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BOC Minutes June 7 2016 approve June 7, 2016 1 PERSON COUNTY BOARD OF COMMISSIONERS JUNE 7, 2016 MEMBERS PRESENT OTHERS PRESENT David Newell, Sr. Heidi York, County Manager Tracey L. Kendrick Jimmy B. Clayton Brenda B. Reaves, Clerk to the Board Kyle W. Puryear B. Ray Jeffers The Board of Commissioners for the County of Person, North Carolina, met in recessed session on Tuesday, June 7, 2016 at 9:00am in the Commissioners’ meeting room in the Person County Office Building for the purpose of a budget work session. Chairman Newell called the recessed meeting to order. County Manager, Heidi York asked the Assistant Finance Director and Budget Manager, Laura Jensen to update the Board on the following technical budget adjustments. Ms. Jensen presented the following noted revenues and expenditures which offset for a balanced budget. Revenues Amount PATS Admin ‐ Transportation Grant ($17,700.00) Emergency Mgmt ‐ Tier II Fee Grant ($104.00) Self‐Funded Health Ins ‐ Premiums $162,219.00 Self‐Funded Health Ins ‐ Misc Contributions $2,000.00 Consolidated E911 Fees $483,430.00 Emergency Telephone Systems ‐ Fund Balance  Match for CAD project $16,000.00 TOTAL $645,845.00 June 7, 2016 2 The Board moved the budget discussion to the recommended vehicles in the Manager’s budget and asked the departmental directors to address the need, the recorded maintenance and state whether the vehicle would last another year. The list of the Manager’s recommended vehicles are as follows: Expenditures Amount PATS Operations ‐ RGP & EDTAP Exp ($6,799.00) PATS Operations ‐ M&R/Vehicle ($10,901.00) Emergency Mgmt ‐ Tier II Fee Grant ($104.00) Self‐Funded Health Ins ‐ Admin ($2,127.00) Self‐Funded Health Ins ‐ Claims Exp $166,346.00 Emergency Telephone Systems ‐ Cont.  Serv.$43,000.00 Emergency Telephone Systems ‐  Telephone $76,440.00 Emergency Telephone Systems ‐ Cap  Out $5k+$379,990.00 TOTAL $645,845.00 June 7, 2016 3 Vehicles Department Model Year Description Actual Mileage Criteria Mileage Replace With Price Estimate Last Another Year Animal Services 2007 F-150 4 X 4 132,252 100,000 F-150 4 X 4 $ 31,594 No General Services 2007 F-150 4 X 4 107,417 100,000 F-150 4 X 4 $ 31,594 Yes Social Services* 2005 Dodge Caravan 121,424 120,000 Dodge Caravan $ 24,916 No 2009 Dodge Charger 148,133 120,000 Taurus $ 24,386 No Tax 2002 Ford Explorer 103,262 120,000 Ford Escape $ 23,284 No Sheriff 2008 Dodge Charger 105,110 90,000 Dodge Charger $ 28,500 No 2008 Dodge Charger 118,905 90,000 Dodge Charger $ 28,500 No 2012 Ford F-150 111,734 100,000 Ford F-150 $ 28,500 Yes 2012 Dodge Charger 95,563 90,000 Dodge Charger $ 28,500 No EMS/911 2009 Ambulance 173,873 250,000 Ambulance $ 227,900 No Economic Dev 2001 Expedition 147,368 120,000 Ford Exped $ 37,086 Yes PATS** 2008 Van 157,738 100,000 Van $ 58,500 No 2008 Van 154,334 100,000 Van $ 58,500 No 2008 Van 160,040 100,000 Van $ 58,500 No TOTAL $ 690,260 *DSS – 50% or 75% reimbursed by state **PATS- 90% reimbursed by state Chairman Newell estimated of the $690,260 proposed for new vehicles, approximately $158,000 was estimated to be reimbursed by the state thereby leaving a net cost of $532,265. A motion was made by Chairman Newell and carried 5-0 to establish a Vehicle Fund and appropriate $600,000 for fiscal year 2016-2017 and direct the County Manager to evaluate the vehicles on an individual basis as opposed to the flat mileage criteria. Chairman Newell recommended staff to calculate the costs of life of each vehicle. Ms. Jensen stated upon establishing a vehicle fund and appropriating funds, the revenues from the sale of surplus vehicles could be added to grow the fund noting any revenue from the sale of PATS vehicles was mandated to be used in the PATS budget for maintenance and repair use. June 7, 2016 4 The action above for a vehicle fund created a surplus in the recommended budget of $90,260 at this point in the budget work session. The Board then moved to further discuss positions that were not included in the Recommended Budget. Commissioner Jeffers stated in the Board’s last work session, he noted his preference to replace the eliminated Assistant Register of Deeds positon with a Deputy Register of Deeds position and to fund for the remainder of the fiscal year 2016- 2017. Ms. York provided information to the Board for a Deputy Register of Deeds at a grade 61 would require $24,543 additional funding for fiscal year 2017. The 12-month recurring cost for this position would be $42,074 which included salary, benefits and supplies. Ms. York stated her recommendation was to cut the position at the staff transition and for staff to evaluate after a trial period noting the evaluation would be easier when the positon was vacated. Ms. York stated she had discussed peak part-time assistance with the Register of Deeds Elect. Chairman Newell stated if a staff-filled position was terminated and eligible for unemployment, the maximum amount paid is $350 per week for a period of 24 weeks. The cost of unemployment payout x 120% is the cost to the county. Ms. York added that the County Personnel Policy has a provision for a reduction in force positions paying out any accumulated sick leave. Register of Deeds Amanda Garrett stated that under the bond of the Register of Deeds, staff serve either as an Assistant or a Deputy and supplementing with a part-time staff who was not trained, deputized nor sworn-in would provide a liability to the county. Ms. Garrett noted with $20,000 coming out of the Register of Deeds Technology Fund, her budget presented as a flat budget. Ms. York added the $20,000 supplements the Register of Deeds budget in the contracted services line. A motion was made by Commissioner Jeffers and carried 4-1 to fund a Register of Deeds Deputy position for the remaining of Fiscal Year 2017 at $24,543 using surplus funds from the recommended budget for vehicles. Vice Chairman Kendrick cast the lone dissenting vote. Assistant County Manager, Sybil Tate provided an overview at this point of the Recommended Budget Running Total. The HALO position that was inadvertently left out of the Recommended Budget was included back into the budget at a cost of $56,633. Also, $1,763 had to be added to the Inspections budget to cover the costs of fire alarm installation for the County Office Building. Ms. Tate noted the two following savings to the budget: $46,900 in an adjustment in tax value for Spuntech in the economic catalyst fund and $950 reduction for the Clerk of Court’s software. June 7, 2016 5 With the savings of $90,260 from the recommend vehicle budget and Board appropriation of $24,543 for the Deputy Register of Deeds position, the running total was a surplus of $55,171. Chairman Newell asked the Board if there were any other positions the Board wished to discuss. Commissioner Clayton asked Chairman Newell, in his role with Economic Development, if he thought there was a need to extend the current part-time Senior Administrative Assistant to full-time. Chairman Newell opined that moving the part-time position to full-time would increase staff workload efficiency, continuity and security of the Economic Development office. Vice Chairman Kendrick and Commissioner Puryear stated opposition to moving the position to full-time. A motion was made by Chairman Newell and carried 3-2 to make the Economic Development Senior Administrative Assistant position full-time in fiscal year 2017. The additional funds to budget for Fiscal Year 2017 was $28,975 with 12-month recurring costs for salary, benefits, and supplies at $44,980. Chairman Newell and Commissioners Clayton and Jeffers voted in favor of the motion. Vice Chairman Kendrick and Commissioner Puryear voted in opposition to the motion. The Board turned its discussions to the funding for volunteer fire departments. A motion was made by Chairman Newell to approve the funding for Volunteer Fire Departments (VFDs) as presented however, Chairman Newell withdrew the motion noting his opinion that the County should establish a fire fund for reimbursement as the current trip reimbursement based on call volume ranged from $85 to $644 per call. Commissioner Jeffers suggested a fire commission be established to evaluate funding criteria for the Fiscal Year 2017-2018 noting the lateness to change the criteria for Fiscal Year 2016-2017. Vice Chairman Kendrick asked if the VFDs audit was skipped for year 2 of the current contract which was confirmed by the Manager and Finance Director. Finance Director, Amy Wehrenberg stated the audit evaluated was for Fiscal Year 2014. By skipping the audit requirement for Fiscal Year 2015, it will be due again following the close of Fiscal Year 2016. Ms. Wehrenberg stated there were no funds appropriated for this audit in the budget however, the Board could direct staff to release a Request for Proposals and appropriate based on the bids at the mid-year. It was the consensus of the Board to further discuss the funding for the VFDs after all other items had been discussed. June 7, 2016 6 The next item for Board discussion was the request for funding from Roxboro Area Chamber of Commerce for its Personality event. A motion was made by Commissioner Puryear to appropriate $3,000 to the Roxboro Area Chamber of Commerce for its Personality event. Commissioner Puryear amended his motion to appropriate $2,500 instead of $3,000. The amended motion failed 2-3. Commissioners Puryear and Jeffers voted in support of the amended motion. Chairman Newell, Vice Chairman Kendrick and Commissioner Clayton voted against the amended motion. The Board then reviewed each departmental budget in the Recommended Budget with staff answering questions that arose. A motion was made by Chairman Newell and carried 3-2 to appropriate $11,000 to the General Services’ budget for contracted lawn maintenance at the Person County Museum. Chairman Newell and Commissioners Clayton and Jeffers voted in favor of the motion. Vice Chairman Kendrick and Commissioner Puryear voted against the motion. When reviewing the Special Appropriations budget, Vice Chairman Kendrick addressed the $100,000 funding appropriation to the Senior Center in the following motion. A motion was made by Vice Chairman Kendrick and failed 2-3 to reduce the $100,000 appropriation to $75,000 for the Person County Senior Center. Vice Chairman Kendrick and Chairman Newell voted in support of the motion. Commissioners Puryear, Clayton and Jeffers voted against the motion. A motion was made by Chairman Newell and carried 5-0 to fund an additional $5,000 to Drug Court making the total appropriation in the Fiscal Year 2016-2017 at $15,000. Commissioner Puryear asked for the Board’s consideration to have the Person County Schools’ Superintendent, Danny Holloman address the Board on any final funding requests. Mr. Holloman stated that regardless of the enrollment of the Person County Schools, the local funding in the current expense appropriation was shared among the approximately 5,700 students (inclusive of the charter schools). Mr. Holloman wanted the Board to understand that amount per pupil expenditure followed the student regardless of the school of choice. June 7, 2016 7 Mr. Holloman stated the Senate was taking away the start-up funding for the comprehensive innovative high school or otherwise known as early college. Mr. Holloman said Person County Schools was supposed to receive $1.5M over a 5-year period for Person County Early College to begin classes in August 2016. Mr. Holloman noted they are in a holding mode. Mr. Holloman told the Board he had already cut positons through attrition or by sharing positons between two schools. Mr. Holloman confirmed that Bethel Hill will not have a sixth grade next school year noting that some students will be enrolled at Roxboro Community School and some will come to Person County Schools. Mr. Holloman spoke to the issue with older textbooks not being replaced noting they are moving more toward digital literacy with the laptops noting they can’t afford to buy the textbooks. Mr. Holloman suggested the Board to review House Bill 539 impacting funding for nutrition and transportation for choice schools. Mr. Holloman stated the Board of Education’s fund balance has less than $1M. Commissioner Puryear asked Mr. Holloman if his technology capital request was for $767,476 to which he confirmed noting his initial request was $419,000 but revised to increase by pulling out other technology related expenses from the current expense. Ms. Wehrenberg added that the initial request for technology was confirmed as one-time capital expense but some of the other items added later, were in her opinion, more recurring expenses and therefore not recommended in the Manager’s budget. A motion was made by Commissioner Puryear to increase the Capital Technology Fund for Person County Schools by $200,000 for a one-time non-recurring appropriation from the General Fund. Chairman Newell stated there was $300,000 appropriated in the Capital Improvement Plan (CIP) for parking lot paving that will only cost $90,000 and suggested using those surplus CIP funds toward the motion on the floor versus using the General Fund. Commissioner Puryear agreed to amend his motion to increase the Capital Technology Fund for Person County Schools by $200,000 for a one-time non-recurring appropriation using CIP surplus funds. The amended motion passed unanimously. Chairman Newell called for a brief recess at 12:02pm. The meeting was called back in session as 12:09pm. June 7, 2016 8 Chairman Newell asked if there were any board members wishing to discuss Piedmont Community College (PCC). Vice Chairman Kendrick made a motion to reduce PCC’s budget in the amount of $10,000 for the Small Business Incubator. Vice Chairman Kendrick explained his research found that these funds went toward supplies only. Commissioner Clayton asked the Board to consider Dr. Walter Bartlett, President of PCC to address the motion on the floor. Dr. Bartlett stated the local funds were not used for personnel however the $10,000 was used for expenses that were not eligible to be paid with state funding, such as supplies, heating/air, utilities, telephone, and insurance. Dr. Bartlett said $241,000 in state funding was used to support the Business Development Entrepreneurial Center (BDEC) and approximately $26,000 in funds was needed to cover the expenses that the state would not cover. Dr. Bartlett noted that both the City and the County assisted with the $26,000 funding covering approximately $13,000. The motion on the floor failed 1-4. Vice Chairman Kendrick was the only member of the Board to support the motion. The Board asked the County Manager about the water and sewer construction reserve fund revenue that was potentially owed by the City of Roxboro to the County. Ms. York stated she was waiting to hear back from the City Manager following their budget work. Chairman Newell led the group in the budget discussion related to the Volunteer Fire Departments. Chairman Newell asked the County Manager the status of the running budget total with the adjustments thus far. Ms. York said the budget was to the good in the amount of $10,196. Commissioners Jeffers suggested appropriating an additional $15,000 to Timberlake Volunteer Fire Department, an additional $3,500 to Triple Springs Volunteer Fire Department, and an additional $1,500 to Semora Volunteer Fire Department using the budget surplus funds of $10,196 and $9,804 from undesignated contingency. The undesignated contingency was budgeted at $50,000 and this appropriation would leave $40,196. Ms. York noted taking Timberlake Volunteer Fire Department over $50,000 in their appropriation would change their grant funding match criteria from a 3-to-1 to a 50/50. Chairman Newell and Commissioner Jeffers stated Timberlake Volunteer Fire Department was in great need for the additional funding. June 7, 2016 9 A motion was made by Chairman Newell and carried 5-0 to appropriate an additional $15,000 to Timberlake Volunteer Fire Department, an additional $3,500 to Triple Springs Volunteer Fire Department, and an additional $1,500 to Semora Volunteer Fire Department using the budget surplus funds of $10,196 and $9,804 from undesignated contingency as well as reduce the appropriation from $600,000 to $500,000 for the Vehicle Fund with the surplus to be added to undesignated contingency. A motion was made by Commissioner Jeffers and carried 5-0 to direct staff to bring the Board at its next meeting a Fiscal Year 2016-2017 Budget Ordinance reflecting all changes for a balanced budget. The running list of budget adjustments discussed at the work session are as follows: June 7, 2016 10 ADJOURNMENT: A motion was made by Commissioner Jeffers and carried 5-0 to adjourn the meeting at 12:46pm. _____________________________ ______________________________ Brenda B. Reaves David Newell, Sr. Clerk to the Board Chairman