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DRAFT
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<br />February 25, 2002 Page 285
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<br /> Although recent news articles have indicated that Rowan County plans to
<br />provide its share of funding, Mr. Clifton advised that no formal commitment
<br />has been received from Rowan County.
<br />
<br /> Commissioner Privette made a motion, seconded by Commissioner Suggs to
<br />add $13,083,886.00 for the Kannapolis City School system projects to the
<br />Certificates of Participation {COP's) financing contingent upon Rowan County
<br />providing its share of funds for those projects.-
<br />
<br /> Prior to a vote on Commissioner Privet=e's motion, Mr. Clifton proposed
<br />that the Board delay the sale of the COP's for the two Cabarrus County
<br />elementary schools as well as the Kannapolis City School projects until
<br />January 2003. He stated this would delay debt service payments until FY
<br />2004, but the Schools could still move ahead with land acquisition and
<br />architectural design. Further, Mr. Clifton reviewed various fixed rate and
<br />variable rate financing scenarios for the issuance of COP's as follows: (1)
<br />$26,825,000.00 {Bond Proceeds Par Amount) issued July 1, 2002, for five
<br />gymnasiums ($2,$00,000.00), New School Administrative Building
<br />($4,000,000.00), and Expo Center ($20,000,000.00); and (2) $37,685,000.00
<br />{Bond Proceeds Par Amount) issued January 1, 2003 for Bethel Elementary
<br />($11,700,000.00); New Elementary School. {$12,700,000.00); and New Middle
<br />School {$13,000,000.00). In addition, Mr. Clifton discussed the timing of
<br />debt service payments, the withholding of reimbursements by the State and the
<br />potential need for a property tax increase to cover added debt .service.
<br />
<br /> UPON MOTION of Commissioner Privette, seconded by Commissioner Suggs
<br />and unanimously carried, the Board authorized adding $13,083,886.O0 to the
<br />Certificates of Participation (COP's) financing for the Kannapolis City
<br />School System projects contingent upon Rowan County providing its share of
<br />funding for those projects. Further, the Board agreed that the COP's for
<br />financing the two new Cabarrus CoUnty-elementary schools (Bethel Elementary
<br />and New Elementary) and the Kannapolis School projects would not be issued
<br />until January 2003. The COP's for -the five gy~u%asiums {$2,500,000.00), new
<br />School Administrative office {$4,000,000.00) and the Expo Center
<br />{$20,000,000.00) are to be issued in July 2002.
<br />
<br />County Co=~nission Budget Priorities
<br />
<br /> Board members listed the following budget priorities for FY 2003:
<br />Commissioner Privette Debt Service; Commissioner Fennel - Education
<br />{current expense and debt service), Transportation, Economic Development and
<br />Public Safety; Commissioner Suggs - Water Supply (along with those listed by
<br />Commissioner Fennel); and Vice Chairman Carruth ~ Schools, Utility Issues,
<br />Ways to capitalize on new growth and develop an alternative revenue stream to
<br />fund public services (i.e., schools and ~ater).
<br />
<br /> There was discussion regarding the current' water supply situation in
<br />Cabarrus County. The Board addressed the following issues during the
<br />discussion: (1) Need to consolidate wholesale water facilities under the
<br />Water and Sewer Authority of Cabarrus County (WSACC); {2) Possibility of
<br />establishing service districts and/or obtaining grants to run utility lines
<br />in the rural areas of Cabarrus County; (3) Cost of installing utility lines
<br />in the less-densely populated areas and the lack of revenue generated by
<br />those lines.
<br />
<br />County Manager FY 02 Budget Actions and FY 03 Budget Par~uneter Issues
<br />
<br /> Mr. Clifton discussed t~e estimated shortfall of $3,667,000'.O0
<br />(approximately $2,348,640.00 in sales tax revenues and approximately
<br />$1,367,000.00 in State reimbursements) that will impact the FY 2002 budget.
<br />He recommended a number of corrective .budget actions totaling $3,309,822.00
<br />to address those shortfalls. Personnel lapsed salaries will be used to cover
<br />the remaining shortfall.
<br />
<br /> ~PON MOTION of Commissioner Privette, seconded by Commissioner Suggs
<br />and unanimously carried, the Board adopted the following budget amendments to
<br />implement the corrective budget adjustments as outlined by Mr. Clifton.
<br />
<br /> BUDGET REVISiON/AMENDMENT REQUEST
<br />
<br />AMOUNT: $3,309,822.00
<br />TYPE OF ADJUSTMENT: Supplemental Request
<br />PURPOSE OF REQUEST: To reduce-expenditures to cover the short fall in sales
<br />tax revenue for FY 2002.
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