversation with Davidson's Mayor Woods, with all of
the data to show.
Commissioner Bowles said it would be a great idea to have a breakdown of the call
response and the medical calls they run.
Saleeby said the request was for additional personnel and the radio user fees.
Commissioner Bowles suggested a further discussion on paying user fees.
Smith said yes, it is necessary to have a further discussion on the integration with UASI.
Candy Strezinski is creating information for the second meeting in June.
Commissioner Johnson expressed his concerns on spending money for an ECOM center
along with everything associated with it, and then pay subscription fees to someone else's
communication system.
Chairman Mallory suggested the fire departments have a base budget that covers base
communications. Then if they want additional communication capabilities they can increase in
their district to pay for something extra.
Commissioner Bowles suggested to analyze the information and determine the effects of
consolidation.
Commissioner Johnson said he is not opposed to offering an incentive but it needs to be
viewed from a business perspective.
Smith said they have gathered a lot of information to bring to the conversation.
ICATS: Smith said [CATS is an enterprise fund and Director Brad Johnson is doing well.
They are purchasing four high vans, two light transit vehicles and two mini vans. Salaries have
gone up in operations.
JCPC: Finance Director Robertson said this is a special revenue fund which is received
from the state and the Board recently approved the funding plan. However, they have just learned
that APO (Appropriate Placement Options) is dissolving effective June 30, 2016. JCPC had
appropriated $59,000 for the APO's teen court program for next year, and $53,000 for the
May 9 & 12, 2016 21
community service restitution program. Those two programs are very important to the Juvenile
Court Counselor and to the Juvenile Court Judge. JCPC voted to release a RFP and will have
responses by June 10. The following Tuesday, the Council will vote to appropriate those funds to
different agencies. They are in high hopes that one of the currently funded providers will pick-up
these programs. An amendment to the plan will be brought back to the Board for approval in June.
If Children's Hope Alliance applies to take over the programs, Robertson asked for the Board to
approve the $14,550 that the county has been matching thru a general fund appropriation to APO
to be used to match the JCPC funds for Children's Hope Alliance or any other program currently
funded.
Vice Chairman Norman asked if they would take over both pools of money, the $59,000
and the $53,000.
Finance Director Robertson said yes unless they didn't need that much. If not, then it could
be used in other areas.
Commissioner Johnson said he agrees with the re -allocation of the $14,550 if the agency
is reliable, such as the Children's Hope Alliance.
Commissioner Bowles said the Children's Hope Alliance returned funds last year.
Finance Director Robertson yes they did. The agency can leverage JCPC dollars with
Medicaid and private insurance with the counseling and therapeutic services. If there is another
revenue source they do not spend the JCPC dollars.
Solid Waste: Solid Waste Director David Lambert said three larger pieces of equipment
will be replaced — Dozer with waste package, 30 ton articulating dump truck, and deployer for
plastic wrap for daily cover. The largest change is the take-over of the landfill gas management.
The revenue will be about $250,000. But the first year expenses will be more due to capital
expenses which will be a one-time expense.
Vice Chairman Norman asked what happened to the company that was providing this
service.
Lambert said they are still running the engine, but the department is taking over the
collection side. When everything was first put in it was a tax credit, but DTE bought -out the other
company and began generating/selling electricity to Energy United. There is money to be made
and the department is doing it now. It will be sold at a set price per BTU.
Commissioner Johnson again suggested to look for a 4 -wheel drive truck in-house to use
at the landfill. Then add something in the budget to buy a new truck for the donating department.
Commissioner Robertson asked about the recycle market.
Lambert said the price has been at an all-time low but feels the price is ticking up. Some
materials are still hard to get rid of.
Commissioner Bowles asked about taking hazardous materials more often.
Lambert said they have considered adding another event but it is expensive.
May 9 & 12, 2016 22
Insurance: Finance Director Robertson said Mark Browder had already spoken to the
Board about an 8% increase for the health insurance fund. This budget reflects that increase. The
total recommendation of revenue and expenditures at $12,755,270. Within that amount, the 8%
increase is on the county's share and on the dependents cost as well. The Property and Liability
and the Workers Comp renewal was just received. There should be a net savings at approximately
$160,000 and the changes will be made in the budget. Workers Compensation fund has not made
out very well this year. It is recommended to move away from the third party administrator and
move back into the North Carolina Association Pool for Workers Comp. The stop loss insurance
for Workers Comp, which is currently being purchased on the open market, it continues to increase.
The last quote received for P&L has a 16% increase for next year. Going back to the NC
Association will allow the buying power of the association to purchase workers comp. The County
will also benefit from their expertise to assist in the training of the safety programs. In addition the
County, belonging to more than one pool, will receive $34,000 multi -pool discount. July 1, the
Association will take over and the cost through the Association would cover any claims from July
1 forward. They have agreed to manage the outstanding claims that are already in progress and
purchase all of the claims' data from the third party administrator for a very good price. However,
they will not cover the cost of those claims which means extra money will be budgeted for next
year. That will bring the fund balance lower than desired, but when the savings are adjusted,
$80,000 will be used to build up Workers Comp.
Commissioner Robertson asked to clarify that this equates to about $1,000 per employee
per year and if that was a good number.
Smith said they would need to make a comparison.
Robertson said in 2004 the fully insured rate paid was $700,000 and the recommendation
for this year is $913,320 which makes it a good deal.
Smith said pre-employment physicals for safety sensitive positions have been
implemented. This year the HR Director is tailoring safety programs for each department.
Implementation of these programs is being tied to the evaluation of the HR Director and the
evaluation of each department. In comparison with health insurance, Iredell County's rate is very
high per employee, which will be reviewed soon.
pocket.
Commissioner Johnson said to be sure to investigate the coverage, deductibles and out-of-
Chairman Mallory asked how many outstanding claims are expected.
Robertson did not know the exact number of claims but is estimating $100,000 in cost.
Follow-up: Smith said the C1P looks good but there are questions which will be discussed
at the next meeting. He asked to clarify that the Mt. Mourne request was denied.
Vice Chairman Norman said that is correct.
Commissioner Bowles asked if there should be some assistance for Mt. Mourne to have a
conversation with Mooresville toward an agreement. He also asked if the Board of Commissioners
would be willing to participate in some funding of that because sooner or later there will be full
time employees. It would be more efficient to contract with Mooresville to use their employees,
plus that could be used out in the county. The agreement with Shepherds, is that when the call
May 9 & 12, 2016 23
comes in, the Mooresville truck leaves and commits then the volunteers fill in the gap. That needs
to be the model of the future in that area.
Chairman Mallory said it would save them from building another station.
Commissioner Bowles believes such an agreement would ensure coverage of the rural area
until it is annexed. It would be a win/win for everyone and the tax payer has a little bit of relief.
Commissioner Robertson stated it would move away from the delusion that there are an
abundance of volunteers. It has been a 2 -phase transition. It went from all VFD with 40-45
volunteers that were plumbers, farmers, etc. and now there are 25-30 volunteers that are all
members of the Statesville, Mooresville, Kannapolis and Hickory Fire Departments.
Commissioner Johnson suggested to give Mt. Mourne more help if there's no agreement
with Mooresville. He is most concerned with the request to pay communication fees.
Commissioner Robertson said Mt. Mourne ran for years at a lower rate than others.
Commissioner Bowles said Mt. Mourne is a well-run department.
Chairman Mallory suggested leaving the budget as is, pending some discussions and
potential amendments. There is also the data piece, services are being provided with no
enumeration which could be a revenue source, particularly in relation to UASI.
Commissioner Bowles said there is enough expense on the County's part just to be able to
communicate and dispatch.
things.
Smith clarified to leave the budget as requested unless there is movement on the other
The Board said no, to leave the budget at 5 Yz cent as it was before.
Commissioner Bowles said they don't have a lot of debt and can survive until questions
are answered.
Smith said the public hearing is June 7, 2016. The ordinance will be available, if the Board
decides to adopt at the same meeting. He asked if the Board was satisfied with the stream lined
budget.
Commissioner Robertson said it was easier to follow.
Commissioner Johnson said it was a good process but suggested there be a little bit more
time for the Commissioners to review before the first meeting. The members need time to decide
if they need more information.
Chairman Mallory agreed.
Commissioner Bowies asked for direction on the 1¢ fire tax that should be shared with the
subcommittees.
Vice Chairman Norman questions whether the same amount of money should be kept every
year and what it is used for.
May 9 & 12, 2016 24
Commissioner Robertson suggested to research old minutes for the discussion concerning
the 10. He remembers that once the equipment was purchased to improve ratings the penny went
away. It morphed quickly into once the rating was improved then it was `bonus' money but that is
not what it is for.
Chairman Mallory suggested that if business is done the same as the past then expect the
penny to come off. It should be reviewed as a zero based budget. Variables and deliver models are
changing. There may be services that are exempted from taxation in municipalities. What does it
cost to provide the base level services? That should drive the funding needed and then allocate the
funding to meet that need.
Commissioner Bowles said the new funding model will be a great starting point. He asked
if there are any departments currently working to lower their rating. He also asked if the
departments believe this is an on-going thing and are continuing to lower their rating as low as
they can.
Saleeby said Mt. Mourne is working to lower their rating to 6. Lone Hickory has been
working for three years to lower their rating. The fire departments believe that once they achieve
a certain rating then the money was applied. A good example was Trinity. Trinity lowered their
rating to 6 and received $60,000. They worked harder and lowered it to a 5 and received $85,000.
Sheffield lowered to 6 and received a certain percentage and lowered to a rating of 5 and received
another percentage. They believe it is maintenance money to help maintain the lower rating, but
they did not get it up front until they achieved the lower rating.
Vice Chairman Norman asked if it takes that much money to maintain the ratings.
Saleeby said no but the fire departments believe it is to maintain their rating.
Commissioner Johnson asked to clarify their perspective that a portion of the one cent was
to maintain. The one cent was set aside to achieve and a portion of the one cent was to be used to
maintain.
Saleeby said the one cent is a total of all their rating.
Commissioner Johnson said the one cent was given to get the ratings down. If the one cent
is taken away they have no money left to maintain the rating. If there's a hybrid system then it is
basically a county -wide fire tax and within the taxing methodology there are tax districts for each
department. Does that mean a tax on Central and a county -wide fire district or a county -wide fire
district and make appropriations from the general fund.
Saleeby said neither.
Commissioner Johnson said however the fire tax is set it will effect whatever appropriation
made regardless of how of the delivery method.
Saleeby said the hybrid system is looking at a county -wide base level of service and what
it takes to fund that base level of service. Three areas, south, central and north, all have different
needs. The additional funding, instead of having 19 fire districts, there could be three — one for
each zone which is regulated based on need. Needs are different in different areas.
Commissioner Bowles said that is correct in what has been discussed to this point. Also, a
resident expert has been hired to research further. This person has not had a chance to report. If
May 9 & 12, 2016 25
the one cent was removed completely, would any fire rating go up? Would they lose what they
have achieved by not being to maintain it?
Saleeby doesn't think so, but ISO inspectors don't come around like they used to. What
they are inspecting is at a base level of 9. They are not making them re -run everything it took to
get a 6. That is a hard question. They may skirt along for two to three years until things begin to
break or need replacing.
Commissioner Bowles asked if there are any fire districts with a split rating.
Saleeby yes, most of them.
Commissioner Robertson thought most of the improvements were due to water flow which
needed dry hydrants and tanker trucks.
Saleeby said water flow, pump capacity, aerial, response time, and communications are the
five main areas. Response time is huge and that is where the staffing piece is generating.
Commissioner Bowles asked if they get points for just having an aerial truck.
Finance Director Robertson said such a truck has to be available but does not have to be at
a specific department.
Saleeby said a lot questions will be answered in next few months as the task force convenes.
Commissioner Robertson is not advocating to take the one cent away but wants to realize
the original intent.
Chairman Mallory said to consider the current need as well.
Adjournment:
Commissioner Robertson expressed his appreciation for the smaller budget book which
has been easier to go through. He liked the explanations of changes which are easier to review.
The fact that the amount of money varied slightly from last year meant there wouldn't be big
changes. The fact that Iredell-Statesville Schools added more detail was good. Also, Mitchell
Community College shared more information which helped the Board be more attuned to what
they are dealing with and they are more tied in with the public schools which has been a positive
change in the budget process.
Chairman Mallory expressed appreciation to Susan Robertson and all the Department
Directors. The Board's level of confidence in the very close review and justification process is
very high. He suggested to discuss the sales tax issue with co -patriots in other counties.
Commissioner Robertson stated for the record that Iredell County's two senators, Brock
and Curtis, voted for a proposal that took sales tax revenue collected in Iredell County and gave it
other counties. When that happens it will either cut the schools or cut the Sheriff's Office which
are the ramifications.
Finance Director Robertson said she sits on a state committee along with the NC
Department of Revenue. They have called the committee to action this spring to talk about sales
tax and the push from county finance officers.
May 9 & 12, 2016 26
Commissioner Robertson said there is no way to prepare from one year to the next. It is a
Roulette wheel
OTIO by Vice Chairman Norman to adjourn at 4:45 PM.
VOTING: Ayes — 5; Nays — 0
Date Approved
Retha C. Gaither, Clerk
May 9 & 12, 2016 27