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January 28, 2012 (Board Retreat) Page 954
<br />needed to relieve inmate overcrowding. The loan was established as a bridge
<br />until the County was ready to issue Certificates of Participation (COPS) for
<br />construction of the Sheriff's Administration building. Using fund balance to
<br />pay -off the loan early eliminates $1,386,807.00 of re- occurring expenditures
<br />in the FY 2013 budget and saves $1,989,854.00 over the remaining life of the
<br />loan, which ends in FY 2022. She further advised the monies are available
<br />should the Board choose to pursue this initiative and that no penalties will
<br />be incurred by the County. The amount required to pay -off the loan through
<br />March 30, 2012 is $10,203,588.08. The following chart shows the budgetary
<br />effects for each fiscal year through FY 2022.
<br />Fiscal
<br />Year
<br />Principal
<br />Payoff Balance
<br />Interest
<br />Savings
<br />Budgetary
<br />Impact
<br />2013
<br />1,000,000
<br />386,807.20
<br />1,386,807
<br />2014
<br />1,000,000
<br />345,703.70
<br />1,345,704
<br />2015
<br />1,000,000
<br />303,803.70
<br />1,303,804
<br />2016
<br />1,000,000
<br />262,415.57
<br />1,262,416
<br />2017
<br />1,000,000
<br />219,548.44
<br />1,219,548
<br />2018
<br />1,000,000
<br />178
<br />1,178,104
<br />2019
<br />1,000,000
<br />136,203.70
<br />1,136,204
<br />2020
<br />1,000,000
<br />94,474.32
<br />1,094,474
<br />2021
<br />1,000,000
<br />52,289.69
<br />1,052,290
<br />2022 1
<br />500,000
<br />10,503.70
<br />510,504
<br />Total 1
<br />9,500,000
<br />1,989,853.72
<br />U?ON MOTION of Chairman Poole, seconded by Commissioner White and
<br />unanimously carried, the Board approved the pay -off of a loan at Fifth Third
<br />Bank (Obligor # 0901412080, Obligation # 00034, SR# 1- 568570687) and adopted
<br />the following budget amendment:
<br />Date:1 /27/2012 Amount:$9,500,000
<br />Dept. Head:Pamela S. Dubois Department:Debt Service
<br />❑ Internal Transfer within Department ❑ Transfer Between Departments /Funds 0 Supplemental Request
<br />Purpose: to appropriate funds for the payoff the Installment Financing of the Jail Annex
<br />Account Number
<br />Account Name
<br />Approved Budget
<br />Inc Amount
<br />Dec Amount
<br />Revised Budget
<br />00161710 -6910
<br />Fund Balance Appror.
<br />$3,014,401.00
<br />$9,500,000.00
<br />$12,514,401.00
<br />00199110 -9918
<br />Installment Prin - Jai
<br />$1,000,000.00
<br />$9,500,000.00
<br />$10,500,000.00
<br />County Manager - Budget Directive
<br />Mike Downs, County Manager, asked for guidance in preparing the FY 12-
<br />13 budget and a general discussion ensued. Board members were polled and all
<br />were in favor of removing the COLA (Cost of Living Adjustment) and merit
<br />increases from the proposed budget.
<br />A variety of program/ departments listed on the Program Funding Matrix
<br />were discussed with Mr. Downs, Ms. Dubois and Ms. Nesbitt responding to
<br />related questions.
<br />Commissioner Measmer requested additional information on the following
<br />topics: Cabarrus Health Alliance (mandated services vs. non - mandated
<br />services), Forestry Services, Register of Deeds, Transportation and
<br />Department of Aging.
<br />Discussion continued. The concept of a 5 percent across - the -board
<br />budget cut was addressed.
<br />Dr. Barry Shepherd, Superintendent, Cabarrus County Schools, addressed
<br />the lack of educational funding on a local and national basis and responded
<br />to questions from the Board. He also noted the ability of low - wealth
<br />counties to receive State and Federal grant funding.
<br />Dr. Carol Spalding, RCCC President, addressed the need for additional
<br />funding, job creation, public / private partnerships, and the College's
<br />desire to create a more prosperous community.
<br />Ms. Dubois expressed appreciation to Dr. Spalding for allowing RCCC
<br />facilities on Hwy. 73 to be used as a one -stop voting location in the
<br />Presidential election. A short discussion ensued on budgetary savings that
<br />could be captured'by creating mega voting districts.
<br />Tain, -'h Rr==1r
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