May 16, 2012 Special Joint Board Meeting Northeast Telecenter The Martin County Board of Commissioners met in Special Session with the Martin County Board of Education on Wednesday, May 16, 2012 at 7:00 p.m. in the Northeast Telecenter, 415 East Boulevard, Williamston, North Carolina. ASSEMBLY Board of Commission members in attendance: Chairman Elmo Butch Lilley, Vice Chairman Tommy W. Bowen, Commissioner Ronnie Smith, Commissioner Derek Price and Commissioner Bob Hyman. County Manager David Bone and Clerk to the Board Marion B. Thompson were present. County Attorney Melvin Bowen and Finance Officer Cindy Ange were not in attendance. Board of Education members in attendance: Chairman Gene Scott, Vice Chairman Addie Leggett, Van Heath, Moses Matthews, and Russ Ayers. Superintendent Ron Melchiorre, Finance Officer Karen Rogerson and Administrant Assistant Michele Johnson were present. Board of Education member Kenneth Harrell was absent. Chairman Lilley called the Joint Board meeting of the Martin County Board of Commissioners and the Martin County Board of Education to order. The Pledge of Allegiance was led by Commissioner Smith. Commissioner Bowen offered the invocation. Board of Education Chairman Scott called the Joint Board meeting of the Martin County Board of Education and the Martin County Board of Commissioners meeting to order. AGENDA APPROVAL Chairman Lilley entertained a MOTION on approval of the agenda as presented from Commissioner Price, with a SECOND by Commissioner Hyman. The motion was unanimously APPROVED. Budget Presentation Joint Board Meeting Superintendent Ron Melchiorre presented the following budget message for the 2012-2013 School Year: All of us here tonight are aware of the slow economic conditions that are still prevalent in the state and affecting our county revenues. For the 2012-2013 school year, there are
several issues that will affect the school system s budget. The first issue is the state s increase in our discretionary reversion. The second issue is the reduction due to the state planning allotment decrease. The third issue is the reduction of funding due to the Bear Grass Charter School and the last issue is the loss of the Federal EduJobs money. What does this mean for the school system? This may mean that there will be reductions in certified and classified positions, reductions and / or elimination of programs, reduction of employee time or length of time as well as the reduction of certified employee supplements. The main budget goal is to save as many positions as possible so that the operation of the school system and the academic integrity of the education program will remain viable. However, I do want to warn the Board of Education and Commissioners that last year s cuts of 2.3 million dollars equated to cutting 42 positions; 25 of which were teaching positions and this upcoming year cutting at least 11 teaching positions may take its toll on the academic program, even though the school system had a very successful academic year last year. I want to thank the Commissioners for helping us last year by increasing our local Current Expense budget. With that said, tonight the Board of Education is presenting a proposed local Current Expense budget of $6,455,895 and is asking the Commission to fund $5,662,044 which is the same amount as last year s appropriation of $5,662,044. In addition, the Board of Education is presenting a proposed Capital Outlay Budget of $642,817 which is an increase of $139,817 above last year s appropriation of $502,000. The majority of this year s capital outlay budget reflects instructional equipment and maintenance items that need to be done for teachers to teach the new curriculum beginning next year. This year s budget request by the Board of Education is very conservative giving consideration to the revenues of the county. This proposed budget is also very conservative using additional school system monies to absorb the cuts created by the federal, state and charter school funding issues. In closing, I want to thank the commissioners for all that you do for the education of the children in the Martin County School System. I would ask the Commission for your support of the school system and to work with us as we navigate through these uncertain times. After the budget message by the Superintendent, Martin County Schools Finance Officer Karen Rogerson presented the following projections on the impact of the Bear Grass Charter School on the county school budget for fiscal year 2012-2013. Charter Reductions Estimates @150 Students Projected State Reduction for Charter Schools $ 807,103.50 Projected Local Reduction for Charter Schools 236,310.00 (Includes County Appropriation and estimated Fines and Forfeitures)
Subtotal State $ 1,043,413.50 The planning allotment information was also given for 175 students as well as 200 students. Each charter school student would amount to an increase of $6,956.09 in deductions. Other Reductions (No control of deductions) Reduction due to loss of EduJobs Federal Budget $ 897,691.00 (Constant Reduction) Reduction due to Proposed Increase in 156,427.00 Discretionary Reversion (New) Reduction due to Planning Allotment Decreases 399,030.00 Subtotal Local $ 1,453,148.00 Grant Total Potential Reductions $ 2,496,561.50 Superintendent Melchiorre gave the highlights of the Current Expense and Capital Outlay budgets by line item as distributed to the Boards. Low-Wealth Supplemental Funding Superintendent Melchiorre noted that the State has notified Martin County Schools of its eligibility for funding in fiscal year 2012-2013 for the low-wealth supplemental funding. In the letter from the state office, it was noted that data used to determine eligibility for Low-Wealth Supplemental funding is volatile and the county rankings change from year to year. The level of funding can vary particularly due to changes in factors (1) and (2) below. Many of these factors are not controllable at the local education authority (LEA) level and relate to events occurring across the state. Eligibility for Low-Wealth supplemental funding is determined by a number of factors that are collected from other state agencies and the federal government. They are as follows: 1. County revenue per student 2. The county per capita income 3. The county s percentage of the state s area in square miles A county is determined eligible if its composite weighted average of these three factors is less than the statewide composite average.
Superintendent Melchiorre cautioned the Board of Commission to pay special attention in the coming year(s) to the county tax rate as it relates to the low-wealth supplemental funding. Martin County Schools could lose $1.3 million in funding (prorated based on funds available). As the county gets further in the revaluation, the county s weighted sales assessment ratio will go down causing the county s effective tax rate to be lower. The County s effective tax rate (computed by multiplying the county tax rate by the county s weighted sales assessment ratio) must be higher than the state s average effective tax rate to be eligible for funding. Martin County was eligible for funding in fiscal year 2012-2013 based on the following: County s 2011-2012 Tax Rate: 0.6700 County s Weighted sales Assessment Ratio: 0.9848 County s Effective Tax Rate: 0.660 State Average Effective Tax Rate: 0.603 Percent of State Average Effective Tax Rate: 109.45% As shown, the county s effective tax rate was above the state average effective tax rate. Comment On behalf of himself and not the Board of Commissioners, Vice Chairman Bowen asked the Board of Education to consider leasing the Bear Grass School building. He stated he was trying to protect the citizens in the County of the liability, down the road in five to ten years, of picking up the tab for tearing down and hauling off the Bear Grass School. Vice Chairman Bowen also stated he realized the Board of Education was elected just like the Commissioners are and it was the Board of Education s job to make decision for the schools. Resolution by the Town to Hamilton Concerning a Request for Inclusion in the Hamilton Fire District At the May 16, 2012 meeting, the Martin County Board of Commission tabled the Resolution by the Town to Hamilton Concerning a Request for Inclusion in the Hamilton Fire District until the Town of Hamilton and the Hamilton Fire / EMS could come to an agreement of terms on the ownership of three fire vehicles. Special meetings were called by the Town of Hamilton and the Hamilton Fire / EMS. An agreement (entered into the minutes by reference) was reached, executed by both entities, and submitted to the Board of Commissioners.
Vice Chairman Bowen made the MOTION, with a SECOND by Commissioner Smith to approve the resolution as presented. The motion was ADOPTED unanimously. RESOLUTION TO APPROVE THE REQUEST BY THE TOWN OF HAMILTON FOR INCLUSION IN THE HAMILTON FIRE DISTRICT WHEREAS, the Town of Hamilton has for many years provided, as a governmental service, fire protection through a contract with the Hamilton Volunteer Fire Department / Hamilton District Volunteer Fire-EMS Department, Inc.; and WHEREAS, the Town of Hamilton is surrounded by the Hamilton Fire Tax District; and WHEREAS, the Town of Hamilton Board of Commissioners has passed a resolution requesting inclusion of the property within the corporate limits of the Town of Hamilton in the Hamilton Fire Tax District; and WHEREAS, the aforementioned resolution from the Town of Hamilton Board of Commissioners includes a request for the provision of fire protection services through the Hamilton Fire Tax District, which is a County Fire Tax District administered by Martin County; and WHEREAS, the Martin County Board of Commissioners are in agreement that it is in the best interest of the citizens of the Town of Hamilton, that the geographic area of the Town of Hamilton should be included in the Hamilton Fire Tax District; NOW, THEREFORE, BE IT RESOLVED: 1. That pursuant to the authority in NCGS 69-25.11(5), the Martin County Board of Commissioners does hereby approve the request of the Town of Hamilton to include the geographic territory within the corporate limits of the Town of Hamilton in the boundaries of the Hamilton Fire Tax District, to be effective July 1, 2012. 2. That the Martin County Board of Commissioners adopt this resolution to change the boundaries of the Hamilton Fire Tax District by increasing the same to include the territorial area within the corporate limits of the Town of Hamilton, to be effective July 1, 2012. 3. That by passage of this resolution, the Martin County Board of Commissioners hereby authorizes the execution of all other documents necessary to accomplish the inclusion of the territorial area within the corporate limits of the Town of Hamilton into the Hamilton Fire Tax District. Adopted this 16 th of May 2012. Elmo Butch Lilley, Chairman Attest: Marion B. Thompson, Clerk to the Board
Commissioner Smith thanked the citizens of Hamilton for coming to a resolution/agreement and for being partners. Commissioner Smith added he appreciated the cooperation. Chairman Lilley thanked County Manager Bone for helping to find a solution to the problem. He also thanked both sides. Chairman Lilley commended the Town of Hamilton and the Hamilton Fire / EMS on their efforts. ADJOURNMENT With nothing further to discussion, Vice Chairman Bowen made a MOTION, with a SECOND by Commissioner Smith to adjourn the meeting. The motion was unanimously APPROVED. The meeting was adjourned at 7:30 p.m. Chairman Scott thanked the Board of Commission for the opportunity to meet and will appreciate anything that can be done to help the schools. Ms. Leggett made a Motion, with a SECOND by Mr. Ayers to adjourn the Board of Education meeting. The motion was unanimously APPROVED. Elmo Butch Lilley, Chairman Marion B. Thompson, NCCC Clerk to the Board