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HomeMy WebLinkAbout042517wsmHARNETT COUNTY BOARD OF COMMISSIONERS Minutes of Work Session April 25, 2017 The Harnett County Board of Commissioners met in work session on Tuesday, April 25, 2017, in the County Manager's Conference Room, County Administration Building, 102 East Front Street, Lillington, North Carolina. Members present: Staff present: Gordon Springle, Chairman Joe Miller, Vice Chairman Barbara McKoy, Commissioner Howard Penny, Commissioner Abe Elmore, Commissioner Joseph Jeffries, County Manager Paula Stewart, Deputy County Manager Dwight Snow, County Attorney Kimberly Honeycutt, Finance Officer Margaret Regina Wheeler, Clerk Chairman Springle called the meeting to order at 9:00 am and led the Pledge of Allegiance and invocation. The following agenda was before commissioners: ➢ 2017/18 Budget Discussion - Health Insurance Presentation by Employee Benefits Committee > County Manager's Report: - May 1, 2017 Regular Meeting Agenda Review > Adjourn On behalf of the Employee Benefits Committee, Tracy Tant presented the following recommendations for the 2017-2018 benefits plan for county employees: 1. Health insurance — remain with BCBS of NC (18.6% increase in cost — deductible will stay the same) 2. Dental insurance — remain with Delta Dental (3.3% increase in cost) 3. Vision insurance — remain with Superior Vision (no increase) 4. Flexible Spending Account administration — remain with P&A Group 5. Basic Life & AD&D, Short Term Disability, and Voluntary Life and AD&D — change from Reliance Standard to Unum Life Insurance Co. to avoid a drastically high increase with Reliance due to a larger than normal number of life insurance claims during this benefit year. April 25, 2017 Work Session Minutes Harnett County Board of Commissioners Page 1 of 5 Mr. Jeffries reported staff is continuing to negotiate the 18.6% rate increase. He said given our Finance Director budgets more than the actual premiums to build a fund balance the rate increase could be less. Mr. Jeffries also said staff believes we will be able to offset the impact of the projected increase of $1 Million by safely lowering workers comp and unemployment numbers. Mr. Jeffries reported staff hopes to present a proposed balanced 2017/18 budget to the Board on May 1, 2017. In conjunction with the Springsted Compensation Study, commissioners directed staff to review and discuss compensation for commissioners compared with compensation provided by surrounding counties. Currently the Harnett County Board of Commissioners are paid a monthly compensation which covers attendance at all regular meetings of the full board (two per month), a travel allowance ($410 per month) and are reimbursed for actual expenses including out of county travel. Pursuant to NCGS 153A-28, the board of commissioners may fix the compensation and allowances of the chairman and other members of the board by inclusion of the compensation and allowance in the adoption of the budget ordinance. Mrs. Stewart proposed two options for increases to commissioner's compensation. Commissioners discussed options and suggested increasing their base pay $100 per month/$1,200 annually, increasing their travel allowance $200 per month/$2,400 annually and doing away with their $35 additional meeting compensation. The proposed $3,600 annual increase in commissioner's compensation will be approved in the 2017/18 Budget Ordinance. It was the consensus of Board to move forward with the General Government Capital Improvement Plan through FY 2021/22 as presented. Mr. Jeffries noted any changes would be brought back to the Board. Mr. Jeffries reviewed the Board of Education's draft budget request including a total of $5.6 million in capital requests. Staff noted this would be the second year using the funding formula previously approved by the Board of Commissioners. Calculation of base allocation total funding for 2017-18 is $23,500,153. Mrs. Honeycutt reported Harnett County's three-year average of appropriation per ADM is $1,024.56. Mr. Jeffries sought direction from the Board regarding the additional requests by the Board of Education. Mr. Jeffries recommended, following discussions with Interim Superintendent Fleming, that the Board of Education use $263,000 of their remaining capital funds and approximately $30,000 left over in teachers' supplement to purchase three yellow buses now. He noted this would require approval by the Board at their upcoming regular meeting. Mr. Jeffries also suggested using $503,000 of the GO bonds approved for construction of the new Benhaven Elementary School to expand the cafeteria at Overhills High School. He said if Mr. Fleming delayed misc. equipment and vehicles as previously discussed the balance for capital requests would be $1.25 Million. April 25, 2017 Work Session Minutes Harnett County Board of Commissioners Page 2 of 5 Mr. Jeffries noted the Board of Education requested an additional $4.4 Million in current expenses. He noted the increase is due to Early College start-up, teacher's supplements, and the K-3 legislation change to reduce class sizes. Commissioners noted they had not approved funding Early College as they had been lead to believe legislation would fund the program. Commissioner Penny also said Dr. Holmes had developed funding sources for the Early College program. Discussions continued. Mr. Jeffries said local legislators are currently working on additional funding for Early College at the Dunn Center. He said with additional legislative funding, along with other budget modifications, this request could be approximately $200,000. The Early College program is intended to help reduce the high school population. Regarding pending K-3 legislative changes to reduce class size, the addition of 28 new teachers could cost approximately $1.67 million. Mr. Jeffries said this is a moving target, as a potential compromise bill would only require 14 new teachers. Mr. Jeffries noted the total cost for the $1000 supplements for classroom teachers that were employed on September 1, 2015 was approximately $1,252 Million last year. He also noted the Board had agreed to consider an additional $500 per teacher with the caveat that they showed improvement. Mr. Jeffries mentioned Mr. Fleming's proposal of a teacher's supplement that included the $500, plus taxes and benefits, and included certified teachers that were not part of the original supplement and classified staff. As requested, the Board of Education provided the following bonus definition: • Granted to instructional personnel that have a classroom of assignment of students or certified personnel that are assigned one on one classroom instruction. Also granted to any instructional personnel paid on the teacher salary schedule. • Growth occurs when majority of schools meet or exceed growth and the District overall experiences growth. Mr. Jeffries reported the proposed definition provided would include 1,441 teachers, increased from 1260, and suggests measuring improvements by the districts overall growth by meeting or exceeding growth. Without including taxes and retirement, and following the resolution to provide for teachers that were in the system the previous year, the total cost for 1441 teachers to receive $1,500 supplement would be $2.16 million. Typical turnover ranges from 150 to 200 teachers a year so the estimated total for teachers supplement would be $1.93 million; an increase of $683,000. Mr. Jeffries proposed for consideration also offering the Early College program at the current Benhaven School. He said we could potentially spend $2 Million to $3 Million to renovate the current Benhaven School and possibly slow the need for a new high school. Mr. Jeffries said the community college would need to be on board for this but he is bringing it up now given the option of using part of the GO bonds as a funding source. He said if the board would like to consider this option staff will get cost estimates for renovations. Mr. Jeffries said he believes this would be a great project; slowing the need for a new high school and still using the facility for a community library, recreation and potentially a senior center. Mr. Coats noted the GO April 25, 2017 Work Session Minutes Harnett County Board of Commissioners Page 3 of 5 bonds are only available for active schools or building new schools and the Overhills High School cafeteria expansion and old Benhaven renovations should qualify. Commissioners discussed that they already fund counselors in every high school for the College and Career program. They stressed the need for the College and Career program and Early College program to work together. They questioned if the buses requested for the early college program could also be used to transport kids from the high schools to campuses. It was the consensus of the Board for staff to move forward with exploring funding opportunities for Early College at Benhaven, in addition to the Dunn Center. Mr. Jeffries shared and discussed "Analytics per Site for Harnett County Schools". He talked about how difficult it is to show improvement. Commissioner Penny said it is important to know what the numbers presented actually represent. Discussions continued regarding definitions, teacher's supplements and how to measure improvements in schools. Chairman Springle said the key to measuring improvement needs to be apparent to everyone. Mr. Jeffries said Harnett County ranks one of the lowest counties in our region in teacher supplements. He suggested, in addition to the $1,500, that the County consider taking the growth of the sales tax expansion; 10% growth would be 380,000 a year, and committing those new dollars to the Board of Education to help with their supplements. Vice Chairman Miller suggested, in lieu of the $500 supplement, giving the $1,500 each year and then taking Mr. Jeffries suggestion offering the Board of Education a lump sum from new monies towards teachers supplement annually (for example $250,000 divided by 1,500 teachers) if they meet or exceed the growth standard set by commissioners. Suggested language: the County would offer the Board of Education up to 5% of the growth of the $3.8 Million of sales tax expansion annually. It was the consensus of the commissioners to go ahead and pay the $1500 to 1441 teachers this year based on the 15/16 numbers. It was the consensus of the Board for staff to move forward with potentially using $503,000 of the GO bonds approved for construction of the new Benhaven Elementary School to expand the cafeteria at Overhills High School. It was also the consensus of the Board to consider approval, at their upcoming meeting, of the Board of Education's request to use $263,000 of remaining capital funds and approximately $30,000 left over in teachers' supplement to purchase three yellow buses. Mr. Jeffries sought direction by the Board regarding the Board of Education's additional requests in addition to their $1 Million increase in current expenses. It was the consensus of the Board to go ahead and budget $1.256 million for capital priorities, instead of $972,000, and see how it comes out. April 25, 2017 Work Session Minutes Harnett County Board of Commissioners Page 4 of 5 Mr. Coats distributed an estimated cost of $25.183 Million for the construction of Benhaven School Project, noting additional costs are forthcoming. Staff noted, with the resolution previously adopted, this would still allow sufficient room for the Overhills High School cafeteria expansion and renovations at Benhaven for Early College. Mr. Jeffries reviewed the proposed May 1, 2017 regular meeting agenda. Commissioners will meet in work session, immediately following their May 1, 2017 regular meeting, to continue budget discussions. Mr. Jeffries responded that staff would be conducting a study regarding the H.A.R.T.S. program. Chairman Springle recessed the meeting at 11:25 am. Commissioners left to visit Brunswick County at 3:00 pm to hear about the Brunswick County Citizen Patrol Program. t Regina yV eeler, Clerk April 25, 2017 Work Session Minutes Harnett County Board of Commissioners Page 5 of 5