January 30, 2009 - 3:00 PM - County Board of Commissioners Meeting Minutes (Special)

10 203 Meeting of the Johnston County Board of Commissioners January 30 - 31 , 2009 Special Meeting Retreat The Johnston County Board of Commissioners met in special session Friday , January 30 , 2009 and Saturday , January 31 , 2009 at the City Hotel & Bistro located at 203 SW Greenville Boulevard , Greenville , North Carolina The following members were present Present Wade M Stewart , Chairman , Allen L Mims , Jr , Vice Chairman , Cookie Pope , Jeffrey P Carver , W Ray Woodall , DeVan Barbour , and Tony Braswell Absent None Also Present Rick J Hester , County Manager , Paula G Woodard , Clerk to the Board , J Chad McLamb , Finance Officer , Tyson Radford , Assistant Finance Officer , Martha Lasater , Debt and Grant Management Analyst , Melissa A Daughtry , Paralegal Deputy Clerk , and Lalla Sidbury , Facilitator Chairman Wade M Stewart called the meeting to order at 3 00 pm and asked everyone to observe a moment of silence in honor of the late North Carolina State University Women’s Basketball Coach Kay Yow 1 Expectations Review of Agenda The Chairman turned the meeting over to Facilitator Lalla Sidbury who reviewed with the Board the proposed agenda and went over the suggested ground rules for the retreat Following the review of the agenda , the Commissioners briefly discussed their expectations for the work session , as follows • Commissioner DeVan Barbour stated he hoped to leave the retreat with a better comfort level on the County’s budget as well as a plan on how to deal with any potential shortfalls without burdening the taxpayers Commissioner Barbour added he would also like to have a good understanding on the Comprehensive Land Use Plan and the associated implementation strategies • Commissioner Tony Braswell stated he would like for the Board to establish a roadmap of sorts for Johnston County to follow , not only this year , but for years to come He noted he would like to discuss capital improvements related to the courthouse and adjacent structures looking ahead 10 or 15 years Commissioner Braswell added that a list of goals to work on this year and review next year to see what has been accomplished would be helpful • Commissioner W Ray Woodall agreed with Commissioner Barbour in that he would like to establish a plan to work within the budget and avoid a tax increase on the citizens Commissioner Woodall commented he hopes the Comprehensive Land Use Plan can be put into place as well as plans regarding future courthouse and jail space needs • Commissioner Cookie Pope reminded everyone that the capital improvement needs of Johnston County Schools will have to be reviewed at budget time Commissioner Pope echoed the previous remarks by her fellow Commissioners that she would like to work through the budget without implementing a tax increase • Commissioner Allen L Mims , Jr added he hopes to leave the retreat with all the Board members being in agreement with each other on any decisions regarding the budget , capital improvements , etc • Commissioner Jeffrey P Carver emphasized the importance of developing a plan to ensure the County can operate without a tax increase He stated he hoped the retreat will be a proactive planning session Commissioner Carver noted that he also would like to set expectations for the current year and revisit them next year to see what has been accomplished He commented on the need to finalize the Comprehensive Land Use Plan and noted that with the current economic slowdown , now is the time to make changes • Chairman Wade M Stewart stated he would like to leave the retreat with a consensus on the objectives that will be laid out He agreed with Commissioner Braswell that the County needs to establish a roadmap for future capital improvements while remaining cautious of the fiscal constraints Page204 January 30 - 31 , 2009 – Continued 2 Annual Financial Update – Davenport & Company , LLC David Rose and Kyle Laux , with Davenport & Company LLC , gave the annual financial update presentation , which included the following points Goals & Objectives • Provide Johnston County with an update on its financial standing especially as it relates to capital funding • Update the County’s pro - forma debt capacity and affordability recognizing that the national economy is in recession • Ensure that key debt ratios are maintained within the County’s financial policy guidelines • Analyze the County’s projected capacity to issue debt above and beyond the remaining balance of the 2007 referendum while maintaining compliance with its existing debt policies Background Events 1 July 2 , 2008 • Standard & Poors upgrades Johnston County’s credit rating from “ AA ” to “ AA + ” … one step from “ AAA ” • Moody’s affirms Johnston County’s rating of “ Aa3 ” • The Standard & Poors upgrade is the second straight upgrade from S & P and the fourth upgrade in the last eight years for Johnston County 2 July 9 , 2008 • Johnston County successfully sells 303 million of general obligation bonds at an all - in interest rate of 407 • The all - in interest rate was nearly 50 basis points below the bond buyer index at the time 456 and nearly 100 basis points below the estimates for cash - flow planning 500 • Over the life of the loan , the actual results translate into debt service savings of roughly 28 million versus the estimate for cash - flow planning 3 September 25 , 2008 • The County successfully closes on a 30 million installment payment financing to complete the Cleveland High School • The High School completion financing resulted in an all - in interest rate of 414 • The actual interest rate was over 100 basis points below the bond buyer index at the time 523 and 86 basis points below what was estimated for cash - flow planning 500 • Over the life of this loan , the final interest rate translates into roughly 30 million in debt service savings versus the estimates for cash - flow planning Overview of Credit Rating Scale Commissioner Allen L Mims , Jr asked if the bond ratings would be as significant in the future , noting that the bond rating agencies have recently come under scrutiny for some of their findings Mr Rose agreed that the rating agencies have come under a great deal of scrutiny lately and he noted there may be some reorganization occurring under the new President’s administration However , Mr Rose stated he believed that the ratings have become more important than ever before for governmental entities Mr Rose reminded the Board that with the higher ratings comes significant savings on interest County Manager Rick Hester stated the County has been very fortunate to receive rating upgrades from Standard & Poors and asked if an increase could be expected in the future from Moody’s Mr Rose explained that typically , the rating agencies only grant increases every three years and one issue that has prevented an increase from Moody’s is the County’s current per capita income level Mr Laux reviewed the following observations with the Board Credit Market Observations • In the fall of 2008 , as a result of the financial crisis , tax exempt interest rates increased substantially from their historically low levels • In the first month of calendar year 2009 tax - exempt interest rates fell from their calendar year 2008 high • The outlook going forward is unclear As such , in order to be conservative , Davenport has revised the interest rate assumptions for pro - forma upward planning from 50 to 60 Page205 January 30 - 31 , 2009 – Continued • When viewed over a 30 year time horizon , tax exempt - interest rates are still at historically favorable levels • The financial crisis has also made credit relatively more difficult to obtain than in the prior years • However , the County’s very strong investment grade credit ratings help to ensure access to the credit markets when needed • Maintaining Enhancing its credit ratings into the future will be key to ensuring that the County is able to access the credit markets and continue to borrow at a competitive cost of funds Financial Policy Guidelines Fund Balance • Fund balance available for appropriation fell in Fiscal Year 2007 - 2008 versus the prior year , but remains in compliance with the County’s policy level 15 of operating budget Capital Planning Update • As of January 2009 , 629 million of the 1127 million 2007 referendum for public schools , community college , and recreation projects has been issued o The remaining 498 million is planning to be issued in calendar years 2009 and 2010 Capital Planning Update – Key Assumptions • Recognize that the national economy is in recession As such , project growth in the tax base , and revenues to reflect this national downturn 1 Historical and projected growth of assessed value as follows a 5 year historical average annual growth 568 b 10 year historical average annual growth 890 c Projected annual growth as follows i FY 09 - 10 32 ii FY 10 - 11 32 iii FY 11 - 12 to FY 15 - 16 450 iv FY 16 - 17 and thereafter 300 d All scenarios assume that 25 of the national growth in the tax base is dedicated to debt service 2 Value of one penny on the property tax rate 1,145,106 FY 08 - 09 3 Next re - assessments planned to be effective in FY 2011 - 2012 and FY 2015 - 2016 a In Scenario 1B and 2B , the potential additional growth from re - assessment has been incorporated These scenarios assume growth in property tax revenue in re - assessment years of 725 4 Dedication of 31 million per year of lottery proceeds to offset debt service beginning in FY 2009 - 2010 This revenue is the equivalent of roughly 3 cents on the property tax rate 5 Revenue from growth in sales tax revenue has been removed from analysis 6 Future debt structured as follows a 15 to 2 years interest only payments b 17 year structured principal amortization c 600 estimated borrowing rate Projected Cash - Flow Impact Scenario 1A – Existing Debt + Balance of 2007 Referendum , No Reassessment • No potential impact from re - assessment incorporated • With existing debt service and the balance of the 2007 referendum incorporated , additional revenue will be required beginning in FY 2009 - 2010 to cover debt service • When equated to the property tax rate , the additional revenue required corresponds to roughly 45 cents over a 3 year period Projected Cash - Flow Impact Scenario 1B – Existing + Balance of 2007 Referendum , Reassessment • Potential impact from re - assessment incorporated • With existing debt service and the balance of the 2007 referendum incorporated , additional revenue will be required beginning in FY 2009 - 2010 to cover debt service • When equated to the property tax rate , the additional revenue required corresponds to roughly 35 cents over a 2 year period Impact on Financial Policies – Debt Service vs Revenues • Under current assumptions , the County is projected to reach the maximum level of its debt service vs revenues policy in FY 2011 - 2012 Impact on Financial Policies – Debt Service vs Revenues • Under current assumptions , the County is projected to maintain compliance with its debt vs total assessed value policy Projected Future Debt Capacity • Davenport has also analyzed the County’s ability to issue additional debt ie , over and above the balance of the 2007 referendum while maintaining compliance with its financial policies Under the current growth assumptions , the County’s estimated ability to incur additional indebtedness , while maintaining compliance with debt related financial policies , is projected , as follows Page206 January 30 - 31 , 2009 – Continued Projected Cash - Flow Impact Scenario 2A – Existing + Balance of 2007 Referendum + Additional Capacity , No Reassessment • The projected cash flow impact of issuing debt up to the County’s projected capacity equates to roughly 59 cents over a multi - year period • No potential impact from re - assessment incorporated Projected Cash - Flow Impact Scenario 2B – Existing + Balance of 2007 Referendum + Additional Capacity , Reassessment • The projected cash flow impact of issuing debt up to the County’s projected capacity equates to roughly 35 cents over a multi - year period • Potential impact from re - assessment incorporated Summary Observations 1 Johnston County has strong credit ratings and solid reserve levels Maintaining these two key positive attributes will help ensure the County has access to the credit markets at a competitive cost of funds 2 Under current assumptions , the first capacity for additional indebtedness ie , over and above the balance of the 2007 referendum begins on about Fiscal Year 2011 - 2012 Davenport , in concert with County staff , will continue to monitor the County’s debt capacity debt affordability as the national economic environment evolves 3 Additional revenues will likely need to be identified to fully fund debt service going forward Mr Laux concluded his presentation by noting that Johnston County’s management is viewed as a very strong component by the rating agencies Commissioner Mims questioned if the County would be better to hold smaller bond referendums over time , rather than one large referendum to address school construction Mr Rose reported it is the amount of debt each year that the County incurs that has the substantial impacts rather than the amount of the referendum Chairman Wade M Stewart commented that with the current state of the economy , it may be more difficult for the citizens to approve a larger referendum due to the fear of a tax increase The Board took a five minute recess 3 Capital Improvement Planning Dan Mace and Carolyn Kibler , with Moseley Architects , addressed the Board and presented options related to the future jail and courthouse space needs At the request of Chairman Wade M Stewart , Sheriff Steve Bizzell recognized Captain Bonnie Strickland , Jail Administrator , and complimented her efforts for the County Sheriff Bizzell informed the Board that he has been in discussions with Moseley in an effort to prepare for the future Sheriff Bizzell stated the County will have to have another jail and he would like to work with the Board of Commissioners on finding the best solution At the inquiry of Commissioner Tony Braswell , Sheriff Bizzell reported the current jail capacity is 191 ; however , he commented that last summer , they were averaging 238 inmates per day and they are currentlyPagePage pageNumber5207 January 30 - 31 , 2009 – Continued housing 221 inmates with the number expected to increase over the week - end Sheriff Bizzell stated the last several jail inspections have indicated problems with overcrowding Chairman Stewart thanked the Sheriff for his patience as well as his efforts to work with the court system to process inmates in a timely fashion to help address jail overcrowding Chairman Stewart stated the capacity to incur debt for a new jail is not presently available ; however , he acknowledged that a plan must be put on paper for the future Mr Mace reported Moseley has developed two options for a future jail expansion He noted one option would be to expand the County’s current facilities in downtown Smithfield , and the other option would involve constructing a new jail facility on a remote site Ms Kibler addressed the Board and stated the County has a unique policy in that it will accept federal inmates , and if all of the allocated positions were accepted , the numbers are of great concern She reported that in an analysis completed in March 2008 , if the County constructs a facility for 250 additional beds , the County will be at capacity by the year 2015 If a facility were constructed to house 300 additional beds , the capacity could be stretched until 2025 Ms Kibler noted there are 91 beds available in the basement of the courthouse annex that could be moved to the new facility , thereby freeing up the annex basement space for storage , courtroom space , County offices , etc Ms Kibler reviewed with the Board an option to construct an expansion in downtown Smithfield , adjacent to the courthouse She reported one scenario for downtown could be a five story high - rise structure that would take up less parking ; however , it could possibly dwarf the other structures located downtown as well as some of the buildings located on the site would have to be demolished Ms Kibler also presented an option for a two - story facility with an expanded footprint ; however , she cautioned the option would take up more parking spaces and may require the purchase of additional properties Mr Mace added that the Board needed to be aware that multiple levels present more of a security issue for the jail personnel At the inquiry of Commissioner Allen L Mims , Jr , Mr Mace reported the cost of construction can increase when contractors have to work in confined spaces , such as downtown areas He stated additional areas are required for the storage of equipment and materials throughout the construction process Ms Kibler reported on a second option concerning a remote site for a new Public Safety Building Ms Kibler stated a site would have to be located and acquired for the building and would need to be large enough to accommodate future expansions Ms Kibler stated one disadvantage to a remote site would be inmate transportation issues ; however , she noted the existing jail located on the top floor of the courthouse could be utilized as a holding area for those inmates scheduled to appear in court Ms Kibler noted video conferencing could also be utilized for first appearances She explained a remote site could allow the new Public Safety Building to be constructed as a single story structure , which is safer for jail personnel Further , if the facility will have a fenced containment area , jail standards call for the area to be 50 feet away from the door , which is not available in the downtown area Mr Mace stated Moseley has put together preliminary ballpark estimates and the current construction environment is favorable for bidding He pointed out that if the Board were to decide on a facility today , the process would take 2 ½ years to complete Chairman Stewart questioned the anticipated increase in the inmate population estimates , noting that ten years ago , the County averaged 175 inmates and today that number has only risen to approximately 220 Sheriff Bizzell reminded the Board that he has to take into account the federal inmates , which totals 60 additional spots on any given day County Manager Rick Hester asked Mr Mace if he had specific cost estimates Mr Mace reported to construct a facility in downtown Smithfield near the courthouse ; the cost would be approximately 44 million ; while the cost to construct a facility on a remote site would be approximately 30 million for a 400 bed facility jail facility , with a 600 - bed core , including administrative offices and kitchen The scenario would eliminate the 91 - bed basement jail facility in the courthouse and allow it to be renovated for other space needs , while keeping the upstairs jail space to house those waiting for court PagePage pageNumber6208 January 30 - 31 , 2009 – Continued Captain Strickland asked the Board to consider the safety risks associated with a multi - level facility when making their decisions on a new structure Commissioners Jeffrey P Carver and Tony Braswell both remarked that if a building is constructed downtown , parking would have to be addressed After further discussion , it was the consensus of the Board that more time was needed on the issue and perhaps could be discussed again at the Saturday morning session under Board Comments The Board took a five minute recess 4 Water , Wastewater , and Solid Waste – Public Utilities Tim Broome , PE , Director of Utilities and Engineering , and Haywood Phthisic , Assistant Utilities Director presented an update to the Board regarding the needs for Water , Wastewater , and Solid Waste operations Water Mr Broome reviewed with the Board the following expenditures and revenues pertaining to Funds 67 – General Water System and 69 – Water Districts Expenditures Operation and Maintenance 5,635,000 Capital Outlay 3,264,000 Debt Service 4,541,000 Total 13,440,000 Revenues Bulk Sales 2,650,000 Retail Sales 8,850,000 Misc Revenue 300,000 Capacity Fees 750,000 Fund Balance 890,000 Total 13,440,000 Projected fund balance on 6 30 09 8,500,000 Other Total outstanding debt principal only 75,000,000 Salaries as a percentage of division budget 13 Mr Broome provided the Board with a financial model for Funds 67 and 69 and noted that with no fee adjustments , Water will be operating in a deficit by 2022 Mr Broome reported on the highlights of the 10 Year Capital Improvements Plan for Water , as follows • Magnetic ion exchange process – Phase 1 including HSP station and connecting transmission main • Western area reinforcing transmission mains • East Clayton area parallel transmission main for fire protection reliability • Western area elevated tank and booster pump stations • Annual small main extensions and looping mains – including fire hydrant additions • Magnetic ion exchange process - Phase 2 • WTP by - product water recycle system • WTP UV disinfection • Lower Neuse River water supply system – Phase 1 • Total Capital 91 million Mr Broome reviewed with the Board proposed fee adjustments for Water , as follows to offset the shortfall in revenues Monthly Base Fee – No Change Retail Commodity Fee – Add 010 per 1,000 gallons 330 Bulk Commodity Fee – Add 005 per 1,000 gallons 270 Capacity Fee – Add 025 per gpd 910 PagePage pageNumber7209 January 30 - 31 , 2009 – Continued Average residential monthly bill would increase from 2850 to 2945 Wastewater Mr Broome reviewed with the Board the following expenditures and revenues pertaining to Fund 68 – Wastewater Expenditures Operation and Maintenance 3,460,000 Capital Outlay 1,505,000 Debt Service 1,755,000 Total 6,720,000 Revenues Bulk Sales 3,230,000 Retail Sales 1,220,000 Misc Revenue 220,000 Assessment Fees 600,000 Fund Balance 1,450,000 Total 6,720,000 Projected fund balance on 6 30 09 6,500,000 Other Total outstanding debt principal only 19,000,000 Salaries as a percentage of division budget 20 Mr Broome noted that the current 19 million in total outstanding debt does not include the 175 million loan that will be used to expand the Wastewater Treatment Plant and interceptor lines Mr Broome reviewed with the Board the financial model for Fund 68 and noted that with no fee adjustments , Wastewater will be operating in a deficit by 2013 Mr Broome reported on the highlights of the 10 Year Capital Improvements Plan for Wastewater , as follows • Convert leachate pretreatment basin to wastewater flow equalization basin at landfill • 20 ” Cleveland area force main • East Clayton wwps and flow equalization basin • Various interceptors in Cleveland area to avoid new , or to abandon existing wwps ’ • Annual developer system upsizing • Landfill to wwtp parallel force main • New headworks for wwtp • Expand reclaimed water system JCC and lumber mills Cleveland area McGee’s Crossroads area Landfill system additions • Total Capital 28 million Mr Broome pointed out that the items in red are not included in the current financial model because the Public Utilities Department cannot afford to complete them at this time He noted that if the County were still growing at the rate it has over the last five years , the projects would have to be constructed ; however , until the residential growth numbers begin to rise , staff does not see the need Mr Broome reviewed with the Board proposed fee adjustments for Wastewater , as follows to offset the shortfall in revenues Bulk rate is increased by 020 per 1,000 gallons 67 Retail rate is increased by 300 in monthly base fee and 025 per 1,000 gallons 133 Assessment fee is increased by 25 Average residential monthly bill would increase from 3100 to 3525 At the request of Commissioner Tony Braswell , Mr Broome assured the Board that if the rate increases were implemented , staff would make every effort to give advance notice to the municipalities Mr Broome stated staff is hoping for economic stimulus funds to help with construction projects ; however , they are unsure ifPagePage pageNumber8210 January 30 - 31 , 2009 – Continued funding will come in the form of grants or loans He reported staff is in the process of preliminary design and administration in an effort to be “ shovel ready ” if and when funds are disbursed Solid Waste Operations Mr Haywood Phthisic , Assistant Utilities Director , reviewed with the Board the following expenditures and revenues pertaining to Fund 66 – Solid Waste Expenditures Operation and Maintenance 5,098,000 Capital Outlay 2,127,000 Debt Service 0 Total 7,225,000 Revenues Landfill Fees 4,507,000 Decal Sales 945,000 Recycling Fees & State Tax Reimbursement 378,000 Fund Balance 1,395,000 Total 7,225,000 Other Total outstanding debt 0 Salaries as a percentage of division budget 21 Mr Phthisic reported on the highlights of the 10 Year Capital Improvements Plan for Solid Waste , as follows • MSW Phase 4A , Cell 3 • Landfill Gas to Energy Project • Closure of C & D Area 1 Phase 4 • C & D Area 2 Cell 2 • MSW Phase 6 • C & D Area 3 • “ Annual ” Heavy Equipment Replacement • Total Capital 23 million Mr Phthisic stated staff has projected that the municipal solid waste stream will decrease by 12 this fiscal year , which will impact the revenue stream Commissioner Allen L Mims , Jr , stated he could understand why a decrease in the construction and demolition C & D waste is anticipated ; however , he questioned the decrease in municipal solid waste Mr Phthisic reported there are many items associated with construction that are not included in the C & D section of the Landfill and are disposed of in the municipal solid waste section He also pointed out that due to the downturn in the economy , people are not buying as many products as before Mr Phthisic reviewed with the Board a funding scenario with the Landfill Gas to Energy Project factored in , with no fee adjustments and no debt service taken into account He noted that in Fiscal Year 2010 - 2011 , operating only on the Solid Waste Division revenue , with the 6 million expenditure for the Landfill Gas to Energy Project , the Division will be pushing the limit on the 8 required fund balance by the Local Government Commission Mr Phthisic also reviewed with the Board another scenario that involves the Division borrowing 6 million at 4 interest for five years to fund the Landfill Gas to Energy Project and stated the fund balance would be in better shape under this scenario Mr Phthisic reported staff has been analyzing ways to increase the waste stream , thereby increasing the revenues He cautioned that if the County were to compete with other entities to bring in outside waste , the tipping fee may have to be adjusted in order to be competitive Mr Broome added that if the County were to accept outside waste , larger landfill cells would have to be constructed , thereby requiring more capital costs upfront Mr Broome noted that the Solid Waste Division revenue situation could be in better shape , if the County were able to find a way for the convenience site program to become self - sufficient PagePage pageNumber9211 January 30 - 31 , 2009 – Continued Mr Broome ended the presentation by reviewing the following conclusions and recommendations with the Board Conclusions • Water Funds 67 and 69 are currently “ healthy ” • Solid Waste Fund 66 is resilient but underperforming due to financial drain of the convenience center program • Wastewater Fund 68 is distressed and even if all capital improvements are deferred , fee and rate adjustments are essential • Fund 68 fee and rate adjustments will be painful at several levels Recommendations • Adjust wastewater service fees in FY 09 - 10 • Adjust water service fees in FY 09 - 10 • Make the convenience site program 100 self supporting within two to three years • Move forward with the LF Gas Project , subject to a final proforma showing positive cash flow • Support cost effective water and sewer service extensions • Support continued planning for growth which will eventually resume Commissioner W Ray Woodall inquired as to how many more miles of water line would need to be installed to serve all the outstanding requests Mr Broome responded he was unsure as to the exact mileage ; however , he noted the cost to fulfill all the outstanding requests totals approximately 500,000 Chairman Stewart asked how the County could justify rate increases to the customers Mr Broome proposed implementing a small increase in the near future so as not to greatly impact the customers later on Chairman Stewart commented that more in depth discussions are needed to address the Solid Waste Division , specifically the convenience site program and the possibility of accepting outside waste Following more discussion on the County’s Water , Wastewater , and Solid Waste needs , Mr Broome asked the Board to consider a work session in the spring to talk further about Public Utilities matters The Board took a 45 minute recess 5 Comprehensive Plan Update – Clarion Associates Roger Waldon , Associate with Clarion , informed the Board that he met with the Johnston County Planning Board on January 29 , 2009 and reviewed with them draft implementation strategies Mr Waldon presented the comments from the Planning Board meeting , as follows Planning Board Comments January 29 , 2009 Land Use Plan Workshop Coordination with Board of Education • More coordination between the County and the Board of Education • Envision that the County would work with the BOE and share information to assist in the site selection process • Acknowledged that the BOE had final authority with site selection based on statute with no interest of the PB to take that over • There should be no power struggle between the County and BOE • Concern with what happens before site selection takes place • BOE and BCC also need to work together with site selection in order to save money • There needs to be a breakfast or luncheon held regularly with PB , BCC , BOE and staff to review development trends so that everyone is on the same page Development Impacts on Schools • Need for impact assessments on schools as development takes place • Desire to have options to mitigate development impacts on schools • Concern from Larry Strickland that the rural areas would not allow for schools due to lack of sewer Even though rural , there are existing residents who need to be served Page0212 January 30 - 31 , 2009 – Continued Housing • Some concern that housing cost should not be regulated by the Board since it is market driven • Raw land prices increase as you get closer to the Wake County line which is not as affordable Transportation • Need for a Countywide Transportation Plan and formal adoption of the CAMPO area plan Conservation • Questioned determination of rural vistas • Noted that the JC Natural Area Inventory Don Stephenson & a Historic Structures Inventory would be a good resource to assist in identifying rural vistas • Conservation Easements need to be considered Development Impacts • Need Community Character Inventory with possible zoning overlay to allow PB to take character into consideration when approving subdivisions • Add more residential zoning districts to allow differing scales of development in the rural areas • Lighting impact and buffering for residential and commercial is already done by the PB to some degree • Interconnection between subdivisions is already done to some degree Need to look at sidewalks • Commercial interconnection may need to be looked at more • Impacts that farming has on new residential needs to be looked at and not fall through the cracks • Questioned how a farmer in the rural area might be able to develop land • Per Roger , possibly allow for cluster developments or other zoning options within the rural area including more open space Land Use Map • Add Blackman Crossroads as a neighborhood center Mr Waldon reported that , at the request of the Board of Commissioners in January , Clarion revisited the area in between Four Oaks and Benson along Interstate 95 and has now classified those locations as secondary growth areas Mr Waldon reviewed with the Board seven key planning themes to focus on in the implementation strategies , as follows Managing Growth and Infrastructure Expanding Economic Opportunity Providing Housing and Protecting Neighborhoods Preserving Farmland and Rural Character Protecting the Environment and Cultural Sites Enhancing Mobility Intergovernmental Coordination Mr Waldon noted in the implementation strategies , Clarion will be recommending ordinance amendments as well as the creation of a transportation plan for the County He stated Clarion also recommends that once the County adopts the document , to send it to all the municipalities and ask them to endorse the plan in order to further intergovernmental coordination Commissioner Tony Braswell reminded everyone that a transportation plan is a priority for the Rural Planning Organization and work will begin in the coming year Mr Waldon stated Clarion is prepared to put the draft plan together in its entirety and review it with the Planning Board in February , followed by a public hearing with the Board of Commissioners in March Motion to Send Entire Draft Plan to Planning Board and Schedule BOCC Public Hearing Commissioner Jeffrey P Carver moved the Board authorize Clarion to review the draft plan in its entirety with the Planning Board at their February meeting , followed by the Board of Commissioners to hold a public hearing at the March 2 , 2009 6 00 pm meeting Commissioner Tony Braswell seconded the motion Further Discussion Commissioner Allen L Mims , Jr noted that a Transfer of Developments Rights Program has been mentioned in the action strategies ; however , he commented that a density standard would have to be established prior to such a program being adopted Page1213 January 30 - 31 , 2009 – Continued Mr Waldon stated a density standard set by the County can be a powerful tool ; however , it would be a year - long process to establish He reported that Clarion could include in the appendix of the plan a definition and recommendations for the development of a Transfer of Development Rights Program Commissioner Mims remarked on the importance of the Voluntary Agricultural District Program He stated that if the Board decides to grant further ETJ expansions , that it should be a requirement for the municipality to acknowledge the districts within their boundaries until such time as they can create their own program Vote The motion carried by unanimous vote 6 Budget Update County Manager Rick Hester and Finance Director Chad McLamb provided the Board with an update on the budget Mr Hester reported after reviewing the revenue projections for the General Fund , as well as looking at the Department of Social Services funding in more detail , staff is expecting the budget to be out of balance approximately 17 million by the end of the fiscal year He reminded the Board that the 17 million is in addition to the 52 million that was taken from the General Fund to balance the FY 08 - 09 budget Mr Hester stated staff has projected the sales - tax receipts to be down by approximately 3 million and the ad valorem tax collections are expected to be down by approximately 900,000 from what was originally budgeted He noted that the projections are “ moving targets ” and staff would continue to monitor the figures going forward Mr Hester reported on measures implemented by staff to help offset the shortfall He noted the County has in place a modified hiring freeze that allows the hiring of essential personnel only , with some vacant non - essential positions being eliminated Mr Hester added that he has placed a freeze on capital outlay spending unless there is an emergency , as well as a freeze on technology related purchases Staff has identified an additional 1 million in the budget for purchases that can be delayed until next fiscal year New measures have been implemented to halt internal budget amendments involving transfers within departments and outside agencies funded by the County have been informed that their allocations will most likely not increase next fiscal year The Board thanked Mr Hester and the Finance staff for their report and instructed them to keep the Board informed Commissioner Allen L Mims , Jr moved the Board recess the meeting for the evening , and reconvene at 8 30 am Saturday Commissioner Cookie Pope seconded the motion , which carried by unanimous vote The meeting was recessed at 8 09 pm Chairman Stewart called the meeting back to order at 8 40 am Saturday , January 31 , 2009 7 2011 Revaluation Update Tax Administrator Pat Goddard reviewed with the Board a presentation on the 2011 Revaluation project She explained that a contract has been signed with Pearson Appraisals to perform the work and noted Pearson also performed the County’s 1995 revaluation The street level images project with Yotta Mobile Video is underway and should be completed by May 2009 Ms Goddard reported that Pearson has a small office in the Tax Department with three people working in the space County appraisers and Pearson staff are riding in vans together to take the new street level images and verify tax data A sales file is being built to monitor market sales throughout the County and property cards are being compared to Pictometry to verify taxable elements Ms Goddard reviewed the following information related to market conditions with the Board Market Information New Construction Starts Residential Permits issued Tax Year 2007 1619 Tax Year 2008 878 This is a 4577 drop from 2007 to 2008 - Some reduction due to town inspections Page2214 January 30 - 31 , 2009 – Continued Trustees Deeds from Foreclosures from Register of Deeds 2007 464 2008 522 This is a 125 increase from 2007 to 2008 In response to a question from Chairman Wade M Stewart , Ms Goddard reported the last revaluation was for 75,000 parcels and the 2011 Revaluation project is contracted for 95,000 parcels Ms Goddard recognized Sheila Garner , in the Tax Office , for her work She also stated the Tax Office is comprised of good employees and she appreciates their work Ms Goddard commented on the Board of Equalization and Review and noted their work will significantly increase after the revaluation project Chairman Wade M Stewart instructed staff to invite the Board of Equalization and Review to the March 2 , 2009 10 00 am meeting to be recognized for their work Commissioner W Ray Woodall complimented the Tax Department staff for their excellent customer service 8 Street Assessments Tim Little , PE , District Engineer with the North Carolina Department of Transportation , provided the Board of Commissioners with background information regarding the secondary road program and how a road is accepted into the State highway maintenance system He pointed out that any road constructed after October 1 , 1975 must be paved and in an acceptable form of maintenance for it to be accepted into the State maintained program By General Statute , if an individual can prove that a road existed prior to October 1 , 1975 , the DOT does have a program in place to bring those roads up to DOT unpaved standards The road will then be placed on the road paving priority list Following Mr Little’s presentation , the Board began a discussion regarding a potential street assessment program for Johnston County Mr Little reported the DOT looked at a street assessment program several years ago ; however , the cost to improve all the unpaved roads was prohibitive Mr Little stated if the County were to consider a street assessment program , specific criteria would need to be established before accepting requests from residential subdivisions Mr Little recommended the Board consider the following points for the program • Request for addition signed by at least “ X ” percentage of residents property owners • Complete set of construction plans required and sealed by professional engineer • Minimum housing of 2 homes per tenth of mile , with a minimum of 4 homes • Minimum 50 ’ public right of way must be dedicated for the length of the subject street and must connect to an existing state maintained road • Right of way must be cleared • All utilities must be located at or behind the right of way with exceptions for water lines • 100 Property Owner assessment Mr Little reviewed with the Board the following responsibilities of the DOT in an assessment program • DOT staff will provide quantities and a cost estimate to bring the road to DOT standards for addition to the state system • DOT may at the request of the county oversee the construction of the road which will be included in the cost estimate • Payment method to contractors Discuss • Selection of contractors Discuss • Addition of the road after completion He cautioned that the DOT is hesitant to take on any roads that contain bridges due to environmental concerns that may arise Mr Little recommended the County consider only implementing a program for unpaved roads He noted in the requests that may come in , not all the property owners in the subdivisions will be in favor of the assessment , so the County would have to establish a specific percentage rate of participation before going forward County Manager Rick Hester reported the idea of a street assessment program resulted from two requests the County received from residents in two subdivisions that asked for assistance to have their roads brought up to DOT standards and paved Mr Hester cautioned that in both of the requests , there would not be 100 participation because some of the property owners do not want to be assessed He explained that the TaxPage3215 January 30 - 31 , 2009 – Continued Office would be responsible for assessing the property owners in the subdivisions to repay the construction cost of the project Mr Hester recommended the Board to set the participation rate at a high number before proceeding with the effort Commissioner Allen L Mims , Jr stated there were many factors that would need to be addressed and agreed upon before implementing the program such as participation rates , assessment formulas , and how much the County could afford to allocate to the program each year Tax Administrator Pat Goddard called to everyone’s attention that if a property owner were assessed for the project in their subdivision and did not pay , it could result in the foreclosure of their property , just as it would if the property owner failed to pay their taxes Commissioner Jeffrey P Carver expressed concern over the program indicating that property owners should perform their own due diligence before buying their homes Commissioner Carver commented that the County has many other funding issues and priorities at the present time Commissioner Mims stated the County would be a mechanism to get the project completed and the property owners would ultimately repay the County for the service Commissioner Mims reiterated that there were many factors to be decided upon before the program could be implemented Chairman Wade M Stewart expressed his support for the concept , noting that if the County were to front the money , it would be paid back through the assessment program Following further discussion , and a consensus to explore the initiative further from Commissioners Stewart , Mims , Pope , Barbour , Braswell , and Woodall , the Chairman instructed the County Manager to draft a policy for the Board to consider The Board took a five minute recess 9 Board Comments and Review Facilitator Lalla Sidbury pointed out that many of the issues discussed at the retreat would need more time and review before any formal decisions could be made She asked the Board members how they would like to proceed Chairman Wade M Stewart stated there are a number of issues that the Board needs to discuss in more detail and suggested that perhaps Saturday morning sessions could be scheduled to cover specific topics Commissioner Tony Braswell suggested that on the first Monday of each month , once the 10 00 am meeting is adjourned , perhaps the Board could break for lunch and come back in the afternoons to meet on one issue each month , prior to the 6 00 pm rezoning meeting He stated the Board could begin the afternoon sessions at the March 2 , 2009 meeting Commissioner Braswell suggested it may be appropriate for the Board to formally adopt a set of goals to follow involving the Comprehensive Land Use Plan , a Capital Improvements Plan , Public Utilities , etc It was the unanimous consensus of the Board to begin holding afternoon sessions on the first Monday of each month , beginning with discussions on the jail capital improvements plan on March 2 , 2009 After a self - critique of the retreat by Board members , and the conclusion that there was no further business , Commissioner W Ray Woodall moved the Board adjourn Commissioner Cookie Pope seconded the motion , which carried by unanimous vote The meeting adjourned at 10 20 am Wade M Stewart , Chairman Paula G Woodard , Clerk to the BoardPage