June 25, 2013 - 8:00 AM - County Board of Commissioners Meeting Minutes (Special)

10 514 Meeting of the Johnston County Board of Commissioners June 25 , 2013 Special Meeting The Johnston County Board of Commissioners met in special session Tuesday , June 25 , 2013 at 8 00 am in the Commissioners Meeting Room , Johnston County Courthouse Annex , Smithfield , North Carolina The following members were present Present Chairman Jeffrey P Carver , Vice Chairman Tony Braswell , Cookie Pope , Allen L Mims , Jr , DeVan Barbour , Ted G Godwin , and Chad M Stewart Absent None Also Present County Manager Rick J Hester , Clerk to the Board Paula G Woodard , County Attorney David F Mills , Finance Officer and Assistant County Manager J Chad McLamb , and Paralegal Deputy Clerk to the Board Dana Cuddington Chairman Jeffrey P Carver called the meeting to order to consider the adoption of the FY 2013 - 2014 County budget and related matters as well as the 20 Year Public Utilities Water and Wastewater Capital Improvements Plan 1 Budget Revisions At the request of Finance Director Chad McLamb , Commissioner Allen L Mims , Jr moved the Board approve the following budget revisions , seconded by Commissioner Cookie Pope , and carried by unanimous vote Health BUDGET REQUESTED CHANGE FUND LINE ITEM CLASSIFICATION EXPENDITURE CODE INCREASE DECREASE 10 59203300 Departmental Supplies 8,50000 TOTAL NET EXPENDITURES 8,50000 BUDGET REQUESTED CHANGE FUND LINE ITEM CLASSIFICATION REVENUE CODE INCREASE DECREASE 10 592034155 Division of Public Health – Nutrition Services 8,50000 TOTAL NET REVENUE 8,50000 Non - Departmental BUDGET REQUESTED CHANGE FUND LINE ITEM CLASSIFICATION EXPENDITURE CODE INCREASE DECREASE 10 46003100 Fuels 200,00000 10 46005410 Workers Compensation 65,00000 TOTAL NET EXPENDITURES 265,00000 BUDGET REQUESTED CHANGE FUND LINE ITEM CLASSIFICATION REVENUE CODE INCREASE DECREASE 10 460036116 Sale of Gasoline 200,00000 10 460032509 Insurance Recovery 65,00000 TOTAL NET REVENUE 265,00000 Sheriff BUDGET REQUESTED CHANGE FUND LINE ITEM CLASSIFICATION EXPENDITURE CODE INCREASE DECREASE 10 51000400 Legal & Professional Fees 22800 10 51001100 Telephones 77700 10 51001700 Vehicles 1,80747 10 51002100 Equipment & Building Lease 45000 10 51003100 Fuels 2500 10 51004300 Special Services 35610 10 51007400 Capital Outlay 7,24578 51007414 Capital Outlay – Sheriff 5,39087 10Page515 June 25 , 2013 – 8 00 am Continued TOTAL NET EXPENDITURES 16,28022 BUDGET REQUESTED CHANGE FUND LINE ITEM CLASSIFICATION REVENUE CODE INCREASE DECREASE 10 510032106 Controlled Substance Tax 5,39087 10 510032509 Insurance Recovery 8,75325 10 510033099 Miscellaneous Revenue 2,13610 TOTAL NET REVENUE 16,28022 2 Adoption of the Fiscal Year 2013 - 2014 County Budget Chairman Jeffrey P Carver thanked the County Manager and Finance Staff for all their hard work and effort on the budget Chairman Carver also thanked the County Department Heads for their work and service to the County Motion to adopt the Fiscal Year 2013 - 2014 County Budget Commissioner Allen L Mims , Jr stated adoption of the County budget is difficult and stressful during ordinary times , but it is even more so when the North Carolina Legislature is working on a tax reform that has not been finalized and when the State’s budget for Fiscal Year 2013 - 2014 has not been adopted Commissioner Mims noted the difficulties the County faces when trying to estimate upcoming revenues and expenditures for possible new mandates that may be handed down from the State Commissioner Allen L Mims , Jr moved the Board adopt the County Manager’s proposed budget for Fiscal Year 2013 - 2014 with the following revisions • Add 190,000 to ad valorem revenue projections ; • Add 190,000 to vehicle tax revenue projections ; • Add 90,000 to sales tax revenue projections ; • Appropriate 350,000 to Mental Health ; • Add 60,000 to the Department of Social Services for vehicles – to reduce mileage reimbursements ; • For Johnston County Schools Appropriate a total of 51,600,000 for Current Expense and 400,000 for Capital Outlay ; • For Johnston Community College Appropriate a total of 3,843,000 for Current Expense and 375,000 for Capital Outlay ; • Approve the Amended Solid Waste Budget – Fund 66 as follows Page516 June 25 , 2013 – 8 00 am Continued • Approve the following Fire Tax Workgroup recommendations o Cleveland Fire Department tax rate McLemore Fire District from 65 cents to 725 cents o 50 - 210 Fire Department tax rate 50 - 210 Fire District from 4 cents to 6 cents o Meadow Fire Department tax rate Meadow Fire District from 6 cents to 7 cents o Extend Pi - Le Fire District and Thanksgiving Fire District’s 1 cent fire tax rate for Fiscal Year 2013 - 2014 After one year , both departments will be required to appear before the Fire Tax Committee to show cause for continuance • Adopt the 20 Year Public Utilities Water and Wastewater Capital Improvements Plan Note The CIP Document is on file in the Public Utilities Department as well as the Clerk to the Board’s Office Commissioner Mims stated based on current cash flow statements and this budget motion , the County Manager estimates the June 30 , 2014 fund balance to be 152 He continued if the proposed North Carolina House Budget is adopted , the projected June 30 , 2014 fund balance is estimated to be 159 and if the North Carolina Senate Budget is adopted , the projected June 30 , 2014 fund balance is estimated to be 142 Commissioner Mims reminded everyone of the Board’s Financial Policies that set the required fund balance percentage at a minimum of 15 to maintain the bond ratings Commissioner Mims stated if the State’s budget is favorable to Johnston County then he would be agreeable to going back and possibly amending some of the appropriations with regards to education ; however , he stressed that it is imperative the County maintain the 15 fund balance and the 78 cent tax rate Commissioner Cookie Pope seconded the motion Discussion Commissioner DeVan Barbour stated he appreciated Commissioner Mims working on the budget motion and that he recognizes the difficulty of putting a budget together not knowing what the State is going to do Commissioner Barbour stated there are several appropriations that the Board would have liked to do more for and if the County receives a good budget from the State he would also be agreeable to going back and reviewing some of those appropriations Commissioner Barbour asked if the North Carolina Senate Budget is adopted , how much more , in dollars , is the County budgeting than what was needed , to keep the fund balance at 15 Commissioner Mims responded the amount is approximately 17 million Commissioner Mims reminded the Board that the County did fall below the 15 fund balance level some time ago and it did not impact the bond rating because the policy also allowed the County to implement a plan to bring the fund balance back up to the 15 level which the County was able to do within two years rather than the allowed three years Commissioner Mims stated everyone must remember that the projected fund balance being discussed today is for June 30 , 2014 and not 2013 He stated the bond rating agencies will not look at the fund balance until the audit is completed ; therefore , the County has 18 months and one more budget cycle to see how the fund balance will be impacted and if adjustments will be needed Chairman Jeffrey P Carver noted the County is projecting a fund balance as of June 30 , 2013 at approximately 16 He stated the County will be meeting with the rating agencies in early Fall on the 2013 bond referendum Commissioner Cookie Pope echoed earlier comments by Commissioner Mims stating that she believed the bond rating agencies looked favorably on the County when the fund balance fell below the 15 level because of the plan that was implemented to bring the level back up within two years Commissioner Tony Braswell spoke on his disappointment that the State has not yet adopted a budget stating it puts the County in a difficult position Commissioner Ted G Godwin asked how many vehicles would 60,000 for the Department of Social Services purchase Commissioner Mims stated 60,000 would purchase three or four vehicles for Social Services Page517 June 25 , 2013 – 8 00 am Continued Commissioner Barbour , who sits on the Social Services Board , noted the mileage reimbursement line item for Social Services has increased significantly and by purchasing these vehicles , it would offset those costs Commissioner Barbour thanked the Sheriff’s Department for the donation of vehicles to Social Services and noted that the Sheriff’s Department recently purchased a new 15 passenger van for Social Services which was greatly appreciated Vote The motion to adopt the Fiscal Year 2013 - 2014 County Budget carried by unanimous vote The following budget ordinance for the Fiscal Year 2013 - 2014 was adopted BUDGET ORDINANCE FY 2013 - 2014 JOHNSTON COUNTY , NORTH CAROLINA BE IT ORDAINED by the Board of Commissioners of Johnston County , North Carolina SECTION I BUDGET ADOPTION There is hereby adopted the following Operating Budget for the County of Johnston for the Fiscal Year beginning July 1 , 2013 and ending June 30 , 2014 ; the same being adopted by fund and activity within each fund as listed GENERAL FUND EXPENDITURES GENERAL GOVERNMENT 13,173,481 PUBLIC SAFETY 29,605,341 PHYSICAL DEVELOPMENT 6,891,320 HUMAN SERVICES 39,125,102 EDUCATION 56,218,000 DEBT SERVICE 37,003,736 TOTAL 182,016,980 REVENUES CURRENT YEAR AD VALOREM TAX 108,480,000 SALES TAX 26,389,002 OTHER TAX REVENUES 1,930,200 STATE & FEDERAL 25,401,935 LICENSE , FEES , ETC 3,860,638 INVESTMENT INCOME 50,000 TRANSFER FROM OTHER FUNDS 431,000 FUND BALANCE APPROPRIATED 5,585,355 MENTAL HEALTH 0 NC EDUCATION LOTTERY 2,300,000 SALES AND SERVICE 7,588,850 TOTAL 182,016,980 TOURISM AUTHORITY EXPENDITURES 918,000 REVENUES OCCUPANCY TAX 911,500 INTEREST INCOME 1,000 MISCELLANEOUS INCOME 500 WEB ADVERTISING 0 REIMBURSEMENTS 5,000 TOTAL 918,000 REVALUATION FUND EXPENDITURES RESERVE FOR REVALUATION 40,000PagePage pageNumber5518 June 25 , 2013 – 8 00 am Continued REVENUES TRANSFER FROM GENERAL FUND 40,000 FUND BALANCE 0 TOTAL 40,000 SCHOOL BOND FUND EXPENDITURES TRANSFER TO GENERAL FUND 0 REVENUES INVESTMENT INCOME 0 INDUSTRIAL INFRASTRUCTURE FUND EXPENDITURES INDUSTRIAL DEVELOPMENT 2,738,098 REVENUES TRANSFER FROM GENERAL FUND 2,150,000 FUND BALANCE 188,098 TRANSFER FROM OTHER FUNDS 400,000 TOTAL 2,738,098 LEO SEPARATION FUND EXPENDITURES PROGRAM COST 235,275 REVENUES TRANSFER FROM GENERAL FUND 233,351 FUND BALANCE 1,924 TOTAL 235,275 HERITAGE COMMISSION FUND EXPENDITURES OPERATING EXPENSE 214,995 REVENUES TRANSFER FROM GENERAL FUND 145,388 OTHER REVENUES 69,607 TOTAL 214,995 SOCIAL SERVICE TRUST FUND EXPENDITURES PROGRAM COST 155,000 REVENUES TRUST RECEIPTS 155,000 MENTAL HEALTH FUND EXPENDITURES OPERATION OF CENTER 3,588,844 REVENUES FEDERAL GOVERNMENT 0 STATE GOVERNMENT 2,690,744 TRANSFER FROM GENERAL FUND 350,000 ABC - FIVE CENT PER BOTTLE TAX 35,600 ABC PROFITS 6,000 FEES AND CHARGES 6,000 INTEREST INCOME 500 FUND BALANCE 500,000 TOTAL 3,588,844PagePage pageNumber6519 June 25 , 2013 – 8 00 am Continued COMMUNICATION FUND EXPENDITURES E - 911 OPERATIONS 1,038,402 REVENUES ENHANCED 9 - 1 - 1 1,306,799 OTHER COLLECTIONS EXPENDITURES SPECIAL DISTRICT TAX 7,026,000 MOTOR VEHICLE TAX 12,515,475 MOCCASIN CREEK DISTRICT TAX 35,000 TOTAL 19,576,475 REVENUES SPECIAL DISTRICT TAX 7,026,000 MOTOR VEHICLE TAX 12,515,475 MOCCASIN CREEK DISTRICT TAX 35,000 TOTAL 19,576,475 RESEARCH TRAINING ZONE EXPENDITURES OPERATIONS 533,000 REVENUES SPECIAL DISTRICT TAX 248,000 TRANSFER FROM GENERAL FUND 285,000 TOTAL 533,000 AIRPORT AUTHORITY FUND EXPENDITURES OPERATIONS 1,866,073 CAPITAL COST 2,452,623 TOTAL 4,318,696 REVENUES FEDERAL GRANTS 2,162,000 FEES AND SERVICES 1,707,211 INVESTMENT INCOME 200 TRANSFER FROM GENERAL FUND 511,000 FUND BALANCE 0 TOTAL 4,380,411 HOUSING ASSISTANCE PAYMENT PROGRAM FUND EXPENDITURES PROGRAM COST 3,736,444 REVENUES FEDERAL GOVERNMENT HUD 3,733,824 INVESTMENT INCOME 2,620 TOTAL 3,736,444 JOB TRAINING PROGRAM FUND EXPENDITURES PROGRAM COST 770,000 REVENUES FEDERAL GOVERNMENT 770,000PagePage pageNumber7520 June 25 , 2013 – 8 00 am Continued WATER DISTRICTS EXPENDITURES DEBT SERVICE 4,205,500 OPERATIONS 4,742,500 TRANSFER TO OTHER FUNDS 2,048,500 TOTAL 10,996,500 REVENUES RETAIL WATER 4,156,500 MONTHLY BASE FEE 6,300,000 OTHER REVENUE 540,000 TOTAL 10,996,500 PUBLIC UTILITIES EXPENDITURES ADMINISTRATION 1,383,000 SOLID WASTE 5,107,000 WATER 7,833,500 WASTE WATER 3,418,300 TRANSFER TO GENERAL FUND 0 DEBT SERVICE - WATER 2,025,000 DEBT SERVICE - WASTEWATER 2,843,500 TOTAL 22,610,300 REVENUES ADMINISTRATION FEES 807,500 SOLID WASTE FEES 4,924,500 WATER FEES 8,238,000 WASTE WATER FEES 6,261,800 DISPOSAL TAX 55,000 FUND BALANCE - ADMINISTRATION 575,500 FUND BALANCE – SOLID WASTE 127,500 FUND BALANCE - WATER 0 FUND BALANCE - WASTEWATER 0 TRANSFER - WATER 1,620,500 TOTAL 22,610,300 SECTION II There is hereby levied a Tax Rate of seventy - eight 78 cents per one hundred dollars valuation of property listed for taxes as of January 1 , 2013 This rate shall be levied entirely in the General Fund The Tax Rate is based on an estimated total valuation of property for the purposes of taxation of 13,648,061,592 and an estimated collection rate of 9858 SECTION III All fees , including Inspection Fees , Fire Code Fees , and Environmental Sanitarian Fees shall be collected as per schedule in the Clerks Office Planning and Zoning Fees and Public Utility Fees are adopted as recommended and are on file in the Clerks Office GIS fees are approved to recognize cost and may be amended as needed SECTION IV Landfill Tipping Fees shall be levied at a rate of 45 per ton including State surcharges for asbestos waste Landfill Tipping Fees shall be levied at a rate of 35 per ton for municipal solid waste generated in Johnston County The minimum fee for any vehicle shall be 5 A rate of four times the inside rate shall be levied for all solid waste generated outside of Johnston County Solid Waste assigned to the Sheriffs Department and Planning Department to enforce Solid Waste Laws , Rules and Regulations in Johnston County to ensure compliance with Senate Bill 111 The Landfill tipping fee for construction and demolition waste shall be 27 per ton The Landfill tipping fee for non - commercial yard wastes shall be 16 per ton or 8 per pickup size load An ineligible illegal tire disposal fee of 65 per ton shall be levied The corrugated cardboard disposal penalty shall be four times the tipping fee surcharge to a maximum amount of 300 PagePage pageNumber8521 June 25 , 2013 – 8 00 am Continued Effective July 1 , 2013 Bulk Wastewater Treatment An increase of 015 per 1,000 gallons in the commodity charge is approved The unit commodity charge for treatment will be 280 per 1,000 gallons Residential Retail Wastewater Assessment Fee for capacity An increase of 300 per dwelling unit is approved The fee will be 2,700 Commercial and Industrial Wastewater Assessment Fee for capacity An increase of 125 per gpd is approved The fee will be 1125 per gpd Residential Retail Water Meter Fee An increase from 19500 to 21500 per meter is approved SECTION V A fee of 65 per household shall be levied to all citizens in the county using the manned compaction sites and the landfill A vehicle identification sticker must be purchased prior to use of the sites in the County SECTION VI Salaries The following shall govern salary and wage compensation for Fiscal Year 2013 - 2014 A Pay Plan There is hereby adopted a pay plan which includes 2 cost - of - living for FY 2013 - 2014 SECTION VII The Budget Officer is hereby authorized to transfer appropriations within a fund as contained herein under the following conditions as specified in North Carolina General Statute 159 A The Budget Officer may transfer amounts between objects of expenditure within departments listed in this Ordinance without a report B The Budget Officer may transfer amounts up to 5,000 between departments of the same fund and reported as part of the monthly financial statements C The Budget Officer may not transfer amounts between funds nor from the Contingency Fund without prior Board Action SECTION VIII Restricted Revenues The Finance Officer is hereby directed to fund appropriations which have specified revenues prior to funding with General Fund monies This is to include but not limited to Fines and Forfeitures , ABC profits , Sales Tax , State and Federal Grants , and Forestry Revenues That a non - profit corporation be continued to issue obligations to finance the purchase and or construction of fixed assets to include but not limited to utility lines and buildings SECTION IX State designated Sales and Use Tax is hereby designated for the payment of debt for new and renovated schools School Debt Service is to be paid from the General Fund as directed by the independent auditors Fines and Forfeitures are deposited directly with the Board of Education by the Clerk of Court SECTION X Encumbrances All outstanding encumbrances from Prior Fiscal Years are to be carried forward to Fiscal Year 2013 - 2014 All Project Ordinance appropriations are continued Operating and Capital Funds for Johnston County Community College not expended at the end of the fiscal year shall be placed by JCCC in their Special Capital Outlay Account and used as match for State funds SECTION XI Budget Control The Board of Commissioners in approving the Budget , have utilized to the fullest extent possible its revenue sources Over collections of revenue or unanticipated revenue sources cannot be expected to materialize during the year It is therefore , of utmost importance , and the County Manager is hereby directed , to initiate steps to insure that the budget as fixed herein is complied with The County Manager is further directed where it appears that costs may possibly exceed budget appropriations , to first take steps to contain costs by any necessary methods including reductions in services , prior to requesting budget amendment action by the Board of Commissioners SECTION XII The Board of Commissioners hereby authorizes the Johnston County Tax Administrator to collect taxes for the Towns of Clayton , Smithfield , Four Oaks , Pine Level , Micro , Princeton , Wilson’s Mills , Whitley Heights Sanitary District , Moccasin Creek Service District and Smithfield Downtown Development District in compliance with the contracts adopted by the various governing boards A charge of two percent 2 of all taxes collected for the governmental units will be payable to Johnston County for said billing and collection services Taxes for the Towns of Archer Lodge , Selma , Kenly , and Benson are collected by thePagePage pageNumber9522 June 25 , 2013 – 8 00 am Continued Johnston County Tax Administrator also The charge of two and one half percent 2 ½ of all taxes collected will be payable to Johnston County for said billing and collection services SECTION XIII The Board of Commissioners hereby authorizes the Tax Administrator to bill and collect taxes for the Whitley Heights Sanitary District and for the Fire Departments listed below and to charge a uniform fee of two percent 2 of all taxes collected on their behalf Archer Lodge Fire District 7 cents Banner Fire District 9 cents Bentonville Fire District 8 cents Beulah Kenly Fire District 8 cents Boon Hill Princeton Fire District 5 cents Blackmons Crossroads Fire District 8 cents Brogden Fire District 7 cents Claytex 975 cents Corinth Holder Fire District 10 cents Elevation Fire District 10 cents McLemore - Cleveland Fire District 725 cents Meadow Fire District 7 cents Micro Fire District 10 cents Nahunta Fire District 6 cents Newton Grove Fire District 65 cents Oakland Fire District 7 cents ONeals - Antioch Fire District 8 cents PI - LE 8 cents Selma 10 cents Shoeheel 10 cents Smithfield 11 cents Strickland Crossroads Fire District 8 cents Thanksgiving 9 cents West Johnston Fire District 7 cents Wilsons Mills Fire District 6 cents Wynn Four Oaks Fire District 8 cents 50 - 210 Fire District 6 cents The above amounts are per one hundred dollar valuation of property listed for taxes as of January 1 , 2013 , located within these Special Fire Districts The Board of Commissioners hereby appropriates to the Special Fire Districts , sums collected for the use by the Special Fire Districts in such manner and for such expenditures as is permitted by law from the proceeds of the tax levy SECTION XIV The Board of Commissioners hereby authorizes the Tax Administrator to bill and collect taxes for the Research Training Zone District at a rate of eight cents per one hundred dollar valuation of property listed for taxes as of January 1 , 2013 , located within the district SECTION XV The Board of Commissioners hereby authorizes the Tax Administrator to bill and collect taxes for the Moccasin Creek Service District at a rate of one and one - half cents per one hundred dollar valuation of property listed for taxes as of January 1 , 2013 , located within the district th The ORDINANCE being duly passed and adopted this 25 day of June , 2013 JOHNSTON COUNTY BOARD OF COMMISSIONERS ______________________________________________ Jeffrey P Carver , Chairman ________________________________________________ Paula G Woodard , Clerk to the BoardPage0523 June 25 , 2013 – 8 00 am Continued 3 Recognition of Public Utilities Director Tim Broome , PE County Manager Rick Hester recognized Public Utilities Director Tim Broome in the audience and noted today was Mr Broome’s last official meeting since he is retiring at the end of the month Mr Hester thanked Mr Broome for all his work and service to the County Mr Broome stated it has been very gratifying to serve the County and he is leaving an excellent staff in place Mr Broome continued that a lot of work has been accomplished and he has enjoyed it all He thanked the Board for their support over the years The Commissioners expressed their appreciation to Mr Broome with a round of applause There being no further business , Commissioner Cookie Pope moved the Board adjourn Commissioner Chad M Stewart seconded the motion , which carried by unanimous vote The meeting adjourned at 8 15 am Jeffrey P Carver , Chairman Paula G Woodard , Clerk to the BoardPage