June 2, 1988 - 7:30 PM - County Board of Commissioners Meeting Minutes (Special)

Meeting of Johnston County Board of CommissionersJune 2, 1988The Johnston County Board of Commissioners met in special session on Thursday,June 2, 1988, at 730 pm in the Commissioners Room, Johnston County Courthouse,Smithfield, North Carolina, with the following members presentNorman C Denning, Chairman, Frank B Holding, Vice Chairman, James W Cash,Howard Benton and John M Booker, DVMMembers Absent NoneAlso present Richard B Self, County Manager and Eleanor N Creech, Clerk to theBoardThere were several people present and the Chairman extended an invitation to anyonethat wished to address the BoardTwin Acres Road Clayton, North Carolina, brieflyMr T M Langford, 2100 Twi y , Yexpressed concerns regarding the need of zoning regulations in the County and wished tohear the 1988 -1989 Proposed Budget presentationRichard B Self, County Manager and Budget Officer presented to the Board the1988 -1989 Proposed Budget and made the following presentationHerein is presented for your consideration the PROPOSED FY 1988 -1989 OPERATINGBUDGET This is the product of many hours of work by county agencies and staffThe Budget Process began with a comprehensive review of the services provided byeach agency and the areas which are MANDATED by either the State or Federal governmentsEach agency studied the level of services being provided, any possible areas in which theycould reduce service without adverse impact on the citizens of Johnston County, and anypossible savings in providing these servicesGENERAL PHILOSOPHYAs Budget Officer, North Carolina General Statute 159 -11 requires that a balancedbudget be submitted to the Board Prior to initiating the budgetary process, the Boardstated that the current tax levy of 0070 was to be maintained In order to comply withthis requirement, services which have been provided in the past to the citizens of JohnstonCounty have been reduced or eliminated in this Proposed Budget No new fees have beenproposed in this budget Many of the reduced and or, eliminated services will becontroversial, but in order to comply with the 0070 tax rate, difficult decisions were madeand the PROPOSED BUDGET maintains the current tax levy In all my years in government,this budget represents the most difficult to prepare because of uncontrollable factors imposedupon the county by the State of North CarolinaIn relationship to inflation, the Countys tax base has DECREASED The GeneralAssembly has granted additional property exemptions AGAIN this year Recent examples overthe past two years include the elimination of personal property 20,000,000; farm use value90,700,000; retail and manufacturer inventories 200,000,000; Senior Citizen exemptions25,000,000; and livestock 2,700,000 This short list totals over one -third BILLIONdollars in values which are no longer taxed The result of exemptions is the shifting of thetax burden to homeownersIn addition to removing property from the tax base, the State of North Carolinathrough the General Assembly has increased mandated programs and increased the countysrate of participation in these `programs The result is more money the county MUST PAY TOTHE STATE This has the same effect of reducing the tax base of the county and is beyondthe control of the County Commissioners and the county staffThe employees of Johnston County are to be commended for continuously providingour citizens with efficient services The Concern expressed by our employees for the level ofservices and for cost control exemplify the dedication which is a credit to the Board ofCommissioners and the public in generalThe State of North Carolina has emphasized the need for quality education as havethe County Commissioners The State has implemented the Basic Education Plan which is welland good since education is vital to the continued growth and well-being of our nation, Stateand County However, while the County has truly shown its commitment to education,,,, by rincreasing its financing of education by over 33 during the past two years, the State ?hhasfallen far short in providing the necessary funds to adequately support quality education Inaddition to more local tax dollars, the money formerly paid by the county for VocationalEducation and office staff has been diverted to assist in other areas of current expenseitems in the School budget This has the same effect as increasing the Countys contributionwell past the 330 of new funds?I263June 2 1988 Cnntinm -A Throughout the State, counties are supporting the educational system by employingteachers who are referred to as locally paid teachers in an effort to allow schools theopportunity to receive accreditation by Southern Association of Colleges and Schools Therecognition is important in that it signifies to the community and the nation that the schoolsare of a certain level of quality in their educational instruction In addition, this is a majoritem in attracting industries to counties The State of North Carolina DOES NOT PROVIDEenough funds to fulfill this basic requirement, and therefore, the counties have been calledupon to provide these additional teachers, supplies, books, etc It is widely recognized thatNorth Carolinas pay scale for teachers is extremely low compared to other states, yet theState has refused to address this issue, rather the counties are pressured to provideadditional salary supplements The State also grants across the board salary increases,provides longevity pay, merit pay, dental insurance, disability insurance, etc for Statesupported positions and the county provides the same benefits to the locally paid teachersThese benefits are much greater than those provided regular county employees whichcreates an imbalance in the publics perception of ALL GOVERNMENT EMPLOYEESIn order to maintain the current tax levy, sacrifices have been made I do not agreewith many of the cuts which are reflected in the PROPOSED BUDGET, however, I did not seean alternative Because of actions by the State, many services which are or should beprovided have eliminated Some of the cutbacks are elimination of recreation grants whichwere directly tied to Revenue Sharing funds eliminated by the Federal Government ;reduction in funds to the NC Forestry Services; elimination of support to the Red Crossand the North Carolina Tobacco Museum; elimination of many needed water projects; delay onaddressing the space problem in Social Services, ASCS and the Health Department; reductionin the funds requested for education; elimination of all but the basic increase in employeecompensation; and finally, it does not allocate additional funds to the majority of all Countyfunctions except those over which we have no controlThe backbone of our economy is the farmer In our County,we continue to watch adecline in agriculture We must continue to seek out ways to helpthe farming communitySolutions must be found to address the entire farming issue if weare going to preserve avital aspect of our economy and heritage New industrial growthhas helped, to a lesserextent now that inventories are exempt from taxes and the corporatestate tax rate hasincreased but more is needed New industrial growth must beplanned for and the newzoning will be a tremendous asset upon its completion to this endACCOMPLISHMENTS FY 1987 -1988The budget for FY 1987 -1988 accomplished many notable goalsThis was accomplishedwithin the constraints of keeping taxes down, without RevenueSharing Funds, and withdeclining water and sewer grants, as well as increased demandsin the area of mandatedexpensesSERVICE OBJECTIVE ACCOMPLISHMENTS1 Improve Existing County Facilities a Ongoing- paintingprogramb Construction oCourthouse Jail Annexc Paving additionalparking lotd Planning the HancockStreet propertye Beginning theMental Health Additionf Relocating HomeHealth2 Improve Health Related Services a Home Health hascontinued to grow andserve the needsof our citizensb Reorganized te Health Department toimprove servicedelivery3 Landfill and Sanitation a Obtained Stateapproval to use geotextilefabric at landfillwhich will increase thelife of the landfillb Through monitoringwaste at the landfillout of countywaste has been reducedc Continue to seekout box sites4 Planning a Mapping projectis continuingb Public Hearingheld on Zoningc Use of BuildingInspectors at migrantcampsd continued incrase in construction at arapid rate inhe county264June 2, 1988 Continued5 Economic Development a New industry has located in the countyHoward Trucking; Morganite; CarolinaBuilders; Sanderson Equipment;Evnironmental Filters; MB Apparel;Expansions Kabi Vitrum, Inc; EatonCorporation and Servodyne IndustriesThese are just a few of the additions toour county over the past twelvemonthsb Extension of water lines to CarolinaPottery; Webb Street in Selma; KabiVitrum Inc; JC Prison Unit; SR 2398loop; Buffalo Creek Pump Station; andthe West Smithfield Meter VaultIn addition removal of phosphates at thewastewater plant; and the aerial surveyin preparation for the Four Oaks toBenson water line; casings under I -40for future growth; and the creation ofa new Sanitary District to providewater6 Education a At the request of the School Board theCounty agreed to a 9,000,000 Schoolbond vote by the citizensb Increased appropriations to education byover 24 almost 2,000,0007 Public Safety a Purchased Data Processing Equipment forthe Sheriffs Departmentb Began Emergency Management Officec Purchased new vehicles for the Sheriffd Opened a satellite jail in response to 4federal law suitse Increased medical care and exercise for ,inmatesf Appropriated additional funds for drugenforcement and undercover workThese are just a few of the many accomplishments the County should be proud of and whichwill benefit all the residents of Johnston County through better servicePROPOSED OPERATING BUDGET FY 1988 -1989The Proposed Budget has been prepared within the framework of keeping the tax rateat 00070 The total Proposed Operating Budget, including all funds except Fire Districtsamounts to 34,772,526 The appropriations are allocated as follows to the major categoriesof expendituresPURPOSE1987 -88 BUDGET1988 -89 BUDGET OFCHANGE,General Government32,513,84030,964,854-48Revenue Sharing840,000240,000-7141Tourism Authority200,000200,0000Public Library370,761390,092+52Water Sewer1,698,3513,001,151+7612Waste Treatment834,295834,2950Mental Health3,877,0284,378,239+1293Revaluation41,750100,000+1395 4 TOTAL40,376,02540,108,631-6651 Funds obligatedin prior years thathave been carriedforward2 State Water Loan funds 1,836,000Funds obligated in prior years that have been carried forward 345,151Loans to Kenly and Clayton 750,000New Appropriations 70,000265June 2, 1988 Continued3 Increase in county funds as ccmpared to total budget 134 N C General Statute Requirement5 Recommended Education Budget is up 851 as compared to the inflation rate of45 to 53 If expense for education is removed from the budget, the TotalBudget, for all funds would show a DECREASE of 36The appropriations are supported by an ad valorem tax rate of 70 cents per 100 propertyvaluation The rate of collection is calculated at 94 on a valuation of 1,863,000,000 Inaddition, the following fees and charges are proposed1 Continuation of Schedule B License as previously adopted by the Board2 Continuation of all fees and charges from FY 1987 -88This budget represents a conscientious effort to maintain needed services within theconstraints of the existing tax rate Expansion has been limited in most cases to areas wherecontinuing grants could be obtained or where fees for services provided the appropriaterevenuesThe major items in the FY 1988 -89 Proposed Budget are as follows1 Education The Capital Outlay for Schools represents 100 of the additional ZSales and Use Tax, 40 of the first 1 Sales and Use Tax and 420,000 of the 1 Sales andUse Tax This is divided between Capital Reserve and Current Capital Improvements If theestimate of anticipated revenue is too low, any additional funds in the same proportion wouldbe allocated to the Schools at that time2 New Positions REQUESTED total 28 excluding Home Health which fluctuates withthe demand for service and does not impact upon the countys revenues REQUESTEDpositions were as follows Elections - 1 Clerk Typist III; Tax Administration - 1 Appraiser;Sheriff - 6 Deputies, 14 Jailers and 2 Dispatchers; Child Support Enforcement IV -D Program -2 Child Support Agents; Animal Control - 1 Pound Keeper; Inspections 1 Building Inspectorand 1 Clerk Typist III to begin in January New Positions RECOMMENDED are as follows Tax Administration - One Real EstateAppraiser 14,100; Child Support Enforcement IV -D Program - One Agent 15,300, salarypaid out of increased revenues in the program; Communications - One Dispatcher _13,5 4bringing total to 7 in this department 24 hours day; Jail - 1 Cook 9,732; Animal Control -One Pound Keeper 9,732 to keep pound open more hours; Inspection - One position, OneClerk Typist III3 Solid Waste Disposal continues to capture a great deal of attention We arecurrently experimenting with geotextiles in lieu of dirt to extend the life of the landfill; aset of scales is included in the budget to better determine the quantity of waste beinghandled which will be used in the decision making process on incineration, compaction,shredding, etc4 Market Salary Adjustment in the Countys compensation package of 42 TheConsumer Price Index indicates that Food and Energy cost have increased 53 and overallinflation for last calendar year was 44 Last year the employees received a 32 adjustmentThe State is anticipating between 5 and 65 salary ,adjustment in addition to the newdisability insurance paid by the State, longevity pay, reclassification and merit money ThisProposed Budget does not include any salary funds other than the stated ? 42 The Countyis in need of a pay plan study and this should be seriously considered this fiscal year to beeffective next year in place of the cost of living5 Jail Courthouse Annex Funds have been provided to heat, cool, light, water,clean, and insure the facility6 Water and Sewer Previous projects which were begun or committed arecontinued New projects include a water study and a chlorine booster pump at Wilson MillsIf State funds are made available, the Four Oaks to Benson water line extension and theexpansion of the reservoir and clear water storage are plannedItems beyond the control of county agencies include increases in social security increasefrom 715 to 751 , retirement increase from 858 to 874 , major medical increase from75 to 100 month, electricity anticipate a minimum of 10 increase in rates, and postageincreased from 22 cents to 25 cents Revenue to support this Proposed Budget is derived from several major sources PropertyTax collections, Sales and Use Tax, and finally State and Federal Block GrantsThis FY 1988 -89 PROPOSED OPERATING BUDGET is respectfully submitted this 1st day of June,1988266June 2, 1988 ContinuedThe Budget Officer continued with some highlights of FY 88 -89 BudgetBudget request for FY 88 -89 for all funds totaled 42,473,286 and has been reducedto 37,410,526 General Fund request totaled 33,647,446 and has been reduced to30,474,606 This represents a 15 increase in the budget as compared to the current yearsbudgetRevenues have DECREASED from 36,430,442 to 35,462,093 General Fund revenueshave DECREASED from the current 30,855,765 to 28,980,093 This is attributable to severalthings, most notable the actions of our General Assembly in removing tax base personalproperty, business inventory frozen at 1985 levels, increased exemptions There is a strongmove this session of the General Assembly to remove Intangible Tax which represents500,000 of revenue to our CountyThe annex will cost the County approximately 9,200,000, of this amount, almost2,000,000 will be needed prior to December of 1988 This additional two million has created aproblem in cash flow and availability of fundsThe Budget Officer further explained budget requests and recommendations by graphsshowing the percentage of increase or decrease for various agencies, relating to specificincreases in Human Services largest section in entire budget and the Countys strong faithin providing funding for education He reviewed each new position request in the proposed budget and gave reason forthe needs in General Government, Environmental Protection, Public Safety, Economic andPhysical Development, Water Projects, Cultural and Recreation, Human Services and EducationHe explained there are no new fees proposed in this budgetCommissioner John M Booker asked for a comparison in the school budget - of whathas been requested for 1988 -89 and what was approved for 1987 -88The Chairman commented on the lack of County, tax base growth because of the taxstructure change by the General Assembly relating to the effects on county revenuesCommissioner Benton reminded the Board that he will be looking at departmentalsupplies in comparison to last yearsCommissioner Booker asked the County Budget Officer what one cent of the tax ratewill generate; response - 175,000There being no further business to come before the Board at this time, CommissionerJohn M Booker moved that the Board adjourn Commissioner James W Cash seconded themotion which carried unanimouslyEleanor N CreechClerk to the BoardiNorman C Denning, ChairmanI 1IikihI jIDetailsAnnotationsEntry PropertiesModified11192013 15220 PMCreated492003 103950 AMTemplateMinutesFieldsMinutes - TypeSpecialMinutes - Date621988Book18