June 27, 2002 - 11:00 AM - County Board of Commissioners Meeting Minutes (Special)

10 895 June 27 , 2002 Special Budget Work Session - 11 00 am The Johnston County Board of Commissioners resumed special session , Monday , June 27 , 2002 at 11 00 am in the Commissioners ’ Room , Johnston County Courthouse Annex , Smithfield , North Carolina with the following members Present James H Langdon , Jr , Chairman , Cookie Pope , Vice - Chairman , Thomas M Moore , Allen L Mims , Jr , Wade M Stewart , W Ray Woodall and Fred Smith Absent None Also Present Rick Hester , County Manager , Joyce H Ennis , Clerk to the Board , John R Massey , Finance Officer , and J Mark Payne , County Attorney The Chairman called the meeting to order and the following business was transacted 1 Recommendations for Recreation Grants Approved Upon a motion by Commissioner Fred Smith , seconded by Commissioner Cookie Pope and carried by unanimous vote , the Board awarded recreation grants to the following applicants for FY 2002 - 2003 , as recommended by the recreation screening committee RECREATION GRANTS 2002 2003 SMALL GRANTS REQUESTED 1 Princeton Little Tarheel League , Inc 2,00000 2 Archer Lodge Community Center , Inc 2,00000 3 Corinth Holder Community Recreation 2,00000 MEDIUM GRANTS 1 Town of Four Oaks 10,00000 2 Cleveland Athletic Association 10,00000 3 Family Life Center , Inc 7,80000 4 Benson Parks & Recreation Dept 10,00000 5 Clayton Parks & Recreation Dept 9,60000 6 Selma Parks & Recreation Dept 10,00000 7 Glendale - Chapel Recreation 5,87431 8 Wade H Atkinson Memorial Library 5,86500 LARGE GRANTS 1 Smithfield Parks & Recreation 25,00000 2 Town of Pine Level 15,00000 Commissioner Allen L Mims , Jr noted the County Manager recommended 126,000 for recreation grant funds The total requests for the grants came to 115,13931 ; however , the individual amounts may be adjusted when the budget is adopted , based on the amount of funding approved Note See Item 3 Below - Adopted Budget funded the above grants at 87 of Requested Amount 2 Landfill Fees Approved Commissioner Wade M Stewart moved the Board reduce the landfill tipping fee from 36 to 33 per ton , increase the construction and demolition debris C & D fee from 18 to 24 per ton and maintain the compaction site decal fee at 55 Commissioner Cookie Pope seconded the motion Discussion Commissioner Fred Smith stated , in his opinion , the Board needs to study this matter and determine the overall goals for the landfill before any decision is made on these fees He suggested it is important to decide on a policy concerning whether the landfill should be operated as a long - term service for Johnston County citizens or whether we want to generate revenue to help defray the cost of government He voiced concern that an increase in the C & D fee would hurt an industry that has already offered their support for an increase in building permit and inspection fees He suggested taking this action would be unfair and represent knee - jerk management since there has been no opportunity for the public to have input Page896 Commissioner Thomas M Moore agreed a detailed study is needed before action is taken on this matter He suggested the landfill should be operated as a business The compaction site program especially needs to be re - evaluated since many things have changed since it was implemented It has always been subsidized by the general fund , and in his opinion , the cost for decals should be higher rd Commissioner Stewart pointed out that Waste Management came before the Board at the June 3 meeting requesting a reduction in the tipping fees The Commissioners informed them a decision would be made when the budget was adopted Board members have , in his opinion , had ample opportunity to think about this request , and most of the Commissioners have met with the Public Utilities staff for an indepth discussion Staff has indicated they would remain revenue neutral if the fees are adopted as stated in the motion Commissioner Allen L Mims , Jr referenced some information provided by the Public Utilities Department about fees from surrounding counties He noted that if the motion passes , Johnston County would be at approximately the midpoint on tipping fees , and still on the low end for C & D fees Commissioner Stewart stated the public expected government to take action , and he called for the question The motion carried by the following vote Ayes James H Langdon , Jr , Cookie Pope , Allen L Mims , Jr , Wade M Stewart and W Ray Woodall Nays Fred Smith and Thomas M Moore , 3 FY 2002 - 2003 Budget Adopted Commissioner Allen L Mims , Jr moved the Board accept the County Manager’s budget with the following revisions Additional Revenues Add to ad valorem tax 100,000 Add to Vehicle Tax 100,000 Add to sales tax 100,000 Public Utilities transfer to General Fund for overhead expense 100,000 Temporary 1 - year reduction in employee merit pay 190,000 Manager’s additional cuts in general government capital outlay 250,000 Reduction in Heritage part - time help 22,000 Reduction in Recreation Grant funds 26,000 Reduction in funding to beaver program 1,000 Total Additional Revenue 889,000 Additional Expenditures Add for NC Foresty Service 31,303 Add for Job Training 15,000 Add for Johnston - Lee Community Action 16,500 Add for Harbor 7,500 Add for Kenly Tobacco Museum 6,500 Add for Johnston County Arts Council 10,000 Add for Special Olympics 20,000 Add for Clayton Cultural Arts Foundation 10,000 Add for School Capital Outlay 300,000 Add 16 inflation factor for School Current Expense 414,556 Total Additional Expenses 831,359 Commissioner Mims pointed out the reduction in the recreation grant fund budget would allow the grant recipients to receive approximately 87 of their requested amount He stated this budget would maintain the tax rate of 85 for FY 2002 - 03 , and would bring the total general fund budget to 108,234,462 using 6,435,914 from reserves He noted this is approximately 11 over last year’s adopted budget Page897 Commissioner Cookie Pope seconded the motion Discussion Commissioner Thomas M Moore asked for clarification on the 100,000 overhead from Public Utilities to General Government He voiced opposition to the use of money generated from the public as service fees being put in the general fund He referenced the increase in building and inspection fees that were included in the Manager’s proposed budget , and noted Inspections already generates a profit He stated that although there was a vote of support by the Homebuilders Association for this increase , it is his belief that not all homebuilders agree with the vote of support given by their Association Concerning the transfer for overhead from Public Utilities , Commissioner Mims pointed out this transfer helps defray the cost that general government incurs on behalf of the Public Utilities Department The County just spent more than 1 million from the general fund on renovations to the old Belks building , where the department is located Commissioner Fred Smith agreed and noted this is just good business He pointed out that a small portion of the salaries for the County Manager , the Finance Officer , the Attorney and other general government employees could be allocated for work they do on behalf of Public Utilities Commissioner Moore stated he would have no problem with that if it was done for everyone He suggested it should be factored into every agency’s budget Following further discussion , the motion carried by the following vote to adopt the FY 2002 - 03 Budget Ordinance Ayes James H Langdon , Jr , Cookie Pope , Wade M Stewart , Allen L Mims , Jr , Fred Smith , and W Ray Woodall Nays Thomas M Moore BUDGET ORDINANCE FY 2002 - 2003 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 , 2002 and ending June 30 , 2003 ; the same being adopted by fund and activity within each fund as listed GENERAL FUND EXPENDITURES GENERAL GOVERNMENT 9,448,310 PUBLIC SAFETY 13,897,625 PHYSICAL DEVELOPMENT 4,941,314 HUMAN SERVICES 29,743,889 EDUCATION 50,203,324 TOTAL 108,234,462 REVENUES CURRENT YEAR AD VALOREM TAX 54,587,652 SALES TAX 19,842,000 OTHER TAX REVENUES 1,599,000 STATE & FEDERAL 17,324,967 LICENSE , FEES , ETC 6,969,929 FUND BALANCE APPROPRIATED 6,435,914 INVESTMENT INCOME 600,000 TRANSFER FROM OTHER FUNDS 875,000 TOTAL 108,234,462 TOURISM AUTHORITY EXPENDITURES 528,000 REVENUES 3 OCCUPANCY TAX 520,000 INTEREST INCOME 2,000 MISCELLANEOUS INCOME 2,000 FUND BALANCE APPROPRIATION 4,000 TOTAL 528,000Page898 SCHOOL CAPITAL CONSTRUCTION EXPENDITURES GENERAL CAPITAL OUTLAY 1,000,000 CONSTRUCTION & RENOVATION 2,400,000 TOTAL 3,400,000 REVENUES GENERAL FUND TRANSFER 3,400,000 TOTAL 3,400,000 REVALUATION FUND EXPENDITURES RESERVE FOR REVALUATION 621,887 REVENUES TRANSFER FROM GENERAL FUND 300,000 FUND BALANCE APPROPRIATED 321,887 TOTAL 621,887 SCHOOL BOND FUND EXPENDITURES TRANSFER TO GENERAL FUND 775,000 REVENUES FUND BALANCE APPROPRIATED 775,000 LEO SEPARATION FUND EXPENDITURES PROGRAM COST 49,940 REVENUES FUND BALANCE APPROPRIATED 49,940 HERITAGE COMMISSION FUND EXPENDITURES OPERATING EXPENSE 161,262 REVENUES TRANSFER FROM GENERAL FUND 67,362 OTHER REVENUES 93,900 TOTAL 161,262 SOCIAL SERVICE TRUST FUND EXPENDITURES PROGRAM COST 177,000 REVENUES TRUST RECEIPTS 177,000 MENTAL HEALTH FUND EXPENDITURES OPERATION OF CENTER 9,571,000 REVENUES FEDERAL GOVERNMENT 579,587 STATE GOVERNMENT 3,242,903 TRANSFER FROM GENERAL FUND 1,415,195 ABC - FIVE CENT PER BOTTLE TAX 23,826 ABC PROFITS 4,000 FEES AND CHARGES 3,214,265 INTEREST INCOME 76,166 FUND BALANCE 1,015,068 TOTAL 9,571,000 COMMUNICATION FUND EXPENDITURES 911 WIRELESS OPERATIONS 150,000 E - 911 OPERATIONS 650,000 TOTAL 800,000 REVENUES 911 WIRELESS 110,000PagePage pageNumber5899 ENHANCED 9 - 1 - 1 650,000 FUND BALANCE APPROPRIATED 40,000 TOTAL 800,000 OTHER COLLECTIONS EXPENDITURES SPECIAL DISTRICT TAX 2,634,000 MOTOR VEHICLE TAX 9,763,000 MOCCASIN CREEK DISTRICT TAX 25,000 TOTAL 12,422,000 REVENUES SPECIAL DISTRICT TAX 2,634,000 MOTOR VEHICLE TAX 9,763,000 MOCCASIN CREEK DISTRICT TAX 25,000 TOTAL 12,422,000 AIRPORT AUTHORITY FUND EXPENDITURES OPERATIONS 896,172 CAPITAL COST 500,000 TOTAL 1,396,172 REVENUES FEDERAL GRANTS 500,000 FEES AND SERVICES 660,096 LOAN - HANGAR CONSTRUCTION 231,576 INVESTMENT INCOME 4,500 TOTAL 1,396,172 HOUSING ASSISTANCE PAYMENT PROGRAM FUND EXPENDITURES PROGRAM COST 2,974,415 REVENUES FEDERAL GOVERNMENT HUD 2,974,415 CONTINGENCY FUND EXPENDITURES RESERVE FOR FUTURE AMENDMENTS - 0 - REVENUES TRANSFER FROM GENERAL FUND - 0 - JOB TRAINING PROGRAM FUND EXPENDITURES PROGRAM COST 284,000 REVENUES FEDERAL GOVERNMENT 284,000 WATER DISTRICTS EXPENDITURES DEBT SERVICE 1,515,935 OPERATIONS 2,893,065 TOTAL 4,409,000 REVENUES FUND BALANCE 750,000 RETAIL WATER 1,420,000 MONTHLY BASE FEE 1,503,000 OTHER REVENUE 736,000 TOTAL 4,409,000 PUBLIC UTILITIES EXPENDITURES ADMINISTRATION 740,057 SOLID WASTE 4,560,707 WATER 6,655,787 WASTE WATER 3,797,496 TOTAL 15,754,047PagePage pageNumber6900 REVENUES ADMINISTRATION 740,057 SOLID WASTE FEES 4,527,707 TRANSFER FROM WATER DISTRICT 591,740 WATER FEES 4,205,100 WASTE WATER FEES 2,921,640 FUND BALANCE - WATER 1,858,947 FUND BALANCE - WASTE WATER 875,856 FUND BALANCE - SOLID WASTE 33,000 TOTAL 15,754,047 SECTION II There is hereby levied a Tax Rate of eighty - five 85 cents per one hundred dollars valuation of property listed for taxes as of January 1 , 2002 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 6,734,560,303 and an estimated collection rate of 9536 SECTION III Schedule B Licenses shall be levied in accordance with the North Carolina Revenue Act SECTION IV 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 V 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 Enforcement is 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 VI 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 VII Salaries The following shall govern salary and wage compensation for Fiscal Year 2002 - 2003 Pay Plan There is hereby adopted a pay plan which includes an across the board cost of living adjustment in the amount of 16 from the FY01 - 02 pay plan and is applicable to all county employees SECTION VIII 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 IX 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 X 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 XI Encumbrances All outstanding encumbrances from Prior Fiscal Years are to be carried forward to Fiscal Year 2002 - 2003 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 inPagePage pageNumber7901 their Special Capital Outlay Account and used as match for State funds SECTION XII 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 XIII 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 XVI 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 8 cents Banner Fire District 6 cents Bentonville Fire District 6 cents Beulah Kenly Fire District 8 cents Boon Hill Princeton Fire District 5 cents Blackmons Crossroads Fire District 6 cents Brogden Fire District 7 cents Claytex 7 cents Corinth Holder Fire District 8 cents Elevation Fire District 8 cents McLemore - Cleveland Fire District 7 cents Meadow Fire District 6 cents Micro Fire District 8 cents Nahunta Fire District 6 cents Newton Grove Fire District 5 cents Oakland Fire District 5 cents ONeals - Antioch Fire District 8 cents PI - LE 6 cents Selma 8 cents Shoeheel 8 cents Smithfield 8 cents Strickland Crossroads Fire District 6 cents 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 5 cents The above amounts are per one hundred dollar valuation of property listed for taxes as of January 1 , 2002 , 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 27th day of June , 2002 JOHNSTON COUNTY BOARD OF COMMISSIONERS ______________________________________________ James H Langdon , Jr , Chairman Joyce H Ennis , Clerk to the BoardPagePage pageNumber8902 Chairman Langdon explained he contacted the School Board earlier and shared the amount of money the Commissioners were considering for school funds This amount is less than the Board of Education requested ; however , the Commissioners have tried to maintain a fund balance that is justifiable to keep our bond ratings He remarked the County may be given the option by the General Assembly later this year to enact a one - half cent sales tax If this happens , perhaps the Board could revisit this matter and consider a possible adjustment in funding He expressed disappointment that the County could not do more , but pointed out the school funding is a significant increase over last year’s appropriation , while almost every other fund in the County government has been held at last year’s amount or reduced The County Manager instituted a series of cuts from the original requests , and the Board of Commissioners have made further cuts The County has , from the beginning , followed the formula that was implemented by the financial model This year , actual inflation of 16 was used in adjusting the per pupil funding Commissioner Thomas M Moore voiced concern that the economic situation is not going to be over at the end of the year He noted the County must be very careful what is committed since there is no way of knowing how long or how hard we could be impacted by the situation with the State budget and overall economy Commissioner Cookie Pope thanked the department heads for their efficiency and finding ways to cut their budgets Commissioner W Ray Woodall agreed and stated that County employees have been hit hard with this budget and should be commended He voiced disappointment that there were not enough funds to do more , especially for the elderly He agreed with Commissioner Moore that there is little to indicate things will be better next year , and noted that even if the County gets the sales tax increase , that would not be enough to balance the budget Chairman Langdon noted the School Board has recommended that the Futures Committee be reconvened , and stated this will be done There being no further business , Commissioner Cookie Pope moved the Board adjourn Commissioner W Ray Woodall seconded the motion , which carried by unanimous vote ____________________________ James H Langdon , Jr , Chairman _____________________________ Joyce H Ennis , ClerkPage