HomeMy WebLinkAboutMay 29, 2018 Special Meeting minutes
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May 29, 2018
IREDELL COUNTY BOARD OF COMMISSIONERS
SPECIAL MEETING
May 29, 2018
The Iredell County Board of Commissioners met in special session on Tuesday, May 29,
2018 at 4:00 PM, in the Iredell County Government Center (Commissioners Meeting Room), 200
South Center Street, Statesville, NC.
Board Members Present
Chairman James B. Mallory III
Vice Chairman Tommy Bowles
Gene Houpe
Jeff McNeely
Marvin Norman
Staff present: Interim County Manager Beth Jones, County Attorney Lisa Valdez,
Assistant County Manager Susan Robertson, Finance Director Deb Alford, Deputy Clerk Amy
Anderson, and Clerk to the Board Retha Gaither.
CALL TO ORDER: Chairman James Mallory called the meeting to order.
INVOCATION led by Chairman Mallory.
PLEDGE OF ALLEGIENCE led by Chairman Mallory.
Chairman Mallory explained this meeting was called as a request from Administration to
discuss a ¼ cent sales tax and an update on the County Manager search. Other sub stantive issues
cannot be addressed since this is a special called meeting.
ADJUSTMENTS TO THE AGENDA: MOTION by Commissioner Houpe to adjust the
agenda for a non-actionable ceremonial presentation.
VOTING: Ayes – 5; Nays – 0
PRESENTATION: Commissioner Houpe asked all veterans in the audience to rise.
Houpe asked General Mallory, Commissioner Norman, Ron Wyatt, Brad Stroud, and Ken
Robertson to join him at the dais. Houpe explained that he, Vice Chairman Bowles, and
Commissioner McNeely sponsored some flags at the Memorial Field of Flags in Mooresville on
Memorial Day on behalf of Major General James Mallory, Lieutenant Colonel Kenneth Robertson,
Jr., Drill Sargent Marvin Norman, and Lance Corporal Ron Wyatt. (Those flags were presented to
each person.) These gentlemen were thanked for their service to the country.
Houpe asked Brad Stroud to come forward. Stroud served in the army and now serves at
the County Veteran’s Service Officer. All veterans standing were thanked for their service. The
flag given to Stroud was in honor of and memory of all veterans who served from Iredell County
in the nation’s armed services. Stroud was asked to display the flag in the Veterans Service Office.
SUBJECT: Chairman Mallory said Iredell-Statesville School’s Board of Education passed
a resolution requesting this Board consider a referendum to be put on the ballot in November to
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consider a ¼ cent sales tax for the purposes of safety, security, and student wellbeing as well as
unfunded mandates. The purpose of this meeting is to craft a response with perimeters and
framework for what this Board would consider, if passed. However, this Board will not vote during
this particular meeting on whether or not to place this on a referendum. Once information is
gathered this Board will create perimeters/conditions in a form of a resolution. At that time the
three school systems will then meet and accept/approve those perimeters. A public hearing will be
scheduled to hear from the citizens whether or not to place this on the ballot. There will be no
public comment at this meeting. If this is placed on the ballot it is not the County Commissions’
decision about whether to institute the tax or not, it is the citizens of Iredell County that will make
that decision.
Commissioner Houpe said the job of the Education Task Force, working with the schools,
is to disseminate the facts. The school systems are challenged annually. ISS does not create their
own revenue stream. Mooresville Graded can do that based on what tax payers allow with a
specific tax. Mitchell Community College has a limited ability to raise funds through other
measures. Education is one of the largest economic drivers for Iredell County. A revenue stream
is needed for this Board to do more than what is currently being done for schools and other
functions. The safest and fairest measure would be a sales tax revenue. Sales tax is based on
purchases. Putting the burden on property owners cannot continue. If this Board decides to pl ace
this on the ballot for a referendum, the priorities and the uses of that money will be attached to a
resolution and set by the three school systems. Charter schools will get a piece of this pie but
Houpe feels legislation is needed for oversight of the charter schools. Charter schools can spend
money anyway that want. Traditional public school funding is mandated where it can be spent
with very little discretionary spending. Houpe assured there is adequate and annual audits that
explains spending.
Commissioner Norman stated he wasn’t sure why some people were attending this
meeting. His job on this Board is for the kids and is not advocating for a sales tax for anything
other than for the kids of Iredell County schools. That means resource officers, se curity,
counselors, and assistant principals. This is not about higher salaries. The number one priority is
resource officers to make sure students, teachers, and principals in elementary schools will have
someone to turn to for positive support.
Vice Chairman Bowles said there are funding streams from ad valorem tax, sales tax, and
fees levied throughout county departments. The job of this Board is to try to interpret the forecast
of what’s going to happen and try to position this county to not meet a shortfall. Several things are
on the horizon. One is school safety which is something we have to deal with. Another is K-3,
although currently there is a reprieve, but the cost of this class size mandate is unknown. Another
is the opioid crisis which is costing the County a small fortune. One more aspect is the aging
population which is forecast to grow by 35+% in the next five to ten years. That population will
load the system with needs but will also enjoy an elderly exemption from taxes. Bowles feels an
ad valorem tax increase may be necessary if an alternate revenue stream is not found. A sales tax
increase is more fair and equitable than an ad valorem tax.
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Commissioner McNeely said this subject has been unsettling. This is a tax increase and it
is not easy to consider. It seems that tax burdens are always put on the backs of property owners.
However, something has to been done.
Chairman Mallory said this Board has a legal requirement to provide school buildings. The
State provides for teacher salaries and other expenses. Years ago when schools were being built
the concern was safety in the case of a fire but today everyone must be concerned with new security
threats that could be external or internal. The Sheriff’s Department has a very active drive-by/stop-
in program with schools. Also, a new position has been added that will integrate intelligence and
sharing of information whenever there is an event in order to alert the right people. Today, the
question is how, in general, can funds be allocated and put before the people in this county the
option to be able to generate that additional revenue stream.
Iredell Statesville Schools Superintendent Brady Johnson said communication between the
school systems and the Board of Commissioners has improved tremendously in the last several
years. The County Manager meets with the superintendents on a regular basis which Johnson was
appreciative. Johnson explained that the school system has the greatest flexibility with the County
budget. Federal and state budgets are mandated. The County provides the current expense budget
with no strings attached. The County provides a reoccurring capital budget which pays for the
maintenance and repairs on the buildings. The County also does debt service on the buildings that
have been paid by the bonds. The reoccurring expense budget, that is requested each year, Iredell
County is rated 71st in the state for that one budget. The problem is with the partners in the Federal
and State governments. There are many mandates that are passed to the schools and there are no
options other than to ask the County for more. However, with the Commissioners’ help there has
been a reprieve with the K-3 class size. The Commissioners assisted with the A-F Report Card and
with the school calendar by sending resolutions to state legislators. In review of the budget that
has been submitted, the mandates from the State total $1.2 million which is an increase in the local
expense budget of 3.4% just for the mandates, but the County will help at a rate of 2%. This leaves
a gap and forces the system to make cuts in staff and/or services. Over the last ten years over 100
teachers and over 100 teacher assistants have been laid off. The media coordinators haven been
laid off. At one point in time, every middle and high school had a fully licensed mental health
worker which has now been cut by 50%. This year the second area of budget requests was for
discretionary and local expense increases which are maintenance workers and mechanics in the
transportation department. The third area has to do with student safety, security, and well-being.
There is no money to add these services. The system would love to bring back the SAP positions.
In the past two school years there have been three suicides. There is a need for mental health
counselors. There is also a need for SROs. There is an increase in homeless children, foster care
children, and children who need access to social workers but the number of social workers has
been cut from five to three. Therefore, this sales tax would be beneficial.
Commissioner McNeely said Iredell County is the 29th best instead of the 71st.
Johnson said this data is from Raleigh and the reoccurring budget for local current expense
is rated 71st. But if all budgets are rated together, Iredell is much better than many in the State.
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Commissioner McNeely said the North Carolina Association of County Commissioners
indicates there are only 28 counties that do the current funding better than Iredell. From 2010/2011
the total budget for schools was $66.7 million. Today’s budget for schools is $95.6 million.
Johnson reiterated that Iredell County does a great job with funding the schools. But as an
example, currently in Raleigh, the General Assembly is considering a raise to state employees. The
school system has projected that raise may be 3%. However, when the State gives a raise to state
employees then the school system is obligated to match it for school employees. That means the
school system will need an additional $758,000 just to match that raise. Another thing that hasn’t
been mentioned is the teacher shortage. Jobs are posted but no one applies. This generation of
young people is not going into the profession of teaching.
Mooresville Graded School District Superintendent Steve Mauney said MGSD identifies
with many of the things mentioned by Brady Johnson. MGSD works diligently to be excellent
stewards of the tax payers’ money. Despite the tight budget the children are educated to the fullest
as demonstrated by the achievement data. With one of the lower per pupil expenditures in the
State, this additional revenue by the County would be extremely helpful if it is sent to the voters
and passed. There are several areas from school safety to covering unfunded state mandates where
help is needed. However, if this were to pass, a list of where this money would be spent cannot be
created without s discussion with the Board of Education. The State budget changes from year to
year and these funds could also change year to year depending on the State budget, therefore,
flexibility is important.
James Hogan, representative for Dr. Tim Brewer and Mitchell Community College, said
MCC is still using buildings that date back to the Civil War. The main building has been upgraded
many times and has served many functions, albeit still an old building. The campus is open, located
in the downtown area but rely and trust the goodness of the community to maintain safety. There
is a good relationship with the City of Statesville and Sheriff Campbell is on the Board of Trustees.
MCC is in the midst of evaluating security plans with an Executive Incident Management Team.
The Board of Trustees unanimously approved a resolution asking the Board of Commissioners to
support putting this sales tax increase on the ballot. However, details cannot be shared at this time
as to where the funds will be used if approved. The Incident Management team will research and
move forward with recommendations should these funds become available.
Vice Chairman Bowles asked about the lottery and how it is given to the schools.
Chief Finance Officer for MGSD Terry Haas said lottery funds have not increased for new
items, they are supplanting other state funds and there have been no increases since the beginning
of the lottery.
Vice Chairman Bowles said that means the lottery is supplanting and not supplementing.
Commissioner Houpe said that in years past some of that revenue has been used for means
other than what is was intended.
Sheriff Darren Campbell said school safety is a discussion that could take hours. But the
Sheriff’s Department has made a strong stance in school safety for teachers, parents, and students.
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In the last three years, the department has made over 28,000 visits to just the elementary schools.
There is a teen academy, an athletic league, mobile classrooms, and a threat assessment person.
All of these programs are paid by seized funds. Ever since Columbine, the department has been
diligent about training and educating officers in order to keep students and staff safe. However,
work must continue to harden the schools. SROs make one of the largest impacts.
Commissioner Houpe said a common factor for all the programs with the Sheriff’s
Department is that it costs money. Houpe expressed appreciation to nurses and SROs that are
currently in schools. This issue is a choice for the voters of this County and it is the job of this
Board to give citizens that choice. It is going to take additional revenue streams to do more than
what is currently being done. If the tax payers pass this what are the intentions of the Sheriff’s
Department?
Campbell said presence is the first deterrent. SROs serve numerous positions. Teachers
cannot be expected to pick-up a gun to protect students, that is the job of this department. Funds
will be used for cameras, locks, and armed law enforcements officers.
Chairman Mallory asked about the devices that were placed at Central Elementary.
Campbell said it’s hard to stop someone that wants to do damage. However, from a tactual
standpoint it will slow the threat. If there is a secured door at the first try, or second or third try, it
delays the threat and allows time for law enforcement intervention. The locks at Central were low
in cost, approximately $200 per door. Central PTO worked to raise that money in less than two
weeks.
Commissioner McNeely asked about the initial and maintenance costs of SROs in schools.
Campbell stated that adding 15 SROs for elementary schools would cost $2.3 million for
the first year which will include cars, video equipment, liability insurance, etc. The second year
maintenance would be approximately $1.3 million. If middle schools are added the first cost of
$2.7 million and the second year maintenance will be $1.7 million.
Vice Chairman Bowles asked if school security was turned over entirely to the Sheriff’s
Department, is the department confident in working with other jurisdictions to provide that security
in the school system. Could the Sheriff’s Department orchestrate a seamless school safety program
throughout the County?
Campbell said nothing is seamless but is confident in the current personnel and in the
personnel that would be recruited to fill those positions. Obviously, similar to the school system it
is hard to find qualified people. However, this department is confident in accomplishing anything
that is asked of them.
Commissioner Norman asked how many SROs are needed.
Campbell said 25 for elementary which excludes high schools and middle schools.
Chairman Mallory believes the preference would be to have an SRO in every school. There
are also SAPs who have knowledge of social services, mental health, etc. and are proactive in
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identifying children at risk. There needs to be a balance of the different components because all of
it can’t be done even with the entire revenue stream. The threat assessment is the beginning and it
is different for each school. Maybe there should be an SRO-plus that has the skillsets to make
referrals to mental health professionals. Mental Health and Social Service agencies cannot be
replicated in the schools, but those agencies are available in the County. The students and families
need to be identified and referred. That issue will need to be discussed with law enforcement,
schools, and those agencies.
Commissioner Houpe stated he has a resolution prepared that addresses concerns by
Commissioner Bowles and others. It creates a revenue stream for the schools, if the voters invest
in those priorities. It creates a revenue stream for the County’s discretion in operations. It may be
a compromise but if all sides work together and the voters decided they are willing to invest
additional revenue to pay for these various needs. One important factor is the priorities and
mandated obligations that change year to year. If this passes the revenue will be used for these
intended purposes and there will be an annual audit to verify where the money was spent but need
to consider some flexibility with the Board of Commissioners and the Board of Education. The
Sheriff and the schools are working well together but there are different needs for different schools.
A revenue stream must be created if the voters invest in that. Without a revenue stream nothing
else can be done without cutting or eliminating existing programs.
Commissioner McNeely stated there must be a ten-day notice. The next meeting will not
work.
Chairman Mallory said there is a ten-day notice for a public hearing. However, if the Board
is just inviting comments it is not a public hearing nor requires a ten-day notice.
County Attorney Lisa Valdez said the Board could invite comment other than scheduling
a formal public hearing. However, the agenda will need to be amended to allow a second public
comment period. There are notice requirements that can’t be met but a public hearing is not
required for this matter per the statutes. Public notice, once the election is held and the vote is
made and the Board considers the resolution for levying the tax, there is a ten-day public notice
required at that point.
Commissioner McNeely asked to clarify if changing the public comment period required
notice.
Valdez said it could be added to the agenda for June 5 for the purpose of this subject matter.
Vice Chairman Bowles feels the public will want to have their due process and have a
chance to speak.
Commissioner Houpe said his motion is for a resolution. Houpe and Chairman will attend
a meeting on Wednesday night with the Boards of Education. The resolution will show what this
Board is willing to put forward if they agree with this resolution and it passes now. The resolution
states the perimeters set by this Board for consideration on a ballot in November. The vote on a
potential referendum would be after a public comment period on June 5 or beyond. This is a
resolution, not a referendum request.
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Chairman Mallory asked if any member of the Board feels there should be a former public
hearing. It would be appropriate but would push it to the second meeting in June.
Commissioner McNeely feels a public hearing on June 19 is more appropriate.
Commissioner Houpe said the three school systems have a joint meeting scheduled for
Wednesday at 6:00 PM at Barium Springs to discuss the potential of moving forward with their
resolutions of intended purposes of how they would use the allocated funds if it passed in
November, if this Board puts a referendum on a ballot.
MOTION by Commissioner Houpe to consider a resolution at the June 19, 2018, Board of
Commissioners’ meeting that would consider requesting that the three school systems move
forward with a referendum for the November 2018 local ballot pursuant to Article 46, Chapter 105
of the General Statutes for a special ¼ cent sales tax, provided it is the intent of the Board to
allocate up to 75% of total proceeds generated by the ¼ cent sales tax referendum to be allocated
to the schools for their tax resolution stating their intended uses of revenue. All safety and security
cost will be paid by Iredell County and reimbursed from the schools’ 75% allocations of the ¼
cent sales tax proceeds. Further, the remaining 25% of total proceeds generated shall be allocated
for Iredell County operations. Appropriations of the 75% ¼ sales tax, if approved, shall be
allocated to the parties using the County’s current expense average daily membership (ADM
formula). Expenditures made directly or indirectly by the County for school safety and security
shall be included in the 75% allocation from the ¼ cent Article 46 proceeds.
Valdez asked for clarification. It is this Board’s responsibility to ask the Board of Elections
for that advisory referendum. The school s ystems cannot make that request, it has to come from
the Board of Commissioners to the Board of Elections to put it on the ballot.
Commissioner Houpe amended his MOTION to say that at the Commissioners’ meeting
they would request the Iredell County Board of Elections to conduct an advisory referendum on
the November 18 ballot.
Vice Chairman Bowles asked for clarification in the motion concerning “allocated up to
75% of the total proceeds generated by the ¼ cent sales tax referendum to be allocated to the
schools for their attached resolution.” This is not promising the schools that they will get the whole
75% of the total taxes that are being collected. It is a little ambiguous. It is an “up to 75%” and
that is completely this Board’s discretion how much money, on an annual basis. Bowles asked if
that is a correct understanding.
Commissioner Houpe said that was the way it was discussed in individual conversations.
That is the way it was accepted. It will be up to 75% total proceeds, because there will have to be
an annual discussion on changing priorities. Houpe doesn’t believe it would be a problem that the
County uses 75% for education but safety and security proceeds will be kept out and paid for
directly.
Vice Chairman Bowles wanted the audience to understand up to 75% “can” be paid to the
school systems or for the school systems. It does not mean the school systems will get ¾ of that
tax.
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Chairman Mallory said the point is that every budget will have to be built from the bottom
up with the needs identified and the dollar amount to accomplish those needs. If the needs are met
with 70% of those funds, then that is the amount applied. If it is excess of the 75% then decisions
will be made as to what will not be funded.
Vice Chairman Bowles asked why the 75% is mentioned if those decisions are made on an
annual basis by this Board.
Commissioner Houpe said his original intent was to allocate 75% to the schools but during
discussions other members of the board felt it should be “up to.”
Commissioner McNeely said this is sales tax which will vary from year to year. There is
no way to know the amount of money from this allocation. This will have to be considered every
year and feels the money should be “in-hand” before allocating. Citizens need to buy in Iredell
County to help this sales tax. To set a certain precedence is crazy because no one knows what the
future holds. There are other needs with the opioid crisis, the growing older population, growing
needs of EMS and other departments. Setting this percentage gives some assurance that other areas
will not go unfunded.
Commissioner Houpe said the difference is that if revenues go up or down annually they
get 75% of it other than saying “up to.”
Commissioner McNeely said “up to” needs to stay in, the motion has been made.
VOTING: Ayes – 5; Nays – 0.
Chairman Mallory said this matter will be referred to the three school boards.
CLOSED SESSIONS
Chairman Mallory recessed the Board for five minutes to allow clearance of the audience.
Chairman Mallory returned the Board to open session. The following is an update on the
search for a County Manager.
HR Director Sandra Gregory stated there were 58 applications. The Search Committee
reviewed them and deemed that 30 did not meet the qualifications, 10 had very minimal
qualifications, 7 met the qualifications, but 11 actually rose above. After further review, five of
the most qualified were chosen to proceed in the process. However, one of those five has already
withdrawn their application which leaves four. These four were sent a questionnaire that was
created from the five attributes that were submitted from key sources in the community. In
additional the four applications completed an assessment for personality and skill level. Gregory
recommended that the Search Committee not perform the interviews as originally scheduled.
Those four applicants should proceed with an interview directly with the Board of Commissioners.
Commissioner Houpe suggested to delay interviews until July.
After a brief discussion the following dates will be scheduled for interviews: July 10
beginning at 12 noon, 2:30, 3:45, 5:00 PM and July 17 at 3:00 PM if necessary.
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MOTION by Commissioner McNeely to move the Board into Closed Session at 5:45 PM
for Personnel pursuant to G.S. 143-318.11 (a) (6).
VOTING: Ayes – 5; Nays – 0
The Board resumed Open Session at 6:00 PM with no action items as a result of Closed
Session.
ADJOURNMENT
MOTION by Commissioner Houpe to adjourn at 6:02 PM. The next regular meeting will
be Tuesday, June 5, 2018, 5:00 PM, in the South Wing Conference Room, Government Center,
200 South Center Street, Statesville, NC.
VOTING: Ayes – 5; Nays – 0
__________________________________ ___________________________________
Date Approved Retha C. Gaither, Clerk