Chairman Joe Daughtery called the meeting to order. Chairman Joe Daughtery gave the invocation.
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1 NORTH CAROLINA WAYNE COUNTY The Wayne County Board of Commissioners met in special session on Tuesday, June 15, 2016 at 1 :00 p.m. in the Commissioners Meeting Room in the Wayne County Courthouse Annex, Goldsboro, North Carolina, after due notice thereof had been given. Members present: Joe Daughtery, Chairman; William H. Pate, Vice-Chairman; George Wayne Aycock, Jr. ; John M. Bell; Edward E. Cromartie; A. Joe Gurley, III and E. Ray Mayo. Call to Order Invocation Members absent: None. Chairman Joe Daughtery called the meeting to order. Chairman Joe Daughtery gave the invocation. Pledge of Allegiance Commissioner John M. Bellied the Board of Commissioners in the Pledge of Allegiance to the Flag of the United States of America. Work Session on the County Manager's Recommended County ofwavne Budget The Board of Commissioners reviewed and discussed the County Manager's recommended County of Wayne budget. The Board of Commissioners received the following previously requested information concerning: Rental of Real Property for the Sheriff's Office. This line item is for the rental of two firing ranges Rental of Building for the Sheriff's Office. This line item is for the rental of offices for seven deputies on the drug squad at $1,200 per month Clothing (jail inmates). Each inmate placed in a cell in the jail must be put in a uniform, no matter the length of stay in the jail. The uniforms are laundered after each inmate's use. The uniforms are in continual use Laundry-Cherry Hospital. The new Carey A. Winders Detention Center will have two washers and dryers. Until this facility is opened, the laundry will need to be sent to Cherry Hospital. Method of distribution of taxes for fire service districts. NCGS (b) (2) Disposition and distribution of taxes collected. Distribution Between Counties and Cities. Ad Valorem Method states "Each county and municipality receiving a distribution of the proceeds of the tax levied under this Article shall in turn immediately share the proceeds with each district in behalf of which the county or municipality levied ad valorem taxes in the proportion that the district levy bears to the total levy of the county or municipality." NCGS 153A-307 Taxes authorized; rate limitation. states "In addition, a county may allocate to a service district any other revenues whose use is not otherwise restricted by law." County Manager George A. Wood recommended the Board of Commissioners keep the ad valorem method for di stribution of taxes for fire service districts. Property taxes for the Mar Mac Fire District before and after construction of the Duke Energy Lee Natural Gas Turbine Plant $2, $103, (partial construction) $232, (completed construction) 2013-$237,778.79
2 The County Manager recommended leaving $6,000 in the Animal Control salary line item for reclassifications Salaries & Wages Library- In fiscal year there was a vacant position, which was not funded. The position has been filled and is in the budget Capital Outlay-Equipment Solid Waste- The budget request is for two Ford F-250 pickup trucks with 4-wheel drive, extended cab and the towing package. One truck will be used by the landscaping staff member and the other truck will be used at the landfill. Fund balance for the General Fund, attached hereto as Attachment A. County Manager George A. Wood stated Wayne County's unassigned fund balance is 23.81% ofthe General Fund expenditures and is not excessive. It ranks Wayne County favorably with most counties of our size. Wayne County is in solid financial shape. He did not recommend using the $17,127,638 unassigned fund balance, while maintaining the 14% working fund balance policy. Unassigned General Fund balance history, attached hereto as Attachment B County retirees would only get to choose Medicare Supplement Plan F at a maximum cost of $300 per month. County retirees currently on another Medicare Supplement Plan would be grandfathered in. Discussion Concerning Fire Service District Taxes Chairman Joe Daughtery asked County Manager George A. Wood to reach out to Mar Mac Fire Department and ask if its fire tax could be reduced. Commissioner Edward E. Cromartie asked if fire departments could share the wealth with other fire departments. Commissioner George Wayne Aycock, Jr. stated the county did not need to get into this Issue. Fire districts with larger populations, hence a larger tax base, have a larger call volume. County Manager George A. Wood stated the fire service districts were created for fire protection. Technically, the more property value there is; the more property and population to protect. The county cannot do cost sharing under the ad valorem method for the distribution of fire service district taxes. The county can utilize other methods in which revenues can be shared. Commissioner E. Ray Mayo stated in 2012 it was suggested the county collect taxes and redistribute to the fire departments according to need. The county cannot operate the fire departments as efficiently and costly as they are being operated now. The Mar Mac Fire Department needs special equipment to handle the fire protection needs at the Duke Energy Lee Natural Gas Turbine Plant. Recommended Appropriations for Outside Agencies The Board of Commissioners reviewed the County Manager's recommended County of Wayne budget appropriations for outside agencies. Commissioner George Wayne Aycock, Jr. moved to fund WATCH (Wayne Action Teams for Community Health) $145,000 in the County of Wayne budget. Chairman Joe Daughtery encouraged WATCH (Wayne Action Teams for Community Health) to find other sources of revenue. Commissioner E. Ray Mayo stated he was in favor of the previous motion of Commissioner George Wayne Aycock, Jr. The additional $35,000 above the County Manager's recommendation is not that much money. Commissioner Edward E. Cromartie asked County Manager George A. Wood how he determined his recommendation to fund WATCH (Wayne Action Teams for Community Health) $110,000.
3 County Manager George A. Wood stated he recommended an appropriation of $110,000 for WATCH (Wayne Action Teams for Community Health) because the county has not resolved the indigent care issue. In the 1985 contract the county conveyed Wayne Memorial Hospital to the Trustees of Wayne Memorial Hospital and the Wayne Memorial Hospital Trustees agreed to provide access to hospital care for all citizens of Wayne County. The issue needs to be resolved. WATCH did not receive a minority health grant through the Health Department because WATCH did not fill out the paperwork. County Manager George A. Wood recommended waiting to increase the appropriation to WATCH until the indigent care issue is resolved. The Family Y provides space to WATCH at no cost. All of the work flow for WATCH cannot be handled at Wayne Memorial Hospital. Commissioner John M. Bell stated he was concerned there were no guidelines for the clients utilizing WATCH (Wayne Action Teams for Community Health) services. People making decent salaries utilize the services of WATCH. This seemed unfair. Now WATCH is asking for more money. County Manager George A. Wood stated WATCH (Wayne Action Teams for Community Health) claims to put clients through their system based on their ability to pay for services. The Department of Social Services is the gatekeeper for Medicaid. Commissioner E. Ray Mayo stated he was told county employees use WATCH (Wayne Action Teams for Community Health) services. The county appropriation is to be used for the mobile unit services. The appropriation can be adjusted next year. Vice-Chairman William H. Pate stated he agreed with the County Manager that the indigent care issue needed to be resolved. The Wayne County taxpayers should be out of the medical business when the 1985 contract was signed. The indigent care issue needs to be resolved before an increase is given in the WATCH (Wayne Action Teams for Community Health) appropriation. He wanted the appropriation to stay at the County Manager's recommendation of $110,000. Chairman Joe Daughtery stated he met with a person employed in Wayne County and utilizes the services at WATCH (Wayne Action Teams for Community Health) because the person's employer does not provide health insurance and pays a penalty. WATCH is not screening its clients or asking for co-payments or donations. WATCH needs to determine other ways to raise revenues. It is unfair for the taxpayers to pay for free health care. Commissioner A. Joe Gurley, III stated he sits on the Wayne Memorial Hospital Board oftrustees and WATCH (Wayne Action Teams for Community Health) Board ofdirectors. Last year WATCH was cut unfairly. He hoped the Board of Commissioners would increase WATCH a small amount in WATCH needs community funding to be eligible for grants and endowments. WATCH cuts down on Emergency Medical Services transports. Commissioner Edward E. Cromartie stated there is abuse or misunderstanding. An appropriation of$145,000 is good faith. He wanted the WATCH (Wayne Action Teams for Community Health) mobile unit in the community where it is needed. He also wanted an abuse investigation done and the 1985 contract issue resolved. Voting for Commissioner George Wayne Aycock, Jr.'s motion to fund WATCH (Wayne Action Teams for Community Health) $145,000 in the County of Wayne budget. Voting "Aye": George Wayne Aycock, Jr.; John M. Bell; Edward E. Cromartie; A. Joe Gurley, III and E. Ray Mayo. Voting "Nay": Joe Daughtery and William H. Pate. Upon motion of Commissioner George Wayne Aycock, Jr., the Board of Commissioners unanimously funded the Wayne County Firefighters Association $18,000 in the County of Wayne budget. Commissioner John M. Bell stated the Board of Commissioners needs to fund mental health because those needing mental health assistance will eventually end up in the Wayne County jail.
4 Commissioner Edward E. Cromartie moved to fund the Edwards Community Center $15,000 in the County ofwayne budget. Voting "Aye": John M. Bell and Edward E. Cromartie. Voting "Nay": George Wayne Aycock, Jr.; Joe Daughtery; A. Joe Gurley, III; E. Ray Mayo and William H. Pate. The motion failed. Discussion Concerning Sheriff's Office Monies Commissioner George Wayne Aycock, Jr. questioned if the county had the authority to anticipate the revenue received from concealed weapons, seized property, controlled substance and finger print fees prior to the receipt of the funds and appropriate the fees in the budget. County Manager George A. Wood stated he provided information to County Attorney E. B. Borden Parker concerning putting this anticipated revenue in the budget. The Sheriff determines how the anticipated revenue will be spent. This procedure will eliminate the budget amendments, which are presented monthly to the Board of Commissioners for consideration. At 2:41 p.m., Commissioner George Wayne Aycock, Jr. left the meeting. Chairman Joe Daughtery stated if the concealed weapons, seized property, controlled substance and finger print fees are more than budgeted, the Sheriff will make recommendations on the expenditure ofthe difference. County Attorney E. B. Borden Parker stated the monies from concealed weapons, seized property, controlled substance and finger print fees must be spent in the Sheriffs Office budget. If these fees come in less than budgeted, the Sheriff will receive the difference in his budget County of Wayne Budget Consideration County Manager George A. Wood stated the County of Wayne Budget Ordinance would be on the June 21, 2016 Board of Commissioners agenda for consideration with the changes made at the work sessions. Adjournment There being no further business, Chairman Joe Daughtery adjourned the meeting at 2:46p.m. ~ OJl!~ a J <tg..?t~ M~R~ Wilson, Clerk to the Board Wayne County Board of Commissioners
5 Attachment A Page 1 County of Wayne General Fund Balance Detail For the Year Ended June 30, 2015 Total Fund Balance- General Fund Less: Restricted for: Stabilization by state statute {8%) Restricted for: Future debt payments, QSCB Restricted for: Public schools Restricted for: Tax revaluation Restricted for: Law enforcement Restricted for: Economic development Restricted for: Grants Committed for: Community college Committed for: Public schoools Assigned for: Subsequent year's expenditures Assigned for: Donations Unassigned Fund Balance Total General Fund Expenditures Unassigned FB as a% of GF Expenditures $ 6,309, $ 3,215, $ 5,579, $ 234, $ 818, $ 1,554, $ 121, $ 764, $ 1,270, $ 5,876, $ 34, $ 52,126, $ {25,779,657.00) $ 26,346, $ 110,646, % Unassigned Fund Balance, available for appropriation (from above) Less: Working fund balance policy Unassigned Fund Balance, while maintaining the 14% working fund balance policy Total General Fund Expenditures Fund Balance as a % of GF Expenditures $ 26,346, ?._j9,219,175.00) $ 17,127, $ 110,646, %
6 Attachment A Exhibit 3 Page 2 Wayne County, North Carolina Balance Sheet Governmental Funds June 30, 2015 Ma"or County Public County Public School Capital School Capital County Capital Project Fund- Project Fund-School General Fund Project Fund School Buildings Renovations Assets Cash and cash equivalents $ 43,338,982 $ 10,379,310 $ 5,654,646 $ 4,951,848 Restricted cash 4,033,490-6,375,720 Taxes receivable, net 2,285, ,153 Due from other funds Receivable from other governments 6,309,653 26, ,915 10,000 Total assets 55,967,962 10,405,759 12,823,281 4,988,001 Liabilities and Fund Balances Liabilities: Accounts payable 1,328,481-4,487,740 1,187,876 Total liabilities 1,328,481-4,487,740 1,187,876 Deferred Inflows of Resources 2,513,064 Funcl balances: Restricted for: Stabilization by State Statute 6,309,654 Future debt payments, QSCB 3,215,487 Fire protection Public Schools 5,579,616-1,887,980 3,800,125 Law enforcement 234,161 Tax revaluation 818,003 Public safety Community development Economic development 1,554,352 Grants 121,554 Permanent fund-senior Center Committed for: Future capital projects - 10,405,759 Community college 764,812 Public schools 1,270,720-6,447,561 Assigned for: Subsequent year's expenditures 5,876,487 Donations 34,811 Unassigned 26,346,813 Total fund balances 52,126,470 10,405,759 8,335,541 3,800,125 Total liabilities, deferred inflows of resources, and fund balances $ 55,968,015 $ 10,405,759 $ $ 4,988,001 The notes to the financial statements are an integral part of this statement. 29
7 Attachment A Page 3 Exhibit 5 Wayne County, North Carolina Statement of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - General Fund For the Year Ended June 30, 2015 Variance with Original Final Final Positive Budget Budget Actual (Negative) Revenues Ad valorem taxes $ 52,123,558 $ 52,123,558 $ 54,038,675 $ 1,915,1 17 Local option sales taxes 16,612,365 17,012,365 17,549, ,649 Other taxes and licenses 578, , ,781 23,018 Licenses and permits 1,396,700 1,422,558 1,629, ,248 Intergovernmental 419, ,710 1,034, ,777 Restricted intergovernmental 19,333,582 23,740,973 21,232,505 (2,508,468) Charges for services 3,342,035 3,412,604 3,741, ,921 Investment earnings 50,000 50,000 42,476 (7,524) Miscellaneous 875, , ,684 33,422 Payments from various municipalities 317, , ,988 80,603 Total revenues 95,050,379 99,794, ,017,941 1, Expenditures Current: General government 12,778,265 13,768,265 11,414,481 2,353,784 Public safety 17,554,623 19,734,554 17,323,090 2,411,464 Transportation 127, , , Economic and physical development 1,596,283 5,038,479 3,230,480 1,807,999 Human services 31,074,722 35,891,214 30,983,424 4,907,790 Culture and recreation 2,416,451 2,481,237 2,305, ,589 Education 27,295,511 28,815,465 24,546,990 4,268,475 Debt Service: Principal 2,831,813 3,130,268 2,058,838 1,071,430 Interest and other charges 746,854 1,491,240 1,488,737 2,503 Total Expenditures 96,422, ,646,590 93,646,578 17,000,012 Excess (deficiency) of revenues over expenditures (1,371,703) (1 0,852,41 2) 7,371,363 18,223,775 Other Financing Sources (Uses) Proceeds from long-term debt, net Transfers in 36,515,096 1,108,118 1,108,118 Transfers out (38,861,020) (27,395,786) (27,395,786) Proceeds from sale of assets - 296, ,687 {394,499} Total other financing sources and (uses) (2,345,924) (25,991,4BO) (25,596,9B 1) (394,499) Revenues and other financing sources under expenditures (3,717,627) (36,843,892) (18,225,618) 18,618,274 Appropriated fund balance 3,717,627 36,843,892 - (36,843,892) Revenues, other sources, and appropriated fund balance over (under) expenditures $ - $ - (18,225,618) $ {18,225,618) Fund balances- beginning 70,352,088 Fund balances- ending $ 52,126,470 The notes to the financial statements are an integral part of this statement. 35
8 Attachment A Page4 Wayne County, North Carolina Notes to the Financial Statements For the Fiscal Year Ended June 30, 2015 E. Fund Balance The following schedule provides management and citizens with information on the portion of General fund balance that is available for appropriation: Total fund balance - General Fund (Exhibit 3) $ 52, 126,470 Less: Restricted for: Stabilization by state statute 6,309,654 Restricted for: Future debt payments, QSCB 3,215,487 Restricted for: Public Schools 5,579,616 Restricted for: Tax revaluation 234,161 Restricted for: Law enforcement 818,003 Restricted for: Economic development 1,554,352 Restricted for: Grants 121,554 Committed for: Community college 764,812 Committed for: Public Schools 1,270, 720 Assigned for: Subsequent year's expenditures 5,876,487 Assigned for: Donations 34,811 Working Fund Balance Policy 9,219,175 (34,998,832) Remaining Fund Balance $ 17,127,638. Wayne County has adopted a minimum fund balance policy for the General Fund which instructs management to conduct the business of the County in such a manner that available fund balance is at least equal to or greater than 14% of budgeted expenditures, including the amount restricted for state stabilization. IV. Related Organization The Wayne County Commissioners are responsible for appointing eight members of the ten-member board of the Wayne Health Corporation (Wayne Memorial Hospital), but the County's accountability for this organization does not extend beyond making these appointments. The Hospital is a nonprofit organization. It is funded entirely by fees for services provided. V. Joint Ventures The County, in conjunction with the State of North Carolina and the Wayne County Board of Education, participates in a joint venture to operate Wayne Community College. Each of the three participants appoints four members of the twelve-member board of trustees of the community college. The community college is included as a component unit of the State. The County has the basic responsibility for providing funding for the facilities of the community college and also provides some financial support for the community college's operations. In addition to providing annual appropriations for the facilities, the County periodically issues general obligation bonds to provide financing for new and restructured facilities. No debt is outstanding at this time. The County has an ongoing financial responsibility for the community college because of the statutory responsibilities 90
9 Attachment B County of Wayne Unassigned General Fund Balance History For the Years Ended June 30, 2015, 2014, /30/2015 Increase (Decrease) over Prior Year 6/30/2014 Increase (Decrease) over Prior Year 6/30/2013 Unassigned Fund Balance New Debt- Eastern Region/Gr & Spr Crk DSS- Northwoods project Sheriff- Detention Center Facility Reduction in outside agency appropriations $ 26,346, $ 26,346, $ (3,410,686.72) $ 29,757, $ 1,254, $ 983, $ 805, $ (368,147.72) $ 29,757, $ 962, $ 28,794, $ (980,000.00) $ (17,444.51) $ 28,794,939.56
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