MINUTES

STATE OF NORTH CAROLINA BOARD OF COMMISSIONERS

COUNTY OF HENDERSON MAY 20, 2009

The Henderson County Board of Commissioners met for a regularly scheduled meeting at 8:00 a.m. in the Commissioners' Meeting Room of the Historic Courthouse on Main Street, Hendersonville.

Those present were: Chairman Bill Moyer, Vice-Chairman Charlie Messer, Commissioner Larry Young, Commissioner Chuck McGrady, Commissioner Mark Williams, County Manager Steve Wyatt, Assistant County Manager Selena Coffey, Attorney Russell Burrell, and Clerk to the Board Teresa L. Wilson.

Also present were: Finance Director Carey McLelland, Tax Assessor Stan Duncan, IT Director Becky Snyder, Registrar of Deeds Nedra Moles, Tax Assessor/Interim Collector Stan Duncan, Director of Public Health Tom Bridges, Code Enforcement Director Toby Linville, Recreation Director Tim Hopkin, Fire Marshal Rocky Hyder, Animal Services Director Brad Rayfield, Human Services Director Jan Prichard, Sheriff Rick Davis, Captain Greg Cochran, Elections Director Beverly Cunningham, Environmental Health Supervisor Seth Swift, Soil & Water Conservation Director Jonathan Wallin, Auxiliary Business Manager Bill Blalock, Administrative Officer Dorine Lafontaine, Community Social Services Program Administrator II Penny Summey, Planning Director Anthony Starr, Engineer Marcus Jones, Associate County Attorney Sarah Zambon, Research/Budget Analyst Amy Brantley, PIO Intern Christy DeStefana and Public Information Officer Pam Brice.

CALL TO ORDER/WELCOME

Chairman Moyer called the meeting to order and welcomed all in attendance. He noted that this is a regularly scheduled meeting but the majority of the meeting would be dedicated as the first budget workshop.

PLEDGE OF ALLEGIANCE

Commissioner Larry Young led the Pledge of Allegiance to the American Flag.

INVOCATION

Commissioner Mark Williams gave the invocation.

DISCUSSION/ADJUSTMENT OF AGENDA

Chairman Moyer made a correction to the agenda noting at 9:15 am what is shown as departmental presentations would actually include Henderson County Public Schools and the Community College which are not county departments.

Commissioner McGrady made the motion to approve the agenda with the change noted. All voted in favor and the motion carried.

CONSENT AGENDA

Commissioner McGrady made the motion to adopt the consent agenda as presented. All voted in favor and the motion carried.

Consent Agenda consisted of the following:

Tax Collector’s Report

Deputy Tax Collector Carol McCraw had presented the Tax Collector’s Report to the Commissioners dated May 8, 2009 for information only. No action was required.

Tax Releases

A list of 15 tax release requests was presented for the Board of Commissioners review and approval.

Suggested Motion:

I move the Board approves the Tax Release Report as presented.

Tax Refund

A list of 37 refund requests was presented for the Board of Commissioners review and approval.

Suggested Motion:

I move the Board approves the Tax Refund Report as presented.

Set Public Hearing on CDBG Closeout

The Community Development Block Grant (CDBG) Housing Development project assisted Henderson County Habitat for Humanity to increase the amount of affordable housing available to county residents. The CDBG funds provided Shuey Knolls Phase III for 1,140 linear feet of water lines, road and drainage system’s allowing for the construction of up to 21 homes. The construction project is now complete and a public hearing formally closing out the grant is a required step.

Planning Staff recommends the Board of Commissioners schedule a public hearing on Monday, June 1, 2009 at 7:00 p.m., or schedule a special called meeting on or after that date.

Suggested Motion:

I move the Board schedule a public hearing for the Shuey Knolls CDBG grant close-out for Monday, June 1, 2009 at 7:00 P.M.

Rezoning request to Laurel Park Town Council

Henderson County Emergency Services is currently coordinating a communications upgrade for the state-wide Voce Interoperability Plan for Emergency Responders (VIPER). This upgrade will provide new towers and buildings at three communications sites in Henderson County along with access to the VIPER system, and is paid for by the Homeland Security Grant in cooperation with the NC Highway Patrol. In order to locate a new building and tower at the Jump-Off Mountain site, adjacent property will need to be utilized. The Town of Laurel Park owns the adjacent property which currently serves as a water storage facility and therefore requires re-zoning to allow for governmental communications.

The Board is requested to authorize the Chairman to sign the letter provided formally requesting the Town of Laurel Park rezone parcel #9900636, Lot #1 of Echo Mountain Ridge subdivision to allow for governmental communications, infrastructure and equipment.

Suggested Motion:

I move the Board authorize the Chairman to sign a letter to the Town of Laurel Park formally requesting rezoning property on Jump-Off Mountain to allow for governmental communications, equipment and infrastructure.

Request for Road Closing

North Carolina General Statute 153A-241 requires that the Board of Commissioners first adopt a resolution declaring its intent to close a public road or easement. The proposed resolution was provided declaring its intent to close two continuous portions of an unopened easement/alley bordering two properties of James & James, Environmental, Inc., having an address of 3801 Asheville Highway and 11 Old Park Road, both of Hendersonville, N.C. Surveys showing the two portions of the easement to be closed were provided.

Suggested Motion:

I move that the Board approves the proposed resolution, and set a public hearing on the road closure for July 6, 2009, at 7:00 p.m.

REVENUES

Chairman Moyer emphasized that this will be a difficult year. From a property standpoint we are basically looking at flat revenues moving forward with almost no growth for the foreseeable year. Obviously the collection rate is a problem but the biggest problem is the local option sales tax.

County Manager Steve Wyatt provided the following information via power-point. One of the critical issues is the sales tax. The County recognized early on that we would not have the growth in the property tax base that we had been realizing annually for the last recordable past. When we met in January we were basically working off a flat sales tax projection. Except for the trade-off issue with Medicaid (Article 44) and since that time as the County has worked through the budget and tracked the sales tax numbers we decided to reduce our sales tax projection by 5%.

Finance Director Carey McLelland addressed the issues with sales tax. There was an agreement between the State and the Counties for a Medicaid swap for sales tax and this is the final fiscal year for the taking of our sales tax. Article 44 sales tax in this year’s budget is a little over $2 million. There is a decrease of $2,938,520 and $2,044,000, of this is the loss of Article 44 for next year. The $893,000 is the additional 5% that we are taking off of what we think will be a sales tax for next year. After eight (8) month of this fiscal year we are $279,000 below what we need to make budget with four (4) months to go. His best estimate is that we will probably be in the negative by the end of this fiscal year and has suggested to the County Manager that we reduce the sales tax projection for next year another 5% or $893,000.

Tax Assessor/Interim Collector Stan Duncan touched on the logic of the collection rate stating last year on June 30, 2008, we had one of the highest collection rates ever in Henderson County. The budget was based on 97% of the 12.88 billion dollars tax base. We are going to be at the same 12.88 billion dollars or slightly above this year. It is so slight, approximately ¼ of 1% above. He viewed this as marginal or flat. The Tax Office is not seeing an impossible tax collection process now but certainly a slow collection process. They are working very hard to collect small payments on even $100-200 tax bills. Mr. Duncan feels that the collection office will be able to make the 97% or better but it will take significant effort. This coupled with the tax base is a reasonable and reliable basis for continuing the .462 cents per dollar tax rate for the coming fiscal year. Starting January 6, 2010 they will begin attaching bank accounts and garnishing wages. Payment plans will be offered with the mailing of this year’s tax bills in an effort to try to get smaller payments in incrementally; early before they become delinquent.

Chairman Moyer was surprised to see that the finance director was anticipating $50,000 in investment earnings in the coming year with the County using Fund Balance, drawing the Fund Balance down and the returns that are available on the monies.

Mr. McLelland stated that with what the County is appropriating for Fund Balance he stills feels that we have a fairly healthy Fund Balance and more cash in the bank than we have had the previous years. Even though rates are down (bottomed out) more cash will be available to invest out for a longer term (6-12 months) and this is his best estimate.

Chairman Moyer felt that it was obvious and the public should realize that the revenues, from the County standpoint, are a moving target. The Board is doing the very best they can with the information available. The situation with the State is very severe and has not been fully address yet. We must and will have the County budget done by the end of June. It is possible that the State will take steps that will impact us, and they may even take them after June which will cause a real problem. If they take steps prior to the end of June the Board will go back and look at the budget and see what we have to do to adjust for what the State may or may not do with respect to their budget. Sales tax is one of the areas there is concern with. A number of years ago the state took some of our monies and the lottery monies and ADM monies are still up in the air. Our budget is a fair representation of what we think revenues will be at this time.

REVENUE PROJECTIONS

General Fund	FY 2009 Budget	FY 2010 Proposed	$ Change From FY09 to FY10	% Change From FY09 to FY10
Ad Valorem Taxes – Current Year	$57,720,432	$57,832,467	$112,035	0.19%
Ad Valorem Taxes – Prior Year	$1,305,000	$1,520,000	$215,000	16.48%
Local Option Sales Taxes	$19,917,491	$16,978,971	$2,938,520	-14.75%
Other Taxes and Licenses	$1,840,550	$976,548	-$864,002	-46.94%
Unrestricted Intergovernmental	$57,000	$57,000	$0	0.00%
Restricted Intergovernmental	$22,063,284	$19,458,535	-$2,604,749	-11.81%
Permits and Fees	$2,018,500	$1,165,800	-$852,700	-42.24%
Sales and Services	$7,978,956	$5,631,024	-$2,347,932	-29.43%
Investment Earnings	$750,000	$800,000	$50,000	6.67%
Intergovernmental Reimburse Financing Proceeds	$3,220,942	$2,521,518	-$699,424	-21.71%
Transfer In	$399,422	$271,064	-$128,358	-32.14%
Fund Balance Appropriated	$1,117,540	$2,267,171	$1,149,631	102.87%
Total General Fund Revenues	$118,389,117	$109,480,098	-$8,909,019	-7.53%

*Restricted Intergovernmental Revenues include $750,000 ADM Funds

Revenues: Where does the money come from? Significant Issues from FY2009 to FY2010

Ad Valorem Taxes – Current Year 52.8%

A less than 1% increase in current year tax collections based on an estimated $12,905,000,000 in taxable property value from the County Assessor; a 97% collection rate and a tax rate of $.462 cents.

Ad Valorem Taxes – Prior Years 1.4%

Based on current year collections to date, the Delinquent Tax Collector anticipates increased revenues from prior year tax collections, delinquent interest and penalties, and advertising costs for FY2010.

Local Option Sales Taxes – 15.5%

Articles 39, 40 and 42 assume a 5% decrease for FY2010. Due to the Medicaid Swap agreement with the State of N.C., the Article 44 (.5) cent sales tax will no longer be received in FY2010 by the County.

Other Taxes and Licenses – 0.9%

Deed Stamp Excise Tax collections budgeted at 48% or $860,000 below current year’s budget for FY2010 due to the current real estate market.

Unrestricted Intergovernmental – 0.1%

No change in FY2010.

Restricted Intergovernmental – 17.8%

$1.55 million in one-time grant funds awarded and budgeted in the current fiscal year, not carrying over to FY2010, $560,000 less in Medicaid Maximization dollars available to budget in FY2010 for Health Department Programs, DSS Foster Care reimbursements down $275,000 for FY2010 over the current fiscal year and other decreases across the board in various accounts.

Permits and Fees – 1.1%

Building Inspection Fees budgeted at 49% for $620,000 below current year’s budget for Fy2010 due to current residential and commercial construction activity. Recording Fees collected in the Register of Deeds Office budgeted at 35% or $250,000 below current year’s budget for FY2010 based on current fiscal year activity.

Sales and Services – 5.1%

Environmental Health/Sanitation Fees down $175,000 for FY2010. Soil & Erosion Control Enforcement Fees down $110,000 for FY2010. Remaining decreases in this category are across the board in various accounts. Indirect Cost of $2.1 million has been removed from the FY2010 DSS budget due to the new direct cost allocation method.

Investment Earnings – 0.7%

Increase of $50,000 over current year budget of $750,000

Intergovernmental Reimburse / Financing Proceeds – 2.3%

$553,000 of financing proceeds for E911 Expansion Project in current fiscal year – not in FY2010. Sales tax intergovernmental reimbursement agreement with the fire departments down $388,000 for FY2010 due to the loss of Article 44 (.5) cent sales tax from the Medicaid Swap. Other decreases across the board in various accounts.

Transfers in – 0.2%

Travel & Tourism debt service budgeted in the T&T Fund for FY2010 instead of being transferred to the General Fund to pay out.

Fund Balance Appropriated – 2.1%

$2,267,171 Fund Balance appropriated. Total projected fund balance over 12% BOC Policy prior to any SY2010 appropriation - $8,171,216.

FY 2009 - 2010 PROPOSED BUDGET - EXPENDITURES
GENERAL FUND	SIGNIFICANT ISSUES FROM FY 2009 TO FY 2010
GENERAL GOVERNMENT
Governing Body	Personnel Reduction of one FTE
Dues and Non-Profit Contributions	Increase in MPO and WCCA Grant
County Manager	Adds retiree insurance for 1 retiree
Administrative Services	Reduction in allocated Debt Service and Worker's Comp, full year funding for all positions
Human Resources	Reallocates Risk Manager position from Risk Management Fund, includes full year funding for all positions
Elections	Debt Service on voting equipment paid in full in FY09
Legal	Allocated Debt Service and Personnel Expenditures reduced in FY2010
Register of Deeds	Significant reduction in 48% of excise tax paid to State, proposes personnel reduction of one FTE and one part-time temp
Central Services	Planned Projects allocated by department
Garage	Includes full year funding for all positions
Court Facilities	No issues - Funding remains essentially level
Information Technology	Reallocates one position from IT to Wellness Clinic
Wellness Clinic	Position reallocated from IT to Wellness Clinic, FY09 expenditures allocated
Debt Service	All debt service allocated to Departments
Non-Departmental Accounts	Funding for Unemployment, Worker's Comp and 2010 Census
Transfers From the General Fund	Includes $772,677 transfer to Capital Reserve Fund
TAXATION AND FINANCE
Finance	Reduced personnel expenditures, includes full year funding for Munis software license
Assessor	No issues - Funding remains essentially level
Tax Collector	Proposed budget recommends a elimination of the Tax Collector position
PUBLIC SAFETY
Sheriff	Includes $330,000 transfer to the Capital Projects Fund for planning costs associated with a Law Enforcement Center
Detention Facility	Reduction in personnel costs and debt service levels
Emergency Management	Excludes two, one-time grants for Upward Road and a capital project
Fire Services	Includes Worker's Comp Funding for Volunteer Fire Department staff
Building Services	Personnel Reduction of one FTE, decreased operational expenses
Emergency Medical Services	Excludes one-time FY09 capital funding for stretchers & cardiac monitors
Animal Services	Decrease in Worker's Comp, decreased operational expenses
Criminal Justice Partnership Program	No issues - Funding remains essentially level
Rescue Squad	No issues - Funding remains essentially level
Code Enforcement Services	Reduction in personnel costs due to annualized FY09 RIF savings
PLANNING & ECONOMIC DEVELOPMENT
Property Addressing	No issues - Funding remains essentially level
Soil & Water Conservation	Excludes two one-time FY09 grants
Utilities	No issues - Funding remains essentially level
Planning	Excludes one-time NC Clean Water Trust Fund Grant
HOME Program	100% federal grant funded
Economic Development	Excludes two one-time projects: One NC for Elkamet, and NC Trust Fund
ENVIRONMENTAL PROTECTION
Forestry Services	No issues - funding remains level
Soil & Sedimentation Division	Personnel Reduction of one FTE
Cooperative Extension	Includes full year funding for personnel expenditures
HUMAN SERVICES
General Public Health	Reconfiguration of Health Department resulting in personnel savings
Public Health Programs	Elimination of 3 grant programs totaling $535,976, including 1 time Childhood Obesity Prevention Grant
Environmental Health	Personnel Reduction of one FTE
Home and Community Care Block Grant	No issues, 100% grant funded - expenditure and revenue increases equal
Youth Programs	One position allocated from Youth Programs to DSS Administration
Mental Health	No issues - funding remains level
Rural Operating Assistance Program	No issues - funding remains level
Social Services	Requested all positions be unfrozen
Administration	Increase in debt service, relocates one position from Youth Programs. Indirect Cost removed - direct cost allocation method
SmartStart Program	No issues - Funding remains essentially level
WorkFirst Demo Grant	No issues - funding remains level
Federal and State Programs	Medicaid funding eliminated for FY10
General Assistance	No issues - funding remains level
Juvenile Justice Program	No issues, funding remains level - 100% grant funded
Veterans Services	Increase in debt service
CULTURAL AND RECREATION
Library	Reduction in personnel costs due to annualized FY09 RIF savings, and proposed reduction of 1 Part Time position
Recreation	Increased personnel due to allocation of maintenance personnel from Central Services
HENDERSON COUNTY PUBLIC SCHOOLS	SIGNIFICANT ISSUES FROM FY 2009 TO FY 2010
Henderson County Public Schools
Current Expense	No issues - funding remains level
Capital Expense	Major investment in school renovations and repairs
Debt Service	Debt service payments include 1/4 year funding for: Apple Valley/North Henderson High and $3,000,000 repairs/renovations
BLUE RIDGE COMMUNITY COLLEGE	SIGNIFICANT ISSUES FROM FY 2009 TO FY 2010
Blue Ridge Community College
Current Expense	No issues - funding remains level
Capital Expense	Major investment in school renovations and repairs
Debt Service	Debt service payments include 1/4 year funding for $2,000,000 repairs/renovations
SPECIAL REVENUE AND ENTERPRISE FUNDS	SIGNIFICANT ISSUES FROM FY 2009 TO FY 2010
Reappraisal Reserve Fund	Includes full year funding for all positions
Travel and Tourism	Decrease in personnel
CDBG - Scattered Site Housing	No issues - funding remains level
E911 Fund	Includes additional funding for Capital Outlay - Technology
Mud Creek Watershed Protection	Grant funding is in question, with a decision anticipated in December. Proposed budget preserves personnel funding to Dec 31
Public Transit Fund	Increase in Capital Outlay - Equipment. No issues - County funding remains level
ICE Program	Reduction in operating expenditures corresponding to a projected decrease in inmates and revenue
Solid Waste Enterprise Fund	Increase in budget for Capital Outlay - Land and Improvements, and Capital Outlay - Equipment
Cane Creek Water and Sewer District	Increase in budget for sewer line construction
Justice Academy Sewer Fund	No issues - funding remains essentially level

Blue Ridge Community College

Cost Area	FY09 Revised	FY09 Cost Allocated	FY10 Proposed	% Difference FY09 to FY10
Operating Expenditures	$2,314,409	$2,314,409	$2,314,409	0.00%
Capital Expenditures	$90,724	$90,724	$2,090,724	2204.49%
Debt Service	$1,668,510	$1,668,510	$1,543,478	-7.49%
Total Expenditures	$4,073,643	$4,073,643	$5,948,611	46.03%

Significant Issues

1) Funds 2^nd year of Energy Initiative Loan payment of $90,724

2) Maintains Operating Expenditures at FY09 levels

3) Major investment in community college renovations and repairs

4) Debt Service includes $44,500 debt service for $2,000,000 renovation and repair project.

A number of projects were included in the expansion request, some of which will be addressed with the $2,000,000 funded for renovations and repairs. Requested $686,050

Dr. Molly Parkhill, of Blue Ridge Community College stated that $20,000 will be left at the end of this year to be carried over making the FY09 Cost Allocation $2,334,409, and will be used to cover operating expenses which includes Utilities, Security, Repairs & supplies, as well as the salary for the custodial staff. She noted that the estimates on the Technology Education Development Center, which opened in August, 2008, were pretty much what they had anticipated. The $2 million for renovations and repairs will focus on the roof replacement or restoration in the Spearman Building, as well as replacing some the HVAC equipment to help with some of their energy efficiencies, along with window and lighting replacement. Safety & ADA compliance projects at the Flat Rock campus will be addressed and the parking lot resurfaced. BRCC will be looking at an audit completion just received the prior day to make sure that their recommendations are consistent with what has been proposed.

Finance Director Carey McLelland explained that the projects discussed at the last Board meeting for BRCC in the amount of $2 million are included in debt service.

Departmental Presentations

Department of Public Health – significant issues

1. $51,151 allocated IT funding includes: P&I Costs, Enterprise Costs, Computer Repair Costs

2. $599,295 allocated debt service funding includes: 45% of Human Services Building principal and interest.

3. $62,194 allocated Operating Expenditures include: Wellness Clinic, HR Professional Services & Advertising, Insurance/Bonding

4. $130,971 allocated Central Services includes: Furl, utilities, Contracted Service, Building Maintenance

5. $45,950 allocated personnel funding includes: Worker’s Comp, retiree medical and dental insurance for five retirees

6. Personnel reallocated per departmental request to better meet departmental needs

Health Department Director Tom Bridges spoke in regards to school nurses. The County supplemented the school nurse program with $115,904 in the current year budget. The Medicaid Fund Balance has been taken out in order to balance the budget. In the last three years the County has spent approximately $400,000 of Medicaid Fund Balance to cover the school nurse portion. There are nine nurses in place.

Chairman Moyer asked if it still the plan to transition the school nurse appropriation to the schools budget next year.

Mr. Bridges responded that it was proposed to leave it with the Health Department as it is a partnership. The Health Department works closely with the schools in many areas and also works with others in the community; Blue Ridge Health Center is looking at expanding its clinic which does not replace the need for school nurses but enhances the services available to school children at the school site. There is also an effort to expand and enhance behavioral health services.

Chairman Moyer, Commissioner McGrady and Commissioner Young all felt that this appropriation should be reflected in the school budget.

County Manager Steve Wyatt reminded the Board about the parking issue at the Human Services building.

Chairman Moyer requested that this item be added to the list of concerns to come back to.

In regards to possible cancellation of programs, Mr. Bridges stated that they have managed. He provided information about flu vaccinations and mosquito control.

Library Director Bill Snyder, Solid Waste Manager Will Sager, Lieutenant Vanessa Gilbert and Internal Auditor Darlene Burgess arrived at 8:45 a.m.

BREAK

A ten minute break was taken.

PUBLIC HEARING – on an adoption of the Triennial Update of the Henderson County Ten Year Solid Waste Management Plan

Commissioner McGrady made the motion that the Board go into public hearing. All voted in favor and the motion carried.

County Engineer Marcus Jones stated that NCGS 130-A309.09A (b) requires that each local government develop a 10-year comprehensive solid waste management plan. The statute further requires that each plan shall be updated at least every three years. He recognized Chair of the Solid Waste Advisory Committee, Stan Kumor in the audience.

Solid Waste Manager Will Sager stated that the Solid Waste Advisory Committee has reviewed the draft update and recommended its adoption. The current update incorporates the Twenty Vision for Solid Waste adopted by the Board last May. Waste reduction goals have been increased from the 5% identified in the previous version to a waste reduction goal of 20% by FY2014 and 40% by FY2019. It is noted in the plan document that work is continuing on the Solid Waste Master Plan with SWAC, a consultant, and staff. The implementation of the Master Plan and related policies will allow the county to approach the five year goal. Further reduction efforts will be explored in the second five year period. The deadline date for adoption for the Board of Commissioners and the three participating municipalities is June 30, 2009.

One plan, the update, is regulatory driven and must be adopted by Henderson County, and the municipalities of Hendersonville, Fletcher, and Laurel Park. (Mills River and Flat Rock are exempt)

The Master Plan process was initiated by the County and the plan will be presented to the Board soon after the beginning of the fiscal year. Thus, specific elements of the plan are not reflected in the update. If these elements are approved by the Board, they will be included in the next triennial cycle of the regulatory plan.

Public Input

1. Rick Burt – Mr. Burt spoke on behalf of ECO (Environmental Conservation Organization). He is a member of ECO’s recycling committee, a group of concerned citizens who meet regularly to discuss local, regional and national waste issues. On April 25, ECO provided sixteen (16) volunteers who worked over fifty (50) hours at the County’s electric recycling event. He felt that Mr. Sager was presenting the Board with a well written document that ECO believes is the best that has ever come from Henderson County since the County’s plan were first required by the state. In May of 2008 the Board of Commissioners approved a vision for change in the Solid Waste Department. In the past year, County staff has moved to put the plan into action. This is an informative document that outlines what Henderson County does now and what we hope to undertake in the next ten (10) years. It is an ambitious plan but quite doable with many of the elements already lining up. ECO supports the plan and its focus on improved efficiencies, improved service to residents, compliance with the state mandates and environmental stewardship. The two greatest opportunities lie in the improved relations with the county’s waste haulers and improved waste diversions through recycling. ECO wants to see recycling collection available countywide and collecting it by the network of existing waste haulers makes perfect sense. The plan if approved and followed has the ability to move our county from offering mediocre programs to becoming a model that other counties will want to follow and one that we can be proud of. ECO recommends that more work be done to coordinate the collection of recycling from all the municipalities in the county so that economies of scale can be reached that benefit everyone who lives here. Consistency is needed so that all citizens know how to prepare the same things and can expect consistency in recycling collections. Change will not be possible without a superior education component. In order to get the public to participate in a waste reduction plan there will have to be good incentives, as well as lots of education built into the plan. In the future ECO would like to see the County adopt a buy recycled policy for all county purchasing. It is very important to have a buy recycled component in order to create the demand needed to keep the cycle of materials moving. ECO highly supports the plan as written and hopes that areas mentioned can be added down the road. Reducing our waste is very important but it will not happen without dedicated efforts on the Board’s behalf.

Commissioner McGrady made the motion that the Board go out of public hearing. All voted in favor and the motion carried.

Commissioner McGrady made the motion that the Board adopts the Triennial Update to the Henderson County Solid Waste Management Plan. All voted in favor and the motion carried.

Public Schools Presentation

Henderson County Public Schools – significant issues

1. Maintains Operating Expenditures at FY09 levels

2. Major investment in school renovations and repairs

3. Debt Service includes $244,700 Debt Service for $3000,000 Apple Valley/North Henderson High and renovations and repairs projects

Chairman of the School Board Ervin Bazzle stated that this has been an odd year, not just because of the economic conditions that all of us face both locally, state and federal, it intermingled with our normal budget has been some talk of federal stimulus money which prompted meetings between the two boards to discuss projects that maybe funded and the Board of Commissioners taking an active role at looking at the backlog of both building projects as well as maintenance of the schools. When the School Board presented their budget to the Board of Commissioners (BOC), they were extremely aware of the dire situation that both the state and national governments face as well as what their projections were locally. The School Board heeded the response from the BOC that they keep their budget request at zero balance or zero increase with the exception of two things. Mr. Bazzle discussed the capital outlay budget and how it impacts the $3 million that was appropriated by the BOC in order to try to develop a scenario of where the School Board is now. When the School Board presented their budget to the BOC they went back to the baseline of the current expense at $20,205,922. This is also the number proposed by the County Manager to the BOC. This is no increase but it does contain un-controllable items. Un-controllable items are things that they have no control over and are dictated by the state or by utility and cost increase. They put a number on the original proposal of $359,943.00. The bulk of this had to do with what they are projecting and what VPI was projecting as step increases and salary increases coming from the state. Given what has come out of the state in the last two and a half months he feels that we can safely assume that there will be no salary increase or step increase and there may be further reduction in that regards. A bulk of the $359 thousand goes away. Certain matching funds that they are required by employers for hospitalization, retirement and increase in utility cost do not go away. The School Board amended their request to reduce the amount they are asking as un-controllable to $187,017.00. Mr. Bazzle explained that approximately $73,000 comes from the matching amount for hospitalization, almost $42,000 is for the funds that must go into retirement, and utility cost based on Duke Energy projections is a little over $71,000.00. Looking at their budget, Mr. Bazzle noted that they have already absorbed over $200,000 from loss of revenue from their budget. The state has already taken back from them this year over $800,000 which does not include the ADM money or the lottery money that was frozen. If they have to absorb the $187,017.00 in addition to the $200,000 they have already absorbed, they will have absorbed almost $400,000.00. They are looking at a shortfall in nutrition in excess of $150,000. Nutrition and Childcare are enterprise funds. They are required to turn a profit and this is not possible on the amount that is charged for the services.

Chairman Moyer asked Chairman Bazzle to provide the Board of Commissioners with replacement pages with the changes discussed.

Chairman Bazzle stated that the School Board’s budget for capital outlay is made up of two parts; capital projects that are not huge projects, and maintenance projects, repairs and purchases. These projects are hard to follow. When the bond referendum failed in the 90’s the two Boards met and an agreement was met that instead of using their ADM money for projects such as on the ten year list, it would be used for debt service with the understanding that the BOC would replace dollar for dollar those ADM funds. At that time the School Boards maintenance and capital project outlay budget was about $1 million and was not enough. The BOC increased it and it has been roughly about $2 million since that time. There are different projects addressed in the backlog; not just the roof on West Henderson; it may be that we have ten year old carpet that is a health risk at some schools, purchase and replacement of vehicles, or maintenance staff for school buses. The Board of Education met two days prior because certain issues were brought up regarding additional funds that may be needed at Apple Valley/North Henderson and also to clarify the list of what they felt needed to be done. A list of the items was provided both for facility projects and repairs with 10 year life and shorter term to the Board of Commissioners prioritized by the Board of Education. He has received indication that these funds will not become available unless the state releases their ADM money and are locked or frozen. He referred back to the agreement with the BOC in regards to ADM funds. Mr. Bazzle stated that the issue is that there is about $345,000 worth of projects that need to be done. He asked, and recommended by the School Board, that the BOC appropriate an additional $345,000 to cover these items. Mr. Bazzle stated that the proposal that the School Board had made was their regular budget of $2.25 million plus $1,061,000 be phased in over four years. In February, during the Joint Facilities meeting, the School Board proposed certain projects with their architects. Apple Valley North was one at $11 million; $8 million for the school and $3 million projected for redoing the piping at Apple Valley North and upgrading the heating system. When the addition is built at Apple Valley North it has to be integrated to carry the entire system. Since 1993 when those schools were built they have had problems with underground leaks in the pipe. It is copper and when it was put underground part of it is under the slab and up until this spring no leaks had been detected. The School has sufficient funds to repair the leaks but does not have sufficient funds to fix it. The piping needs to be taken out from under the building and replaced with a different type of pipe for the entire Apple Valley system and integrated with the new construction with an estimated cost of $1.5 million. Mr. Bazzle proposed that this be bid as an alternate with the construction at Apple Valley North because it is part of the construction and the bid that is received will be accurate. The hope is to be able to continue using the heating units that are currently in both schools. There are two alternatives, it can be put as part of the construction project and deal with the cost as it comes by placing $1.5 million in the construction cost or whatever the number is that comes in, it comes off the list.

Chairman Moyer understood in respect to the waterlines the benefit of bidding at the same time as construction to get good bids, but as far as managing construction; the addition at North and Apple Valley Middle, he questioned if it would be more efficient and effective to do it as part of the same construction project.

Mr. Bazzle responded that he felt it would, especially with the integration of the two systems.

Chairman Moyer stated that this issue would be added to the running list of issues that the Board would revisit.

Commissioner McGrady questioned if there were significant changes either to the projects or cost of projects from the lists received in the past and the current list provided at this meeting from the Board of Education.

Chairman Bazzle stated that the only difference was that they had been broken out.

Commissioner Williams was confused as the numbers have moved around so much. He made further inquiries of the lists.

Bo Caldwell explained that when the Board of Commissioners received their capital budget notebook there were projects that had been documented from Joint Facilities Committee meetings years past and were included on the list in front of them. When Mr. Caldwell and Dr. Page were directed to come up with a $6.5 million budget, they were told at that time to take all the FF&E (not 10 year life) off of the list. That is why the $6.5 list is different from what is in the notebook. This is also the same time that they received word that the budget would be $8 million and $1.5 million had to be addressed during construction time. When the two ($1.5 & $6.5) were combined it knocked off a lot of projects that were in the budget to begin with.

Commissioner McGrady echoed that the lists are consistent, putting aside the track issue, and only difference relates to the pulling out of projects that are not of a capital nature. If these projects were added back the result would be Exhibit A & B.

Commissioner Williams questioned if the $1.5 million was a one-time expense.

Mr. Caldwell explained that an engineer had looked at the project, designed a schematic of the project and gave them a price estimate of $1.5 million to replace the pipes at both Apple Valley and North Henderson. They also received an estimate of $1.5 million to replace the room units. At this time the room units are really not giving us an issue.

Commissioner Williams asked if the other $1.5 million would at some point come into play.

Mr. Caldwell explained that the units are at this time running fine and there is no indication that they are going to begin failing soon.

Chairman Moyer stated that the $1.5 million to fix the piping problem is not a band-aid or partial fix. This if bid right will do the job correctly and will be done for the foreseeable future.

County Manager Steve Wyatt wished to clarify if the original budget for Apple Valley North was $11 million.

Chairman Bazzle responded this is correct.

Mr. Wyatt questioned if the $1.5 million for the piping issue was included in the $11 million.

Chairman Bazzle responded it was in the $3 million line along with the heating units.

Mr. Wyatt stated that Jimmy Wilhide (Moseley Architects) had told him that the $1.5 million for the piping was not included in the $11 million.

Mr. Bazzle and Chairman Moyer both felt that the $1.5 million was included in the $3 million for the piping.

Mr. Wyatt would revisit this again with Moseley Architects.

Commissioner Williams addressed the track issue and felt it should become more of a priority since there had been reports of injuries, loss of use for track meets and Physical Education.

The School Board did not feel that this was a priority but would take another look at the safety issue.

Chairman Bazzle noted that the money for the North and West tracks were privately raised.

Chairman Moyer stated for clarification, the $449,889 that County Manager Steve Wyatt had requested that the Board consider freezing was just until the ADM issue is resolved. This is an item the Board will have to come back to and either support or change.

BREAK

A ten minute break was taken to change video tapes.

Departmental Presentations continued

Sheriff’s Department – significant issues

1. $41,640 allocated to the Sheriff’s Department for Rental of Property: McCallister Building and parking lot behind building

2. 12 Dodge Chargers and 1 Ford F250 included in FY10 proposed budget

3. Staffing levels reductions include: 1 position Riffed 11/08, elimination of 1 frozen DSS security position and one additional position to be reallocated to 2 uniformed officer (gang prevention) positions.

4. $246,563 allocated debt service funding includes: $124,433 E911 Center funding and $122,130 vehicle debt service.

5. $172,292 allocated personnel funding includes: Worker’s Comp, retiree medical and dental insurance for nine retirees.

6. $565,759 allocated Central Services includes: Fuel, Utilities, Contracted Service, Building Maintenance.

7. $200,426 allocated Operating Expenditures include: Wellness Clinic, HR Professional Services & Advertising, Insurance/Bonding.

8. $493,583 allocated IT funding includes: Enterprise Costs, Computer Repair Costs, replacement servers, computer replacements, SQL and MS server licenses, Visionair licenses, server installation services, Mobile Law, AVL and FBR licenses, Geocomm Mobile Lynx, and printers for CID, SPC DCI software and service fees, AccessData renewal, Sirchie, Comphotofit and forensic software licenses.

9. 5 New Officers have been requested under a COPS grant. Total expenses if this grant is approved equal $490,428. Staff proposes not including this request in the budget at this time, but bringing it back to the Board if the grant is approved.

10. Proposed budget includes $330,000 transfer to the Capital Project Fund for fees associated with a Law Enforcement Center.

Sheriff Rick Davis noted that during the Illegal Immigrations Steering Committee meeting yesterday one item being lobbied for is a permanent fugitive unit here in Henderson County. The unit would be based in Henderson County and working all of Western North Carolina. As of the meeting yesterday there is nine (9) man criminal apprehension team being assigned to Henderson County. This is a major victory. There is a possibility that we may have to provide office space which they will rent from us.

This year to make ends meet we have riffed anther position, the staff attorney. The Governor’s office was not going to fund our gang unit again this year. The unit is very active and needed so we “robbed Peter to pay Paul” this year and the gang unit is on board for good. Some of the legal services will be subcontracted out and the bulk will be handled by Associate County Attorney Sarah Zambon.

The 911 Center is now complete.

The Federal Government is requiring us to switch to the digital venue for our radios and this will be carried on our budget for the next two years. We have gone from eight mobile data terminals two years ago to units have MDT. This project should finish out this budget cycle.

Bullets and bullets proof vest costs have increased due to the war.

Although the School Board has not got back to the Sheriff’s Office, they have indicated they wish to cut back substantially on revenues for SRO’s. The Sheriff’s Department is funding three of their deputies out of pocket. The amount funded by the schools in previous years has remained consistent at $220,000 since the inception of SRO’s back in 1995.

County Manager Steve Wyatt stated that a line item was not present in the school budget specific to SRO’s. It is probably in with other items such as contracted services.

Chairman Moyer felt this was important and should be verified.

Sheriff Davis stated that the School Board indicated they would not know until their budget was approved.

The last issue discussed was the E911 cable. Auxiliary Business Manager Bill Blalock noted when the E911 Center was built two fiber optic were ran; one up First Avenue and one up Second Avenue to provide redundancy and protection. The communication goes from the 911 Center to the transfer and receiver room on the third floor of the Historic Courthouse. One of the routes was destroyed by a contractor up approximately two years ago leaving one route. This fiber needs to be repaired or replaced to protect transmit or receive capability. The good cable is a fiber optic cable and is capable to carry the capacity.

Sheriff Davis provided information in regards to vehicles over 65,000 miles as of May 1, 2009.

SH# Vehicle Description Current Odometer Est. if replaced FY10

1) 106 99 Ford CV 69,880 76,868

(SH#...anything with a 1 series # is unmarked vehicles that are assigned to criminal investigations division)

2) 221 06 Chev. Impala 96,254 128,338

3) 261 06 Chev. Impala 78,027 104,036

4) 219 06 Chev. Impala 77,279 103,038

5) 207 05 Chev. Impala 76,930 96,162

6) 201 02 Chev. Impala 75,935 86,782

7) 257 06 Chev. Impala 75,523 100,697

8) 225 06 Chev. Impala 74,069 98,758

9) 216 06 Chev. Impala 71,422 95,229

10) 218 06 Chev. Impala 70,533 94,044

11) 226 06 Chev. Impala 70,041 93,388

12) 255 06 Chev. Impala 66,338 88,450

13) 138 06 Chev. Trailblazer 66,235 88,313

(SH#...anything with a 2 series # is patrol…item 13 was pirated from criminal investigations and marked up to use on patrol due to shortage in vehicles)

14) 348 04 Dodge Ram 2500, (AE) 77,251 92,701

15) 305 04 Dodge Ram, (AE)* 74,222 89,066

16) 304 04 Dodge Ram, (AE)* 66,491 79,789

17) 388 05 Dodge Durango 66,381 82,976

18) 338 05 Dodge Durango 65,010 80,138

(SH#...anything with a 3 series is trucks and SUV’s)

19) 519 02 Chevrolet Impala 80,257 91,722

20) 518 06 Dodge Caravan 65,891 87,854

(SH3…anything with a 5 series is detention)

#1 - The 99 Ford Crown Victoria is assigned to criminal investigations is used by some of the volunteer or part-time people who do criminal investigations and it is not an issue for the mileage to be a little high.

#14, 15 & 16 - #14 is the only vehicle capable of pulling the horse trailer used for animal enforcement to remove livestock from roadways (The highest maintenance in fleet and needs to be replaced) #15 &16 have already been replaced with the last vehicles that came in.

#19 & #20 – These vehicles are assigned to the detention center and they are used from transport. High mileage is not a big issue.

#2 through #13 – and the one truck should be replaced. These are still on patrol.

*Shall be replaced within 60 days

- Grants, drug seizure money, 65,000 mile plan and approval of requested vehicles has improved outlook for projected 3^rd year gap after cutback of nine vehicles I FY09

- Sharp increase in maintenance & repair costs

- Vehicles with higher mileage are being transferred to detention, transport, schools, etc.

- SUBs are assigned to primarily static duties

- Benefits of strict equipment standardization will start FY11

- SUVs * trucks cut from 47 down to 28 – Goal is 10 marked

- Helicopter transferred to Brunswick County

Mr. Blalock explained the fingerprint system included in the budget. There are two fingerprinting systems. In 1995 a system known as AFIS was implemented throughout the U.S. which makes it uniform now that all law enforcement agencies can input data into the system and it will search for fingerprints. At that time we bought two pieces of equipment. The equipment on the front end is known as Live Scan where you put your hand on a glass plate and it is read biometrically and then converts the data to AFIS. We have a system at the Sheriff’s office that is used for everything from children and school teacher fingerprinting to concealed carry permits, etc. One of the systems asked for on a grant, which it appears we will get, will upgrade to also handle palm prints and latent finger prints from actual crime scenes. This takes care of one of our systems. In addition the Sheriff’s Department if trying to fund the system at the jail. The problem is that the equipment purchased in 1995 was bought was a manufacturer which has been bought out by several manufacturers. The company which now owns the equipment is in the process of deciding whether or not they will continue to support the Live Scan equipment. The grant for the first system requires a match which is being matched out of North Carolina Drug Excise Funds.

Chairman Moyer asked where the ICE money shows up in the budget.

Sheriff Davis responded that it is shown as capital in the Enterprise Fund.

Assistant County Manager Selena Coffey stated that it is not in the General Fund budget, it is in Fund #38.

Chairman Moyer stated the proposed revenues and expenditures are showing as a wash. Since this is an enterprise fund, if it comes in higher or lower he questioned what would happen.

Finance Director Carey McLelland explained if it came in higher and the funds are not utilized it stays in fund balance within that fund. It is his understanding that the Sheriff has plans for excess revenue associated with that fund.

Chairman Moyer felt this was an issue and questioned who would be authorized to transfer out of the enterprise fund.

County Manager Steve Wyatt responded that as an enterprise fund and only the Board could authorize the transfer. If it comes in higher and the Sheriff wanted to ask for a budget amendment then he would have to ask for a budget amendment. If it comes in lower the expenditures are offset by that same amount. If they don’t make revenue then the money is not spent. We have a three month cushion upfront to stay ahead of it.

Ms. Coffey reminded the Board that initially an allocation was made of $25,000 and has not been spent and is being used as a contingency.

Department of Social Services – significant issues

1. $652,564 allocated debt service funding includes: 49% of Human Services Building principal and interest

2. Reallocates one position from Youth Programs, proposes reduction of 2 positions, Volunteer Services and Computer Tech which are currently vacant

3. $282,648 allocated personnel funding includes: Wellness Clinic, HR Professional Services & Advertising, Insurance/Bonding

4. $149,367 allocated personnel funding includes: Worker’s Comp., retiree medical and dental insurance for eleven retirees.

5. $155,541 allocated Central Services includes: Utilities, Contracted Service, Building Maintenance

6. Indirect Cost of $2.1 million has been removed from the FY2010 DSS budget due to the new direct cost allocation method. Reduction affects both DSS-Administration Expenditures and DSS-Federal and State Program Revenues.

Social Services Director Liston Smith stated his department is dealing with three new mandates along with the increased level of service. He requested that the Board unfreeze the staff positions that he currently has and provide the funding as they did with last year’s budget. In the County Managers proposal two positions would be cut. Mr. Smith requested that these two position not be cut and replace the $40,000 that basically pays for the positions. Over the last year realignment has already begun. The Group home program was downsized by two positions. Those positions were not cut, they were frozen. The IT Department was downsized and a position frozen. Of the seven positions frozen, Mr. Smith asked that 4.2 of them be unfrozen and be reassigned to a Medicaid/Food Nutrition program. He also requested that the position of Child Support Enforcement Agent be unfrozen.

Chairman Moyer stated that there are two positions that were not included in the budget. He questioned Mr. Smith asking if he felt these two positions were important to add back into the budget. (Mr. Smith responded yes). These two positions would be added to the list of considerations. There are five positions included in the budget currently frozen that Chairman Moyer understood would be approved positions with budget adoption.

Steve Wyatt confirmed that 4.2 positions are funded in the budget but frozen at this time.

Commissioner McGrady stated that various positions are currently frozen but that are now being put in the budget to be funded. A decision would need to be made as to how they will be treated. He felt that if we adopt a budget where we are funding positions, we are unfreezing these positions. We can freeze positions that open up after that if necessary.

Chairman Moyer asked if the request was to unfreeze the positions immediately.

David Adams responded yes as they are falling behind in case loads. They are 30% over the levels suggested by the state.

Chairman Moyer asked Steve Wyatt or Selena Coffey for clarification. Reference had been made that the frozen positions are in the budget and he questioned if they were still in the budget after the $1.4 million revision.

Ms. Coffey responded that they were removed from the current year budget.

Chairman Moyer stated that if the positions were unfroze at this time they would have to be funded from somewhere.

Ms. Coffey responded that the hiring process would probably take until after July 1, 2009 at this point and we would still see some savings this year.

Chairman Moyer noted that of the seven (7) positions that have been requested to be unfrozen, only five (5) have been included in the budget going forward. He felt it made since to go ahead and unfreeze five (5) positions and move forward with the budget. If the budget is adopted as submitted there will be no change moving forward. He agreed with Commissioner McGrady that any position included in the budget but frozen should automatically become unfrozen effective July 1, 2009.

Commissioner McGrady made the motion that the Board removes the freeze from the five (5) positions for this budget year as requested by the Department of Social Services and follow to see if any budget amendments are necessary. All voted in favor and the motion carried.

The Board suspects that the next year budget will approve the five (5) positions and the additional two (2) positions will be discussed during budget wrap-up and whether they will be added back and what will be done for the remainder of the current year.

Chairman Moyer directed the County Manager to follow up with Liston Smith because at some point after the individuals are hired to determine the proper budget amendment and adjust their budget.

BREAK

A five minute break was taken in order to change video tapes.

Departmental Presentations continued

Assistant County Manager Selena Coffey covered significant issues for the remaining departments. Vacant positions will remain frozen within these departments unless they have been cut. There are no pay increases in this budget.

Chairman Moyer felt that once the budget was approved any frozen positions in which funding was included in the budget would be considered unfroze.

Commissioner Williams requested a list of all frozen positions in which funding was included in the budget.

Dues and Non-Profits

Expenditures by Category		FY 09 Budget	FY 10 Request	FY 10 Proposed
Dues and Memberships
	Land of Sky Regional Council	$41,645	$41,645	$41,645
	NC Assoc of County Commissioners	$12,695	$11,425	$11,425
	National Institute of Counties	$7,050	$7,050	$7,050
	Institute of Government	$9,850	$10,872	$10,872
	Local Government Transit Match	$12,500	$12,500	$12,500
	Land of Sky Regional Council MPO Match	$0	$22,219	$22,219
	SUB-TOTAL	$83,740	$105,711	$105,711
Non-Profits
	Alliance for Human Services	$9,000	$10,000	$9,000
	Arts Council of Henderson County	$10,000	$12,000	$10,000
	Children and Family Resource Center - United Agenda for Children	$10,000	$0	$0
	ECO/VWIN	$9,000	$9,000	$9,000
	Hands On!-A Child's Gallery (New)	$0	$10,000	$0
	Lead Poisoning Prevention Program (New)	$0	$24,970	$0
	WCCA Grant Match	$38,999	$44,293	$44,293
	WCCA: Medical Transportation	$12,000	$12,000	$12,000
	SUB-TOTAL	$88,999	$122,263	$84,293
Alliance Accredited Agencies		Alliance Recommendation
	Blue Ridge Literacy Council	$14,300	$14,300	$14,300
	Boys and Girls Club	$11,350	$11,350	$11,350
	Children and Family Resource Center	$18,750	$18,750	$18,750
	Council on Aging	$39,000	$39,000	$39,000
	Dispute Settlement Center	$11,350	$11,350	$11,350
	Housing Assistance Corporation	$12,700	$12,700	$12,700
	Interfaith Assistance Ministry - Medifind	$23,400	$0	$0
	Mainstay	$10,700	$10,700	$10,700
	Medical Loan Closet (New)	$0	$1,000	$1,000
	Partnership for Health	$1,000	$1,000	$1,000
	Pisgah Legal Services	$18,750	$17,750	$17,750
	The Healing Place	$2,500	$2,500	$2,500
	The Free Clinics - Volunteer Program	$5,000	$5,000	$5,000
	The Free Clinics - Medifind	$0	$23,400	$23,400
	United Way 211 Program	$13,200	$13,200	$13,200
	Vocational Solutions	$45,000	$45,000	$45,000
	SUB-TOTAL	$227,000	$227,000	$227,000
Total Expenditures		$399,739	$454,974	$417,004
SIGNIFICANT ISSUES
1	NCACC approved a 10% reduction in rates charged for FY 10
2	No increase recommended for Alliance Accredited Agencies for FY 10
3	Land-of-Sky Regional Council MPO funding included in Dues & Non-Profits, previously paid out of Non-Departmental
EXPANSION BUDGET REQUESTS
			$ Request	TRE
1	$10,000 was requested by Hands On!-A Child's Gallery. No funding ($0) proposed.		$10,000	$0.008
2	$24,970 requested by the Lead Poisoning Prevention Program, a UNCA program promoting lead-safe environments for residents in Buncombe and Henderson County through public education, home inspections and trainings. No funding ($0) proposed.		$24,970	$0.020
3	Alliance For Human Services requested $10,000 - proposal is for $9,000		$1,000	$0.001
4	Arts Council of Henderson County requested $12,000 - proposal is for $10,000		$2,000	$0.002

General Government

GOVERNMENT BODY – SIGNIFICANT ISSUES

1. $20,600 allocated to Governing Body from Non-Departmental for annual audit, professional services and volunteer banquet

2. $9,000 Rental of Real Property allocated to Governing Body

3. $9,519 allocated personnel funding includes: Workers Comp. retiree medical and dental insurance for one retiree

4. $64,303 allocated Central Services included: Utilities, Contracted Service, Building Maintenance

5. $3,126 allocated IT funding includes: Enterprise Costs, Computer Repair Costs

6. $793,572 allocated debt service funding includes: 92% of Historic Courthouse principal and interest

7. FY10 budget proposes a personnel reduction of 1 FTE

8. $10,572 allocated Operating Expenditures include: Wellness Clinic, HR Professional Services & Advertising, Insurance/Bonding

COUNTY MANAGER’S OFFICE – SIGNIFICANT ISSUES

1. Includes funding for vacant Administrative position

2. $1,355 allocated IT funding includes: P&I Costs, Enterprise Costs, Computer Repair Costs

3. $25,878 allocated debt service funding includes: 3% of Historic Courthouse principal and interest

4. $16,938 allocated personnel funding includes: Worker’s Comp, retiree medical and dental insurance for two retirees

5. $2,552 allocated Central Services includes: Utilities, Contracted Service, Building Maintenance

6. $34,663 allocated Operating Expenditures include: Wellness Clinic, HR Professional Services & Advertising, Insurance/Bonding

Administrative Services – sIGNIFICANT ISSUES

1. $1,807 allocated IT funding includes: P&I Costs, Enterprise Costs, Computer Repair Costs

2. $17,250 allocated debt service funding includes: 2% of Historic Courthouse principal and interest.

3. Includes full year funding for vacant PIO Position, but delays hiring permanent employee, utilizing a student intern

4. $875 allocated personnel funding includes: Worker's Comp

5. $2,552 allocated Central Services includes: Utilities, Contracted Service, Building maintenance.

6. $6,126 allocated Operating Expenditures include: Wellness Clinic, HR Professional Services & Advertising, Insurance/Bonding

Human Resources – significant issues

1. Reallocates the Risk Manager position from Risk Management Fund

2. Includes funding for vacant Benefits Coordinator Position, and includes funding for 2^nd half-time temporary returning retiree to job share the function of a temporary.

3. $2,620 allocated IT funding includes: Enterprise Costs, Computer Repair Costs

4. $9,519 allocated personnel funding includes: Worker’s Comp. retiree medical and dental insurance for one retiree

5. $12,838 allocated Central Services includes: Utilities, Contracted Service, Building Maintenance

6. Funding for drug screens, new employee advertising, background checks, FSA Health and Dental, COBRA EAP costs allocated out to departments

7. $7,608 allocated Operating Expenditures include: Wellness Clinic, HR Professional Services & Advertising, Insurance/Bonding

Elections – sIGNIFICANT ISSUES

1. $72,000 Rental of Real Property allocated to Elections

2. FY10 anticipates 5 municipal elections, 3 possible primaries, federal, state & county elections in May, and 1 possible runoff

3. Debt service on voting machines paid in full in FY09

4. $14,544 allocated IT funding includes: Ivo Printers, Network Printer, Scanner, GIS Costs, Enterprise Costs, Computer Repair Costs ($22,674 total funding equals $14,544 IT allocation + $8,230 Departmental funding)

5. $2,100 allocated personnel funding includes: Worker's Comp

6. $7,608 allocated Operating Expenditures include: Wellness Clinic, HR Professional Services & Advertising, Insurance/Bonding

7. $7,608 allocated Operating Expenditures include: Wellness Clinic, HR Professional Services & Advertising, Insurance/Bonding

8. $16,268 allocated Central Services includes: Utilities, Contracted Service, Building Maintenance

Legal – SIGNIFICANT ISSUES

1. $6,338 allocated IT funding includes: Software Upgrades, Enterprise Costs, Computer Repair Costs

2. $25,878 allocated debt service funding includes: 3% of Historic Courthouse principal and interest

3. $1,225 allocated personnel funding includes: Worker's Comp

4. $4,124 allocated Central Services includes: Utilities, Contracted Service, Building Maintenance

5. $10,571 allocated Operating Expenditures include: Wellness Clinic, HR Professional Services & Advertising, Insurance/Bonding

Register of Deeds – SIGNIFICANT ISSUES

1. $43,489 allocated IT funding includes: SAN/Unitrends upgrade for scanning, Enterprise Costs, Computer Repair Costs

2. Allocated Central Services funding includes $1,000 funding for carpet replacement at 1995 Courthouse

3. $15,915 allocated personnel funding includes: Worker's Comp, retiree medical and dental insurance for two retirees

4. $42,137 allocated Central Services includes: Utilities, Contracted Service, Building Maintenance

5. FY 10 proposes elimination of one position and one Part-Time temporary position

6. Large reduction in Operating Expenditures corresponds to decrease in revenue. 48% of Excise Tax paid to the State.

7. $10,371 allocated Operating Expenditures include: Wellness Clinic, HR Professional Services & Advertising, Insurance/Bonding

central Services – SIGNIFICANT ISSUES

1. $2,235 allocated IT funding includes: Enterprise Costs, Computer Repair Costs

2. Four Parks Maintenance positions were allocated from Central Services to Recreation in FY09.

3. $10,744 allocated personnel funding includes: Worker's Comp, retiree medical and dental insurance for one retiree

4. $1,398,195 allocated from Central Services to Departments includes: Utilities, Contracted Service, Building Maintenance

5. $19,462 allocated Operating Expenditures include: Wellness Clinic, HR Professional Services & Advertising, Insurance/Bonding

6. $55,306 allocated Central Services includes: Fuel, Utilities, Contracted Service, Building Maintenance

7. Includes $35,000 funding for demolition of old water department building

Garage – SIGNIFICANT ISSUES

1. Includes funding for one frozen Vehicle Mechanic position

2. $875 allocated personnel funding includes: Worker's Comp

3. $7,408 allocated Operating Expenditures include: Wellness Clinic, HR Professional Services & Advertising, Insurance/Bonding

4. $44,701 allocated Central Services includes: Fuel, Utilities, Contracted Service, Building Maintenance

5. $850,000 fuel costs, gas and diesel, allocated out to Departments

Court Facilities

No significant issues in FY10. No increase recommended over FY09 funding levels.

information technology – significant issues

1. $4,505 allocated IT funding includes: Enterprise Costs, GIS Costs, Computer Repair Costs

2. Proposed allocation of a currently vacant/frozen position from IT to Wellness Clinic

3. $17,000 FY09 revenue was from a one-time orthophotography grant

4. $1,575 allocated personnel funding includes: Worker's Comp

5. $472,952 funding for IT Services allocated out to departments: Contracted and Professional Services, Non-Expandable Technology, Computer Software Maintenance Agreements

6. $29,778 allocated Central Services includes: Fuel, Cleaning & Janatorial, Utilities, Contracted Service, Building Maintenance

7. Allocated Central Services funding includes $1,000 funding for carpet replacement at 1995 Courthouse

8. $12,054 allocated Operating Expenditures include: Wellness Clinic, HR Professional Services & Advertising, Insurance/Bonding

Chairman Moyer questioned, under expansion, backup power for the Courthouse. He thought this had been resolved.

Marcus Jones stated that the project, as we moved to the design stage, identified that the scope of the work to rewire and configure the existing facilities backup power were not adequate. The scope of the project will need to be expanded to include a new generator. At this time we have some backup but it is not adequate. We are going to bid the project this month however we phased the project to where we can do part of the project with current existing funding and the additional work would be a bid option.

County Manager Steve Wyatt stated there is money is this year’s budget ($300,000 appropriated by the Board) which we felt would handle the job. The cost of the job is now at $450,000 because of the new generator. This is an estimate. He feels we should move forward then go to bid to see where or if we are short of the $300,000, then bring back a plan to the Board.

Wellness Clinic – significant issues

1. Proposed allocation of 1 position from IT to Wellness Clinic

2. $591 allocated IT funding includes: Enterprise Costs

3. Allocated Central Services funding includes $3,500 funding for HVAC Replacement

4. $350 allocated personnel funding includes: Worker's Comp

5. $8,713 allocated Central Services includes: Utilities, Contracted Service, Building Maintenance

6. Allocated Central Services funding includes $250 funding for roof resurfacing at 100 North King Street

7. $2,257 allocated Operating Expenditures include: HR Professional Services & Advertising, Insurance/Bonding

Debt Service

All debt service has been allocated out to the Henderson County Public Schools, BRCC and County Departments for FY 2010.

Non-Departmental – significant issues

1. $25,000 included in Professional Services for 2010 Census costs

2. $110,000 included for Worker's Compensation - to be distributed as needed throughout the fiscal year.

3. $75,000 included for Unemployment Claims - to be distributed as needed throughout the fiscal year.

4. FY09 Personnel Expenditures allocated to departments for Retiree Health and Dental Insurance.

5. FY09 Operating Expenditures allocated as used to Recreation, Governing Body, County Manager and Administrative Services.

Transfers

1. $772,677 transfer to Capital Reserve Fund represents difference in debt service funding level requirement

2. FY 09 and FY10 Cost Allocation in Transit Fund includes $84,294 in fuel

3. All funds previously budgeted in the Capital Project Fund have been allocated to departments

4. $164,364 Transfer to Debt Service Fund for School QZAB funding included with HCPS FY10 Proposed funding and is not included in the Total Expenditure figure. Funding remains budgeted in 115980 as shown in the line item detail under 2010 Staff Rec. but is included on the Public Schools summary sheet.

5. All funds previously budgeted in the Self Insurance Fund have been allocated to departments

6. Revenues come from transfers in from Travel and Tourism to pay for indirect costs. FY09 included funding for the debt service payment on the Travel and Tourism building project, which is allocated directly to T&T for FY10

Taxation and Finance

Finance – significant issues

1. $10,044 allocated personnel funding includes: Worker's Comp, retiree medical and dental insurance for one retiree

2. $89,486 allocated IT funding includes: Enterprise Costs, Munis and Ortivus (EMS billing) software

3. $13,535 allocated Operating Expenditures include: Wellness Clinic, HR Professional Services & Advertising, Insurance/Bonding

4. $15,876 allocated Central Services includes: Utilities, Contracted Service, Building Maintenance

5. Revenue source is a transfer from the Cane Creek Sewer District to fund the Sewer Billing Clerk

The Tax Offices were not covered during the meeting. Information listed was included in the budget proposal.

Assessor – significant issues

1. Continued funding included for ISNC (formerly Pictometry) including funding for Change Findr' and Compressed Library

2. $41,623 allocated IT funding: 2 SCSI Hard Drives, CAMA/LR Replacement Server, P&I Costs, GIS Costs, Enterprise Costs, Computer Repair Costs

3. Eliminates funding for one vacant position

4. $3,500 allocated personnel funding includes: Worker's Comp

5. $24,883 allocated Central Services includes: Fuel, Utilities, Contracted Service, Building Maintenance

6. Allocated Central Services funding includes $1,000 funding for carpet replacement at 1995 Courthouse

7. $25,388 allocated Operating Expenditures include: Wellness Clinic, HR Professional Services & Advertising, Insurance/Bonding

Tax Collector – significant issues

1. $10,000 in personnel funding of Overtime Costs included in proposed budget

2. $5,473 allocated IT funding includes: P&I Costs, Enterprise Costs, Computer Repair Costs

3. FY10 budget proposes a personnel reduction of the Tax Collector position

4. Allocated Central Services funding includes $1,000 funding for carpet replacement at 1995 Courthouse

5. $18,338 allocated personnel funding includes: Worker's Comp, retiree medical and dental insurance for two retirees

6. $34,128 allocated Central Services includes: Utilities, Contracted Service, Building Maintenance

7. $15,216 allocated Operating Expenditures include: Wellness Clinic, HR Professional Services & Advertising, Insurance/Bonding

Public Safety

Detention Facility – significant issues

1. $668,607 allocated debt service funding includes: 100% of new detention center

2. $77,047 allocated Operating Expenditures include: Wellness Clinic, HR Professional Services & Advertising, Insurance/Bonding

3. $28,577 allocated personnel funding includes: Worker's Comp

4. $165,309 allocated Central Services includes: Utilities, Contracted Service, Building Maintenance

Emergency Management– significant issues

1. $292,666 in FY09 Operating Expenditures reflects a one-time Homeland Security Grant for hospital project and equipment.

2. $2,042 allocated IT funding includes: P&I Costs, Enterprise Costs, Computer Repair Costs

3. Allocated Central Services funding includes $250 funding for roof resurfacing at 100 North King Street

4. $3,163 allocated Operating Expenditures include: Wellness Clinic, HR Professional Services & Advertising, Insurance/Bonding

5. $6,571 allocated personnel funding includes: Worker's Comp, retiree medical and dental insurance for one retiree

6. $3,181 allocated Central Services includes: Utilities, Contracted Service, Building Maintenance

Fire Services– significant issues

1. $15,220 allocated Central Services includes: Fuel, Utilities, Contracted Service, Building Maintenance

2. $2,343 allocated IT funding includes: P&I Costs, GIS Costs, Enterprise Costs, Computer Repair Costs

3. $68,240 Worker's Comp costs allocated to Fire Services in FY10 to insure volunteer fire department volunteers

4. Allocated Central Services funding includes $250 funding for roof resurfacing at 100 North King Street

5. $3,163 allocated Operating Expenditures include: Wellness Clinic, HR Professional Services & Advertising, Insurance/Bonding

Building Services – significant issues

1. Includes funding for vacant Inspection Director, proposes elimination of one vacant Inspector position

2. $12,428 allocated IT funding includes: Enterprise Costs, GIS Costs, P&I Costs, and Computer Repair Costs

3. Decrease in revenue reflects economic trends

4. $46,047 allocated personnel funding includes: Worker’s Comp., retiree medical and dental insurance for two retirees

5. $59,572 allocated Central Services includes: Fuel, utilities, Contracted Service, Building Maintenance

6. Allocated Central Services Funding includes: $1,000 funding for roof resurfacing at 100 North King Street

7. $20,943 allocated Operating Expenditures include: Wellness Clinic, HR Professional Services & Advertising, Insurance/Bonding

8. $25,125 allocated debt service funding includes: 75% of Former Health Department Building Rehabilitation

9. Includes $41,250 Transfer to Capital Projects Fund for planning fees associated with Former Health Department Renovation

Animal Services– significant issues

1. $3,426 allocated IT funding includes: Enterprise Costs, Computer Repair Costs

2. $10,571 allocated Operating Expenditures include: Wellness Clinic, HR Professional Services & Advertising, Insurance/Bonding

3. $11,725 allocated personnel funding includes: Worker’s Comp.

4. $28,638 allocated Central Services includes: Fuel, Utilities, Contracted Service, Building Maintenance

CJPP– significant issues

1. $385 allocated IT funding includes: Enterprise Costs, Computer Repair Costs

2. $531 allocated Operating Expenditures include: Wellness Clinic, HR Professional Services & Advertising, Insurance/Bonding

3. $2,547 allocated Central Services includes: Utilities, Contracted Service, Building Maintenance

Rescue Squad– significant issues

1. FY09 and FY10 cost allocations include $11,200 in fuel costs.

2. NO significant issues in FY10. No increase recommended over FY09 funding levels.

Code Enforcement– significant issues

1. $5,000 included in recommended budget for Nuisance Abatement

2. $5,950 allocated IT funding includes: P&I Costs, GIS Costs, Enterprise Costs, Computer Repair Costs

3. Decrease in revenues anticipated due to economic condition

4. Allocated Central Services funding includes: $250 funding for roof resurfacing at 100 N. King Street

5. $700 allocated personnel funding includes: Worker’s Comp.

6. $11,435 allocated Central Services includes: Fuel, Utilities, Contracted Service, Building Maintenance

7. One position and temp staff funding eliminated in FY09

8. $6,126 allocated Operating Expenditures include: Wellness Clinic, HR Professional Services & Advertising, Insurance/Bonding

Planning and Economic Development

Property Addressing– significant issues

1. $3,397 allocated funding includes: P&I Costs, Enterprise Costs, GIS Costs

2. $4,645 allocated Operating Expenditures include: Wellness Clinic, HR Professional Services & Advertising, Insurance/Bonding

3. $525 allocated personnel funding includes: Worker’s Comp

4. $3,791 allocated Central Services includes: Fuel, Utilities, Contracted Service, Building Maintenance

Soil & Water– significant issues

1. $1,685 allocated IT funding includes: GIS Costs, Computer Repair Costs

2. FY09 revenues and expenditures include two, one time grant awards: $95,000 in a State Water Resources Grant for Finley Creek and a $22,500 NC Agricultural Development & Farmland Preservation Fund Grant.

3. $8,994 allocated personnel funding includes: Worker’s Comp., retiree medical and dental insurance for one retiree.

4. $6,064 allocated Operating Expenditures include: Wellness Clinic, HR Professional Services & Advertising, Insurance/Bonding

5. $1,000 allocated Central Services includes: Fuel, Utilities, Contracted Service, Building Maintenance

Utilities– significant issues

1. Revenues shown in the Utilities budget result from a transfer from the Cane Creek Fund into the General Fund to cover personnel costs for Utilities employees, as well as the Sewer Billing Clerk in the Finance Department.

2. $1,359 allocated Operating Expenditures include: Wellness Clinic, Hr Professional Services & Advertising, Insurance/Bonding

3. $525 allocated personnel funding includes: Worker’s Comp.

Planning– significant issues

1. $9,203 allocated IT funding includes: P&I Costs, GIS Costs, Computer Repair Costs

2. $50,000 in FY09 revenue was from a one-time Clean Water Management Trust Fund Grant

3. Decrease in Planning fee revenues due to economic conditions

4. Allocated Central Services funding includes $1,000 funding for roof resurfacing at 100 North King Street

5. $1,400 allocated personnel funding includes: Worker’s Comp

6. $14,408 allocated Central Services includes: Fuel, Utilities, Contracted Service, Building Maintenance

7. FY10 budget proposes a personnel reduction of 2 FTE’s: 1 reallocated position and elimination 1 vacant position

8. Significant decrease ($61,000) in Contracted Services for FY10 with removal of one-time grant expenditures

9. $12,054 allocated Operating Expenditures include: Wellness Clinic, HR Professional Services & Advertising, Insurance/Bonding

10. $8,374 allocated debt service funding includes 75% of Old Health Department Building Rehabilitation

11. Includes $13,750 Transfer to Capital Projects Fund for planning fees associated with Former Health Department Renovation

HOME Program– significant issues

1. HOME Program funding is a direct grant pass-through from the City of Asheville for federal HOME programs. $100,000 funding was awarded to Housing Assistance Corporation by the Asheville Regional Consortium for the Mapleton Project approved by the Board on January 21, 2009.

2. $125,000 funding was also awarded to Henderson County Habitat for Humanity by the Asheville Regional Housing Consortium for the Shuey Knolls Phase IV Project approved by the Board on January 21 2009, with funding scheduled to be paid out directly to Habitat by the City of Asheville.

Economic Development– significant issues

1. Includes $50,000 in continued funding for Agricultural Economic Development Program.

2. FY09 revenues and expenditures include a one-time $300,000 NC Agricultural and Farmland Trust Fund Project

3. FY09 revenues and expenditures include a one-time $31,250 One North Carolina Grant Fund for Elkamet

4. Budget includes new projects as approved by the Board throughout FY09m, such as WilsonArt and Prince Manufacturing

Environmental Protection

Forestry Services– significant issues

No significant issues in FY10. No increase recommended over YF09 funding levels.

Soil & Sedimentation– significant issues

1. $1,590 allocated IT funding includes: P&I Costs, Enterprise Costs

2. Decrease in revenues anticipated due to economic conditions

3. FY10 budget proposes a personnel reduction of 1 FTE

4. $4,445 allocated Operating Expenditures include: Wellness Clinic, HR Professional Services & Advertising Insurance/Bonding

5. $525 allocated personnel funding includes: Worker’s Comp.

6. $6,262 allocated Central Services includes: Fuel, Utilities, Contracted Service, Building Maintenance

Cooperative Extension– significant issues

1. $2,485 allocated IT funding includes: GIS Costs, Computer Repair Costs

2. Allocated Central Services funding includes $3,000 funding for roof resurfacing

3. $19,462 allocated Operating Expenditures include: Wellness Clinic, HR Professional Services & Advertising, Insurance/Bonding

4. $2,275 allocated personnel funding includes: Worker’s Comp.

5. $24,774 allocated Central Services includes: Fuel, Utilities, Contracted Service, Building Maintenance

6. Includes full year funding for all positions

Human Services

Home & community Care Block Grant– significant issues

No significant issues in FY10. Program is 100% grant funded, using no county dollars.

Mental Health– significant issues

1. FY09 and FY10 Cost Allocation includes: $16,000 in fuel used by Vocational Solutions.

2. $34,012 allocated debt service funding includes: 100% of 6^th Avenue Clubhouse principal and interest

3. No increase recommended for service providers for FY10 – current level $528,612

Juvenile Justice Grant– significant issues

No significant issues in FY10. Program is 100% grant funded, using no county dollars.

Veteran’s Services– significant issues

1. $285 allocated IT funding includes: Enterprise Costs

2. $13,318 allocated debt service funding includes: 1% of Human Services Building principal and interest

3. $1,482 allocated Operating Expenditures include: Wellness Clinic, HR Professional Services & Advertising, Insurance/Bonding

4. $2,397 allocated Central Services includes: Utilities, Contracted Service, Building Maintenance

5. $175 allocated personnel funding includes: Worker’s Comp.

Cultural and Recreation

Library– significant issues

1. $10,000 Rental of Real Property allocated to the Library

2. $59,508 allocated IT funding includes: Enterprise Costs, Computer and Server Repair Costs, one replacement server.

3. $213,330 allocated debt service funding includes: 100% of Etowah Library principal and interest

4. Includes $31,500 Building Repair & Maintenance for : AC Unit and Roof (Fletcher) Stain Exterior (Edneyville), Resurface Roof (Main)

5. $83,595 allocated Central Services includes: Worker’s Comp., retiree medical and dental insurance for five retirees

6. $160,482 allocated Central Service includes: Fuel, Utilities, Contracted Service, Building Maintenance

7. $67,274 allocated Operating Expenditures include: Wellness Clinic, HR Professional Services & Advertising, Insurance/Bonding

8. FY10 budget proposes a personnel reduction of 1 part-time position

Recreation– significant issues

1. $5,465 allocated IT funding includes: New PC for Edneyville Community Center, Enterprise Costs, Computer Repair Costs

2. $16,899 allocated Operating Expenditures include: Wellness Clinic, HR Professional Services & Advertising, Insurance/Bonding

3. $7,875 allocated personnel funding includes: Worker’s Comp.

4. $61,222 allocated Central Services includes: Fuel, Utilities, Contracted Service, Building Maintenance

5. Four Parks Maintenance positions were allocated from Central Services to Recreation in FY09

6. Proposes a substantial reduction in temporary salaries from departmental request.

Chairman Moyer noted that issues requiring additional discussion were economic development, frozen positions, Health Department parking, pricing of fuel, pipe at Apple Valley/North Henderson, school officers, and 2 positions for the Department of Social Services, Tax Assessor/Collector, and the debt left for the 6^th Avenue Clubhouse.

ADJOURN

There being no further business Commissioner Williams made the motion to adjourn at 12:20 p.m. All voted in favor and the motion carried.

ATTEST:

Teresa L. Wilson, Clerk to the Board William L. Moyer, Chairman