August 21, 1995 - 8:00 AM - County Board of Commissioners Meeting Minutes (Special)

August 21, 1995The Johnston County Board of Commissioners met in special session Monday,August 21, 1995, at 8 00 oclock am in the Commissioners Meeting Room, JohnstonCounty Courthouse Annex, Smithfield, North Carolina, with the following membersPresent Norman C Denning, Chairman, Dr John M Booker, Vice Chairman,James W Cash, Jerry F Wood, Cecil M Massengill, Eleanor N Creech andCookie PopeAbsent NoneAlso Present Richard B Self, County Manager, and Joyce H Ennis, Clerk to the BoardThe Chairman called the meeting to order1 Financing School Construction - DiscussionThe Chairman opened the floor for discussion on financing school constructionneeds in the CountyCommissioner John M Booker spoke of the 110 Million school capital needsrequest from the Board of Education and the limited funds for financing these needs Hereferenced the Commissioners February request to the General Assembly for local billsto allow Johnston County citizens the opportunity to vote for additional revenue sourcesfor school construction, and the failure to get these bills passed He noted, in his opinion,a one-cent sales tax increase would be the best way to meet facility needs now and in thefuture Unfortunately, with the General Assemblys recess, this opportunity has passed,at least for the time being He urged those in attendance to contact our legislators and askthem to support our local bills in the next sessionCommissioner Booker stated that now, working with the funding limitations andthe response from the legislators, the Board must decide what can be done with theamount of money available In the past few years, the County has financed several schoolsthrough Certificates of Participation and can continue to do so, however this will addressonly a limited number of projects A larger commitment would have to be voted on, andthe question is, how much are the people in the County willing to support He mentioneda possible 15 Million COPs and a 50 Million School Bond Issue to be financed overa 15 year period He noted such a proposal would include an increase in ad valorem taxesfor several years during the 15 year period, however, hopefully this could be offset by alarger than expected growth in the tax base and or the requested one-cent increase insales taxKay Carroll, School Board Chairman, commented that his Board would welcomeany program that would help solve the many problems with school facilities in the CountyHe concurred with Commissioner Booker that the best solution would be a one-cent salestax increase, and assured everyone that his Board would continue to seek support forJohnston Countys local bills at the legislative levelConcerning the proposed 65 Million package referenced by Commissioner Booker,Chairman Carroll stated this amount would address approximately one-half of the currentschool capital needs His Board would have to look at the projects and decide how to putthe most children in better facilities 65 Million would be a great help, but would notsolve all the problemsChairman Denning stated, in his opinion, the local bill package sent to Raleigh,which included the impact fee, land transfer tax, and one -cent sales tax, wouldbe the onlyfair means of raising the necessary revenue for school construction He stated he does notbelieve that ad valorem taxes are the answer, but would not vote against putting anyproposal before the citizens He noted the school capital needs are tremendous and mustbe dealt with126Commissioner Booker read a proposal consisting of a 15 Million COPs forfinancing new schools at Glendale Kenly and Corinth Holder, as well as addition toCleveland Elementary; and a 15 year, 50 Million School Bond to finance as much aspossible of the additional school capital needs, to be determinedby the Board of EducationHe noted that in figuring the pay back, the highest property tax increase would bebetween 85 and 9 cents for one year, but stressed this would hopefully be offset by greaterthan anticipated growth in the tax base, or other additional revenue sources that mightcome to the CountyCommissioner James W Cash voiced his support for the proposal He commentedthat all Board members would rather solve this problem without a property tax increase,but with the tremendous needs, bond or no bond, in his opinion, there will have to be someproperty tax increase The Commissioners must address the issue now, they cant dependon the legislatureCommissioner Jerry F Wood stressed that the citizens of the County need torealize that the Commissioner have no other means at this time to build schools otherthan a property tax increaseCommissioner Eleanor N Creech concurred that there is no choice at this time butto put the proposal before the public, even though it appears it will include some advalorem tax increase She stressed that the Board wants the citizens to understand thesituation and know where the money would come from and on what it would be spent Sheasked for assurance that the Glendale Kenly and Corinth Holder projects would be firstpriorityIt was pointed out that with Certificates of Participation, the money borrowed isbased on particular projects and the first two priorities wouldbe schools at Corinth Holderand Glendale Kenly, which are ready to go to bids Chairman Carroll stated his Boardwould have to meet to decide exactly how the rest of the money would be applied to thedifferent projects, but assured the Commissioners that the third priority remains a newschool at PrincetonCommissioner Cecil M Massengill pointed out the Board has been struggling withthis issue for many months It has been important to every Board member that themessage to the citizens be totally honest letting the people know what this would cost Henoted that a one-cent sales tax increase would solve much of the problems; however thedecision must be made by the citizens He stated he would support a proposal that carriedthe price tag and how it would be paid forCommissioner Cookie Pope added she could support a 50 Million Bond Issue whichthe citizens She voiced hope that the legislature would pass a state bond and possible aone-cent sales tax increase She stated she would not support the 15 Million COPSbecause she campaigned against borrowing money without the peoples consentMotion to Request Legislature to Allow Citizens to Vote on One-Cent Sales TaxIncreaseFollowing further discussion Commissioner John M Booker moved the BoardContact each State representative and senator representing the County and ask theirsupport for local legislature allowing the citizens of Johnston County to vote on a one-centsales tax increase to pay for school capital needsvoteCommissioner Eleanor N Creech seconded the motion, which carriedby unanimousMotion to Participate in S 15 Million COPs and 50 Million School Bond IssueCommissioner John M Booker moved the Board finance in a 15 Million Certificateof Participation to construct schools at Glendale Kenly and Corinth Holder, and additionsto Cleveland Elementary School Commissioner Booker further moved the Board call fora 15 year, 50 Million General Obligation School Bonds to finance as many127school capital projects as possible, which were outlined in the 110 Million needs listprovided by the Board of Education, with the understanding the largest property taxincrease for any one year would be no more than 9 cents, and if other sources of revenuebecome available, that revenue would be used in lieu of ad valorem taxes CommissionerBooker included in the motion authorization for the County Manager to proceed with allnecessary steps for the bond issue, including the adoption of the following resolution ofintent to file application with the Local Government CommissionvoteCommissioner James W Cash seconded the motion, which carried by the followingAyes Norman C Denning, John M Booker, James W Cash, Jerry F Wood,Eleanor N Creech, and Cecil M MassengillNay Cookie PopeCommissioner Pope stated she is not against education, but in her opinion, theproposal presented is not the best or most practical way to solve this problemRESOLUTION PROVIDING FOR PUBLICATION OF NOTICE OF INTENTTO FILE APPLICATION WITH RESPECT TO UP TO 50,000,000 GENERALOBLIGATION SCHOOL BONDS WITH LOCAL GOVERNMENT COMMISSIONWHEREAS, the Board of Commissioners of Johnston County the Board hasdecided to pursue the issuance of general school obligation bonds in the maximumaggregate principal amount of 50,000,000 the Bonds under the Local Government BondAct the Act to finance, in part, the acquisition, construction and equipping of schoolfacilities; andWHEREAS, under the Act the issuance of such bonds must be approved by theLocal Government Commission and pursuant to G S § 159-50 of the Act, a notice of theintention to file an application with the Local Government Commission must be publishedprior to filing of the application; andWHEREAS, the Board intends to make certain capital expenditures relating to theacquisition, construction and equipping of school facilities prior to the issuance of theBonds, and to reimburse such expenditures out of the proceeds of the Bonds;NOW, THEREFORE, THE BOARD OF COMMISSIONERS OF JOHNSTONCOUNTY, meeting in regular session at Smithfield, North Carolina, on August 21, 1995,do the followingBE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF JOHNSTONCOUNTY1 The Clerk to the Board shall cause a notice, in substantially the form setforth below, to be published in The Smithfield Herald{FORM OF NOTICE}NOTICE OF INTENTION TO FILE AN APPLICATIONWITH THE LOCAL GOVERNMENT COMMISSIONCONCERNING 50,000,000 GENERAL OBLIGATION SCHOOL BONDSNotice is hereby given that the Board of Commissioners of Johnston County, NorthCarolina the Board intends to file an application with the Local GovernmentCommission the LG6 for approval of a bond issue pursuant to the Local GovernmentBond Act G S § 159-43 et seq It is proposed that the bonds be general obligations ofJohnston County in the maximum principal amount of 50,000,000 and be issued tofinance, in part, the acquisition, construction and equipping of school facilities Any citizenor taxpayer of Johnston County may, within seven days after the date of publication ofthis notice, file with the Board and the LGC a statement of any objections he or she mayhave to the bond issue at the following addressesBoard of CommissionersJohnston CountyJohnston County Courthouseand128P O Box 1049Smithfield, North Carolina 27577Mr Robert M HighLocal Government Commission325 N Salisbury StreetRaleigh, North Carolina 27611JOHNSTON COUNTY BOARD OF COMMISSIONERSBy Joyce H Ennis, Clerk2 The Board hereby declares that it reasonably expects to make certain capitalexpenditures for the acquisition, construction and equipping of school facilities, and toreimburse such expenditures out of the proceeds of the Bonds, up to a maximum amountof 50,000,000 This resolution is intended to be a declaration of official intent underTreas Reg § 1103-183 This resolution shall take effect immediately2 ABC Board to Use Funds for BuildingUpon a motion by Commissioner Jerry F Wood, seconded by Commissioner CecilM Massengill and carried by unanimous vote, the Board approved the use of 96,100 ofABC revenue to be used by the ABC Board in the construction of a buildingThere being no further business, Commissioner John M Booker moved the Boardadjourn Commissioner Jerry F Wood seconded the motion, which carried by unanimousvoteNorman C Denning, ChairmanJoyce H Ennis, ClerkDetailsAnnotationsEntry PropertiesModified11192013 120108 PMCreated4142003 100846 AMTemplateMinutesFieldsMinutes - TypeSpecialMinutes - Date8211995Book20