The Alleghany County Board of Commissioners met in special
session regarding the budget on Wednesday, June 25, 2008, at 4:00pm in the Board
Meeting Room of the County
Administration Building,
348 South Main Street,
Sparta, NC.

Present:  Chair Ken Richardson, Vice-Chair Warren
Taylor, Commissioner Randy Miller, Commissioner Doug Murphy, Commissioner Milly
Richardson, County
Manager Don Adams and
Clerk to the Board Karen Evans.  County
Attorney Donna Shumate was absent.

Chair Ken Richardson called the meeting to order at 4:00pm.

County Manager Don Adams
presented fee schedules for Alleghany in Motion.  He explained the increases in the
schedule.

Commissioner Milly Richardson made a motion to approve the AIM
fee schedule.  Commissioner Doug Murphy seconded the motion.  Vote 5:0.

County Manager Don Adams
discussed the building inspections fee changes; reconnect and signs.

Commissioner Milly Richardson made a motion to approve the
building inspection fee schedule.
Commissioner Warren Taylor seconded
the motion.  Vote 5:0.

County Manager Don Adams
presented the Transfer Facility fee schedule.  He explained the differences on changing
household fees to $60 and weight accounts to $60 per ton.  He further explained that these changes
will raise approximately $75,000.   He reviewed the reasons why the
increase is needed; fuel costs/fuel surcharge, $2 per ton state fee charge and
need to purchase a loader.

Commissioner Warren Taylor and
County Manager Don Adams discussed
the BFI contract has one year remaining.

Chair Ken Richardson explained that the County Commissioners
Association is lobbying to have the $2 per ton fee delayed until January 1 rather
than July 1 but it doesn’t appear to be happening.

Commissioner Milly Richardson made a motion to approve the
solid waste fee schedule.
Commissioner Doug Murphy seconded
the motion.  Vote 5:0.

County Manager Don Adams
presented information from Jim Burns
with International Pipes & Accessories requesting the Emergency Management
fire inspection fees be readdressed.

The Board read the information.

County Manager Don Adams
reminded the Board that this is the second request from Mr. Burns wanting to
know why the fire inspections are so high.
He reviewed the fee schedule.
He told the Board that the numbers reflected in the letter are for his
entire facility, and when Lane left, they were not charged for that space this
year. He talked about the amount of time needed for the inspection.  He explained that the fire inspection
fees bring in around $17,000 and $11,000 of that comes from four or five
industries.  He talked about fee
schedules in the surrounding counties.
He explained that $5,500 would be lost if it is cut in half.  He further explained that the four or
five industries take more time than the small stores.  He talked about the amount of work
required through the LEPC, fire departments involvements, and it is more time
than the two hours of actual inspection.
He reminded everyone that hazardous inspections require Level III certification
which takes nine years to obtain.

Commissioner Doug Murphy asked
Gerald Leftwich talked about if there is a way to address some type of
incentive program for doing a good job.

County Manager Don Adams
and Gerald Leftwich talked about the things that Gerald does for industries
than what industries are aware of in just doing the inspections.  They talked about the different types of
inspections.  The County Manager
explained that would put Gerald Leftwich in a difficult place.

Chair Ken Richardson talked about they get their rewards
from their insurance company and OSHA.

Commissioner Doug Murphy and
Gerald Leftwich discussed that the fee schedule hasn’t changed since
1994.

Commissioner Milly Richardson talked about cutting the fees in
half to help the businesses.

Commissioner Randy Miller suggested ¾ of a cent
instead of cutting it in half.

Chair Ken Richardson talked about the money goes into the General
Fund, and it is not enough money to cover the Emergency Management budget.  He further talked about the taxpayer is
already supplementing it.

Commissioner Milly Richardson said that is a good point and
suggested leaving the fees as is.

Gerald Leftwich stated that he recommends that the Board not
go to a find-cause charge.

County Manager Don Adams
explained that the Board had previously voted on this but he brought it back
because of the letter.

County Manager Don Adams
presented the budget summarizations sheets.

Commissioner Warren Taylor stated that the Board is at 19%
fund balance right now.

County Manager Don Adams
agreed and stated that the State recommends 20-30%.  He talked about ways the State looks at
the fund balance numbers.

Commissioner Warren Taylor and
County Manager Don Adams talked
about the $65,000 from the Sparta
School fund is separate and
is not in the fund balance.

Chair Ken Richardson talked about ways to proceed with the
budget at this point.

County Manager Don Adams
explained the $65,372 proceeds from the loan for 8-classroom addition with $11,000
budgeted remaining that they are putting in the playground equipment.  He stated that the Commissioners can use
this money for anything.

Commissioner Doug Murphy, Commissioner Warren Taylor and
County Manager Don Adams discussed
it can go to the schools for any use and the uncontrollable costs for the
schools.

Commissioner Doug Murphy made a motion to release this money
to the schools for their use.
Commissioner Milly Richardson seconded the motion.

Commissioner Randy Miller stated that he wanted to know what
the money will be used for.

Chair Ken Richardson stated that he is in favor of releasing
it but wants to know what it will be used for.

Chair Ken Richardson talked about another possibility is
giving them another $70,000 on their uncontrollable costs.

County Manager Don Adams
reviewed the Board of Education’s budget and his recommendations on their
budget.  He stated that he
hasn’t gone back over the Board of Education’s budget but a little
over $30,000 is directly related to the NCWISE position.

Commissioner Doug Murphy asked for further clarification on whether
the State is helping with NCWISE.

Chair Ken Richardson stated that $10,000 for the Family Resource
Center is needed.

The Board agreed.

Commissioner Doug Murphy stated that he thinks the money is
needed for Alleghany Group Homes to keep their head above water.

Commissioner Milly Richardson discussed the Soil & Water
department.  She stated that she has
no problem with the $2,815.62.

Chair Ken Richardson stated that he has no problem with the
travel request of $1,718.  He talked
about there will be several discussions about reclassifying positions.

County Manager Don Adams
explained the justifications and other administrative assistants are in the same
situation.

Chair Ken Richardson stated that he has no problem with the travel
increase just the Board needs to look at salary changes as a whole.

Commissioner Milly Richardson asked about the EMS equipment and what happens if the equipment
isn’t purchased since the Board has been made aware of this.  She talked about pursuing grant funds
for this capital.

County Manager Don Adams
explained that they have applied for grant monies for the 3 lifepaks and were
turned down.  He explained the
current defibrillator units and having maintenance agreements on the units.   He talked about the radio system and
transmission system.  He further
talked about the Hospital will pay $1,995 for the transmission base and will utilize
this service.  He stressed the importance
of the transmission system.  He said
that he recommends all of these.  He
explained that this is taking the County back to a capacity that the County used
to have.

Commissioner Warren Taylor talked about the importance of the
new lifepaks working with everything else.

County Manager Don Adams
explained that the radios and transmission system are tied together.

Commissioner Randy Miller and County Manager Don Adams discussed replacing them over two years
rather than one.

Commissioner Milly Richardson explained that she attended a fire
commission meeting last night, and they are having problems with volunteers
responding to minor calls.  She
talked about some other counties give a per call stipend of $5 per call, which
would be $73,450 or $10 per call, which would be $146,900.  She talked about this would cover one
gallon of gas and would be helpful.

Chair Ken Richardson and County Manager Don Adams discussed how this could be done if the
fire departments submit the information like retirement.

Commissioner Milly Richardson explained how other areas do
this with a maximum amount of $500 per person.

County Manager Don Adams
stated that he isn’t sure about the volunteer status and would have to
check into that.  He further stated
that he wants to avoid hundreds of $5 checks.

Chair
Ken Richardson and County Manager Don Adams
discussed other volunteers responding to things.  The County Manager
explained that these numbers are based on 10 people responding per call, and it
includes the rescue squad.  He
stated that he isn’t aware of anyone else.

Chair
Ken Richardson talked about putting the $73,450 on the paper of needs and
looking at it later.

County Manager
Don Adams explained changing the part-time
billing clerk to full-time previously approved based on the State approving the
position but they cut the allocated costs reimbursement.  He stated that the additional amount
needed is $3,000.

Commissioner
Warren Taylor, Commissioner Doug Murphy and
Chair Ken Richardson discussed adding that to the list of needs.

Chair
Ken Richardson asked if the tax office employee currently has a desk.

County Manager Don Adams
explained that the employee does have a desk currently.

Chair Ken Richardson asked about the building inspections
capital request.

Commissioner Milly Richardson talked about if the building industry
is halted, they won’t be doing as much traveling this year.

Chair Ken Richardson stated that it is off of discussions.

Chair Ken Richardson asked if DSS is the same on capital.

Commissioner Doug Murphy and
Commissioner Milly Richardson stated that you have to in order to be fair
across the board.

Chair Ken Richardson asked about the no new personnel
stance.

Commissioner Milly Richardson stated that the Board needs to
make sure the County can pay for what we have before adding any.

Chair Ken Richardson asked about the request for the
Extension Service.

Commissioner Milly Richardson said that the person in that
position stated she doesn’t need any help then why give it to her.

County Manager Don Adams
provided the history of the position going from full time to part time and the
need for someone in the office full time.
He explained that the person is very skilled, but works part-time.  He further explained that it will come
time later to make the position full time with benefits.

Chair Ken Richardson mentioned the intern position in the
planning department.

Commissioner Milly Richardson stated that the County should
look at that.

Commissioner Doug Murphy talked about looking at that later
when the Board discusses personnel.

Commissioner Milly Richardson
talked about this is for a summer intern.

County Manager Don Adams
explained Randy Blankenship’s
request for Toni’s position.

Commissioner Doug Murphy and County Manager Don Adams talked
about this would free up Kathy some.

Chair Ken Richardson asked about making the Elections
position full time.

Commissioner Doug Murphy stated that he agrees.

County Manager Don Adams explained that they are asking
for deputy director at grade 61.  He
further explained their request.

Chair Ken Richardson and County Manager Don Adams discussed
the position is at a grade 57 currently.

Chair Ken Richardson stated that the library is asking for
2% more for books.

The Board of Commissioners took a brief recess at 5:12pm.

Chair Ken Richardson talked about changes to now is $212,122.20
and without the schools is $142,494.20.

Chair Ken Richardson talked about his concerns about pay for
starting employees being the same as 10-year employees, 2% built into budget, need
to look at something to align this issue.  He talked about one of the reasons for
the reclassifications are to get the employees in a more favorable position to
get more money.

Commissioner Milly Richardson
talked about longevity needs to be addressed.  She reiterated that this needs to be
looked at but the County does not have the time nor resources at this time.

Commissioner Doug Murphy asked about looking at building inspections.

Chair Ken Richardson explained that when the Board gives the
County Manager the authority to administer the
salary plan, it makes it hard to look at one person.

Commissioner Doug Murphy asked if the Board is going to look
at inspections since elections was discussed.

Commissioner Warren Taylor stated that another one is in Soil
and Water.

County Manager Don Adams
stated that the Board has to decide what they want to do.

Commissioner Randy Miller asked how much more can they take
out of fund balance and be safe.

County Manager Don Adams explained that the safe
range is $200,000-$300,000 to balance the budget.  He further explained that normally all
of the money isn’t spent.  He
said that there is another $53,000.

Commissioner Randy Miller talked about using that money for
salaries.  He asked can that fix it.

County Manager Don Adams
explained that an additional 1% is $32,000.

The Board of Commissioners discussed different ways to
address the salary longevity issues.

County Manager Don Adams
asked if the starting salary stays the same and move everyone 3% up.

Commissioner Doug Murphy agreed that is a step in the right
direction.

The County
Manager and Chair Ken
Richardson talked about adjustments.

Chair Ken Richardson reiterated the Manager’s comments
about going up 3%.

The Board of Commissioners talked about how to fix this
longevity issue.  They decided to
add $32,000 to make the total 3% with a commitment to look at it again next
year.

Chair Ken Richardson explained that the Board still has
$212,122.20 to look at how to fund.  He suggested after the Board discusses
salaries, move back to discuss the $212,122.

County Manager Don Adams
and Chair Ken Richardson talked about one penny on the taxes is $160,000.

Commissioner Warren Taylor talked about money for the schools.

Commissioner Milly Richardson talked about the SCAAP
monies.  She further talked about
the $32,000 could be used on the jailers request.  She asked can this money be used for
salaries.  She said that the County Manager
says no and Steve Cothren says yes.

County Manager Don Adams
explained that financially the Sheriff’s Department/Jail is a
department.  He further explained
the SCAAP program started four years ago when the County hired a CPA to save
money here and other areas.  He
explained that the CPA identified the SCAAP program, he went to the jail to gather
information, brought it back here to find us money to help with existing expenses.  He further explained that they must
track every inmate, jailers collect the data already, funds we received were $32,000
for two years worth of grants, list of items that money can be spent on, Board
of Commissioners can chose because we file the report.  He explained that the County first did
this to offset the money already spent on the Law Enforcement
Center.  He said that he has to sign a document
that says the County spends more than $32,000 on salaries, which the County
does because salaries are a lot more than $32,000.

Commissioner Milly Richardson and County Manager Don Adams discussed who the money belongs to.

Chair Ken Richardson used another example of a county employee
saving money wanting the savings to go on their salary.

Commissioner Warren Taylor said that it all comes back to the
grade/job description issue.  He
stated that it is not fair to look at one group and not the others.

The Board of Commissioners discussed the requirements on how
to use these monies.

Commissioner Randy Miller asked who is the lowest underpaid
department is.

County Manager Don Adams
reviewed his spreadsheet showing multiple departments.  He explained his numbers are only
related to beginning salaries.

Chair Ken Richardson asked without getting into something
new, the Board will be doing good to find the $212,122.  He talked about leaving the 2% and
longevity then tackle the $212,000.
He talked about taking the existing money and adding it to the fund
balance.

County Manager Don Adams
discussed the current fund balance numbers.

Chair Ken Richardson, Commissioner Milly Richardson and
Commissioner Warren Taylor discussed taking it out of the fund balance, living
with it and take the hit next year.

County Manager Don Adams
said that takes the fund balance to a little over 17%.

Commissioner Warren Taylor talked about special
appropriations.  He further talked
about budget amendments throughout the year taking money out of the fund
balance.

Commissioner Milly Richardson said that it will make it a
lot tighter next year.

County Manager Don Adams
reiterated that his recommendation is always between 20-30% fund balance.

Commissioner Doug Murphy asked if he is comfortable with the
17%.

County Manager Don Adams
answered no.

Chair Ken Richardson talked about the need to look at the
things that we added.

Commissioner Warren Taylor talked about if the Board cuts the
schools or raises taxes 2¢ because of uncontrollable costs at the
schools.

Chair Ken Richardson suggested 1¢ property tax increase
and take the remainder out of the fund balance.

Commissioner Milly Richardson talked about cutting the non-mandated
services.  She further talked about
the Chamber of Commerce is one place to look, and there are other places, too.

Commissioner Warren Taylor agreed about raising taxes
1¢ and taking the remainder out of fund balance.

Commissioner Milly Richardson stated that she cannot support
a tax increase.

County Manager Don Adams
explained how revenues come in and the use of the fund balance.

Commissioner Milly Richardson talked about having to make
difficult choices next year.

Commissioner Doug Murphy asked about staying here and
deciding or should the Board think about it and come back.

Commissioner Warren Taylor talked about Wilkes County had
their fund balance down to zero because they didn’t raise taxes, and one
group had to raise taxes 12¢.

Commissioner Randy Miller talked about the County cannot
progress with the times without raising taxes.

Commissioner Milly Richardson reiterated that the Board really
shouldn’t put any more onto taxpayers.

Commissioner Doug Murphy stated that needs like education
and safety should be looked at.

Chair Ken Richardson mentioned ways to go forward with the
budget.

The Board of Commissioners discussed the Board of
Education’s request and the difference.

Commissioner Warren Taylor reminded
everyone that the public hearing is on Monday.

County Manager Don Adams
asked if the Board is looking at taxes.

Chair Ken Richardson stated that is off the table.

County Manager Don Adams
asked if the Board is done with salaries.

Chair Ken Richardson stated that he thinks so.

County Manager Don Adams
asked about the $212,000.

Chair Ken Richardson asked the Board to pick out three
concerns.  He stated that he
understands that each Commissioner will have different concerns.

County Manager Don Adams
explained the uncontrollable costs for the Board of Education.

Commissioner Milly Richardson and Commissioner Doug Murphy asked
if the NCWISE is state mandated.

Chair Ken Richardson mentioned three areas of additional
funding; schools, Family
Resource Center
and Alleghany Group Homes.

Commissioner Randy Miller discussed the raising taxes issue.

Commissioner Milly Richardson reiterated the need to keep
taxes at the rate as this year.

Chair Ken Richardson recessed the meeting at 6:55pm until Friday, June 27 at 4:00pm.

Respectfully
Submitted,

Karen Evans

Clerk to
the Board

Attest:

Ken
Richardson

Chairman