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February 27, 2010 (Board Retreat)
<br />Page 182 6
<br />The County Commissioners for Cabarrus County met in recessed session
<br />for a planning retreat on Saturday, February 27, 2010 at 9:00 a.m. at Camp
<br />T.N. Spencer, Helms Hall, 3155 Foxford Road, in Concord, North Carolina.
<br />Present - Chairman: H. Jay White, Sr.
<br />Vice Chairman: Elizabeth F. Poole
<br />Commissioners: Grace M. Mynatt
<br />Robert Carruth
<br />Coy C. Privette
<br />Also present were John Day, County Manager; Pam Dubois, Deputy County
<br />Manager, Aimee Hawkins, Communications and Outreach Manager and Kay
<br />Honeycutt, Clerk to the Board. Members of the media were also present.
<br />Call to Order
<br />a.m.
<br />After breakfast, Chairman White called the meeting to order at 8:55
<br />Budget Outlook for FY 2011
<br />John Day, County Manager, presented the following information
<br />concerning the budget for FY 2011:
<br />Estimated Revenues $188,123,871
<br />Estimated Expenditures* $193,005,310
<br />Revenue Shortfall ($4,881,439)
<br />School Current Expense Increase - 4.90 $2,500 000
<br />Adjusted Revenue Shortfall ($7,381,439)
<br />Lottery Proceeds for School Debt $5,700,000
<br />Adjusted Revenue Shortfall ($1,681,439)
<br />*Reflects reduction in force and reinstatement of Personnel Management
<br />Policy.
<br />Mr. Day stated his intent to re-implement the Personnel Management
<br />Policy, which includes a COLA (Cost of Living Adjustment) and merit increases
<br />for FY 2010 since the remaining employees will have assumed more
<br />responsibilities as a result of the RIF (Reduction in Force). He also
<br />addressed the need to use $5.7 million in lottery funds for debt service
<br />payments (an allowable use of the funds) which will require approval from
<br />both Boards of Education. He explained the approval process needs to get
<br />underway and this strategy allows the County to give the schools more money
<br />than would otherwise be possible. Regarding school capital expenditures, he
<br />recommended the development of a plan to address maintenance issues (HVAC,
<br />kitchen upgrades, etc.) at the older schools with existing reserve funds. He
<br />also addressed the need to adjust to the new economic reality and to use the
<br />County's monies efficiently.
<br />A general discussion ensued. The following topics were addressed:
<br />employee morale, gathering feedback from employees on ways to operate more
<br />efficiently, the culture of open and frank communication; ways to recognize
<br />employees, the 2009 CPI (Consumer Price Index) was 2.8 percent, a 2.5 percent
<br />COLA is included in FY 2011 budget, reevaluation, disparities in values among
<br />neighborhoods, the opening date for the detention center, hiring detention
<br />officers in a phased approach, operational strategies, efficiencies gained by
<br />closing the Annex until it is needed again, publicizing the funding matrix,
<br />mandated spending, ongoing public education efforts, speakers' bureau, etc.
<br />Mr. Day proposed the following changes to the fund balance policy: (1)
<br />to allow the appropriation of fund balance for use in the general fund to
<br />overcome revenues reoccurring expenses during an economic downturn; and (2)
<br />upon the completion of the Comprehensive Annual Financial Report, any
<br />undesignated fund balance above 15 percent will be transferred to the Capital
<br />Reserve Fund to reduce reliance on debt financing; or to the Self-Funded
<br />Hospitalization Fund, the Self-Funded Liability Fund or the Self-Funded
<br />Workers' Compensation Fund as required to maintain the integrity of those
<br />funds. He also recommended that the Hospitalization Fund and the Workers'
<br />Compensation Fund each receive a $1 million contribution from fund balance.
<br />He advised that a contribution to the Workers' Compensation Fund has not been
<br />made in ,years and is based upon the consultant's recommendation. He further
<br />reported an agenda item to this affect has been prepared for the Board's
<br />consideration at Monday's work session.
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