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BOC Minutes March 24 2014 CIP work session March 24, 2014 1 PERSON COUNTY BOARD OF COMMISSIONERS MARCH 24, 2014 MEMBERS PRESENT OTHERS PRESENT Jimmy B. Clayton Heidi York, County Manager Kyle W. Puryear B. Ray Jeffers Brenda B. Reaves, Clerk to the Board Frances P. Blalock David Newell, Sr. The Board of Commissioners for the County of Person, North Carolina, met in recessed session on Monday, March 24, 2014 at 5:00 pm in the Commissioners’ meeting room in the Person County Office Building for the purpose of a capital projects work session. Chairman Clayton called the meeting to order. County Manager, Heidi York stated the CIP Work Session was held to receive input from the Board related to prioritizing the larger projects for consideration for financing. Vice Chairman Jeffers asked the Finance Director the amount of the County’s undesignated Fund Balance. Finance Director, Amy Wehrenberg stated the County’s Fund Balance as of June 30, 2013 was at $19 million with $10 million unassigned (19.9%) and to retain 18% Fund Balance, the excess funds available to be appropriated is estimated at $932,847. Vice Chairman Jeffers stated he would have to leave the CIP Work Session early and was unable to attend the joint session meeting with the Board of Education. Vice Chairman Jeffers asked the County Manager to find out how much lottery funding is available to drawdown for Person County. Vice Chairman Jeffers requested Board action to excuse him from the remainder of the meeting at 5:20 pm. A motion was made by Commissioner Blalock, and carried 3-1 to excuse Vice Chairman Jeffers from the remainder of the meeting at 5:20 pm. Commissioner Newell cast the lone dissenting vote. CIP work session March 24, 2014 2 Ms. York guided the Board through the CIP Work Session with the following presentation: CIP work session March 24, 2014 3 Ms. York stated the required repairs for the recycling center to meet code are $250,000 which is the minimum for consideration. It was determined the sprinkler system at an estimated cost of $110,000 was not required; however other life safety equipment is included to meet the code by the Inspections Director. CIP work session March 24, 2014 4 Ms. York stated the County has twelve years remaining on the current PI building. General Services Director, Ray Foushee confirmed the County would be allowed to sub-lease that building. CIP work session March 24, 2014 5 Mr. Foushee stated two additional roofs in bad condition that are not included in the Roofing considerations for FY15 are 1) PI main building (patched many times with leaks current) estimated at $453,000 and 2) recycling center roof to which a quote is forthcoming. CIP work session March 24, 2014 6 Ms. Wehrenberg explained the appropriateness of collateral and the lack thereof for the high cost of the Public Safety/Broadband towers noting a 20% cash match may be an option with the cooperative interest free loan for a ten-year term. Ms. Wehrenberg estimated a 20% cash match for a two tower project at $475,000. CIP work session March 24, 2014 7 In reviewing the capital projects presented and keeping in mind the $5 million financing threshold for FY15, it was the consensus of the Board to budget in the FY15 CIP the following: • two of the four towers for the Public Safety/Broadband project at $2.5 million, • the Roofing projects presented at $2 million, and • the Recycling Center property purchase reimbursement ($850,000), and the minimum repair deficiencies ($250,000) for a Recycling Center project of $1.1 million. It was the consensus of the Board to not include the feasibility study at an estimated cost of $26,000 in the FY15 budget for additional sites for the Recreation and/or the Senior Center. CIP work session March 24, 2014 8 RECESS: A motion was made by Commissioner Blalock, and carried 4-0 to recess the meeting at 5:45 pm until 6:00 pm in the County Auditorium for joint session with the Board of Education. _____________________________ ______________________________ Brenda B. Reaves Jimmy B. Clayton Clerk to the Board Chairman Special Joint Meeting with the Board of Education March 24, 2014 1 PERSON COUNTY BOARD OF COMMISSIONERS MARCH 24, 2014 MEMBERS PRESENT OTHERS PRESENT Jimmy B. Clayton Heidi York, County Manager Kyle W. Puryear B. Ray Jeffers - ABSENT Brenda B. Reaves, Clerk to the Board Frances P. Blalock David Newell, Sr. The Board of Commissioners for the County of Person, North Carolina, met in recessed session on Monday, March 24 at 6:00 pm for the purpose of a special joint meeting with the Board of Education in the County Auditorium. In attendance representing Person County was Chairman Clayton and Commissioners Puryear, Blalock and Newell. Vice Chairman Jeffers was absent. County Manager, Heidi York, Finance Director, Amy Wehrenberg and Clerk to the Board, Brenda Reaves were also present. In attendance representing the Board of Education was School Board Chairman, Gordon Powell, Vice-Chair Margaret Bradsher and members Jimmy Wilkins, and Freda Tillman. School Board member Jennifer Kafer was absent until 6:10 pm. Superintendent, Danny Holloman, Executive Assistant and Clerk, Teresa Shotwell, Finance Officer, Kim McVey were also present. Chairman Clayton called the meeting to order and welcomed the group. OVERVIEW OF THE PERSON COUNTY SCHOOLS’ BUDGET REQUEST: Mr. Danny Holloman, Superintendent provided the Board of Commissioners the following overview of the Person County Schools’ budget request noting the budget includes all known expenditures and requested revenues to provide for the expenditures: Special Joint Meeting with the Board of Education March 24, 2014 2 Special Joint Meeting with the Board of Education March 24, 2014 3 Special Joint Meeting with the Board of Education March 24, 2014 4 Special Joint Meeting with the Board of Education March 24, 2014 5 Special Joint Meeting with the Board of Education March 24, 2014 6 Special Joint Meeting with the Board of Education March 24, 2014 7 Mr. Holloman noted the local budget request may have to be amended once the district receives its state and federal planning allotment, further noting both state and federal funding has been decreasing over the past few years. Special Joint Meeting with the Board of Education March 24, 2014 8 Special Joint Meeting with the Board of Education March 24, 2014 9 Special Joint Meeting with the Board of Education March 24, 2014 10 Special Joint Meeting with the Board of Education March 24, 2014 11 Special Joint Meeting with the Board of Education March 24, 2014 12 Special Joint Meeting with the Board of Education March 24, 2014 13 Special Joint Meeting with the Board of Education March 24, 2014 14 Special Joint Meeting with the Board of Education March 24, 2014 15 Special Joint Meeting with the Board of Education March 24, 2014 16 Special Joint Meeting with the Board of Education March 24, 2014 17 Special Joint Meeting with the Board of Education March 24, 2014 18 Special Joint Meeting with the Board of Education March 24, 2014 19 Special Joint Meeting with the Board of Education March 24, 2014 20 Special Joint Meeting with the Board of Education March 24, 2014 21 Special Joint Meeting with the Board of Education March 24, 2014 22 Special Joint Meeting with the Board of Education March 24, 2014 23 Special Joint Meeting with the Board of Education March 24, 2014 24 Special Joint Meeting with the Board of Education March 24, 2014 25 Commissioner Puryear asked about the Aramark contract and the Gas/Fuel budget requests. Person County Schools’ staff noted Aramark far surpasses other providers and the desire is to keep the contract as well as the schools have the ability to purchase gas at any location at the state contract price. Special Joint Meeting with the Board of Education March 24, 2014 26 Special Joint Meeting with the Board of Education March 24, 2014 27 Special Joint Meeting with the Board of Education March 24, 2014 28 Special Joint Meeting with the Board of Education March 24, 2014 29 Special Joint Meeting with the Board of Education March 24, 2014 30 Person County Schools Finance Director, Kim McVey stated the certified supplement budget request included district matching benefits for retirees. Mr. Holloman explained the eligible employee of the district coaching supplement process noting there are no stipends budgeted for volunteer coaching positions. Mr. Holloman stated there are over 2,000 volunteers at the school system in which background checks are completed on each invidivual. Special Joint Meeting with the Board of Education March 24, 2014 31 Special Joint Meeting with the Board of Education March 24, 2014 32 Mr. Holloman highlighted the budget request supplement increase which equates to a two percent (2%) increase for teachers, principals as well as classified employees. The current supplement for Person County Schools is eight percent (8%) which has not been increased since 2006; Mr. Holloman stated Person County Schools lose teachers to other districts with higher supplements. Special Joint Meeting with the Board of Education March 24, 2014 33 Special Joint Meeting with the Board of Education March 24, 2014 34 Special Joint Meeting with the Board of Education March 24, 2014 35 Special Joint Meeting with the Board of Education March 24, 2014 36 Mr. Holloman stated the FY14-15 budget request impacts both the traditional public schools and charter schools, as the charter schools will receive approximately $1.7 million of the local funding given to Person County Schools. Mr. Holloman noted there are approximately 5,700 total Person County students. Mr. Holloman spoke briefly about pending litigation for a voucher system that would appropriate $4,200 per student. Special Joint Meeting with the Board of Education March 24, 2014 37 Special Joint Meeting with the Board of Education March 24, 2014 38 Mr. Holloman stated the budget request presented reflects advocacy for what is needed; it does not reflect the wants but the needs. Mr. Holloman stated the budget request of $9,955,831 includes an 8% increase over the current local appropriation by the County. Board of Education Chairman, Gordon Powell noted inflation which has grown at a rate of 8.4% since 2010 which adds up to $747,000. Board of Education Vice Chair, Margaret Bradsher spoke to the many resources needed to teach a child to read. Ms. Bradsher noted state legislation mandating third- graders to be proficient in reading before being promoted to fourth-grade giving an example of one school in the county where there are only 7 students out of 47 third- graders currently proficient in reading. Ms. Bradsher advocated to the Board of Commissioners that quality education creates a trained workforce which in turn promotes economic development. Commissioner Blalock inquired about innovative programs used to ensure students are successful. Mr. Holloman stated once a successful resource is proven in some schools, it will be implemented in all schools. Commissioner Newell asked about the Schools’ Fund Balance. Ms. McVey stated at fiscal year-end, June 30, 2013, the School Fund Balance was at $781,592 which represents approximately one-month of spending. Special Joint Meeting with the Board of Education March 24, 2014 39 OVERVIEW OF CAPITAL PROJECTS FUNDING: County Manager, Heidi York and Finance Director, Amy Wehrenberg gave the group an overview of the Person County Capital Improvement Plan reflecting the schools’ requests and the recommendations from the roofing and window studies. Ms. York stated total funding to Person County Schools this current budget year is at $14 million when capital expenditures are included. Ms. York noted the county is mandated to provide for the public school systems’ capital needs. Ms. Wehrenberg noted a correction: Window Roofing Projects should read Window Replacement Projects. Special Joint Meeting with the Board of Education March 24, 2014 40 Ms. Wehrenberg stated the capital projects list as presented differs from the school’s presented capital projects noting the need to collaborate on the school’s capital project priorities to set the funding schedule in the appropriate fiscal years. Ms. Wehrenberg summarized the total requested capital projects for the public school system (not including the county or the community college projects) for the next five fiscal years totals $5.2 million which include projects just over $1 million, $2 million in roofing and $2.2 million in window replacements. Ms. Wehrenberg noted the projects in Fiscal Year 2014-2015 would require a County contribution of $1.2 million. Ms. Wehrenberg asked Person County Schools’ staff what is the lottery funding balance. Ms. McVey stated the unallocated balance as of February 25, 2014 is $791,000. Ms. McVey stated she was not sure if the unallocated balance reflected the first two quarters of the current fiscal year which is at $182,000. RECESS: A motion was made by Commissioner Newell, and carried 4-0 to recess the meeting at 7:29 pm until April 7, 2014 at 5:30 p.m. for a special joint meeting with Piedmont Community College Board of Trustees. _____________________________ ______________________________ Brenda B. Reaves Jimmy B. Clayton Clerk to the Board Chairman