June 30, 2014 - 8:15 AM - County Board of Commissioners Meeting Minutes (Special)

10 123 Meeting of the Johnston County Board of Commissioners June 30 , 2014 Special Meeting The Johnston County Board of Commissioners met in special session Monday , June 30 , 2014 at 8 15 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 , 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 2014 - 2015 County budget and related matters 1 Budget Revisions At the request of Finance Director Chad McLamb , Commissioner Cookie Pope moved the Board approve the following budget revisions , seconded by Commissioner Allen L Mims , Jr , and carried by unanimous vote Health BUDGET REQUESTED CHANGE FUND LINE ITEM CLASSIFICATION EXPENDITURE CODE INCREASE DECREASE 10 59207050 Non Major Departmental 21,25000 TOTAL NET EXPENDITURES 21,25000 BUDGET REQUESTED CHANGE FUND LINE ITEM CLASSIFICATION REVENUE CODE INCREASE DECREASE 10 592034154 Division of Medical Assistance 21,25000 TOTAL NET REVENUE 21,25000 Public Utilities BUDGET REQUESTED CHANGE FUND LINE ITEM CLASSIFICATION EXPENDITURE CODE INCREASE DECREASE 68 79009033 Debt Service 12,50000 68 79101600 Maintenance & Repair - Equipment 15,00000 68 79104500 Contract Services 50,00000 68 79201300 Utilities 20,50000 68 79704528 Sewer Purchase – Clayton 40,00000 TOTAL NET EXPENDITURES 138,00000 BUDGET REQUESTED CHANGE FUND LINE ITEM CLASSIFICATION REVENUE CODE INCREASE DECREASE 68 797036172 Assessment Fees 138,00000 TOTAL NET REVENUE 138,00000 RTZ BUDGET REQUESTED CHANGE FUND LINE ITEM CLASSIFICATION EXPENDITURE CODE INCREASE DECREASE 61 46109078 Clayton Skills Training Center 100,00000 TOTAL NET EXPENDITURES 100,00000 BUDGET REQUESTED CHANGE FUND LINE ITEM CLASSIFICATION REVENUE CODE INCREASE DECREASE 61 461031100 Ad Valorem Taxes Current 100,00000 TOTAL NET REVENUE 100,00000Page124 June 30 , 2014 – 8 15 am Continued Sheriff BUDGET REQUESTED CHANGE FUND LINE ITEM CLASSIFICATION EXPENDITURE CODE INCREASE DECREASE 10 51007414 Capital Outlay – Sheriff 2,74627 TOTAL NET EXPENDITURES 2,74627 BUDGET REQUESTED CHANGE FUND LINE ITEM CLASSIFICATION REVENUE CODE INCREASE DECREASE 10 510032106 Controlled Substance Tax 2,05247 10 510036119 Sale of Assets 69380 TOTAL NET REVENUE 2,74627 Tax BUDGET REQUESTED CHANGE FUND LINE ITEM CLASSIFICATION EXPENDITURE CODE INCREASE DECREASE 10 45004810 Audit Division – TMA Associates , Inc 5,09500 TOTAL NET EXPENDITURES 5,09500 BUDGET REQUESTED CHANGE FUND LINE ITEM CLASSIFICATION REVENUE CODE INCREASE DECREASE 10 460031100 Ad Valorem Taxes – Current 5,09500 TOTAL NET REVENUE 5,09500 2 Adoption of the Fiscal Year 2014 - 2015 County Budget Motion to adopt the Fiscal Year 2014 - 2015 County Budget Commissioner Cookie Pope spoke on the challenges with adopting a budget and not knowing what the State will do as it relates to items such as Medicaid and lottery funds She stated the Board must also be mindful of the tax rate as well as the fund balance Commissioner Pope moved the Board adopt the County Manager’s proposed budget for Fiscal Year 2014 - 2015 with the following revisions ? Appropriate 52,150,000 to Johnston County Schools for Current Expense and 1,000,000 for Capital Outlay for a total of 53,150,000 ; ? Appropriate 3,950,000 to Johnston Community College for Current Expense and 500,000 for Capital Outlay for a total of 4,450,000 ; ? Add 480,000 in expense for Department of Social Services for temporary employees and 360,000 in federal reimbursement ; ? Appropriate 99,000 to the Forestry Service ; ? Add 240,000 in additional Department of Social Services revenue ; ? Add 150,000 in ad valorem tax revenue ; ? Add 150,000 in Register of Deeds revenue ; ? Add 150,000 in Health Department revenue ; ? Appropriate 20,000 to Harbor , Inc ; ? Appropriate 1,500 to Johnston County Arts Council ; and ? Adopt recommendations from following workgroups - EMS – Appropriate 860,937 to the three contracted EMS agencies , - Fire Tax – Approve a 1 cent tax increase for Brogden and allow Thanksgiving , Four Oaks and Pine Level to retain recent fire tax rate increases , and - Research and Training Zone – Continue 8 cent tax rate Page125 June 30 , 2014 – 8 15 am Continued Commissioner DeVan Barbour seconded the motion Discussion Commissioner Allen L Mims , Jr stressed that what he is about to say does not reflect on Harbor , the Johnston County Arts Council , or the services they provide Commissioner Mims added he believes both groups are doing good work and are needed in the County ; however , he thought the Board had agreed on a policy to phase out funding for non - profits Commissioner Mims continued he had thought it was the Board’s feelings that while the non - profits are important , the Commissioners did not like taxing the citizens and then giving those tax dollars to non - profit organizations of the Board’s choosing Commissioner Mims stated the issue for him comes down to fairness as well as adhering to the policy and he expressed concerns over giving funding to Harbor and the Arts Council just because they came to one of the budget meetings , but not allowing any of the other non - profits in the County the chance to request funding Commissioner Mims stated he will not vote against the motion , but he does have concerns with fairness Commissioner Ted G Godwin stated he understands the comments by Commissioner Mims and noted he also has given the matter a lot of thought Commissioner Godwin stated he solicited feedback from a few citizens regarding the matter and was told by one citizen that they had a hard time with their tax dollars going to a non - profit group that very few people utilize Commissioner Godwin agreed that all of the non - profits are important and do good work ; however , he is sensitive to the concerns of the citizens Commissioner Godwin stated he has no problem with adhering to the policy ; however , in the case of Harbor , he does feel that if it were not for Harbor the County would have to pick up the tab and provide those services so he can support funding for Harbor Commissioner Mims noted the County used to give funding to Johnston County Industries , the Special Olympics , the Boys & Girls Club , etc and he has a problem with giving money to some and not all Commissioner Mims reiterated it is about fairness to all and sticking with policy Chairman Jeffrey P Carver stated one of the reasons the Board looked at phasing out funding to non - profits was because several years ago , there was an increase in the number of new non - profit organizations being established and requesting funding from the County He stated the Board had concerns at that time that some of these non - profit groups were simply creating jobs for themselves However , Chairman Carver stated some of the services provided by groups such as Harbor are greatly needed in the County and if Harbor is not there to provide the service then it will fall back on the County Chairman Carver noted the Board also gives matching funds to the Senior Services of Johnston County which is a needed service Chairman Carver stated he would like for the Board to adopt the budget unanimously and then discuss future funding for non - profits at a later date Commissioner Chad M Stewart noted some of the fire chiefs were in the audience and he took the opportunity to express the Board’s appreciation to the fire departments in the County for the services they provide to the citizens Commissioner Stewart also thanked the fire chiefs for working with the Board of Commissioners Upon a question by Commissioner Godwin , County Manager Rick Hester stated the EMS funding amount proposed by Commissioner Cookie Pope would be the same as in Fiscal Year 2013 - 2014 At the inquiry of Commissioner Mims , Mr Hester stated staff projects a fund balance of 15 or possibly a little higher as of June 30 , 2015 He stated staff will continue to monitor the finances and report to the Board monthly Commissioner Cookie Pope stated the Finance staff and the County Manager have been great to work with on the budget this year and she appreciates their efforts Chairman Carver asked Commissioner DeVan Barbour to keep the Board updated on the situation at the Department of Social Services regarding the work backlog and the temporary workers Vote The motion to adopt the Fiscal Year 2014 - 2015 County Budget carried by unanimous vote The following budget ordinance for the Fiscal Year 2014 - 2015 was adopted Page126 June 30 , 2014 – 8 15 am Continued BUDGET ORDINANCE FY 2014 - 2015 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 , 2014 and ending June 30 , 2015 ; the same being adopted by fund and activity within each fund as listed GENERAL FUND EXPENDITURES GENERAL GOVERNMENT 14,565,460 PUBLIC SAFETY 30,595,742 PHYSICAL DEVELOPMENT 7,104,590 HUMAN SERVICES 41,855,557 EDUCATION 57,600,000 DEBT SERVICE 37,641,150 TOTAL 189,362,499 REVENUES CURRENT YEAR AD VALOREM TAX 112,273,893 SALES TAX 28,056,000 OTHER TAX REVENUES 2,075,180 STATE & FEDERAL 27,357,086 LICENSE , FEES , ETC 4,498,000 INVESTMENT INCOME 50,000 TRANSFER FROM OTHER FUNDS 431,000 FUND BALANCE APPROPRIATED 4,421,445 MENTAL HEALTH 0 NC EDUCATION LOTTERY 2,300,000 SALES AND SERVICE 7,899,895 TOTAL 189,362,499 TOURISM AUTHORITY EXPENDITURES 1,029,870 REVENUES OCCUPANCY TAX 1,023,570 INTEREST INCOME 800 MISCELLANEOUS INCOME 500 WEB ADVERTISING 0 REIMBURSEMENTS 5,000 TOTAL 1,029,870 REVALUATION FUND EXPENDITURES RESERVE FOR REVALUATION 340,000 REVENUES TRANSFER FROM GENERAL FUND 340,000 FUND BALANCE 0 TOTAL 340,000 SCHOOL BOND FUND EXPENDITURES TRANSFER TO GENERAL FUND 0 REVENUES INVESTMENT INCOME 0PagePage pageNumber5127 June 30 , 2014 – 8 15 am Continued INDUSTRIAL INFRASTRUCTURE FUND EXPENDITURES INDUSTRIAL DEVELOPMENT 3,297,000 REVENUES TRANSFER FROM GENERAL FUND 2,800,000 FUND BALANCE 97,000 TRANSFER FROM OTHER FUNDS 400,000 TOTAL 3,297,000 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 2,966,039 REVENUES FEDERAL GOVERNMENT 0 STATE GOVERNMENT 2,319,530 TRANSFER FROM GENERAL FUND 350,000 ABC - FIVE CENT PER BOTTLE TAX 23,000 ABC PROFITS 6,000 FEES AND CHARGES 3,000 INTEREST INCOME 175 FUND BALANCE 264,334 TOTAL 2,966,039 COMMUNICATION FUND EXPENDITURES E - 911 OPERATIONS 1,014,000 REVENUES ENHANCED 9 - 1 - 1 1,353,366 OTHER COLLECTIONS EXPENDITURES SPECIAL DISTRICT TAX 7,026,000 MOTOR VEHICLE TAX 12,515,475 MOCCASIN CREEK DISTRICT TAX 35,000PagePage pageNumber6128 June 30 , 2014 – 8 15 am Continued 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 650,000 REVENUES SPECIAL DISTRICT TAX 365,000 TRANSFER FROM GENERAL FUND 285,000 TOTAL 650,000 AIRPORT AUTHORITY FUND EXPENDITURES OPERATIONS 2,049,654 CAPITAL COST 1,758,178 TOTAL 3,807,832 REVENUES FEDERAL GRANTS 1,537,000 FEES AND SERVICES 1,839,632 INVESTMENT INCOME 200 TRANSFER FROM GENERAL FUND 431,000 FUND BALANCE 0 TOTAL 3,807,832 HOUSING ASSISTANCE PAYMENT PROGRAM FUND EXPENDITURES PROGRAM COST 3,619,176 REVENUES FEDERAL GOVERNMENT HUD 3,618,744 INVESTMENT INCOME 432 TOTAL 3,619,176 WATER DISTRICTS EXPENDITURES DEBT SERVICE 4,187,400 OPERATIONS 5,440,000 TRANSFER TO OTHER FUNDS 1,636,100 TOTAL 11,263,500 REVENUES RETAIL WATER 4,483,500 MONTHLY BASE FEE 6,355,000 OTHER REVENUE 625,000 TOTAL 11,463,500 PUBLIC UTILITIES EXPENDITURES ADMINISTRATION 1,135,000 SOLID WASTE 5,610,500PagePage pageNumber7129 June 30 , 2014 – 8 15 am Continued WATER 8,650,000 WASTE WATER 4,206,600 TRANSFER TO GENERAL FUND 250,000 DEBT SERVICE - WATER 1,536,100 DEBT SERVICE - WASTEWATER 2,803,400 TOTAL 24,191,600 REVENUES ADMINISTRATION FEES 815,250 SOLID WASTE FEES 5,656,500 WATER FEES 8,650,000 WASTE WATER FEES 7,210,000 DISPOSAL TAX 54,000 FUND BALANCE - ADMINISTRATION 469,750 FUND BALANCE – SOLID WASTE 0 FUND BALANCE - WATER 0 FUND BALANCE - WASTEWATER 0 TRANSFER - WATER 1,536,100 TOTAL 24,391,600 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 , 2014 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 14,496,729,230 and an estimated collection rate of 9948 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 Bulk Water Rate The unit commodity charge will increase from 200 to 215 per 1,000 gallons Retail Water Rate The unit commodity charge will increase from 310 to 325 per 1,000 gallons Irrigation Rate The unit charge will increase from 410 to 425 per 1,000 gallons 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 2014 - 2015 A Pay Plan There is hereby adopted a pay plan which includes 22 cost - of - living for FY 2014 - 2015 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 PagePage pageNumber8130 June 30 , 2014 – 8 15 am Continued 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 2014 - 2015 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 the 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 8 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 centsPagePage pageNumber9131 June 30 , 2014 – 8 15 am Continued 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 , 2014 , 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 , 2014 , 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 , 2014 , located within the district th The ORDINANCE being duly passed and adopted this 30 day of June , 2014 JOHNSTON COUNTY BOARD OF COMMISSIONERS ______________________________________________ Jeffrey P Carver , Chairman ________________________________________________ Paula G Woodard , Clerk to the Board There being no further business , Commissioner Cookie Pope moved the Board adjourn Commissioner Ted G Godwin seconded the motion , which carried by unanimous vote The meeting adjourned at 8 30 am Jeffrey P Carver , Chairman Paula G Woodard , Clerk to the BoardPage