The Avery County Board of Commissioners met in Regular Session on Monday, June 19, 2006 at 3:00 p.m. in their offices, Avery County Administrative Complex, Newland, NC.

Members Present: Kenny Poteat, Chairman; Susan Pittman, Vice-Chairman; Joe Strickland, Phyllis Forbes and Bill Beuttell

Members Absent: None

Call to Order
Chairman Poteat called the meeting to order at 3:05 p.m.
Prayer was led by Chairman Poteat.

Public Comments:
Rachel Deal provided the Board with some written information about Avery County’s statutory responsibility with animals. She also referred to the Animal Control Ordinance which the Planning Board prepared and which will be presented to the Commissioners at a later meeting.

Appointments:
Long Term Care Community Advisory Committee
Robert Wiseman advised that Rachel Deal’s term on the Long Term Care Community Advisory Committee will expire on July 17, 2006, and that she has agreed to continue to serve in that capacity.
Motion by Joe Strickland to reappoint Rachel Deal to the Long Term Care Community Advisory Committee for another term. Motion seconded by Phyllis Forbes and unanimously approved.
Chairman Poteat thanked Ms. Deal for her willingness to serve on this board for another term.

Region D Development Corporation Board
Robert Wiseman advised that there is still one vacancy from Avery County on this Board. Current seated members are Tommy Burleson, Amy Vance and Robert Wiseman. Robert advised that Mr. Bill Close, Chairman of the Avery County EDC, has agreed to serve on the board representing the business/community organization slot.
Motion by Joe Strickland and second by Phyllis Forbes to appoint Mr. Bill Close to serve on the Region D Development Corporation Board representing business/community organization. Motion unanimously approved.

Commissioner Comments:
Kenny Poteat advised he has a copy of some information from a concerned citizen in regard to parking at Banner Hill in Newland. This is something the Board has discussed in the past, Mr. Poteat said.

Joe Strickland reported on some results from the NCACC meeting. Their focus will be on Medicare relief for counties, Joe said. It is important for us as Commissioners to stay after our representatives because after we adopt the budget, it seems to slide away. The NCACC thinks we will get some relief this year, Joe said. The House has come up with a solution which looks good in regard to putting a cap on Medicare based on the past fiscal year’s amount.

Public Hearing – Solid Waste Management Plan Update
Motion by Phyllis Forbes and second by Susan Pittman to remove the Board from Regular Session and to enter into a Public Hearing on the Solid Waste Management Plan Update at 3:15 p.m. Motion unanimously approved.

The County Manager advised that the revisions to the County Solid Waste Management Plan will be presented today by Mr. Buddy Norris, Solid Waste Manager, and Mr. Kelly Coffey, High Country COG. The Chairman provided the Board with a copy of the revised plan. Buddy Norris explained that this update is required every 3 years and that Mr. Coffey assisted in making these minor changes. The most significant change in the Plan is the amount of construction occurring in the county and the corresponding increase in the construction/demolition materials being brought to our C & D Landfill.
Chairman Poteat advised that the Board is being requested to adopt a Resolution approving the 2006 Avery County Solid Waste Management Plan Update. The Chairman then read aloud the proposed Resolution. He then asked for public comments on the proposed plan update. There were none.

The Chairman asked for any Commissioner concerns or comments. Bill Beuttell asked about the capacity of the current C&D landfill. Buddy Norris advised that we have approximately 18-24 months of capacity left in our C&D landfill. He added that we are working with engineers to develop a new C&D area and that the old one should hold us until the new one is completed. Buddy said that the new C&D landfill will be located on the existing site and that we have plenty of acreage for expansion.
Joe Strickland commented on a bill currently before the General Assembly that the NCACC is resisting. They call it a “bad bill” in that it calls for a moratorium on any and all landfills in the near future. It also locks you into a financial arrangement with the carrier. The Association is struggling with the bill and they think that two representatives who are affected by a large landfill in their area are going in to revise the bill to keep it to that specific area so as not to affect the entire state. Brief discussion continued on our current landfill and the fact that approximately 80 acres were approved in 1997 for this purpose.
Motion by Joe Strickland and second by Bill Beuttell to close the Public Hearing and resume Regular Session at 3:25 p.m. Motion unanimously approved.

Motion by Joe Strickland to adopt the Avery County Solid Waste Management Plan Update Resolution and authorize the Chairman to sign it. Motion seconded by Bill Beuttell and unanimously approved.

Bill Beuttell commented that since we are having to update this Plan, it shows the impact in Avery County of the increased construction and demolition going into our landfill. That is fuel for our legislative goal next year about land transfer fees and/or impact fees. They are user fees, not taxes. Joe Strickland said the focus of the NCACC next year will be some legislative goal to give us the same opportunities as other counties have regardless of what it may be. Bill said this just shows how one segment of the economy is putting a strain on the other segment. The County needs to have options on initiating additional revenue sources if the Legislature will allow us to, Bill said. For the record, we have tried and tried in vain to get them to allow us to do that, Bill said. As a County Commissioner, if people don’t want it they should voice it to the Commissioners, but I think those types of land transfer fees and user/impact fees would probably go over very successfully if the Legislature would give us that option, Bill said.

Public Hearing 2006-2007 Budget
Motion by Susan Pittman and second by Bill Beuttell to enter into a Public Hearing on the FY 2006-07 budget for Avery County at 3:25 p.m. Motion unanimously approved.

The Chairman asked for a show of hands of persons wishing to speak to the proposed budget. The Chairman then turned the Hearing over to the County Manager, Robert Wiseman.

Robert Wiseman stated that we have a fiduciary responsibility as Commissioners and Manager to not create a budget that is overburdened with things that while they are nice, may not be necessary. The County Manager then presented his Budget Message to the Board and the public. He also explained the budget process used by the County. He advised that the budget drives the tax rate. He added that a general reappraisal of real property is held every 4 years in Avery County. State law requires that units of local government, including public authorities, publish a revenue-neutral tax rate in the budget documents immediately following the completion of the general reappraisal of real property. The revenue-neutral tax rate is the rate that is estimated to produce revenue for the next fiscal year equal to the revenue for the current fiscal year if no reappraisal had occurred. The rate is adjusted by a growth factor equal to the average annual percentage increase in the tax base due to improvements since the last general reappraisal. The revenue-neutral rate is to provide citizens with comparative information, Wiseman said.

Tim Greene, Finance Officer, explained that in 2005-06 the valuation was $2.5 billion and the tax rate was 53 cents. That generated $13.4 million dollars (general and fire tax combined). Since our last revaluation, on average, the property values have increased 3.86%. The revenue neutral tax rate for this fiscal year is 37.5 cents (general and fire tax combined). This budget is balanced on a 38 cent tax rate, which is a 15 cent decrease from last fiscal year, Tim said. He added that 5 counties have a lower tax rate than Avery. A total of $496,000 was appropriated from Fund Balance to balance the budget this year, Wiseman said.

Robert then explained the Budget Ordinance for 2006-07 FY. Tim Greene added that the EWP (Flood Stream Restoration Project) and Economic Development projects in our budget, both related to Hurricanes Ivan and Frances, are the two largest items of note in our budget this year--approximately $3 million dollars. We received some pass through grants to repair or replace houses destroyed by the flooding and these expenses are all pass-through monies, but they have actually inflated our budget, Tim said. Discussion was also held on the largest changes to the revenue side of the budget for this FY such as pass through grants for Hurricanes Frances and Ivan repairs, property taxes of $650,000 and Fund Balance Appropriation.

In looking at the graph provided, Robert advised that Advalorem Taxes pay for approximately half of what it costs to run the county. Robert added that he felt we have a very good tax for service ratio across the State of North Carolina and that this Board of Commissioners should be commended for providing that kind of leadership.

Robert Wiseman advised that a new Information Technology position has been added to the budget this year. We have so much computer equipment and software now that we need an in-house person to troubleshoot and work on our system.

There are 3 other issues new to this budget as well. We have 3 employee incentives which are well-deserved. This year there will be longevity incentives for tenured employees. Another is the ability to be paid for accrued vacation instead of having to either take it or lose it. The third incentive is a tremendous incentive to retain people in whom we have a large investment—supplemental insurance for employees when they retire.

Capital Projects – Avery County now has a “pay as you go” philosophy on Capital Projects thus avoiding long term debt. By using this method we can save thousands of dollars. The Local Government Commission requires that each county maintain a certain Fund Balance level and ours is at the top end of what they recommend. Avery County looks at the Fund Balance accrued the previous year and anything over 20% of what it took to operate the previous year goes into a Capital Account. We now have around $7.4 million dollars in our Project Account. However, we are committed to several large projects. Renovation of the Courthouse Annex has started (est. cost $625,000) as well as the Avery High School Renovation – should be complete in summer 2007 at cost of $3.05 million. The Jail addition/renovation and plans and specifications will be developed in late winter or early spring. The Avery Health Department Project is also under construction at a cost of $1.6 million, Robert said. Tower Upgrade Project will cost $155,000 this year and the final upgrade should be concluded next year. Another item is the installation of the artificial turf at Avery High School. Estimated project cost is $600,000. We are also getting several grants, Robert said, which he outlined.

We are committed to re-do the Clerk of Court side of the Courthouse and renovate the old Courtroom to meet current codes, Robert said. We have problems with handicapped accessibility and ADA right now. The Banner Elk Elementary School is also on the schedule. It is the County’s intent to award the contract for the construction of this school in 2009-2010 when the County will have a significant reduction in their long term debt. We are $10,525,000 short right now, so if someone indicates that we are sitting on millions of dollars and don’t have anything to do with it, I will be glad to explain this to them, Wiseman said. Strict adherence to this financial plan has enabled Avery County to avoid any tax increase over the past several years, Robert said. Discussion and explanation was held on organizations which will receive a special allocation of public funds in this year’s budget. Robert added that he did not think that many, if any, of these special allocations we are making are required by law; non-profit corporations especially, or charitable institutions. The reason they are non-profit charitable institutions is because it is expected for them to exist off the funds they generate within the organization and donations from outside sources. When a charitable organization goes from being just that and depends on the county for its very existence, it’s time to reassess the mission and the relationship that exists, Robert said. If the County is held accountable for the operation of one of these agencies, then the county needs to be calling the shots. When it comes to the point that a charitable institution depends upon the County for its very existence, then it is no longer a charitable institution, Robert said.

Robert Wiseman then recommended that the FY 2006-07 Budget Ordinance for Avery County be adopted as presented.

Robert then recognized Tim Greene and Terry Whelan for all their hard work on this budget. Chairman Poteat commented on the hundreds of hours of work and the months it took for the staff to get this budget to this point. This Board of Commissioners met many times for many hours to deliberate on this budget as well. This is a very large task and one of the most important that the Commissioners face during their term.

The Chairman asked for Comments:

Commissioner Strickland pointed out a typographical error in the Budget Ordinance in Section 17. The amount should be changed from 49 cents to 35.2 cents. There is also another typo in Section 18. The Fire Tax rate should be changed from 4 cents to 02.8 cents. The Finance Officer advised he will make these corrections in the Ordinance.

Mr. Bill Close commented that he would like to commend what has been done on this budget. Last year we had a good budget and this year as well. He added that he is impressed with the way the Commissioners and the Finance Officer spend our money, from a taxpayer’s standpoint. He said that he feels the County is in good shape and that he is proud to be a part of the initiative here.
Mr. Close also suggested providing some funding for future planning in Avery County. He said he feels the County will grow by leaps and bounds in the future. We need funding available in the budget so we can find the direction to get this answer. He asked the Board to include in the budget the ability to create a plan and a direction. If we don’t have the expertise in the county in-house then we should go somewhere and get it he said. He said he knows it will take money and analysis in order to do this.
He added that he learned at a seminar in Raleigh recently that Avery compared to other counties, is in the 60th percentile in taking advantage of grants coming into the county. The state is impressed with what we are doing in getting grants he said. He added that the county can use the Economic Development Commission in order to help get grants. Joe Strickland recommended using the Institute of Government to assist us in such an endeavor.

Tommy Singleton, Director of Toe River Health Department, thanked the Board for the new Health Department facility currently under construction. He advised that they have received a $100,000 grant from Kate B. Reynolds Foundation for the furnishings for this facility. They also expect another $30,000 in grant funds he added. Singleton said it is a state-of-the-art facility and we are very pleased with it. Singleton commented on the budget request for Toe River Health. He said they originally requested $275,000 from the County. He explained the reason for the request and outlined some of their increased operating costs. Their 2005-06 budget was $9 million, plus. The 2006-07 budget coming up for adoption is $7.7 million. We are about 35 positions down and we hope to be able to get some type of pay increase this year for our employees. We have not had a pay increase since 2004, Singleton said.
He added that he has spent a lot of time working on rabies problems in this and the other counties in the district as well. He advised that he hopes the Humane Society can continue to operate.

The County currently plans to allocate $225,000 to the Health District this year. Our allocation last year was $190,000, Tim said. Phyllis Forbes asked if Tommy knows how much the other counties plan to allocate. Tommy said he will meet with Mitchell County tomorrow and with Yancey County next Tuesday to discuss their budget allocations to the Health Dept. Tommy said that very early in the process it was $225,000 in Avery, $202,000 in Mitchell and $225,000 in Yancey. Nothing is definite yet. Robert Wiseman added that the allocation from Mitchell County is qualified. Their allocation for operation is $170,000 and they are prepared to give another $32,000 if it goes toward salary increases for the Mitchell County employees only. Tommy Singleton commented that the employees of Toe River District Health are district employees and he places them where he needs them within the district when a job needs to be done. He said that he doesn’t see them as strictly Avery or Mitchell employees, just employees of Toe River District Health. That’s one reason we can operate cheaper, he said.

Dr. Suzanne Owens commented that in Mayland Community College’s discussions with the County, it is our understanding that Mayland has been funded at the level we requested. We appreciate that very much. I feel that Mayland is very frugal with our money and we are very efficient. I appreciate your funding support. Mayland Community College and all 58 community colleges across the state are mostly funded locally for the cost of their buildings and the employees who maintain those buildings. We have not asked for any increase in capital costs in the past couple of years. We asked for a $20,000 increase in operating cost this year in order to cover gas and fuel increases and to add a part-time maintenance person. We thank you for all of your support to Mayland Community College, Dr. Owens said. Susan Pittman asked if Mitchell and Yancey Counties gave Mayland the funding they requested this year. Dr. Owens advised that the other counties also funded them at their requested level.

Rachel Deal commented that she would like for the Board to look at the handout information she provided them earlier today regarding rabies. She said that the Humane Society already does clinics and gives vaccinations against rabies as well as their spay/neuter plan. You have something already in place that could be working to your advantage. Please look at that information and the information Tommy gave you this morning. Joe Strickland commented that at the request of Commissioner Forbes the Manager has been mandated to look at those opportunities and crunch the numbers and get back with the Board with a recommendation. I would anticipate that question being addressed early in the fiscal year.

Grantley Hoilman asked how much the Humane Society will be receiving this year. Tim Greene advised their allocation is $54,450.00. This current year the allocation was $49,500.00. They will be getting a 10% increase in funding. Grantley asked how much Avery County Little League receives. Tim advised they will get $2,000.00. Grantley said the Little League will be getting $2,000 as compared to $55,000 for the Humane Society this year. Daryl Smith said I think you also give the Little League $3,000 for purchase of safety equipment through the Recreation Department budget. So, Little League gets around $5,000, still a long way from $55,000 though.

Chairman Poteat thanked everyone for their comments, both positive and negative.

Motion by Susan Pittman and second by Bill Beuttell for the Board to close the Public Hearing and resume Regular Session at 4:25 p.m. Motion unanimously approved.

The Board took a 5 minute Break at this time.

The Board resumed session at 4:30 p.m.

Adoption of 2006-2007 Budget
Commissioner Strickland requested that the Board consider adoption of the budget and the tax rate as separate issues. Chairman Poteat advised that it is the statutory obligation of this Board to adopt a balanced budget each fiscal year in the form of a Budget Ordinance. The Board was referred to their copy of the Avery County Budget Ordinance for 2006-07 FY. Total expense and revenue of $25,968,188.00 in the General Fund. Fire Association & various fire departments - $1,357,000.00.

Corrections in the Budget Ordinance were noted previously as: Section 17, tax rate levied of 35.2 cents per $100 valuation and Section 18, tax rate levied of 02.8 cents per $100 valuation. The revenue neutral rate is 37.5 cents, following adjustments from the Tax Assessor’s Office. Chairman Poteat said we are advocating a 38 cent tax rate, or 0.5 cent above the revenue neutral tax rate.

The Chairman advised that the Board will vote first on the budget for 2006-07, and then on the tax rate for 2006-07.

Motion by Joe Strickland to adopt the budget for 2006-07 for Avery County, regardless of the tax rate. Motion seconded by Bill Beuttell. Discussion. Joe Strickland commented that there are provisos associated with two or three of the budget allocations this year and unless you rule those provisos out of order or there is a motion to the contrary, these provisos were adopted during the Budget Workshop, which becomes a mandate to the County Manager. I will go over those as follows: In the Health Dept. the Manager was authorized to withhold funds if any of the following issues became a problem – with management, with revenues, participation from the various entities and also it was concluded that the Manager would actively pursue looking at the opportunity of a separate health department for Avery County. Phyllis questioned whether the board had discussed the management issue during the budget workshop. Joe advised that he had brought it up himself for discussion. Phyllis said we also discussed that each county needs to step up to the plate with their amount, which is why we placed the proviso in there. Joe said that is why we gave the Manager the discretion to withhold funds and come back to this Board for further instructions if any of these issues surface. The second proviso was the Fire Commission, Joe said. The same principles apply. It doesn’t mean that any of the funds are to be withheld. It means that the Manager has a mandate to look at a request on a moratorium of vehicle purchases until such time as the Fire Commission could develop a reasonable vehicle replacement plan that was satisfactory to both the Commission and the Board of Commissioners. The last one was to look at and recommend strategies to reduce the $2.7 million in Debt Services for the Fire Commission, Joe said. Joe said that part of adopting the Budget is that the Manager has this latitude as we have discussed, as an agent of this Board.

Joe Strickland asked if the Board wishes to discuss the Humane Society and all the concerns that surround the Rabies Control Program prior to the adoption of the Budget in the event that there are revisions the Board might want to consider to the existing motion on the floor. If so, they would have to be done via a Substitute Motion to what is on the floor now.

Robert Wiseman has been instructed to do some research regarding Rabies Control, along with the Planning Board, Chairman Poteat advised. Phyllis Forbes said she also asked the Manager to look at some comparable counties and how they are funded. Robert Wiseman commented that counties comparable to us in Western N.C. (bearing in mind that I have had very limited time to devote to this issue thus far and I do not have the information in front of me, that I think, that Madison County is in control of their operation. Yancey County provides $36,000 for animal control, no shelter; they do not fund any type of humane society operation. Mitchell County owns their own property, building and assets. They are responsible for maintaining the building and premises and they provide $82,000 in this coming year. They have a contract between Mitchell County and the Mitchell County Animal Shelter.
Chairman Poteat said that Avery County does not own our Animal Shelter or the property it is attached to. It is a private, non-profit organization, Susan Pittman said, and therefore counties should not be involved with non-profit. Robert advised that Ashe, Alleghany and Polk Counties are not doing anything for animal control. There are some individuals in some of those counties who are employed by the Solid Waste Departments who go out on a call and gets paid by the trip, but I don’t think it will last very long, Robert said. Discussion continued. Joe said he thinks we are doing the best we can based on a contribution. He added that there are no statutory requirements that we do this. He suggested we agenda this subject for the next meeting or in the near future and have discussions about where we are and what we need to be doing. In the meantime the Manager will be able to gather more information concerning rabies control. The Board agreed to handle the Humane Society issue in this manner.

Joe Strickland also brought up additional provisos. He said that these items that are in this budget that we have adopted such as longevity and vacation benefit plan will require the Board to look at and consider a policy for them. It is important to remember that in adopting these policies and this budget is that what you have done is not necessarily given an entitlement, but if you change it at a later time, you will be required to grandfather those people in to make sure there are no particular issues associated with any changes that may occur, Joe said. There is a responsibility on my part to make you aware of that in adopting this budget, Joe said. It can be changed, but next year if two people were to retire, then you are locked in on them until their demise.
Vote: Motion unanimously approved with all members in attendance.

Tax Rate for 2006-07 FY
The Chairman advised the Board that the proposed tax rate is 35.2 cents and Fire Tax of 2.8 cents per $100 valuation, making a total tax rate of 38 cents per $100.
The Chairman asked how much one half cent would equate to on the tax rate. Tim Greene advised that one half cent would generate $185,332.00 at a 100% collection rate. This amount of money would have to come out of Fund Balance if the proposed tax rate of 38 cents were not adopted, Joe Strickland said.
Chairman Poteat asked how much we have already dipped into Fund Balance thus far. Tim said that the Fund Balance appropriation is $495,928.00. If we were to adopt a 37.5 cent tax rate, that would swell to approximately $700,000.00, Poteat said. Joe asked what it would reduce the Fund balance to, percentage wise, in reference to the 20% we have as recommended. Tim said we won’t know what our 20% of General Fund expenses are until later on in the summer. I think a more accurate way to look at it is that if we take it out of Fund Balance, we are going to be robbing our Capital Projects Fund, Tim said.
Joe said the only thing that is unknown is the year end revenue projections. The year before, we transferred $3 million to the Capital Project Fund. Logic suggests that you will have some undetermined amount of money at the end of August, based on these projected year end revenues that are going to enhance the Fund Balance. I would suggest that it is greater than the $100,000 plus that it would take to come out of Fund Balance in order to maintain a neutral tax rate, Joe said.

The Chairman asked for a motion on the tax rate for the coming fiscal year.

Motion by Susan Pittman to set the tax rate for Avery County at 38.0 cents for the coming fiscal year. Motion seconded by Phyllis Forbes.

Joe Strickland called for a Substitute Motion. The Chairman advised that a Substitute Motion takes precedence over the original motion and must be voted upon first.

Motion by Joe Strickland moved to set the tax rate for Avery County at 37.5 cents for the coming fiscal year. Motion seconded by Bill Beuttell.
Chairman Poteat said the Board has met for many hours on this budget. He said that if he had known that $185,000 extra dollars, there are lots of things I would tweak and help in this budget that desperately need money. I don’t think it is the proper time personally and will not vote for a tax rate of 37.5 cents.
Susan Pittman commented that she felt 38 cents is a good tax rate and that we may regret even setting it at 38 cents two or three years down the road, because we may have to bump it up.
Vote on Substitute Motion: Joe Strickland and Bill Beuttell – in favor. Opposed: Susan Pittman, Phyllis Forbes and Kenny Poteat. Motion failed to carry.

Original Motion to Set Tax Rate
The Chairman advised that the original Motion to be voted upon is for a 35.2 cent Advalorem tax rate and a 2.8 cent fire tax rate, which equals 38 cents.
Bill Beuttell said he would vote in favor of the 38 cents, but that he would rather have the 37.5 cents.
Vote: Susan Pittman, Bill Beuttell, Phyllis Forbes and Kenny Poteat - in favor. Opposed: Joe Strickland. Motion carried by majority vote.

The County Manager commented that he felt the people should be proud of the Board for adopting this budget and the tax rate they have set.

County Manager Report – Robert Wiseman
Bridge Memorial Resolution – In Memory of Trooper Jennings of Minneapolis, NC
The Manager advised that he has received a request from Speaker Jim Black’s Office requesting that this Board adopt a Resolution to name the bridge in Minneapolis, NC in memory of former Trooper Jim Jennings of Minneapolis.
Susan Pittman advised that she grew up with Jim Jennings and she thinks it would be a wonderful thing to do in memory of him.
Motion by Susan Pittman to name the bridge on US 19-E in Minneapolis in memory of Trooper Jim Jennings. Motion seconded by Bill Beuttell.
Joe Strickland commented that he is in favor of this, but what he finds so ironic is that Jim Black, who would not give us the time of day, and is a dyed-in-the-wool Democrat, and who recognizes that the State of NC ends with I-77, has made a request of this Board, just freaks me out. I appreciate this officer and his service and the recognition of him and I will vote for the Resolution, but I just wanted to editorialize on the irony of this situation, Strickland said.
Vote: Motion unanimously approved.

Town of Elk Park Water System Project
This project relates to extending Elk Park’s water system into Cranberry. The Town of Elk Park did not have the bond rating necessary to procure this 100% grant for around $1 million dollars. The only way they could proceed to get those funds was for the County to act as lead agent in the application for this joint grant proposal. The stipulations are that Avery is in no way liable or responsible for the administration of these funds; we are simply a conduit to pass through in order for the funds to flow through Avery County to Elk Park. We need to designate the Mayor to act as the authorized representative for the Town of Elk Park to submit requests for reimbursement and accept those funds and disburse them. We would need a Resolution to that effect.
Motion by Phyllis Forbes to adopt a Resolution appointing the Mayor of Elk Park as the authorized representative for these grant funds, and to authorize the Chairman to sign said Resolution. Motion seconded by Joe Strickland and unanimously approved.

Employee Classification & Salary Information Packet
The County Manager advised that the Board has previously discussed this topic. This is a packet that the manager will be allowed to hand out to anyone requesting generalized information regarding an employee such as salary, insurance premium, retirement figures, etc. Robert thanked the County Attorney for all the research she has done on this matter. Michaelle Poore said she talked to an official at the Institute of Government about the contents of the packet and he indicated that providing this type of packet to people requesting information is perfectly appropriate.
Joe Strickland commented that he hopes that by agreeing to this document in principle, that we also recognize that there are other changes the manager will make after the adoption of these Board Policies and it will not necessitate his bringing it back to this Board one more time. When we adopt this, we are recognizing that a future revision is imminent based on what the Board does on longevity, cash payout on vacation and supplemental insurance. Robert Wiseman advised that those 3 policies are pretty well in order but will not become effective until the first day of July and we meet on July 3, so they will be ready for adoption at our first regular meeting in July. Any changes that occur down the road will automatically be incorporated in this packet under discussion today. When the Board approves the policies, they approve for them to be placed in this packet, Wiseman said.
Joe Strickland commented that the document the Manager has here today is all administrative material. What is important for the Board is to agree in principle with administrative material but to give consideration to adopting the policies together or separately.
Robert Wiseman said that the policy Joe is referring to is the next agenda item – Records, Maintenance & Security. Joe said that by consensus we can agree with this Employee Classification & Salary Information Packet. The Board agreed by consensus with the Employee Classification & Salary Information Packet as presented by the County Manager.

Records Maintenance & Security Policy – Robert Wiseman
Robert Wiseman advised that it was evident to our legal counsel that there were some items mentioned in this board policy that were inappropriate, so changes have been made. Michaelle Poore said that we tried to track the statutory language a little more closely on some of these items. She briefly outlined the changes that were made. She advised that the policy is now acceptable in her opinion.
Phyllis asked if the Manager has authority to make the decision regarding items that are public record but cannot be removed from these offices and if he could designate that it had to be reviewed in the office if someone wanted to see it. Robert Wiseman said that would be in his purview or also if someone wanted to come in at 9 am on Saturday morning. Joe said he could also designate that someone would have to be sitting there to make sure that nothing was removed from the office or the records.
Motion by Joe Strickland to adopt the Records Maintenance & Security Policy as written. Motion seconded by Bill Beuttell and unanimously approved.

Finance Office Report – Tim Greene
Budget Amendment #______________
Tim Greene advised that we have received an additional allocation from the Criminal Justice Partnership Program and we need to recognize revenue and corresponding expenses in amount of $7,200.00.
Motion by Phyllis Forbes and second by Bill Beuttell to recognize revenue and expense in amount of $7,200 for the Criminal Justice Partnership Program. Motion unanimously approved.

Budget Amendment # _________________
Tim Greene advised that per the E-911 Board, the Director’s position can no longer be paid from the E-911 Fund but it will have to be paid out of the General Fund. Also, we can pay the E-911 Addresser out of the E-911 Funds. We have been paying that position out of the General Fund, Tim said. We can also pay part of the Tax Mapper out of the E-911 Fund; we are currently paying that position 100% out of the General Fund. Discussion. This is authorized through the General Statutes, Tim said. It is very specific as to what can and cannot be paid out of the E-911 Fund. In the current year this will have a net effect of zero on the General Fund since we will be swapping out on these different salaries, Tim said.
Motion by Susan Pittman and second by Phyllis Forbes to adopt Item 2 in the Finance Officer Report to allow us to correct the payment to the Director of E-911- debit of $46,275.00 and credit of $46,275.00 Motion unanimously approved.
Budget Amendment #_______________
The Avery County High School Renovation Project is budgeted at $3,046,250, of which $2,000,000 is to be funded by the QZAB borrowing with the remaining $1,046,250 to be funded with either an additional borrowing or funded with pay as you go financing, Tim Greene explained. Due to the delay in the QZAB borrowing, a decision needs to be made on funding the $1,046,250. Expenses to date total in excess of $727,000.00.
Tim said this is the same budget amendment the Board approved back in May. We have spent $727,000 out of pocket on this project. In the original amendment, we thought that $750,000 would be all that we would be liable for through June 30, but there are going to be two more bills coming in. This is to make sure we are in compliance audit-wise with our budget. We do have the reimbursement resolution in place, should we ever get our QZAB monies, then we can reimburse ourselves for these out of pocket payments on this project thus far.
Motion by Bill Beuttell and second by Susan Pittman to approve Item 3 – debit of $750,000 to Project Fund – School and credit of $750,000 to Fund Balance Appropriated, Debit of $750,000 to General Construction and credit of $750,000 –Transfer from General Fund. Motion unanimously approved.

Changing an Existing Resolution- Undesignated Fund Balance in Excess of 20%
Tim Greene advised the Board that they need to consider changing an existing Resolution done by this Board. We have a Resolution in place whereby we can transfer anything over the 20% over into the Courthouse Project Fund. I am recommending that we change that Resolution to state from the Courthouse Project Fund to a Capital Reserve Fund. It will allow us the flexibility to use the money for other projects besides just the Courthouse Project.
Motion by Joe Strickland and second by Phyllis Forbes to rescind the original Resolution concerning the wording of the Capital Reserve Fund which was called the Courthouse Project Fund, and authorize the Chairman to sign. Motion unanimously approved.

Motion by Joe Strickland to adopt a Resolution to transfer at fiscal year end the undesignated funds in excess of 20% of that year’s General Fund expenditures and transfers into a Capital Reserve Fund, and to allow the Chairman to sign. Motion seconded by Phyllis Forbes and unanimously approved.

County Attorney Report – Michaelle Poore
Michaelle Poore advised there are no pending litigation matters that have had any developments at this time.

Michaelle mentioned some items that were discussed at the previous Board Meeting. In regard to tax collections, we are still working on some foreclosures that were filed last year. I anticipate getting a list of collection letters to be sent out from the Tax Collector any day now.
In regard to the FEMA closings and the 3 lots located in Land Harbor, I am waiting to hear back from the Attorney for the POA. They had a few minor tweakings they wanted to make to the proposed deeds back to the County. They anticipate having the proposed changes to us either tomorrow or Wednesday. If that comes together, we can hopefully get some of those closed out next week, Michaelle said.
We are still within the 30-day window in which FEMA wanted to have the funds back, Michaelle said.

Robert Wiseman thanked Michaelle for all of her hard work. There has been a lot of weeping and wailing in closing on some of these individual condemnation proceedings and she has done a fine job and I appreciate her.

Approval of Minutes
Motion by Bill Beuttell and second by Susan Pittman to approve the Minutes of the May 24, 2006 Budget Meeting. Motion unanimously approved.

Agenda Consent Items
Agenda Consent items were approved by consensus. The Chair reminded the Board to read the item he provided regarding parking at Banner Hill Rd.

Upcoming Meetings
The next Regular Meeting will be held July 3, 2006.

Comment: Daryl Smith
Daryl Smith commented that the Fire Commission appreciates what the Board appropriated to the Fire Commission for the Fire Departments. On behalf of the Fire Departments I would like to thank you.
As to Joe Strickland’s concerns as to the way the money is handled, we will have no problem working with Robert to work around these things. As he stated earlier, I do feel it is my responsibility to make a statement or two though. This idea of purchasing no new equipment will cost you money down the road. It is not realistic. We have one department in the county that has phenomenal growth and will need equipment. We are going to have to work that in. Joe Strickland commented that the Fire Commission is not locked into anything; it is simply a suggestion for both parties to work out. I appreciate the recognition, but it is really the Board which has done this, of which I am one member, Joe said.
Daryl said he doesn’t want to come back and the Board feels like we misunderstood what you told us or we acted in a way you didn’t want us to act, so I feel that we need to be up front about this matter, Daryl said. Sometimes delaying things doesn’t help matters. We realize there is a $2.7 million dollar debt and that is one of our major concerns and with your help we will get it resolved, Daryl said. Joe said this Board has simply given you a wish list and that you are still an appointed board established by state law.
Daryl said we wanted you to know that we are concerned with the same things you are concerned with and with carrying out the things you want carried out. We will do our best to do so, Daryl said.
Kenny Poteat said this is a fine group of men on our Fire Commission and this is a very honorable man who just spoke to us. He told Daryl that if his group runs into a stumbling block or has problems that they should come back to this Board of Commissioners.

Adjourn
Motion by Bill Beuttell and second by Susan Pittman to adjourn at 5:25 p.m. Unanimously approved.

________________________________
Kenny Poteat, Chairman
Avery County Board of Commissioners

ATTEST: ________________________________
Nancy H. Cook, Clerk to the Board