August 9, 1999 - 6:30 PM - County Board of Commissioners Meeting Minutes (Special)

10 544 August 9 , 1999 Special Called Meeting The Johnston County Board of Commissioners met in Special Session , Monday , August 9 , 1999 , at 6 30 pm 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 , Jerry F Wood , DDS , Eleanor N Creech , Thomas M Moore , Wade M Stewart and Allen L Mims , Jr , Absent None Also Present Rick Hester , County Manager , Joyce H Ennis , Clerk to the Board , Mark Payne , County Attorney , and John R Massey , Finance Officer The Chairman called the meeting to order and the following business was transacted 1 School Board Presentation DeVan Barbour , Chairman of the Johnston County Board of Education , informed the Commissioners that 150 million of school facility needs have been identified for completion by 2003 He presented a resolution , adopted August 5 , 1999 by his board , requesting the County Commissioners call for an election on November 2 , 1999 for a school facilities bond issue in the amount of 83,500,000 for Phase I of the Facilities 2003 Program The resolution further requested the Board of Commissioners establish the date of November 6 , 2001 for a second bond referendum to fund the final phase of Facilities 2003 He recommended the two boards plan a joint meeting in the near future He reviewed with the Board a list of the new construction and renovation projects that would be funded with the first bond issue He noted that projects have been identified for Phase 2 , but they would be subject to change Commissioner Eleanor N Creech commented she had reservations about making any commitment for 2001 In response Mr Barbour stated the Board of Education , in making this request , wanted to make it clear that the 83,500,000 would not solve the school facility problems Following further discussion , Commissioner Allen L Mims , Jr made the following statement and motion " Fellow Commissioners , I think that we all realize that there are probably 150 million in school facility needs for the children that already live in the County We have all studied the projected revenue and expense numbers produced by our staff , the Local Government Commission , and the Barents Group's Financial Model They all have different levels of conservatism , but they all agree that we can do an 80 million bond issue for the schools and a 3 million bond issue for the Community College without a tax increase This is a conservative board and I feel that it would be prudent that we use the 80 million and 3 million figures , to prove to ourselves that the Financial Model really works and is a good tool for the future However for it to work , the growth in student numbers must follow the model's assumption and the school capacity growth curve which is the Board of Education's ten year facilities plan Also , the per pupil expenditure must hold to inflation plus growth We are announcing tonight that we will have a County Growth Ordinance within 30 to 60 days to match our growth to the Financial Model and with this done , school spending should be manageable at the level projected in the Financial Model We also challenge the Board of Education to implement any policies or programs that will increase the efficiency and or capacity of our existing schools , such as , four - track , year - round schools , which would extend the time before another bond vote would have to come before the people nd Therefore , I would like to make a motion that we adopt the resolution calling for a Nov 2 1999 referendum to vote on an 80 million School Facilities Bond , and a 3 million Community College Bond "Page545 Commissioner Wade M Stewart seconded the motion Discussion Chairman James H Langdon , Jr noted the School Board asked for an 835 million issue , and the motion before the Board is for 80 million for the schools He stated he talked with School officials and they have agreed they can work with the 80 million He agreed with Commissioner Mims that the School System , as well as the County , will have to hold expenses in line in order for this to work He noted if everything plays out the way it is projected , the County could consider another bond in 2001 Commissioners Cookie Pope and Wade M Stewart both agreed they would have liked to have seen the School referendum for the full 150 million , but recognize the value of being conservative Both praised the Financial Model and thanked the Futures committee for their contribution to the County Commissioner Stewart stated he would be reluctant to commit to another bond issue in 2001 , as he would rather address further needs when they arise , not in advance VOTE The motion carried by unanimous vote and the following resolutions were adopted RESOLUTION PROVIDING FOR PUBLICATION OF NOTICE OF INTENT TO FILE APPLICATION WITH RESPECT TO UP TO 80,000,000 GENERAL OBLIGATION SCHOOL BONDS WITH LOCAL GOVERNMENT COMMISSION WHEREAS , the Board of Commissioners of Johnston County the " Board " has decided to pursue the issuance of general obligation school bonds in the maximum aggregate principal amount of 80,000,000 the " Bonds " under the Local Government Bond Act the " Act " to finance , in part , the acquisition , construction and equipping of school facilities ; and WHEREAS , under the Act the issuance of such bonds must be approved by the Local Government Commission the " LGC " and pursuant to GS § 159 - 50 of the Act , a notice of the intention to file an application with the Local Government Commission must be published prior to filing of the application ; and WHEREAS , the Board intends to make certain capital expenditures relating to the acquisition , construction and equipping of school facilities prior to the issuance of the Bonds , and to reimburse such expenditures out of the proceeds of the Bonds ; NOW , THEREFORE , the Board of Commissioners of Johnston County , meeting in regular session at Smithfield , North Carolina , on August 9 , 1999 , do the following BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF JOHNSTON COUNTY 1 The County hereby declares its intention to file an application with the LGC seeking approval for the issuance of general obligation school bonds Clerk to the Board shall cause a notice , in substantially the form set forth below , to be published in The Smithfield Herald [ FORM OF NOTICE ] NOTICE OF INTENTION TO FILE AN APPLICATION WITH THE LOCAL GOVERNMENT COMMISSION CONCERNING 80,000,000 GENERAL OBLIGATION SCHOOL BONDS Notice is hereby given that the Board of Commissioners of Johnston County , North Carolina the " Board " , intends to file an application with the Local Government Commission the " LGC " for approval of a bond issue pursuant to the Local Government Bond Act GS § 159 - 43 et seq It is proposed that the bonds be general obligations of Johnston County in the maximum principal amount of 80,000,000 and be issued to finance , in part , the acquisition , construction and equipping of school facilities Any citizen or taxpayer of Johnston County may , within seven days after the date of publication of this notice , file with the Board and the LGC a statement of any objections he or she may have to the bond issue at the following addresses Board of Commissioners Johnston County Johnston County Courthouse PO Box 1049 Smithfield , North Carolina 27577 and Mr Robert M HighPage546 Local Government Commission 325 N Salisbury Street Raleigh , North Carolina 27603 JOHNSTON COUNTY BOARD OF COMMISSIONERS By Joyce H Ennis , Clerk 2 The Board hereby declares that it reasonably expects to make certain capital expenditures for the acquisition , construction and equipping of school facilities , and to reimburse such expenditures out of the proceeds of the Bonds , up to a maximum amount of 80,000,000 This resolution is intended to be a declaration of official intent under Treas Reg § 1150 - 2 3 This resolution shall take effect immediately Commissioner Allen L Mims , Jr moved the passage of the foregoing resolution and Commissioner Wade M Stewart seconded the motion , and the resolution was passed by the following vote Ayes James H Langdon , Jr , Cookie Pope , Jerry F Wood , Eleanor N Creech , Thomas M Moore , Allen L Mims , Jr , and Wade M Stewart Nays None Not Voting None The following resolution was discussed and its title was read SCHOOL PROJECT PRELIMINARY FINDINGS AND DESIGNATION OF REPRESENTATIVES WHEREAS , it has been proposed that Johnston County the " County " issue general obligation school bonds to provide funds for school facilities ; and WHEREAS , the Board is in general agreement with the necessity of such bond issue and has tentatively decided to pursue the issuance of general obligation school bonds in the maximum aggregate principal amount of 80,000,000 under the Local Government Bond Act the " Act " to finance , in part , the acquisition , construction and equipping of school facilities ; and WHEREAS , the Board desires to more accurately describe the proposed project and make appropriate provisions for its pursuit ; NOW , THEREFORE , the Board of Commissioners of Johnston County meeting in regular session on August 9 , 1999 , does the following THE BOARD OF COMMISSIONERS FOR JOHNSTON COUNTY MAKES THE FOLLOWING FINDINGS OF FACT 1 The project can be adequately described as follows acquisition , constructing and equipping of school facilities within the County 2 The project is necessary and expedient because of the recent and projected growth in school age population in Johnston County , and the inability of the existing school facilities to house the additional student population 3 The amount of bonds is adequate for the proposed purpose because a preliminary report prepared for this project has estimated total project costs to be 80,000,000 4 Facts supporting the conclusion that debt management policies have been carried out in compliance with the law and reasonable assurances that compliance with the law will henceforth be carried out are as follows a The Local Government Commission has taken no action against the County , nor found the County to have acted improperly in debt management b The County has not defaulted on any debt obligation c The County follows the debt management guidelines of the North Carolina Local Government Commission THEREFORE , BE IT RESOLVED BY THE BOARD OF COMMISSIONERS FOR JOHNSTON COUNTY THAT 1 The Chairman and Clerk , or either of them , are hereby designated as the representatives of the County to file an application for approval of the bonds with the Local Government Commission 2 This resolution shall take effect immediately Page547 Commissioner Allen L Mims , Jr moved the passage of the foregoing resolution , Commissioner Wade M Stewart seconded the motion , and the resolution was passed by the following vote Ayes James H Langdon , Jr , Cookie Pope , Jerry F Wood , Eleanor N Creech , Thomas M Moore , Allen L Mims , Jr , and Wade M Stewart Nays None Not Voting None 2 Community College - Request for Bond Issue Dr Donald L Reichard , president of Johnston Community College , presented a report completed by Barnhardt and Associates on the Community College's current and projected space needs The report indicated the College currently has a deficient of 122,710 square feet and by 2008 will need an additional 91,140 square feet due to projected enrollment growth He noted the request he brought to the Board at this meeting was for a 5 million bond issue to build a new classroom laboratory building as that is the estimated cost of the facility , however the College will accept the 3 million figure proposed by the Board Chairman James H Langdon , Jr noted the County recognizes the needs of the College and included funding for this in the Financial Model This issue would be a separate vote from the School bond issue , but on the same ballot Following further discussion , the following resolution was discussed and its title was read RESOLUTION PROVIDING FOR PUBLICATION OF NOTICE OF INTENT TO FILE APPLICATION WITH RESPECT TO UP TO 3,000,000 GENERAL OBLIGATION COMMUNITY COLLEGE BONDS WITH LOCAL GOVERNMENT COMMISSION WHEREAS , the Board of Commissioners of Johnston County the " Board " has decided to pursue the issuance of general obligation community college bonds in the maximum aggregate principal amount of 3,000,000 the " Bonds " under the Local Government Bond Act the " Act " to finance , in part , the acquisition , construction and equipping of school facilities ; and WHEREAS , under the Act the issuance of such bonds must be approved by the Local Government Commission the " LGC " and pursuant to GS § 159 - 50 of the Act , a notice of the intention to file an application with the Local Government Commission must be published prior to filing of the application ; and WHEREAS , the Board intends to make certain capital expenditures relating to the acquisition , construction and equipping of community college facilities prior to the issuance of the Bonds , and to reimburse such expenditures out of the proceeds of the Bonds ; NOW , THEREFORE , the Board of Commissioners of Johnston County , meeting in regular session at Smithfield , North Carolina , on August 9 , 1999 , do the following BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF JOHNSTON COUNTY 1 The County hereby declares its intention to file an application with the LGC seeking approval for the issuance of general obligation community college bonds Clerk to the Board shall cause a notice , in substantially the form set forth below , to be published in The Smithfield Herald [ FORM OF NOTICE ] NOTICE OF INTENTION TO FILE AN APPLICATION WITH THE LOCAL GOVERNMENT COMMISSION CONCERNING 3,000,000 GENERAL OBLIGATION COMMUNITY COLLEGE BONDS Notice is hereby given that the Board of Commissioners of Johnston County , North Carolina the " Board " , intends to file an application with the Local Government Commission the " LGC " for approval of a bond issue pursuant to the Local Government Bond Act GS § 159 - 43 et seq It is proposed that the bonds be general obligations of Johnston County in the maximum principal amount of 3,000,000 and be issued to finance , in part , the acquisition , construction and equipping of community college facilities Any citizen or taxpayer of Johnston County may , within seven days after the date of publication of this notice , file with the Board and the LGC a statement of any objections he or she may have to the bond issue at the following addresses PagePage pageNumber5548 Board of Commissioners Johnston County Johnston County Courthouse PO Box 1049 Smithfield , North Carolina 27577 and Mr Robert M High Local Government Commission 325 N Salisbury Street Raleigh , North Carolina 27603 JOHNSTON COUNTY BOARD OF COMMISSIONERS By Joyce H Ennis , Clerk 2 The Board hereby declares that it reasonably expects to make certain capital expenditures for the acquisition , construction and equipping of community college facilities , and to reimburse such expenditures out of the proceeds of the Bonds , up to a maximum amount of 3,000,000 This resolution is intended to be a declaration of official intent under Treas Reg § 1150 - 2 3 This resolution shall take effect immediately Commissioner Allen L Mims , Jr moved the passage of the foregoing resolution and Commissioner Cookie Pope seconded the motion , and the resolution was passed by the following vote Ayes James H Langdon , Jr , Cookie Pope , Jerry F Wood , Eleanor N Creech , Thomas M Moore , Allen L Mims , Jr , and Wade M Stewart Nays None Not Voting None The following resolution was discussed and its title was read COMMUNITY COLLEGE PROJECT PRELIMINARY FINDINGS AND DESIGNATION OF REPRESENTATIVES WHEREAS , it has been proposed that Johnston County the " County " issue general obligation community college bonds to provide funds to finance capital improvements for Johnston County Community College ; and WHEREAS , the Board is in general agreement with the necessity of such bond issue and has tentatively decided to pursue the issuance of general obligation community college bonds in the maximum aggregate principal amount of 3,000,000 under the Local Government Bond Act the " Act " to finance , in part , the acquisition , construction and equipping of community college facilities ; and WHEREAS , the Board desires to more accurately describe the proposed project and make appropriate provisions for its pursuit ; NOW , THEREFORE , the Board of Commissioners of Johnston County meeting in regular session on August 9 , 1999 , does the following THE BOARD OF COMMISSIONERS FOR JOHNSTON COUNTY MAKES THE FOLLOWING FINDINGS OF FACT 1 The project can be adequately described as follows acquisition , construction and equipping of capital improvements for Johnston County Community College , including but not limited to the following a classroom laboratory building and physical education facility space to meet college transfer and basic law enforcement requirements 2 The project is necessary and expedient because the population growth in Johnston County has resulted in increased enrollment at the community college , partly in connection with industry in the County To serve the needs of the students , the community college has indicated that it needs additional facility space to house the projected increase in college enrollment growth 3 The amount of bonds is adequate for the proposed purpose because a preliminary report prepared for this project has estimated total project costs to be 3,000,000 4 Facts supporting the conclusion that debt management policies have been carried out in compliance with the law and reasonable assurances that compliance with the law will henceforth be carried out are as follows a The Local Government Commission has taken no action against the County , norPagePage pageNumber6549 found the County to have acted improperly in debt management b The County has not defaulted on any debt obligation c The County follows the debt management guidelines of the North Carolina Local Government Commission THEREFORE , BE IT RESOLVED BY THE BOARD OF COMMISSIONERS FOR JOHNSTON COUNTY THAT 1 The Chairman , County Finance Officer and Clerk , or any of them , are hereby designated as the representatives of the County to file an application for approval of the bonds with the Local Government Commission 2 This resolution shall take effect immediately Commissioner Allen L Mims , Jr moved the passage of the foregoing resolution , Commissioner Cookie Pope seconded the motion , and the resolution was passed by the following vote Ayes James H Langdon , Jr , Cookie Pope , Jerry F Wood , Eleanor N Creech , Thomas M Moore , Allen L Mims , Jr , and Wade M Stewart Nays None Not Voting None There being no further business , Commissioner Eleanor N Creech moved the Board adjourn Commissioner Cookie Pope seconded the motion , which carried by unanimous vote _______________________________________ James H Langdon , Jr , Chairman _____________________________ Joyce H Ennis , ClerkPage