HomeMy WebLinkAbout5-19-2020
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May 19, 2020
IREDELL COUNTY BOARD OF COMMISSIONERS
REGULAR SESSION MINUTES
May 19, 2020
The Iredell County Board of Commissioners met in regular session on Tuesday, May 19,
2020 at 7:00 PM, in the Commissioners’ Meeting Room located in the Iredell County Government
Center 200 South Center Street, Statesville, NC. In light of COVID-19, the Board cancelled the
pre-agenda meeting.
Board Members Present
Chairman James Mallory
Vice Chairman Thomas Bowles
Gene Houpe
Ken Robertson
Board Members Participating Remotely
Marvin Norman
Staff present: County Manager Beth Jones, County Attorney Lisa Valdez, Deputy County
Manager Susan Robertson, and Clerk to the Board Amy Anderson.
CALL TO ORDER: Chairman James Mallory called the meeting to order.
INVOCATION: Chairman Mallory asked everyone to bow their heads for a moment of
silence or reflection.
PLEDGE OF ALLEGIANCE led by Chairman Mallory.
ADJUSTMENTS TO THE AGENDA:
MOTION by Commissioner Houpe to approve the agenda as presented.
VOTING: Ayes – 5; Nays – 0
Chairman Mallory noted that Commissioner Norman was participating telephonically, and
the Board was adhering to Governor Roy Cooper’s Executive Order 121, which limits the number
of people in any gathering to 10. A deputy was available to assist in the ingress and egress of
anyone wishing to participate in public hearings.
PRESENTATIONS OF SPECIAL RECOGNITIONS & AWARDS
(None)
APPOINTMENTS BEFORE THE BOARD
Centralina Council of Governments Executive Director Geraldine Gardner will give
an update on the agency and its response and recovery related to COVID-19: Geraldine
Gardner explained that she is attempting to build relationships with a broader set of commissioners
across the region. Gardner shared appreciation to Commissioner Houpe and County Manager Beth
Jones with the help of doing so. Gardner said she took a hard look at how to expand the
collaboration between CCOG and the counties in which it serves.
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May 19, 2020
Presentation of the recently completed Comprehensive Recreation Master Plan for
Iredell County: Parks and Recreation Director Michelle Hepler said the adoption of the plan will
guide framework into the future. The document includes recommendations for programming,
operations, maintenance, and capital investments for Parks and Recreation facilities.
Determination and support for each recommendation depends on the direction of the Board of
Commissioners, staff, and Administration as it relates to budgetary implications each year. Hepler
said having an adopted master plan not only helps guide the department but allows Parks and
Recreation to be more competitive when applying for federal, state, and local grants and in turn
potentially saving the County expense which otherwise would come from internal budgeting. This
document represents input and feedback from the citizens of Iredell County and gives credibility
to the visioning and decision making of the staff and administrative levels for the future. Hepler
noted adoption of the plan does not cost the County additional funds. The recommendations
requiring funding will be addressed on a case-by-case basis and will occur in the department’s
regular operational and capital improvement budget requests each year. H epler explained failure
to adopt the plan may limit the department’s strategic plan and visioning for a long-term future.
Hepler reminded the Board that the plan is comprised of recommendations directly related to data
and input received from the citizens who chose to participate in the public process. Hepler then
introduced Consultant Lisa Wolff from GreenPlay LLC.
Wolff gave a brief background on GreenPlay. The company provides unique master plans.
The strategic kickoff began in December 2019 with staff. Community engagement meetings were
held with citizens, focus groups, and stakeholders. Next, a needs assessment of facilities and level
of service was completed. Findings were then presented to staff and a second public meeting was
held. Wolff said it is very important to look at the County’s demographics during a master plan
process. Iredell County has grown twice the size of the US. Wolff asked how the County addresses
that as it relates to the quality of life. The public engagement process takes a ver y deep dive into
hearing from the community. There were over 94 participants at the focus groups and stakeholders’
meetings. Out of those meetings, key issues were identified as well as the survey and the survey
analysis. Wolff presented, in detail, the PowerPoint provided below.
Commissioner Houpe asked for suggestions on steady revenue stream and how to
encourage all citizens the importance of investing in Parks & Recreation.
Wolff said it is dependent upon the climate of the taxpayers. The keyword in discussion is
sustainability. Wolff said a bond referendum would create facilities but departments have to be
able to operate those moving forward. Grants are short-term.
Commissioner Houpe said grants assist with tangible items. Houpe asked how man y
counties have developed a funding source with joint efforts of municipalities, school districts, or
other public and private partners.
Wolff could not pinpoint one county, but some counties and cities have dedicated a portion
of sales tax to be help create a source of funding. Parks and Recreation is a selling point because
it is a quality of life issue and it is not necessarily going back to the citizens because it is a sales
tax. Sales tax could be a sustainable source. Wolff said no one wants to raise taxes, but sales tax
is incurred by purchases. Wolff recommended a resource allocation. It takes a deep dive into the
County’s available revenue sources, existing budget, and CIP. There are different ways to look at
the concept of what the true opportunities are.
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May 19, 2020
Commissioner Robertson said the department has come a long way from the motto of “play
ball” and every problem was solved by taking another lap. Robertson said the master plan process
changed his view on recreation. Robertson’s initial view of good recreation was practice fields
closer to homes and having ball fields to play games on the weekends. Understanding the general
differences and challenges are were very eye opening. Robertson said taking existing facilities and
determining where to go from there was founded on reality. Challenges arise when there is a 1.8
or 2% growth. It is difficult to fund things for people who have not started paying taxes yet and
add this to new a school it makes it a budget breaker. Recreation will always take a second seat to
education. Robertson said a dedicated revenue source is a stream that flows through somebody
else’s wallet. The challenge is the County’s revenue stream is going to go through people’s wallets
and that is a lot easier said than done. Another challenge is the population density changes
throughout the County. There will always be a competing differences between putting the facilities
where the people are and having them to look like they appear dispersed amongst the geographic
area.
Chairman Mallory said the Parks & Recreation is an inflection point. It is either going to
do what has been doing have a very limited growth and ability to respond to expectations that
people have versus taking it to the next level. A data driven analysis and vision is required to take
it to the next level. Mallory said it was interesting to learn how little people knew about the
programs offered by the department. It offers a significant amount of programs and people who
know about them participate.
MOTION by Commissioner Norman to approve and adopt the Comprehensive Master
Plan for Iredell County as amended based on the comments received when the draft was circulated.
VOTING: Ayes – 5; Nays – 0
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PUBLIC HEARINGS
(None)
Request from Emergency Medical Services to Proclaim May 17 – 23, 2020 as
Emergency Medical Services Week: Blair Richey requested approval of a proclamation
proclaiming May 17 – 23, 2020 as Emergency Medical Services Week.
Emergency Medical Services Week Proclamation
To designate the Week of May 17 - 23, 2020, as Emergency Medical Services
Week
WHEREAS, emergency medical services is a vital public service; and
WHEREAS, the members of emergency medical services teams are ready to provide lifesaving care to
those in need 24 hours a day, seven days a week; and
WHEREAS, access to quality emergency care dramatically improves the survival and recovery rate of
those who experience sudden illness or injury; and
WHEREAS, emergency medical services has grown to fill a gap by providing important, out of hospital
care, including preventative medicine, follow-up care, and access to telemedicine; and
WHEREAS, the emergency medical services system consists of first responders, emergency medical
technicians, paramedics, emergency medical dispatchers, firefighters, police officers, educators,
administrators, pre-hospital nurses, emergency nurses, emergency physicians, trained members of the
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May 19, 2020
public, and other out of hospital medical care providers; and
WHEREAS, the members of emergency medical services teams, whether career or volunteer, engage in
thousands of hours of specialized training and continuing education to enhance their lifesaving skills; and
WHEREAS, it is appropriate to recognize the value and the accomplishments of emergency medical
services providers by designating Emergency Medical Services Week; now
THEREFORE, the Iredell County Board of Commissioners, in recognition of this event do hereby proclaim the week of May 17 -
23, 2020, as EMERGENCY MEDICAL SERVICES WEEK with the theme, “Ready Today. Preparing for Tomorrow.” I
encourage the community to observe this week with appropriate programs, ceremonies and activities.
MOTION by Vice Chairman Bowles to approve the proclamation as presented.
VOTING: Ayes – 5; Nays – 0
ADMINISTRATIVE MATTERS
In light of COVD-19, County Manager Beth Jones and Deputy County Manager Susan
Robertson summarized the following agenda items. Staff was available by phone to address any
additional questions.
Request from Emergency Medical Services for approval of budget amendment 33 to
appropriate funds provided by Partners Behavioral Health: Jones said this for a non-matching
grant in the amount of $2,791 from Partners Behavioral Health for the purchase of Narcan for first
responders and volunteer fire departments. The grant is on a reimbursement basis.
This item was place on consent.
Request from Emergency Management for approval of budget amendment 32 and to
accept a 14-foot enclosed trailer as a part of Domestic Preparedness Region 7 project to equip
counties for increased sheltering capacities: Jones said the only costs for the County going
forward is to tag and insure the trailer annually. The $5,000 grant will help complete the sheltering
project and will be used to hold pots, blankets, and clothes that were purchased in last year’s budget
cycle through the Domestic Preparedness Region 7 program.
Commissioner Robertson asked about keeping the items in good condition.
Jones said the items are used in practice exercises and are laundered before being stored
appropriately.
This item was place on consent.
Request from Emergency Management for approval of budget amendment 34 and to
accept an Emergency Management Performance Grant – Supplemental (EMPG-s) in the
amount of $12,696 to support response efforts due to COVID-19: Jones said the grant is a
50/50 match grant. Emergency Management will use existing salaries and general fund already
budgeted as the match. This is a one-time grant program to allow Emergency Management to
purchase materials and equipment to support in the response to COVID-19.
This item was place on consent.
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May 19, 2020
Request from Emergency Management for approval to accept a Tier II Hazardous
Materials Grant in the amount of $1,000 to help support the Local Emergency Planning
Committee: Jones said the annual non-competitive grant helps offsets the cost of supporting the
local Emergency Management committee.
This item was place on consent.
Request from Emergency Management for approval to accept a Tier II Hazardous
Materials Grant in the amount of $5,000 to provide funding for a joint hazardous materials
exercise with Mooresville Fire-Rescue, Statesville Fire Department, and Statesville Regional
Airport: Jones said there is no match for the grant and it will be used to conduct a joint exercise
with Mooresville Fire-Rescue, Statesville Fire Department, and the Statesville Regional Airport.
This item was place on consent.
Request from Emergency Management for formal adoption of the Iredell -Rowan
Hazard Mitigation Plan 2020 as updated: Jones said the plan is receiving a statistical update.
The document outlines the most probable scenarios facing the region along with mitigation
strategies. Jones noted the plan is paid for and required by the State of North Carolina.
This item was place on consent.
Request from Planning & Development to consider calling for a public hearing on
June 2, 2020 at 7pm in regards to text amendments to the Land Development Code: Jones
said the text amendments are related to solar facilities. Planning Board reviewed and made several
revisions to the text amendment and voted in favor (6-3) to recommend approval. The text
amendment came before the Board and the item was referred to the Economic Development Task
Force. The task force approved the text amendment. Jones requested a public hearing on June 2,
2020 at 7pm.
This item was place on consent.
Request from Iredell Economic Development Corporation for approval to amend the
Cheney Brothers LLC Economic Incentive Agreement, and to extend to May 1, 2020 the
deadline for the YanJan USA to execute its Economic Incentive Agreement: Jenn Bosser said
YanJan USA executed the economic incentive agreement on April 29, 2020, which exceeded the
150-day extension. Bosser requested approval to extend the deadline to May 1, 2020 for YanJan
USA for officials to execute the agreement.
Bosser said Cheney Brothers LLC was approved for an incentive on November 21, 2017
in the amount of $465,000 over five years based on a minimum assessed value of $18 million. The
anticipated range of that investment was $20 million - $24 million for an improvement period
between November 30, 2017 to November 30, 2022 and the creation of 105 new jobs. On July 16,
2019, the Board of Commissioners approved a 150-day extension to complete and fully execute
the incentive agreement. The agreement was executed on November 22, 2019 with a stated
minimum investment threshold of $20 million and a stated minimum assessment threshold for the
considered increase value to the tax base of $20 million to begin the incentive payment. Bosser
explained that Cheney Brothers is not requesting a reduction of the threshold, but have indicated
they fully intend to meet the investment threshold of $20 million. Bosser requested the increase in
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the value of the tax base be amended from $20 million to $3 million. This request is consistent
with agreements executed since this one was, and is in line with the County’s incentive policy.
Bosser said the company indicated they met the investment threshold of at least $20 million but
noted the improvement period is not over until November 2022. They were on their way to meeting
the 105 new jobs but have experienced a setback because of COVID-19. Ninety-eight jobs have
been created to date, however some of those are remote sales positions, however at least 80 of the
jobs are located at the Statesville location and they anticipate meeting the 105 jobs by the end of
the improvement period, November 2022. Bosser requested an amendment in the jobs requirement
so Cheney Brothers in turn can request an earlier payment. The amendment would include 80 jobs
by May 15, 2020, allow the company to receive a full payout and the company additional 18
months to reach the 105 jobs by November 2022. If the company does not reach the 105 jobs, the
Board of Commissioners could consider a pro-rated payout based on the jobs created.
Commissioner Houpe asked if the Board has ever amended a contract.
Commissioner Robertson said incentives are there for the creation of jobs. Even if the
financial threshold is met and the jobs are not, the incentive is not going to be the same.
The Board agreed by consensus the company to reach the threshold of 80 and start a pro-
rata payout.
This agenda item was place on consent.
Request from Finance Department for approval and adoption of a resolution for
electronic public auction of county-owned property located at 204 Bluefield Road,
Mooresville:
Commissioner Robertson said it is not the best time to sell the property.
Chairman Mallory said considering the request does not bound the Board to a decision.
Contract Manager Dean Lail said in 2019, the Board considered an offer to buy the property
but turned down the offer and hold on to the property. Since then, staff researched other ways to
auction or better options to sell the property. GovDeals is excited about the possibility and offered
to electronically advertise and auction the property. GovDeals has offered to reduce their standard
fee from 12½% to 5% to allow for more interest in the property. Lail said GovDeals has been
successful in the past. There is no contract with GovDeals and there are no follow up obligation if
there is no sell. If the property does not close, the County will owe nothing to GovDeals. Lail said
approval of the resolution would allow him to move forward. Although one is not required, a
minimum bid could be set.
Chairman Mallory said the 60 days would land between phases 1 and 2 of reopening the
State in regards to COVID-19. Mallory asked if the item can be approved and delay the starting
date of auction process to late summer when the Board may have more clarity on the economic
situation.
Vice Chairman Bowles said it will take a year to make a deal on the property because of
the due diligence involved.
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County Attorney Lisa Valdez advised the Board to bring the item back for discussion closer
to the date they are ready to start, if they are hesitant about June 24.
Chairman Mallory said it is prudent to start later than June 24. It gives a more advantageous
wait because there are so many uncertainties.
Commissioner Robertson suggested bringing the item back July 21.
The Board agreed by consensus to consider the item again on July 21.
Presentation of the second reading of amendments to the Personnel Ordinance: Jones
explained that On May 5, 2020, the Board of Commissioners voted 4-0 in approval of revisions to
the Personnel Policy. The following sections included changes: Article II. The Pay & Position
Classification Plan; Article VI. Employee Benefits; Article VII. Separation, Disciplinary, &
Reinstatement; Article IX. Personnel Records; and Article X. Implementation of Policy.
According to the Board’s Rules of Procedure Ordinances must receive the approval of all members
of the Board of Commissioners. If the proposed ordinance is approved by a majority of those
voting but not by all members of the board, or if the ordinance is not voted on at the meeting, it
shall be considered at the next regular meeting of the Board. If it then or at any time thereafter
within one hundred (100) days of its introduction received a majority of the votes cast, a quorum
being present, the ordinance is adopted.
This item was placed on consent.
Request from Tax Administration for approval of April refunds and releases:
This item was placed on consent.
Request from Clerk to the Board for approval of minutes from the meeting on May
5, 2020: There were no corrections.
This item was placed on consent.
MOTION by Commissioner Robertson to approve consent items.
VOTING: Ayes – 5; Nays – 0
ANNOUNCEMENTS OF VACANCIES ON BOARDS & COMMISSIONS
Animal Services Grievance Committee - 3 appointments
Centralina Workforce Development Board - 2 appointments
Farmland Preservation Advisory Board - 2 appointments
I-CARE Board of Directors - 1 appointment
Juvenile Crime Prevention Council - 5 appointments
Mitchell Community College Board of Trustees - 1 appointment
Social Services Board - 1 appointment
Troutman Board of Adjustment ETJ - 1 appointment
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APPOINTMENTS TO BOARDS & COMMISSIONS
(None)
PUBLIC COMMENT PERIOD
No one wished to speak.
UNFINISHED BUSINESS
(None)
NEW BUSINESS
(None)
COUNTY MANANGERS REPORT
County Manager Beth Jones presented the following FY21 Budget Message:
Fiscal Year 2020-2021 Budget Message
May 19, 2020
To the Iredell County Board of Commissioners and Citizens:
On February 21, 2020 the Board of Commissioners held a Budget Planning Retreat where staff
received direction regarding priorities for the upcoming year. Those priorities, along with the
County’s adopted strategic plan and departmental goals, normally become the framework for
what is recommended in the 2021 Fiscal Year Budget. However, in the matter of a few weeks,
our budget projections, financial viability and life as we knew it changed dramatically.
On March 3, 2020 North Carolina identified its first COVID-19 case and on March 10th the
Governor Declared a State of Emergency. On March 11 th COVID-19 was declared a pandemic by
the World Health Organization. On March 16 th Iredell County reported the first case of COVID-
19 and declared a State of Emergency on March 17th. The weeks following included incremental
increases of local positive cases, a State mandated Stay at Home order and an abrupt shift from
a growing and prosperous economy to a virtual standstill in the blink of an eye.
Economic Forecasting and Revenue Projections
The County’s budgeting process began in late December, early January, and included the analysis
of several factors including departmental needs, economic trends and anticipated growth.
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May 19, 2020
Departmental budget requests were received in late February and revenue projections were
conservative but promising with a projected increase of 2% in ad valorem revenue and 4% in
sales tax revenue. Unfortunately, with the impact of COVID-19 in March, we began to closely
track the negative impact of this global pandemic on our economy. Sales tax, our second largest
revenue source, was the first projected decline due to the State-wide Stay at Home Order and
mandated closure of certain businesses. While the full effect will not be known until June or July
due to the three month lag in revenue receipts as exhibited in Figure 1, we know the decline will
be sharp.
What we don’t know is the duration of the deficit. We are projecting an overall 2.63% decline in
sales tax revenues over the next fiscal year with the largest dip in the months of June-December
and hopes of a moderate rebound beginning in January. This is compared to Morgan Stanley’s
overall 2020 economic contraction projections of a 3% decline. Historically Iredell County has
fared better than State-wide averages due to the stability of our community and less dependency
on tourism.
Ad valorem tax revenues have also been adjusted downward to indicate a 5.85% increase as
opposed to 6.03%. We have modified our projected collection r ate back to the FY 2018-2019
actual collection rate of 98.91% due to future market uncertainty.
Several unknown variables exist, which makes it difficult to accurately project revenues for the
year ahead of us. For this reason, we have prepared a scaled back budget in anticipation of a
worst case scenario. Our hope is revenues will improve over the first half of the new fiscal year
and allow us to revisit the budget mid-year. If improvement occurs and revenue picks up,
eliminated items for the initial budget may be added back if funds are available to support them.
Iredell County has two major challenges, managing cash flow and balancing the budget as
required in the midst of so much uncertainty. In order to estimate anticipated revenues as
accurately as possible for the next fiscal year, we analyze building trends, population growth,
State and Federal policy decisions, unemployment rates and personal income, just to name a
few.
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New construction starts are a key indicator to an economic future and show builder confidence
in the market. Permitted housing units are trending fairly flat when comparing the permitted
housing units for the months of January – April for 2020 as exhibited in Figure 2.
A comparison of the same months for the past three years has shown a trended decline in two
years with an increase in 2018. This is a promising pattern leading into the months impacted by
COVID-19 and indicates our recovery may be a little easier if the phased reopening is successful.
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Most of that housing growth is
seen in the southern portion of
the county but is beginning to
move north as indicated in
Figure 3.
Iredell County continues to grow
at a relatively high rate. State
projections for Iredell County’s
2020 population indicate
184,023 residents and we are
projected to reach 194,595
residents by 2024. This indicates
a 5.74% increase in population
over this next four year budget
cycle. Our current 2020
estimated population of
184,023 makes us the 14th
largest county in the State.
More importantly, out of all 100
counties in the State of North
Carolina, there are only 12 that
have a lower 2019-2020 tax rate.
A low tax rate is a double edge
sword in many respects. It
assists in business
recruitment/retention and is
appealing to new residents but limits the County’s ability to offer the same level of services as
other similar size counties. It is a delicate balance of adequate service delivery and fiscal
conservancy. However, in a time of economic decline as a result of COVID-19, our low tax rate is
a blessing to our already struggling residents and businesses. One key way to sustain a lower tax
rate is through strong, conservative fiscal management and diversification of our tax base
through economic development. We continue to work hard in supporting our existing business
and industry by fostering retention and expansion as well as encouraging new business and
industry recruitment. Job retention is key in our current state of affairs and we rely heavily on
our teammates in this battle. With the partnership of the Iredell County Economic Development
Corporation, we strive to foster an environment that creates a premier community to live, work
and raise a family.
Our unemployment rate began to tick upwards beginn ing in January 2020 but collectively has
decreased overall since 2013. As of March 2020 it was 4% as indicated in Figure 4, which is below
both the State and National Level at 4.4%.
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May 19, 2020
This indicates that Iredell County is fairing slightly better than our State and Nation as we entered
this global pandemic. We know the impact of COVID-19 hit our job market in late March, early
April and the state projects a sharp increase in unemployment numbers beginning with the
month of April. The U.S. Bureau of Labor Statistics reported the U.S. unemployment rate climbed
from 4.4% in March to 14.7% in April. Economists have projected a state jobless rate between
12% and 15% for
April, which would
be higher than the
33-year
unemployment
peak of 10.9%
experienced in
2010 during the
slow recovery from
the Great
Recession.
The two largest
sources of the
County’s revenue
comes from ad
valorem tax at
62.44% and local
option sales tax at
16.57% as depicted in Figure 5.
62.44%
16.57%
6.24%
5.05%
3.36%
3.14%2.08%1.11%
Figure 5: Fiscal Year 2021 Proposed Revenues by
Source
Ad Valorem - 62.44%
Local Option Sales Tax - 16.57%
Restricted Intergovernmental - 6.24%
Sales & Service - 5.05%
Permits & Fees - 3.36%
Other Financing Sources - 3.14%
Other Taxes & Licenses - 2.08%
All Others - 1.11%
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May 19, 2020
When looking at all of the economic indicators, ad valorem tax revenues are expected to increase
5.85%, which equates to 1.97% in the additional penny approved by the voters for school capacity
bonds and 3.88% in valuation growth. Taking into consideration the ebbs and flows of all
additional revenue sources, several of which are down, the 2021 Fiscal Year Budget
Recommendation is predicated on an overall growth of 3.46% or $7,701,308. Of this new
revenue, $2,638,397 is attributed to the newly approved 1 cent tax increase for the school
capacity bonds and will go towards retiring the debt.
Fund Balance
Our fund balance has fluctuated over the past several years as we have saved up funds to pay for
large capital projects. One of the largest projects funded out of fund balance is the new Iredell
County Detention Center that just recently came on line this year. The Board established a
minimum threshold of 18% of operating expenses and we have worked tirelessly to not just
maintain but slowly build back our fund balance through the diligent savings of our departments
and fiscally conservative policies established by the Board of Commissioners. Our fund balance
is estimated to be at 18.9% of the recommended budget and for that I am extremely grateful
going into a very uncertain year ahead. The County’s commitment to live within our means and
prepare for financial uncertainty will pay off in the year ahead. This recommended budget does
not anticipate the use of fund balance for normal operational funding. We are recommending
the appropriation two one-time expenditures for planning purposes, which include $30,000 for
the Transportation Plan matching grant and $250,000 for the fairgrounds master plan study. If
revenues take a sharper decline or the recovery takes longer than projected, the County will have
some reserves to fall back on if needed. The County’s Fund Balance Policy and healthy debt
profile will serve us well through the COVID-19 financial impact to our economy.
Expenditures
We made every
effort to satisfy
the priorities of
the Board of
Commissioners
while working
within the
confines of our
available
revenues as a
result of our
current economic
condition. The
majority of the
requests are
needs but must be prioritized, delayed and in some cases eliminated due to limits in revenues.
8.90%
21.26%
2.08%
14.61%
2.28%
44.28%
1.03%
3.90%1.66%
Figure 6: Fiscal Year 2021 General Fund
Proposed Expenditures
General Government - 8.9%
Public Safety - 21.26%
Development Services - 2.08%
Human Services - 14.61%
Cultural & Recreation - 2.28%
Education - 44.28%
Debt - 1.03%
Transfers/CIP - 3.90%
Capital Reserve - 1.66%
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May 19, 2020
We modified each department’s line item requests to reflect actual spending over a four year
historical perspective. We will also roll forward unspent funds in the FY20 budget to help cover
some FY21 expenses. This is possible through the spending limitations enacted in the last quarter
of the FY20 budget as a result of COVID-19. Figure 6 shows the breakdown of expenditures by
category. These percentages are very similar to years past, with the top three areas being in
education (44.28%), public safety (21.26%) and human services (14.61%).
Education
This year we made a concerted effort to revisit the educational funding formula primarily in
response to the request of the schools to shift our focus towards current expense funding. In
years past the County funded education four different ways: current expense, capita l, debt
service and safety & security. In an effort to streamline the funding process and fall in line with
the funding methodology utilized by other Counties in the State of NC, we made the following
modifications:
Current Expense will be funded on a per pupil basis and will be calculated by getting an
average of the counties in NC with average daily membership (ADM) that falls within
twenty percent, above and below, Iredell County according to the NC Association of
County Commissioner (NCACC) Budget and Tax Survey. This average will be obtained each
reappraisal year and Iredell County’s funding level will be set at the new average or at the
current funding level, whichever is higher. Each year thereafter, the per pupil allocation
will be increased by the December US Department of Labor Un-Adjusted Total Consumer
Price Index (CPI), excluding any one-time adjustments from the prior year and not to
exceed the estimated property tax revenue growth for the upcoming fiscal year.
Capital Funding would be equal to Chapter 105 of the NC General Statutes, Article 40 and
42 Local Governmental Sales and Use Taxes, distributed based on the average daily
membership between the Iredell-Statesville and Mooresville Graded system systems.
Large capital needs (outside normal maintenance, repair, replacement and renovation)
will be vetted as part of the County’s Capital Improvement Plan.
Debt Service would be covered by the County’s ad valorem tax collections to cover
principal and interest amounts equal to the county’s borrowings for the educational
facilities. This amount will be adjusted annually in accordance with the retirement of
principal and interest related to the debt service of capital projects.
School Safety & Security, a new budget created in the FY20 budget with the hopes of the
passage of the quarter cent sales tax, would be funded through the County’s allocation of
½ cent of Ad Valorem taxes to its Public Safety Function for school safety and security as
a temporary funding source to be used to complete the remaining capital needs for school
safety and security identified for ISS, MGSD & MCC. Once these previously identified one
time capital needs are satisfied that funding source will expire.
To date, both Mooresville Graded Schools and Mitchell Community College have signed the new
funding agreement which shifted the focus to current expense funding as opposed to capital
funding. Financial allocations for the three education systems comprises 44.28% of the proposed
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General Fund Budget. In FY21, there is a total increase in Current Expense and Capital Outlay
funding in the amount of $3,942,221 as depicted in Figure 7. This will increase the per pupil
amount to $1,940, up from $1,675 in FY20, and will be uniform between Iredell -Statesville
Schools (I-SS) and Mooresville Graded School District (MGSD). I-SS will see an increase of 18%,
or $6,818,810, in current expense and a decrease of 44%, or $5,687,080, in capital outlay. MGSD
will see an increase of 18%, or $1,984,725, in current expense and a decrease of 22%, or $574,198
in capital outlay. Mitchell Community College (MCC) will receive 18%, or $639,794, more in
current expense and 80%, or $760,170, in capital outlay in the upcoming year.
Personnel
As a service organization our greatest strength are our employees. It is only through them we
are successful and can serve the citizens of Iredell County. The Board recognizes this and has
taken proactive steps over the past several years to ensure that Iredell County is an employer of
choice. We have and will continue to focus on turnover reduction, which is currently trending at
5.46% from January-April, 2020. This is a key factor in any successful and thriving organization
because employee retention is more efficient than employee replacement. Staff retention is
achieved through creating positive and safe work environments, engaging your staff and letting
them know their voice is heard, showing appreciation and support, encouraging positive morale
and rewarding exemplary service.
During a global pandemic it would be assumed this would be an impossible task but we are
fortunate to have dedicated and loyal staff that have a true servant’s heart. Our staff have been
called on more now than ever as a result of COVID-19 and the vast majority have answered the
call unselfishly. Our Health Department and EMS agencies are dealing directly with COVID -19
patients and do so with compassion and self-sacrifice around the clock.
Our Emergency Communications Department has taken great steps to screen calls with the new
COVID-19 protocols to send appropriate resources in order to protect the citizen and the
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
2015 2016 2017 2018 2019 2020 2021
Figure 7: Education Funding
Current Expense Capital Outlay
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May 19, 2020
responder. Our Emergency Management Agency coordinates supply requests for the County and
works tirelessly to address the demand for Personal Protective Equipment (PPE) for our medical
providers and first responders. Our Sheriff’s Office, who are already in a high risk profession,
have to exercise an extra layer of diplomacy as they are the enforcement arm of the Governor’s
Stay at Home Order.
Our Social Services Department has seen a sharp increase in Medicaid applications and food and
nutrition services and work tirelessly to ensure assistance is on the way. Our Information
Technology Department adapted overnight to provide virtual solutions to allo w uninterrupted
service delivery. Our Development Service Departments work creatively to adjust their normal
practices to ensure that essential construction and development continue safely. Marriages,
deaths and property transactions still occur even wit h a stay at home order in place and the
Register of Deeds office has responded. ICATS modified their transportation services to assist in
meal delivery to those that were in need while our Vehicle Services Department works
continually to keep our fleet of 465 vehicles maintained and operable.
The Library repurposed their facilities to assist students that don’t have internet access to
complete their required on-line learning as the result of school facility closures. Facility Services
shifted their focus and began elevated sanitizing, cleaning and maintenance of all 63 county
properties to keep citizens and employees safe. Parks and Recreation recognized the increased
demand on Facility Services and took advantage of the Recreation Center closure and began to
perform required maintenance themselves including repainting the facility, performing parks and
trail maintenance and facility updates. Cooperative Extension helped coordinate a drive -in
discounted food sale at the fairgrounds and works tirelessly to provide advice and assistance to
our agricultural community that was already struggling to make ends meet.
Solid Waste has seen a large spike in utilization as the result of residents being home for extended
periods of time tackling their spring cleaning. Animal Services continue to provide services and
respond to assist our population that has no voice. Human Resources quickly shifted to interpret
and apply the new Families First Coronavirus Response Act Federal Legislation in a matter of days
and works to assist County Employees impacted by the virus. Veteran’s Services continue to
serve our soldiers and their families because the needs don’t disappear even when our mobility
is limited. Finance added to their busiest time, budget season, the minute by minute tracking of
revenue loss and necessary expenditures as a result of COVID-19. Elections and Tax continue to
follow mandated requirements as safely as possible and be an information resource for citizens
that call frequently asking how this pandemic will impact the upcoming election, tax listing and
required payments.
The calls for help continue and County employees answer without fail day and night. For these
reasons I struggle to not recommend a pay increase for these loyal pub lic servants; however, in
a time where our community is struggling and we are facing historical unemployment numbers,
the revenues simply are not available. I am, however, recommending once revenues begin to
recover and our economy rebounds, a salary scale adjustment be the first item the Board
contemplates adding to the budget if a mid-year review is possible.
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May 19, 2020
We received 27 full time and 4 part time new position requests this year and were only able to
recommend 8 full time and 3 part time, which are detailed below.
Transitioning a part time position to a full time GIS Mapping Tech simply due to the size
of the county and the need to ensure that our GIS data is as accurate as possible. With
the shift now to on-line service delivery the dependence on this information is critical.
Converting previously contracted janitorial services into two full time and one part time
day porter at the Health Department and Animal Services/Cooperative Extension
Facilities. The level of cleaning required in these facilities is great and in order to ensure
it is more frequent and on demand, we can provide better service for virtually the same
amount of money in-house.
Adding three telecommunicators in our Emergency Communications Department so we
can begin monitoring tactical channels for departmental interoperability and to help with
the growth in call volume. We are also recommending a Technical Support Specialist to
assist in Computer Aided Dispatch (CAD) updates and programming and to assist with
performing required quality assurance checks.
Adding an Administrative Support Assistant in the Building Standards Department to
assist in ensuring our on-line offerings are up-to-date and services do not suffer. Funding
for the first year for this position will be realized through a mid -year delay in filling an
inspector position, which we feel confident we can do with the slowing economy.
Adding a part time Planner position to assist in ensuring plans are reviewed in a timely
and thorough manner to help expedite the turnaround time to jump start our anticipated
recovery.
Adding a part time EMS Operations Officer to assist in the growing regulatory
requirements and demands on our service.
Capital Projects
As the County grows and the demand for services shift, we must ensure we are maintaining our
facilities and expanding where necessary. Within this budget, there is $605,000 proposed in
facility improvements and $2,667,500 to fund identified projects in the Capital Improvement Plan
(CIP). We are also hoping to roll unspent contingency funds from the Detention Center and Public
Safety Center construction projects into this fund upon project close out.
We have taken a hard look at capital projects for this fiscal year and trimmed them back
substantially from what was reviewed and discussed at the Winter Retreat. Our focus was on
necessary projects resulting in the delay of several less critical projects. In cluded in this budget
are funds to make necessary ADA accessibility improvements at several county facilities and
grounds. We propose this to be a multi-year project with funds allocated each year. A parking
lot extension at Government Center South, which is part of our lease agreement with the NC
Department of Environment Natural Resources (DENR). New carpet at Government Center South
in the new Probations and Parole and DENR spaces. The final year of the VoIP phone system
project and a portable generator that could be used at critical facilities during the loss of power.
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May 19, 2020
Funds are set aside for necessary ambulance replacements due to wear and tear of the current
fleet. Repayment of borrowed funds to the Future Park Fund and funds for a partnered sewer
line extension at the Recreation Center with the Town of Troutman and Children’s Hope Alliance.
We also have funds earmarked as a set aside for the future match to the ICATS facility grant,
which we anticipate having a revenue offset.
Fire Funding & Rescue Funding
With the newly approved 9 cent All-County Fire Tax, we have been successful in establishing a
sustainable funding mechanism for the 19 contracted volunteer fire departments. Fire
protection is a vital service Iredell County provides to the citizens, through the assistance of the
volunteer fire departments. The newly created fire funding formula allows for an increase in
funding to the fire departments to help them address their most pressing need, personnel. It
also establishes an apparatus replacement program based on age, mileage and need. This helps
the County plan several years down the road for necessary apparatus replacements that are
rather large ticket items.
With the success of the fire funding formula, we have modified the resc ue funding, which is
funded from the general fund, to address similar needs in the rescue service. The base funding
formula is calculated on square miles and population in the various rescue districts with
additional funding set aside for apparatus and eq uipment replacement. This new funding
mechanism will allow for an increase in funding to our rescue providers and allow for a rotation
for apparatus replacement. It will also provide opportunities for the rescue providers to
participate in bulk purchasing of similar equipment which in turn would save tax payers dollars.
Recommendation
This message fulfills my obligation under North Carolina General Statue 159 -11 to present the
recommended Fiscal Year 2020-2021 budget of $230,357,300. This will set the county tax rate
at 53.75 cents per $100 valuation, which includes the newly approved 1 cent for the School
Capacity Bond, which equates to $2,638,397. This budget is based on a tax base of
$26,674,720,000 with a collection rate of 98.91%. The fund balance on June 30, 2020 is estimated
to be $43,528,311, which is 18.9% of the recommended budget.
Respectfully Submitted,
Beth M. Jones
Iredell County Manager
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Jones explained that budget workshops will be held May 26 and May 28 from noon – 5pm in the
auditorium of the Cooperative Extension.
CLOSED SESSION
There were no items for Closed Session.
ADJOURNMENT
MOTION by Commissioner Robertson to recess at 10:02PM until the Budget Work
Session held at noon on May 26, 2020 at the Iredell County Cooperative Extension. The next
regular meeting will be June 2, 2020, 5:00 PM, in the Commissioners’ Meeting Room,
Government Center, 200 South Center Street, Statesville, NC.
VOTING: Ayes – 5; Nays – 0
__________________________________ ___________________________________
Date Approved Amy B. Anderson, Clerk