June 24, 2003 - 12:00 PM - County Board of Commissioners Meeting Minutes

10 360 MEETING OF THE JOHNSTON COUNTY BOARD OF COMMISSIONERS June 24 , 2003 The Johnston County Board of Commissioners met in recessed session on Tuesday , June 24 , 2003 , at 12 00 noon in the Commissioners Meeting Room , Johnston County Courthouse Annex , Smithfield , North Carolina , with the following members present Present James H Langdon , Jr , Chairman , Cookie Pope , Vice Chairman , Thomas M Moore , Allen L Mims , Jr , Wade M Stewart , W Ray Woodall , and Jeffrey P Carver Absent None Also Present Rick J Hester , County Manager , Joyce H Ennis , Clerk to the Board , Mark Payne , County Attorney , and John R Massey , Finance Officer The Chairman opened the recessed meeting and the following business was transacted 1 Proposed Utility Fees - Policies and Rate Changes Engineer Tim Broome reviewed with the Board the following utility fees , rate changes and policies that are proposed in the new budget Water Fees lt; Increase in commodity charge by 05 per 1,000 gallons , and increase in capital commodity surcharge by 05 for a total increase of 010 per 1,000 gallons lt; Unit retail charge increase from 280 to 290 per 1,000 gallons This would result in an increase of 050 per month in the typical average residential water bill , and an increase from 165 to 175 per 1,000 gallons for retail and bulk customers lt; Increase water meter fee from 95 to 170 on new meters lt; Decrease residential water assessment fee from 650 to 500 This would create a decrease in the total water connection charge from 1,365 to 1,290 Sewer Fees lt; Increase in commodity charge by 013 per 1,000 gallons , and an increase in capital commodity surcharge of 007 per 1,000 gallons for a total increase of 020 This would result in an increase in the unit retail charge from 365 to 385 per 1,000 gallons The typical average residential wastewater bill would increase 1 per month , and the unit bulk charge would increase from 185 to 205 per 1,000 In addition , there will be an increase in the bulk wastewater customers ’ fixed monthly cost to cover the debt service on the 2003 wastewater improvements projects that are in the bidding process and will create a debt of approximately 13 million Elimination of Developer Water Reimbursement Policy Recommend the elimination of the developer water service reimbursement program of 350 per tap This began as an incentive to establish use of the water system The development of the County now makes this very difficult to continue Amendment to Wastewater Capacity Reservation and Assessment Fee Policy st Beginning July 1 , wastewater capacity allocations would be guaranteed only upon payment of assessment fees , and assessment fees must be paid on or before recording the final plat Mr Broome suggested the Board might want to consider adding the following to the policy “ For up to five years after the date of payment , 50 of wastewater assessment fees may be refunded , without interest , for unsuccessful or delayed projects ” Proposed Local Sedimentation and Erosion Control Regulatory Program Propose the staffing and funding for a local sedimentation and erosion control regulatory program An application for primacy demonstrating the County Staff’s competency would need to be made to NCDENR Page361 June 24 , 2003 Continued The program would increase permit fees from the current 50 charged by the State to 200 per disturbed acre The State only does one inspection , and has infrequent and insufficient follow - up The County’s program will work like the State’s program with warnings and penalties , but there will be more frequent inspections of the construction sites , and more warnings and citations Staff may also have to enforce permits that were permitted by the State Commissioner Thomas M Moore asked if the shareholders were made aware of the proposed changes Mr Broome responded that in most cases yes , however , nothing has been done on the sedimentation and control program Commissioner Moore stated he has talked with a number of the developers , and they seem pleased with the prospect of the County taking over this responsibility since they will be able to get a much quicker response than with the State , however , they do not know what the cost will be County Manager , Rick Hester , suggested a stakeholders meeting could be held before the program is actually implemented , with the hiring of the technician postponed until this is done Commissioner Cookie Pope stated she would like that to happen 2 Airport Authority - Request for Funding John Bullock , member of the Airport Authority , again requested the County help the airport by appropriating the 66,281 needed to make repairs at the airport and hire someone to train for the airport manager’s position , since current manager , Roy Dixon , will be retiring within the year Commissioner Allen L Mims , Jr asked about the 18,000 for removing trees that are obstructing the runway approach He questioned why it would cost that much to clear three to five acres of small trees no more than 8 to 10 in diameter , and suggested the Airport get some more quotes Mr Bullock noted the terrain is bad , and getting in and out will not be easy Motion Following further discussion , Commissioner Thomas M Moore moved the Board approve a budget amendment appropriating 66,281 from the current year’s fund balance for the Airport Commissioner Wade M Stewart seconded the motion Commissioner Moore gave credit to Airport Manager , Roy Dixon , for the great job he has done He noted the airport , in his opinion , is important to the County’s economic development , and needs to be maintained Chairman Langdon pointed out the airport will pay off an outstanding loan next spring , which should take care of some of the cash flow problems Commissioner Mims agreed the County has a fine airport , but said , in his opinion , it should be self - supporting , and not a burden on the taxpayer He noted only a small portion of the population uses the airport Vote The motion carried by the following vote Ayes James H Langdon , Jr , Cookie Pope , Wade M Stewart , Thomas M Moore , Jeffrey P Carver , and W Ray Woodall Nays Allen L Mims , Jr Special Appropriations FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION EXPENDITURE INCREASE DECREASE 10 58559063 Transfer to Airport 66,28100 FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION REVENUE INCREASE DECREASE 10 460033990 Fund Balance Appropriated 66,28100Page362 June 24 , 2003 Continued 3 Vacant Physician Extender Position Divided into Two Health Assistant Positions for Health Department Upon a motion by Commissioner Cookie Pope , seconded by Commissioner W Ray Woodall and carried by unanimous vote , the Board approved dividing one vacant physician extender position into two health assistant positions , which will be a cost savings to the County Commissioner Pope noted the two assistant positions will require bi - lingual skills to better serve the Hispanic Community 4 County Budget Adopted for FY 2003 - 2004 Chairman James H Langdon made the following statement “ With the recent revaluation process one that is still ongoing , I might add it has been a challenge working through the budget process Our Board has stated in the past that we were committed to staying revenue - neutral during this process This afternoon , we hope to accomplish that How If you review the last few budgets , you’ll find that the Board has used general fund reserves also known as fund balance to balance the budget The fiscal year 2001 - 02 budget was presented with 44 million in fund balance revenue In the current fiscal year , the budget was balanced with approximately 78 million in fund balance revenue The proposed budget does not include any fund balance , and the net projected growth in ad valorem revenue in the proposed budget is only 12 million more than the current fiscal year 02 - 03 budget Recent growth in the ad valorem revenues has been closer to 26 million A tax rate of 78 cents would be less than revenue - neutral if you plug in the fund balance that was used in previous years The Board may adjust the County Manager’s proposed budget in terms of revenues and expenditures By including possible additional tax base from recent appeal process , there will be additional ad valorem revenue , however , those revenues will support the 78 cents as being at or less than revenue - neutral In closing , the Board will be able to balance this year’s budget with a tax rate that is revenue neutral and provide the necessary funding for schools , public safety and general government so the citizens in this County can be served in a way they deserve and can be proud of ” Commissioner Allen L Mims , Jr stated he can support this , but voiced disappointment that the rate couldn’t be set lower He noted , in his opinion , the allocation to the Schools was a little too high and suggested the School Board might need to tighten their belts a bit more Commissioner Thomas M Moore stated he , too , would have liked to see the rate lower , but having gone through the budget thoroughly , he was unable to find any place where significant additional cuts could be taken He spoke of the good job the employees do , and noted he would not want to cut their salary increase Commissioner W Ray Woodall voiced his reluctant support for the tax rate and noted he too has gone over the budget carefully and feels that basically it is a good budget He stressed the County can not afford to go into fund balance any more Commissioner Cookie Pope stated she was not excited about the rate , but after looking at the whole picture , feels it is the best the Board can do Commissioner Wade M Stewart pointed out that he would like to have been able to reduce the rate more , but can support the 78 cents He noted that revenue - neutral does not deal with individual situations , but relates to the total revenue picture for the County Some people will pay more , and some will pay less , but regardless of that , the County is not making money off the revaluation These comments having been said , Commissioner Wade M Stewart moved the Board adopt the FY 2003 - 2004 Budget Ordinance approving the budget as presented by the County Manager with the following adjustments , including a 2 cent reduction in the proposed tax rate to 78 cents per 100 valuation Page363 June 24 , 2003 Continued New Revenue Additional 190 million in tax base 14 million Reduction in medicaid match 400,000 Sales tax revenue increase 375,000 Cut in Jail Budget 45,000 Cut in Job Training Subsidy 15,000 Cut of Coroner expense 43,000 Cut in DSS Budget 69,000 Total new funds available 2,350,000 New Expenses School Current Expense 787,213 Additional Funds for Johnston Community College 68,670 Total new expenses 855,883 Remaining additional revenue of 1,494,117 represents the reduction of 2 cents from the recommended 80 cent tax rate in the proposed budget Public Utilities Enterprise Fund Adjustments lt; Reduction in fund balance appropriation by 989,108 lt; Reduction in general utilities water budget capital outlay by 550,000 lt; Reduction in retail water budget capital outlay by 439,108 Commissioner Cookie Pope seconded the motion , which carried by unanimous vote BUDGET ORDINANCE FY 2003 - 2004 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 , 2003 and ending June 30 , 2004 ; the same being adopted by fund and activity within each fund as listed GENERAL FUND EXPENDITURES GENERAL GOVERNMENT 10,883,341 PUBLIC SAFETY 15,441,110 PHYSICAL DEVELOPMENT 4,473,829 HUMAN SERVICES 30,851,575 EDUCATION 55,398,644 TOTAL 117,048,499 REVENUES CURRENT YEAR AD VALOREM TAX 64,395,392 SALES TAX 25,391,190 OTHER TAX REVENUES 979,000 STATE & FEDERAL 17,272,350 LICENSE , FEES , ETC 8,250,567 INVESTMENT INCOME 490,000 TRANSFER FROM OTHER FUNDS 270,000 TOTAL 117,048,499 TOURISM AUTHORITY EXPENDITURES 535,260PagePage pageNumber5364 June 24 , 2003 Continued REVENUES 3 OCCUPANCY TAX 531,260 INTEREST INCOME 2,000 MISCELLANEOUS INCOME 2,000 TOTAL 535,260 REVALUATION FUND EXPENDITURES RESERVE FOR REVALUATION 101,300 REVENUES TRANSFER FROM GENERAL FUND 100,000 FUND BALANCE APPROPRIATED 1,300 TOTAL 101,300 SCHOOL BOND FUND EXPENDITURES TRANSFER TO GENERAL FUND 270,000 REVENUES FUND BALANCE APPROPRIATED 270,000 LEO SEPARATION FUND EXPENDITURES PROGRAM COST 75,790 REVENUES FUND BALANCE APPROPRIATED 75,790 HERITAGE COMMISSION FUND EXPENDITURES OPERATING EXPENSE 214,040 REVENUES TRANSFER FROM GENERAL FUND 138,540 OTHER REVENUES 65,500 FUND BALANCE APPROPRIATED 10,000 TOTAL 214,040 SOCIAL SERVICE TRUST FUND EXPENDITURES PROGRAM COST 177,000 REVENUES TRUST RECEIPTS 177,000 MENTAL HEALTH FUND EXPENDITURES OPERATION OF CENTER 10,771,000 REVENUES FEDERAL GOVERNMENT 479,890 STATE GOVERNMENT 3,916,432 TRANSFER FROM GENERAL FUND 1,415,195 ABC - FIVE CENT PER BOTTLE TAX 23,826 ABC PROFITS 4,000 FEES AND CHARGES 3,995,738 INTEREST INCOME 52,227 FUND BALANCE 883,692 TOTAL 10,771,000PagePage pageNumber6365 June 24 , 2003 Continued COMMUNICATION FUND EXPENDITURES 911 WIRELESS OPERATIONS 194,400 E - 911 OPERATIONS 655,065 TOTAL 849,465 REVENUES 911 WIRELESS 150,000 ENHANCED 9 - 1 - 1 655,065 FUND BALANCE APPROPRIATED 44,400 TOTAL 849,465 OTHER COLLECTIONS EXPENDITURES SPECIAL DISTRICT TAX 2,634,000 MOTOR VEHICLE TAX 9,863,000 MOCCASIN CREEK DISTRICT TAX 30,000 TOTAL 12,527,000 REVENUES SPECIAL DISTRICT TAX 2,634,000 MOTOR VEHICLE TAX 9,863,000 MOCCASIN CREEK DISTRICT TAX 30,000 TOTAL 12,527,000 AIRPORT AUTHORITY FUND EXPENDITURES OPERATIONS 807,767 CAPITAL COST 1,276,000 TOTAL 2,083,767 REVENUES FEDERAL GRANTS 1,276,000 FEES AND SERVICES 595,189 LOAN - HANGAR CONSTRUCTION 212,278 INVESTMENT INCOME 300 TOTAL 2,083,767 HOUSING ASSISTANCE PAYMENT PROGRAM FUND EXPENDITURES PROGRAM COST 3,998,553 REVENUES FEDERAL GOVERNMENT HUD 3,998,553 JOB TRAINING PROGRAM FUND EXPENDITURES PROGRAM COST 270,600 REVENUES FEDERAL GOVERNMENT 270,600 WATER DISTRICTS EXPENDITURES DEBT SERVICE 1,763,460 OPERATIONS 3,385,512 TOTAL 5,148,972PagePage pageNumber7366 June 24 , 2003 Continued REVENUES FUND BALANCE 150,000 RETAIL WATER 1,968,460 MONTHLY BASE FEE 2,310,512 OTHER REVENUE 720,000 TOTAL 5,148,972 PUBLIC UTILITIES EXPENDITURES ADMINISTRATION 547,771 SOLID WASTE 4,759,521 WATER 4,760,512 WASTE WATER 3,783,522 TOTAL 13,851,326 REVENUES ADMINISTRATION 547,771 SOLID WASTE FEES 4,759,521 WATER FEES 4,760,512 WASTE WATER FEES 3,297,078 FUND BALANCE - WASTE WATER 486,444 TOTAL 13,851,326 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 , 2003 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 8,469,305,233 and an estimated collection rate of 9599 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 24 per ton SECTION V A fee of 55 per household shall be levied to all citizens in the county using the manned compaction sites and the landfill The fee shall be prorated in the manner authorized by the Board A rate of 165 per commercial operation to all businesses using the compaction site , this rate includes a maximum of three 3 ninety gallon containers per week 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 2003 - 2004 A Pay Plan There is hereby adopted a pay plan which includes an across the board cost of living adjustment in the amount of 25 from the FY 02 - 03 pay plan and is applicable to all county employees SECTION VII The Budget Officer is hereby authorized to transfer appropriations within a fund as contained herein under the following conditions as specified in North Carolina General Statute 159 A The Budget Officer may transfer amounts between objects of expenditure within departments listed in this Ordinance without a report PagePage pageNumber8367 June 24 , 2003 Continued B The Budget Officer may transfer amounts up to 5,000 between departments of the same fund and reported as part of the monthly financial statements C The Budget Officer may not transfer amounts between funds nor from the Contingency Fund without prior Board Action SECTION VII 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 2003 - 2004 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 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 6 cents Bentonville Fire District 4 cents Beulah Kenly Fire District 75 cents Boon Hill Princeton Fire District 5 cents Blackmons Crossroads Fire District 6 cents Brogden Fire District 6 cents Claytex 4 cents Corinth Holder Fire District 75 cents Elevation Fire District 8 cents McLemore - Cleveland Fire District 7 cents Meadow Fire District 5 cents Micro Fire District 8 cents Nahunta Fire District 6 cents Newton Grove Fire District 45 cents Oakland Fire District 55 cents ONeals - Antioch Fire District 8 cents PI - LE 6 cents Selma 8 cents Shoeheel 8 cents Smithfield 8 cents Strickland Crossroads Fire District 5 centsPagePage pageNumber9368 June 24 , 2003 Continued Thanksgiving 6 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 , 2003 , 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 The ORDINANCE being duly passed and adopted this 24th day of June , 2003 JOHNSTON COUNTY BOARD OF COMMISSIONERS ______________________________________________ James H Langdon , Jr , Chairman ________________________________________________ Joyce H Ennis , Clerk to the Board 5 Designation of Voting Delegate Upon a motion by Commissioner W Ray Woodall , seconded by Commissioner Cookie Pope and carried by unanimous vote , the Board designated Chairman James H Langdon , Jr as voting delegate at the annual NACo Conference and NCACC Conference , both of which will be held during the summer months There being no further business , Commissioner Cookie Pope moved the Board adjourn Commissioner Thomas M Moore seconded the motion , which carried by unanimous vote ________________________________________ James H Langdon , Jr , Chairman _____________________________ Joyce H Ennis , Clerk to the BoardPage