August 23, 1989 - 8:00 PM - County Board of Commissioners Meeting Minutes (Special)

August 23, 3989The Johnston County Board of Commissioners met in special called sessionon Wednesday, August 23, 1989, at 8 00 pm in the Commissioners R0ozm,Johnston County Courthouse Annex, Smithfield, North Caroina, with thefol o ing members presentNorman C Denning, Chairman, Frank B Holding, Vice Chairman, James WCash, Jerry F Wood, DDS and ,John M Booker, `;VxMembers Absent NoneAlso present Richard B Self, County Manager, Eleanor N Creech, Clerk tothe Board, Joyce 1-1 Ennis, Deputy Clerk to the Board, W R Britt, CountyAttorney, and Dr James Ellerbe, School Superintendent462August 23, 1989 ContinuedBoard of Education Members present Dr Dicky Parrish, Chairman, GordonWoodruff, Deacon Jones and Glenda Hales1 IDISCUSSTON - FINANCING OF 47 MILLION DOLLAR BOND ISSUE------------------------------------------------------Chairman 1,,Torman C Denning -welcomed everyone present and explained thismeeting was called to discuss the financing of the 47 million school bondissue with the Board of Education He invited Dr Dicky Parrish, Chairman ofthe Board of Education, to begin the discussionBoard AdjoLirned to Courtroor,,i #2 -Courthouse Annex due to the number ofPeL12DE-2L222D11-Dr Parrish thanked the Commissioners for this opportunity for both Boardsto express their thoughts and questions on the financing the 47 million BondIssue After receiving figures on the bond payback from the Local GovernmentCommission, Dr Parrish said the Board of Education maintains that the bondscan be paid back with little or no tax increase He called on Board ofEducation member, Gordon Woodruff, to explain their plan for payback of thebondsMr Woodruff began by saying the Board of Education recognizes it is theresponsibility of the County Commissioners to arrange funding for all Countyneeds, and that the proposal he presents, on behalf of the Board of Education,is only one possibility of financing which he feels is sound and feasibleHe further stated there are only three basic alternatives to the schoolsproblem 1 the Bond Referendum 2 Pay-As-You-Go Plan and 3 Do Nothing TheBoard of Education proposes the Bond Referendum as the answer, and offers thefollowing as a way to finance these bondsThis fiscal year 1989-1990 - create acomponents—A Debt Service Reduction - He proposes theof debt service and put money into theappropriations from ad valorem property taxesB ADM 11987 School Finance Act State money1997 to be used for capital outlay schoolyearly increaseSinking Fund with three 3County maintain current levelsinking fund no additionalfor school capital, outlaywhich is appropriated throughprojects Figured at a 5 rateC Sales Tax from State and County, based on 2 million the first year andincrease at a rate of 5- compounded annually and pull- into sinking fundMr Woodruff continued, if -the sinking fund 4S created this year, it wouldaccumulate a funding mechanism sufficient to pay back bonds which would be soldin 3 issuances in fiscal years 1990-1991; 1991-1992; 1992-1993 He furtherindicated that this plan involved two variables which could alter the figures1 1he length of the payback 13-16 years compared to 20-25 years and 2 theinterest rate the used 7 112 He concluded by saying the Board of Education is comfortable with thisplan, which they feel shows it is possible to pay back the 47 million BondIssue without any additional ad valorem taxIChairman Norman C Dennin2 remarked he appreciated Mr Woodruffspresentation and likes the figures; however, he fee-is the public must not beMislead islead in thinking there will be no additional tax money needed He said theilay, rate has had to be increased for many different reasons includiing to payback long term debts, and to freeze this amount for the future would mean theCommissioners could not offer the tay, payers any relief I dont believe wecan say we would not have to raise the -tax rateCommissioner Frank B Holding said we have to acknowledge there is adefinite philosophical- difference -between owing 18 million and owing 100million principal and interest on proposed 47 million bonds He explainedthat in his years of service as a Commissioner, the same scenario continues tobe repeated year after year The tax base expands approximately 45 yearly andevery eight years the State requires a property revaluation Historically, theproper-1--y values go up and as a result, the Commissioners can reduce the taxrate After a few years t1le tax rate has to be increased in order to meet thegrowing needs of the CountyI463August 23, 1989 ContinuedCommissioner Holdin2 said he respects the concerns of the citizens andunderstands the position of theBoard of Education He continued saying thescenario that Mr Woodruff presented is one of several that would work, butregardless of the method used, if the bond issue carries, the Board ofCommissioners will be mandated by Law to levy the taxes to pay lie debtMr Woodruff noted that as he understands it, the present countyindebtedness is scheduled to go through FY 1998-1999 He said the Board ofEducation is asking that, as the debt service decreases, would theCommissioners commit this amount of money, which is already in the budget, tonew school constructionCommissioner Holding responded that if the bond issue passes, he willalways vote to balance the budget, including paying off this debt, and everyother County Commissioner, whether this board or a successive board, will haveto do the same; however, no commitment can be made until we know the will ofthe peopleonmissioner games W--Cash- said he feels the public is asking for someindication of what, kind of tax increase would be necessary if the Bond IssuepassesBoard of Education member, Deacon Jones, responded the Board of Educationset out originally to propose to the Commissioners a plan that would notincrease ad valorem taxes, feeling this is the only way the Bond Issue wouldpass He continued, if this -15 not the answer, he feels both boards need towork together to find a way to fund the necessary improvements and build theneeded new facilities for the schoolsCommissioner John M Booker stated he is now, has always been, and willcontinue to work in the direction of improved school facility needs Heremarloed he recognizes the problems the schools have and feels the Board ofEducation IS making an effort to address these needs; You are asking alegitimate question, Commissioner Booker said He has asked the question manyi _R[e S over the last months and had hoped by this time the Commissioners wouldhave a Y,iore complete indication in addressing how 4-10 provide the funds for theschool needs in this County He continued saying that will cost money andthere is no cruestion that ta?,,,?es_are_22in_q_1-12__qo 1p not just because of the-------------- --- _Lschools, but all county government needs continue to increaseCommissioner Booker emphasized that the Board of Commissioners are facedwith funding the entire Countys operation including many mandates of whichthey have no control- He said the Commissioners did what they felt they couldfor schools this year considering they were faced with a large tax increase;however the needs are still there I feel, that no matter what, it is going tocost more money and probably some tax increaseHe continued saying the School Boards proposal is creditable and has somepositive aspects, including the pledge that if the Commissioners are willing tocontinue to service a debt service fund of 2,094,000 a year, then the Board ofEducation must insure that they will not -ask the Commissioners to increasethese funds, which will mean the Board of Education is willing to do whateveris necessary to live up to this commitment Dr Booker questioned whetiherproblems might not arise, such as -mandates, that the Board of Education wou Idhave no control over Im not naive enough to know hat, taxes wont- go upbecause of schools needs, because they will He said he hoped the Board ofCommissioners can come up with a way to provide raoney for a buildirig program,regardless whether the present proposed program remains the same or ismodified He indicated he would be willing to meet agaln to work out asolutionBoard of Education member, Deacon ,ones, mentioned the County might explorespecial i-egislation for a 1 cent or 2 cent increase in local sales tax to fundschool building needsChairman Denningcommented the Board of Commissioners has increased themoney -- appropriated each year for schools by a million dollars or more, andrealizes this has not beer, enough; more schools, more -money is needed amnot against the Bond Issue, Chairman Denning said, I am against saying it isnok- going to cost a tax increase, because I know it isMr Woodruff responded he agrees it is all tax money, but maintains thereis a difference because it is not an increase in current- ad valorem taxesAugust 23, 1989 ContinuedSchool Board member, Glenda Hales, commented, looking for dollars isalways a tough issue and no one likes increased taxes Mrs Hales said the twoboards have different roles and the Board of Education would have been remissif it had not set out to accomplish an educational plan for the children ofthis County; a plan that -involves more than, but includes adequate facilities,which her Board has no way to fund except from the State and FederalGovernments or from the County Commissioners She concluded, We must somehowcome Tip with the best way we can to meet these needs; 47 million is atremendous amount of money, but the needs are tremendous alsoThe Chairman asked if anyone present wished to speakThe following residents from the Corinth Holder area addressed the BoardMike_Moody expressed concern that no consensus has been reached by the twoboards, and the time is short before the Bond Issue comes to vote He agreedthere is need for better education for every child in every community, butquestions how the 47 million would be spent, and what timetable would be usedin spending the money He said the public needs some answers before they voteon the issueConnie Jeffries commented she is concerned for the needs of all children inthe County and is in favor of these needs being met, however, she is concernedhow this amount of money will be appropriated She also expressed concern aboutthe long bus rides of some children, and invited those present to ride on thebuses to realize first-hand the problems these children L dren face?June Carroll expressed concern about the long bus rides that would resultif the School Boards long range plans are implemented With the problems thatface middle school age children, she feels parentschool cooperation isessential, and would be difficult when the schools and teachers are so farfrom the childrens homes Mrs Carroll asked why the School Board will notconsider putting a middle school closer to the Corinth Holder community Shesupports the pay-as-you-go plan saying the people in her community aretaxpayers who deserve the same consideration as other taxpayers in the County,and asked the County Commissioners to be more considerate to their needs thanthe School Board has been She asked the School Board to reevaluate theirlong-range plan and revise it to be fair to all childrenSara-Aman addressed both Boards with the following remarksMy family recently moved to the Corinth-Holder area from Clayton My sonattended Clayton Schools and I was employed at Clayton Primary School for sevenyears I have been amazed to see the difference in educational opportunitiesoffered to the children of Johnston County I never understood until now howunequal the educational opportunities in this county are I submit to you, theCounty Commissioners and Board of Education, that each of you will be heldaccountable for these inequities Years ago in the Corinth-Holder SchoolDistrict our high school children were forced to attend high school at TripleS, requiring them to be bused as much as 4 hours a day, and in some instanceslonger I dont feel that even a high school student should be required to ridea bus this amount of timeInstead of addressing a present problem, such as the children alreadybeing bused a long distance, this Board of Education proposes not only to busOur high school students, but to-bus our middle school students to Micro aswell This will create long bus rides for those children also Instead ofaddressing an inequity that already exists for our children, this Board ofEducation creates a new iniquity Why must the children of Corinth-HolderSchool District be the ones that are always bused How long can the unequaltreatment of Corinth-Holder students be allowed to continue How much must thechildren and parents of Corinth-Holder School District sacrifice in the name ofequal educational opportunity for their children As a parent, I want andexpect an equal education for my children, equal in every -way to the educationoffered to other children of Johnston County if my children are required toride 4 hours to attend school, why is it not fair and equitable to ask otherparents in the County to make the same concession We pay the same taxes andshould receive the same benefits as other citizens in Johnston CountyThe time has come f orwill parents sit back and allo,shuffle our- children around atthe past with regard to busing8th graders only creates a newchanges to be made in Johnston County No longerW this Board of Education or any future Boards totheir discretion There were mistakes made inCorinth-1-1older children Busing our 6th, 7th andset of problems JII465August 23, 1989 ContinuedIf ont believe in busing ch-ildren this long, the plan proposedi You dfor the next twenty years in Johnston County needs to be changed, nowI plan to work as hard as -1-1 can to defeat this bond referendum because, asneeded as this bond referendum is, if does not meet the educational needs ofthe Corinth-Holder children in closing, I would like to quote from theLong-Range Plan for ­-Johnston County, the Time to Act is now - for the sake ofour childrens future° The time to ac-;_ is now, for the children ofCorinth-1-1older to receive long -awaited educational- opportunities You, asCounty Commissioners and Board of Education members have not provided an equal,treatment and educational opportunity for all children of this countyTherefore, you must reevaluate your future goals and make adjustments to allowfor that equality Twenty more years is too long for our children to wait AsYou have said ,The Ili-me is nowBay-Aman challenged Dr Parrish and School Board members to ride a schoolbus for 2 to 2 12 hours the first day of school and experience the discomfortthe children feelRick Hinnant said his children leave home on the school bus at 6 am anddont return home until 445 pm in the afternoon This concerns himMarilyn__M22dy, a public school teacher, said the c1401der is not a negative political- committee,and, is readyeither board in any way to better the schools She saidsupport the Bond Referendum, however, they are will Ongcome uo with an alternate Plan if the Bond Issue la41SDMMittkee from Corinthand anxious to helpthe group does notto work hard to helpChairman Denning thanked everyone for their comments and said the twoboards will continue to work together to arrive at the best solution for al1Johnston County studentsUpon a mot-on by Commissioner Jerry IF Wood, seconded by Commissioner JamesW Cash and carried by unanimous vote, tAl-le Board adjournedJo?coy e 7HH Ennis, Deputy ClerkEleanor N Creech, Clerk - - - - --lerk __ __Norman C Denning, Chairman ---- ----