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HomeMy WebLinkAboutJune 7, 2018 Joint with Bds. of Education 1 June 7, 2018 IREDELL COUNTY BOARD OF COMMISSIONERS SPECIAL MEETING MINUTES – Joint Session with Boards of Education June 7, 2018 The Iredell County Board of Commissioners met on Thursday, June 7, 2018 at 5:00 PM at the Unity Center, 1145 Salisbury Road, Statesville, NC. Board of Commissioner Members Present – Chairman James B. Mallory III, Vice Chairman Tommy Bowles, Commissioners Gene Houpe, Jeff McNeely, Marvin Norman. Iredell-Statesville Board of Education – Chairman Martin Page, Chuck Gallyon, Sam Kennington, Bill Howell, Max James, and Charles Kelly. Also present Superintendent Brady Johnson and Attorney Costi Kutteh. Mooresville Graded School District – Chairman Roger Hyatt, Greg Whitfield, Dr. Debbie Marsh, Leon Pridgen, and Kerry Pennell. Staff present: Superintendent Dr. Stephen Mauney, Attorney Kevin Donaldson, Finance Officer Terry Haas, Assist. Superintendent Dr. Todd Black, Chief Operations Officer Dr. Michael Royal, and Chief Communications Officer Tanae McLean. Mitchell Community College – Brian Hogan was the representative for MCC Board of Directors. County Staff present: Interim County Manager Beth Jones, Assistant County Manager Susan Robertson, Finance Director Deb Alford, County Attorney Lisa Valdez, and Clerk to the Board Retha Gaither. CALL TO ORDER: Chairman James Mallory called the meeting to order and explained that this joint meeting is a continuation of a discussion with partial boards on May 30, concerning the potential referendum for a ¼ cent sales tax. Each of the other boards were called to order accordingly by their own Chairman. Chairman Mallory said the Board of Commissioners has received a request to place a referendum on the November ballot for a ¼ cent sales tax for the purpose of security, safety, student wellbeing, and unfunded mandates. The Board of Commissioners met on May 29, 2018 to discuss and set perimeters if the ¼ cent sales tax was approved by the voters then the County would allocate ‘up to’ 75% of the sales tax revenues for those purposes mentioned. The other 25% would be allocated to the County. ISS Board of Education Chairman Martin Page said the situation of concern by ISS is the fact that the control of the money would be directed by the County Commissioners. It was agreed the other 25% will go to the County as long as the schools were guaranteed the 75%. Page said it was clear the Board of Commissioners promised nothing. ISS is next to the lowest budget in the State. A member of the Board of Commissioners has also made it clear there is distrust of the Board of Education with accusations of money mismanagement. Also, the Board of Commissioners are intent on the security money to go to the Sheriff’s Department. The Sheriff estimated that cost to be $3.2 million. ISS has done a tremendous amount toward safety. All members of the Board and the County Manager have been invited to review the budgets of ISS. Page directly asked Interim County Manager Beth Jones, “Do you have any inkling at all that we’re misappropriating money?” 2 June 7, 2018 Jones said, “I think you have spelled out where you’re spending the funds in what we went over yesterday.” Page feels the school has proven they are very accountable. The teacher walkout has turned into a political stunt from both sides. The kids are the most important thing. MGSD Board of Education Chairman Hyatt said everything they do is in support of students, teachers, and staff. Their request is to find an additional revenue stream. The sales tax will supply additional money on top of the already budgeted money. Each revenue will be identified and maintained separately. Vice Chairman Bowles said the Board of Commissioners had not discussed a ¼ cent sales tax until three weeks ago and in the beginning it was not dedicated to any one item. Although, it was assumed the largest portion would go to the schools. There has been a misunderstanding for some that believed it would be 100% for education. There seems to be some mistrust between the school board and the County board but that needs to be fixed. Commissioner Norman said the number one purpose for attending this meeting is the kids. There needs to be a safe school environment for the kids, teachers, staff, and parents. However, likewise, this Board has a responsibility to the taxpayers. Commissioner McNeely explained the budget and taking $1.5 million from fund balance which could be recouped with 25% of the ¼ cent tax. He also explained the importance of not going below 18%. During the most recent meeting, this Board approved to give money ($115,000) to pay for the gate guards from the General Fund and not out of school money. The ‘up to’ language was added because there are a lot of needs including the schools. Page asked about guaranteeing $1.5 million to the county. McNeely feels it is a horrible deal for the schools. The deal that was presented is a better deal. The split of 75/25 is a better deal of a number that is unknown. Page agrees if the 75/25 was guaranteed. McNeely said there is no reason why the school would not get 75. Bill Howell paraphrased G.S. 115C-36 which states the Board of Education will have control of all matters pertaining to public schools and G.S. 115C- 47 (61) which refers to the board partnering with law enforcement for protection of school environments. Commissioner Houpe clarified that this board had not talked about the ¼ cent sales tax in an open meeting, but the task force had discussed it. During subsequent sub meetings the school systems where asked to not fund things like teacher supplements unless there is a standard to maintain it. The common denominator is that neither board can do anymore without a new revenue stream. Houpe explained the importance of schools for economic development. Also, the importance of explaining how investing in schools benefit every tax payer. If this goes on the ballot, taxpayers will be asked, ‘Do you think there is adequate funding for schools? Do you think there is adequate safety and security in schools?’ Houpe doesn’t believe five people should tell 180,000 people what they should or shouldn’t do. The needs are relevant and a new revenue stream is necessary. The taxpayers have to decide. But the schools need a constant number in order to set a budget. This Board always has the statutory authority to change it. The political posturing needs 3 June 7, 2018 to stop. Tell the voters what this money will be used for, give the schools a consistent number pending the economy, and let the voters decide. Superintendent Dr. Mauney asked if the Commissioners supported the removal of ‘up to 75%’ so the school systems are guaranteed a 75% share of the sales tax. Chairman Mallory stated he had been persuaded that the ‘up to’ language was not necessary. Mallory committed to entertaining or making a motion at the next board meeting, prior to the vote to approve the referendum, that the ‘up to’ language be removed. The Board will vote and then it will be moved to determine whether or not the referendum is to be placed on the ballot. Mallory explained the budget with ad valorem taxes. The 25% is just as important to the County as the 75% is to the schools. School boards make the decision on how to run their operation and it is the County’s job is to fund the schools. Safety is an issue and there are additional things that need to be done now, whether or not this revenue stream is there. However, if this revenue stream is not approved by the voters then whatever is needed for that safety will be at the expense of something else. These boards need to continue to work together with mutual respect and trust and understanding of the roles and responsibilities. ISS Charles Kelly said the Board of Commissioners and the Boards of Education have the same goals. The controversy is the percentages. It is hard to know what the total amount will be but whatever the amount is, it will be used. It is assumed this will go on the ballot and that the ‘up to’ will be removed. ISS Max James asked to change the language. MGSD Board member (not sure who specifically) asked each commissioner if the ‘up to’ can be removed. Vice Chairman Bowles said the school is receiving 54% of the budget and this Board has agreed to give up to 75% of this new revenue stream. It is just hard to know what that revenue will be or what the needs of the County will be next year. At this moment, the language of ‘up to’ needs to stay in. ISS Board member (not sure who specifically) said the total amount will change from year to year therefore the percentage will be the only thing to work with. There will be different targets and different ways to spend it. Commissioner Norman would like to leave ‘up to’ in the resolution. Commissioner Houpe said to take the ‘up to’ out and would agree to leave the split at 75/25 or to give the County $1.5 million off the top of any revenue or 25% which is ever is greater and suggested this should be considered by the Board of Commissioners. Commissioner McNeely asked what everyone’s idea of a consistent revenue stream because this is an unknown number of a percentage. If the 75% is guaranteed and there is a devastating event, then this Board will be seen as going back on their word. There is no way to predict the future. Which is worse – to plan on something and it didn’t happen or wasn’t sure but received more than what was planned. The disappointment level is different. This Board intends to give the school system 75% but the clause is about ‘what if.’ 4 June 7, 2018 MGSD Dr. Debbie Marsh said that politics is the reason the Commissioners do not want to be in a position to have to explain why the schools would not receive 75% but want the Boards of Education to go to the voters to support it when the schools are not guaranteed anything. Marsh said the statutory reality is that the Board of Commissioners can do whatever they want with the money. If the true intent is for the money to be for the schools, then it should be in the language. Page asked each commissioner if they are willing to give this to the schools with trust that it will be spent correctly or will it be a line item where the school will have to specify each line item for approval. Vice Chairman Bowles said there was no intention to try to ‘sell this to the voters as an educational tax.’ The voters will be told that this additional funding stream is for the needs of the County of which the school systems are 54%. Dedicating 54% of a $205 million budget shows intent. This Board would prefer to under-promise and over-deliver rather than say, ‘yes, we told you that, but now it can’t be done.’ Marsh said the promise should be in a resolution. Commissioner McNeely said he will not lie to anyone. Marsh believes everyone understands it can’t be guaranteed, but the resolution needs to reflect the goal. The words ‘up to’ means zero. Chairman Mallory said the vast majority of the funds will go to SROs, SAPs, some to capital, some to training, and nurses. Realistically, it is difficult to hire if the position does not have secure funding. It is a fair bet that sales tax will continue to rise but if it doesn’t happen then all parties will share. But while explaining to voters it is important to stress that in the event of a depression then all bets are off. It is the intention of this Board to work with everyone to receive the desired effect. Page asked if the money will be given to the schools or will it be kept and micromanaged by the County. Page asked for an answer from each commissioner. Chairman Mallory said the schools submit the budget, the Commissioners review the budget, and the schools execute the budget. Commissioner McNeely wants to see what it is spent on. Vice Chairman Bowles said the trust factor between the two boards must be re-established. But until that trust factor is re-established the spending should be reviewed. Page asked why the trust factor was lost. Vice Chairman Bowles asked if the ISS Board of Education had ever received dollars for one purpose but then spent those dollars on something else. Page answered no, at least not to his knowledge, but asked for specifics. There has been a clean audit every year. Vice Chairman Bowles did not give a specific event but would like to review the schools’ plans. 5 June 7, 2018 Commissioner Norman said this Board is committed to ‘up to 75%’ but he can only give his word and cannot guarantee anything. Commissioner Houpe said the common factor is a consistent figure. If this revenue stream does not move forward, then no one gets anything. It is the job of this Board to tell voters how the schools will spend the money, create a consistent funding formula, and send it to the voters to ask them to decide. Houpe reported that the Education Task Force has reviewed the books and the schools have not used funds for anything other than what they said. He agrees that the ‘up to’ language should come out and that the Boards of Education understand that if the economy changes then those funds could change. This Board must continue to tell Washington and Raleigh to pay for what they mandate. Page specifically asked Commissioner Norman to look at the ISS Board of Education and express his distrust because he did not reply when asked earlier which was disrespectful. Commissioner Norman said Chairman Page has to earn his trust. Chairman Mallory said there are two weeks until the next scheduled Commissioners’ meeting where this subject will be considered. Superintendent Brady Johnson said the boards sitting around these tables represent 30,000 children, their parents, and their grandparents. Johnson asked everyone to make a commitment to give this subject thorough consideration because the children will pay for the arrogance, boastfulness, and animosity. MOTION by Commissioner Houpe to adjourn at 6:20 PM. VOTING: Ayes – 5; Nays – 0 __________________________________ ___________________________________ Date Approved Retha C. Gaither, Clerk