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February 18, 2002 Page 280 the gutter of the cul-de-sac on Harrisburg Industrial Park Drive. Ail attempts to locate the responsible party have failed. Reimbursement is being sought though Environmental Protection Agency (EPA) grant funds. UPON MOTION of Commissioner Fennel, seconded by Commissioner Suggs and unanimously carried, the Board adopted the following budget amendment. BUDGET REVISION/AMENDMENT REQUEST DEPARTMENT OF EMERGENCY MANAGEMENT AMOUNT: $3,750.00 TYPE OF ADJUSTMENT: Supplemental Request PURPOSE OF REQUEST: Appropriate funds for removal, site clean-up and disposal of unknown chemical substance. Present Account No. Approved Budqet 00161710-6901 25,538,956.64 Fund Balance Appropriated 00192710-9570 2,550.00 Service Contracts Increase Decrease Revised Budget 3,750.00 25,542,706.64 3,750.00 6,300.00 NEW BUSINESS Action by Governor Michael F. Easley to Withhold State Reimbursements to Local Governments Mr. Clifton reviewed the recent action by Governor Michael F. Easley to withhold reimbursements from local governments for FY 2002. This could amount to approximately $1.3 to $1.4.million for FY 2002 and as much as $4 million during FY 2003 for Cabarrus County. To hold down expenditures for the remainder of this fiscal year,.Mr. Clifton stated he has deferred capital projects, placed a hiring review on all vacant positions and is looking at all purchases in excess of $2,500.00. Also, he reported there is a shortfall of approximately $2 million in budgeted sales tax revenue for FY 2002 along with increased Medicaid expenses. Stating he has heard the Board's wishes for "no" property tax increase, Mr. Clifton said the County may be placed in a situation where it has to look at property taxes to make up the money withheld by the State or look at service delivery. commissioner Privette reviewed the history of the intangible and inventory tax reimbursements that the legislature pledged to local governments when it repealed those taxes in the 1980's. There was discussion about the GovernOr's action to withhold funds from local governments, concerns about balancing the State's budget on the backs of counties and cities, the continued "wasteful" spending by the State on a number of projects and the continued increase in Medicaid expenses. UPON MOTION of Commissioner Fennel, seconded by Vice Chairman Carruth and unanimously carried, the Board adopted the following Resolution. Resolution No. 2002-03 RESOLUTION REQUESTING GOVERNOR MICHAEL 'F. EASLEY NOT TO WITHHOLD STATE REIMBURSEMENTS TO LOCAL GOVERNMENTS WHEREAS, Cabarrus County has consistently demonstrated fiscal responsibility by developing and adhering to a budget balanced between revenues and expenditures for the services demanded by the public; and WHEREAS, Cabarrus County has worked diligently through the years to maintain a iow tax rate, yet providing necessary services to its citizens and continuing to increase educational expenditures to meet the needs of the rapidly growing school population; and WHEREAS, Cabarrus County and other local governments have been receiving reimbursements provided by the State to replace revenue for local taxes previously repealed by the General Assembly; and WHEREAS, the withholding of local government reimbursements and other State collected revenues as ordered by Governor Michael F. Easley will result in a shortfall of approximately $1.4 million in the FY 2002 Cabarrus County budget; and WHEREAS, the current economic slowdown that caused budget problems for the State has also impacted Cabarrus County, including flat retail sales tax revenues and an increased need for county services to the unemployed, and economically disadvantaged citizens of Cabarrus County; and