HomeMy WebLinkAboutFebruary 19 2002 Briefing MinutesIREDELL COUNTY BOARD OF COMMISSIONERS
BRIEFING MINUTES
FEBRUARY 19, 2002
The Iredell County Board of Commissioners met in Briefing Session on Tuesday,
February 19, 2002, at 5:00 p.m., in the Iredell County Government Center (South Wing
Conference Room), 200 South Center Street, Statesville, NC.
Present: Chairman Sara Haire Tice
Vice Chairman Karen B. Ray (Mrs. Ray arrived at approximately 5:30 p.m.)
Tommy E. Bowles
Steve D. Johnson
R. Godfrey Williams
Staff Present: County Manager Joel Mashburn, Finance Director Susan Blumenstein,
Emergency Management Director Larry Dickerson, Tax Collector Joe Ketchie, County Assessor
Brent Weisner, Recreation Director Robert Woody, Library Director Steve Messick, Register of
Deeds Brenda Bell, and Clerk to the Board Jean Moore.
CALL TO ORDER by Chairman Tice.
UPDATE ON BUDGET DEFICITS: County Manager Joel Mashburn and Finance
Director Susan Blumenstein shared two plans that were developed to address county revenue
shortages. Mashburn said changes needed to be made to the FY 2001-02 budget because: (1)
information had been received from the League of Municipalities advising that sales tax
distributions for the rest of the fiscal year would be below budget (2) some county departments
were in need of the funds frozen in the FY 2001-02 budget and (3) Governor Easley announced
on February 5, 2002 that he planned to retain inventory tax reimbursements and withhold other
tax reimbursements to balance the state's budget. Mashburn said that when the current year's
budget was adopted last June, the county had planned to unfreeze the $2,781,800 when a final
funding plan was submitted by the state. Mashburn said that now, however, since Governor
Easley again planned to withhold the funds, decisions needed to be made about the budget.
Blumenstein then shared information about the decrease in sales tax revenues. She said
the county would be under budget by $1,127,626. Mrs. Blumenstein said the entire state was
experiencing a sales tax revenue decrease due to the economy. Blumenstein then discussed two
plans (A & B) that had been developed to address the shortages. The two plans are as follows:
Summary of Changes in Budgeted
Revenues & Expenditures
PLAN A
PLAN B
Reduce Transfer
To Capital Reserve
Reduce Transfer to
Capital Reserve & Reduce
School Capital for
Restricted Sales Taxes
Budgeted General Fund Revenues
(Includes $2,463,206 Appropriated Fund Balance)
106,549,480
106,549,480
Sales Taxes estimated under budget
1,127,626
1,127,626
Reimbursements: Inventory taxes
786,238
786,238
Beer & Wine
330,000
330,000
Elderly Homestead
103,995
103,995
Ad Valorem Taxes
470,030
470,030
Interest on Investments
540,000
540,000
Public School Capital Fund
327,825
327,825
Other Net Decreases
337,664
337,664
4,023,378
4,023,378
Net Estimated Revenues for year
102 526102
102 526102
General Fund Expenditure Appropriations
106,549,480
106,549,480
Less School Capital Outlay (restricted sales taxes)
(465,517)
Less 3% unspent (net of operating transfers)
(3,113,030)
(3,113,030)
103,436,450
102,970,933
Reduce Transfer to Capital Reserve Fund
(910,348)
(444,831)
Net Estimated Expenditures for year
102 526102
102 526102
Building Improvements (EMS)
21,000
Field Dress Machine (Recreation)
Fund Balance
Transfer to Park Fund (Recreation)
25,000
Adjusted Fund Balance, July 1, 2001
12,759,131
12,759,131
Less: expenditures > revenues
(2,463,206)
(2,463,206)
Adjusted Fund Balance June 30, 2002
10,295 925
10 295 925
RESULTS:
General Fund
Lifting freeze on General Fund Capital Outlay Items
Amending Operating Transfer to Capital Reserve Fund to:
281,800
1,589,652
281,800
2,055,169
Capital Reserve Fund
Available for library Project
4,474,652
4,940,169
Mr. Mashburn said portions of the 1983 and 1986 sales taxes had always been
appropriated to the schools. He said that if the board members did not reduce the sales tax
proceeds to the schools, the county would now be supplementing them.
Blumenstein said that in the past, when there was an increase in the sales tax proceeds, the
schools were always given more.
Chairman Tice said she felt that everyone should share in the deficit.
Commissioner Bowles and Commissioner Williams agreed.
Mashburn reminded the board members that the third one-half cent sales and use tax would
expire in 2003. He said that if the county desired the tax ('/z cent) a public hearing would need to be
held and a resolution adopted.
Mr. Mashburn emphasized that some county departments needed the freeze lifted.
Commissioner Johnson said he understood the sheriff s department was in need of the
$48,000 for the cell door replacements. Mr. Johnson also said that he was hearing that the state's
budget situation would be even worse next year. He said it was being estimated that the state
would be short $2 billion.
The staff was then instructed to:
1. Implement Plan B in an effort to remedy the county's budgetary deficits.
2. Return at the next board meeting with a listing, in priority order, of the items that
needed to be removed from the frozen capital outlay list. The staff was instructed to
especially consider the needs of the public safety departments.
A listine showine the frozen FY 2001-2002 expenditures is as follows
Transfer to Capital Reserve Fund $2,500,000
Replacement Sedan (Tax Adm.) 18,000
Generator (Mtg. St. Service Cit.) 35,000
In -car Cameras (law enforcement) 47,500
Replacement commodes (jail)
10,800
Cell Door Replacement (jail)
48,000
File System (DSS)
14,000
Building Improvements (EMS)
21,000
Field Dress Machine (Recreation)
10,000
Transfer to Park Fund (Recreation)
25,000
Replacement Vehicle (Health)
17,500
Capital Outlay (General Government)
10,000
Power Point Projector (Health)
5,000
Replacement van (Inspections)
20,000
Total:
2
The county manager said the staff would notify the school officials about the board's actions.
Note: Information follows about the current sales taxes.
1971 - Article 39
1 cent tax (May be used for any authorized public purpose)
1983 - Article 40
%i cent tax (Authorized that 30% of proceeds would be earmarked for school capital outlay
for a period of 15 years -- Iredell County has continued to restrict the
30% for school use even though the stipulation period has ended.)
1986 - Article 42
% cent tax (Authorized that 30% of proceeds would be earmarked for school capital outlay
for a period of 16 years.)
2001 - Article 44
/2 cent tax (The tax expires on July 1, 2003. Counties have the option of levying
this tax after a public hearing has been held and a resolution has been
adopted.
4% designated for state on non-food items.
UPDATE ON STUMPY CREEK PARK: Recreation Director Robert Woody said
progress was being made on the Stumpy Creek Park project. He said the waste water bids would
be opened on February 21, 2002. Woody said the fencing bids would be next.
ADJOURNMENT: Chairman Tice adjourned the briefing session at 6:15 p.m.
Approved:
Clerk to the Board