The Alleghany County Board of Commissioners met in special session on Monday, April 25, 2005, at 8:40am in the Conference Room of the County Office Building, 90 South Main Street, Sparta, North Carolina. The purpose of this meeting is to have a budget planning session for the FY05/06 budget.

Present: Vice-Chair Warren Taylor, Commissioner Graylen Blevins, Commissioner Sandy Carter Herndon, Commissioner Ken Richardson, County Manager Don Adams, and Clerk to the Board Karen Evans. Chair Eldon Edwards and County Attorney Donna Shumate were absent.

Vice-Chair Warren Taylor called the meeting to order.

The Board of Commissioners and County Manager Don Adams discussed the upcoming Transportation Improvement Plan meeting and adding Highway 21/Roaring Gap Mountain to our list of priorities.

Commissioner Ken Richardson talked about attending the Heritage meeting last Thursday and the information that was received from that meeting.

County Manager Don Adams reviewed the budgeting process including topics for this meeting. He started the meeting by reviewing the proposed insurance agreements for property/liability, workers comp and medical. He further reviewed the current year rates and next year’s rates which show a decrease of $56,887 for property/liability and workers comp.

The Board of Commissioners and County Manager Don Adams discussed medical insurance for retirees, changing the policy for all new employees, years of service and Medicare supplement.

Commissioner Ken Richardson made a motion to allow the County Manager and Chairman to sign all of the insurance renewal documents for the upcoming budget year. Commissioner Graylen Blevins seconded the motion. Vote 4:0.

County Manager Don Adams reviewed a spreadsheet regarding the percentage of property owners residing in Alleghany County.

The Board of Commissioners and County Manager Don Adams discussed the decrease in valuation since the last revaluation. The County Manager explained how this has a direct impact on the low wealth funding for the schools. He further explained this is the main reason why Alleghany County doesn’t qualify for the funding.

County Manager Don Adams explained spreadsheets about taxation ranking the County in comparison with all North Carolina counties. He reviewed pie charts for expenditures by object and expenditures by function, tax collection rate and fund-balance percentages.

County Manager Don Adams reminded the Board of the All American salary study process. He talked about passing a pay grade scale and new job descriptions if the third year of the All American plan is passed.

Commissioner Ken Richardson and County Manager Don Adams discussed the merit raise concept.

The Board said for the County Manager to put a cost-of-living raise and the third year of the All American plan in the budget.

The Board of Commissioners took a brief recess at 10:05am.

County Manager Don Adams mentioned other personnel policy changes including requests for changing the meal allowance and mileage reimbursement rate.

The Board of Commissioners and County Manager Don Adams discussed meal allowances and mileage reimbursement rates including $40 per day with receipts and 0.405 cents per mile. They continued discussing purchasing another vehicle for usage to reduce paying mileage.

County Manager Don Adams talked about debt service and reviewed a spreadsheet regarding the County’s debt. He explained the net-debt ratio. He demonstrated how loans affect the net-debt ratio and how the ratio affects the loan interest rate.

County Manager Don Adams explained the difference between a bond referendum, an installment purchase and COPS (certificates of participation) in regards to school construction.

The Board of Commissioners talked about the proposed lottery will assist with education.

The Board of Commissioners and County Manager Don Adams discussed the different ways to finance school construction and prior bond referendums in the County. They talked about the Board of Education’s responsibility is to present the best option for the best education, and the Commissioner’s responsibility is to finance school construction. They also talked about finding a solution that won’t require doing this same again in five years.

Commissioner Ken Richardson asked about budget requests that haven’t been turned in.

County Manager Don Adams stated that he hasn’t seen any budget requests other than what the Board has received.

Commissioner Ken Richardson and County Manager Don Adams talked about housing inmates for additional revenues.

County Manager Don Adams mentioned two new requests; Wellness Center and Family Resource Center. He talked about the Planning/Recreation and Maintenance budgets and how they are changing to reflect recreational functions.

Commissioner Ken Richardson asked for the Planning/Recreation department to have two separate budgets.

County Manager Don Adams stated that will be taken care of.

The Board of Commissioners and County Manager Don Adams discussed costs for a bond referendum and general election questions.

The Board of Commissioners and County Manager Don Adams discussed issues concerning Dispatch operations including moving Dispatch from the central area into an old magistrate’s office, personnel issues, using money from the 911 fund, Sheriff working on these issues, creating a Dispatch advisory board, issues from Fire Commission meetings, moving Dispatch to another building and parking problems at the Law Enforcement Center.

The Board stated that they are giving the Sheriff a chance to work out the issues and if he can’t, go back and address the issues.

Commissioner Graylen Blevins stated that he just wants accountability for everyone and the need for more input from Chairman Edwards about the Fire Commission issues.

The Board of Commissioners continued talking about discussions prior to this meeting regarding Dispatch, ways to handle issues, housing prisoners and the jail population.

Commissioner Warren Taylor asked that the County Manager and the Chairman research the Dispatch issues and report back to them, if necessary.

Being no further business, Commissioner Ken Richardson made a motion to adjourn the meeting at 11:45am. Commissioner Graylen Blevins seconded the motion. Vote 4:0.

Respectfully submitted,

Karen Evans

Clerk to the Board

Attest:

Eldon Edwards

Chairman