June 29, 2015 - 8:15 AM - County Board of Commissioners Meeting Minutes (Special)

10 639 Meeting of the Johnston County Board of Commissioners June 29 , 2015 Special Meeting The Johnston County Board of Commissioners met in special session Monday , June 29 , 2015 at 8 15 am in the Commissioners Meeting Room , Johnston County Courthouse Annex , Smithfield , North Carolina The following members were present Present Chairman Tony Braswell , Vice Chairman DeVan Barbour , Cookie Pope , Allen L Mims , Jr , Jeffrey P Carver , 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 , County Attorney Jennifer J Slusser , and Paralegal Deputy Clerk to the Board Dana Cuddington Chairman Tony Braswell called the meeting to order to consider the adoption of the FY 2015 - 2016 County budget and related matters 1 Budget Revisions At the request of Finance Director and Assistant County Manager Chad McLamb , Commissioner Jeffrey P Carver moved the Board approve the following budget revisions , seconded by Commissioner DeVan Barbour , and carried by unanimous vote 911 - Communications BUDGET REQUESTED CHANGE FUND LINE ITEM CLASSIFICATION EXPENDITURE CODE INCREASE DECREASE 45 52081600 Maintenance & Repair 25,00000 TOTAL NET EXPENDITURES 25,00000 BUDGET REQUESTED CHANGE FUND LINE ITEM CLASSIFICATION REVENUE CODE INCREASE DECREASE 45 520836136 Enhanced 911 25,00000 TOTAL NET REVENUE 25,00000 Sheriff BUDGET REQUESTED CHANGE FUND LINE ITEM CLASSIFICATION EXPENDITURE CODE INCREASE DECREASE 10 51001400 Travel 4237 10 51001700 Vehicles 2,33060 10 51003100 Fuels 12000 10 51004300 Special Services 2,18578 TOTAL NET EXPENDITURES 4,67875 BUDGET REQUESTED CHANGE FUND LINE ITEM CLASSIFICATION REVENUE CODE INCREASE DECREASE 10 510032509 Insurance Recovery 2,08560 510033099 Miscellaneous Revenue 2,59315 10 TOTAL NET REVENUE 4,67875 2 Resolution In Support of Governor Pat McCrory’s Connect NC Bond Proposals At the request of Chairman Tony Braswell , upon a motion by Commissioner Ted G Godwin , seconded by Commissioner Cookie Pope , and carried by unanimous vote , the Board adopted the following resolution in support of Governor Pat McCrory’s Connect NC Bond initiative RESOLUTION IN SUPPORT OF GOVERNOR PAT MCCRORY’S CONNECT NC BOND PROPOSALS WHEREAS , Governor Pat McCrory has proposed a 285 billion bond initiative to build roads , upgrade technology , construct and improve educational facilities , enhance medical services , support ourPage640 June 29 , 2015 – 8 15 am Continued military installations , improve parks and recreation facilities , and building and improving port and rail infrastructure ; and WHEREAS , these strategic investments , as proposed , are designed to benefit every community across North Carolina and will create jobs and improve the quality of life and environment for every North Carolinian ; and WHEREAS , because of North Carolina’s fiscal strength and strong balance sheet , no tax increase will be required to fund these bonds and further , the State’s AAA bond rating will be preserved ; and WHEREAS , by not addressing our serious infrastructure deficiencies now , our State will lose its ability to compete in the future , interest rates will likely rise , costs to taxpayers will increase , congestion will worsen , and jobs will not expand at the rate needed to sustain a healthy and vibrant North Carolina ; and WHEREAS , the citizens of North Carolina must be allowed to make the important decision of investing in the opportunities provided for our future generations through the Connect NC Bond Initiative NOW , THEREFORE BE IT RESOLVED that the Johnston County Board of Commissioners does hereby support Governor Pat McCrory’s Connect NC Bond Initiative and encourages the North Carolina General Assembly to allow North Carolina’s citizens to vote on this critical bond proposal to ensure North Carolina’s future on the global stage th ADOPTED , this 29 day of June 2015 3 Adoption of the Fiscal Year 2015 - 2016 County Budget Motion to adopt the Fiscal Year 2015 - 2016 County Budget Commissioner Chad M Stewart moved the Board adopt the County Manager’s proposed Fiscal Year 2015 - 2016 Budget with the following revisions ? Add 800,000 to Johnston County Schools ; ? Appropriate 30,000 for Benson Court Theatre Restrooms Project ; ? Appropriate 25,000 to Harbor , Inc ; ? Appropriate a one - time additional 18,000 to Juvenile Crime Prevention Council to work specifically with Teenagers in Court Program ; ? Add 200,000 to Register of Deeds revenue projections and 200,000 expense for conveyance excise tax on deeds ; ? Add 200,000 to Building and Inspections revenue projections ; ? Add 10,000 to NC Forestry Service ; ? Add 10,000 for Fire Department First Responders ; ? Appropriate 3,000 to Johnston County Arts Council ; ? Set the Board appointed positions salaries effective July 1 , 2015 as follows and adjust salary expense ? County Manager 167,000 ? Clerk to the Board 57,000 ? County Attorney 122,700 ? Tax Administrator 97,000 ? Per the recommendation of the EMS Budget Workgroup , approve the EMS contract agency budget requests ; ? Per the recommendation of the Fire Tax Budget Workgroup and the Smithfield Fire Protection District Commission fire tax board , approve a 1 cent rural fire district tax rate increase ; and ? Per the recommendation of the Research Training Zone Board , continue the 8 cent tax rate for the Research Training Zone Page641 June 29 , 2015 – 8 15 am Continued Commissioner Stewart stated this motion would put the final budget at 202 million , and per the County Manager , the Fund Balance percentage on June 30 , 2016 is estimated to be 16 Commissioner Cookie Pope seconded the motion Discussion Commissioner Allen L Mims , Jr expressed his concern with the estimated Fund Balance percentage at 16 and stated he hopes that is a conservative estimate and will come in higher than expected County Manager Rick J Hester stated the 16 projection is a conservative estimate Commissioner Ted G Godwin asked how many fire departments are first responder departments Commissioner Chad M Stewart stated there are 20 first responder fire departments Chairman Tony Braswell clarified the additional 10,000 proposed in Commissioner Stewart’s motion would be an overall allocation on top of what the County Manager has already proposed in the budget for the first responder fire departments Commissioner Jeffrey P Carver stated regarding appropriations to non - profit organizations he thinks the Board needs to look more closely at those agencies especially the ones that provide a service whereby the County would otherwise have to fill that void Commissioner Carver stated organizations such as Community & Senior Services , JCATS , Harbor , the volunteer fire departments , etc are a safety net for the County so the County does not have to grow government Commissioner Carver suggested appointing a workgroup to study the issue of funding for non - profits more closely Chairman Braswell stated the Board could look at establishing a workgroup to study the issue and further define and clarify the Board’s position with regards to funding non - profits Commissioner Godwin commented that Commissioner Carver makes a good point because in the absence of organizations such as Harbor , the County would be looking at how to fill that need There being no further discussion , the Chairman called for a vote on the motion Vote The motion to adopt the Fiscal Year 2015 - 2016 County Budget carried by unanimous vote The following budget ordinance for the Fiscal Year 2015 - 2016 was adopted BUDGET ORDINANCE FY 2015 - 2016 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 , 2015 and ending June 30 , 2016 ; the same being adopted by fund and activity within each fund as listed GENERAL FUND EXPENDITURES GENERAL GOVERNMENT 16,163,246 PUBLIC SAFETY 32,871,797 PHYSICAL DEVELOPMENT 9,386,138 HUMAN SERVICES 46,861,642 EDUCATION 59,618,000 DEBT SERVICE 37,355,503 TOTAL 202,256,326 REVENUES Page642 June 29 , 2015 – 8 15 am Continued CURRENT YEAR AD VALOREM TAX 116,271,000 SALES TAX 31,401,021 OTHER TAX REVENUES 2,242,000 STATE & FEDERAL 31,387,695 LICENSE , FEES , ETC 6,918,050 INVESTMENT INCOME 40,000 TRANSFER FROM OTHER FUNDS 1,962,620 FUND BALANCE APPROPRIATED 3,962,737 MENTAL HEALTH 0 NC EDUCATION LOTTERY 2,300,000 SALES AND SERVICE 5,771,203 TOTAL 202,256,326 TOURISM AUTHORITY EXPENDITURES 1,108,820 REVENUES OCCUPANCY TAX 1,058,750 INTEREST INCOME 500 MISCELLANEOUS INCOME 2,500 WEB ADVERTISING 43,070 REIMBURSEMENTS 4,000 TOTAL 1,108,820 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 0 INDUSTRIAL INFRASTRUCTURE FUND EXPENDITURES INDUSTRIAL DEVELOPMENT 4,019,200 REVENUES TRANSFER FROM GENERAL FUND 3,700,000 FUND BALANCE 319,200 TRANSFER FROM OTHER FUNDS 0 TOTAL 4,019,200 LEO SEPARATION FUND EXPENDITURES PROGRAM COST 204,000 REVENUES TRANSFER FROM GENERAL FUND 210,000 FUND BALANCE 0 TOTAL 210,000 HERITAGE COMMISSION FUND EXPENDITURES OPERATING EXPENSE 222,172PagePage pageNumber5643 June 29 , 2015 – 8 15 am Continued REVENUES TRANSFER FROM GENERAL FUND 145,388 OTHER REVENUES 76,784 TOTAL 222,172 SOCIAL SERVICE TRUST FUND EXPENDITURES PROGRAM COST 155,000 REVENUES TRUST RECEIPTS 155,000 MENTAL HEALTH FUND EXPENDITURES OPERATION OF CENTER 3,018,638 REVENUES FEDERAL GOVERNMENT 0 STATE GOVERNMENT 2,382,530 TRANSFER FROM GENERAL FUND 350,000 ABC - FIVE CENT PER BOTTLE TAX 45,000 ABC PROFITS 6,000 FEES AND CHARGES 1,500 INTEREST INCOME 175 FUND BALANCE 233,433 TOTAL 3,018,638 COMMUNICATION FUND EXPENDITURES E - 911 OPERATIONS 4,294,732 REVENUES ENHANCED 9 - 1 - 1 4,294,732 OTHER COLLECTIONS EXPENDITURES SPECIAL DISTRICT TAX 7,802,000 MOTOR VEHICLE TAX 12,756,300 MOCCASIN CREEK DISTRICT TAX 35,000 TOTAL 20,593,300 REVENUES SPECIAL DISTRICT TAX 7,802,000 MOTOR VEHICLE TAX 12,756,300 MOCCASIN CREEK DISTRICT TAX 35,000 TOTAL 20,593,300 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 1,988,419 CAPITAL COST 785,400PagePage pageNumber6644 June 29 , 2015 – 8 15 am Continued TOTAL 2,773,819 REVENUES FEDERAL GRANTS 661,500 FEES AND SERVICES 1,877,015 INVESTMENT INCOME 200 TRANSFER FROM GENERAL FUND 73,500 FUND BALANCE 161,604 TOTAL 2,773,819 HOUSING ASSISTANCE PAYMENT PROGRAM FUND EXPENDITURES PROGRAM COST 3,581,090 REVENUES FEDERAL GOVERNMENT HUD 3,580,754 INVESTMENT INCOME 336 TOTAL 3,581,090 WATER DISTRICTS EXPENDITURES DEBT SERVICE 4,150,575 OPERATIONS 6,007,725 TRANSFER TO OTHER FUNDS 1,816,700 TOTAL 11,975,000 REVENUES RETAIL WATER 4,625,000 MONTHLY BASE FEE 6,600,000 OTHER REVENUE 750,000 TOTAL 11,975,000 PUBLIC UTILITIES EXPENDITURES ADMINISTRATION 1,046,400 SOLID WASTE 6,855,100 WATER 9,023,250 WASTE WATER 5,221,175 TRANSFER TO GENERAL FUND 150,000 DEBT SERVICE - WATER 5,823,855 DEBT SERVICE - WASTEWATER 2,573,625 TOTAL 30,693,405 REVENUES ADMINISTRATION FEES 963,400 SOLID WASTE FEES 6,795,100 WATER FEES 12,095,650 WASTE WATER FEES 7,510,000 DISPOSAL TAX 60,000 FUND BALANCE - ADMINISTRATION 233,000 FUND BALANCE – SOLID WASTE 190,545 FUND BALANCE - WATER 1,234,755 FUND BALANCE - WASTEWATER 284,800 TRANSFER FROM GENERAL FUND – SOLID WASTE 975,000 TRANSFER - WATER 1,516,700 TOTAL 31,858,950PagePage pageNumber7645 June 29 , 2015 – 8 15 am Continued 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 , 2015 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 14,514,574,805 and an estimated collection rate of 9971 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 The following fee adjustments for water and wastewater are adopted Effective July 1 , 2015 • Retail Water Meter Fee An increase of 2500 per ¾ ” meter from 21500 to 24000 per meter to cover the actual material cost of new meters • Residential Conservation Rate For all residential retail water services as follows o 0 – 4,000 gallons 325 1,000 gallons current usage rate o 5,000 – 9,000 400 1,000 gallons o 10,000 – 14,000 gallons 475 1,000 gallons o 15,000 + gallons 525 1,000 gallons • Water District Contract Services Rate An increase of 010 per 1,000 gallons from 115 per 1,000 gallons to 125 per 1,000 gallons Effective September 1 , 2015 • Residential Septage Disposal Rate An increase of 1000 per ton from 1400 per ton to 2400 per ton • Bulk Sludge Processing and Disposal Rate An increase of 150 per dry ton from 700 per dry ton to 850 per dry ton 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 2015 - 2016 A Pay Plan There is hereby adopted a pay plan which includes 225 cost - of - living for FY 2015 - 2016 as well as funds for the internal pay classification review to be implemented on November 1 , 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 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 PagePage pageNumber8646 June 29 , 2015 – 8 15 am Continued 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 2015 - 2016 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 12 cents Strickland Crossroads Fire District 8 cents Thanksgiving 9 centsPagePage pageNumber9647 June 29 , 2015 – 8 15 am Continued 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 , 2015 , 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 , 2015 , 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 , 2015 , located within the district th The ORDINANCE being duly passed and adopted this 29 day of June , 2015 JOHNSTON COUNTY BOARD OF COMMISSIONERS ______________________________________________ Tony Braswell , Chairman ________________________________________________ Paula G Woodard , Clerk to the Board Commissioner Ted G Godwin thanked his fellow Commissioners for scheduling the budget meetings so he could attend them since he was out of town for a portion of June Commissioner Chad M Stewart thanked County Manager Rick Hester , Finance Director and Assistant County Manager Chad McLamb , the Finance staff and all the staff that worked with him throughout the budget process Chairman Tony Braswell thanked all the Department Heads and the staff for their great work and assistance during the budget preparation and discussion process Commissioner Cookie Pope thanked Director of 911 - Communications Jason Barbour for all his work recently on a 911 project There being no further business , Commissioner Cookie Pope moved the Board adjourn Commissioner Jeffrey P Carver seconded the motion , which carried by unanimous vote The meeting adjourned at 8 23 am Tony Braswell , Chairman Paula G Woodard , Clerk to the BoardPage