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Mr. Deal said this board has gone on record in supporting talks of consolidation. He said one
of the main items of discussion with the school officials in the consolidation talks has been the
level of funding. He said the Statesville City Schools said that was one of their major concerns
about consolidation. He said there was no doubt in his mind that it is going to require a substan-
tial increase in the funding level that we now provide in current expense. One of the reservations
about consolidation is whether or not the commissioners are willing to provide that additional
money. He said in his opinion this is the way for the board to make a statement, and it is a policy
statement more than a money statement, that you are willing to seriously look at the funding level
that you now provide in current expense.
This $800,000 is not all that will be needed, Mr. Deal said, but it is a way to stress consoli-
dation without turning the money over to the schools. It would be held in a special reserve. It
would be a separate fund. It would be your discretion when and if you would release it. The way it
is proposed you would not release any of this money until such time as consolidation is in place and
you would need it.
Commissioner Crosswhite inquired if in a taxing district under this program, would Mooresville
area also be taxed. If these funds were set aside this year, what about the following year? Mr.
Deal said that it would be completely the board's option.
Commissioner Crosswhite inquired about a vote of the people for consolidation.
Commissioner Stewart said the board is increasing taxpayers' taxes this year and that 21 or 3
cents of that money is going to be put in this special appropriation fund until we see whether they
are going to consolidate. She said she had trouble raising taxes for this fund. Commissioner
Crosswhite inquired if there was not money in the fund balancefor this.
Commissioner Ostwalt inquired how that $800,000 is going to realistically accomplish consolida-
tion. He said it would not do it.
Chairman Hedrick said it is going to take "backbone" to do this. He said the survey by the
Statesville Chamber of Commerce shows that 90% think that consolidation is in the best interest.
This amount represents $2.40 per year on the $100 valuation. There are 16,000 children in the
county that are going to be "held hostage" if it is not done. He said if the schools do not
consolidate, the county is going to be looking at more expensive capital outlay.
Commissioner Crosswhite said she was not arguing consolidation, she was arguing the tool that
is going to be used.
Mr. Furches said the fire tax should be looked at as a user fee.
Commissioner Stewart said she would be in favor of it if taxes could be reduced next year if
consolidation doesn't occur.
Commissioner Ostwalt said taxes should be reduced by that much if consolidation doesn't occur.
He said he had never seen it go back.
Commissioner Murdock said hypothetically if the school consolidation came about, and the money
was taken from fund balance as suggested by Commissioners Stewart and Crosswhite, would that leave
the fund balance in a dangerous area.
Mr. Furches said there was $4.7 million in fund balance, $1.9 of the fund balance will be
appropriated in the 87-88 budget, which leaves $2.8 million. With some other adjustments he men-
tioned this would leave the fund balance at $2.35 million. The Local Government Commission recom-
mends a minimum of 8% fund balance. He drew a graph on the board showing the county's cash flow.
Taking the $800,000 from the fund balance would leave $1.55, he said, and this would be a 5.3% fund
balance, lower than the recommended amount. ,,...'
Commissioner Crosswhite inquired if every year there was not a fund balance remaining in the
budget, because the revenues were greater than the expenditures. Mr. Furches said the board is very
close to spending 100% of the budget.
Chairman Hedrick said the questions were:
(1) Is the board in agreement that there need to be a school
consolidation fund?
(2) How much?
(3) Where from?
(4) Should the board consider a referendum?
Commissioner Stewart said she would like to see the board have a vote. Commissioner Murdock
said it should be made a binding referendum. Chairman Hedrick mentioned a 1988 referendum. Mr.
Deal said a lot of work is going to have to be done. Commissioner Crosswhite said it should be held
at the school board election . Commissioner Stewart said the school board election would be a good
place to put it.
Commissioner Ostwalt said the board should decide what they are going to do on the $800,000.
Commissioner Stewart said she thought it should be tied to a referendum. Chairman Hedrick said he
thought the board is going to make a mistake if they don't appropriate some amount of money.