MINUTES

STATE OF NORTH CAROLINA BOARD OF COMMISSIONERS

COUNTY OF HENDERSON JUNE 1, 2010

The Henderson County Board of Commissioners met for a special called meeting (budget workshop) at 3:00 p.m. in the Commissioners' Meeting Room of the Historic Courthouse on Main Street, Hendersonville.

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

Also present were: Associate County Attorney Sarah Zambon, Public Information Officer Christy DeStefano, Finance Director J. Carey McLelland, County Engineer Marcus Jones, Planning Director Anthony Starr, IT Director Becky Snyder, Elections Director Beverly Cunningham, Library Director Bill Snyder, Animal Services Director Brad Rayfield, Auditor Darlene Burgess, HR Director Jan Prichard, Soil & Water Conservation District Director Jonathan Wallin, Travel & Tourism Director Melody Heltman, Registrar Nedra Moles, Cooperative Extension Director Renay Knapp, Captain Greg Cochran, Sheriff Rick Davis, Fire Marshal Rocky Hyder, Tax Assessor/Collector Stan Duncan, Recreation Director Tim Hopkin, Code Enforcement Director Toby Linville, Building Services Director Tom Staufer, Environmental Health Supervisor Seth Swift, Research/Budget Analyst Amy Brantley, Lieutenant Vanessa Gilbert, Auxiliary Business Manager Bill Blalock, Captain of Patrol Tim Griffin, Major Rodney Raines, Captain Steve Carter, Construction Manager David Berry, Director of Communications Lisha Corn, Health Department Director Tom Bridges, Delinquent Tax Collector Lee King and Social Services Director Liston Smith.

CALL TO ORDER/WELCOME

Chairman Moyer called the meeting to order and welcomed all in attendance. He noted that the purpose of the meeting is a budget planning workshop.

DISCUSSION/ADJUSTMENT OF AGENDA

Chairman Moyer requested the addition of three (3) Closed Sessions for Economic Development and Personnel.

Commissioner Williams made a motion to adopt the agenda with the addition of three (3) closed sessions. All voted in favor and the motion carried.

Steve Wyatt stated on January 28, 2010 the Board of Commissioners and staff held a budget retreat and looked at the financial status of the county and proceeded with forecasts. Despite what seemed to be worse news every month the staff has put together a budget based on the framework established by the Board at that meeting which meets those objectives. In crafting the budget, projected preserves were drawn to a larger extent than discussed in January. County agencies and departments were commended for their work in formulating their budget requests, recommendations, and the teamwork that goes into producing a financial spending plan for the coming year.

Chairman Moyer explained that a number of departments had no identified issues associated with their budget and it would not be necessary for those department heads to make a presentation.

Selena Coffey explained what was included in the budget booklet and discussed the departmental overviews with significant issues. She noted that in 2009 staff began allocating cost based on the category (i.e. electricity, utilities costs, etc.) at an estimated figure to individual departments.

Chairman Moyer noted that Revenues would not be covered unless there were questions as there were no changes or new information since the first presentation by the County Manager.

Selena Coffey pointed out a decrease in departmental revenues due to the economic conditions.

General Government

Governing Body – Significant Issues – 115401

1	Increase in Operating Expenditures due primarily to increases in allocated costs, particularly electricity and contracted services
2	$21,227 Professional Services allocation includes annual audit, professional services, and volunteer banquet
3	$9,000 Rental of Real Property allocated to Governing Body for Curb Market parking lot lease
4	$4,985 allocated for Insurance and General Bonding
5	$2,892 allocated Non-Capital Technology includes Enterprise, GIS and P&I Costs
6	$3,062 allocated for Wellness Clinic Services
7	$76,325 allocated for: Cleaning & Janitorial, Electricity, Propane, Water/Sewer, Garbage, Fuel, Building Maintenance, Contracted Services
8	$875,912 for debt service includes 92% of Historic Courthouse principal and interest
9	Decrease in revenue due to the County no longer issuing Beer and Wine Licenses

Dues and Non-Profit Contributions – Significant issues – 115402

1	Decrease on NACo dues for FY11
2	Non-Profits reflects a decrease due to the dissolution of the Alliance ($9,000)
3	Staff recommends funding The Healing Place at their requested amount, over the Alliance recommendation
Expansion Budget Requests – 115402		$ Request	TRE
1	$5,000 was requested by Hands On!-A Child's Gallery. No funding ($0) proposed.	$5,000	$0.004
2	$11,500 was requested by the Arts Council of Henderson County. $10,000 proposed.	$1,500	$0.001
3	NACo fees of $1,710 not included in the proposed budget	$1,710	$0.001
4	Land-of-Sky Local Government Transit Match requested at $12,500. Staff proposes $8,210 consistent with previous year actual funding	$4,290	$0.003

Commissioner McGrady felt if we removed our membership from NACo, Henderson County would probably be the only county in North Carolina not included which would affect the NCACC representation at NACo. He requested this to be discussed later.

Chairman Moyer asked staff to take another look at the dues as the rate drop was significant.

Office of the County Manager – Significant Issues – 115403

1	$1,424 allocated for Insurance and General Bonding
2	$643 allocated Non-Capital Technology includes Enterprise, GIS and P&I Costs
3	$1,020 allocated for Wellness Clinic Services
4	$2,175 allocated for: Cleaning & Janitorial, Electricity, Propane, Water/Sewer, Garbage, Fuel, Building Maintenance, Contracted Services
5	$28,563 allocated debt service includes 3% of Historic Courthouse principal and interest
6	$209 allocated for HR Professional Services
7	Personnel increase due to inclusion of full year funding for vacant Administrative Assistant position

Ms. Coffey explained in the prior year, the Board of Commissioners gave the County Manager the authority to make decisions about funding for the then frozen positions and allocated an amount equal to half a year for those positions. This year’s budget contains a full year funding for the administrative assistant position which has not been filled this year.

Chairman Moyer questioned if this would be an additional position if filled.

Ms. Coffey responded no, the Board had not requested the positions be removed from the budget, just to fund them at half a year and allow the County Manager to determine when they would be filled. The two remaining positions are the Administrative Assistant to the County Manager and an Animal Services position.

Chairman Moyer requested that the Board return to this issue later in the meeting.

Administrative Services – Significant Issues – 115404

1	$2,849 allocated for Insurance and General Bonding
2	$2,570 allocated Non-Capital Technology includes Enterprise, GIS and P&I Costs
3	$2,041 allocated for Wellness Clinic Services
4	$2,175 allocated for: Cleaning & Janitorial, Electricity, Propane, Water/Sewer, Garbage, Fuel, Building Maintenance, Contracted Services
5	$19,107 allocated debt service includes 2% of Historic Courthouse principal and interest
6	$418 allocated for HR Professional Services

Human Resources – Significant Issues – 115405

1	$3,561 allocated for Insurance and General Bonding
2	$3,534 allocated Non-Capital Technology includes Enterprise, GIS and P&I Costs
3	$2,551 allocated for Wellness Clinic Services
4	$11,226 allocated for: Cleaning & Janitorial, Electricity, Propane, Water/Sewer, Garbage, Fuel, Building Maintenance, Contracted Services
5	$523 allocated for HR Professional Services
6	Personnel increase due to inclusion of full year funding for vacant Benefits Specialist position approved in FY09

Elections – Significant Issues – 115408

1	$3,561 allocated for Insurance and General Bonding
2	$4,498 allocated Non-Capital Technology includes Enterprise, GIS and P&I Costs
3	$2,551 allocated for Wellness Clinic Services
4	$17,256 allocated for: Cleaning & Janitorial, Electricity, Propane, Water/Sewer, Garbage, Fuel, Building Maintenance, Contracted Services
5	$523 allocated for HR Professional Services
6	$72,000 Rental of Real Property allocated to Elections for building lease
7	Decrease in Operating Expenditures due primarily to a one-time Federal HAVA Accessibility grant awarded in FY 2010
Expansion Budget Requests – 115408		$ Request	TRE
1	Board member expense request was $10,000 - Staff recommendation is $5,000 consistent with FY10	$ 5,000	$0.004

Legal – Significant Issues – 115416

1	Increase in Operating Expenditures primarily due to required continuing legal education, and contracted service needs
2	$4,985 allocated for Insurance and General Bonding
3	$2,892 allocated Non-Capital Technology includes Enterprise, GIS and P&I Costs
4	$3,571 allocated for Wellness Clinic Services
5	$1,770 allocated for: Cleaning & Janitorial, Electricity, Propane, Water/Sewer, Garbage, Fuel, Building Maintenance
6	$732 allocated for HR Professional Services
7	$1,193 allocated for Contracted Services
8	$28,563 allocated debt service includes 3% of Historic Courthouse principal and interest

Register of Deeds – 115418

1	Decrease in Operating Expenditures corresponds to decrease in revenues. 48% of Excise Tax received paid to State.
2	$4,985 allocated for Insurance and General Bonding
3	$5,462 allocated Non-Capital Technology includes Enterprise, GIS and P&I Costs
4	$3,061 allocated for Wellness Clinic Services
5	$32,149 allocated for: Cleaning & Janitorial, Electricity, Propane, Water/Sewer, Garbage, Fuel, Building Maintenance
6	$627 allocated for HR Professional Services
7	$7,621 allocated for Contracted Services

Commissioner McGrady questioned in department head positions where the salaries are set by the Commissioners, what assumptions are being made in regards to those salaries.

Ms. Coffey stated that the Chairman was provided with a list showing counties similar in population as well as similar in assessed valuations to ours and he will be sharing the information with the Board for discussion. There is nothing specific at this time included in this budget. A specific number will be needed before the budget ordinance is drafted and approved by the Board.

Steve Wyatt explained as the budget was developed, he had discussed if the budget could be brought in at or below the current year, he would be willing to include some type of merit based pay in the budget. A plan has been carved out which is the equivalent of about 1.4% of salary and benefits at approximately $460,000. Basically each department has roughly 1.4% in their budget for salary and benefits. Decisions on how to allocate the funds either merit principal or across the board increase have been discussed individually with the Board, whether it be additions to base or one-time payment.

Chairman Moyer noted that it was possible (depending on the determination by the Board) in small departments the pool would be small. Certain actions may require special consideration. The Board could determine to stay within the overall pool of money or nothing or go beyond. This would be added to the list for further discussion.

Central Services – 115419

1	Increase in Personnel Expenditures due to transfer of three maintenance positions from Library to Central Services
2	$9,258 allocated for Insurance and General Bonding
3	$2,570 allocated Non-Capital Technology includes Enterprise, GIS and P&I Costs
4	$8,163 allocated for Wellness Clinic Services
5	$38,504 allocated for: Cleaning & Janitorial, Electricity, Propane, Water/Sewer, Garbage, Fuel, Building Maintenance
6	$1,672 allocated for HR Professional Services
7	$8,348 allocated for Contracted Services

Garage – 115420

1	Proposed budget transfers 1 vacant vehicle mechanic position from Garage to Solid Waste as Material Recovery Facility Supervisor
2	$30,000 included in Propane/Natural Gas for 1/2 year of the Compressed Natural Gas station. Accounts for increase in Operating Expenses
3	$3,561 allocated for Insurance and General Bonding
4	$3,318 allocated for Contracted Services
5	$2,551 allocated for Wellness Clinic Services
6	$39,721 allocated for: Cleaning & Janitorial, Electricity, Propane, Water/Sewer, Garbage, Fuel, Building Maintenance
7	$523 allocated for HR Professional Services

Court Facilities – 115421

1	No significant issues in FY11. No increase recommended over FY10 funding levels.

Information Technology – 225422

1	$24,332 FY09 revenue was for two Ortho-photography Grants.
2	Decrease in Operating Expenses due to realignment of allocated costs, particularly Electricity
3	$5,697 allocated for Insurance and General Bonding
4	$2,570 allocated Non-Capital Technology includes Enterprise, GIS and P&I Costs
5	$3,571 allocated for Wellness Clinic Services
6	$7,986 allocated for: Cleaning & Janitorial, Electricity, Propane, Water/Sewer, Garbage, Fuel, Building Maintenance
7	$732 allocated for HR Professional Services
8	$1,140 allocated for Contracted Services

Wellness Clinic – 115436

1	$6,033 allocated for Insurance and General Bonding
2	$964 allocated Non-Capital Technology includes Enterprise, GIS and P&I Costs
3	$3,763 allocated for: Cleaning & Janitorial, Electricity, Propane, Water/Sewer, Garbage, Fuel, Building Maintenance
4	$314 allocated for HR Professional Services
5	$1,148 allocated for Contracted Services
6	Personnel expenditure increase due to full year funding for three FTE's

Non-Departmental Accounts – 115930

1	$94,000 included for Worker's Compensation - to be distributed as needed throughout the fiscal year
2	$150,000 included for Unemployment Claims - to be distributed as needed throughout the fiscal year. This reflects an increase over FY10, due to federal mandate that unemployment benefits be extended
3	FY10 Operating Expenditures included $25,000 for Census costs and $5,000 for Veteran's Clinic Transportation Van

Transfers from the General Fund - 115980

1	FY 11 Cost Allocation in Transit Fund includes $84,294 in fuel
2	All funds previously budgeted in the Capital Project Fund have been allocated to departments
3	$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.
4	All funds previously budgeted in the Self Insurance Fund have been allocated to departments
5	Revenues come from transfers in from Travel and Tourism to pay for indirect costs.
6	$96,000 Transfer to the Capital Project Fund is for retention of project manager position in FY11
7	Increase in Revaluation Reserve Fund due primarily to increases related to preparing for the FY 11 reappraisal
8	Overall decrease due to a one-time transfer of debt service costs rolling off that were transferred to this fund in FY10

Finance – 115413

1	$6,409 allocated for Insurance and General Bonding
2	$3,213 allocated Non-Capital Technology includes Enterprise, GIS and P&I Costs
3	$4,592 allocated for Wellness Clinic Services
4	$6,033 allocated for: Cleaning & Janitorial, Electricity, Propane, Water/Sewer, Garbage, Fuel, Building Maintenance, Contracted Services
5	$941 allocated for HR Professional Services
6	$3,836 allocated for Contracted Services
7	Increase in Personnel Expenditures due to a full year of funding for all positions

Assessor – 115414

1	Increase in Operating Expenditures primarily due to costs associated with 2011 Reappraisal, and moving of some costs traditionally budgeted in Tax Collector's Office
2	$12,107 allocated for Insurance and General Bonding
3	$17,028 allocated Non-Capital Technology includes Enterprise, GIS and P&I Costs
4	$8,674 allocated for Wellness Clinic Services
5	$16,574 allocated for: Cleaning & Janitorial, Electricity, Propane, Water/Sewer, Garbage, Fuel, Building Maintenance
6	$1,777 allocated for HR Professional Services
7	$2,619 allocated for Contracted Services
Expansion Budget Requests – 115414		$ Request	TRE
1	$15,000 requested for Salaries and Wages - Temporary/Part -Time. Request is for additional customer service as part of as part of the 2011 Reappraisal Planning and citizen appeals/requests for maps and data. Staff recommendation is for $5,000.	$ 10,000	$0.008
2	$108,600 requested for postage. Staff recommends $100,000 based on historical usage plus $24,500 for 2011 Reappraisal Notice mailings.	$ 8,600	$0.007

Tax Collections – 115415

1	Decrease in Operating Expenditures primarily due to moving some traditional costs to Assessor's budget
2	$7,121 allocated for Insurance and General Bonding
3	$5,783 allocated Non-Capital Technology includes Enterprise, GIS and P&I Costs
4	$3,572 allocated for Wellness Clinic Services
5	$14,928 allocated for: Cleaning & Janitorial, Electricity, Propane, Water/Sewer, Garbage, Fuel, Building Maintenance
6	$732 allocated for HR Professional Services
7	$3,422 allocated for Contracted Services
Expansion Budget Request – 115414		$ Request	TRE
1	Delinquent Tax Collections has requested a 2010 Ford Escape and Maintenance for that vehicle	$ 25,990	$0.021

The request for a vehicle for the delinquent tax collector was put on the list for further discussion. It was noted that staff would be looking at the possibility of transferring a vehicle from another department.

Public Safety

Sheriff – Significant Issues – 115431

1	Decrease in Operating Expenditures due to: $330,000 one time Law Enforcement Center planning funding in FY10, and one time grants received in FY10
2	$96,141 allocated for Insurance and General Bonding
3	$73,573 allocated Non-Capital Technology includes Enterprise, GIS and P&I Costs
4	$67,858 allocated for Wellness Clinic Services
5	$569,722 allocated for: Cleaning & Janitorial, Electricity, Propane, Water/Sewer, Garbage, Fuel, Building Maintenance
6	$13,901 allocated for HR Professional Services
7	$28,023 allocated for Contracted Services
8	$122,874 allocated debt service for E911 Project
9	Capital Outlay includes funding for 17 new replacement vehicles - 13 Dodge Chargers, 2 Chevy Tahoes, 1 Suburban and 1 Ford Explorer

Ms. Coffey explained that State law requires the County to get three bids and the Board has made it clear to staff last year that every attempt must be made to try to use local vendors when possible. There are times when the local vendors were not able to match costs from non-local vendors.

Commissioner McGrady noted that the Sheriff’s Department budget did not include any cost related to the new Law Enforcement Center and questioned if staff anticipated this showing up as capital outlays in the following years budget.

Ms. Coffey responded the costs would show up in the following year’s budget.

Detention Facility – Significant Issues – 115432

1	Increase in Operating Expenditures primarily due to realignment of allocated expenses, particularly Water and Garbage costs
2	$37,032 allocated for Insurance and General Bonding
3	$645,480 allocated debt service for E911 Project
4	$26,531 allocated for Wellness Clinic Services
5	$146,949 allocated for: Electricity, Propane, Water/Sewer, Garbage, Fuel, Building Maintenance
6	$5,435 allocated for HR Professional Services
7	$44,970 allocated for Contracted Services

Ms. Coffey noted in revenues, the State is not reimbursing us for the per day reimbursement amount therefore reflecting a decline in revenues.

Sheriff Rick Davis explained that the State has changed the amount and has not provided him with any real notice of what the amount will be or when the reimbursement will start. This affects the regular state committed prisoner; post conviction but not being sent off to a prison, being kept locally. The reimbursements are usually received once a person has been designated as confined to a state facility, not local custody or 287g.

Steve Wyatt explained that cost had been reimbursed 100% to the Counties for prisoners that are serving 1 – 90 days. An approach is being taken by the Governor, Senate, House, etc. to reduce that cost.

Sheriff Davis stated when and if this happens, he feels it would be fair to deep into the ICE revenue.

Chairman Moyer noted if the State makes a change an adjustment can be made to the budget.

Steve Wyatt stated that the Board had made a conscious decision for accounting purposes to set the ICE revenue aside to be able to say it is or is not paying for itself.

Emergency Management – Significant Issues – 115433

1	Decrease in Operating Expenditures due to 3, one-time Homeland Security grants for $18,882 received in FY10. Decrease in expenditure correlates with a decrease in revenue from those grants
2	$1,424 allocated for Insurance and General Bonding
3	$964 allocated Non-Capital Technology includes Enterprise, GIS and P&I Costs
4	$1,020 allocated for Wellness Clinic Services
5	$1,300 allocated for: Cleaning & Janitorial, Electricity, Propane, Water/Sewer, Garbage, Fuel, Building Maintenance
6	$209 allocated for HR Professional Services
7	$177 allocated for Contracted Services

Fire Marshall – Significant Issues – 115434

1	Increase in Personnel Expenditures due primarily to funding for a pending unemployment claim
2	Increase in Operating Expenditures primarily due to increased technology needs for FY11
3	$1,424 allocated for Insurance and General Bonding
4	$1,286 allocated Non-Capital Technology includes Enterprise, GIS and P&I Costs
5	$1,020 allocated for Wellness Clinic Services
6	$14,513 allocated for: Cleaning & Janitorial, Electricity, Propane, Water/Sewer, Garbage, Fuel, Building Maintenance
7	$209 allocated for HR Professional Services
8	$1,246 allocated for Contracted Services
Expansion Budget Requests – 115434		$ Request	TRE
1	Department has requested $25,000 associated with moving communications equipment to new building and removing old towers	$ 25,000	$0.020

Rocky Hyder explained the additional request is to remove the equipment from the old towers and place it on the new towers and in order to do that they must remove the old tower. Four years prior a $1.5 million grant was received from the Department of Homeland Security through the State Highway Patrol to replace and upgrade all communications towers and the buildings. This is the Counties cost share for the project. The towers are in the process of being erected now. The County emergency communications equipment will also be placed on the new towers and in the new building. If it is not funded in the current year they will try to fund it the next fiscal year. It is not impeding the operations but at some point it will cause problems if the old equipment is not removed. This request has been made for the last two years. One of the new towers has been constructed and the other two are expected this summer. The move of equipment is expected in the fall and at some point the old towers must be removed in order to not be a hazard to the new towers. This item would be included on the list for further discussion.

Steve Wyatt explained that the unfunded requests were listed in the budget presentation book on page 6.

Chairman Moyer questioned if money was allocated this year for towers being done this year, could the removal of towers could be done over a couple of years.

Mr. Hyder responded this would work. The most critical tower is located on Jump-Off Mountain.

Chairman Moyer requested an estimate of cost to remove the one tower.

Building Services – Significant Issues – 115435

1	Capital Outlay includes funding for 2 new replacement vehicles. The vehicles proposed are Ford F-150s, which can be converted to utilize gas or CNG once the station is operational. Recommended budget includes funding for both the vehicles, and the CNG conversion cost
2	Decrease in Operating Expenditures due primarily to planning dollars in FY10 budget associated with renovation of former Health Dept.
3	$9,970 allocated for Insurance and General Bonding
4	$6,104 allocated Non-Capital Technology includes Enterprise, GIS and P&I Costs
5	$6,633 allocated for Wellness Clinic Services
6	$37,059 allocated for: Cleaning & Janitorial, Electricity, Propane, Water/Sewer, Garbage, Fuel, Building Maintenance
7	$1,359 allocated for HR Professional Services
8	$1,992 allocated for Contracted Services

EMS – Significant Issues – 115437

1	Recommended budget includes $120,000 funding for purchase of one replacement ambulance
2	Increase in Operating Expenditures primarily due to increased allocation ($46,017) for technology upgrades in ambulances
3	$12,000 increase in Wearing Apparel (521200) reflects a 10% grant match on a $120,000 grant to purchase PPE gear
4	$2,100 in Non-Expandable Supplies (526020) reflects a 10% grant match on a $21,000 grant to replace 15 portable radios
5	$34,183 allocated for Insurance and General Bonding
6	$8,032 allocated Non-Capital Technology includes Enterprise, GIS and P&I Costs
7	$24,490 allocated for Wellness Clinic Services
8	$114,977 allocated for: Cleaning & Janitorial, Electricity, Propane, Water/Sewer, Garbage, Fuel, Building Maintenance
9	$5,017 allocated for HR Professional Services
10	$15,691 allocated for Contracted Services
Expansion Budget Requests – 115437		$ Request	TRE
1	Department has requested bicycles for the paramedic bike team	$ 2,160	$0.002

Chairman Moyer questioned if a recommended replacement policy had been adopted for EMS ambulances similar to what is done for the Sheriff’s Department vehicles.

Ms. Coffey responded that staff did not have a schedule but Mr. Hyder does based on mileage, condition, leased or purchased.

Rocky Hyder stated that up until the prior year they had leased the ambulance units so they automatically replaced themselves on a three year lease. He finds it easier to determine how long the ambulance unit will last with the Chevrolet chassis and the lifespan has allowed EMS to keep some of the units a year longer. Once a vehicle has higher mileage it is sent to a station which has fewer responses in order to make it last a little longer before replacement. Normally they are replaced at 120,000 miles (approximately 4 years) which does not represent all of the hours that the engine has actually run. The boxes are not being recycled at this point because it is not a cost efficient issue. The ambulances are not 4-wheel drive. The Henderson County Rescue Squad is utilized to help augment the fleet with 4-wheel drive ambulances. The paramedic bike team is used exclusively in local events (i.e. Apple Festival). This allows one of the paramedics to be mobile in that type of environment in order to get through the crowd without causing injury to themselves or anyone else. The request is for four (4) bicycles to replace existing bicycles that are about eight years old. This item would be discussed further.

Animal Services – Significant Issues – 115438

1	Capital Outlay includes funding for a new replacement van. Vehicle to be replaced has 160,000 miles
2	$4,985 allocated for Insurance and General Bonding
3	$2,892 allocated Non-Capital Technology includes Enterprise, GIS and P&I Costs
4	$3,571 allocated for Wellness Clinic Services
5	$23,653 allocated for: Cleaning & Janitorial, Electricity, Propane, Water/Sewer, Garbage, Fuel, Building Maintenance
6	$732 allocated for HR Professional Services
7	$6,055 allocated for Contracted Services
8	Decrease in revenues relates to one-time donations received in FY10

Criminal Justice Partnership Program – Significant Issues – 115439

1	Increase in Personnel Expenditures due to increase in personnel from a .80 part-time employee to a full-time employee
2	Decrease in Operating Expenditures primarily due to full time employee being able to provide direct services which had been contracted
3	$712 allocated for Insurance and General Bonding
4	$321 allocated Non-Capital Technology includes Enterprise, GIS and P&I Costs
5	$510 allocated for Wellness Clinic Services
6	$1,679 allocated for: Cleaning & Janitorial, Electricity, Propane, Water/Sewer, Garbage, Fuel, Building Maintenance
7	$105 allocated for HR Professional Services
8	$1,336 allocated for Contracted Services

Rescue Squad – Significant Issues – 115442

1	FY10 and FY11 cost allocations include $$11,200 in fuel costs
2	No significant issues in FY11. No increase recommended over FY10 funding levels.

Code Enforcement – Significant Issues – 115492

1	Recommended budget includes $5,000 funding for nuisance abatement
2	$2,849 allocated for Insurance and General Bonding
3	$1,928 allocated Non-Capital Technology includes Enterprise, GIS and P&I Costs
4	$2,041 allocated for Wellness Clinic Services
5	$8,269 allocated for: Cleaning & Janitorial, Electricity, Propane, Water/Sewer, Garbage, Fuel, Building Maintenance
6	$418 allocated for HR Professional Services
7	$2,208 allocated for Contracted Services

Planning & Economic Development

Property Addressing – Significant Issues - 115443

1	Decrease in Operating Expenditures due primarily to realignment of allocated costs based on FY10 usage
2	$2,136 allocated for Insurance and General Bonding
3	$1,285 allocated Non-Capital Technology includes Enterprise, GIS and P&I Costs
4	$1,276 allocated for Wellness Clinic Services
5	$2,584 allocated for: Cleaning & Janitorial, Electricity, Propane, Water/Sewer, Garbage, Fuel, Building Maintenance
6	$261 allocated for HR Professional Services
7	$219 allocated for Contracted Services

A new revenue, Right-of-Way closure request, has been added in the amount of $500 to cover County costs associated (i.e. advertising) with closures.

Anthony Starr stated that IT staff and the 911 staff have been working on a project to increase the accuracy of the data. There are over 64,000 addresses in the County which goes through a system of data bases with the phone company and at the County level in order for it to effectively come up on the screen when someone calls 911 and map correctly in case of an emergency. We are at 99.9% accuracy of the 64,000 addresses which are changing constantly.

Soil and Water – Significant Issues – 115471

1	Increase in Operating Expenditures due to a Stream Restoration Grant which will be funded in FY11. An increase in revenues to cover this project is also included in the recommended budget
2	$2,849 allocated for Insurance and General Bonding
3	$2,041 allocated for Wellness Clinic Services
4	No funds allocated for: Cleaning & Janitorial, Electricity, Propane, Water/Sewer, Garbage, and Building Maintenance. Building is leased and utilities are covered in the lease.
5	$418 allocated for HR Professional Services
6	$1,000 allocated for fuel

Utilities – Significant Issues – 115473

1	Revenues shown in the Utilities budget 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	Operating Expenditures budgeted entirely within the Cane Creek Fund

Planning – Significant Issues – 115491

1	Decrease in Operating Expenditures due primarily to planning dollars in FY10 budget associated with renovation of former Health Dept.
2	$5,697 allocated for Insurance and General Bonding
3	$2,249 allocated Non-Capital Technology includes Enterprise, GIS and P&I Costs
4	$3,061 allocated for Wellness Clinic Services
5	$11,923 allocated for: Cleaning & Janitorial, Electricity, Propane, Water/Sewer, Garbage, Fuel, Building Maintenance
6	$627 allocated for HR Professional Services
7	$4,947 allocated for Contracted Services
8	Decrease in Revenue due to anticipated economic conditions

HOME Program – Significant Issues – 115497

1	HOME Program funding is a direct grant pass-through from the City of Asheville for Federal HOME programs. $50,000 was awarded to Housing Assistance Corporation by the Asheville Regional Housing Consortium for the Ridge Crest Project as approved by the Board on February 1, 2010.
2	$110,000 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 February 1, 2010, with funding scheduled to be paid out directly to Habitat by the City of Asheville.
Expansion Budget Request – 115497		$Request	TRE
1	The Asheville Regional Housing Consortium has requested that Henderson Co. and the City of Hendersonville consider locally funding a tax credit housing project being applied for by the Housing Assistance Corporation. $20,000 would be the maximum needed by HAC to viably compete for the project.	$ 20,000	$0.016

Ms. Coffey stated an additional $20,000 is needed for the project known as the Oak Haven Project, being completed by the Housing Assistance Corporation. This item will be discussed later. It was questioned if the request was for $50,000 or $20,000 and this information would be verified.

Economic Development – Significant Issues – 115498

1	Includes $50,000 in continued funding for the Agricultural Economic Development Program
2	Includes $15,000 for anticipated continuation of Shop and Dine Henderson County campaign
3	Decrease due to expiration of Raflatac Incentives combined with new Borg/Warner Incentives
Expansion Budget Request – 115498		$ Request	TRE
1	Partnership for Economic Development has requested $270,000. Recommended budget is $232,100 consistent with FY10 funding	$ 37,900	$0.030
2	The Affordable Housing Coalition is requesting $150,000 to establish a Henderson County Housing Trust Fund	$150,000	$0.118

President of the Partnership for Economic Development Andrew Tate stated that one of the distinctions in the proposed increase request has to do with how the rent for the 330 North King Street is factored. Whether it is a deduction to their appropriation on an annual basis or it is a payment they make to the County. Their current fiscal year funding is $245,000 minus the amount associated for rent for that facility from December through the end of this fiscal year. The increase request of $25,000.00 is a 10% increase in funding and is the same request made to each municipality. This is for a third position as they are understaffed. The entire amount funding the position would not from public funding request, part of it would come from reduced expenses and third party contract services.

The request from the Partnership for Economic Development and Agriculture Economic Development Program would be discussed later.

Environmental Protection

Forestry Services – Significant Issues – 115470

1	No significant issues in FY11. No increase recommended over FY10 funding level.
Expansion Budget Request – 115470		$ Request	TRE
1	Request from the Division of Forest Resources was for $55,473	$ 5,601	$0.004

The Forestry Service had submitted a letter stating the increase request is a result of increased costs associated with emergency pick-up firefighter cost, the need for essential equipment in the County, and career advancement earnings tied to the Skill Based Pay Program. This item would be discussed later at the public hearing.

Chairman Moyer questioned the issue of support in fighting wild fires and if this was a result of that issue.

Rocky Hyder responded this is support for our County Forest Ranger to offset the operating expenses of that program. The program provides a smoke chaser and a County Forest Ranger in Henderson County. This a long standing cooperative program with the NC Forestry Service to help support them with their operating expenses. The helicopter team is still being debated before the legislature at this point and time. The last proposal Mr. Hyder had seen proposed was elimination of several aircraft from the NC Forest Service to reduce the cost.

Soil Erosion and Sedimentation Control – Significant Issues – 115493

1	Decrease in Revenue due to anticipated economic conditions
2	$2,136 allocated for Insurance and General Bonding
3	$964 allocated Non-Capital Technology includes Enterprise, GIS and P&I Costs
4	$1,020 allocated for Wellness Clinic Services
5	$4,859 allocated for: Cleaning & Janitorial, Electricity, Propane, Water/Sewer, Garbage, Fuel, Building Maintenance
6	$209 allocated for HR Professional Services
7	$1,095 allocated for Contracted Services

Chairman Moyer, referring to the decrease in revenues, asked when the County begins stormwater control where the revenues and expenses would show up.

Marcus Jones stated the expenses will not change. Staff has committed to adding the stormwater program at current staff levels.

Steve Wyatt explained that the plan was to combine soil erosion and stormwater into one budget with the hope of getting a small offset in whatever stormwater permits come in.

Cooperative Extension – Significant Issues – 115495

1	$9,258 allocated for Insurance and General Bonding
2	$15,986 allocated for: Cleaning & Janitorial, Electricity, Propane, Water/Sewer, Garbage, Fuel, Building Maintenance
3	$5,467 allocated for Contracted Services
4	$4,491 allocated for Worker's Compensation
Expansion Budget Request – 115495		$ Request	TRE
1	WNC Communities has requested $7,500 in non-profit grant funding. Staff recommendation is for $6,000, consistent with FY10 funding levels	$ 1,500	$0.001

This item will be discussed further.

Human Services

General Public Health

1	Decrease in Capital Expenditures due to one-time cost in FY10 to gravel the Health Department parking lot
2	Reduction in revenue due to reduction in State Aid to Counties
3	$15,653 allocated for Insurance and General Bonding
4	$47,228 allocated Non-Capital Technology includes Enterprise, GIS and P&I Costs
5	$38,567 allocated for Wellness Clinic Services
6	$88,555 allocated for: Cleaning & Janitorial, Electricity, Propane, Water/Sewer, Garbage, Fuel, Building Maintenance
7	$2,669 allocated for HR Professional Services
8	$33,498 allocated for Contracted Services
9	$586,741 debt service included for Human Services Building

Tom Bridges stated each year a consolidated agreement is received where they get guidance from the State as far as what their allocation will be. Negotiations are made as to what programs will be offered for the money. Some programs are partially funded and some fully funded. Funding can change throughout the year and expenditures will be adjusted according to the revenues.

Health Program – Bioterrorism

1	$285 allocated for Insurance and General Bonding
2	$10 allocated for HR Professional Services

Health Program – AIDS

1	$570 allocated for Insurance and General Bonding
2	$21 allocated for HR Professional Services

Health Program – Tuberculosis

1	$570 allocated for Insurance and General Bonding
2	$63 allocated for HR Professional Services

Health Program – Maternal Health

1	$11,679 allocated for Insurance and General Bonding
2	$1,307 allocated for HR Professional Services
3	Reduction in revenue due to Medicaid Max funding used in FY10, which has been depleted
4	Increase in Personnel Expenditures due to reallocation per departmental request to better meet department needs

Health Program – Family Planning

1	$1,424 allocated for Insurance and General Bonding
2	$449 allocated for HR Professional Services

Health Program – Child Health

1	$8,617 allocated for Insurance and General Bonding
2	$847 allocated for HR Professional Services
3	Reduction in revenue due to a one-time HealthCheck Grant received for FY10
4	Decrease in Personnel Expenditures due to reallocation per departmental request to better meet department needs

Health Program – Women, Infants and Children Nutrition Program (WIC) – 115511-5405

1	$6,267 allocated for Insurance and General Bonding
2	$1,129 allocated for HR Professional Services
3	Increase in Personnel Expenditures due to reallocation per departmental request to better meet department needs
4	Decrease in Operating Expenditures due to a decrease in request for Contracted Services

Health Program – Breast and Cervical Cancer Control – 115511-5452

1	$427 allocated for Insurance and General Bonding
2	$73 allocated for HR Professional Services
3	Operating expenditures were reduced in the Medical Services line, consistent with a decrease in revenues for the program

Health Program – Risk Reduction – 115511-5503

1	$356 allocated for Insurance and General Bonding
2	$52 allocated for HR Professional Services
3	Operating Expenditures and revenues decreased from FY10 levels due to one-time "Eat Smart-Move More" Grant received in FY10

Health Program – Immunization Action Plan (IAP) – 115511-5715

1	$712 allocated for Insurance and General Bonding
2	$105 allocated for HR Professional Services
3	Operating Expenses reduced due to FY10 technology needs fulfilled

Health Program – Cardiovascular Health Plan – 115511-5720

1	Cardiovascular Health is a 100% State funded grant. Grant funding determinations are announced after budget adoption

Health Program – Smartstart Childcare – 115511-5725

1	$855 allocated for Insurance and General Bonding
2	$125 allocated for HR Professional Services
3	Operating Expenses reduced due to reduction in Departmental Supply needs

Health Program – Smartstart Preventative Dental – 115511-5730

1	$712 allocated for Insurance and General Bonding
2	$105 allocated for HR Professional Services
3	Reduction in Revenue and Operating Expenditures due to an anticipated decrease in Medicaid funding

Health Program – Behavioral Health – 115511-5745

1	$712 allocated for Insurance and General Bonding
2	$63 allocated for HR Professional Services
3	Reduction in Revenue and Personnel Expenditures due to an anticipated decrease in MOE Grant funding

Health Program – School Health Nurse – 115511-5751

1	$6,409 allocated for Insurance and General Bonding
2	$862 allocated for HR Professional Services

Environmental Health – 115512

1	Decrease in Revenue due to anticipated economic conditions
2	$9,970 allocated for Insurance and General Bonding
3	$6,633 allocated for Wellness Clinic Services
4	$18,245 allocated for: Cleaning & Janitorial, Electricity, Propane, Water/Sewer, Garbage, Fuel, Building Maintenance
5	$1,359 allocated for HR Professional Services
6	$3,710 allocated for Contracted Services
7	$65,194 debt service included for Human Services Building

Seth Swift explained he had received notification that as of July 1 the Environmental Health Department is being transferred from NCDENR to DHHS. They will not be eligible for any of the mosquito funds. The Board of Commissioners made the decision years ago to fund that program with or without state aid.

Home and Community Care Block Grant – 115513

1	No significant issues in FY11. Program is 100% grant funded, using no County dollars.

Department of Social Services – Youth Programs – 115515

1	$6,125 allocated for Insurance and General Bonding
2	$4,388 allocated for Wellness Clinic Services
3	$17,962 allocated for: Cleaning & Janitorial, Electricity, Propane, Water/Sewer, Garbage, Fuel, Building Maintenance
4	$899 allocated for HR Professional Services
5	$3,255 allocated for Contracted Services
6	Increase in Operating Expenditures primarily due to realignment of allocated expenses, particularly Water and Garbage costs

Chairman Moyer asked that the drop in revenues in all departments be included on the list to the discussed further.

Ms. Coffey requested that the Board discuss and give direction to staff as to when the specific allocations of MOE funds will be determined and distributed.

Chairman Moyer suggested leaving the funds at the level required and make a decision in July after hearing what the State has done in regards to Mental Health. The Board was in agreement.

Mental Health – 115520

1	The Board is requested to allocated the $528,612 to the requesting providers
2	Decrease in revenue related to one-time rent payment from Sixth Avenue in FY10
Expansion Budget Requests – 115520		$ Request	TRE
1	$763,000 in total was requested by providers. Staff recommends a total of $528,612 in Maintenance of Effort funding consistent with previous year's funding levels	$234,388	$0.185

Rural Operating Assistance Program (ROAP) – 115521

1	No significant issues in FY11. Program is 100% grant funded using no county dollars

Department of Social Services – Administration – 115531

1	$135,309 allocated for Insurance and General Bonding
2	$96,940 allocated for Wellness Clinic Services
3	$108,797 allocated for: Cleaning & Janitorial, Electricity, Propane, Water/Sewer, Garbage, Fuel, Building Maintenance
4	$19,754 allocated for HR Professional Services
5	$45,326 allocated for Contracted Services
6	$638,895 debt service included for Human Services Building
7	Increase in operating expenditures due primarily to an increase in Telephone and Technology needs for the Department
8	Recommended budget includes 1 new FTE - a School Social Worker

The Board requested that all revenues be on one page offsetting the expenses.

Department of Social Services – Smartstart – 115532

1	$105 allocated for HR Professional Services
2	No significant issues in FY11. Program is 100% grant funded using county dollars only for HR Professional Services allocation

Department of Social Services – Federal and State Programs – 115535

1	Medicaid expenditures 100% eliminated in FY10 as a result of the State Medicaid Relief Act.
2	Decrease in Operating Expenditures due in part to a $172,072 decrease in Child Day Care. This reduction is based on State estimate.
3	Additional decrease in Operating Expenditures due to decreases in Work First Contracts and Foster Care.

Department of Social Services – General Assistance – 115536

1	No significant issues in FY11. No increase requested or recommended over FY10 funding levels.

Juvenile Justice Grant – 115541

1	No significant issues in FY11. Program is 100% grant funded using no county dollars

Veteran’s Services – 115582

1	Decrease in Operating Expenditures due to realignment of allocated costs
2	$712 allocated for Insurance and General Bonding
3	$265 allocated for Wellness Clinic Services
4	$1,201 allocated for: Cleaning & Janitorial, Electricity, Propane, Water/Sewer, Garbage, Building Maintenance
5	$663 allocated for Contracted Services
6	$13,037 allocated debt service for Human Services Building
7	$54 allocated for HR Professional Services

Cultural & Recreational

Library – 115611

1	Decrease in Personnel Expenditures due to transfer of three maintenance positions from Library to Central Services
2	Increase in Operating Expenditures due to realignment of allocated costs, particularly Electricity and Propane/Natural Gas, and an increase in technology associated with PC replacements
3	Recommended budget includes $20,000 for a replacement vehicle (replacing a 1992 Ford F150)
4	$32,047 allocated for Insurance and General Bonding
5	$56,224 allocated Non-Capital Technology includes Enterprise, GIS and P&I Costs
6	$19,102 allocated for Wellness Clinic Services
7	$131,846 allocated for: Cleaning & Janitorial, Electricity, Propane, Water/Sewer, Garbage, Fuel, Building Maintenance
8	$3,913 allocated for HR Professional Services
9	$58,101 allocated for Contracted Services
10	$213,330 allocated debt service for new Etowah library

Expansion Budget Requests – 115611		$ Request	TRE
1	Department has requested $450,000 for publications, consistent with FY07-08 levels. Staff recommendation is for $400,000	$ 50,000	$0.039

It was suggested that staff look at other departments to see if they may have a vehicle which could be transferred to the library for use rather than purchasing a new one. The library staff would like a small station wagon or mini-van type vehicle.

Chairman Moyer noted that letters of concern had been received in regards to staffing at the library. Service levels were dropping due to the cutback in positions. Mills River has also shown concerns about their staffing.

Ms. Coffey explained at a previous meeting the Board had requested options with regard to staffing in the libraries. This was not part of Mr. Bill Snyder’s request in his budget as it was specifically requested by the Board.

Mr. Snyder’s understanding was that there would not be any growth in the budget, therefore his budget showed just that, no growth. There are issues that they would like to see addressed but did not feel they were able to address the issues with the direction given with the budget. They have lost four (4) full-time equivalent positions and it would be good to replace two (2) of those positions. This would be put on the list for continued discussion.

OPTION #1 - "GOOD"
POSITION:	CHILDRENS TECH I
TOTAL PERSONNEL COST:	$39,198
• The library would be able to offer 39 more Bouncing Baby programs annually at the main branch. This program is hugely popular and well attended.
• The library would be able to offer 39 more Toddler programs annually at the main branch. Again the Toddler programs are extremely popular and well attended.
• The library would be able to increase the number of special programs such as puppet shows, holiday specials and be able to promote events like Children’s Book Week. These events could be celebrated at the Main Library and all the branches.
• The library would be able to honor requests from schools for library tours and visits.
• The library would be able to conduct outreach visits to schools to promote the summer reading program.
• The library would be able to increase teen programming by as much as 25%.
• Library staff would have more time to attend to collection development and maintenance at all locations.
POSITION:	REFERENCE LIBRARIAN
TOTAL PERSONNEL COST:	$53,784
• The library would once again have someone responsible for the AV collection. AV materials account for 30% of our 950,000 circulation
• The librarian responsible for computer/library instruction would once again be able to meet the demand for computer classes and the plan to take computer instruction to the branches would be resumed. We were awarded an LSTA grant for this. (Computer classes have been reduced by half as this librarian is currently also taking responsibility for the AV collection). 4 or 5 classes could be offered a month as opposed to the current 2.
• The library would once again have someone to manage adult programming. Programming is currently suspended. Library programs are popular and well attended
• The library would once again have someone responsible for managing access to Kaplan Auditorium and its equipment. Fiscal YR 08-09 Kaplan was used 368 times by outside groups. Keeping up with this has not been easy.
• The reference department would have enough personnel to resume Sunday hours
OPTION #2 - "BETTER"
POSITION:	LIBRARY TECH I - MILLS RIVER
TOTAL PERSONNEL COST:	$39,198
• The Library would be acknowledging the very real demand for library service in that region of the county. It would be a “popular” move. Mills River circulation is up by 17%.
• The Library would be demonstrating its support for the branch and the very loyal group of volunteers.
• The branch would be getting the assistance it needed in a timely manner. Currently when there are computer and/or other issues personnel from the main library have to help out as they have time.
• It would be easier to enforce library policies and procedures and keep the branch in line with the other Henderson County libraries.
OPTION #3 - "BEST"
POSITION:	LIBRARY ASSISTANT - HALF TIME EXTENSION SERVICES POSITION
TOTAL PERSONNEL COST:	$18,455
• The number of homebound patrons served could increase by as much as 25%, going from approximately 300 homebound patrons served to 375.
• Extension services annual circulation could increase by 8-10%
• The frequency of visits for larger facilities could increase from every 4-6 weeks, to every 3-4 weeks to better accommodate needs.
• Active promotion of services via county agencies and web sites could be reinstated.
POSITION:	LIBRARY ASSISTANT - PART TIME CIRCULATION ASSISTANT
TOTAL PERSONNEL COST:	$24,730
• There would be an additional 2.2 hours per week per employee for the completion of off-desk tasks. This extra 22 hours per week would be well spent maintaining library inventory (shelf reading, searching for missing items, mending and lease plan management). These necessary tasks have suffered some neglect due to staff shortages.
• Greater flexibility in scheduling. The circulation department is frequently called upon to loan an employee to a branch when there are absences.
• The staff would be better equipped to meet the increase in demand for library services. Between January 2009 and January 2010 there have been a 3% increase in circulation and a 6% increase in requests. Trying to manage this increase with reduced staff has led to mental and physical fatigue amongst staff.
• Staff would have more time to handle tasks such as creating Book Letters and Readers Advisory pamphlets that add extra value to the patron’s visit. While not crucial to the library’s operation many of these services are greatly appreciated and missed by our patrons.
• Reopening on Sundays would be possible, however this would result in reducing the time staff has for off-desk tasks by as much as 14 hours a week – because they would be required to staff more desk hours.

Recreation – 115612

1	Increase in Operating Expenditures due to realignment of allocated costs, particularly Electricity and Propane/Natural Gas
2	$7,834 allocated for Insurance and General Bonding
3	$4,177 allocated Non-Capital Technology includes Enterprise, GIS and P&I Costs
4	$5,612 allocated for Wellness Clinic Services
5	$102,955 allocated for: Cleaning & Janitorial, Electricity, Propane, Water/Sewer, Garbage, Fuel, Building Maintenance
6	$1,150 allocated for HR Professional Services
7	$8,245 allocated for Contracted Services
Expansion Budget Requests – 115612		$ Request	TRE
1	Playground Equipment for Jackson Park and Dana Park. Former playground equipment has been removed due to safety reasons	$ 60,000	$0.047
2	Department requested $170,060 for Salaries and Wages - Temp/Part Time. Staff recommendation is for $152,400 consistent with FY10 budget levels	$ 17,660	$0.014

Education

Henderson County Public Schools – 115691, 113911, 115980

1	Debt Service includes $164,364 budgeted in 115980-Transfers from the General Fund. See Page 60
2	Maintains Operating Expenditures at FY10 levels
3	Maintains Capital (Repair and Renovation) Expenditures at FY10 levels
4	Debt Service reflects the major investment made in FY10 for school renovations and repairs, as well as the Apple Valley/North Henderson High project
Expansion Budget Requests – 115691, 113911, 115980		$ Request	TRE
1	HCPS requested $20,895,709 for Operating Expenditures. Staff recommendation is for $20,392,939, consistent with FY10 funding. $197,491 is for "Potential State-Mandated Salary Increases" and $305,279 is for "State-Mandated Benefit Increases".	$ 502,770	$0.397
2	HCPS requested $2,000,000 for Repair and Renovations. Staff recommendation is for $449,889, consistent with FY10 funding	$1,550,111	$1.223

Henderson County School Board Chairman Erwin Bazzle stated the number on the current expense of $502,770 is broken down from what was projected early by DPI as far as what the increased salaries would be. He felt the $197,491 could be removed. From everything the School Board sees coming out of the State right now, there will be no increase as far as salary at all. The other item, state mandated benefits in the amount of $305,279 is totally separate and come every year regardless. The School board was aggressive in the number provided to the Board of Commissioners for repair and renovations. The capital budget was broken down into two areas as done the prior year and part of this is the remnants of the $6 million backlog and the other is lifted from the maintenance cost. Both items are critical and they will lose ground in which they gained the prior year. Eventually they will have to pay for the maintenance. There are no funds available to pay the $305,279 and they will have to cut people if not funded.

Chairman Moyer stated the maintenance concerns would be discussed further.

Commissioner McGrady would like an updated maintenance and repair needs schedule.

Dr. Stephen Page stated that the list was provided in their budget presentation.

Blue Ridge Community College – 115692, 115912

1	Funds 3rd year of Energy Initiative Loan Payment of $90,724
2	Maintains Operational Expenditures at FY10 levels
3	Debt service reflects major investment in community college renovation and repairs in FY10
Expansion Budget Requests – 115692, 115912		$ Request	TRE
1	BRCC is requesting an additional $11,107 associated with an increase in health insurance premiums	$ 11,107	$0.009
2	BRCC is requesting $893,924 for maintenance and repair. Staff recommendation is for $90,924, for repayment of a 10-year energy efficiency loan, consistent with FY10 funding levels	$803,200	$0.634

Chairman Moyer questioned the forgiveness figure that was not included and staff responded it was approximately $36,000.

Special Revenue Funds

Fire District Funds – Fund 24

Fire Districts/Departments		FY 2010 Rate	FY 2011 FRAC Recommended Rate
	Bat Cave	$0.090	$0.090
	Blue Ridge	$0.085	$0.085
	Dana	$0.100	$0.100
	Edneyville	$0.085	$0.085
	Etowah-Horseshoe	$0.085	$0.085
	Fletcher	$0.095	$0.095
	Gerton	$0.115	$0.115
	Green River	$0.060	$0.060
	Mills River	$0.065	$0.065
	Mountain Home	$0.095	$0.095
	Saluda	$0.075	$0.075
	Valley Hill	$0.070	$0.070
	Valley Hill II	$0.070	$0.070
SIGNIFICANT ISSUES
1	No issues in FY10-11. Fire and Rescue Advisory Committee recommended rates are consistent with FY09-10 levels

Assessor – Revaluation Reserve Fund – 255417

1	Increase in Operating Expenditures due primarily to increases related to preparing for the FY 11 reappraisal
2	$7,834 allocated for Insurance and General Bonding
3	$5,102 allocated for Wellness Clinic Services
4	$6,300 allocated for: Cleaning & Janitorial, Electricity, Propane, Water/Sewer, Garbage, Fuel, Building Maintenance
5	$1,509 allocated for Contracted Services
6	$1,045 allocated for HR Professional Services

Stan Duncan explained this particular fund is a result of the General Assembly and working with the State Treasurer’s Office to make sure that Counties are appropriating the sufficient amount of money to conduct reappraisals. Many years ago all reappraisals were contracted out to reappraisal companies and there were a couple of Counties that waited too late to start funding for that reappraisal and when it came time to conduct one they did not have the revenues there available. For Henderson County it is the operating costs of the real property appraisal section as all appraisals are done in house and have been doing so since 1995. This money is an appropriation to make sure that staff is adequately funded. The tools and resources necessary to conduct the reappraisal are funded on a par level from year to year on an annual basis.

Travel and Tourism – 265613

1	Decrease in Personnel Expenditures due to reduction in Staff of 1 FTE
2	$2,551 allocated for Wellness Clinic Services
3	$523 allocated for HR Professional Services

Ms. Coffey noted that primarily this department’s revenues are funded from occupancy tax in addition to some add funds for publications and events.

Commissioner McGrady stated that the Historic Museum is covered in Travel and Tourism and they are allocated up to $119,000 in the coming fiscal year. Mr. McGrady is not supportive of the continuing expenditure.

Chairman Moyer noted the resolution adopted by the Board of Commissioners specifically said that the museum would receive ½ cent of the occupancy tax goes to the Heritage Museum.

CDBG – Scattered Site Housing Program – 275614

1	No significant issues in FY11. Program is 100% grant funded using no county dollars

E911 Fund – 285411

1	No significant issues in FY11. Program is 100% funded with E911 surcharge fees using no county dollars.

Chairman Moyer asked if there was a reserve to match this fund.

Carey McLelland responded that fund balance is available within this fund. He did not know the amount without researching. The fund is restricted to E911.

Chairman Moyer questioned if tower removal in communications could be completed with the funds.

Russ Burrell stated that there is something pending in the legislature this year that would expand what E911 permitted expenditures are and wasn’t sure if it would include tower removal.

CDBG – Warm Company – 305499

1	No significant issues in FY11. Program is 100% grant funded using no county dollars

Public Transit Fund – 335497

1	$84,294 in fuel allocated to the Public Transit Fund in FY09, FY10 and FY11
2	Significant decrease in Capital Outlay is related to funding for the CNG Station Project approved in FY10
3	No other significant issues for FY11. County funding increased by $3,730 - a 2.15% increase over FY10

CDBG – Water and Sewer Hookup – 354407

1	No significant issues in FY11. Program is 100% grant funded using no county dollars

Immigrations and Customs Enforcement (ICE Program)

1	Reduction in Capital Outlay reflects a transport vehicle and two vehicles purchased in FY10
2	$5,697 allocated for Insurance and General Bonding
3	$2,041 allocated for Wellness Clinic Services
4	$12,773 allocated for: Cleaning & Janitorial, Electricity, Propane, Water/Sewer, Garbage, Fuel, Building Maintenance
5	$5,558 allocated for Contracted Services
6	$418 allocated for HR Professional Services

Enterprise Funds

Solid Waste Enterprise Fund – 605472

1	Proposed budget transfers 1 vacant vehicle mechanic position from Garage to Solid Waste as Material Recovery Facility Supervisor
2	$9,258 allocated for Insurance and General Bonding
3	$6,123 allocated for Wellness Clinic Services
4	$1,254 allocated for HR Professional Services
5	Increase in Capital Outlay and Operating Expenditures associated with startup Material Recovery Facility

Cane Creek Water and Sewer District – 615711

1	Operating Expenditure includes a transfer to the General Fund to reimburse the General Fund for personnel costs in Utilities and Finance
2	Increase in Operating Expenditures due to a transfer to Capital Project Fund for design, permitting and easement acquisition for Mud Creek Interceptor Project ($174,000) and Mill Pond Creek Project ($138,200)
3	$2,136 allocated for Insurance and General Bonding
4	$1,531 allocated for Wellness Clinic Services
5	$314 allocated for HR Professional Services
6	$1,928 allocated Non-Capital Technology includes Enterprise, GIS and P&I Costs
7	No other significant issues for FY11. Program is 100% funded with district user fees using no county dollars.

Justice Academy Sewer Fund – 635711

1	No significant issues in FY11. Program is 100% funded with district user fees using no county dollars.

Chairman Moyer questioned how the PARTF grant with respect to the Conservation Easement was reflected.

Ms. Coffey stated once approved a special fund would be created. It was noted that insignificant changes had been made to the fee schedule based on recommendations.

CLOSED SESSION

Commissioner McGrady made the motion for the Board to go into closed session as allowed pursuant to NCGS 143-318.11 for the following reasons:

1. Pursuant to N.C. Gen. Stat. § 143-318.11(a)(4), To discuss matters relating to the location or expansion of industries or other businesses in the area served by the public body.

2. Pursuant to N.C. Gen. Stat. § 143-318.11(a)(6), To consider the qualifications, competence, performance, character, fitness, conditions of appointment, or conditions of initial employment of an individual public officer or employee or prospective public officer or employee; or to hear or investigate a complaint, charge, or grievance by or against an individual public officer or employee.

All voted in favor and the motion carried.

ADJOURN

Commissioner McGrady made the motion to go out of Closed Session and adjourn at 6:55 p.m. All voted in favor and the motion carried.

Attest:

______________________________ _________________________________

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