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HomeMy WebLinkAbout110116wsa Agenda Package9:00 am 9:30 am 9:45 am 10:00 am 10:30 am 10:45 am 11:15 am Harnett County Board of Commissioners Work Session Tuesday, November 1, 2016 9:00 am Board of Education's requests: (1) Funding ($200,000) for four additional teaching positions; and (2) Funding to construct an additional entrance/exit to North Harnett Primary School. Salary Compression Increase for Cooperative Extension employee, Hamett County Cooperative Extension Director Tyrone Fisher Discuss Pay Plan Committee Recommendation Discuss Harnett County Fiscal Policy Guidelines County Manager's Report: 1) November 7, 2016 Regular Meeting agenda review 2) Updated Calendar of Events for 2017 SOV Closed session Adjourn 110116wsa HC BOC Page 1 HARNEIT COUNTY BOARD OF EDUCATION William ff. Morris. Chairman Howard L Penny. Jr .• Vice-Chairman Vivian W. Bennett James Ray Bryant Roger Farina Charles P. Bullock, Board Attorney Stanley P. Williams II, Superintendent Dr. Nancy C. Holmes, Assistant Superintendent Vera D. Jones. Assistant Superintendent W. Brooks Matthews, Assistant Superintendent Monica J. Thompson, Assistant Superintendent Brookie B Ferguson. Interim Asst. Superintendent HARNETT COUNTY SCHOOLS OFFICE OF SUPERINTENDENT RESOLUTION OF THE HARNETT COUNTY BOARD OF EDUCATION REQUESTING FUNDING FOR ADDITIONAL TEACHING POSITIONS WHEREAS, the Hamett County Board of Education recognizes the need to increase student achievement at our low perfonning schools; and WHEREAS, on October 4, 2016, the Harnett County Board of Education approved a resolution requesting funding for four (4) additional teaching positions at a cost of fifty thousand dollars ($50,000) each for a total of two hundred thousand dollars ($200,000). These positions will be used to benefit students at our schools that have been designated as low perf onning such as Harnett Primary School, Johnsonville Elementary School, and South Hamett Elementary School; NOW, THEREFORE, BE IT RESOLVED that the Hamett County Board of Education appreciates the Board of Commissioners' willingness to work with the Board of Education to fund additional teaching positions. This resolution was duly considered and approved by the Hamett County Board of Education at its meeting on October 4, 2016 . HARNETT COUNTY BOARD OF EDUCATION By: ---~-'-'-~-""'-~ __ J/._._?1lnuA-.....-...· ---- Attest: ___ )i_i_ll-iam ___ "---..._H_. _M_o_~_· s~·-C-~~ai-· rm_:an===~~~-- StanJey P. Williams II, Secretary P. O. Box 1029, L/1/lngton, NC 27546 • Phone: 910-893-8151 • Fax: 910-893-8839 110116wsa HC BOC Page 2 HARNETT COUNTY BOARD OF EDUCATION William H. Morris, Chairman Howard L. Penny, Jr., Vice-Chairman Vivian W. Bennett James Ray Bryant Roger Farina Charles P. Bullock, Board Attorney Stanley P. Williams II, Superintendent Dr. Nancy Holmes, Assistant Superintendent Vera D. Jones, Assistant Superintendent W. Brooks Matthews, Assistant Superintendent Monica J. Thompson, Assistant Superintendent Brookie Ferguson, Interim Assistant Superintendent P.O. Box 1029 Lillington, NC 27546 Phone: 910-893-8151 Fax: 910-893-8839 HARNETT COUNTY SCHOOLS October 14, 2016 Mr. Joseph Jeffries, Manager County of Harnett 102 East Front Street Lillington, North Carolina 27546 Dear Mr. Jeffries: OFFICE OF SUPERINTENDENT At the January 11, 2016 Board of Education meeting, the Board agreed to and accepted a parcel of land from Stuart Surles and Jimmy Johnson . The Board accepted this land with the understanding a road would be constructed, adhering to DOT standards, as an additional entrance/exit to North Harnett Primary School. This road request is due to concerns of security due to limited access to the North Harnett Primary School. The Board of Education is requesting funding for proposed street. On behalf of the Harnett County Board of Education, I thank you for your consideration . Stan P. Williams 110116wsa HC BOC Page 3 Good afternoon Tyrone, As we discussed, effective July 1, 2015 NC State Extension raised the base salary for field staff to $35,000.00 (Bachelo r's Degree) and $40,000.00 (Master's Degree). To address issues associated with salary compression. they also adjusted salaries of active NC State Extension employees that fell below the new base salaries to $36,000.00 (Bachelor's Degree) and $42,000.00 (Master's Degree). It is important that the Cooperative Extension Program at N.C. A& T make similar adjustments in order to maintain competiveness, control salary inequities, retain a skilled workforce, and to reduce the risk of demotivating the work environment. Compression adjustments should be included in the November 30, 2016 check, in which payroll is due by November 10. Based o~current salary ($39,422.00), the compression adjustment of $2,578.00 (plus fringe benefits) would increase her salary to $42,000.00. I am requesting that Harnett County pay their 40% cost-share amount of the salary compression increase plus fringe benefits as follows: Compression adjustment: $2,578.00 Compression Social Security State Retirement Total Adjustment Harnett County 1,031.20 76.91 162 .07 $1,270.18 40% CEPA&T 1,546.80 120.30 253.50 $1,920.60 60% You have inquired on several occasions if we would be able to increase~alary based on the above information. Thank you for your support and assistance in this matter. As you indicated you will contact me by the end of the week. Lonnette Lonnette Marsh, M.Ed. Interim Regional Program Coordinator. Western Region The Cooperative Extension Program North Carolina A& T State University Coltrane Hall, Room 216 P.O. Box 21928 Greensboro, NC 27420 Office: 336-285-4692 Main: 336-334-7956 Fax : 336-334-7298 Klmarsh2@ncat.edu -------NOTICE: This e-mail correspondence is subject to Public Records Law and may be disclosed to third parties. -------- 2 110116wsa HC BOC Page 4 Fiscal Policy Guidelines For: Harnett COUNTY NORTH CAROLINA Harnett County, North Carolina Originally Adopted: May 7, 2012 Proposed Amendments as of 10.17.16 110116wsa HC BOC Page 5 FISCAL POLICY GUIDELINES Harnett County, North Carolina -Harnett --COUNTY TABLE OF CONTENTS Page Objectives 2 Capital Improvement Budget Policies 3-4 Debt Policies 5 Reserve Policies 6 Budget Development Policies 7 Education Funding Policies 8 Cash Management/ Investment Policies 9-10 Enterprise Funds Policy 11-12 Summary of Policy Ratios l3 110116wsa HC BOC Page 6 FISCAL POLICY GUIDELINES Harnett Harnett County, North Carolina COUNTY FISCAL POLICY GUIDELINES -OBJECTIVES This fiscal policy will influence and guide the financial management practice of Harnett County, North Carolina. A fiscal policy that is adopted, adhered to, and regularly reviewed is recognized as the cornerstone of sound financial management. Effective fiscal policy: • Contributes to the County's ability to insulate itself from fiscal crisis, • Enhances short term and long term financial credit ability by helping to achieve the highest credit and bond ratings possible, • Promotes long-term financial stability by establishing clear and consistent guidelines, • Directs attention to the total financial picture of the County rather than single issue areas, • Promotes the view of linking long-run financial planning with day to day operations, and • Provides the County Staff, the County Board of Commissioners and the County citizens a framework for measuring the fiscal impact of government services against established fiscal parameters and guidelines. • This policy will be reviewed periodically by County staff and any changes will be approved by the Board of Commissioners. To the se ends, the following fiscal policy statements are presented. 2 110116wsa HC BOC Page 7 FISCAL POLICY GUIDELINES Harnett Harnett County, North Carolina COUNTY CAPITAL IMPROVEMENT BUDGET POLICIES 1. It is the responsibility of the County Board of Commissioners to provide for the capital facilities necessary to deliver municipal services to the citizens of the County, as well as facilities for the Harnett County Public Schools and the Central Carolina Community College system. 2. The County will consider all capital improvements in accordance with an adopted Capital Improvement Plan. 3. The Capital Improvement Plan is inclusive of Capital Improvements (renovations), Capital Replacement (vehicles and heavy equipment) and Major Capital Projects (new buildings). 4 . The County will develop a five-year Capital Improvement Plan and review and update the plan annually. The Harnett County Public Schools and the Community College System will submit their respective five-year capital improvement requests annually and will provide a prioritization for the improvements within their request for the County Commiss ioner's review. 5. The County will enact an annual capital budget based on the five-year Capital Improvement Plan, while considering changes in population , changes in real estate development, or changes in assumptions in the capital budget projections. 6. The County, in consultation with the Hamett County Public School and Community College Systems, will coordinate development of the capital improvement budget with development of the operating budget. Future operating costs associated with new capital improvements will be projected and included in operating budget forecasts. 7. The Capital Improvement Plan will include the estimated costs for the County to maintain all County, Public School and Community College assets at a level adequate to protect the public 's welfare and safety, the County's capital investment and to minimize future maintenance and replacement costs. A maintenance and replacement schedule will be developed and followed based upon these estimates. 3 110116wsa HC BOC Page 8 FISCAL POLICY GUIDELINES Harnett County, North Carolina '1liiiill!Harnett --COUNTY 8. The County, in consultation with the Hamett County Public School and Community College Systems, will identify the estimated costs and potential funding sources for each capital project proposal before it is submitted for approval. 9. The County will pursue the most cost effective financing consistent with prudent financial management. 4 110116wsa HC BOC Page 9 FISCAL POLICY GUIDELINES Harnett County, North Carolina '1fiiii'l!Harnett a!(IJ COUNTY DEBT POLICIES 1. The County will confine long-term borrowing to capital improvements or projects that cannot be financed from current revenues except where approved justification is provided. 2. The County will take a balanced approach to capital funding utilizing debt financing, capital reserves and pay-as-you-go funding that will provide the least financial impact on the taxpayer. Pay-as-you-go funding will come from budgeted appropriations. 3. When the County finances capital improvements or other projects by issuing bonds or entering into capital leases, it will repay the debt within a period not to exceed the expected useful life of the project. Target debt ratios will be annually calculated and included in the review of financial trends. 4. Net debt as a percentage of estimated market value of taxable property shall not exceed 2 .5%. Net debt is defined as any and all debt that is tax-supported. 5. Debt Service expenditures as a percent of total governmental fund expenditures should not exceed 15.0%. Should this ratio exceed 15%, staff must request an exception from the Board of Commissioners stating the justification and expected duration of the policy exception. 6. The County will retire tax anticipation debt, if any, annual ly and will retire bond anticipation debt within six months after completion of the project. 7. Payout of aggregate outstanding tax-supported debt principal shall be no less than 50.0% repaid in 10 years. 5 110116wsa HC BOC Page 10 FISCAL POLICY GUIDELINES Harnett County, North Carolina - Harnett COUNTY RESERVE POLICIES l. The County will maintain a mm1mum Unassigned Fund Balance, as defined by the Governmental Accounting Standards Board, at the close of each fiscal year equal to 15% of General Fund Expenditures with a targeted Unassigned Fund Balance equal to 20% of General Fund Expenditures. 2. In the event that funds are available over and beyond the 20% targeted amount, those funds may be transferred to a capital reserve fund, a capital projects fund, to pay-down debt or to fund other one-time uses. Such transfers or uses shall be approved by the Board of County Commissioners in conjunction with a staff recommendation based upon a fund balance analysis to be completed within six months of the close of each fiscal year taking into consideration the prior year's financial statements, current year-to-date budget performance, current property tax valuations and the County's most recently adopted capital improvement plan. 3. The County Board may, from time-to-time, utilize fund balances that will reduce Unassigned Fund Balance below the 15% minimum for the purposes of a declared fiscal emergency or other such purpose as to protect or enhance the long-term fiscal security of the County. In such circumstances, the Board will adopt a plan to restore the Unassigned Fund Balance to the target level within 36 months. If restoration cannot be accomplished within such time period without severe hardship to the County, then the Board will establish a different but appropriate time period. 6 110116wsa HC BOC Page 11 FISCAL POLICY GUIDELINES Harnett Harnett County, North Carolina COUNTY BUDGET DEVELOPMENT POLICIES 1. The Budget Process will be compliant with the North Carolina Local Government Budget and Fiscal Control Act. 2. One-time or other special revenues will not be used to finance continuing County operations but instead will be used for funding special projects. 3. The County will pursue an aggressive policy seeking the collection of current and delinquent property taxes, utility, license, permit and other fees due to the County. 4. County staff will generate reports that show actual revenues and expenditures compared to the budget and will present this to the County Board on a monthly basis. 5. Budget amendments will be brought to the County Board for consideration as needed. 7 110116wsa HC BOC Page 12 FISCAL POLICY GUIDELINES Harnett Harnett County, North Carolina COUNTY EDUCATION FUNDING POLICIES l. It is the intent of the County to appropriate funding to the Board of Education to assure that the necessary resources are provided for current expense and to meet the low wealth funding requirements . 2. The County will provide current expense funding based upon the most recent known 2nd month average daily membership (ADM) times the most recent known Three-Year Average of Appropriations as determined by the NC Department of Public Instruction. 3. The County will provide funding for an annual classroom teacher supplement to those teachers who were employed as of September 1 of the preceding fiscal year. To remain eligible for the payment, the teacher must remain in the employment of the Hamett County School system, as a teacher, at the time the payment is made. For purposes of this funding, a Teacher is defined as those individuals who are included in the Public School Personnel Summary provided by the NC Department of Public Instruction. 4. The County will provide funds for Capital and Capital Maintenance. The source of funding will be a portion of the sales tax expansion basis and will be disbursed based upon the Board of Education's latest approved Capital Improvement Plan (CIP) at the discretion of the Board of County Commissioners. 5. The County will detail the amounts to be budgeted under this policy as part of the annual budget ordinance. 8 110116wsa HC BOC Page 13 FISCAL POLICY GUIDELINES Harnett County, North Carolina ~Harnett --COUNTY CASH MANAGEMENT / INVESTMENT POLICIES I. It is the intent of the County that public funds will be invested to the extent possible to reduce the dependence upon property tax revenues. Funds will be invested with the chief objectives of safety of principal, liquidity, and yield, in that order. All deposits and investments of County funds will be in accordance with N.C.G .S. 159. 2. Up to one-half (50%) of the appropriations to Non-County Agencies and to non debt-supported capital outlays for County Departments can be encumbered prior to December 31. Any additional authorization shall require the County Manager's written approval upon justification. The balance of these appropriations may be encumbered after January 1, upon a finding by the County Manager that there is a reasonable expectation that the County's Budgeted Revenues will be realized. 3. The County will use a Central Depository to maximize the availability and mobility of cash for all funds that can be legally and practically combined. 4. Cash Flows will be forecasted and investments will be made to mature when funds are projected to be needed to meet cash flow requirements. 5. Liquidity: No less than 20% of funds available for investment will be maintained in liquid investments at any point in time. 6. Maturity: All investments will mature in no more than thirty-s ix (36) months from their purchase date. 7. Custody: All investments will be purchased "payment-verses-delivery" and if certificated will be held by the Finance Officer in the name of the County. All non-certificated investments will be held in book-entry form in the name of the County with the County's third party Custodian (Safekeeping Agent). 8. Authorized Investments: The County may deposit County Funds into: Any Board approved Official Depository, if such fund s are secured in accordance with NCGS-159 (31 ). The County may invest County Funds in : the North Carolina Capital Management Trust, US Treasury Securities, US Agency Securities specifically authorized in GS-159 and rated no lower than "AAA", and Commercial Paper meeting the requirements of NCGS-159 plus having a national bond rating. 9. Diversification: No more than I 0% of the County's investment funds may be invested in a specific company's commercial paper and no more than 25% of the County 's investment funds may be invested in commercial paper. No more than 9 110116wsa HC BOC Page 14 FISCAL POLICY GUIDELINES Harnett County, North Carolina - Harnett COUNTY 25% of the County's investments may be invested m any one US Agency's Securities. I 0. Allocation: Investment income will be allocated to each participating fund or account based on a fair and equitable formula determined by the Finance Director. 10 110116wsa HC BOC Page 15 FISCAL POLICY GUIDELINES Harnett Harnett County, North Carolina COUNTY ENTERPRISE FUNDS POLICY The County maintains Enterprise Funds (primarily water and wastewater) that are self-sustaining for both operational and capital purposes. The Enterprise Funds will adhere to the County' Fiscal Policy with any exceptions being reported in this section. • These policies will allow for orderly expansion of services and to allow operation within the financial framework insuring efficiency while providing necessary services. • They promote long-term financial stability. • They insure the future viability of the system while providing for predictable and reasonable rate increases. Budget Policies: • Enterprise Funds will develop a multi-year capital improvement plan, which will be reviewed and updated annually. • Any improvements required to meet new regulatory requirements or to meet changes in the service demands will be included in either the capital improvement plan or the annual budget request. • Service rates will be reviewed annually as part of the budget process. • Service rates will be adjusted as needed to provide adequate funding for the proper operation, maintenance, and expansion of the system. • Service rates will be adjusted as necessary to meet bond covenants, debt service obligations, and Adopted Financial Policy Guidelines. Debt Policies: • The Enterprise Fund is responsible for setting rates and charges at such a level which maintains the "self-supporting" nature of the fund. • The County will target a minimum amount of equity funding of I 0% of the Enterprise Fund capital improvement plan on a five-year rolling average. • The Enterprise Fund will comply with all applicable bond covenants. 11 110116wsa HC BOC Page 16 FISCAL POLICY GUIDELINES Harnett County, North Carolina - Harnett COUNTY • The Enterprise Fund will maintain a debt service coverage ratio as defined by the General Indenture of the Enterprise System Revenue Bonds. These minimum requirements are summarized to be: o l .20x debt service coverage on Parity Indebtedness (Revenues for this measure may include 20% of the balance in the Surplus Account at the end of the preceding Fiscal Year) o l .OOx debt service coverage of Parity Indebtedness, General Obligation Indebtedness, Subordinate Indebtedness, Other Indebtedness, and any amount due to the Qualified Reserve Fund or Qualified Reserve Fund Substitute. Reserve Policies: • The County has adopted a comprehensive strategy for the long-term stability and financial health of each Enterprise Fund that provides for annual increases in fund reserves to an established goal of 50% of operating and maintenance expenses. 12 110116wsa HC BOC Page 17 FISCAL POLICY GUIDELINES Harnett County, North Carolina - Harnett COUNTY SUMMARY OF KEY POLICY RATIOS Ratio Tax Supported Debt to Assessed Value: Tax Supported Debt Service vs. Expenditures: Tax Supported I 0-Year Payout Ratio: General Fund Unassigned Fund Balance as a Percent of Operating Budget: Enterprise Fund Pay-go Capital (5-year Rolling Average): Enterprise Fund Parity Debt Service Coverage (with 20% of Surplus Account): Enterprise Fund Debt Service Coverage on all Jndebtedness: Enterprise Fund Reserves as a Percent of Operating and Maintenance: 13 Policy <2.5% <15.0% >50.0% >15.0% >10.0% > l.20x >1.00x >50% 110116wsa HC BOC Page 18 CALENDAR OF EVENTS FOR ADOPTION OF 2017 SCHEDULE OF VALUES, STANDARDS, AND RULES FOR HARNETT COUNTY, NORTH CAROLINA Reference: North Carolina General Statue's 105-317c DATE DAY October 17, 2016 Monday November 4 , 2016 Wednesday November 21, 2016 Monday November 29, 2016 Tuesday December 1,2016 Thursday December 7 ,2016 Wednesday December 14 , 2016 Wednesday December 19 , 2016 Monday January 3 ,2017 Tuesday DESCRIPTION Present Schedule of Values to the Hamett County Board of Commissioners for Information Advertise in newspaper that the Schedule of Values are available for public inspection in the Tax Assessor's Office at 305 W. Cornelius Hamett Blvd., Ste. 101 Lillington, NC 27546 and advertise date of Public Hearing November 21 , 2016. Public Hearing for the Schedule of Values Adoption of the Schedule of Values. First Public Notice of Adoption of Schedule of Values Second Public Notice of Adoption of Schedule of Values Third Public Notice of Adoption of Schedule of Values Fourth Public Notice of Adoption of Schedule of Values This is final notice Last Day of Appeal of Schedule of Values Before the North Carolina Property Tax Commission 110116wsa HC BOC Page 19