June 20, 2007 - 5:30 PM - County Board of Commissioners Meeting Minutes (Special)

10 286 Meeting of the Johnston County Board of Commissioners June 20 , 2007 Special Meeting The Johnston County Board of Commissioners met in special session Wednesday , June 20 , 2007 at 5 30 pm in the Commissioners Meeting Room , Johnston County Courthouse Annex , Smithfield , North Carolina The following members were present Present Cookie Pope , Chairman , Wade M Stewart , Vice Chairman , Allen L Mims , Jr , 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 , John R Massey , Finance Officer , J Mark Payne , County Attorney , and Deva C Holt , Deputy Clerk The Chairman called the meeting to order , and announced the purpose of the meeting is to consider the adoption of the 2007 - 08 County budget and related matters The Chairman asked for those wishing to speak on any subject not related to the budget process to please come forward 1 Budget Amendments At the request of Finance Officer John Massey and following discussion , Commissioner W Ray Woodall moved the Board approve the following budget amendments Commissioner Allen L Mims , Jr seconded the motion , which carried by unanimous vote Cooperative Extension FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION EXPENDITURE INCREASE DECREASE 10 58003435 Cooperative Extension Activities 10,00000 TOTAL NET EXPENDITURES 10,00000 FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION REVENUE INCREASE DECREASE 10 580033715 Cooperative Extension Activities - Revenues 10,00000 10,00000 TOTAL NET REVENUE Education FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION EXPENDITURE INCREASE DECREASE 16 63009098 Cost of Financing Schools 88,31000 TOTAL NET EXPENDITURES 88,31000 FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION REVENUE INCREASE DECREASE 16 630033099 Investment Income 88,31000 83,31000 TOTAL NET REVENUE Mental Health CURRENT INCREASE REVISED DESCRIPTION OF EXPENDITURES BUDGET DECREASE BUDGET Total Expenditures 12,500,00000 1,300,00000 11,200,00000 CURRENT INCREASE REVISED DESCRIPTION OF REVENUES BUDGET DECREASE BUDGET Federal 461,04700 24,80900 485,85600 State 6,477,81700 130,57200 6,608,38900 Transfer from General Fund 1,700,00000 000 1,700,00000 ABC Five Cent Bottle 25,00000 3,00000 28,00000 ABC Profits 6,00000 000 6,00000 Fees and Charges 3,590,13600 1,670,56700 1,919,56900 Interest 140,00000 39,30000 100,70000 Fund Balance 100,00000 251,48600 351,48600 TOTAL REVENUES 12,500,00000 1,300,00000 11,200,00000Page287 June 20 , 2007 Continued 2 Update on Two Existing Zoning Violations County Attorney Mark Payne updated the Board concerning two existing zoning violations regarding the use of commercial trucks on residential property Mr Payne noted at the June 11 , 2007 meeting , the Board discussed this issue and requested staff to keep everyone updated on the enforcement actions involved with the two violations Mr Payne reported staff has sent notices of violation to the two individuals stating they are in violation of the ordinance and if they do not contact the Planning Department with a plan for compliance , then civil penalties will ensue Mr Payne stated one of the individuals has retained an attorney who has contacted staff and stated his client would like to work on a plan of compliance as soon as possible Mr Payne noted that as of today , staff had not received a response from the other individual in violation and felt civil penalties would be forthcoming on this case 3 Revision to Contract with EMS Providers Emergency Services Director Dewayne West asked the Board to consider a revision to the contract with Emergency Medical Service providers that was approved in March 2007 Mr West noted the revision pertained to Section 2 , Training & Personnel , item n Mr West stated his office had met with all eight rescue squads and submitted the revision to them Mr West noted the rescue squads were in agreement with the revision and he asked for approval by the Board At the request of Commissioner Stewart , Mr West reported the revision now allows for a rest period of twenty - four hours between a twenty - four hour EMS shift and a twelve hour rest period before beginning any other shift combination Mr West reported this revision was needed to ensure the safety of the personnel and the patients Upon a motion by Commissioner Wade M Stewart , seconded by Commissioner Allen L Mims , Jr and carried by unanimous vote , the Board approved the following amendment to the EMS contract , Section 2 Training & Personnel , item n The Agency agrees to insure that employees have a rest period of 24 hours between a 24 hour EMS shift and 12 hour rest period before beginning any other shift combination This includes the rest periods between regular and part - time jobs in or out - of - county Employees shall not exceed 36 hours continuous work on a given EMS shift These requirements may be waived during times of disasters or other emergencies The Chairman announced the budget discussions would begin and asked for anyone wishing to speak on a budget related matter to come forward 4 Johnston Community College Herman Kight , Director of Finance for Johnston Community College , addressed the Board to request an increase in the College’s 2007 – 2008 County budget appropriation Mr Kight reported the request for the increase is to allow the college to improve campus security The first part of the request is to enable Johnston Community College to contract for a second security officer during the main class hours Mr Kight noted Johnston Community College currently contracts for one security officer to patrol the entire campus during the agreed hours of coverage which are from 7 30 am to 11 00 pm Monday through Friday These hours are divided into two shifts with a different officer covering each shift Mr Kight stated an environmental survey was performed at the College and the lighting and security were the two most unsatisfactory issues from students and staff The request would allow for a second security officer from 7 30 am to 11 00 pm Monday through Thursday and 7 30 am through 5 00 pm on Fridays Mr Kight stated the increased request amount would be 61,00000 Further , Mr Kight reported he had built into the request for the allowance to increase the police powers of the second officer , which are currently observe and report only Mr Kight reported the second portion of the request is for 10,00000 to fund the lease for new exterior lighting for approximately six months He noted the exterior lighting is needed to improve the safety on campus Mr Kight stated in summary the additional request is 71,00000 and asked for questions Mr Kight informed the Board he had made contact with five other colleges that are approximately the size of Johnston Community College in terms of FTE estimates , and all five of those colleges reported having two or more security officers on campus during class hours Upon a question from Commissioner Allen L Mims , Jr , Mr Kight reported he did not have statistics on the number of times the police have been called , but noted the campus has not experienced any major securityPage288 June 20 , 2007 Continued instances He noted the Smithfield Police Department does patrol the campus during the early morning hours ; however , the request is based on having more security during class hours to protect people Commissioner Tony Braswell asked Mr Kight to clarify if this request was based on increased instances Mr Kight reported the College does not feel like they are doing enough to protect people on campus and if a major instance does occur , he felt the College could possibly be cited for insufficient security In response to a question from Commissioner DeVan Barbour , Mr Kight verified the one security officer the College employs now is paid out of local funds and is classified as a “ watchman ” He noted the State Auditor’s office does interpret the term “ watchman ” to be security and must be paid with local funds 5 Challenge from Chairman Cookie Pope Chairman Cookie Pope congratulated everyone for the good work they do ; however , she issued a challenge for all present to “ think outside the box ” and look at ways of doing things differently Chairman Pope stated we do not always have to do everything the same and asked for everyone to be innovative , yet conservative as possible She noted Johnston County is one of the fastest growing counties in North Carolina and future challenges are certain Chairman Pope reiterated she challenged everyone to look for ways to make good things happen as inexpensively as possible 6 Johnston County Board of Education Fred Bartholomew , Chairman of the Johnston County Board of Education , addressed the Board and introduced the following representatives accompanying him Dr Anthony Parker – Superintendent Ms Ann Williams – Associate Superintendent of Facilities Services Mr Dan Jones – Associate Superintendent of Financial Services Mr Bartholomew stated as everyone was aware , Johnston County Schools is a growing school system and they have grown by 11,300 students in the last ten years He noted the school system expects to add another 1,500 students this upcoming school year Mr Bartholomew reported to accommodate the growth , they are opening a new middle school and are adding on to the existing schools of Micro - Pine Level , South Smithfield , Cooper , and Meadow He stated this growth comes with additional costs for utilities , maintenance , instructional supplies , and other operating expenses Mr Bartholomew stated on the capital side of expense , additional school buses are needed as well as student equipment allocations are increasing Mr Bartholomew informed the Board that operating cost increases cannot be controlled by the school system as they are set by the Legislature for items such as employee salary increases , hospitalization insurance , and retirement system contributions He noted last year the Legislature increased teacher salaries by 8 and other employees by 55 The budget is presently being negotiated at the State Legislature at this time , and it is projected the hospitalization insurance will be increased by 14 , the retirement system contribution increased by 14 , and employee salaries are being negotiated Mr Bartholomew stated when compiling the budget request , the Board of Education must include costs for growth , salaries , benefit increases set by the State , fuel , utilities , and other operating and capital cost increases Mr Bartholomew reported the request also includes several expansion items to improve teacher and employee recruitment and retention He stated excellent teachers and employees have a direct effect on the quality of education offered in Johnston County These expansions will allow Johnston County Schools to remain competitive with other school systems Mr Bartholomew stated the Board of Commissioners have always worked with the Board of Education to provide an excellent educational system for the children in Johnston County as is evidenced by the quality of school facilities in Johnston County and the school system being recognized as one of the best in North Carolina Mr Bartholomew thanked the Commissioners for helping to make Johnston County Schools a great system and asked the Board to consider the operating needs to maintain a first class school system as well as the expansion items needed to assist in recruiting and retaining teachers and staff Mr Bartholomew stated he felt Johnston County students deserved the best and he thanked the Board of Commissioners for their efforts Commissioner Allen L Mims , Jr stated he did not disagree that Johnston County has a top quality school system ; however , in reviewing the budget submitted by the Board of Education , he questioned how some other counties can educate children with the same quality of services , but at a lower cost Mr Bartholomew stated he believed Johnston County Schools does provide a better service to the children than some other counties and noted Johnston County teachers are paid higher and are some of the best in the State of North Carolina Mr Bartholomew stated he could not explain why Commissioners in other counties do not providePage289 June 20 , 2007 Continued more money for their schools ; however , reiterated Johnston County Schools needed more money in order to operate a first class school system Commissioner Mims stated last year the Commissioners reworked the funding formula that provided an additional 1 million in capital outlay and increased the number of children in the formula He then expressed concern that the Board of Education was way above the formula with this year’s request and referenced the General Statute § 115C - 426 e which states the budget “ should stay within the financial resources and consistent with the fiscal policies of the board of county commissioners ” Mr Bartholomew stated he believed money was moved out of capital outlay and placed into current expense , rather than the funding formula being revised County Manager Rick Hester stated regarding the funding formula , he believed the teacher supplement , last year , was put into the formula for growth where it had been separate before Mr Bartholomew stated there needed to be a committee formed to review and revise the funding formula He noted the formula was good ten years ago , and although it works presently , due to growth , revisions are needed Commissioner Mims noted that Johnston County Schools receives money per pupil and each time a new student is enrolled , the schools receive more funding Mr Bartholomew stated this was correct ; however , they could use more money to help with the higher costs of utilities , salaries , and other associated expenditures Commissioner Mims stated the County must try and keep a certain percentage in the fund balance in order maintain a good bond rating and noted the funding formula contained a growth factor Commissioner Wade M Stewart inquired about the new proposed charter school and asked how it would affect Johnston County Schools Mr Bartholomew stated if the new charter school takes in the full projected enrollment , it would affect Johnston County Schools by approximately 988,000 and 240 children He noted if the new charter school did not get the full enrollment , some of that money would come back to Johnston County Schools Commissioner Tony Braswell inquired about the projected utility increase of 865,000 for FY 07 - 08 and asked what the increase was from FY 06 - 07 Mr Dan Jones reported it was projected to be right at 600,000 and noted last year Johnston County Schools actually spent 6,714,000 on utilities Commissioner Stewart asked Mr Bartholomew to comment on a teacher supplement , according to the allocation County Manager Hester has proposed in the budget Mr Bartholomew stated with the figures as they are , there would not be a supplement increase , and that Johnston County Schools would have to perform cuts to operate on a 488 million budget allocation Dr Anthony Parker stated in order to maintain the current level of services Johnston County Schools would need 518 million and that would include capital outlay and holding the teacher supplement at the current level Commissioner Stewart asked at what level would the funding need to be at in order to accommodate teacher supplement increases , if the Board of Commissioners so chooses Dr Parker stated to give a 1 increase in teacher supplement ; it would cost 13 million and would consist of classroom teachers only In response to a question from Commissioner Mims , Dr Parker stated the current Clayton High School Principal was moving to a position at the Central Office and this was the result of a reorganization within the department , not an expansion of funding Dr Parker stated as a follow up to the earlier discussion of comparing Johnston County Schools to other county school systems , he felt that the quality of the education for Johnston County students is second to none in the State of North Carolina Mr Bartholomew reminded the Commissioners that Johnston County Schools is expecting a spike in growth with increased transfers from Wake County Commissioner Stewart stated next year he would like for the Commissioners to see where Johnston County stands in the State as far as testing for grade level reading scores , math scores , etc He stated generalities can suggest a “ second to none ” classification , but he would like to see the actual results Dr ParkerPagePage pageNumber5290 June 20 , 2007 Continued stated he does have those statistics and can share them with the Commissioners He noted Johnston County has a 74 graduation rate as well as he is proud of their academic performance and stated Johnston County is in the top 15 to 20 in the State of North Carolina as far as performance Dr Parker reiterated Johnston County compares well to other areas across the board He stated the bottom line is about teaching and learning and invited the Commissioners to come and review the data Commissioner Stewart asked for clarification on what Johnston County Schools would need to operate at the current level of services Dr Parker stated Johnston County Schools would need 518 million to maintain the current level of services and this would include the current expense allocation and capital outlay In response to a question from Commissioner Braswell , Dr Parker stated with the growth that is coming into the County , the Johnston County Schools exceptional children population is currently at 18 and they are funded at 125 He noted the difference has to be picked up by local funds which is a major issue for everyone in that the federal government is not contributing an adequate amount of money to cover exceptional children Commissioner DeVan Barbour inquired what the average expenditure per student for exceptional children was Dr Parker reported that number various dramatically depending on the severity of the exceptionality Upon a question from Commissioner Mims , Dr Parker reported a psychologist determines whether or not a child is classified as exceptional which sometimes involved outside private evaluations He noted there are new identification guidelines for learning disabilities in the hopes to try and reduce the numbers of identified exceptionalities Dr Parker stated they perform these analyses in - house ; however , some parents choose to have their children evaluated privately Chairman Cookie Pope reminded the Johnston County Schools representatives of her challenge earlier to provide the best services in the most cost effective manner possible Dr Parker replied the school system has over 4,000 employees and noted wherever they can cut costs , they are cutting those costs He noted the school system operation is running as efficiently as possible 7 Citizen Concern – Recreation Grant Funding Linda Botens , 150 Jordan Narron Road , Selma , addressed the Board regarding her concern of funding for recreational grants Ms Botens referenced the recreation grant application from the Johnston United Soccer Association JUSA and noted she was concerned about the zoning as well as whom the recorded owner of the property was at the time of submittal She stated as a taxpayer , she was concerned that regardless of the planned intentions of JUSA to purchase the property at some time in the future , until that becomes fact , taxpayer dollars should not be used for improvements on property owned by a private individual Ms Botens felt the issue of property ownership should be addressed prior to approval of a recreational grant as part of the County budget Commissioner Allen L Mims , Jr stated when the recreational grant committee reviewed the JUSA application , they recommended it for approval contingent on the rezoning and a valid lease of the property He noted valid leases have been accepted on other projects Commissioner Jeffrey P Carver stated many of the non - profits grants are based on this same type of scenario and noted a long term lease must be approved prior to the disbursement of any funding Commissioner Carver also stated the Board looks after the taxpayers in the County very well by requiring the long - term leases and other compliances are followed before funding is released After further discussion and upon the request by Ms Botens , Commissioner Carver instructed Johnston County CPA and Internal Auditor Chad McLamb to work with Ms Botens and provide her with requested documentation to satisfy her concerns The Board took a five minute recess 8 Adoption of 2007 - 08 County Budget Motion to Adopt the 2007 - 08 BudgetPagePage pageNumber6291 June 20 , 2007 Continued Commissioner Wade M Stewart moved the Board adopt the 2007 - 08 County Budget as presented by the County Manager , with the following adjustments • Increase the current expense funding for Johnston County Schools by 21 million above the County Manager’s proposal This would provide 509 million in local current expense and capital outlay funding for FY 07 - 08 This increase is 118 higher than the current FY 06 - 07 allocation to Johnston County Schools • Accept recommendations from the recreation grant non - profit workgroup as presented 346,71500 , below Recreation and Non - Profit Grants Worksheet Fiscal Year 2007 - 2008 Grants Recommended SMALL GRANTS Family Life Center 2,00000 Corinth Community Recreation 2,00000 Pine Level Parks & Rec Booster Club 2,00000 Pine Level Parks & Rec Committee 3,00000 Total Small Grants 9,00000 MEDIUM GRANTS Princeton Little Tarheel League 6,00000 Town of Kenly 6,00000 Town of Pine Level 6,29000 Archer Lodge Community Center 10,00000 Total Medium Grants 28,29000 LARGE GRANTS Benson Parks & Recreation 12,50000 Glendale - Chapel Recreation 16,42500 Clayton Community Rec Foundation 20,00000 Selma Parks & Recreation 25,00000 Clayton Civitan Club 25,00000 Johnston United Soccer Assoc 25,00000 Smithfield Parks & Recreation 25,00000 Smithfield Friends of the Parks 25,00000 Clayton Parks & Recreation 25,00000 Total Large Grants 198,92500 Total Recreation Grants Recommended 236,21500 Grants NON - PROFIT GRANTS Recommended Reins from Above Therapeutic Riding Center 5,00000 Boys & Girls Club 5,00000 JC Partnership for Children 5,00000 HALT 5,00000 Tobacco Farm Life 6,50000 Clayton Cultural Arts Foundation 10,00000 Harbor , Inc 12,50000 JC Arts Council 12,50000 Kenly Civic Center 15,00000 Special Olympics 15,00000 Johnston - Lee - Harnett Comm Action 19,00000 Total Non - Profit Grants 110,50000 Total Non - Profit Grants Recommended 110,50000 346,71500 Total Recreation & Non - Profit Grants Recommended • Accept the following fire district tax rate changes as recommended by the fire tax workgroup PagePage pageNumber7292 June 20 , 2007 Continued Bentonville Increase from 6 cents to 8 cents per 100 valuation Claytex Increase from 7 cents to 975 cents per 100 valuation Oakland Increase from 55 cents to 7 cents per 100 valuation • Lower Moccasin Creek Drainage District tax from 3 cents to 2 cents • Approve interpreter position for Health Department 33,584 and additional 40,000 for the Health Department to be transferred to Benson Area Medical Center as one time financial assistance total of 73,584 • Approve three new income maintenance caseworker positions in the Department of Social Services 63,783 • Approve two additional positions in the Sheriff’s Department to bring that total to eight new positions 93,392 • Approval of three Job Training position conversions subject to federal funding for these positions • Increase ad valorem tax revenue estimates by 12 million • Adjust salaries of Board appointed positions as follows Rick J Hester , County Manager - 137,962 J Mark Payne , County Attorney - 113,076 Pat Goddard , County Tax Administrator – 99,148 Commissioner W Ray Woodall seconded the motion Discussion Commissioner Allen L Mims , Jr stated he could agree with every item in Commissioner Stewart’s motion except for the first item regarding the Johnston County Schools allocation Commissioner Mims noted he has to meet with the bond rating agencies next week and two years ago , he was informed by those agencies the County had to keep a 16 to 20 fund balance He further stated one of the agencies had wanted the County to make this a formal policy in writing ; however , Commissioner Mims had said the County’s verbal promise was good enough Commissioner Mims noted if the Board approves the 509 million allocation , this would cause the County’s fund balance to go below 15 He stated he could not vote for approval of the budget as presented in Commissioner Stewart’s motion , based on this fact Commissioner DeVan Barbour expressed his concern with the 509 million allocation to the Johnston County Schools Commissioner Barbour noted it will require 518 million for the school system to remain at its current level and he felt the Board needed to at least carry forward the services at the current level Commissioner Wade M Stewart stated it will take 518 million to maintain the current level of services ; however , he noted there was one item he calculated into the overall formula that has not been discussed Commissioner Stewart stated there is approximately 15 million in lottery proceeds each year above and beyond the 2 million the County draws down in a prearranged agreement to fund two elementary schools that are up - starting He further stated this money was not factored into the Board of Education’s original budget Commissioner Jeffrey P Carver stated if the Board allocates 509 million to Johnston County Schools , this would require a fund balance appropriation of 45 million and noted if another 900,000 were added , this would require a fund balance appropriation of 54 million Commissioner Carver stated 5 million is the most in a fund balance appropriation he would allow Commissioner Carver further stated the County will continue to borrow money and must continue to be fiscally conservative Commissioner Tony Braswell stated he would like to address the fire tax rate increase requests , noting that Wynn Fire District Four Oaks did request an increase ; however , the committee did not recommend the increase to the Board Commissioner Braswell thanked the Chief of the Four Oaks Fire Department for their hospitality and the sharing of their reasoning for the request He noted the committee , consisting of Commissioners Braswell , Carver and Barbour , were a very conservative group Commissioner Braswell stated the committee felt that currently with the Four Oaks Fire Department’s liabilities versus their cash on hand being three to one , the committee did not see a justification to recommend to the Board an increase in the taxPagePage pageNumber8293 June 20 , 2007 Continued rate Commissioner Braswell stated this did not reflect upon the Wynn Fire District , their leadership , and their department The committee would be more than happy to work with the district at any time in the coming year to revisit this request Commissioner Braswell stated he hoped Johnston County Schools would be able to find some way to provide for a teacher supplement as the County moves forward Commissioner Braswell thanked the representatives from Johnston County Schools present for their time and noted this would probably not be the last year the County puts forth a bond referendum , due to the double digit growth expected Commissioner Braswell stated with the debt service increasing , he believes the County’s priority has been to provide funding for schools Commissioner Carver stated he had spoken with the recreation grant nonprofit committee members as well as County Attorney Mark Payne and he wanted to make it known that the County will ensure the language in the lease contracts will allow for a twenty year lease as well as a reversion clause or a reassignment that the property comes back to the County if the non - profit were to terminate Commissioner Carver reiterated the language in the contract will clarify no public funds will be used on a privately owned property if the non - profit goes out of business He noted the reassignment would come back to Johnston County who can in turn assign it to any other nonprofit for the same purpose originally intended Commissioner Carver further stated he had not seen a County department grow more than the Department of Social Services and he was unsure if the Board could justify three new positions In response to a question from Commissioner Braswell , County Manager Hester verified the amount to fund the three new Department of Social Services positions was the County’s 50 match of the salaries and the State funds the other half Commissioner Stewart stated he understood Johnston County Schools was not satisfied Commissioner Stewart noted he realized the school system was a different situation ; however , he expressed concern regarding having to explain to the citizens as to why a form of government could not operate with less than an 118 increase in their operational costs Commissioner Barbour stated the Board of Education has to deal with prolonged accelerated growth He noted as long as the County allows accelerated growth , then the cost must be paid Commissioner Barbour reiterated this was not a spike in growth , but a prolonged accelerated growth as well as the school system is mandated by the State just like other County departments Commissioner Mims reminded the Board members that the fund balance is at 15 and the County has another 7 to drop the fund balance before the State becomes involved in the finances Commissioner Mims expressed concern if the County keeps on the same path , the Board may be facing a tax increase Commissioner Stewart informed everyone that all the Commissioners realize we must continue to support the school system in the best way possible with the funds available and in no time in the future would the Commissioners allow any County department or the school system to fail Commissioner Stewart stated he would be willing at any point in the coming year to sit down and discuss a potential financial crisis , if needed , to resolve the issue Commissioner Stewart concluded by commenting even though he recommended approval of the three fire districts to receive an increase in their tax rates , it still concerned him greatly Commissioner Braswell stated the fire departments are no different than the school systems or any other entity in the County He noted the overall makeup of the volunteer fire department is going to change in the next few years Commissioner Braswell further noted these volunteer fire departments do not have adequate voluntary manpower and will have to consider hiring paid personnel to serve all the houses in the new subdivisions being approved He stated the growth issue has touched every part of the County services Commissioner Braswell stated he believed the fire tax committee had really listened in depth to the districts who had requested increases because the Commissioners do not take lightly having to increase a tax rate Amendment to Motion Commissioner Carver asked Commissioner Stewart if he accepted an amendment to the motion to require the recreation non - profit groups to have a 20 year lease or equivalent and a reversion clause in their contracts Commissioner Stewart stated he accepted the amendment to the motion Commissioner Barbour pointed out the last item in the motion by Commissioner Stewart regarding salary increases for appointed positions and complimented County Manager Rick Hester for all his work PagePage pageNumber9294 June 20 , 2007 Continued Commissioner Barbour also thanked County Attorney Mark Payne and Tax Administrator Pat Goddard for their efforts Commissioner W Ray Woodall stated it seemed to him the budget process is becoming more difficult each year and noted the County could not continue to operate with the increases in the budget Commissioner Woodall expressed his concern about the fund balance related to future bond referendums Commissioner Woodall further stated unless the County could address the increases , the Board may have to consider cuts or raising taxes , and he was against raising taxes There being no further comments , Chairman Cookie Pope called for a vote on the motion by Commissioner Stewart , seconded by Commissioner Woodall , with the amendment to allow for a 20 year lease or equivalent and a reversion clause to be added to the recreation non - profit grant contracts Vote Ayes Commissioners Cookie Pope , Wade M Stewart , W Ray Woodall , Jeffrey P Carver , and Tony Braswell Nays Commissioners Allen L Mims , Jr and DeVan Barbour The following budget ordinance for the fiscal year 2007 - 08 was adopted BUDGET ORDINANCE FY 2007 - 2008 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 , 2007 and ending June 30 , 2008 ; the same being adopted by fund and activity within each fund as listed GENERAL FUND EXPENDITURES GENERAL GOVERNMENT 15,231,087 PUBLIC SAFETY 21,787,551 PHYSICAL DEVELOPMENT 6,342,457 HUMAN SERVICES 41,334,047 EDUCATION 54,815,617 DEBT SERVICE 28,812,307 TOTAL 168,323,066 REVENUES CURRENT YEAR AD VALOREM TAX 84,700,000 SALES TAX 36,500,000 OTHER TAX REVENUES 1,414,000 STATE & FEDERAL 24,558,306 LICENSE , FEES , ETC 9,846,920 INVESTMENT INCOME 1,600,000 TRANSFER FROM OTHER FUNDS 1,504,002 FUND BALANCE APPROPRIATED 4,499,838 MENTAL HEALTH 1,700,000 NC EDUCATION LOTTERY 2,000,000 TOTAL 168,323,066 TOURISM AUTHORITY EXPENDITURES 924,670 REVENUES OCCUPANCY TAX 805,900 INTEREST INCOME 6,000 MISCELLANEOUS INCOME 3,770 GRANT REVENUE 67,000 FUND BALANCE 40,000 WEB ADVERTISING 2,000Page0295 June 20 , 2007 Continued TOTAL 924,670 REVALUATION FUND EXPENDITURES RESERVE FOR REVALUATION 100,000 REVENUES TRANSFER FROM GENERAL FUND 100,000 TOTAL 100,000 SCHOOL BOND FUND EXPENDITURES TRANSFER TO GENERAL FUND 1,500,000 REVENUES INVESTMENT INCOME 1,500,000 SCHOOL CAPITAL CONSTRUCTION FUND EXPENDITURES TRANSFER TO GENERAL FUND 4,002 REVENUES INVESTMENT INCOME 4,002 INDUSTRIAL INFRASTRUCTURE FUND EXPENDITURES INDUSTRIAL DEVELOPMENT 1,044,007 REVENUES TRANSFER FROM GENERAL FUND 1,044,007 LEO SEPARATION FUND EXPENDITURES PROGRAM COST 207,340 REVENUES TRANSFER FROM GENERAL FUND 207,340 HERITAGE COMMISSION FUND EXPENDITURES OPERATING EXPENSE 227,703 REVENUES TRANSFER FROM GENERAL FUND 163,203 OTHER REVENUES 60,500 INVESTMENT INCOME 4,000 TOTAL 227,703 SOCIAL SERVICE TRUST FUND EXPENDITURES PROGRAM COST 130,000 REVENUES TRUST RECEIPTS 130,000 MENTAL HEALTH FUND EXPENDITURES OPERATION OF CENTER 11,200,000 REVENUES FEDERAL GOVERNMENT 485,856 STATE GOVERNMENT 6,608,389 TRANSFER FROM GENERAL FUND 1,700,000 ABC - FIVE CENT PER BOTTLE TAX 28,000 ABC PROFITS 6,000 FEES AND CHARGES 1,919,569 INTEREST INCOME 100,700 FUND BALANCE 351,486Page1296 June 20 , 2007 Continued TOTAL 11,200,000 COMMUNICATION FUND EXPENDITURES 911 WIRELESS OPERATIONS 250,000 E - 911 OPERATIONS 637,474 TOTAL 887,474 REVENUES 911 WIRELESS 250,000 ENHANCED 9 - 1 - 1 637,474 TOTAL 887,474 OTHER COLLECTIONS EXPENDITURES SPECIAL DISTRICT TAX 4,485,000 MOTOR VEHICLE TAX 12,438,500 MOCCASIN CREEK DISTRICT TAX 35,000 TOTAL 16,958,500 REVENUES SPECIAL DISTRICT TAX 4,485,000 MOTOR VEHICLE TAX 12,438,500 MOCCASIN CREEK DISTRICT TAX 35,000 TOTAL 16,958,500 RESEARCH TRAINING ZONE EXPENDITURES OPERATIONS 485,000 REVENUES SPECIAL DISTRICT TAX 200,000 TRANSFER FROM GENERAL FUND 285,000 TOTAL 485,000 AIRPORT AUTHORITY FUND EXPENDITURES OPERATIONS 1,542,895 CAPITAL COST 4,000,700 TOTAL 5,543,595 REVENUES FEDERAL GRANTS 4,000,700 FEES AND SERVICES 1,466,775 INVESTMENT INCOME 8,000 FUND BALANCE 68,120 TOTAL 5,543,595 HOUSING ASSISTANCE PAYMENT PROGRAM FUND EXPENDITURES PROGRAM COST 3,713,713 REVENUES FEDERAL GOVERNMENT HUD 3,713,713 JOB TRAINING PROGRAM FUND EXPENDITURES PROGRAM COST 799,255 REVENUES FEDERAL GOVERNMENT 799,255Page2297 June 20 , 2007 Continued WATER DISTRICTS EXPENDITURES DEBT SERVICE 3,591,584 OPERATIONS 4,300,000 TRANSFER TO OTHER FUNDS 683,948 TOTAL 8,575,532 REVENUES RETAIL WATER 3,300,000 MONTHLY BASE FEE 4,100,000 OTHER REVENUE 1,175,532 TOTAL 8,575,532 PUBLIC UTILITIES EXPENDITURES ADMINISTRATION 1,038,272 SOLID WASTE 5,185,000 WATER 6,575,948 WASTE WATER 6,293,378 TRANSFER TO GENERAL FUND 100,000 TOTAL 19,192,598 REVENUES ADMINISTRATION FEES 760,000 SOLID WASTE FEES 4,975,000 WATER FEES 6,575,948 WASTE WATER FEES 6,293,378 DISPOSAL TAX 210,000 FUND BALANCE - ADMINISTRATION 378,272 TOTAL 19,192,598 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 , 2007 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 11,043,399,124 and an estimated collection rate of 9833 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 33 per ton for municipal solid waste generated in Johnston County The minimum fee for any vehicle shall be 3 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 25 per ton , and a yard waste fee of 16 per ton shall be levied 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 2007 - 2008 A Pay Plan There is hereby adopted a pay plan which includes a market adjustment of 215 in July 2007 , and the possibility of a performance pay increase not to exceed 13 in August 2007 Page3298 June 20 , 2007 Continued 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 2007 - 2008 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 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 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 6 cents Brogden Fire District 6 cents Claytex 975 cents Corinth Holder Fire District 10 cents Elevation Fire District 8 cents McLemore - Cleveland Fire District 6 cents Meadow Fire District 6 cents Micro Fire District 8 cents Nahunta Fire District 6 cents Newton Grove Fire District 45 cents Oakland Fire District 7 cents ONeals - Antioch Fire District 8 centsPage4299 June 20 , 2007 Continued PI - LE 7 cents Selma 8 cents Shoeheel 8 cents Smithfield 10 cents Strickland Crossroads Fire District 5 cents Thanksgiving 8 cents West Johnston Fire District 7 cents Wilsons Mills Fire District 6 cents Wynn Four Oaks Fire District 6 cents 50 - 210 Fire District 4 cents The above amounts are per one hundred dollar valuation of property listed for taxes as of January 1 , 2007 , 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 , 2007 , located within the district th The ORDINANCE being duly passed and adopted this 20 day of June , 2007 JOHNSTON COUNTY BOARD OF COMMISSIONERS ______________________________________________ Cookie Pope , Chairman ________________________________________________ Paula G Woodard , Clerk to the Board 9 FY 06 - 07 Recreation Non - Profit Grant Extension Requests Johnston County CPA and Internal Auditor Chad McLamb , informed the Board he had received additional extension requests for FY 06 - 07 recreation non - profit grants from Wilson’s Mills Parks & Recreation , Smithfield Parks & Recreation , and the Johnston United Soccer Association Mr McLamb noted this money was already budgeted and the groups would like to carry it forward into FY 07 - 08 Upon a motion by Commissioner Jeffrey P Carver , seconded by Commissioner DeVan Barbour , the request to approve the extensions for the FY 06 - 07 recreation non - profit grants for Wilson’s Mills Parks & Recreation , Smithfield Parks & Recreation , and the Johnston United Soccer Associated passed by the following vote Vote Ayes Commissioners DeVan Barbour , Jeffrey P Carver , W Ray Woodall , and Tony Braswell Nays Commissioners Cookie Pope , Wade M Stewart , and Allen L Mims , Jr There being no further business , Commissioner Jeffrey P Carver moved the Board adjourn Commissioner W Ray Woodall seconded the motion , which carried by unanimous vote The meeting adjourned at 7 15 pm ____________________________ Cookie Pope , Chairman Paula G Woodard , Clerk to the BoardPage