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June 14, 2005 (Recessed Meeting) Page 227 much for the citizens. He expressed concern that the seniors on have problems buying food and medicine and cannot afford an taxes. He cautioned that people who raise taxes are not thought election time. fixed income increase in highly of at There was no one else present to address the Board, and Chairman Carpenter closed the public hearing at 6:54 p.m. She then opened the meeting for comments by each member of the Board. Commissioner Juba expressed her displeasure increase but stated in her opinion the tax increase the Board cannot continue to balance the budget with the practice in past years. with the proposed was necessary. She fund balance as had tax said been vice Chairman Carruth stated any budget cuts would impact the discretionary programs such as libraries, parks, etc. He said the largest single increase in the budget was a result of the County's continued practice over the past six years of entering into non-taxpayer approved debt totaling $100 million for schools. He stated the annual debt service had increased from $12 million to $26 million for FY 2006. commissioner Privette stated he would vote against the proposed 19 percent tax increase. He commented on a number of issues, including last year's budget, expenses associated with the County Attorney, litigation with the City of Concord, the Economic Development Corporation, proposals to address jail overcrowding, a comparison of tax rates in other counties and the land acquisition for the new high school. He stated sufficient revenue would be generated by school adequacy fees and other new construction. commissioner Freeman objected to the proposed 19 percent tax increase, stating there were 934 foreclosures in Cabarrus County during 2004. He said persons are having difficulty in finding jobs and that both businesses and individuals are having trouble in paying their bills. Chairman Carpenter commented on the budget review process, including the lack of suggestions by Board members as to how the proposed tax rate could be reduced. She reported she had personally gone through each line item of the budget and identified a number of reductions. Chairman Carpenter also commented on several issues, including a $5 million deficit in last year's budget, the recent land purchase for the new high school and a comparison of tax rates for counties with similar size populations as Cabarrus. Recess of Meeting Chairman Carpenter recessed the meeting at 7: 40 p. m. in order for the Board to return to the Multipurpose Room. She invited those present to join the Board in the Multipurpose Room where it will continue budget discussions. Chairman Carpenter reconvened the meeting at 7:48 p.m. Multipurpose Room. in the Budget Discussion Chairman Carpenter stated closed. However, she stated an hearing and wished to address the the public hearing had individual had arrived Board at this time. been after opened and the public william Nunn, resident of Concord, stated he is retired but works four hours a day to pay taxes and insurance. He objected to the proposed tax increase and asked where the additional money would go. He said the City of Concord provides most of his services. Chairman Carpenter reported reductions totaling approximately one cent on the tax rate had been identified, but the Board had agreed to give most of those funds to the Schools. She then opened the meeting for discussion. There was lengthy discussion by the Board regarding the FY 2006 County budget and proposed tax increase of 10 cents. Issues addressed by the Board included the following: the interim or preliminary approval of department budget requests during the review process; the $14 million deficit; projected revenue from growth in the County; method of developing a budget based on income; and the pattern of using fund balance to balance the budget over the past several years and the potential negative impact on the County's bond rating if that practice continues. Board members asked Commissioners Freeman and Privette on several occasions as to what cuts could be made to avoid a tax increase and maintain services at the current level.