050117wsmHARNETT COUNTY BOARD OF COMMISSIONERS
Minutes of Work Session - Budget
May 1, 2017
The Harnett County Board of Commissioners reconvened in work session on Monday, May 1,
2017, in the County Manager's Conference Room, County Administration Building, 102 East
Front Street, Lillington, North Carolina.
Members present: Gordon Springle, Chairman
Joe Miller, Vice Chairman
Barbara McKoy, Commissioner
Howard Penny, Commissioner
Abe Elmore, Commissioner
Staff present:
Joseph Jeffries, County Manager
Paula Stewart, Deputy County Manager
Dwight Snow, County Attorney
Kimberly Honeycutt, Finance Officer
Allen Coats, Deputy Finance Officer
Margaret Regina Wheeler, Clerk
The following agenda was before commissioners:
> Benhaven Emergency Services, Inc. requests consideration of a resolution following
a public hearing authorizing and approving the financing of a fire truck.
➢ 2017/18 Budget Discussion
➢ Adjourn
Jimmy Riddle, Emergency Services Director, presented Benhaven Emergency Services, Inc.
requests for consideration of a resolution authorizing and approving the delivery of an
installment fmancing agreement by Benhaven Emergency Services, Inc, following a public
hearing, for a tax-exempt loan related to the purchase of a replacement fire truck. Benhaven
Chief Andy Thomas reported Benhaven Emergency Services, Inc. recently lost their first out
Engine 1344 due to a motor vehicle accident. He said they have found a demo replacement truck
for $458,000. Chief Thomas said they have received proceeds from the insurance company and
this agreement would provide for a loan not to exceed $310,000 to pay the cost of acquiring a
fire truck and certain related equipment, and if applicable, to pay certain expenses incurred in
connection with the delivery of the agreement. It was the consensus of the Board to hold a
public hearing and consider approval of the resolution authorizing and approving the delivery of
an installment financing agreement for a tax-exempt loan related to the purchase of a
replacement fire truck at their upcoming May 15, 2017 regular meeting.
Mr. Jeffries told the Board staff was close to presenting a proposed 2017/18 balance budget for
discussion.
May 1, 2017 Work Session Minutes
Harnett County Board of Commissioners
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Mr. Jeffries discussed a revised request from the Board of Education for approval of their revised
2016-2017 Capital Needs Assessment to include the purchase of three (3) yellow buses costing
$265,797 and a Skyjack 4632 for auxiliary services costing $18,300 totaling $284,097. The
Board of Education had intended to use $263,000 of remaining capital funds, and approximately
$31,000 left over in teachers' supplement, to purchase the three yellow buses however, they are
now requesting new monies stating their remaining capital funds are allocated for other
expenses. Mr. Jeffries said staff has been working hard to fmd additional funding and have been
able to identify $122,000 to go towards the bus purchases. Mr. Jeffries recommended shifting
money from Harnett County Economic Development's sales tax expansion allocation to pay for
the remainder of the new buses. He noted Harnett County schools are currently using three
buses on loan from the state for one year and if they ordered the new buses now they should be
able to get them around the middle of July. The group discussed economic development
incentive payments.
Commissioners noted the Board still had not gotten a balance sheet from the Board of Education
as requested. The group discussed the Board of Education's capital money and fund balance.
Commissioners directed Mr. Jeffries to request a financial statement from the Board of
Education.
Commissioners questioned the Board of Education's current request for $900,000 to fund the
additional fifteen (15) teacher positions required by legislation to reduce class sizes
given they already received that funding from the legislature. Mr. Jeffries noted legislative
changes would require 21 kids per classroom in 2018/19 that would require another 10 to 12 new
teachers. The group also discussed where the 22 new teachers would be housed. In addition to
the $1.2 million request, Mr. Jeffries sought direction regarding Interim Superintendent Fleming
request for two additional teachers for dual language. Commissioners directed Mr. Jeffries to
fmd out if the two additional teacher positions requested for dual language have they been
approved for hire by the Department of Public Instruction
Mrs. Honeycutt responded that money towards capital does not affect low -wealth funding. She
discussed low -wealth funding in detail. The County's average appropriation is $1024 per pupil.
Mrs. Honeycutt explained how the $3.8 tax expansion money is distributed, reporting over
58% of the funds went to the Board of Education this year. She noted $2.1 million of the sales
tax expansion will go toward teachers' supplements next year.
Commissioners continued to discuss the Board of Education's fund balance. It was the
consensus of the Board to approve, during their upcoming regular meeting, the allocation of
$122,000 additional monies toward bus purchases as well as approve of the purchase of three
school buses and a skyjack. It was also the consensus of the Board to advise the Board of
Education that they would need to fund the remainder of these purchases with their fund balance.
Mr. Coats distributed a detailed cost estimate for $25,740,094 for the new Benhaven School
Project. He noted the Board had previously authorized the sale of $30 million in bonds
to cover the new Benhaven School costs. Staff suggested selling the $30 million in bonds and
using the remaining funds to expand the Overhills HS cafeteria for $530,220 and up -fit
May 1, 2017 Work Session Minutes
Harnett County Board of Commissioners
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Benhaven for $3,729,686. Mr. Coats reiterated that the only project the Board has approved at
this time is the new Benhaven School Project. Mr. Coats said we had to give the Local
Government Commission (LGC) a final number today. He said these funds may be used for
construction, renovations and land acquisition for schools however unused funds will sit in a
bank account until allocated for the next school. Mr. Coats noted bond proceeds are the cheapest
borrowing rate but the cost issuance of bonds is one of the highest. He stated the LGC must
authorize the amount of bonds that can be sold but typically like to see bids. He said we
currently have an architectural estimate of over $3.7 million to up -fit Benhaven. Mr. Jeffries
said there would be discussions with CCCC regarding programs and the use of the old Benhaven
facility prior to renovations. It was the consensus of Board to sale $30 Million in bonds.
Commissioner Elmore moved to adjourn the meeting at 12:16 pm. Vice Chairman Miller
seconded the motion, which passed unanimously.
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May 1, 2017 Work Session Minutes
Harnett County Board of Commissioners
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