Draft

October 29, 2002

The Alexander County Board of Commissioners held a Special Called Meeting on Tuesday, October 29, 2002 in the Commissioners’ Room of the Alexander County Courthouse, Taylorsville, North Carolina.

Chairman Odom called the meeting to order at 7:00 PM.

Chairman Odom requested the addition of the minutes from the October 1, 2002 Regular Meeting to the Consent Agenda for approval. Commissioner Hammer requested discussion of the lawsuit against the State of North Carolina for reimbursements during Other Business.

Commissioner Watts made a motion to adopt the agenda as amended. Commissioner Hammer seconded the motion. The Board voted unanimously in favor of the motion.

Anita Price, Resource Center Director, introduced Camilla Newland, Criminal Justice Partnership Advisory Board Chairman, and gave an update on the status of Day Reporting Centers in North Carolina.

Ms. Price stated that the Alexander County Day Reporting Center had been temporarily closed since July 2002 due to the lack of funding in the State budget. On October 3, 2002, Secretary Beck signed a grant for each county releasing an allotted amount for each program. Ms. Price stated that the budgets were reduced by 25% but noted that programs would be fully funded for the remainder of this fiscal year. Ms. Price noted that Alexander County was awarded $45,242 for 2002-2003.

Ms. Price informed the Board that on October 21, 2002 the Criminal Justice Partnership Advisory Board passed a motion to change the name from Day Reporting Center to Resource Center. Ms. Price explained that this change was made because Robert Guy, Director of the Division of Community Corrections, had made the suggestion that all small programs with a budget less than $200,000 per year become Resource Centers. Ms. Price stated that true Day Reporting Centers, which Alexander County did not have, were open from 8:00 AM to 10:00 PM for 5 days a week, provided transportation for all offenders, and provided a GED teacher on site at all times. Ms. Price noted that there were only 8 to 12 true Day Reporting Centers in the State and that they were all located in urban communities.

Ms. Price stated that the only major change that would occur due to the change from a Day Reporting Center to a Resource Center would be the sentencing of the offender by the judges and the referrals from the Probation Office. Ms. Price explained that as a Resource Center, the center would no longer be an intermediate sanction. Ms. Price stated that intermediate level offenders would still be able to be sentenced to the Resource Center but noted that offenders would have to have a sanction imposed. Ms. Price informed the Board that the Resource Center would still offer the same programs as before.

Commissioner Watts asked Ms. Price if she anticipated the basic operational functions of the Resource Center to change dramatically. Ms. Price replied that the changes would not be very dramatic.

Chairman Odom inquired about the electronic devices used for offenders sentenced to house arrest and asked if offenders paid a rental fee on that equipment. Ms. Price replied that the offender was not required to pay a rental fee on the equipment and explained that the Probation Office monitored the offenders and the equipment.

Commissioner Hammer asked if the Resource Center would be located in the same office as the Day Reporting Center in the past. Ms. Price replied that the Resource Center would be located in the same office in the old Dayton property.

Commissioner Harbinson stated that he was pleased that the State finally funded the Resource Center and conveyed his appreciation to Ms. Price for her hard work and patience.

Chairman Odom recognized David Icenhour, Human Resources/Public Information Director who read aloud a Resolution in Support of the State of North Carolina Adopting the Amber Alert Warning System to Inform Citizens of Missing or Abducted Children. Mr. Icenhour stated that the resolution also urged the General Assembly to enact legislation to implement the AMBER plan across NC to aid in the search and safe return of abducted children. AMBER stands for (America’s Missing: Broadcast Emergency Response).

Mr. Icenhour explained that if implemented, the Amber Alert Warning System would assist law enforcement, parents, and local communities to respond immediately to the most serious child abduction cases. Warnings will be broadcast locally on radio and television stations. Mr. Icenhour also noted that the AMBER Plan was created in 1996 in memory of 9-year old Amber Hagerman who was kidnapped and murdered in Arlington, Texas.

Commissioner Robertson made a motion to approve the Resolution in Support of the State of North Carolina Adopting the Amber Alert Warning System to Inform Citizens of Missing or Abducted Children. Commissioner Watts seconded the motion. The Board voted unanimously in favor of the motion.

Chairman Odom recognized Commissioner Harbinson who presented a Resolution Levying the Third One-Half Cent (1/2) Local Government Sales and Use Tax and Prescribing the Method of Distribution of the Proceeds Within Alexander County.

Commissioner Harbinson stated that in 1992 the NCACC started lobbying for a local option sales tax in order reduce the burden on property taxpayers. Commissioner Harbinson stated that the sales tax was never intended to be a substitute for payments to be received from the State. Commissioner Harbinson discussed the State budget situation and stated that the State had taken reimbursements from all 100 counties in North Carolina to balance the budget. The State has taken $1.2 million from Alexander County, which included $880,000 from this fiscal year.

Commissioner Harbinson explained that the State was allowing local counties to consider raising the sales tax by a half-cent since reimbursements would not be received which would raise the sales tax from 6.5 cents to 7 cents per dollar. Commissioner Harbinson noted that the sales tax would be increased beginning in December 2002 and would remain until June 30, 2003. Commissioner Harbinson stated that hopefully the State would allow counties to retain the half-cent sales tax after July 1, 2003 making Alexander County less dependent on property taxes and more dependent on sales taxes. Commissioner Harbinson stated that sales tax was a fairer tax because everyone paid the tax.

Commissioner Harbinson read minutes from a Commissioners’ Meeting held on May 4, 1998. The Board consisted of Darrell Robertson who was Chairman, Wes Bolick who was Vice-Chairman, Guy Kerley, Tim Glass, and Craig Mayberry. During the meeting, the Board passed a resolution urging the State to give counties authority to levy an additional one-cent sales tax. Commissioner Harbinson reported that the one-cent sales tax was never approved and he commended that Board for unanimously approving the resolution. Commissioner Harbinson stated that Catawba County had passed the resolution to levy the additional half-cent sales tax earlier this month and also quoted Steve Ikerd, Republican Chairman of Catawba Board, who stated "we are still very concerned that the General Assembly is forcing local governments to enact this sales tax to make up for money we will be losing in reimbursements." Commissioner Harbinson also quoted Frank Mitchell, Republican Representative from Iredell County, who stated "I think the counties will be forced to pass the sales tax because they have no other choice. The sales tax is probably the best alternative but the Governor shouldn’t have taken away the county’s money." Commissioner Harbinson stated that Caldwell County had passed the resolution and also quoted Herb Greene, Republican Chairman of the Caldwell County Board, who stated " No commissioner wants to raise taxes; however, without the half-cent sales tax, we will be unable to continue the level of services that we provide now." Alden Starnes, Caldwell County Board member, stated "It is a shame and a disgrace that Raleigh has put us in this position."

Commissioner Harbinson stated that every member of the Alexander County Board of Commissioners had supported this additional sales tax. Commissioner Harbinson read a portion of the minutes from the July 25, 2002 Commissioners’ Meeting in which Commissioner Robertson noted that the current Board, as well as previous boards, had tried to obtain the sales tax to provide some relief to property taxpayers. The minutes also read that Commissioner Robertson felt that the sales tax was a fairer tax because everyone paid the tax. Commissioner Hammer agreed with Commissioner Robertson’s comments at that meeting and stated that he did not understand why the leadership in Raleigh couldn’t comprehend that that the sales tax was fairer and enact the additional sales tax to provide some relief to the property owners.

Commissioner Harbinson stated that County staff had received a letter from Guy Barriger, Town of Taylorsville Mayor, which stated that at the October 1, 2002 Meeting, the Town Board voted unanimously to support the Alexander County Board of Commissioners to adopt the resolution to levy an additional half-cent sales tax. Commissioner Harbinson mentioned that the sales tax would not only benefit Alexander County taxpayers but also taxpayers in the Town of Taylorsville. Commissioner Harbinson noted that the best summary of the importance of the additional half-cent sales tax came from an email that Commissioner Hammer sent to local legislators which stated "We firmly believe that a local option half-cent sales tax is the most vital answer to the problem. The sales tax will not be burdensome to property owners and is the fairest of all taxes. Without the sales tax, the property owners will be asked to shoulder the financial burden which is not of their making."

Commissioner Harbinson stated that 77 out of 100 North Carolina counties had adopted the resolution to levy the additional half-cent sales tax. Commissioner Harbinson noted that there were 25 counties located within a 60-mile sweep of Alexander County. Of those 25 counties, 22 of them have adopted resolutions to enact the sales tax. Commissioner Harbinson felt that the vote tonight would be a vote to decrease property taxes and to be more dependent on sales taxes rather than property taxes.

Commissioner Harbinson made a motion to adopt the Resolution Levying the Third One-Half Cent Local Government Sales and Use Tax and Prescribing the Method of Distribution of the Proceeds Within Alexander County. Commissioner Harbinson’s motion also included that the monies be placed in Contingency so that at some future date, the Board could determine what percentages needed to be appropriated for ongoing services and to replenish the Fund Balance used this year to balance the budget in response to the State taking $1.2 million in reimbursements from Alexander County. Commissioner Robertson seconded the motion.

Chairman Odom asked for any further discussion before the vote. Commissioner Hammer stated that he felt that the sales tax was the fairest way to tax people because everyone paid the sales tax where only a few paid property taxes. However, Commissioner Hammer stated that he did not like to be forced in a corner to enact a tax on citizens just because the State could not balance the budget. Commissioner Hammer stated that he did not like the position that the State had put Alexander County and all other counties in North Carolina in. Commissioner Hammer stated that he would like to make a Friendly Amendment to Commissioner Harbinson’s motion that the monies received from the additional half-cent sales tax be placed in reserve and saved until the next fiscal year’s budget was prepared to guarantee that funding would be there in case the State budget was in worse shape than this year.

Commissioner Harbinson stated that he would not accept Commissioner Hammer’s Friendly Amendment and explained that he felt that the Board should meet with the County Manager to see what the immediate needs were. Commissioner Harbinson stated that the Board would take into consideration the replenishment of the Fund Balance but felt that if all monies received from the sales tax were put in reserve, the Board would be tying its own hands.

Commissioner Hammer stated that he understood Commissioner Harbinson’s point but noted that the Fund Balance was down to approximately 8% and that it was uncertain if the State would have a balanced budget next year. Commissioner Hammer stated that he felt the money should be saved until next year in case the County was put into another budget crisis.

Commissioner Watts mentioned that Alexander County did not generate a lot of its own sales tax because many residents went to other counties to shop. Commissioner Watts stated that the additional half-cent sales tax would actually bring in more money to the county than what was generated locally. Commissioner Watts stated that the County had been backed into a corner but felt that there was no other choice.

Commissioner Robertson stated that every year that he had been a commissioner, the Board had sent a letter to the NCACC and to the General Assembly requesting a local option sales tax. Commissioner Robertson explained that at one time the Board requested the sales tax and offered to lower the property tax dollar for dollar to make a true shift of tax burden. Commissioner Robertson felt that the County had no choice but to enact the sales tax because if not, the impact would be put on the property owners or services would be severely curtailed. Commissioner Robertson stated that, in looking at numbers projected from the additional sales tax, it would take 3 years to get back to the funding level that Alexander County would have been at this year if the General Assembly had not taken the reimbursements. Commissioner Robertson stated that he was concerned about the next fiscal year and if the General Assembly would take the sales tax away as they did the reimbursements. Commissioner Robertson stated that he would like the Board to consider Commissioner Hammer’s request and felt that the Board should make sure that the Fund Balance was as stable as possible.

Commissioner Harbinson stated that if the State had not taken the reimbursements and suddenly gave the County an additional sales tax, he would be the first in favor of putting all the money received from the sales tax in the Fund Balance in order to lower taxes. However, the State took $1.2 million and gave the counties the sales tax to help make up for that loss. Commissioner Harbinson stated that if the County Manager came back and said that the budget was in good shape and there were no immediate needs, he would agree to put all of the money generated from the sales tax in the Fund Balance. Commissioner Harbinson stated that he understood Commissioner Hammer’s point but felt that the Board should leave its options open.

Commissioner Watts stated that the sales tax revenues to be generated were scheduled to be distributed monthly instead of quarterly after July 1, 2003. Commissioner Watts asked if this additional sales tax beginning in December 2002 would be distributed monthly or quarterly. Rick French, County Manager, replied that the sales tax would be generated quarterly.

Commissioner Hammer again stated that he would like to see the monies generated from the sales tax placed into the Fund Balance and explained that the Board did not know what would happen with the State budget next year. Commissioner Hammer stated that it was possible that the State would not allow counties to enact the sales tax after June 30, 2003 and felt that the monies generated from the sales tax from December 2002 until June 2003 should be saved in case of a budget crisis. Commissioner Hammer stated that he would not vote to enact the sales tax if the monies were not placed into the Fund Balance.

Chairman Odom read a portion of the minutes from the July 25, 2002 Commissioners’ Meeting where he stated that he did not want citizens to think that Raleigh was doing Alexander County a favor by enacting the sales tax and urged citizens not to send any thank you letters. Chairman Odom applauded the Board’s eagerness to secure this half-cent sales tax, especially during this political season. Chairman Odom stated that he held both political parties in Raleigh responsible for this budget crisis and for passing the burden onto counties.

Commissioner Robertson noted that the true impact on Alexander County was actually much more than $1.2 million due to the increase of Medicaid expenses.

There being no further Board comment, the Board voted 4 in favor of the motion (Commissioners Harbinson, Odom, Robertson, and Watts) and one against the motion (Commissioner Hammer). Motion carried.

Russell Greene, Fire Marshal, gave an update on the following water line projects:

1. Mr. Greene stated that work had begun on the Millersville Road water line after a 2-week delay. Mr. Greene explained that the project was delayed because the contractor wanted to finish two other projects before beginning the Millersville project so that he could begin the project and continue work until complete. Mr. Greene stated that the 6,500 feet of 12-inch line should be installed in approximately 3 weeks which will enable the county to sell water to EnergyUnited to serve residents on the eastern side of Alexander County. Mr. Greene stated that the contractor had strung pipe along the side of the road on Monday, October 28, 2002 and had came in this morning, October 29, 2002, to put pipe in the ground and realized the ground was too wet to work. Mr. Greene stated that they would be back at the end of the week and would remain on the job until completed. Mr. Greene stated that staff anticipated the connection with EnergyUnited to be made by the first of 2003 if no engineering problems or State delays were incurred.
2. Mr. Greene stated that the Liledoun Road project had been advertised in The Taylorsville Times on October 23, 2002. Staff plans to open bids on November 7, 2002 at the County Administration Building. Mr. Greene noted that the Board could take action on the bid at the November 12, 2002 Commissioners’ Meeting to begin work around the first of 2003.
3. Mr. Greene discussed the $400,000 Rural Center Grant for Rink Dam Road and stated that there had been some delay on the project due to the wait for approval from the NC Department of Transportation to attach the water line to the bridge. Mr. Greene stated that the NCDOT had approved the water line attachment and noted that the project would be ready to submit to the State for approval the first week of November.
4. Mr. Greene stated that the field survey on the Antioch Church Road piece was two-thirds complete. Mr. Greene explained that the engineering firm for the project walked the area first so when the drawings were completed in the office, staff wouldn’t need to come back out and correct mistakes made. Mr. Greene stated that the field survey would be complete in the next week and anticipated construction on the project throughout the first part of 2003.

Chairman Odom presented the following appointments and reappointments:

1. JOINT NURSING & ADULT CARE COMMUNITY ADVISORY COMMITTEE

Appoint Angela Johnson 3 years

2. COUNCIL ON AGING

Appoint Annie Bennett 3 years

3. WPCOG SISTER CITIES ASSOCIATION

Reappoint Nancy Coley 1 year

Commissioner Watts made a motion to approve the appointments and reappointments as presented. Commissioner Robertson seconded the motion. The Board voted unanimously in favor of the motion.

OTHER BUSINESS

The issue of the lawsuit against the State for reimbursements was discussed during Other Business.

Commissioner Hammer stated that he had been made aware that several counties had joined together in a lawsuit against the State of North Carolina to get back reimbursements taken from all North Carolina counties. Commissioner Hammer made a motion to enter into the lawsuit with the other counties in order to try to get back reimbursements.

Chairman Odom felt that the Board and staff should consult with the County Attorney and the NCACC to get information on costs and benefits included in the lawsuit before moving forward with this action.

Rick French, County Manager, stated that several counties had joined in the lawsuit as well as a number of smaller towns. Mr. French informed the Board that it would cost $1,000 to enter into the lawsuit but stated that he was not aware of further costs that would be incurred. Mr. French stated that Boyce & Isley, Attorneys from Raleigh, were handling the lawsuit.

Commissioner Robertson noted that Cabarrus County had passed a resolution to enter into the lawsuit which stated that "the cost would not exceed 15% of any total monetary recovery." Commissioner Robertson stated that he would second the motion but noted that he would like to table the issue until the November 12, 2002 Commissioners’ Meeting to allow time to contact the County Attorney and get the details and terms of the lawsuit before taking action. Commissioner Robertson stated that it was possible that if the counties moved forward with the lawsuit, there could be repercussions with grant monies forthcoming to those counties involved.

Commissioner Harbinson stated that he would like to table the issue completely until the Board and staff had enough time to look into the matter and get the details. Commissioner Harbinson stated that it was his understanding that the lawsuit was a Class Action which meant that if the plaintiffs were successful, all North Carolina counties would benefit. Commissioner Harbinson suggested that if this were the case, Alexander County would receive the benefit without having to pay an attorney.

Commissioner Robertson stated that it was his understanding that only the participants of the lawsuit would benefit if successful. Commissioner Robertson agreed that the Board and staff needed to research the details before taking action.

Commissioner Harbinson stated that the lawsuit was no longer against the Governor but against Nick Tolson, Chief of the NC Department of Revenue.

After discussion, Commissioner Hammer agreed to withdraw his motion until more information was gathered and the Board discussed the issue at a later date.

Commissioner Watts asked Mr. French to contact the County Attorney in order to research the legal aspects of the lawsuit and to determine what grants, if any, were pending due to the lawsuit.

1. Budget Amendments #7, #8, and #9.
2. Minutes from October 1, 2002 Regular Meeting.

Commissioner Robertson made a motion to approve the Consent Agenda. Commissioner Watts seconded the motion. The Board voted unanimously in favor of the motion.

Commissioner Watts made a motion to enter into Closed Session at 7:55 PM to discuss contractual matters and personnel issues pursuant to N.C.G.S. 143-318.11(a)(5 & 6). Commissioner Hammer seconded the motion. The Board voted unanimously in favor of the motion.

There being no further business, Commissioner Harbinson made a motion to adjourn at 8:10 PM. Commissioner Robertson seconded the motion. The Board voted unanimously in favor of the motion.

 David S. Odom, Chairman                 Jamie C. Millsaps, Clerk to the Board