The Alleghany County Board of Commissioners reconvened the recessed budget meeting from Wednesday, May 31, 2006, on Thursday,

The Alleghany County Board of Commissioners met in speci= al session regarding the budget on Tuesday, June 5, 2007, <= span style=3D'font-size:12.0pt;font-family:Arial'>at 5:00pm in the Commissioners Meeting Room of the County Administration Building, 348 South Main Street, Sparta, NC.

&= nbsp; Present: Vice-Chair Warren Taylor, Commissi= oner Doug Murphy, Commissioner Milly Richardson, County Manager Don Adams and Clerk to the Boa= rd Karen Evans. Commissioner Randy Miller and Chair Ken Richardson were present but arrived late. County Attorney Donna Shumate was absent.

Vice-Chair Warren Taylor called the meeting to order at 5:1= 0pm.

County M= anager D= on Adams reviewed the budget book layout and budget worksheets.

Sheriff David Edwards stated that he is happy with the <= st1:place w:st=3D"on">County Manager’s recommendations in the budget.

Commissioner Doug Murphy and Sheriff Edwards talked about the recommended budget takes care of their nee= ds currently.

Commissioner Randy Miller arrived at 5:15pm.

Commissioner Warren Taylor <= /st1:PersonName>and Sheriff Edwards talked about the workload increasing due to the growth in t= he County. They further talked a= bout the number of deputies covering each shift and how the current recommended budg= et will change that.

County M= anager D= on Adams talked about the reduction in overtime due to having more deputies.

Commissioner Warren Taylor <= /st1:PersonName>and Sheriff Edwards talked about the number of federal inmates being housed, nu= mber of jailers and the hours of their shifts.

County M= anager D= on Adams talked about the jail budget including juvenile housing and boarding of prisoners.

Commissioner Warren Taylor, Commissioner Doug Murphy and Sheriff Edwards talked about food preparation for the jail.

Commissioner Warren Taylor and Sheriff Edwards talked ab= out having local people to do the maintenance and repairs on vehicles.

County Manager Don Adams talked about the hospital expense is another unknown. He further talked about the inmate medical insurance.

Commissioner Warren Taylor and Sheriff Edwards talked ab= out the medical care that is provided to inmates.

Commissioner Warren Taylor and Commissioner Milly Richar= dson talked about the new uniforms for the employees.

County Manager Don Adams talked about the console is in the 911 fund’s budget. He explained that Ryan Lane has been working with the= fire departments and is developing protocols.

Ryan Lane explained the current console= and what it does, maintenance issues with the console, parts not being manufact= ured anymore nor is covered under warranty.&nbs= p; He explained that the computer equipment is run through the 911 fund= .

County M= anager D= on Adams explained that 911 monies can pay for consoles in certain circumstances. He talked about a pending bill in t= he General Assembly regarding the 911 fund balance being opened up for additional uses= .

Commissioner Warren Taylor <= /st1:PersonName>and Sheriff Edwards talked about inmates not going out into the back yard at th= e Law Enforcement Center

Commissioner Warren Taylor <= /st1:PersonName>stated the Board’s appreciation for the Sheriff and his employees.

Commissioner Doug Murphy and County Manager Don Adams talke= d about the time frame on the General Assembly with the 911 monies.

County M= anager D= on Adams further talked about two funding opportunities in regards to the General Assembly; one reduces the amount the County pays to the Register of Deeds pension fund estimated to save approximately $12,000 to $17,000 and the oth= er one is Medicaid relief. He explained the different options being discussed in the General Assembly for Medicaid relief and the County probably won’t know until August. He further explained that the tran= sfer tax probably won’t happen this year.

Commissioner Warren Taylor <= /st1:PersonName>and County Manager Don Adams talked about the recent law/rule that states if the State is closing the local DMV office, they must provide 60 days notice.&= nbsp; County Manager Don Adams talked about Senator East’s assistance on this matter and explained h= is last conversation with Senator East.

County M= anager D= on Adams reiterated the budget books layout including the requested and recommended budgets. He t= alked about the school current expense request and school capital reserve request. He explained the man= dated amount for school cap reserve and transfer to the school cap reserve fund.<= o:p>

Commissioner War= ren Taylor asked about the Health Department appropriation.

County Manager Don Adams stated that he recommends a 3% increase. He read the paragraph in the budget message regarding special appropriations. He continued explaining the school’s budget request and how it is laid out in the budget books. He reminded everyone that the Scho= ol Board currently has the discretionary authority to move monies between their expenditure categories. He ex= plained how the County budgets one line item, and they move funds within the categories.

&= nbsp; Dr. Jeff Cox, Superintendent, came before the Board to discuss the Board of Education’s budget. He started with the QZAB funding b= y explaining the history of looking at the QZAB funds, and he went through the entire bu= dget to look for any line item as repair or renovations that could be applied fo= r in the QZAB funding. He informed= the Board that they met the application deadline, and the uncertainty of how mu= ch money would be received. He r= eviewed items eligible and ineligible for QZAB funding. He stated that if the QZAB funding= is received, they could manage everything else with the mandated amount for the capital needs.

&= nbsp; County Manager Don Adams explained that the mandated amount is $568,269 plus an additional $8,000 in interest. He stated that he is waiting on a rollover amount from the Schools. He explained the school cap reserve fund’s amended budget.

&= nbsp; Dr. Cox and County Manager Don Adams talked about the ADM funds received each year.

&= nbsp; Chair Ken Richardson arrived at 6:= 00pm.

&= nbsp; County Manager Don Adams talked about the rol= lover fund balance.

&= nbsp; Dr. Cox talked about conversations that would be required if the QZAB funding isn’t realized, and they would be coming back to the Board about how = to address those needs if they don’t get full funding or any funding.

&= nbsp; Commissioner Warren Taylor and Dr. Cox talk= ed about looking at the $146,000 payment to see how much funding would be gran= ted for that amount of payment.

&= nbsp; Dr. Cox talked about the current expense requests.

&= nbsp; Commissioner Doug Murphy asked if the QZAB funding is received, does it free up money for personnel.=

&= nbsp; Dr. Cox explained that the monies provided for the mandated capital amount and = the QZAB funding will release the burden on the capital outlay side. He further explained that the Scho= ol Board can’t move the monies from capital to current expense because t= he Commissioners would have to take that action. He talked about they are moving fo= rward with the middle school concept with the understanding that the building won’t happen this year. He talked about putting some middle school positions in place this year. He explained that three positions c= ould reasonably accommodate offering some middle school curriculum now. He stated that this $150,000 would= come out of the reoccurring middle school expenses. He talked about the requested posit= ions; K-5 Spanish teacher, gear-up positions, NCWISE clerical position. He explained that the State is mov= ing towards a student information system that upgrades information about studen= ts, what is involved in the NCWISE system, costs associated with NCWISE includi= ng a little higher level of management, the need for clerical support, and this = is due to convert over next school year. He further talked about the need for the fiber optic connectivity upgrade. He explained that the NCWISE requi= res more bandwidth than what they currently have.&n= bsp; He further explained that T1 lines connect a lot of the schools; Sta= te says they must have enough bandwidth but doesn’t offer any financial support. He stated the price = for the connectivity with and without the E-rate discount.

&= nbsp; Commissioner Warren Taylor and Dr. Cox talked about how much money is spent on internet connectivity currently and the timeframe for NCWISE.

&= nbsp; Commissioner Doug Murphy and Dr. Cox talked about this being a mandatory issue.

Dr. Cox explained that the State is so far invested into the NCWISE system; he can’t see them not going through = with it. He further explained the = long term need for fiber optic connectivity.&nb= sp;

&= nbsp; Commissioner Milly Richardson and a Skyline Telephone representative discussed Skyline Telephone having the capacity to offer the fiber optic connectivity upgrade= .

&= nbsp; Dr. Cox reiterated their needs regarding the NCWISE program including the perso= nnel and fiber optic connectivity.

&= nbsp; Commissioner Doug Murphy and Dr. Cox talked about these will be an annual cost.

&= nbsp; County Manager Don Adams and Dr. Cox talked a= bout when they will know about the e-rate funding. Dr. Cox stated that the schools ha= ve been getting e-rate funding for a while but had to request more money since= the schools are changing what they. Dr. Cox further stated that there is approval to continue as is and the pricing difference with and without e-rate funding.

&= nbsp; Dr. Cox summarized his requests stating the difference between the recommended = and requested budgets.

&= nbsp; Commissioner Doug Murphy and Dr. Cox talked about the current SIMS coordinators at each school, and they have additional duties beside the SIMS duties. Dr. Cox explained that this positi= on will require work that is harder, more complicated and will be a more centralized operation. Dr. Cox continued explaining that this position will handle all of the conversion issues.

&= nbsp; Dr. Cox continued summarizing the Board of Education’s request and their = priority on funding.

&= nbsp; John Farrelly explained the need for the middle school positions and areas in the middle school grades that aren’t being provided currently. He reviewed the gear-up program wh= ich promotes college opportunities. He sta= ted that he appreciates the Commissioners’ consideration and what is done= for the schools.

&= nbsp; Clarence Crouse stated that the School Board is in support of Dr. Cox’s comments. He thanked the Commissioners for what has been done. He reiterated the need for this additional funding.

&= nbsp; Dr. Cox stated that the Board of Education has asked him to express their appreciation for the QZAB funding support.

&= nbsp; Commissioner Milly Richardson and Dr. Cox talked about having local people to bid on projects that they have. Commissioner Milly Richardson mentioned that the Board of Education = will have to create a list of their priorities if the QZAB funding isn’t received.

&= nbsp; County Manager Don Adams explained the biddin= g laws for County government.

&= nbsp; Commissioner Milly Richardson and Dr. Cox talked about local people doing the work and p= rioritizing the schools needs.

&= nbsp; Dr. Cox explained their budgeting process.&nbs= p;

&= nbsp; Commissioner Milly Richardson stated that she would like to see a prioritized list if th= e QZAB funding isn’t received.

&= nbsp; Dr. Cox asked at what point will the Board of Education know what is in the bud= get for them.

Chair Ken Richardson stated that the public hearing is on June 18 at 6:00pm. He encouraged Dr. Cox to stay in contact with the County Manager.

Commissioner Warren Taylor talked about safe= ty projects that have been discussed for several years, like the Piney Creek Elementary School g= ym, should be taken care of.

Dr. Cox explained the State is projecting a = 5% salary increase. He further explained covering the costs for raises regardless of where the funding comes from; federal, state or local. Dr. Cox stated his appreciation to= the Board of Commissioners.

Chair Ken Richardson thanked Dr. Cox. He recessed this meeting until 5:0= 0pm on Wednesday, June 6.

Res= pectfully Submitted,

Karen Evans

Cle= rk to the Board

Att= est:

Ken Richardson

Cha= irman